NBU revokes mandatory letters of credit for imports of energy

12:46, 09.03.2016 1 min read

The National Bank of Ukraine (NBU) has removed energy resources from the requirement on the mandatory use of letters of credits for advance payments in foreign currency when goods are imported under foreign economic contracts worth over $500,000.

The decision is outlined in NBU resolution No. 139 of March 4 that amends NBU resolution No. 124 of February 23, 2015.

"Henceforth the requirement [on the mandatory letters of credit] does not apply to transactions on purchase of the following energy goods: oil, natural gas, electricity, petrol, diesel fuel and 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 providing the proper conditions for stale supply of energy to Ukraine," the central bank said.

Additionally, the NBU introduced the similar exception for the implementation of projects financed by international financial institutions (ISIs) under recommendations of the business ombudsmen council.

The resolution took effect on March 5, 2016.