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Editor’s note: This is issue 5 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly "Ukraine Reforms Tracker" covering events from Dec. 9-Dec. 15, 2024. This newsletter was until recently titled “Ukrainian Economy in Brief." 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 in the memorandum with the IMF
Tax committee approves bills extending tax benefits
The Committee on Finance, Tax, and Customs Policy has recommended the adoption of two draft laws exempting certain imports and other operations from taxes and customs duties. Specifically, the proposed laws suggest: exempting components imported for the production of ammunition and shells as well as components for all types of drones from customs payments; extending tax benefits for the import of unmanned aerial vehicles, night vision devices, and anti-drone rifles; and introducing personal income tax exemptions for funds raised by volunteers for charitable foundations etc.
The Verkhovna Rada, Ukraine's parliament, is scheduled to review these draft laws during its sessions on Dec. 17–20.
Parliament to consider draft law on High Administrative Court
According to the agenda shared with MPs, this week the Verkhovna Rada is expected to discuss a draft law establishing a new High Administrative Court. However, the updated draft text has not yet been submitted to parliament. The deadline for this step, as stipulated in the IMF Memorandum, is the end of December. It’s worth mentioning that the upcoming sessions of the parliamentary meetings from Dec. 17–20 will be the last for the year.
As noted in Issue 4, the Rada previously rejected three draft laws on the above-mentioned issue, as they were found to contradict Ukraine’s commitments under the International Monetary Fund financial support program (EFF).
Martin Fornusek
The benchmark for canceling 'Lozovyy amendments' is at risk of not being met on time
In December, the deadline approaches for Ukraine to fulfill the IMF Memorandum requirement to amend the Criminal Procedure Code. These amendments have to enable the The Specialized Anticorruption Prosecutor's Office to manage extradition and mutual legal assistance requests and rationalize consequences from expiration of time limits for pre-trial investigations cancelling so-called “Lozovyy amendments."
Currently, the structural benchmark is proposed to be addressed through amendments to another draft law, #10242. The bill is widely criticized by anti-corruption NGOs such as the Anti-corruption Action Center, Dejure Foundation, and Transparency International Ukraine for increasing the risks of criminal liability for investigative journalists. Given that the parliament will hold only one plenary week before the end of the year, there is a risk that the structural benchmark will not be met on time.
Moreover, anti-corruption experts insist that the provision to transfer the authority to extend pre-trial investigations within a year from investigative judges to prosecutors must be incorporated into the draft law.
Other key economic issues
Social Policy Ministry proposes pension reform draft law
The Social Policy Ministry has unveiled a draft law on pension reform. The proposal includes updating the solidarity-based pension system by introducing a basic pension level, simplifying the calculation of current pensions insured by the state, and establishing a mandatory second-tier pension system based on accumulated savings. Before submission to Parliament, the draft law must receive approval from the Cabinet of Ministers.
Tim Zadorozhnyy
