Convertibility and Profits Repatriation
The Ukrainian currency is at present not fully convertible, although significant measures have been undertaken recently in order to progress towards that goal. Currencies are traded at auctions held by the UICEX. In addition currencies may now be traded at the informal interbank currency market. Currently, the U.S. dollar, euro, and the Russian rouble are being traded on the UICEX daily.
Prior to November 1994, foreign currency could be obtained only for the purpose of importing certain essential goods. At present, the rules have been substantially relaxed and a Ukrainian legal entity may convert local currency into a foreign currency in the event it has entered into a foreign economic contract or provides other justification for the foreign currency. Repatriation of foreign currency dividends or invested capital to a foreign investor would serve as a valid justification for obtaining foreign currency. The entity would be required to carry out the conversion through its commercial bank: the commercial bank receives a conversion request from its client, reviews the basis on which the entity is requesting foreign currency and participates in the UICEX auction to purchase the currency on behalf of its client.
Foreign investors are guaranteed the right of repatriation abroad, in foreign currency, of their revenues, profits and other sums obtained legally in connection with their investment. A foreign investor may currently convert local currency into a foreign currency through the UICEX. Such an investor would request its commercial bank to participate in the auction and convert local currency into foreign currency. Foreign investors are permitted to convert local currency into foreign currency for the purpose of repatriating legally obtained profits or investments abroad.
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Ukraine
