New policy on foreign card transactions imposed by National Bank of Ukraine

Source: Ukraine’s National Bank

In a bid to deal with ‘capital outflow’, the National Bank of Ukraine (NBU) has introduced new policies for Ukrainians making money transfers abroad with Ukrainian-issued payment cards.  Starting from September 10, 2024, these regulations will target payments for luxury items and services, including watches, jewelry, silverware, precious stones, and coins.

Under the new rules, transactions involving “merchant codes” 5094, 5944, and 5972 will be subject to a monthly limit of 100,000 hryvnias or the sum equivalent. This cap aligns with the existing limit for cards tied to accounts in the national currency.

It will also introduce a monthly limit of 500,000 hryvnias for transactions with merchant code 6513, which covers payments for real estate agents, management fees, and overseas living expenses. The NBU believes this limit is adequate to the needs of Ukrainians living abroad and serves 98% of bank clients involved in such transactions.

“The new limits will help prevent attempts to sidestep the NBU’s restrictions and avoid significant capital outflows from Ukraine,” the NBU explained.

The regulator has also allowed businesses to reimburse coupon payments on euro-denominated bonds made from February 24, 2022, to July 9, 2024, provided they use their own foreign currency. This move is not expected to impact the country’s international reserves.