National Bank of Ukraine building new relationship with tax, customs authorities to repatriate FX revenues

MOSCOW. Dec 8 (Interfax) - The National Bank of Ukraine, which recently shortened the deadline for agricultural exporters to repatriate forex revenues from 180 to 90 days, will continue to fight "black exports" and the non-return of FX revenues, partly by building a new relationship with the State Tax Service and the State Customs Service, said NBU Governor Andrei Pyshny said.

"We will do everything we can to ensure that export revenues return to Ukraine. Some $8 billion, if not more, have yet to be returned. This $8 billion - where is it? What taxes have Ukrainians received from them?" Ukrainian media quoted him as saying at the annual forum of company directors of the Professional Corporate Governance Association in Kiev.

Pyshny said the tighter deadline for repatriating FX revenues only applied to agricultural exports so far. The National Bank will continue to back the government in this issue, given the grain corridor's importance to Ukraine's balance of payments, apart from anything else.

He quoted Economic Security Bureau data about UAH 135 billion from exporting grain of unknown origin, which means it was purchased for cash on the gray market with no taxes paid.

Pyshny also urged company directors to build an internal control system that would render such transactions by companies impossible.

"The National Bank sees all transactions and will be seeing even more. Together with the restrictions imposed we are now building a new system of communication with the State Customs Service and the State Tax Service. All this is being done for one purpose: export revenue, gold and foreign exchange reserves," Pyshny said.

He said the National Bank was ready for a "possibly uncomfortable, but very useful, honest and frank" discussion with business.