Ukrainian investors seeking to diversify their capital and invest in foreign assets (real estate, securities, business shares) face a number of serious obstacles. Classic channels for capital repatriation to jurisdictions with strict compliance (Europe, USA), where clients and the origin of their funds are meticulously verified, can unexpectedly become complicated.
Experience shows that many Ukrainians have no idea how to structure capital for future use, and the problem of cross-border payments itself can lead to account blocking.
Three key problems with Ukrainian capital abroad
Professionals focusing on solving this problem conventionally divide the complexities into three groups:
- Problems with fund transit
The methods Ukrainians are accustomed to using to withdraw money from Ukraine to Europe have either stopped working or are operating with significant limitations, forcing them to seek new ways.
- Documentation difficulties
Even if the capital is already outside of Ukraine, documents will be needed that the European Union (EU), its bodies and banks will accept to confirm the origin of funds when making investments.
- Lack of structure and origin
People often have no idea how to structure their capital so that it can be used further for their goals, as the necessary documents are missing.
Why don’t classic methods work for large sums?
1. Transporting cash across borders
Previously, you could simply declare cash at the border and deposit it into a bank account in Europe. Now, this procedure has become significantly more complicated for the following reasons:
- Fund requirements
Withdrawn funds must have proof of withdrawal from a bank account, and this transaction must be recent (not several years ago). This creates problems, as people who received funds, for example, from the sale of real estate, often do not have information about the withdrawal or did not think it would be needed.
- Compliance issues
Even if all the documents are in order, border guards sometimes deliberately create problems, trying to earn extra money from those who don’t know the law. Additionally, at the border guards’ request, banknotes can be stamped, but European banks dislike stamped money.
- Government restrictions
The Ukrainian state, along with banks, is trying to maximally restrict possibilities of capital outflow so that it continues to work in Ukraine.
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Payment systems (Wise, Revolut)
Payment services like Wise or Revolut can be used for small personal expenses. However, they are risky for large sums:
- Refill
There are currency restrictions: currency transfers from Ukraine are prohibited, and there is a limit for transfers in hryvnia.
- Restrictions for Ukrainians
Many payment providers are limiting functionality or completely stopping the acceptance of Ukrainian passports, requiring European residency. Revolut no longer opens accounts for Ukrainians.
- Blocking via crypto
Wise and Revolut consider crypto operations to be very high risk and block related payments. Fund freezes can last for months, and improperly submitted documents can lead to a complete freeze.
