NBU Eases Currency Restrictions for Medical Treatment Abroad and URIF

The National Bank of Ukraine (NBU) has made a pivotal announcement regarding changes in currency regulation, set to take effect on April 4, 2023. These changes focus on easing currency restrictions for individuals who require medical treatment outside of Ukraine, as well as streamlining payments for the American-Ukrainian Reconstruction Investment Fund (URIF). This information was officially published on the regulator's website.

Under the new regulations, individuals in need of treatment abroad, along with their relatives or charitable organizations, will be allowed to purchase foreign currency to accumulate funds in a Ukrainian bank account. This measure will enable them to gather the necessary amount until the total sum required for payments to foreign medical institutions is reached. The accumulation pertains not only to the cost of the treatment itself but also to associated expenses, which may include tests, consultations, hospitalization, and meals.

However, it is crucial to note that the purchase of currency and subsequent transfer of funds abroad must be conducted through the same bank. In cases where there are unused funds or currency returned by the medical institution, the bank is obligated to sell these funds on the Ukrainian currency market within two working days following the last payment date under the contract or its termination.

Previously existing regulations already allowed individuals to purchase and transfer funds for medical treatment abroad without a limit on the amount. However, the new rules introduce the possibility of pre-accumulating currency, marking a significant advancement in supporting citizens who require medical assistance outside the country.

Additionally, the NBU has regulated the conduct of hryvnia and currency transactions for URIF and its representative in Ukraine, DFC Ukraine Subsoil LLC. This pertains to the execution and implementation of agreements and government decisions related to the establishment and operation of the fund. These changes aim to simplify financial procedures concerning investments in the reconstruction of Ukraine.

It is worth noting that the management board of the URIF approved its first investment in the Ukrainian technology company Sine Engineering on March 25, which specializes in dual-use communication and navigation technologies. This reflects the activation of investment processes in the country, despite challenging economic conditions.

According to Ukrainian Prime Minister Yulia Svyrydenko, the fund has received over 200 applications, with more than half submitted by Ukrainian companies. The majority of these applications pertain to the energy sector, defense technologies, and critical minerals, underscoring the importance of developing these industries for Ukraine's economy amid ongoing conflict.