On 21 December 2024, a new package of foreign currency (“FX”) easings came into effect. It is aimed at supporting domestic producers and improving the business environment in Ukraine. The amendments, introduced by Resolution No. 155 of the National Bank of Ukraine (the “NBU”) dated 20 December 2024 (“Resolution No. 155”), include the following measures:
- New opportunities to purchase precious metals
Resolution No. 155 allowed legal entities and individual entrepreneurs to buy and sell precious metals without physical delivery with non-cash UAH. However, such transactions are only possible if the following conditions are met:
- the need for precious metals must be related to business activities
- business entities must have been engaged in jewellery production before the full-scale invasion
- Permission to purchase FX funds by nuclear facility operators
The NBU has granted nuclear facilities operators the right to purchase FX funds without taking into account the balances of FX funds received no later than 31 October 2024 under a loan agreement with a non-resident lender that is guaranteed by foreign export credit agencies, foreign states, or entities in which foreign states are stakeholders. This amendment aims to ensure the uninterrupted supply of nuclear fuel.
- Clarification of the rules for compensation of coupon payments on Eurobonds
Resolution No. 155 introduces several changes to standardize approaches and ensure equal opportunities for all Ukrainian companies that raised financing through Eurobond issuance to fulfil their obligations.
In particular, subject to the conditions set by the NBU, companies are now allowed to make transfers to related foreign legal entities to compensate for coupon payments on Eurobonds issued by the lenders of such companies. Importantly, such payments can only be made using the company's own FX funds, not borrowed ones.
These changes complement the easing measures introduced earlier this year regarding the payment of dividends for the redemption of Eurobonds, which were covered in detail in the legal alerts dated 12 July 2024 and 10 September 2024.
The new package of FX easings introduced by the NBU is aimed at supporting businesses in the face of current challenges, creating a favourable investment climate and boosting capital inflows to Ukraine.
By Roman Stepanenko, Partner, and Kateryna Oliynyk, Counsel, Asters
