NBU Eases Currency Restrictions, Prohibition of the Use of Palm Oil

National Bank of Ukraine Eases Currency Restrictions to Support Defense and Business

On 10 September 2024, the National Bank of Ukraine introduced amendments to the effective currency restrictions aimed at supporting the activities of enterprises and the Nuclear Insurance Pool.

The above amendments were introduced by Resolution of the Board of the National Bank of Ukraine No. 108 “On Amendments to Resolution of the Board of the National Bank of Ukraine No. 18 dated 24 February 2022” dated 6 September 2024.

In particular, the NBU changed the procedure for making payments under reinsurance agreements with foreign nuclear insurance pools. The innovations allow for the payment of break-even bonuses provided for in the reinsurance terms, which is important for the stable operation of the industry.

In addition, the NBU allowed residents engaged in e-commerce to purchase foreign currency to pay VAT in EU countries.

This applies to businesses registered as taxpayers in the EU and is aimed at supporting small and medium-sized businesses that promote their products on the European market.

Another important aspect of the amendments is the possibility of reimbursement of coupon payments on Eurobonds. Such operations will be allowed only at the expense of companies’ own funds, without attracting credit resources, and only for those companies that have no outstanding currency control operations for the export of goods in the last 12 months.

Verkhovna Rada Amends Food Legislation

On 4 September 2024, the Verkhovna Rada of Ukraine adopted in the second reading Draft Law No. 5148 “On Amendments to Certain Laws of Ukraine on Improving the Quality of Food Products, in Particular Those Consumed by Children”.

The Law is aimed at improving food safety and quality standards and harmonizing Ukrainian legislation with EU regulations. The document implements the provisions of EU Regulation (EC) No. 1925/2006 on the regulation of trans fatty acids, with the exception of those contained in fats of animal origin.

The changes provided for by the new Law, inter alia, include:

• setting the maximum level of trans fatty acids in food products at no more than 2 grams per 100 grams of fat in the product;
• prohibition of the use of palm oil in traditional dairy products;
• prohibition of hydrogenated palm oil and other hydrogenated vegetable fats in baby food products;
• prohibition of the use of hydrogenated palm oil in food products, including confectionery, chocolate and ice cream;
• obligation of market operators to provide information on the amount of trans fats in food products when supplying them to manufacturers;
• introduction of clear and transparent labeling of food products containing palm oil.

New Rules for Registration of Separate Subdivisions of Foreign Legal Entities

On 3 September 2024, the Law of Ukraine No. 3257-IX “On Amendments to Certain Legislative Acts of Ukraine on the Regulation of Activities of Separate Subdivisions of Legal Entities Established in Accordance with the Law of a Foreign State” entered into force. The amendments relate to changes in the process of state registration of such subdivisions.

From now on, the procedure for registration of separate subdivisions will be carried out exclusively through the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations.

To do this, it is necessary to apply to the authorized state registration entities, which include, in particular, executive bodies of local self-government, state administrations, and notaries.

To simplify the registration procedure, the Ministry of Justice approved a new application form (Form 11) by the order dated 26 August 2024.

Thus, after registration, there will no longer be a need to obtain an identification code from the state statistics authorities.

At the same time, the data of existing units will be automatically transferred to the Unified State Register. The transfer process will take some time.

If they need to receive public services or make changes to the information that has not yet been transferred, the units may apply to the Ministry of Justice with a corresponding application.

The application can be submitted either in person or by mail, with no additional documents required and no administrative fee paid. The applicant will be notified of the transfer of data to the register by e-mail.