Zolotaya Korona pushes WU from leading position on Ukrainian remittance market

The Zolotaya Korona-Perevod remittance system (Russia) pushed Western Union down from the first position on the Ukrainian remittance market in 2013, head of the department for oversight over payment systems and settlements systems of the National Bank of Ukraine (NBU) Olena Makhayeva has said.

“The news of the year was the fact that Zolotaya Korona-Perevod was first [in incoming flow]…According to the first quarter, Western Union slightly won back its position, but the fight is very fierce,” she said at the International Conference VI on Markets for money transfers, bank coins and metals organized by Finance and Credit Bank in Kyiv.

The official said that Western Union was a leader on the market since the moment of the market formation.

She said that Ukraine remains an overall recipient of remittances.

“We receive six times more [remittances] than we send,” she said.

According to the National Bank of Ukraine, remittances to Ukraine came to $4.915 billion in 2013 (2.7 percent of GDP), which is 14 percent up year-over-year. Last year remittances from Ukraine came to $827 million, a rise of 12 percent year-over-year. $4.165 billion was sent to Ukraine via the nonresident systems in 2013 and $580 million was sent from Ukraine.

Makhayeva said that according to the World Bank around $10 billion was sent to Ukraine via all channels (including unofficial channels).

Distribution of cross border remittances market in sums received in Ukraine in 2012 via international remittance system created by nonresidents (% – percent):

© Source: NBU

The geographical structure of remittance sending via international remittance systems created by nonresidents (% – percent):

© Source: NBU