A new path to savings and investments is opening up for Ukrainians: a draft law registered in the Verkhovna Rada

The Verkhovna Rada of Ukraine registered a draft law that will facilitate the creation of personal investment accounts for Ukrainian citizens. The law had been drafted by the National Securities and Stock Market Commission with the active support of the VRU Committee on Finance, Tax, and Customs Policy.

“We are creating conditions under which every Ukrainian will be able not only to save money but also to become an investor in the Ukrainian economy. I am convinced that every Ukrainian should become a capitalist — an owner of assets that contribute to their welfare and, at the same time, to the country’s development. This is a draft law about trust, about long-term savings, and about ensuring that citizens’ money works toward Ukraine’s development,” said Oleksiy Semenyuk, Chairman of the National Commission.

Today, most Ukrainians keep their savings in cash or in bank deposits. At the same time, in developed countries, millions of citizens invest their funds through special investment accounts, which not only allows them to grow their savings but also helps finance businesses and economic development. It is precisely this approach that is being proposed for implementation in Ukraine.

What will change for citizens?

The draft law provides for the possibility of opening a personal investment account with an investment firm and investing funds in financial instruments on the Ukrainian capital market. This primarily refers to securities issued by Ukrainian issuers — companies that raise funds from investors through the issuance of securities — and other instruments specified by the National Commission.

The main benefit for investors is tax incentives. If funds are invested through such an account for at least three years, investment income, dividends, and interest will not be taxed.

Why does Ukraine need this?

Its goal is to foster a culture of investing in Ukraine, help citizens allocate their funds across various investment instruments, reduce the risk of losing their savings, and protect them from the effects of inflation.

Essentially, this involves creating a mechanism whereby Ukrainians’ funds will not be kept “under the mattress,” but will instead be used to promote the welfare of Ukrainian businesses, create jobs, and revive the economy.

Global experience

Similar accounts have been operating successfully for many years in the U.S., the U.K., Canada, Japan, and other countries. For example, U.S. personal investment accounts cover about 40% of households and accumulate more than USD 11 trillion in assets.

In Ukraine, however, investments by individuals in government bonds (OVDPs) total just over UAH 107 billion — in the U.S. dollar equivalent, this amount is approximately USD 2.6 billion. The difference compared to the United States is more than 7,000 times.

“The goal is not to create yet another financial product. The goal is to transform millions of Ukrainians from savers and cash holders into investors and co-owners of Ukraine’s economy,” concluded Oleksii Semeniuk, Chairman of the NSSMC.