Legislative news digest: LEGAL HOTLINE 27.06.2019

Obligatory sale of foreign currency cancelled

In order to further facilitate doing business in Ukraine, the National Bank of Ukraine cancelled mandatory sale of foreign currency proceeds.
The provision obliging the business to sell 30% of foreign exchange proceeds on the interbank foreign exchange market ceased to be valid on 20 June 2019. Mandatory sale will not apply to transactions credited to clearing account on 19 June.

These amendments were approved by the Resolution of the Board of the National Bank No. 78 dated 18 June 2019 “On Amendments to the Regulation on Protection Measures and Determining the Procedure for Effecting Certain Transactions in Foreign Currency”.

Fines for violation of cash discipline cancelled

Decree of the President of Ukraine No. 418/2019 dated 20 June 2019 cancelled a number of Presidential Decrees or some of their provisions, which were issued in 1994-2001.
In particular, Decree of the President of Ukraine No. 436/95 dated 12 June 1995, which regulated application of penalties for violation of the cashflow provisions was cancelled as well.

Upon entry into force of Decree No. 418/2019 (since 23 June 2019), financial penalties for violation of cash discipline established by Decree No. 436/95 are cancelled.
The very procedure for effecting cash transactions remains unchanged.

The minimum fee for notarial acts cancelled

Decree of the President of Ukraine No. 418/2019 dated 20 June 2019 cancelled Decree of the President of Ukraine No. 762 dated 10 July 1998 “On Arrangement of Collection of Fees for Notarial Acts”, which established that the amount of the fee charged for notarial acts by private notaries could not be less than the amount of state duties collected by state notaries for similar notarial acts.

Thus, upon entry into force of the Decree, the minimum amount of fee for notarization services, which existed since 1998 at the level of state duty of 1%, should have been cancelled for private notaries.

However, the provisions of Clause 3 of Chapter 16 of Section I of the Procedure for Performance of Notarial Acts by Notaries of Ukraine are still in force, according to which private notaries for the performance of notarial acts, the amount of which is determined by agreement between the private notary and the individual or legal person, but which may not be less than the state duty collected by state notaries for similar notarial acts.
The provisions of the Decree of the Cabinet of Ministers of Ukraine dated 21 January 1993 On State Duty are still in force as well.