20 May 2022
The National Bank of Ukraine continues to liberalise currency controls
The National Bank of Ukraine has further liberalised the martial law-driven currency control restrictions envisaging, inter alia, the possibility for Ukrainian residents:
- to make settlements under import contracts from the loan proceeds received by Ukrainian borrowers from international financial institutions;
- to return advance payments received under contracts after 23 February 2022 as a result of failures by Ukrainian exporters to supply goods, works or services abroad;
- to buy foreign currency for placement as a cash cover under LCs and other documentary instruments issued by Ukrainian banks before 24 February 2022.
The Regulator clarified the procedure for obtaining a special NBU permit for cross-border transfers.
Such permit issuance can be initiated by the Cabinet of Ministers, Ministries, Security Council or Security Service of Ukraine specifying:
- the payer;
- the purpose of transfer and its significance for the payer;
- the amount;
- the counterparty; and
- the servicing bank.
The payer will need to submit the information on its UBOs via the servicing bank.
