Law digest

National Bank eases administrative restrictions

Through a Resolution from 1 March 2018 the National Bank of Ukraine has extended the opportunity for foreign investors to repatriate dividends under corporate rights and shares accrued for 2017.

From now on, Ukrainian companies will be able to pay foreign investors dividends in foreign currency in the amount up to USD 7 million per month, regardless of the period for which such dividends are accrued.

The purpose of this limit is to ensure more uniform demand for foreign currency from companies intending to pay dividends to foreign investors and to minimize its impact on the state of the interbank foreign exchange market, and, consequently, on price and financial stability in general.

The NBU also expanded opportunities for Ukrainian business to repay external credits and loans in foreign currency ahead of schedule.

Resident borrowers will now be able to prepay such credits and loans within a monthly limit of USD 2 million (for one resident borrower under loan/credit agreements serviced by one authorized bank).

Thirdly, the NBU expanded the list of business transactions, the proceeds of which are not subject to the mandatory sale requirement.

At present this requirement, which amounts to 50% since April 2017, should not be applied to funds the resident company raised in the form of external credits or loans for refinancing its existing debt to non-residents or authorized banks for other credits or loans.

Pharmacies activities to be inspected

In 2018 for the first time in three years, the State Service of Ukraine on Medicines and Drugs Control will inspect the activities of pharmacies and the medicines they sell.

On 23 February 2018 come into force Resolution No.1104 of the Cabinet of Ministers of Ukraine of 18 December 2017 On Approval of the List of State Supervision (Control) Bodies, which are not Subject to the Law of Ukraine on Temporary Features of the Implementation of Measures of State Supervision (Control) in the Sphere of Economic Activity.

This decision actually provides an opportunity to begin systematic and planned inspections of the activities of pharmacy institutions this year in full. The annual plan for implementation of measures for the state supervision (control) of the State Service of Ukraine on Medicines for 2018 has already been approved. At the same time, a nationwide moratorium on inspecting small businesses is still in force in 2018.