The National Bank of Ukraine has simplified the terms of settlements for energy products’ import transactions. It is provided by NBU Board Resolution No. 139 of 4 March 2016 On Amending NBU Board Resolution No. 124 of 23 February 2015.

Authorized banks are obliged to perform advance payments in foreign currency for imports of goods under foreign economic agreements where the total value exceeds USD 500,000 (in the equivalent), including the letter of credit payment method. Till now, exceptions from this requirement were provided for in the list of vital goods specified in the Law of Ukraine No. 73-VIII On Measures to Stabilize Balance of Payments of Ukraine in Compliance With Article XII of the General Agreement on Tariffs and Trade (GATT) of 1994 of 28 December 2014. In particular, this list included energy import products. However, the exception was no longer applied after the Law lost force on 1 January 2016.

In view of the above, the NBU has provided a list of goods for which the exception can be applied by amending Resolution No. 124.

From now on, the requirement does not apply to purchase operations for energy products such as oil, natural gas, electricity, gasoline, diesel, etc. Implementation of these amendments is a result of joint work between the NBU and the Ministry of Energy and Coal Industry of Ukraine aimed at ensuring the appropriate conditions for the uninterrupted supply of energy products in Ukraine.

Additionally, in view of the recommendations received by the NBU from the Business Ombudsman Council, the same exception was introduced for the implementation of projects funded by international financial institutions.

The Resolution comes into force on 5 March 2016.