The National Bank of Ukraine has increased the financing opportunities for foreign representative offices of Ukrainian companies: previously, this was possible within the limits of actual transfers in 2021, but now it is possible either within these limits or up to EUR 1 million per year, whichever is greater.
“This relaxation will not affect Ukraine’s currency market, as such transfers will only be allowed using the business’s own currency. At the same time, it will enable Ukrainian companies to step up their efforts to promote their products on foreign markets,” the National Bank said on its website on Saturday.
The regulator has also allowed such transfers for relatively young companies, setting a restriction that at least 12 months must have passed between the date of their state registration and the date of the transaction.
“In the long term, the changes will contribute to the growth of the country’s export potential by expanding cooperation between Ukrainian businesses and foreign partners and increasing trade,” the NBU said.
In addition, the central bank has allowed payments related to legal proceedings for non-compliance by non-residents with the terms of import and export contracts.
“The decisions adopted allow legal entities of all forms of ownership to purchase foreign currency and transfer it abroad to pay registration, arbitration, court fees, and other payments and expenses during enforcement proceedings for non-compliance by non-residents with the terms of import and export contracts,” the National Bank explained.
He added that, based on a customer survey conducted by banks this year, the impact on the currency market is not expected to be significant. On the other hand, businesses will be able to protect their property and other rights and interests in foreign jurisdictions in a timely and adequate manner when resolving issues related to the return of foreign currency proceeds under export contracts or prepayments under import contracts.
The NBU clarified that the relevant amendments to “military” Resolution No. 18 of February 24, 2022, were introduced by Resolution No. 53 of the regulator’s board on May 9 of this year and came into force on May 10.
