05
Tue, Mar
41 New Articles

Ukraine: Shortened FX Settlement Deadlines for Agricultural Export Transactions

Ukraine: Aligning Consumer Protection Law with EU Standards

Ukraine
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Amid reports of substantial volumes of foreign exchange proceeds going unreceived under certain export transactions, the National Bank of Ukraine (NBU) has taken steps to shorten the mandatory settlement deadlines for the export of certain agricultural products.

The list of affected products includes wheat, a mixture of wheat and rye (meslin), rye, barley, oats, corn, soybeans, seeds of barbarea and rapeseeds, sunflower seeds, various types of oil (soybean, sunflower, safflower, cottonseed, barbarea, rapeseed and mustard oil), and press cake.

Effective as of 11 November 2023, the mandatory settlement period for exporting these goods has been reduced from 180 days to 90 days. As a result, local agricultural exporters must ensure the receipt of foreign currency proceeds in their Ukrainian bank accounts within 90 calendar days from the date of exporting these goods.

The NBU's decision has been adopted amid the Ukrainian government's broader efforts to increase supervision of agricultural exporters' compliance with local foreign exchange regulations.

It is important to note that the settlement deadlines for exporting and importing other categories of goods remain 180 days, subject to certain exceptions.

Context

These recent changes have been enacted under the ongoing martial law regime, instituted in Ukraine on 24 February 2022. Martial law has resulted in significant capital outflow restrictions and stricter foreign exchange controls.

Currently, the overall foreign exchange regime in Ukraine remains highly restrictive, and transactions not explicitly permitted by the NBU are prohibited during the martial law period or until the NBU lifts the relevant restrictions.

By Serhiy Chorny, Managing Partner, Bohdan Diakovych, Senior Associate, and Polina Korotka, Junior Associate, Baker McKenzie

Baker McKenzie at a Glance

Baker McKenzie brings insight and foresight to clients across more than 70 global offices. Our team of 13,000 people, including over 6,500 lawyers, works alongside our clients to drive growth that is both sustainable – and inclusive. The global business community is more interconnected than ever before. Opportunities and risks spill across different markets, sectors and areas of law, so a connected perspective is essential in delivering business objectives while mitigating risk. Our integrated client solutions provide seamless advice, underpinned by deep practice and sector expertise, as well as first-rate local market knowledge.

In the Central and Eastern European (CEE) region, Baker McKenzie's expansion remains steadfast, with a thriving team of over legal professionals. Our footprint extends across six offices in Austria, the Czech Republic, Hungary, Poland, Türkiye, and Ukraine. As part of our global network, coupled with well-established partnerships throughout the entire CEE landscape, we proudly stand as one of the foremost international law firms in this dynamic territory. Our reputation as a premier business law firm in CEE is a testament to our extensive experience in advising on a multitude of prestigious projects and nurturing enduring client relationships.

Firm's website.