2024-09-09T16:23:00+03:00 Finance 2024-09-21T04:00:02+03:00

Ukrainian news

NBU eases currency restrictions to support country's defense capability

NBU eases currency restrictions to support country's defense capability

The National Bank has eased currency restrictions to support the country's defense capability.

This is stated in the message of the NBU, the Ukrainian News agency reports.

Among the directions undergoing changes:

- purchase and transfer of foreign currency to cover carbon dioxide emissions. State-owned enterprises will be able to buy currency and transfer it to non-residents to purchase allowances to cover or offset carbon dioxide (CO₂) emissions associated with aviation activities. This will contribute to the smoothness of defense purchases under state contracts, will make it possible to continue to carry out air transportation abroad, and will also support Ukrainian-European military-technical cooperation;

- payments for operations stipulated by the reinsurance contract concluded with foreign nuclear insurance pools. The changes provide an opportunity to make all necessary payments provided for by reinsurance contracts concluded with foreign nuclear insurance pools (in addition to reinsurance premiums or payments already allowed today). In particular, to pay a break-even bonus, which is a mandatory condition defined by the reinsurance contract. This mitigation will have a minor impact on international reserves and at the same time will allow the Nuclear Insurance Pool to fulfill obligations to partners, which is important for the smooth operation of the industry;

- purchase and transfer of foreign currency by resident legal entities that are subjects of electronic commerce for the payment of VAT in the EU. The National Bank of Ukraine will enable e-commerce entities to purchase and transfer foreign currency abroad to pay VAT on purchases of goods from Ukrainian manufacturers by consumers from EU countries. The condition for carrying out these operations is that the subject of electronic commerce must be registered as a taxpayer in the EU. Such easing will primarily support small and medium-sized businesses, which will be able to promote their own goods on the EU market thanks to trading platforms. At the same time, this will not have a negative impact on international reserves, because the inflow of foreign currency to Ukraine for sold goods will significantly exceed the additional demand for foreign currency for paying VAT in the EU;

- compensation of paid coupon payments for Eurobonds. In addition to the already existing opportunities introduced in May and July, the NBU will enable businesses to reimburse coupon payments for Eurobonds that were paid from February 24, 2022 to July 9, 2024 (inclusive). Such transfers are allowed only at the expense of the business's own foreign currency (not purchased and not raised in the form of a credit or loan from a resident), therefore, it will not have a negative impact on international reserves. These operations will be able to be carried out only by those enterprises that have no cases of incomplete currency supervision of operations on the export of goods during the 12 months preceding the date of the operation. This will stimulate businesses to timely return foreign exchange earnings to Ukraine for exporting goods.

As the Ukrainian News agency earlier reported, starting October 1, 2024, the National Bank temporarily, for six months, sets a limit of UAH 150,000 per month for card-to-card (also known as P2P, C2C) transfers of individuals.