NBU eases a number of currency restrictions

The National Bank of Ukraine is easing a number of currency restrictions, which will support domestic producers and improve the business environment in Ukraine. At the same time, the changes will not have a significant impact on the exchange rate dynamics and the level of international reserves.

The currency liberalization measures that come into effect on December 21 cover a number of areas.

First, the ban on the sale and purchase of precious metals is being eased.

Following requests from the business community and a thorough analysis of the potential impact of this decision on the foreign exchange market, the NBU is allowing legal entities and individual entrepreneurs to buy and sell precious metals without physical delivery for non-cash hryvnia.

Starting from December 21, businesses will be able to conduct such transactions under the following conditions

• the need for the transaction is justified by the production activities of such companies (the business is engaged in the production of jewelry);
• the companies/entrepreneurs were engaged in jewelry production before the full-scale invasion, which is confirmed by the relevant documents.

Such changes will ensure stable operation of domestic producers in the jewelry industry, reduce the volume of imports of finished jewelry, and reduce pressure on business production costs due to the ability to purchase raw materials directly.

Second, the NBU is expanding the permission to purchase foreign currency for nuclear operators.

The NBU has provided for the possibility of purchasing foreign currency by the operator of nuclear facilities without taking into account the foreign currency balances received no later than October 31, 2024 within the proceeds of a loan agreement with a non-resident creditor guaranteed by a foreign export credit agency / foreign state through its authorized person / foreign entity whose members include a foreign state.

The purpose of such changes is to maintain uninterrupted nuclear fuel supplies, which is important for the operation of nuclear power plants and, accordingly, for Ukraine's energy security.

Thirdly, the NBU continues to unify approaches to the payment of Eurobond coupons by Ukrainian businesses.

In addition to the current options available, the NBU has updated the rules that allow Ukrainian companies to reimburse non-residents for expenses incurred by paying coupons on Eurobonds. The rules have been optimized so that all Ukrainian companies that have raised funds to finance projects in Ukraine through the issuance of Eurobonds have the same opportunities to reimburse non-residents.

Such transfers can be made only at the expense of their own foreign currency, subject to a number of conditions set out in the NBU resolution. The changes will not have a negative impact on the foreign exchange market, but will increase the likelihood of new capital inflows to Ukraine.

The above amendments were introduced by Resolution of the Board of the National Bank of Ukraine No. 155 "On Amendments to Resolution of the Board of the National Bank of Ukraine No. 18 dated February 24, 2022" dated December 20, 2024 and will come into force on December 21, 2024.