What new laws of Ukraine provide

The Parliament of Ukraine:

1. On 17 July 2024, at its plenary session, the Parliament of Ukraine adopted the Law of Ukraine ‘On Amendments to Certain Laws of Ukraine on Simplification of Conditions for Conducting Economic Activity during the Period of Martial Law (State of Emergency) in Ukraine’ (registration No. 7331 dated 29 April 2022, initiated by the Prime Minister of Ukraine Denys Shmyhal) in the second reading and as a whole.

This Law amended, in particular, the Law of Ukraine ‘On Permitting System in the Field of Economic Activity’, according to which:

– during the period of martial law (state of emergency), permits and licences are transferred to the declarative principle by submitting a declaration on conducting economic activity to the relevant licensing authorities free of charge without obtaining permits;

– the procedure for submitting a declaration, the list of economic activities that cannot be performed on the basis of a declaration, the list of information to be included in the declaration, and the specifics of issuing permits are determined by the Cabinet of Ministers of Ukraine;

– the declaration may be submitted anywhere in the country, regardless of where the company is locate;

– the declaration is valid for the period of martial law and until the end of the calendar year in which martial law is terminated or cancelled (but not less than three months from the date of its termination or cancellation);

– during the period of martial law, there is no need to re-issue previously obtained permits, amend information in declarations, etc., even if the statutory deadlines for doing so have passed;

– scheduled inspections of permits are suspended for the duration of martial law.

The Law will come into effect after signing by the President of Ukraine.

It is interesting to note that the Main Legal Department of the Parliament’s Secretariat, after conducting a legal examination, stated in its Remarks to the second reading of the Law that ‘the law, like its previous version, raises concerns about its non-compliance with the Constitution of Ukraine’.

2. At its plenary session on 18 July 2024, the Parliament of Ukraine adopted the Law of Ukraine ‘On Amendments to the Tax Code of Ukraine on Implementation of the Provisions of the European Union Law on the Excise Tax’ (registration No. 11256-2 of 29 May 2024; initiated by the Deputy Viktoria Hryb).

This Law, which is to become effective on 1 September 2024, provides for amendments to the Tax Code of Ukraine, in particular, in terms of introducing a gradual increase in excise tax rates on various types of fuel (motor gasoline, diesel fuel, liquefied gas, alternative motor fuel) over a period of 4 years in order to bring Ukrainian legislation in line with EU legislation in order to implement the Association Agreement between Ukraine and the European Union, the European Atomic Energy Community and their Member States provided in the Directive No. 2003/96/EC, to the minimum level established in the EU.

3. On 18 July 2024, at its plenary session, the Ukrainian Parliament adopted as a basis the Law of Ukraine ‘On Amendments to the Criminal Code of Ukraine and the Criminal Procedure Code of Ukraine on Improving the Efficiency of Plea Bargaining’ (registration No. 11340 of 14 June 2024; initiated by the Prime Minister of Ukraine Denys Shmyhal).

This law will allow the corrupt to ‘pay off’ from prison. This is despite the risks identified by National Anti-Corruption Bureau, the Specialised Anti-Corruption Prosecutor’s Office, and the Parliamentary Committee on Anti-Corruption Policy.