Currency restrictions may result in collapse of Ukrainian pharmaceutical market

Leading Ukrainian pharmaceutical producers and importers have sent an official letter to the national government asking it to abolish the recently adopted directive from the Ukrainian National Bank (UNB) about the currency restrictions, arguing that this could lead to in the collapse in the Ukrainian pharmaceutical market.

According to official spokespeople for the Ukrainian Association of International Pharmaceutical Manufacturers (AIPM Ukraine), as well as PharmUkraine (the association, which represents the interests of Ukraine’s largest drug distributors), due to existing restrictions, importers are experiencing serious difficulties in supplying drugs on the Ukrainian market, as the producers require them to pay in advance.

At the same time the UNB’s directive prohibits operations on purchase and sale of foreign exchange prior to the imports of the purchased goods to the Ukrainian market. Additionally, the majority of global drug producers require payment up front for nine-12 months prior to the actual delivery of products.