Effective from 24 July 2024, the National Bank of Ukraine (NBU) has introduced amendments that provide foreign investors with direct access to debt instruments (except for government securities) aimed at helping Ukrainian reconstruction efforts (NBU Board Resolution No. 90 dated 19 July 2024).
While Ukrainian depository institutions were granted the right to open nominee securities accounts for foreign financial institutions in 2018 (provided that such foreign financial institutions comply with the requirements of Ukrainian legislation), the NBU could not fully realise this right until recent changes were made.
These amendments now enable the NBU to open and maintain securities accounts for foreign financial institutions and foreign depositories, including:
opening nominee securities accounts for foreign financial institutions that meet the requirements of Ukrainian legislation (financial institutions must be registered in a state that is a member of the European Union and/or a member of the Financial Action Task Force on Money Laundering (FATF) and a member of the International Securities Systems Association (ISSA), as well as have the right to provide clients with securities accounting services in accordance with the laws of the state in which they are registered)
opening securities accounts for foreign depositories.
Under such amendments, foreign investors will be able to invest in various debt financial instruments used to assist in Ukraine’s recovery, including local infrastructure and international financial institution bonds.
