The National Bank of Ukraine pushes ahead with liberalizing conditions for making investments abroad owing to the gradual stabilization of FX market conditions and in line with a New foreign exchange regulation concept. A further relaxation of anti-recessionary restrictions concerns the procedure for making investments abroad by legal entities.
First, businesses will be allowed to make investments abroad of up to the equivalent of USD 2 million based on one license for FX operations per calendar year. Up until now, businesses were allowed to invest abroad up to USD 50,000 per one calendar month.
Second, the NBU set different requirements for obtaining a license depending on the amount of overseas investment. If the amount of investment is less than investments exceeding , it will be subject to simplified requirements for obtaining a license. Apart from an application, legal entities will only need to submit a limited number of a limited number of documents that vary depending on the type of investment and the type of investor (an investment agreement, documents confirming the registration of an investment item, etc).
However, legal entities intending to make investments exceeding USD 50,000 will be required to submitan exhaustive list of supporting documents that will help the NBU prevent attempts to use licenses for FX operations for capital outflow schemes. In particular, a resident will be required to confirm the economic feasibility of such a transaction, the availability of transparent sources of financing required to conduct this transaction, and provide detailed information on ultimate beneficial owners of this investment transaction.
These moves will make it easier for legal entities to perform foreign trade activities while preventing unproductive capital outflows abroad.
The appropriate amendments to this effect have been approved by NBU Board Resolution No 51 of 8 June 2017 On Amendments to Some NBU Regulations. The amendments shall take effect from12 June 2017.