The National Bank of Ukraine (NBU) has exempted energy resources from the requirement that letters of credits (L/Cs) must be used for advance payments in foreign currency when importing goods under contracts of more than US$500,000.

The bank has confirmed however that all transactions worth more than US$500,000, whether or not they are for energy resources, must still be made on L/C terms.

Exempted goods

The L/C requirement is no longer mandatory for imports of oil, natural gas, electricity, petrol, diesel fuel and some other goods.

The introduction of the changes is a result of joint work of the NBU and the Energy and Coal Industry Ministry of Ukraine, aimed at securing a steady and sufficient supply of energy to the country.

Effective date

The NBU has also said that L/Cs are only required for payments of more than US$500,000 made by participants in projects financed by international financial institutions.

The new L/C regulations took effect on 5 March 2016.

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