Ukraine central bank raises limit on dividend repatriation

The National Bank of Ukraine (NBU) announced on May 7
it has raised the limit on dividend repatriation to EUR 12 mln from EUR 7 mln
per month per company. The decision takes effect on May 8.

“The raised limit of EUR 12 mln indeed satisfies the
needs of all companies with foreign investments operating in Ukraine. However,
we realize that this limit is a certain barrier for new investors, and our goal
is to lift the limit,” NBU deputy head Oleh Churiy  noted.

In addition, Churiy said the NBU’s recent ForEx market deregulation
hasn’t resulted in increased capital outflow, dividend repatriation or pressure
on the exchange rate. Instead, the eased restrictions facilitated business
operations.

Evgeniya Akhtyrko: This is the
latest step by the central bank in its ForEx liberalization campaign. It
reflects the NBU’s increasing confidence in the situation on Ukraine’s ForEx
and the market’s ability to regulate itself. This measure should add some
points to the country’s Doing Business rankings.