If the National Bank of Ukraine does not repeal Resolution No. 591 in the near future, businesses will sue the regulator to demand that the damages incurred be reversed.
The Federation of Employers of Ukraine announced this during a press conference, during which representatives from various industries assessed the impact of the said regulation on production and export-import operations, according to a press release from the federation.
"Unfortunately, the National Bank has not responded to the FUE's appeal or numerous requests from businesses to overturn the resolution for over a month," noted Dmitry Oleynik, Deputy Chairman of the Federation of Employers.
"Therefore, if the National Bank does not repeal this ruling within the next week, the FRU is ready to support businesses and, together with them, defend their legal rights and interests in the Administrative Court," Oleynik stated.
Among the main losses, press conference participants cited disruptions in export and import deliveries, the inability to carry out technical re-equipment and modernization of production facilities, and the inability to import raw materials necessary for the production of final products that are not produced in Ukraine.
In addition, payment deadlines to foreign contractors for engineering and marketing work, the procurement of IT services, and the repair of production lines or parts thereof for Ukrainian high-tech companies are being missed.
"For companies, this means the loss of foreign markets and a reduction in production volumes, and, consequently, job losses. For the state, this means the bleeding of an already weak economy," the FRU notes.
Business representatives cited a basic violation of the right to entrepreneurial activity, guaranteed by the Constitution of Ukraine, as grounds for their lawsuits. The right requires the state to ensure the protection of competition in entrepreneurial activity.
Resolution No. 591 also violates the legally established right of entrepreneurs to independently conduct foreign economic activity and use their share of foreign exchange earnings at their own discretion.
Moreover, the rights of foreign investors are also violated, since Ukrainian legislation guarantees them the transfer of their profits and other amounts legally obtained abroad.
As a reminder, on September 22, 2014, the National Bank of Ukraine adopted Resolution No. 591, which introduced restrictions on payments in foreign currency.
Economic truth
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