Editor’s note: This is issue 19 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly "Ukraine Reforms Tracker" covering events from March 17–23, 2025. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs.
The Kyiv Independent is republishing with permission.
Benchmarks and soft commitments with the IMF
Tobacco tax hike law comes into effect after 106-day delay
On March 25, draft law #11090, on increasing excise tax on tobacco goods was officially published and entered into effect — 106 days after it was submitted for presidential signature.
Parliament advances bill enabling financial inclusion banks, supporting Ukrposhta’s entry into banking
Ukraine's Parliament, the Verkhovna Rada, has passed draft law #13018-d in its first reading, laying the legal groundwork for the creation of financial inclusion banks — a new category of banking institutions operating under a limited license.
The proposed banks would be tasked with serving individuals lacking stable access to financial services, particularly those in front-line areas, recently liberated territories, and among socially vulnerable groups.
The legislation is a critical step for Ukrposhta, the state postal operator, to launch its own financial institution.
Obligations to the EU
Parliament to vote on ARMA reform in final reading
The Verkhovna Rada is set to hold a final vote on draft law #12374-d, which aims to "reset" the National Agency for Tracing, Recovery and Management of Assets Derived from Corruption and Other Crimes (ARMA) — a key component of Ukraine’s anti-corruption infrastructure.
The proposed legislation includes:
- stricter integrity and qualification standards for candidates vying to lead ARMA;
- merit-based hiring via open competition, with involvement from the ARMA Public Oversight Council and representatives of civil society organizations;
- introduction of independent external audits to assess ARMA’s operational effectiveness;
- a fixed deadline for selecting asset managers following asset seizure;
- engagement of certified professional asset managers, who will bear legal responsibility for mismanagement
The bill’s adoption and signing would allow Ukraine to meet one of the benchmarks under the Ukraine Facility, with a deadline set for the end of Q1 2025.
Lawmakers and Government submit competing bills to reform vocational education in Ukraine
Ukraine’s Parliament has registered competing bills aimed at overhauling the country’s vocational education system, one of the reforms tied to the EU’s Ukraine Facility funding mechanism.
On March 14, a group of lawmakers introduced draft law #13107, followed by the Cabinet of Ministers’ alternative proposal, draft law #13107-2, submitted on March 24.
Both initiatives seek to modernize vocational education and enhance the institutional autonomy of vocational training institutions. Adoption of the legislation is required under Ukraine’s reform commitments to the EU, with a deadline set for the end of Q2 2025.
Martin Fornusek
