National Securities and Stock Market Commission of Ukraine chair outlines capital market reforms to finance reconstruction

National Securities and Stock Market Commission of Ukraine Chair Oleksii Semeniuk outlined priorities for expanding capital market financing for reconstruction at an ILG Prime Club meeting with legal and business representatives in Kyiv on Nov. 4. He identified restrictions on Ukrainians’ access to foreign securities and uncertainty over foreign investors’ ability to repatriate capital and income as barriers to market development. Companies also face constraints on issuing bonds denominated in foreign currencies, particularly when they lack foreign currency revenues. Individuals had invested UAH 167.5 billion in domestic government bonds as of Oct. 1. To broaden investment choices, the commission is working on investment funds and personal investment accounts with tax incentives for long term savings. Semeniuk reiterated proposals to introduce funds based on European Union standards, including public and alternative investment funds, to make Ukraine’s market more accessible to foreign investors. A parliamentary committee recommended the investment fund bill, No. 16137, for adoption at first reading on Nov. 4. For corporate financing, the commission is working to simplify securities issuance procedures. Semeniuk described a functioning corporate bond market as a prerequisite for developing public equity markets, which also require liquidity, corporate transparency and issuer interest. The commission is addressing obstacles to municipal bond issuance, and he expects initial issues in 2027 to finance energy and infrastructure reconstruction. He also discussed securitization as a way for banks to fund new lending through bonds backed by transferred loan portfolios, and identified 2027 as the year for practical implementation of regulatory changes prepared in 2026.