NBU reduces deadline for repatriating forex earnings on grain, oil crop exports to 90 days

MOSCOW. Nov 13 (Interfax) - The National Bank of Ukraine (NBU) has slashed the maximum period for settlements on exports of 12 commodity groups from the so-called agricultural section 1-24 of the Ukrainian Classifier of Goods for Foreign Economic Activity (UKT ZED) to 90 days from 180 days effective November 11.

This decision, which was made on the recommendation of the Cabinet, is "intended to strengthen [exporters'] discipline in complying with maximum periods for settlements on transactions to export goods and ensure the repatriation of forex revenue within the set period," Ukrainian media reported, citing a statement from the NBU.

This refers to wheat (commodity code 1001), rye (1002), barley (1003), millet (1004) and corn (1005), exports of which totalled, respectively, $2.454 billion, $1.4 million, $301.8 million, $0.7 million and $4.037 billion in the first ten months of 2023.

The list also includes soybeans (1201), rapeseed (1205), sunflower seeds (1206), soybean oil (1507), sunflower oil (1512), rapeseed and mustard oil (1514), and millcake (2306), exports of which totalled $908.3 million, $925.1 million, $251.9 million, $203.5 million, $4.04 billion, $264 million and $787.2 million, respectively.

These changes were approved by a resolution of the management board on November 10, the NBU said.

The government has also tightened access to exporting agricultural goods as of November 11 with its October 31 resolution to implement an experiment in verifying agribusiness companies under martial law. This resolution calls for compiling a list of verified agribusiness companies eligible to export.

To be included in the list, companies must meet a number of criteria, such as be a payer of the value-added tax as of February 23, 2022 and on the date the electronic request to the State Agrarian Registry is made. They must also not have any tax debts and repatriate foreign currency earnings in a timely manner. So far, 735 such companies of the more than 1,000 that applied have been verified.