ON THE SYSTEM OP CURRENCY 
REGULATION AND CURRENCY-CONTROL.

DECREE OF THE CABINET OF MINISTERS OF UKRAINE 
¹15-93 ON 19 FEBRUARY 1993 (EXTRACT)

Article 4 Procedure of use of earnings in foreign currency

1. All earnings of the residents of Ukraine in foreign currency are
subject to compulsory sale through the authorized banks on the
interbank currency market of Ukraine, except cases envisaged by
Point 2 of tins Article.

2. Money not subject to compulsory sale shall be:
- money in foreign currency bought on the interbank currency market
of Ukraine through the authorized banks and other credit and
financial institutions Licensed by the National Bank of Ukraine to
carry out .currency transactions - within the term established by
the currency legislation for settlements with the nonresidents,
- money in foreign currency obtained by natural persons -
residents, including remuneration of labor, money obtained from
business activity excluded;
- money in international clearing units that is used in the trade
turnover with foreign states, as well as money in non-convertible
foreign currency that is used in the non-trade turnover with
foreign states on the basis of provisions of international treaties
to which Ukraine is a party;
- money in foreign currency obtained from privatization of the
state property.

3. Authorized banks shall be obliged to sell all earnings of the
residents in foreign currency on the interbank currency market of
Ukraine within five bank days from the date of placement of such
earnings to correspondent accounts of the authorized banks.
Money in Ukrainian currency obtained by the authorized banks from
the said transactions shall be transferred to the residents'
accounts within two bank days from the date of placement of the
said money to the balances of these banks.

4. Authorized banks shall be obliged to buy foreign currency on the
interbank currency market of Ukraine upon orders and at the expense
of the residents in order to ensure fulfillment of obligations of
the residents that arise from paragraphs four, five and six of
subparagraph "a" of Paragraph 4 of Article 5 of this Decree.

5. The National Bank of Ukraine shall be obliged to keep the policy
aimed at strengthening Ukrainian currency and for this purpose may
act on the interbank currency market of Ukraine.

Article 5 Licenses of the National Bank of Ukraine

1. The National Bank of Ukraine shall grant individual and general
licenses for carrying out currency transactions that are subject to
the licensing procedure in conformity with this Decree.

2. General licenses shall be granted to commercial banks, other
credit and financial institutions of Ukraine for carrying out
currency transactions that do not require individual licenses for
the whole period f validity of the procedure of currency
regulation.

3. Authorized banks, other credit and financial institutions that
are granted general licenses by the National Bank of Ukraine for
carrying out transactions connected with sales of foreign currency,
shall have the right to open in the territory of Ukraine currency
exchange offices, including the ones under agency agreements with
other legal entities - residents.

4. Individual licenses shall be granted to the residents and
non-residents for carrying out one accession currency transactions
for the period that require to carry out such transactions. The
following transactions shall require individual licenses:
a) export, transfer and remittance of currency values abroad,
except: 
- export, transfer and remittance abroad by natural persons -
residents of foreign currency to the amounts determined by the
National Bank of Ukraine; 
- export, transfer and remittance abroad by natural persons -
residents and non-residents of foreign currency that have been
earlier imported by them into Ukraine on legal grounds;
- payments in foreign currency effected by the residents abroad in
fulfillment of liabilities in this currency before non-residents
with respect to payment for product, services, works, intellectual
properties and other property rights, except payment for currency
values, - payments in foreign currency abroad in the form of loan
interests, income (profit) on foreign investments; 
- export abroad of foreign investments in foreign currency made
earlier in Ukraine in case of termination of investment activity; 
b) export, transfer and remittance of Ukrainian currency outside
Ukraine, except cases envisaged by Paragraph 2 of Article 3 of this
Decree; 
c) granting and obtaining by the residents of credits in foreign
currency if term and amounts of such credits exceed the limits
established by legislation; 
use of foreign currency in Ukraine as a mean of payment or pledge; 
placement of Currency values to bank accounts and deposits outside
Ukraine, except; 
- opening bank accounts in foreign currency by natural persons -
residents for the period of their stay abroad, 
- opening correspondent bank accounts by the authorized banks,
- opening bank accounts in foreign currency by the residents
mentioned in Clause four of Paragraph 5 of Article I of this
Decree; 
f) carrying out investments abroad, including acquiring securities,
except securities or other corporate rights obtained by the natural
persons-residents as gifts of inheritance.

5. An individual license obtained by one party to a currency
transaction shall permit the other parry or any third party
involved in this transaction to carry it out, unless otherwise
specified by this individual license.

6. Procedure and terms of granting licenses, list of documents
required to obtain licenses, as well as grounds for refusal to
grant licenses shall be determined by the National Bank of Ukraine.
Refusal of the National Bank of Ukraine to grant licenses may be
appealed in court or arbitration court/

Article 6 Procedure of sales of foreign currency

1. Sales of foreign currency in Ukraine by the residents and
non-residents - legal persons shall be carried out through the
authorized banks, other credit and financial institutions that are
licensed by the National Bank of Ukraine to operate with foreign
currency, exclusively on the interbank currency market of Ukraine
Structure of the interbank currency market, procedure, terms and
conditions of sales of foreign currency on the interbank currency
market shall be determined by the National Bank of Ukraine.

2. Authorized banks, other credit and financial institutions
licensed by the National Bank of Ukraine shall:
a) buy and sell on their behalf foreign currency on the interbank
currency market of Ukraine upon orders and at the expense of the
residents and non-residents;
b) have the right to buy on their behalf and at their own expense
foreign currency cash from natural persons - residents and
non-resident, and to sell it to the natural persons-residents.

3. Residents and non-residents - natural persons shall have the
right to sell foreign currency to the authorized banks, other
credit and financial institutions that are licensed by the National
Bank of Ukraine, or through them - to other natural persons -
residents.

4. Natural persons - residents shall have the right to buy foreign
currency from the authorized banks, other credit and financial
institutions that are licensed by the National Bank of Ukraine, or
through them -from other natural persons - residents and
non-residents.

Article 7 Procedure of settlements in foreign currency

Foreign currency as means of payment shall be used in settlements
between the residents and nonresidents within the trade turnover.
Such settlements shall be effected only through the authorized
banks.
Employers - non-residents shall pay the employees - residents in
foreign currency by cash or by written order.
Settlements between the residents and non-residents within the
trade turnover in Ukrainian currency shall be allowed under
condition of obtaining individual licenses of the NUB.

NOTE:
Decree of the Cabinet of Ministers of Ukraine "On the System of
Currency Regulation and Currency Control" was adopted on 19
February 1993. In conformity with paragraph 8 of Article 17 of this
Decree it entered into force from the day of its publication.
Official text of this Decree was published on 6 March 1993 in the
"URYADOVIY KURYER" No. 134.
This Decree establishes the procedure of carrying out currency
operations in the territory of Ukraine, defines the major
principles of currency regulation, powers of state authorities,
functions of banks and other credit and financial institutions of
Ukraine in regulating currency operations, rights and obligations
of subjects of currency relations, procedure of carrying out
currency control, liability for infringement of currency
legislation.
By I July 1994 this Decree has been amended and supplemented by
laws of Ukraine No. 3651-XII of 25 November 1993 and No. 3891-XII
of 28 January 1994.