The Ukrainian National Securities and Stock Market Commission will lift most stock market and commodity markets restrictions today.
The Commission initially introduced stock market restrictions after the Russian invasion of Ukraine, with the dual goal of preventing panic responses and limiting the activity of Russian companies. Today’s move aims to develop Ukraine’s financial sector amid the country’s war with Russia. Ukrainian Prime Minister Denys Shmyhal has stated that capital and commodity markets should be a key driver of the Ukrainian economy’s recovery. This approach is in line with the National Bank of Ukraine’s financial sector strategy, which intends to create conditions for raising long-term funding of the economy.
Though the decision to open capital markets is controversial, as it will facilitate Russian business in Ukraine, the Commission head’s emphasis that capital market activity must be carried out carefully amid the war suggests that the body will continue to exercise caution in stocks they allow to be traded. In the longer term, Ukraine’s commodity and capital markets are likely to develop according to the NBU’s plan, leading to a more digitalized financial sector with a greater emphasis on investor rights.
Laurence is an Analyst and weekly contributor to The Daily Brief, he focuses on geopolitical and economic issues occuring in Europe and Eurasia.