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Сurrency transactions and foreign trade settlements with non-residents as of the end of 2024: Deregulation in some cases and new limitations in others

13 December, 2024 Newsletters

During martial law, the primary regulatory act governing settlements in foreign economic activity is Resolution No. 18 of the National Bank of Ukraine (NBU), “On the Operation of the Banking System under Martial Law”. This resolution imposes restrictions on cash withdrawals, currency purchases, and international settlements, with separate regulations for transactions involving individuals or entities related to Russia or Belarus.

In 2024, the NBU took significant steps to liberalize the foreign exchange market. Key updates include:

Allowing the transfer of foreign currency abroad for all leasing and rental transactions;
Permitting the payment of fees and interest under loan agreements using foreign currency purchased specifically for this purpose;
Raising certain limits and simplifying the conditions for existing grounds to transfer and purchase foreign currency.

At the same time, the NBU introduced restrictions on non-cash transfers for individuals, capping them at UAH 150,000 per month with limited exceptions. The purchase of foreign currency and its transfer abroad remains regulated under the principle: “anything not expressly permitted is prohibited.” However, there are numerous exceptions to this general ban for specific cases.

The settlement terms for the export and import of goods worth more than the equivalent of UAH 400,000 are set at 180 calendar days. Exceptions apply to the export of certain agricultural products, where the settlement term is reduced to 120 calendar days. Transactions with individuals or entities linked to Russia or Belarus are generally prohibited, although specific exceptions exist.

The full version of the article is available in Ukrainian by the link.

Kind regards,

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