National Bank of Ukraine Lifts Currency Restrictions for Business Imports and Services

by Roman Cheplyk
Monday, May 6, 2024
National Bank of Ukraine Lifts Currency Restrictions for Business Imports and Services

The National Bank of Ukraine (NBU) announced the implementation of a significant package of currency deregulations for businesses, marking the most extensive relaxation since the onset of the full-scale war

These changes, effective from May 4, aim to facilitate various business operations, with the exception of "new" dividends repatriation starting May 13.

Key modifications include the complete removal of currency restrictions on the import of works and services, allowing businesses to purchase and transfer foreign currency abroad for these purposes. Additionally, the NBU has expanded the scope to include payments for airport and port fees, fines, and membership fees.

Significantly, businesses will now be able to repatriate "new" dividends—those accrued from January 1, 2024—abroad, although repatriation of dividends from previous earnings remains restricted. To maintain macro-financial stability, a monthly cap of 1 million euros has been set for such transactions.

Further easing applies to funds transfer abroad under leasing or rental agreements, with no restrictions on the leasing subject or contract date. This update follows previous permissions limited to vehicle leasing or renting.

The NBU has also simplified regulations for the repayment of "new" external loans—those received in foreign currency from abroad post-June 20, 2023. The minimum usage term for these loans before currency purchase for repayment has been reduced from three years to one year.

Moreover, the regulations allow for the repayment of interest on "old" external loans accrued since February 24, 2022, with a quarterly cap of 1 million euros for overdue interest payments, but without limitations on scheduled future payments.

Lastly, representative offices of international card payment systems and foreign airlines can now purchase and transfer up to 5 million euros per month to their parent companies abroad, fostering the growth of cashless transactions in Ukraine.

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