The National Bank of Ukraine says it is implementing the largest package of easing currency restrictions for businesses since the start of the full-scale war to improve the conditions for doing business in Ukraine and the entry of domestic businesses into new markets, as well as supporting economic recovery and facilitating the inflow of new investment into the country.
“First, all currency restrictions on imports of works and services are abolished. Second, the ability of businesses to repatriate ‘new’ dividends is ensured. Third, the possibility to transfer funds abroad on leasing/renting is provided,” the NBU said in a press release on Friday evening.
“Fourth, restrictions in terms of repayment of new external loans are relaxed. Fifth, the possibility to repay interest on ‘old’ external loans is provided. Sixth, restrictions in terms of transferring foreign currency from representative offices in favor of their parent companies are relaxed,” the regulator added.
It is specified that these and a number of other technical changes were introduced by the NBU Board Resolution No. 56 of May 3, 2024 to the so-called “military” Resolution No. 18 of February 24, 2022. The vast majority of the document’s provisions come into force from May 4, 2024, and only in terms of repatriation of new dividends – from May 13, 2024.
The regulator believes that this will support Ukrainian producers and provide them with the opportunity to enter foreign markets, which in turn will contribute to a gradual increase in export revenues.
It is indicated that repatriation of dividends by businesses will be allowed only for dividends accrued based on performance after January 1, 2024.
“This relaxation does not apply to the payment of dividends at the expense of retained earnings for previous periods or reserve capital,” emphasized the National Bank.
In addition, the regulator set a monthly limit for repatriation of “new” dividends at EUR1 million equivalent in order to minimize risks to macro-financial stability. It is noted that control over compliance with this norm will be ensured thanks to the NBU’s automated information system “E-limits”.
“Providing an opportunity to repatriate “new” dividends will contribute to the inflow of new investments in Ukraine, minimize the risks of curtailing the activities of enterprises with foreign capital and support the economy,” the National Bank believes.
As for the easing of restrictions on servicing and repayment of “new” foreign loans and repayment of “old”, the NBU has reduced the minimum period of use of the loan, the funds for which come from abroad after June 20, 2023 on the accounts of residents, from three to one year, when reaching which it is allowed to buy foreign currency for its repayment. Thus, the ban on the purchase of foreign currency for repayment of “new” loans will apply to loans for up to one year.
In addition, the NBU will allow businesses, regardless of the period of use of “new” loans to buy foreign currency to pay interest on them.
“All this will contribute to increasing opportunities for Ukrainian businesses to attract new external loans not only from official partners, but also from private investors,” the release said.
Moreover, according to it, resident borrowers will be able to make transfers in foreign currency to repay interest on “old” external loans, which, according to the terms of the agreement, are payable from February 24, 2022. However, under one loan agreement for interest payments overdue as of May 1, 2024, borrowers will be able to transfer no more than 1EUR million equivalent per calendar quarter.
Also, according to the release, legal entities and individual entrepreneurs will be able to transfer funds abroad for settlements under leasing or rental contracts without additional restrictions on the subject of such a contract, as well as the date of its conclusion.
The National Bank reminded that previously such permission was only for leasing or renting vehicles.
Regarding the permission for representative offices of foreign companies to transfer foreign currency to the accounts of parent companies, it is specified that the central bank will allow international card payment systems and foreign airlines to buy and transfer foreign currency abroad to the account of a non-resident legal entity, but for such operations will be set a monthly limit of EUR5 million in equivalent.
According to the regulator, this will contribute to further development of cashless settlements in Ukraine.
ACTIVITIES, BUSINESS, CURRENCY, ECONOMY, INVESTMENTS, NATIONAL BANK OF UKRAINE, UKRAINE
Prosecutors of the Lutsk District Prosecutor’s Office have found a historical monument – a carved stone slab of the twelfth and thirteenth centuries depicting two angels, the Prosecutor General’s Office reported on its telegram channel.
“The unique find will be transferred to the National Museum of History of Ukraine to conduct a study of its scientific, historical, cultural and artistic value,” the statement said.
Earlier, law enforcement officers rescued from illegal sale at an online auction a 12th- to 13th-century plate depicting the Holy Warrior, which is also a monument of the period of Kievan Rus.
Both artifacts were found as part of the investigation of criminal proceedings on the fact of misappropriation of found or other property that accidentally came into the possession of a person (Part 1 of Article 193 of the Criminal Code of Ukraine).
The pre-trial investigation is being carried out by the Lutsk District Police Department of the Main National Police in Volyn region.
As of May 1, Ukraine exported 41.365 mln tonnes of grains and pulses since the beginning of 2023/24 marketing year, of which 6.314 mln tonnes were shipped in April, the press service of the Ministry of Agrarian Policy of Ukraine reported, citing the data of the State Customs Service.
According to the report, as of the same date last year, the total shipments amounted to 41.595 mln tons, including 3.619 mln tons in April.
In terms of crops, since the beginning of the current season, 15.778 million tons of wheat have been exported (in April, the figure was 1.936 million tons), 2.202 million tons of barley (231 thousand tons), 1.2 thousand tons of rye (0.2 thousand tons), 22.906 million tons of corn (4.136 million tons).
The total export of Ukrainian flour as of May 1 is significantly lower than last year’s figure (127.7 thousand tons) and is estimated at 86.6 thousand tons (7.4 thousand tons in April), including wheat – 81.9 thousand tons (6.8 thousand tons).
As reported, a number of sources in the Ukrainian market suggested that grain exports in April 2024 could be reduced to 5 million tons due to the constant shelling of port infrastructure by Russian troops, which made it difficult for a number of leading traders to supply agricultural products to foreign markets.
On May 23, the State Property Fund of Ukraine (SPFU) will hold a second online auction for the privatization of the unified property complex of the State Enterprise Lokhvytsia Distillery in Poltava region, according to the Prozorro.Sale system.
According to the report, the asset consists of 139 real estate objects and structures. The area of the land plots is 19 hectares, and the production area of the enterprise is 28614.4 square meters. The plant has 27 vehicles and special equipment on its balance sheet.
The company is engaged in distillation, rectification and mixing of alcoholic beverages. The company’s capacity allows it to produce 6 thousand decaliters of rectified alcohol per day. The company has been out of business since 2009.
As of March 31, 2024, the overdue accounts payable of the SOE amounted to UAH 55.68 million. The average number of employees is three.
The EMC of SE Lokhvytsia Distillery was put into operation in 1934, and in 1937 it was transformed into a distillery. In Soviet times, the plant was one of the largest industrial enterprises in the city, with social infrastructure facilities and houses on its balance sheet. Already in independent Ukraine, the distillery became the largest enterprise in the alcohol industry in Ukraine.
Today, the company is one of the largest wage debtors among enterprises in Poltava region.
The starting price of the lot is UAH 11.22 million.
This is the second attempt by the SPF to hold an auction to sell the company. The first one was unsuccessful – the auction in March was canceled due to the lack of bidders. At the initial auction, the starting price of the property was announced at UAH 11.3 million.
Itown Mall will appear in Odessa as part of the ITown Residential Complex (Sofievskaya Street, 1a), scheduled to open in the fourth quarter of 2024, the press service of the Ukrainian Trade Guild (UTG) told the Interfax-Ukraine agency, which is the developer of the concept and exclusive broker of the shopping center.
According to the press release, ITown Mall has three ground floors and two underground floors. GBA The total floor area (GBA) is 20,962 square meters and the leasable area (GLA) is 15 thousand square meters. The minus second floor will house home goods stores and a sports complex, the minus first floor will house a supermarket, the upper floors will house clothing and footwear department stores and technology stores.
The project of ITown business class residential complex is realized by “Prostir” group of companies. The residential complex includes five 9-25 storey residential buildings with a total of 378 apartments. According to the developer’s concept, in addition to housing and shopping center, the complex will also include class A offices, a university, scientific laboratories, an apart-hotel, a co-working space with a swimming pool on the roof, a cinema, a museum, etc. The project will be located in the center of the complex. Residential section E will be commissioned in 2023, and two more sections are scheduled for commissioning in 2024. UTG was established in 2001. It has developed more than 1300 real estate concepts. Over the years, the company has leased out 4.7 million square meters of commercial space in Ukraine.
The IT Coalition, an initiative led by Estonia and Luxembourg, has provided Ukraine with equipment worth EUR 900 thousand.
According to the Ministry of Defense of Ukraine, this is the first delivery to the Armed Forces of Ukraine within the framework of the IT Coalition. Laptops, monitors and other communication equipment worth EUR 900 thousand will be delivered to the units in the near future. The efficient and fast procurement was made possible by the NATO Support and Procurement Agency.
“The equipment will improve communication and the ability to plan tasks at the tactical level. This is one of our priorities – to meet the needs of the units for communication at the front. I am grateful to our partners for their responsibility and speed in decision-making,” said Kateryna Chornohorenko, Deputy Minister of Defense for Digital Transformation, Digital Development and Digitalization.
The IT Coalition is an ad hoc group of states within the Ukraine Defense Contact Group (Ramstein format) led by Estonia and Luxembourg. It is focused on providing support to the Ministry of Defense of Ukraine and the Armed Forces of Ukraine in the field of IT, communications and cybersecurity. The coalition has already raised financial and in-kind contributions of more than EUR 36 million, with contributions of more than EUR 23 million still expected.
