STRATEGIC ASSESSMENT. Ukraine’s central bank has tightened its rules on citizens purchasing precious metals and certain luxury goods, and managing real estate assets abroad. The move announced was aimed at reducing capital flight, the financial regulator said.
Starting from September 10, Ukrainians will be able to spend no more than 100,000 hryvnas ($2,430) per month on buying luxury watches, jewelry, silver goods, gemstones and precious metals, the National Bank of Ukraine (NBU) said.
The changes also cover cards issued by Ukrainian banks in foreign currencies. Previously, similar restrictions were applied to Ukrainian bank cards issued in the national currency.
According to the NBU analysis, wealthy Ukrainians had previously sought to circumvent restrictions on buying precious metals abroad during martial law, using various schemes. Another measure covered operations with real estate agents and managers abroad.
Under the new rules, a monthly limit of 500,000 hryvnas ($12,150) has been set for such transactions, including rental payments using various payment cards issued by Ukrainian banks. According to the NBU, the sum is enough to meet the needs of “98% of customers” of national banks residing or travelling abroad.
The moves “will prevent attempts to bypass the NBU’s established restrictions on relevant operations and avoid capital outflow from Ukraine in significant volumes,” the central bank said.
In addition, the regulator has made it easier for state companies to purchase carbon dioxide emission quotas from non-residents and for Ukrainian e-commerce entities to pay valued-added tax in the EU. The changes will support defense procurement, which relies on air transportation, the bank said.
According to the Russian business daily Kommersant, capital outflow from Ukraine amounted to some $18 billion last year, which was twice as much as the amount of money transferred into Ukraine from abroad.
