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The National Bank of Ukraine (the “NBU”) has revised the current currency restrictions, cancelling some of the previous rules and introducing new ones. The innovations will come into force on 20 November 2024. This was reported by the NBU press service.
What is changing?
Mitigation to support international cooperation:
- Payments for the import of goods:
- Ukrainian companies are allowed to make payments without limiting the timeframe for the delivery of goods to Ukraine if the funds are transferred to the accounts of foreign export credit agencies (ECAs) or states.
- International assistance projects:
- Currency transfers abroad are allowed to finance projects implemented under technical assistance or cross-border cooperation programmes, including those funded by the European Union or other foreign donors.
Tighter discipline and new restrictions:
- Preventing the circumvention of currency regulations:
- In response to attempts to circumvent the dividend repatriation limit, the NBU has established additional criteria for monitoring such transactions.
- Prohibit the use of foreign currency loans:
- Companies are prohibited from using foreign currency loans to purchase securities denominated in foreign currency.
The NBU seeks to strike a balance between supporting international trade and financial programmes and ensuring financial stability. The new restrictions are aimed at minimising risks and increasing the transparency of foreign exchange transactions.
“These measures will help to improve the discipline of compliance with currency restrictions, while supporting Ukrainian businesses in international cooperation,” the NBU press service said.
Control over compliance with the new rules will be strengthened, and violations of currency legislation are promised to be strictly monitored.
