On 9 July 2024, the Board of the National Bank of Ukraine (the “NBU”) adopted amendments to the currency legislation that introduce several changes to the regime of making of cross-border payments for war risk insurance, guarantees and suretyships.
Since 11 July 2024, the NBU now allows, among others, the following:
- transfers of funds in favour of non-residents – legal entities whose participants (shareholders, founders) include a foreign state (except the aggressor state), under contracts that provide cover for risks of loss or damage to assets and loss (full or partial) of income from such assets in Ukraine as a result of war, hostilities, armed fighting, terrorist acts and sabotage caused by the armed aggression of the Russian Federation against Ukraine;
- reimbursements for non-residents for expenses incurred due to their participation in the provision of an external loan to a Ukrainian borrower, provided that the guarantor, surety or insurer of an external loan is a foreign export credit agency, a foreign state or an international financial institution;
- transfer of funds under guarantees or suretyships provided by residents that ensure the fulfilment of the obligations of resident borrowers on external loans and credit, provided that such payments by the resident borrower are allowed under currency legislation.
The amendments were adopted in Regulation No. 18 “On the Operation of the Banking System During Martial Law”.
These changes will improve Ukraine’s investment climate and its attractiveness among domestic and foreign businesses.
