2024-05-07T19:56:00+03:00 Economy 2024-05-18T04:02:23+03:00

Ukrainian news

NBU abolishes all currency restrictions for import of works and services and allows to repatriate "new" divid

NBU abolishes all currency restrictions for import of works and services and allows to repatriate "new" dividends

The National Bank has abolished all currency restrictions for the import of works and services and allowed the repatriation of "new" dividends.

This is stated in the NBU message, Ukrainian News Agency reports.

The NBU provides business with the opportunity to buy and transfer foreign currency abroad for operations on import of works and services.

In connection with these changes, the resolution of the Cabinet of Ministers of February 24, 2022 No. 153 "On certain issues to ensure the implementation of imports" loses its relevance.

In view of this, the NBU will appeal to the government with a proposal to abolish it.

In addition, the NBU separately provided the opportunity for businesses to buy currency and transfer funds abroad to pay airport and port fees, fines, as well as membership fees.

This is due to the fact that the aforementioned government resolution also partially contains relevant transactions.

Such changes will support Ukrainian producers and provide an opportunity for domestic businesses to enter new markets, including those from which manufacturers of the aggressor country are displaced thanks to sanctions.

This, accordingly, will contribute to a gradual increase in the income of export revenue to Ukraine.

The NBU recalls that a similar mitigation of restrictions on imports of commodity products was carried out in July 2022.

It is noted that enterprises will be able to repatriate dividends on corporate rights or shares abroad, accrued according to the results of activities for the period starting from January 1, 2024.

This mitigation does not apply to the payment of dividends due to retained earnings for previous periods or reserve capital.

To minimize risks to macro-financial stability, the National Bank set a monthly limit for repatriation of "new" dividends at EUR 1 million in equivalent.

Control over compliance with this norm will be ensured thanks to the automated information system of the NBU "E-limits."

The National Bank emphasizes that providing the opportunity to repatriate "new" dividends will contribute to the inflow of new investments into Ukraine, minimize the risks of winding down the activities of enterprises with foreign capital and support the economy.

As Ukrainian News Agency earlier reported, from July 21, the NBU adjusted the official hryvnia exchange rate by 25% to 36.5686 UAH/USD.

Since August 6, 2022, the National Bank abolished the restriction, according to which banks and non-bank institutions had to buy cash currency from the population at a rate not lower than the official one.

The NBU allowed banks to sell more currency to the population.

The National Bank has implemented managed flexibility of the exchange rate since October 3, 2023.