The National Bank of Ukraine (the "NBU") has cancelled
the long-standing requirement to convert 30% of foreign currency
proceeds received by Ukrainian companies from abroad into
hryvnias.
The foreign currency proceeds received by Ukrainian companies,
starting from 19 June 2019, will no longer be subject to the
mandatory conversion. Ukrainian companies can, at their own
discretion, convert any amount of such proceeds to hryvnias or
retain them in foreign currency.
This change is another step in the currency control relaxation
plan, which has been developed and followed by the NBU. The next
steps will be introduced gradually and cautiously, in order to
preserve the financial stability of the country. Some of the
restrictions will likely be lifted only once Ukraine adopts the
contemplated BEPS measures.
