US and Eurozone Bonds. How Much Can Ukrainians Earn?

Investments of Ukrainians in government bonds in 2025 increased by 42.6%. Since the beginning of 2025, a total of UAH 570 billion has been raised for the state budget through bond placement auctions. And the portfolio of government bonds held by individuals increased from UAH 78.5 billion to UAH 111.9 billion, or by UAH 33.4 billion.

Domestic government bonds remain one of the most popular instruments for Ukrainian investors. But can Ukrainians buy government securities of other countries? For example, can they buy US or German bonds? And will they be able to make money on this? LIGA.net looked for answers to these questions.

Can Ukrainians invest in bonds of other countries?

Domestic government bonds (DGBs) is the exclusively Ukrainian legal name for domestic government bonds. When it comes to securities from other countries, it is more correct to speak generally about government bonds, as each country has its own naming for this instrument: from US Treasuries in the USA to Bunds in Germany.

Ukrainians have access to foreign government bonds on both the domestic and international markets. This was stated by the head of investment projects and programs Oschadbank Serhiy Lyashenko.

"US, German, French, and British government bonds are admitted for circulation in Ukraine and, accordingly, for trading on Ukrainian exchanges," he notes.

In addition, a wider selection is available through foreign trading platforms, such as Interactive Brokers, Saxo Bank, and international brokers. On such platforms, Ukrainian investors can buy bonds not only from developed countries – the USA, Japan, Canada, Switzerland, or Australia – but also from developing countries, including Brazil, Mexico, India, or Turkey.

However, it is important to distinguish between domestic and external public debt. Through international brokers, Ukrainians actually invest only in external public bonds. This is according to financial planner Larysa Moshkivska from iPlan.

"This carries increased risks, as such securities are much more likely to be restructured," says Moshkivska.

To invest, an individual needs to open a brokerage account with an international broker, such as Interactive Brokers, and transfer foreign currency funds from a Ukrainian account – currently, this is done through financial intermediaries. "Currently, intermediaries are needed for this, for example, Genome, Wise, TransferGo," Moshkivska added.

The broker provides access to bonds with various maturities, ranging from a few weeks to several decades. Typically, individual bonds have a face value of $100, but they are sold in lots, so the minimum investment amount is around $1,000.

Ukrainian clients have full access to government bonds of other countries – this is in the commentary LIGA.net confirmed the press service of Interactive Brokers.

"Investors can use the IBKR Bond Search Tool to check bond availability. The search can be performed by maturity, yield, credit quality, and other key parameters," says Interactive Brokers.

What are the limitations?

Sanctions restrictions prohibit Interactive Brokers from serving residents of the temporarily occupied territories of Ukraine (ORDLO).

On the domestic market of Ukraine, there are no formal legal prohibitions for investments in government bonds of other countries, but the choice of such securities is significantly limited. Their volume is tens of times smaller than the market of Ukrainian government bonds.

"Domestic government bonds of foreign states worth about UAH 40 billion are available on the Ukrainian domestic market, which is 50 times less than the volume of domestic government bonds," explained Serhiy Lyashenko, head of investment projects and programs at Oschadbank.

On the international market, currency restrictions remain a key deterrent. If funds are already abroad, there are virtually no limits to investing. At the same time, for investors withdrawing money from Ukraine, forming even a minimal investment portfolio can take years.

"The investment amount is limited to the amount that can be transferred from Ukraine (up to UAH 100,000 in equivalent), so it may take more than a year to raise the funds needed to purchase the minimum bond package," Lyashenko said.

Specific obstacles include the tax burden and currency risks. For Ukrainian residents, income from foreign bonds is taxable, and exchange rate differences can significantly reduce income.

However, tax nuances often negate the difference in profitability between Ukrainian and foreign securities. Even higher rates on American bonds do not guarantee a better financial result after paying taxes.

For example, in PrivatBank there are dollar-denominated government bonds with a maturity of about two years and a rate of 3.8%. In the US, you can find bonds with a yield of 4–4.5%, says investor and blogger Taras Huk.

However, there is a difference: Ukrainian foreign currency government bonds are subject to 0% tax, while American ones are subject to 23%, he says. "As a result, the net yield from the same 4% falls below 3%," Huk emphasizes.

The second major problem is the exchange rate difference. In Ukraine, when investing in foreign securities, you need to calculate how many hryvnias you spent on the purchase and how many hryvnias you received on the sale. If during this time the hryvnia, for example, devalued by 15%, then the tax will be calculated not from 4%, but actually from 19%. And this can completely eat up the profitability.

How much can you earn?

US and Eurozone bonds remain the most logical choice for Ukrainians. As Serhiy Lyashenko, head of investment projects at Oschadbank, explains, other markets often operate in currencies that are "exotic" for Ukrainians, such as the pound or the Swiss franc, which complicates currency planning.

According to him, the yield on US bonds today ranges from 3.5–5.5% per annum in dollars, German bonds – 2–4% in euros, and French bonds – 2–5% in euros.

These figures appear comparable to or even lower than the yields on Ukrainian foreign currency government bonds – up to 4% in dollars and up to 3.5% in euros.

For clarity, the yield on foreign government bonds can be calculated using a simple example of an investment equivalent to $10,000 per year. With US bond yields at 3.5–5.5% per annum, an investor will receive $350–550 in pre-tax income. After payment with a 23% tax (personal income tax and military levy), the net profit will be approximately $270–420 per year.

If we take Ukrainian currency government bonds, which are not taxed for individuals, then for an investment equivalent to $10,000 with a yield of 4.5% per annum, the investor will receive $450 in net income per year.

However, the key difference lies in the risks and maturities. "The main advantage of US and Eurozone bonds is their high credit quality and the ability to invest for 10–30 years, whereas foreign currency domestic government bonds in Ukraine are usually limited to a term of up to two years," explains Lyashenko.

Features of U.S. Bonds

American treasuries are essentially not much different from Ukrainian government bonds: in both cases, the investor lends money to the state and receives income that depends on the key rate. "Ukrainian government bonds and US treasuries are essentially the same instrument," notes investor and blogger Taras Huk.

Interest in US bonds surged after 2022, when US inflation reached almost 9% and the Federal Reserve raised its rate from near-zero to about 5%. Under these conditions, treasuries once again became attractive to private investors, whereas during the "zero-rate" period they were mainly of interest to large banks and funds.

Short-term US Treasuries currently yield around 3.5% per annum, while 20-year bonds can bring in up to 5%. "The risk on US government bonds is minimal, as you are buying the debt of one of the most stable economies in the world. But it is important to understand the purpose of the investment, as there are over a thousand different treasury issues," emphasizes iPlan financial planner Larysa Moshkivska.

Therefore, foreign bonds are not a bet on devaluation, but a tool for capital preservation, currency diversification, and long-term planning with minimal credit risk.