The National Bank of Ukraine (the “NBU”) has introduced amendments (the “Amendments”) to existing NBU Regulation No. 270 dated 12 May 2014 (“Regulation No. 270”) regarding the requirements for the mandatory sale of foreign currency proceeds. You may find our analysis of Regulation No. 270 in the previous law-now article on this subject.
As part of the government’s commitments to the International Monetary Fund, the Amendments soften the tight foreign currency restrictions imposed on individuals and foreign banks, simplifying the receipt of foreign currency into Ukraine.
According to the Amendments, the requirements for the mandatory sale of foreign currency received from abroad by individuals (both resident and non-resident) are abolished. Previously, such receipts in the amount that equals or exceeds the equivalent of UAH 150,000 per month were subject to mandatory sale on the Ukrainian interbank market.
The "mandatory sale rule" still applies to foreign currency proceeds from abroad received by legal entities and entrepreneurs (the amount subject to mandatory sale is currently 50% of the total sum of foreign currency deposited in Ukraine). However, the Amendments exempt from mandatory sale foreign currency proceeds:
- received into foreign currency correspondent accounts of non-resident banks opened in Ukrainian authorised banks; and
- deposited by non-resident banks into accounts opened in Ukrainian authorised banks.
The Amendments became effective on 21 July 2014.
Legislation: the NBU Regulation "On Amending Certain Legislative Acts of the National Bank of Ukraine" No. 423 dated 15 July 2014