A recent report by the National Bank of Ukraine shows a significant decrease in the volume of remittances that Ukrainians send to their homeland. In August 2024, the total volume of such transfers decreased by 15.9%, reaching $791 million. Since the beginning of the year, according to the NBU, the volume of transfers has decreased by 14.3%, amounting to $6.5 billion.
From the official NBU statistics for the last five years, it is clear that the peak of remittances in Ukraine was reached in pre-war 2021, and then people reduced their remittances:
– 2019 – $11.92 billion;
– 2020 – $11.98 billion;
– 2021 – $14.0 billion;
– 2022 – $12.5 billion;
– 2023 – $11.3 billion.
After the invasion of Ukraine began, experts explained this reduction mostly by the main factor - the mass departure of refugees from the country and their adaptation abroad. Many people who worked abroad before the war, after the invasion began, took their families to safe countries, and they simply had no one to send money to. This process is intensifying from month to month, especially on the eve of the current heating season, which, if you believe the authorities, may turn out to be the most difficult for the population during the entire great war. Therefore, according to the results of 2024, Ukraine is expected to receive even less than the $11.3 billion recorded in 20203.
"I expect a drop in private remittances to $9.6 billion," predicted financial analyst Andriy Shevchyshyn.
And bankers say that Ukrainians are not only sending fewer transfers, but are also leaving the Ukrainian banking system.
"At first, we observed that people who, after the war, used to pay with cards abroad (left the country) began to reduce their expenses there - apparently, they were saving. Then they began to contact the bank with the aim of closing their accounts, and during communication with our managers, when they were offered new packages and more favorable conditions, the refugees said that they simply did not need Ukrainian accounts anymore. Our people opened accounts in Western banks. Because they were fired from enterprises in Ukraine (from which they received hryvnia for their accounts) and got jobs in a new place. There is no point in preparing statements from accounts in Ukrainian banks (required by local social services to receive various benefits) and in general keeping them - money is no longer flowing there. Therefore, it is easier for them to say goodbye to our bank and no longer be tied to the Ukrainian economy in principle. They now have a new life. We are receiving more and more such explanations," - said one of the system banks.
