The National Bank of Ukraine (NBU) has clarified a number of currency restrictions.
This is stated in the NBU's message, Ukrainian News Agency reports.
The National Bank of Ukraine is making changes to the current currency restrictions from November 20, 2024.
On the one hand, the NBU is easing a number of restrictions to support international cooperation in the field of foreign trade, as well as international projects and technical assistance programs.
On the other hand, it is taking measures to strengthen the discipline of compliance with currency restrictions. The changes will apply to several areas.
Transfer of funds to fulfill obligations under import contracts
Currently, Ukrainian businesses can pay for the import of any products only if the delivery of the goods is carried out after February 23, 2021.
However, from November 20, 2024, Ukrainian enterprises will be able to pay for the import of goods without limiting the term of their delivery to Ukraine, provided that the funds are transferred in favor of:
- a foreign export credit agency (ECA) / a foreign state through an authorized person / a foreign person whose members include a foreign state or a foreign bank (provided that the foreign state is a member of this bank);
- other non-residents, provided that a foreign ECA / a foreign state through an authorized person / a foreign person whose members include a foreign state or a foreign bank (provided that the foreign state is a member of this bank) participates in import transactions (through lending, insurance, guarantee, suretyship).
The monthly limit for such transfers is set at 10% of the amount of overdue debt under the contract for the import of goods (as of November 1, 2024).
Such changes will encourage foreign countries, state banks and ECA to maintain and strengthen existing commercial ties of foreign exporters with the Ukrainian market.
This will also minimize the risks of reducing potential financing volumes and reducing the investment attractiveness of Ukraine.
Settlements under international technical assistance projects
Currently, it is possible to transfer foreign currency from Ukraine for settlements within the framework of international technical assistance/cross-border cooperation projects/programs financed by the EU.
At the same time, residents of Ukraine receive technical assistance not only from EU countries, but also from other countries for projects financed by foreign donors.
Taking this into account, from November 20, 2024, the NBU provides the opportunity to transfer foreign currency abroad for settlements under international technical assistance projects, regardless of which country or organization finances such a project.
The relevant changes will allow for a comprehensive solution to the problem of settlements under international technical assistance projects, which will positively affect both the positions of Ukraine and individual beneficiaries of such assistance - residents, and will also contribute to the adoption of positive decisions by international donors regarding further support for Ukraine.
Repatriation of dividends abroad
The National Bank closely monitors compliance with established currency restrictions.
Based on the results of inspections that revealed attempts to circumvent the monthly limit on dividend repatriation, the NBU has established additional criteria for such operations.
Thus, from November 20, 2024, Ukrainian companies will be able to take advantage of the possibility of partial repatriation of dividends under corporate rights or shares only if the following conditions are simultaneously met:
- the issuer's period of activity from the date of state registration to the date of the relevant operation is at least 12 months;
- at least six months have passed since the foreign investor/non-resident acquired ownership of corporate rights/shares of the issuer paying dividends until the date of the relevant transaction.
Use of foreign currency loans to purchase securities denominated in foreign currency
To minimize the risks of circumventing current currency restrictions, the National Bank also establishes a ban on the use of foreign currency loans to purchase securities denominated in foreign currency from November 20, 2024.
As Ukrainian News Agency earlier reported, the National Bank introduced managed exchange rate flexibility from October 3, 2023.
The NBU abolished all currency restrictions for the import of works and services and allowed the repatriation of "new" dividends.
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