Starting from 24 December 2010, Ukrainian residents (legal entities and individual entrepreneurs) must sell 50 per cent of their proceeds received in certain foreign currencies (including Euro, USD, Pound Sterling, Swiss franc, etc.). This requirement has been re-introduced due to a recent Resolution adopted by the Ukrainian central bank regulator – the National Bank of Ukraine (the "NBU").
Initially, the mandatory sale of proceeds in foreign currency was introduced in 1998 by NBU Resolution No. 349, which was then cancelled in 2005 by NBU Resolution No. 101. Now, it appears that the NBU, by cancelling NBU Resolution No. 101, has renewed the previous rules regarding the mandatory sale of proceeds in foreign currency that existed until 16 April 2005.
The mandatory sale of proceeds in foreign currency does not apply, inter alia, to (i) loans in a foreign currency, (ii) investments, and (iii) funds owned by authorised banks and financial institutions. In addition, other exemptions may apply, in particular, with respect to foreign currency proceeds that will be used entirely for the purposes of making loan repayments under a foreign currency loan from a non-resident.
Resolution: The Resolution of the Board of the National Bank of Ukraine "On Amendment to certain Normative Acts of the National Bank of Ukraine", dated 8 October 2010 No. 457, registered with the Ministry of Justice of Ukraine on 13 December 2010, No. 1249/18544.
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The original publication date for this article was 22/01/2011.