Foreign individuals, interested in investing in Ukraine, can pay for their investments in Ukraine through investment account, opened with one of Ukrainian banks for this purpose. Investment account is a special kind of current account which may be used only for investment purposes: payment for investments in Ukraine, receiving profit from investment activity as well as transactions, related to return of foreign investments to your country of residence.

This article provides information on procedure of opening and operating of investment bank account in Ukraine.

Individuals who have decided to invest in Ukraine (for example open a business, buy Ukrainian shares, stocks or other securities, buy real-estate in Ukraine or any other type of investment) may pay for the investment in two possible ways:

1. directly from their account overseas (in this case payment is made in foreign currency); or
2. transfer money to Ukrainian investment account, sell currency at inter-bank foreign currency market and pay for investments  in national currency Hryvna (UAH).  Note that investment account in the only type of account in Ukraine for foreign individuals which allows them to make settlements for their investments.

Investment bank account have the following main features:

• can be open in national currency Hryvna (UAH) and in foreign currency of 1st Group of Classifier of Foreign Currencies.
• can be used for transactions related to payment for investments in Ukraine, receiving income from investments and returning back investments and income to your country of residence
• rules of opening and operating of investment bank account are strictly regulated by Ukrainian law
• may not be used for entrepreneurial activity

For choosing the most appropriate and safe bank for you, see our article Banking system and major banks in Ukraine. Below you can find information on procedure of opening and rules of operating of investment bank account in Ukraine.

Documents necessary to open Investment Bank Account

In order to open investment bank account in Ukraine you will need to file number of documents to the bank, namely:

1. Your passport, issued overseas.
2. Temporary residence permit in Ukraine (if any).
3. Tax number in Ukraine (if any).
4. Application for opening of investment bank account. Among others, in application you have to indicate your address in Ukraine (where bank will send correspondence) and Ukrainian phone number
5. Notarized signature card with signature of private individual and his/her authorized persons.
6. If you authorize third person to dispose your account in foreign currency, the power of attorney has to be in notarial form (if issued overseas it has to be legalized / apostilled). Additionally, passport and tax number of representative have to be filed.
7. Individual and bank’s representative sign account opening and servicing agreement.

No additional documents are required by law. However, Ukrainian law allows banks to require additional documents in accordance with bank’s internal provisions. Therefore you should check with the helpline of the bank which you have chosen if you have all the necessary documents with you.

Possible transactions to and from Account

You are allowed to receive funds into your foreign currency account as follows:

1. Transfers for foreign investment in Ukraine from your account overseas
2. Transfers from your own current, deposit or investment account in Ukraine
3. Proceeds accrued on amounts on your investment account or deposit account
4. Amounts bought at Inter-bank Currency Market for UAH, available on your UAH account. Note that some banks do not allow to file applications on purchase of currency through internet banking so you will be required to sign application on purchase of currency in paper at bank division. In addition, you will need paper proof that you previously sold currency for the amount which you are going to purchase or other paper documents, evidencing origin of UAH, for which you intend to buy foreign currency (income from investment activity or from sale of investments).

You are allowed to use funds placed in your foreign currency account as follows:

• Paying for investments in Ukraine if receiving party is legal entity (if receiving party is private individual you can: a) pay for investments in Ukraine either directly from overseas in foreign currency; or b) after sale of foreign currency at Interbank Currency Market to UAH, pay for investments in UAH from your UAH investment account
• payment to Ukrainian customs 
• return of foreign investments or its part to your account overseas (with some exceptions – see Temporary Restrictions Section below)
• return of income from investment activity in Ukraine to your account overseas (with some exceptions – see Temporary Restrictions Section below)
• return of money not used for foreign investments in Ukraine, to your own account overseas
• transfers to your other investment or deposit account in Ukraine
• transfer of income from investment activity to your current account in Ukraine
• sale of foreign currency at Inter-bank Currency Market with crediting your UAH investment account with respective UAH equivalent. Note that some banks do not allow to file applications on sale of currency through internet banking so you will be required to sign application on sale of currency in paper at bank division. In addition, if in future you may need to buy foreign currency at the cost of not used UAH, you will need paper proof that you sold currency, so in this case you should do sale through bank division with filing paper application on sale of currency.

Possible transactions to and from Account

You are allowed to receive funds into your UAH currency account as follows:

1. Money received as a result of sale at Inter-bank currency market of your foreign currency, which is available on foreign currency investment account in Ukraine.
2. Income from your investments in Ukraine
3. Amounts, received due to partial or full termination of investment activity in Ukraine
4. Transfers from your own current, deposit or investment account in Ukraine
5. Proceeds accrued on amounts on your investment account or deposit account

You are allowed to use funds placed in your foreign currency account as follows:

• Paying for investments in Ukraine
• payment to Ukrainian customs or tax authorities
• payment bank’s fees/commissions for making purchase of foreign currency at Interbank Currency Market
• payments to residents for goods and services, related to making of foreign investments in Ukraine, their maintaining or return of foreign investments (e.g. agents, notaries, appraisal companies, commissioners, stock market service providers etc)
• transfers to your own deposit account
• payment of commisisions to servicing bank
• transfer of income from investment activity to your own personal current account in Ukraine
• transfer money to your own personal current or investment account in Ukraine
• purchase of foreign currency at Inter-bank Currency Market with crediting your foreign currency investment account with respective equivalent (with some exceptions – see Section Temporary Restrictions). Note that some banks do not allow to file applications on purchase of currency through internet banking so you will be required to sign application on purchase of currency in paper at bank division. In addition, to purchase foreign currency you need to provide bank with documents evidencing source of UAH on your account – e.g. you previously sold currency or received UAH as return of foreign investment or income from foreign investment etc).

Some transactions are temporary prohibited by the National Bank of Ukraine

Due to economic crisis, which started in Ukraine in 2013, the National Bank of Ukraine has implemented number of temporary restrictions (each time for 3-6 month with subsequent review) aimed to stabilize national currency Hryvna and stop return of some types of foreign investments and investment income from Ukraine.

Currently, the following transactions, related to return of foreign investments, are not allowed:

• purchase of foreign currency at Interbank currency market and transfers overseas with the purpose of paying dividends to foreign investors (except dividends for 2014 and 2015 which can be partially paid under procedure, stipulated by the National Bank of Ukraine)
• purchase of foreign currency at Interbank currency market and/or transfers overseas of the funds from sale of corporate rights in Ukrainian companies by foreign investors
• purchase of foreign currency at Interbank currency market and/or transfers overseas of funds from sale of securities issued by Ukrainian companies by foreign investors other than debt securities sold on stock exchange and state bonds of Ukraine

Investment account is special type of current account which can be used exclusively for transactions, related to foreign investments in Ukraine. Ukrainian law strictly regulates rules of debiting and crediting of investment accounts of individuals-non-residents and envisages exclusive number of transactions which individuals-non-residents can do with their investment accounts. No cash crediting of investment account as well as cash withdrawals are possible.

Due to significant fall of Ukrainian currency Hryvnia and economic crisis in Ukraine, since 2013 the National Bank of Ukraine (hereinafter – NBU)  has been tightly regulating currency market of Ukraine with strict temporary measures which blocked foreign currency and foreign investments outflow from Ukrainian economy.  In spring of 2016 the NBU has declared gradual elimination of such restrictions and liberalization of existing strict currency market control and some of restrictions have already been cancelled.

At present, still effective are restrictions on return of certain types of foreign investments (from sale of corporate rights of Ukrainian companies and Ukrainian securities (with some exceptions).

Here are some additional resources about setting up a legal structure in Ukraine that you might find useful :

• Opening a personal bank account in Ukraine
• Taxes in Ukraine
• Foreign Investment in Ukraine

For further information, please contact us.