NBU introduces currency liberalization mechanism tied to foreign investment

The National Bank of Ukraine (NBU) has announced the launch of a "stimulative currency liberalization" initiative aimed at attracting foreign capital to Ukraine, according to a statement on the NBU’s website.

The initiative aims to establish a mechanism that encourages foreign investors to fund Ukrainian businesses in exchange for the ability to conduct specific foreign exchange (FX) operations that were previously restricted.

A key element of the initiative is the introduction of an "investment limit" — the amount of foreign investment made in a company’s authorized capital after May 12, 2025. Within this limit, companies will be allowed to carry out certain FX transactions, despite existing general restrictions:

→ payment for imported goods delivered before February 23, 2021;
→ refunds to non-residents for prepayments on goods that were not delivered, if payment was made before February 23, 2022;
→ repayment of "legacy" foreign loans received before June 20, 2023;
→ financing of foreign representative offices beyond the standard limits.

All such transactions must be conducted through a single authorized bank, chosen by the company.

The total external debt of Ukrainian companies stands at approximately $21 billion (including interest), while outstanding import-related debt amounts to $3.2 billion.

The NBU’s decision creates a potential solution to this issue: the inflow of new capital can offset repayments of existing debt without exerting additional pressure on the foreign exchange market.

The NBU has also relaxed several other FX restrictions:

→ expanded the allowable funding for foreign representative offices of Ukrainian companies;
→ permitted the payment of court fees abroad in cases related to import/export contracts;
→ increased spending limits on corporate cards used abroad;
→ allowed FX forward transactions;
→ simplified the payment of consular fees abroad.

At the same time, the NBU has tightened certain restrictions to prevent capital outflow schemes and the circumvention of existing rules:

→ banks are now prohibited from completing FX supervision of imports if funds are returned in hryvnia from non-resident banks’ loro accounts;
→ the monthly UAH 500,000 card limit introduced in 2024 for accommodation payments abroad was being bypassed. The limit now applies to other merchant categories, such as personal services, legal services, business and professional services.

• In April 2025, the NBU recorded a sharp decline in net household purchases of foreign currency. Although the balance of FX purchases and sales by individuals remains negative, it has reached its lowest level in nearly two years.