The Government recommends the NBU to extend the term for repatriation of foreign currency earnings in a number of sectors

The government has recommended that the National Bank of Ukraine (NBU) extend the terms for returning foreign exchange earnings for metallurgy and agricultural products, and also provided an opportunity to establish exceptions to the deadlines for settlements on export-import transactions for the defense industry. This is stated in the report of the Ministry of Economy.

The Cabinet of Ministers considers it necessary to extend the settlement period for export-import transactions in the field of mechanical engineering (machine tools, machines, equipment), the defense industry and transactions with a large delivery leverage from 180 to 270 days. The decision also applies to items whose exports have been hampered by restrictions on port operations, such as steel and agricultural products.

In addition, the government recommended that the National Bank increase the deadline for calculating the return of foreign exchange earnings for the export of certain agricultural products, including wheat and rye, to 120 days (previously it was reduced from 180 to 90 days).

According to the Government’s decision, the NBU is recommended to extend the timeframe for settling export-import transactions from 180 to 270 days, in particular:

• machines for processing various materials,
• water jet cutting machines;
• machines (including presses) for processing metals;
• machines and devices for soldering or welding;
• chassis, bodies, trailers and semi-trailers, etc.;
• agricultural, horticultural or forestry machines for soil preparation or processing;
• pipes and tubes;
• electric motors and generators;
• chassis with installed engines, etc.

As GMK Center reported earlier, one of the most important issues for Ukrainian exporters in the war is excessive currency regulation, uncertainty and unclear application of currency restrictions. One of the examples of legal uncertainty is the existence of a deadline for the return of foreign currency earnings.