The National Bank of Ukraine (NBU) has lifted all restrictions on the repatriation of investment proceeds from Ukraine abroad.

Starting from 10 September 2019, the repatriation of proceeds received by a foreign investor from selling shares of a Ukrainian company, decreasing its charter capital or withdrawing investment from a Ukrainian company is no longer subject to the statutory cap of EUR 5 million per calendar month.

A cap on the repatriation of the above-specified proceeds of foreign investment was introduced by NBU back in 2014 and purported to restrict the outflow of capital from Ukraine.

At the same time, the repatriation of investment proceeds will remain subject to applicable checks and thorough monitoring by Ukrainian banks. For this purpose, the clients initiating the repatriation will be required to provide their Ukrainian banks with documents and information substantiating the purpose of making such cross-border payments.

This further relaxation of the cross-border payments regime marks the continuing progress by NBU of the liberalization of the Ukrainian foreign exchange regulations that started in February 2019, following the adoption of the new Currency Law,[1] on which we reporter earlier this year (for more information, please visit our earlier publication).

Since then, NBU has lifted nearly 30 foreign exchange regulations and restrictions that had been in place in Ukraine for years. The most notable limitations, which are no longer in effect, included (1) the mandatory sale by Ukrainian residents of 30% of their foreign currency proceeds received from non-residents, and (2) the EUR 12 million monthly cap on the repatriation of dividends from foreign investments.