What Norwegian investors should know about the currency control in Ukraine
Taking into account that Norwegian companies work with Ukrainian companies under foreign economic agreements, it is worth to characterize the general aspects of currency control in Ukraine.
– Ukrainian LLC, which receive a foreign currency income under foreign economic agreements, are obliged to sell 50 % of such currency at the official rate of the National Bank of Ukraine, and other 50% should be credited to the foreign currency account of the company.
– from May 26, 2017, the term that is settled for import to Ukraine amounts to 180 days (from the date of the advance payment).
– For foreign currency payment under foreign economic agreements, the Ukrainian company should provide the bank where its account is opened with a package of documents (contract, specification, invoice) for the purchase of foreign currency and its transfer to a foreign counterparty. For the purchase and transfer of a currency to a foreign counterpart, all documents should be provided to the Ukrainian bank in advance.
Summing up, it should be noted the fact that a currency control, that was made by the National Bank of Ukraine in 2017, has been soften. Such facts as a reduction of obligatory sale of foreign currency from 65% to 50% and increasing time limits for export and import operations of goods from 120 to 180 days should stimulate the interest to Ukraine in 2018 on the part of Norwegian companies.
Information is prepared by
Law Company “Lex Consulting”
- February 16, 2018