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NBU amends currency restrictions: what areas will be affected

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Starting from September 10, 2024, the National Bank of Ukraine is amending the current currency restrictions. The NBU will ease a number of restrictions and take measures to counteract unproductive capital outflows from Ukraine.

Writes UNN with a reference to the NBU.

The easing of currency restrictions will support the country's defense capability, the work of Ukrainian enterprises and the Nuclear Insurance Pool

- the National Bank notes.

Among the areas that are undergoing changes:

  • Purchase and transfer of foreign currency to cover carbon dioxide emissions. State-owned enterprises will be able to purchase foreign currency and transfer it to non-residents to purchase quotas to cover or compensate for carbon dioxide (CO₂) emissions arising from aviation activities.

This will facilitate uninterrupted defense procurement under state contracts, ensure further air transportation abroad, and support Ukrainian-European military-technical cooperation. 

  • Payments for operations under a reinsurance agreement concluded with foreign nuclear insurance pools.

The amendments allow for all necessary payments under reinsurance agreements with foreign nuclear insurance pools, including breakeven bonuses. This will have a minimal impact on international reserves, but will allow the Nuclear Insurance Pool to fulfill its obligations to its partners, ensuring the stable operation of the industry.

 - Purchase and transfer of foreign currency by resident legal entities that are e-commerce entities to pay VAT in the EU.The NBU will allow e-commerce entities to purchase and transfer foreign currency abroad to pay VAT when selling Ukrainian goods to EU countries, provided they are registered as EU taxpayers. This will support small and medium-sized businesses by facilitating access to the EU market and will not negatively affect international reserves, as foreign exchange earnings from the sale of goods will exceed the VAT expenditures. 

- Reimbursement of coupon payments made on Eurobonds.

  In addition to the existing possibilities introduced in May and July, the NBU will allow businesses to reimburse coupon payments on Eurobonds paid from February 24, 2022 to July 09, 2024 (inclusive). Such transfers are allowed exclusively at the expense of the business's own foreign currency (not purchased or raised in the form of a loan or credit from a resident), so this will not have a negative impact on international reserves  

- the regulator notes.

The NBU will allow foreign exchange transactions only to those companies that have timely returned foreign currency earnings from exports over the past 12 months. This will encourage businesses to comply with the rules and help preserve international reserves, preventing unproductive capital outflows, which is important for the stability of the foreign exchange market and the gradual easing of currency restrictions.

The restrictions will apply to payments abroad using payment cards issued by Ukrainian banks to foreign currency accounts to pay for a number of goods and services, in particular: 

  • Watches, jewelry, silverware, precious stones, coins, etc. abroad.The NBU introduces a monthly limit of UAH 100 thousand for payments abroad with payment cards opened in foreign currency for purchases of jewelry, metals, watches, and coins. This corresponds to the general limit for cards in the national currency. This measure was introduced due to detected attempts to circumvent the restrictions on the purchase of precious metals during martial law.
  • Transactions with real estate agents and managers abroad.The NBU sets a monthly limit of UAH 500 thousand on transactions abroad from payment cards opened in foreign currency to pay real estate management and accommodation fees. The limit covers the needs of 98% of bank customers and will help prevent capital outflow from Ukraine.

Recall 

The National Bank of Ukraine has updated the procedure for organizing cash operations by banks and payment transactions by payment service providers in Ukraine. 

Iryna Kolesnik

Economy

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