Andriy Pyshny, Governor of the National Bank of Ukraine (NBU), reported that he discussed Ukraine’s advancements and received assurances of EU support during a meeting in Vilnius with European Commissioner Valdis Dombrovskis. Pyshny emphasized that the European Commission fully supports Ukraine in successfully completing all necessary steps for accession.
What is SEPA?
SEPA (Single Euro Payments Area) is a unified payments market within which there is no difference between domestic and cross-border euro payments. Introduced in 2008, SEPA simplifies and standardizes electronic euro-denominated transfers, promoting efficiency and cost-effectiveness.
Although SEPA primarily focuses on ordinary bank transfers, its guidelines enable the development of additional payment methods for mobile phones and smart cards, facilitated by the SEPA instant payments scheme.
Benefits of SEPA Membership for Ukraine
Joining SEPA would represent a significant milestone in Ukraine’s European integration and open new opportunities for its economy, including:
- Easier EU Market Entry: Ukrainian businesses would face fewer barriers when expanding into EU countries.
- Financial Innovation and Fintech Growth: Ukrainian fintech companies could more easily enter the EU financial services market, leveraging standardized payment rules and formats.
- Reduced Cost of Money Transfers: Both individuals and businesses would benefit from streamlined, lower-cost transfers of funds between Ukraine and EU member states.
Next Steps
As part of its broader European integration agenda, Ukraine has been working toward SEPA membership for several years. In May 2022, Prime Minister Denys Shmyhal announced that joining SEPA was on Ukraine’s near-term priority list.
With the European Commission’s support and ongoing legislative reforms, Ukraine is moving closer to achieving the technical and regulatory conditions for joining SEPA, potentially offering its citizens and businesses the benefits of seamless and affordable cross-border euro payments.
