According to a source at the National Bank of Ukraine (NBU), the Regulation on the Procedure of Foreign Investments has been approved by the NBU Board and shall be passed to the Ministry of Justice for registration.
In accordance with the document, foreign investors will be allowed to: transfer foreign currency from abroad to a resident’s cash account; open a foreign investor’s cash account with an Ukrainian bank and transfer foreign currency from abroad to this account; transfer foreign currency from an investor’s cash account to the current cash account of a resident; sell foreign currency from an investor’s cash account; transfer Ukrainian Hryvnia (UAH) proceeds received from sale of foreign currency to the investor’s cash account; transfer Ukrainian Hryvnia from an investor’s cash account in order to pay for investment.
Foreign portfolio investors will be allowed to: transfer foreign currency from abroad to the cash account of a resident broker (on the basis of a sale and purchase agreement with regard to Ukrainian securities); open a foreign investor’s cash account with an Ukrainian bank and transfer foreign currency from abroad to this account; sell foreign currency from an investor’s cash account and following the credit of the sale proceeds to the UAH investor’s account, pay the UAH to a resident broker’s account.
“Banks can open deposit accounts in UAH and foreign currency (on the basis of written agreement), which can be credited with funds received from abroad as well as from investor’s accounts in Ukraine,” said Peter Gatterwe, head of custody at BA-CA.