Ukrainian govt recommends that National Bank increase foreign-currency earning return period by month for certain agricultural products, 3 months for defense sector, machine-building plants

MOSCOW. June 24 (Interfax) - The Ukrainian government recommends that the National Bank increase the period of return of foreign currency earnings to 120 days for certain agricultural products, including wheat and rye, as the period was cut from 180 to 90 days, Ukrainian media said, citing the Economy Ministry.

The government also calls for increasing the period of export-import settlements for machine-building enterprises, the defense sector, and long-distance shipments from 180 to 270 days, the ministry said.

As reported, the National Bank disregarded numerous requests and remained opposed to the longer period of foreign-currency earnings return in various sectors, while proposing a longer list of goods with the reduced return period.

Once the period for foreign-currency earnings return was cut from 180 to 90 days for agricultural products in November 2023, the balance of payments in transactions with non-residents was positive in the first quarter of 2024 and averaged $134 million per month, National Bank head Andrei Pyshny said. In his words, the balance was negative, about $1.3 billion per month, in the second half of 2023.

On April 5, head of the Ukrainian Parliament Committee on Finance, Tax and Customs Policy Daniil Getmantsev sent a letter to the government, after consultations with the National Bank, the Economy Ministry and the Agrarian Policy and Food Ministry, to ask for considering the reinstatement of the 180-day period for foreign-currency earnings return for agrarians, which had been halved.