Register of Damage will Work in August, NBU Eases FX Restrictions on Insurers

The International Register of Damage Caused by the Aggression of the Russian Federation against Ukraine will Work in August This Year

Iryna Mudra, the Deputy Minister of Justice of Ukraine, has said that the International Register of Damage Caused by the Aggression of the Russian Federation against Ukraine will become fully operational from August 2023.

The Register will collect the applications of all persons injured as a result of russian aggression, and the evidence base for such applications. The next step should be the creation of a Compensation Commission, which would have the competence to consider such applications and award damages.

Also, according to her, the working group was created in the EU to consider the possibility of using frozen russian assets for the reconstruction of Ukraine.

NBU Eases FX Restrictions on Insurers

On 20.05.2023, NBU Resolution No. 68 dated 19.05.2023 entered into force, which continues to relax FX restrictions in the insurance sector and has clarified the procedure for transactions to pay interest on domestic government debt securities to foreign investors.

Regarding the loosening of FX restrictions in insurance

Insurers will be able to make insurance payments to nonresidents. Insurers will also be able to return insurance premiums to nonresidents under prematurely terminated insurance (reinsurance) agreements if said insurance premiums were received by insurers after 24 February 2022.

The following insurance payment transactions are currently allowed:

  • payments to foreign nuclear pools that are made by an authorized insurer on behalf of members of the Ukrainian Nuclear Insurance Pool
  • payments under Green Card international insurance agreements
  • payments under personal insurance agreements, other than life insurance
  • payments under insurance contracts to persons traveling abroad.

Regarding transactions to pay interest on domestic government debt securities to foreign investors

To enable the repatriation of interest payments received after 1 April 2023 on domestic government debt securities, an additional requirement has been established: the investor shall have owned such domestic government debt securities for at least 90 consecutive calendar days that immediately precede the receipt of said interest.

Let us please remind you that the NBU introduced the possibility to repatriate interest received after 1 April 2023 on domestic government debt securities in order to incentivize nonresidents to reinvest the principal amount and accumulated hryvnia funds into the primary market for domestic government debt securities.

The List of Territories on Which Hostilities are (were) Conducted or Which are Temporarily Occupied has been Updated

The Order of the Ministry of Reintegration No. 143 dated 15.05.2023 made changes to the List of territories on which hostilities are (were) conducted or temporarily occupied by the russian federation.

Let us please remind you that such List was approved in December 2022 and is periodically updated. Changes to it are made in agreement with the Ministry of Defense based on the proposals of the relevant regional and Kyiv city military administrations.