NBU eases currency controls: new borrowing-based limit facilitates debt refinancing

The National Bank of Ukraine (“NBU”) continues to implement its roadmap for the gradual easing of currency controls in Ukraine. On 14 January 2026, amendments to Resolution No. 18 of the NBU Board “On the Operation of the Banking System during the Period of Martial Law”, dated 24 February 2022, entered into force. These amendments introduce a new borrowing-based limit, which expands the mechanisms available to Ukrainian businesses to make certain cross-border payments that are otherwise restricted during martial law.

Current limits framework

Following these amendments, Ukrainian companies may now carry out otherwise restricted cross-border currency transactions within the following incentive-based limits:

• Investment-based limit – equal to the foreign currency amount received from abroad after 12 May 2025 as foreign investment into the charter capital of a Ukrainian company;
• Charitable-based limit – equal to the amount of funds transferred by a Ukrainian company in support of the Armed Forces of Ukraine starting from 7 August 2025; and
• Borrowing-based limit – equal to the amount of foreign currency loans received from non-residents and credited to Ukrainian companies’ current accounts in Ukraine after 1 January 2026 (“New Loans”) minus the repaid principal amount of such loans.

Transactions permitted within the limits

Within any of the above limits, Ukrainian companies may perform the following cross-border currency transactions (“Permitted Currency Transactions”):

• payment for imports of goods delivered before 23 February 2021;
• refunds to non-residents of advance payments received on Ukrainian bank accounts before 23 February 2022 for goods not delivered (or partially delivered);
• repayment of foreign loans received before 20 June 2023;
• financing of expenses for maintenance of foreign representative offices above the standard annual cap of EUR1,000,000 (or equivalent in other currency); and
• repatriation of dividends above the standard annual cap of EUR1,000,000 (or equivalent in other currency).

Key features of the borrowing-based limit

The borrowing-based limit is subject to the following specific rules:

• servicing bank: the Permitted Currency Transactions within the borrowing-based limit must be processed exclusively through the Ukrainian bank servicing the current account to which the New Loan was credited;
• limit utilisation mechanics: any (i) Permitted Currency Transaction and (ii) principal repayment of the New Loan carried out within the borrowing-based limit reduces the available limit on a pro-rata basis. No further principal repayment of the New Loan is permitted when the limit is fully exhausted. Interest payments on the New Loans are permitted even after the limit has been used; and
• regulatory restrictions: the New Loans are subject to the general requirements for external borrowings originated after 20 June 2023, including (i) the maximum interest rate cap of 12% per annum and (ii) the prohibition on principal prepayment. Notably, loans provided, or guaranteed by, international financial institutions are excluded from the calculation of this limit.

The borrowing-based limit, among others, allows Ukrainian companies to refinance pre-20 June 2023 outstanding cross-border loans from foreign lenders using “new money” financing, while preserving the NBU’s controls on capital outflows. This mechanism facilitates the effective integration of “new money” financing into debt restructuring initiatives and supports the sustainable long-term planning of Ukrainian businesses while maintaining the NBU overall currency control framework during martial law.

Additional notes

This legal alert is issued to inform AVELLUM clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The information above does not constitute legal or other advice and should not be considered a substitute for specific advice in individual cases.

For further information on this legal alert and other issues regarding currency control restrictions, please contact our senior partner, Glib Bondar.