NBU counts on new agricultural export rules, says $7 bln-$8 bln of foreign revenue not returned

MOSCOW. Aug 13 (Interfax) - Export revenue received by Ukraine in January-June 2024 increased 15.9%, or by $3.3 billion, year-on-year, while the amount of non-returned forex earnings remains at the level of $7 billion-$8 billion, the National Bank of Ukraine (NBU) said in response to an enquiry from Ukrainian media.

"Therefore, the almost unchanged volume of export transactions in which settlement deadlines were overrun is a positive tendency against the backdrop of the growth of export revenue received from abroad," the NBU said.

An increase in unreturned export revenue would have a negative impact on the balance of payments and the level of international reserves, which are an important buffer for Ukraine's macro-financial stability, it said.

Taking this into account, the NBU systemically counteracts any unproductive capital outflows and takes measures to ensure the timely return of export revenue, it said.

In particular, the bank mentioned the forex restrictions introduced at the start of the crisis, saying that these measures have been eased only in the presence of stable prerequisites. Steps have also been taken to tighten forex oversight and shortened deadlines for settlements for certain agricultural exports have been kept in place.

"The National Bank expects the Ukrainian cabinet to introduce an export security regime for transactions for certain agricultural exports that was developed with the help of the Agrarian Policy and Food Ministry, the NBU, the State Tax Service of Ukraine, the State Customs Service of Ukraine and other government agencies and was approved by the Verkhovna Rada this year, including corresponding amendments to the laws," the NBU said.

"In our opinion, this measure should help improve the situation around the return of forex earnings in the agricultural sector. Government agencies are now completing the work on the by-laws and technical framework for the implementation of this mechanism," it said.

The NBU intends to continue to cooperate with government agencies to ensure a comprehensive approach to guaranteeing the timely return of export earnings in Ukraine.

As reported, the NBU told Ukrainian media in early November 2023 that forex revenue that had not been returned since the beginning of the crisis neared $8 billion, which the NBU said "significantly affects the payment balance." This is both the grain exports revenue and the non-retuned forex revenue in general, it said.