Ukraine Further Eases Wartime Currency Restrictions

The National Bank of Ukraine (NBU) has introduced another round of foreign currency liberalisation, continuing the gradual rollback of restrictions imposed after the Russian full-scale invasion in 2022.

1. Syndicated Loans with IFI Participation Exempt from Key Restrictions

Ukrainian borrowers can now freely service loans provided by a syndicate that includes both a foreign bank and at least one international financial institution (IFI). The foreign bank must hold a credit rating of “A” (Standard & Poor’s / Fitch Ratings) or “A2” (Moody’s).

2. Dividend Payments for 2023 Now Permitted

Companies may now pay dividends accrued from 1 January 2023 within the existing monthly limit of €1 million (or equivalent) per legal entity. Previously, dividend payouts were limited to profits earned from 1 January 2024.

3. Forward FX Contracts for Import Hedging

Ukrainian companies and sole proprietors may enter into deliverable forward FX contracts with local banks to hedge currency risks on imports. This is the first easing of forward FX restrictions for non-financial entities since the introduction of martial law.

4. Early Loan Repayment via Debt-to-Equity Conversion

The NBU now allows early repayment of previously non-prepayable loans through conversion of the debt into equity or shares in the borrower’s charter capital.

5. Incentives for Companies Supporting the Armed Forces

Businesses can now exceed existing limits on cross-border transfers—such as dividend payments, loan repayments, or capital transfers—by an amount equal to their donations to the NBU’s special account for military support, provided these contributions are made after 7 August 2025.

Outlook:

These measures reflect a cautious but steady move towards restoring normal currency operations, balancing the need for capital flow liberalisation with wartime financial stability. The inclusion of incentives for businesses supporting the Armed Forces also underlines the integration of economic policy with Ukraine’s broader national defence objectives.