Legal news for your attention:
Special Import Duty on Russian Diesel Liquefied Gas Has Been Introduced
Resolution of the Cabinet of Ministers of Ukraine No. 624 dated July 17, 2019 introduced a special duty for goods originating in the Russian Federation, regardless of other types of customs duties, as a percentage of the customs value of goods at the following rates:
- for heavy distillates (gas-oils) under codes according to UKTZED 2710 19 43 00 - 2710 19 48 00, which are imported into the customs territory of Ukraine by pipeline transport and placed in the customs mode of import:
beginning August 01, 2019 - 3.75 percent;
beginning October 01, 2019 - 4 percent;
- for liquefied gas used as fuel, under the code according to UKTZED 2711 12 11 00, which is imported into the customs territory of Ukraine in the customs mode of import:
beginning August 01, 2019 - 1.75 percent;
beginning October 01, 2019 - 3 percent.
The said Resolution will remain in force until the Russian Federation ceases its discriminatory and/or hostile actions against Ukraine.
The National Bank Has Introduced Requirements for the Development of the Plans to Resume Operation by the Banks and Banking Groups in Ukraine
The Resolution of the Board of the National Bank of Ukraine No. 95 dated July 18, 2019 approved the Regulation on the plans to resume operation by banks and banking groups of Ukraine.
The Regulation is adopted with the purpose to introduce in the banks and banking groups an effective process of planning the recovery of operations to ensure prompt implementation of measures to restore financial stability in the event of deterioration of the bank's financial condition and/or the onset of a stressful situation.
The Regulation stipulates:
- an effective system of indicators of the banks’ financial position deterioration, which includes quantitative (capital, liquidity, profitability, etc.) and qualitative (e.g. customers’ demand for early repayment of liabilities or negative consequences of court decisions) indicators and is based on the results of the bank’s own risk assessment;
- simulation of stress scenarios, which include events that may lead to bank insolvency (default);
- realistic options for restoring financial stability with minimal operating costs, which are determined by the bank based on the results of stress testing.
Beginning in 2020, systemically important banks are obliged, and other banks are advised to draw up (update) and submit to the National Bank of Ukraine the relevant plans by October 01 each year.
The National Bank Has Introduced Requirements for the Bank Toxic Asset Management Process
The Resolution of the Board of the National Bank of Ukraine No. 97 dated July 18, 2019 approved the Regulation on the Organization of the Bank Toxic Asset Management Process in Ukraine.
The Regulation is aimed at ensuring the efficient management of toxic assets by banks of Ukraine, reducing the level and volume of such assets in banks and the banking system of Ukraine.
The Regulation stipulates:
- the list of toxic assets (potentially toxic; nonearning assets; recovered property that has become the property of the bank on the basis of exercising the rights of the mortgagor);
- components of the toxic asset management process (early response system; introduction of nonearning assets debt management tools; asset management;);
- requirements for organizational aspects of toxic assets management (existence of a three-year strategy and operational plan for reducing the level and volume of such assets; creating a separate unit for dealing with nonearning assets; monitoring efficiency of the process).
The Regulation provides for the phased implementation of toxic asset management systems, the deadlines for which are set from February 29 to September 30, 2019.
The Introduction of an International IBAN Bank Account Number is Launched in Ukraine
Beginning August 05, 2019, banks will open new accounts to customers in accordance with IBAN standard requirements. At the same time, the current account numbers will be modified by banks in accordance with the requirements of this standard, while maintaining the current analytical account number.
Beginning November 31, 2019, IBAN application will become mandatory for customers of all banks of Ukraine when making transfers in both national and foreign currencies, including during cross-border transfers. That is, all transfers beginning November 01, 2019 will be made solely with the use of IBAN.
At the same time, all payment cards issued by banks for the customer’s account remain valid; they are a payment tool that enables a customer to use a payment device, including initiating a transfer from a bank account.