National Bank of Ukraine allows buying forex to import any goods
MOSCOW. July 8 (Interfax) - The National Bank of Ukraine (NBU) has cleared a number of regulations in line with the Cabinet of Ministers directive annulling the concept of critical imports, which would entitle businesses to buy foreign currency and transfer money for imports of any goods starting July 9, 2022.
Ukrainian media reported citing the NBU press service on Friday that the relevant amendments were instituted by the NBU Board's resolution No. 142 of July 7, which is available on the bank's website and is to take effect on July 9.
At the same time, certain restrictions on the purchase of foreign currency and cross-border transfers for importing services will remain in place. In particular, businesses would be entitled to import only services, work, intellectual property, and other nonproprietary rights listed in the Cabinet of Minister's directive No. 761 of July 7, 2022.
"As of early July, the list of critical imported goods contained about 90% of goods imported before the crisis. Taking this into account, based on the NBU's estimates, the relevant relaxation would not put significantly more pressure on the currency market. This would improve conditions for doing business in Ukraine, as businesses would be entitled to buy all the necessary products for their business processes," it said.
The NBU expects that the slowing growth of imports through the refund of import duties and taxes and the continued recovery of business processes in Ukraine would help narrow the difference between the offer and the demand on the forex market.
Starting July 9, the NBU is also extending the timeframe for settlements on export and import transactions to 180 from 120 days with the purpose of supporting Ukrainian businesses through expanding their capabilities amid logistical problems during exports and imports of goods.
The new requirements will be applicable to residents' export and import transactions carried out since April 5, 2022. For transactions carried out by a particular date, the settlement deadline still remains 365 days.
To relieve the pressure on the currency market, the NBU will reduce the time for using forex bought by residents for settlements to two from ten working days starting July 11, 2022.
The said restriction shall not apply, in particular, to the purchase of foreign currency by residents for purposes of national security and defense, by government agencies authorized to pursue criminal investigative, counterintelligence, or intelligence activities or pretrial investigations, by the State Treasury Service, as well as for transactions in line with ad hoc decisions by the NBU based on requests from the government, ministries, the National Security and Defense Council, and the Security Service.