On 14 May 2013 the National Bank of Ukraine (the “NBU”) adopted two regulations which will extend the effects of the following requirements:
- on the mandatory sale of foreign currency proceeds of companies which reside in Ukraine, and
- on timing for settlements in foreign currency under export/import operations carried out by companies which reside in Ukraine.
These requirements were initially introduced by the NBU on 19 November 2012 and provide for the following:
- any Ukrainian resident company is required to convert at least 50% of its foreign currency export proceeds into Hryvnia; and
- the period of time during which settlements under import and export transactions must occur was shortened from 180 days to 90 days.
These FX requirements had been effective for the six months preceding 19 May 2013 and have now been extended (on 20 May 2013) for an undefined term, which, however, may not exceed six months.