On 24 February 2017 the National Bank of Ukraine (the "NBU") approved changes to the licensing regime concerning overseas investments by Ukrainian individuals (other than private entrepreneurs).
From now on, Ukrainian citizens will be allowed to place and hold funds (e.g. salaries, alimony, pensions, dividend proceeds, etc.) in foreign accounts for an indefinite period of time, without the necessity to obtain an individual licence from the NBU (an "NBU Licence"). Previously this was only permitted for a period of an individual’s stay abroad.
In addition, an NBU Licence is no longer required for Ukrainians to make foreign investments (such as buying shares, securities, real estate, etc.) to the extent that the funds for such investments are not transferred from Ukraine. In the past, such transactions required an NBU Licence, which entailed a complicated and lengthy procedure.
The amendments now make it possible to structure, inter alia, management incentive schemes offshore in a manner that benefits Ukrainian citizens – a significant improvement, given the difficulties with implementing effective management incentive schemes at the Ukrainian level.
Ukrainian citizens will nevertheless continue to require an NBU License to transfer funds from Ukraine.
The changes are effective from 25 February 2017.