The National Bank has changed currency restrictions for business

From November 20, the National Bank of Ukraine changes the current currency restrictions, softening some of them, in order to support the sphere of foreign trade and cooperation on international projects and technical assistance programs. At the same time, control over compliance with currency restrictions is being strengthened.

 

Changes will apply to the following areas:

• transfer of funds to fulfill obligations under import contracts;
• calculations for international technical assistance projects;
• repatriation of dividends abroad;
• use of foreign currency loans to purchase securities denominated in foreign currency.

 

Currently, domestic enterprises can only pay for the import of products delivered after February 23, 2021. From November 20, they will be allowed to pay for the import of goods, regardless of the term of their import to Ukraine, if the funds are transferred to the benefit of:

• a foreign export credit agency (ECA) / a foreign state through a person authorized by it / 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, on the condition of participation in import operations (through lending, insurance, guarantee, surety) of a foreign ECA / a foreign state through a person authorized by it / a foreign person whose members include a foreign state or a foreign bank (provided that the foreign state is member of this bank).

 

For such transfers, a monthly limit of 10% of the amount of overdue debt under the contract as of November 1, 2024 has been established.

 

It is also possible to transfer currency for payments under programs of international technical support or cross-border cooperation financed by the EU. Ukraine receives technical assistance not only from the EU, but also from other countries under programs financed by foreign donors. Therefore, the National Bank allowed currency transfers abroad to make calculations under such programs, regardless of which state they are financed by.

 

After checking compliance with restrictions on repatriation of dividends, additional criteria were established for such operations. Now, Ukrainian companies will be able to partially repatriate dividends for corporate rights or shares if the following conditions are simultaneously met:

• the period of activity of the issuer 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 the right of ownership of the corporate rights/shares of the issuer paying dividends to the date of such transaction.

 

To reduce the risk of circumventing currency restrictions, the National Bank prohibits the use of foreign currency loans for the purchase of securities denominated in foreign currency from November 20.