Current currency restrictions are imposing significant financial burdens on Ukrainian companies, adversely affecting their capital efficiency, according to tax and cryptocurrency regulation expert Oleksandra Nikitina.
Nikitina highlighted that these restrictions not only deter foreign investors but also directly impact domestic businesses. Many companies are still servicing external loans and paying interest on debts incurred before the onset of the full-scale war.
Some enterprises reportedly possess sufficient liquidity to return part of the invested capital to investors or to repay specific financial obligations early. However, they are unable to do so due to existing currency restrictions.
“In practice, many companies continue to service external loans, pay interest on debts, or maintain expensive sources of financing that were secured prior to the war,” Nikitina stated.
She further noted that frequently, a company has enough liquidity to return part of the invested capital to investors or to repay certain financial obligations ahead of schedule.
“However, they cannot do this due to the existing currency restrictions,” the expert confirmed.
Nikitina pointed out that the consequences of these restrictions result in additional costs for businesses and a less effective allocation of financial resources in the economy.
“As a result, businesses are forced to continue paying interest on financing that, under normal circumstances, could have already been repaid. For the enterprise, this means additional costs. For the economy, it leads to less effective use of financial resources. For potential investors, it signals the existence of regulatory risks,” she emphasized.
Previously, Anna Derevyanko, Executive Director of the European Business Association, stated that easing currency restrictions is seen as a key step in supporting exports and enhancing Ukraine’s investment attractiveness.
It is worth noting that the National Bank has updated currency regulations, simplifying currency purchases for defense enterprises, expanding opportunities for military non-residents and foreign specialists, and launching new mechanisms to support Ukrainians abroad.
Currency restrictions in Ukraine are creating financial challenges for businesses, limiting their ability to manage debts and affecting overall economic efficiency. Experts suggest that easing these restrictions could enhance investment attractiveness and support exports.