National Bank of Ukraine eases conditions for cross-border investment

Source : 112 Ukraine

If an investment makes less than USD 50,000, the license will be issued under simplified procedure
16:42, 9 June 2017

The National Bank of Ukraine went for another round of simplifying the conditions for foreign investments; that became possible thanks to the gradual stabilization of the situation on the currency market, and due to the curriculum of new currency regulation. The Bank’s press service reported that on June 9.

‘This concerns the procedure of foreign investments by Ukraine-based entities,’ the message says.

Firstly, businessmen now have opportunities to invest 2 million dollars abroad within one exchange permit per one calendar year. Secondly, the Bank set various requirements for getting licenses – depending on the kind of particular investment and the overall sum of it.

‘If the investment makes less than 50,000 U.S. dollars, we will be applying simplified requirements for documents that are necessary to get the license,’ the Bank said, explaining that several other papers will be enough – again, depending on the kind of investment and the type of investor.

If an investment’s total sum is above USD 50,000, the Bank will require a more detailed list of documents, which is essential in terms of preventing the outflow of the money resources abroad by using exchange permits. Specifically, the resident will have to prove the economic rationale of the particular financial operation, to provide information on his transparent financing sources and the ultimate beneficiary owners of the investment operation’s subjects.   

‘Such steps will let us improve conditions of international economic activity; at the same time, such decisions will prevent the economically unsound operations aimed at withdrawal of money outside Ukraine,’ the National Bank said.

The respective changes to certain laws of the National Bank will take effect on June 12.          

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