NBU puts foreign investments under compulsory currency sale rule

The National Bank of Ukraine (NBU) stated on October 17 that its recent foreign currency regulation tightening that involves a 50% mandatory foreign currency sale applies to foreign investments wired to Ukraine. 

Alexander Paraschiy: The compulsory sale of foreign investment is a symbolic step, indicating a readiness for drastic measures.  For sure, the NBU’s main target was the funds that local oligarchs return to the country as FDI. However, there are still numerous real foreign investors operating in Ukraine and this won’t inspire optimism in them. In our opinion, the tightening will not solve the imbalance at the forex market anyway; instead, it will repel investors even more.