Integration into a single payment area will allow Ukrainians and domestic businesses to make money transfers in euros in accordance with internal European standards—almost instantly and with minimal fees.
The Verkhovna Rada of Ukraine has taken a key step toward harmonizing the domestic financial system with European Union legislation. Parliament adopted in the first reading, in principle, a draft law that creates the legal framework for Ukraine’s full accession to the Single Euro Payments Area (SEPA).
This was reported on the official website of the Verkhovna Rada of Ukraine.
How SEPA Will Change Things for Ordinary Ukrainians and Businesses
Joining the SEPA will radically transform the format of international non-cash transactions between Ukraine and European Union member states:
- Lower fees: Money transfers in euros will no longer be subject to the high fees associated with cross-border banking via the SWIFT system—the cost of transactions will be comparable to that of regular domestic transfers;
- High processing speed: funds will be credited much faster, and thanks to the SEPA Instant mechanism, money will reach the recipient’s account in a matter of seconds;
- Uniform standards and transparency: All financial transactions will be conducted in accordance with the unified legal and technical rules applicable to banks in EU member states;
- Support for exporters and volunteers: Ukrainian entrepreneurs will gain a direct, low-cost, and fast channel for settlements with European partners, while citizens abroad will have a convenient way to support their families in Ukraine.
The Path to Final Approval
The adoption of the draft bill marks the start of the final stage of preparing legislative provisions for the second reading.
Following the final vote and the harmonization of regulatory requirements with the European Payments Council (EPC), Ukraine will officially join the SEPA payment area, which will serve as yet another practical demonstration of the country’s genuine economic integration into the European market.
Source: Verkhovna Rada of Ukraine.
