Law on currency comes into force in Ukraine

The law foresees that currency restrictions will be abolished gradually and with caution and if there are favorable macroeconomic conditions, in order not to shake financial stability, until the full freedom of foreign exchange operations, in accordance with the principle "everything is permitted that is not directly prohibited by law."

The law introduces a number of innovations. Firstly, the deadline for conducting transactions under export-import contracts will be extended to 365 days (from 180 days). Secondly, currency control over export-import transactions not exceeding UAH 150,000 will be cancelled. Thirdly, individual currency licenses will be repealed. Instead, a system of electronic limits will be introduced. Fourthly, sanctions in the form of termination of foreign economic activity for violation of the terms of settlements will be canceled. Fifthly, online purchase of foreign currency by individuals will be allowed. At the same time, such transactions will be subject to a similar limit, like for the purchase of cash currency (now up to UAH 150,000 per day in the equivalent).

The law of Ukraine on currency and currency transactions was approved by the Verkhovna Rada on June 21, 2018. The law came into force on July 7, 2018, and takes effect seven months after the entry into force of the transitional period.