The Institute for Economic Research and Policy Consulting (IER) estimates the potential economic impact of Ukraine’s accession to SEPA for businesses and individuals at EUR70 million to EUR100 million per year due to cheaper transactions in euros.
“If current payment volumes are maintained, the potential savings for individuals and legal entities from the transition to SEPA could be between EUR70 million and EUR100 million,” IER notes in a May research note.
It is clarified that the above estimates are indicative. They were based on a World Bank study for the Western Balkans, which showed that the cost of a transfer of EUR 20,000 between the EU and these countries was 0.3% on average in 2023, compared to 0.02% for the same payment within the EU.
IER added that an analysis of the tariffs of four Ukrainian banks with the largest balances of legal entities’ deposits in foreign currency shows that the cost of a payment of EUR20,000 is lower than EUR60 (0.3%), but much higher than EUR4 (0.02%), which are typical for transfers within the EU. Only the minimum commissions of Ukrainian banks for a payment outside of promotional offers are $20-30.
Monitoring of tariffs for transfers from Poland, Germany, the Czech Republic and Italy to Ukraine, conducted by the World Bank, shows that as of November 2024, the cost of a transfer in the national currency of the sending country (EUR140, PLN 860, CZK 3,800) ranged from 1 to 10% and higher. At the same time, the most expensive transfers reflected high fixed commissions of a number of banks, which made it unprofitable to transfer such amounts via bank transfers. However, in each country there were transfer options with a total cost of up to 2%. At the same time, the cost of a transfer with a larger amount (EUR345, PLN 2,150 and CZK 9,550) was lower in percentage terms, and the most profitable transfer options were close to 1% of the amount.
Experts also recall the NBU data, according to which in Ukraine’s foreign trade, payments in euros with EU countries amounted to up to EUR46 billion (over EUR16 billion in exports of goods and services and over EUR29 billion in imports) in 2024. Ukraine also received over EUR1.8 billion in transfers from EU countries through banks and international payment systems in 2024.
The IER compared that Moldova estimated its short-term benefit from joining SEPA at EUR12 million. At the same time, Ukraine’s foreign trade volumes exceed Moldova’s by more than nine times, and money transfers by six times.
According to experts, joining SEPA could provide Ukraine with access to the EU’s internal market in financial services even before its official accession to the European Union.
It is noted that reducing transaction costs could reduce the volume of informal transfers between Ukraine and the EU and stimulate the wider use of the euro in trade. SEPA is also able to accelerate the movement of funds between Ukraine and the EU, improve financial liquidity and increase business efficiency, in particular for companies with active European ties.
Also, the implementation of SEPA standards will contribute to the security and transparency of payments, reducing the risks of fraud.
As reported, in April, the Cabinet of Ministers approved a package of draft laws, the adoption of which is a prerequisite for Ukraine’s accession to the Single Euro Payments Area (SEPA), and the National Bank of Ukraine plans to submit an application for Ukraine’s accession to SEPA in the second half of 2025 after making the necessary legislative amendments.
Ukraine’s accession to SEPA will allow citizens and businesses to make transfers in EUR between 36 participating European countries extremely quickly, without additional fees and according to clearly established rules.
Albania, Montenegro, North Macedonia and Moldova joined SEPA in late 2024 and early 2025. Banks and other payment institutions from these countries may begin making their first SEPA transfers later this year. Serbia and Kosovo have also submitted applications.
