Steps to Liberalize a Current Account: Special Sanctions

22 January 2018

The forced return of foreign exchange earnings practiced in Ukraine exists only in third world countries and has never raised any of them to the level of the developed economies. This excessive regulation is harmful to the economy: it does not contribute to a real balance of payments; it prevents businesses to integrate into the world economy; it can potentially give rise to corruption. Until the main legislative acts to liberalize foreign trade have been altered, we consider it to be expedient to amend the subordinate acts of The Ministry of Economic Development and Trade of Ukraine on the sanctions for violation of the terms of foreign currency settlements. We believe that sanctions set only for delays in repayments for the amount of USD 50 000 will significantly reduce the burden on small and medium-sized businesses as well as on The Ministry employees, and will not make any negative impact on the balance of payments.