Up to 180 days: the government changed the exchange control rules for agricultural exporters

The Cabinet of Ministers has expanded the list of goods for export and import transactions for which Ukrainian companies will be able to receive conclusions on the extension of payment deadlines. The maximum extension period will be 180 days.

The Ministry of Economy will be able to issue relevant conclusions upon applications from residents. The changes should help Ukrainian agricultural exporters avoid violations of currency legislation in cases where payments are delayed due to problems with international logistics.

What goods are included in the list

The expanded rules will apply to a number of key items of Ukrainian agricultural exports.

In particular, the list includes:

wheat and a mixture of wheat and rye;
rye;
barley;
oats;
corn;
soybeans;
rapeseed or colza seeds;
sunflower seeds;
soybean, sunflower, rapeseed and mustard oils;
oilcake.

Thus, for relevant foreign economic operations, companies will be able to apply for an extension of the settlement deadlines established by the National Bank.

Why did the government change the rules

The decision is explained by the significant complication of exporting agricultural products during martial law.

Russian attacks on port infrastructure are forcing Ukrainian companies to reorient cargo to alternative routes. These include, in particular, Danube ports, rail and road transportation across the western border.

At the same time, such routes have limited capacity, and additional overloads increase the duration of product delivery.

According to the estimates, time costs for logistics have increased by 40–50%. This affects not only the fulfillment of foreign economic contracts, but also the timing of the return of foreign exchange earnings to Ukraine.

What will change for exporters

The new mechanism will allow taking into account situations when a company objectively cannot complete payments within the established time frame due to military and logistical factors.

This should reduce the risk of applying financial sanctions to Ukrainian exporters in cases where the delay in foreign exchange earnings arose for reasons beyond the control of the business.

According to the Ministry of Agrarian Policy, in August, due to Russia’s blockade of seaports, Ukraine was able to export only about 33% of its total agricultural production.

The government expects that the changes will help preserve the export potential of the agricultural sector and support foreign exchange receipts to Ukraine in times of war.