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A Step To the $ 2 Trillion Market

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Last week there had been  a watershed event: the NBU has finally allowed Ukrainians to legally open accounts abroad without permission from the state. CASE Ukraine tells to the ‘Delovaya Stolitsa’ (‘The Business Capital’) media outlet why this is an important event in the life of the country.

The bank has not allowed a free abroad money withdraw, but now it is possible to open an account itself. The decision was immediately criticized by the people who claimed it will not change anything, ‘it’s all cosmetic reforms, which were introduced for the oligarchs who legalize what they had looted’.

It is difficult to argue that it is a small step and, in fact, thousands of Ukrainian have open accounts without asking anyone and anything. However, there are some nuances that make even this small step a landmark reform in our environment.

Just imagine you live somewhere in Zhytomyr region and able to produce the best embroidered shirts (‘vyshyvanka’) in the world. Previously, to find a buyer, you needed to go to Kyiv and spend a lot of time and effort for that. Now there are global platforms like Amazon and Alibaba, which give you access to the global market in a few seconds. So, all those who lovish embroidered shirts can pay attention to your products and even buy it. A purchase is delivered by postal operators, who have been for a long time dreaming about Ukrainians engaging in electronic commerce.

Such opportunities are open before us after the legalization of foreign accounts.

But many related issues appear. How do I open a foreign account, living in Zhytomyr? How will we simplify the taxation of these funds in Ukraine? Resolving these problems would require additional time and effort. However, the main step towards $ 2 trillion market is already done.

Read the full text [in ukrainian]

February 28, 2017