Starting July 10, 2019, businesses with foreign capital are no longer subject to the limits on the repatriation of dividends (abroad or non-residents’ accounts in Ukraine), according to the statement by the National Bank of Ukraine (NBU). The limit was previously set at EUR 12 million per month per legal entity. With this step, the NBU continues following the course of currency liberalization to make doing business in Ukraine easier and improve investment climate.
According to the NBU, the facilitation of capital flow for foreign business will not significantly influence the market, because for now purchasing currency for repatriation of dividends constitutes only around 4% of the total demand of the banks’ clients for foreign currency.
The cancellation of limits on repatriation of dividends is the third significant currency liberalization measure of the NBU for the past month. Earlier the regulator has already canceled the requirement for the mandatory sale of foreign currency proceeds and the limit on financing representative offices of Ukrainian business abroad.
The mentioned changes were approved by the NBU Resolution “On amendments to some laws and regulations of the NBU” No. 91 dated July 9, 2019. It came into force on July 10.