On June 21, 2018, the Verkhovna Rada adopted the Law on Currency and in this way abolished special sanctions on foreign trade.
This is a great systemic victory for us, since we have been actively working on this abolition for three years. We co-developed the bill “To Protect Ukrainian Exporters!”, which preceded the bill “On Currency”. Both of them were on the Prime Minister’s list of priority documents.
We also covered this issue in the Systemic Report “Problematic Issues in the Regulation of Foreign Economic Activity in Ukraine”. In particular, we cited typical examples of unjustified and non-transparent application of special sanctions.
Prior to the law adoption, the main normative legal act regulating the currency market sphere was the decree of the Cabinet of Ministers “On the system of currency regulation and currency control” dated 1993. Pretty old, with a lot of limitations and possibilities for administrative pressure.
Among expected results of the law adoption:
• intensification of foreign trade and the creation of basic conditions for domestic exports development
• legal protection improvent for subjects of foreign economic activity
• improving the investment climate in Ukraine and, consequently, increasing direct investment in the real economy sector
The main difference of the new law is the idea that “anything that is not explicitly prohibited is permitted.”. This means that almost all currency transactions between residents and non-residents in foreign and national currency can be carried out without restrictions. Currency control will be canceled for more than 40% of operations.
The full text of the Law is available here: http://bit.ly/2zdpxAS