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Automatically translated version. May contain inaccuracies compared to the original.
🏦🌴Ukrainian business has been caught in the trap of the NBU's currency rules: a foreign holding can withdraw up to €1 million per month, while a resident cannot even invest €300 thousand
💵⚖️NBU Resolution No. 18 limits capital outflows and investments by Ukrainian residents abroad. Because of this, a company may have €300 thousand of its own foreign-currency proceeds but be unable to invest them in a warehouse or a subsidiary structure in the EU. At the same time, a business with a foreign holding can repatriate permitted dividends — up to €1 million per month — and then, via the parent company, finance expansion abroad.
📝🧮As a result, businesses that moved their center of ownership out of Ukraine gain more freedom than companies with ownership remaining in Ukraine, which creates an incentive for offshore structuring, writes RBC-Ukraine. For comparison, before the full-scale war Ukrainian legal entities could invest abroad within the e-limit of €2 million per year; the NBU explains the current restrictions as necessary to protect the foreign exchange market.
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