News

The National Bank of Ukraine (NBU) has introduced the largest package of measures to ease the FX restrictions for businesses since the start of the full-scale invasion. The purpose of these changes is to improve the conditions for doing business in Ukraine and promote local companies to expand their business abroad.

First, all FX restrictions are cancelled for imports of works and services. The NBU permits businesses to purchase and transfer foreign currency abroad for importing works and services.

Second, businesses are able to repatriate “new” dividends. Businesses are able to repatriate dividends on corporate interest or shares abroad accrued based on the performance results for the period starting from 1 January 2024. This easement does not apply to the payment of dividends from retained earnings for previous periods or reserve capital. A monthly limit on the repatriation of “new” dividends is EUR 1 million in equivalent.

Third, funds can be transferred abroad to pay for lease/rent. Legal entities and private entrepreneurs are able to transfer funds abroad to make settlements on lease/rent agreements without additional restrictions on the leased/rented property, as well as the agreement date. Previously, this applied only to motor vehicle leasing/rent. 

Forth, restrictions on repayment of “new” external loans are relaxed. The NBU eases conditions for residents to purchase foreign currency for servicing and repaying “new” external loans, under which FX funds have been received from abroad after 20 June 2023 to borrowers’ accounts in Ukrainian banks. 

Fifth, interest on “old” external loans can be repaid. Resident borrowers are able to transfer funds abroad to pay interest on “old” external loans with the interest payments falling due after 24 February 2022 according to the loan agreements. 

Sixth, restrictions on the transfer of foreign currency from representative offices to their parent companies are being eased. 

These and some other changes have been introduced by NBU Board Resolution No. 56. Most of its provisions came into effect on 4 May 2024, provisions on the repatriation of “new” dividends are effective as from 13 May 2024.

If you have any questions, lawyers and accountants of J&L Consulting are ready to answer them.