Editor’s note: This is issue 9 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly "Ukraine Reforms Tracker" covering events from Jan. 6–12, 2025. 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 with the IMF
Parliament pushes forward draft law at odds with IMF requirements
Last week, the Verkhovna Rada, Ukraine's Parliament, rejected draft law #12368, submitted by the Cabinet of Ministers, which aimed to establish a High Administrative Court. Instead, lawmakers backed an alternative proposal, draft law #12368-1, introduced by MP Vlasenko of the Batkivshchyna faction, in its first reading. This version designates the Kyiv City District Administrative Court to handle cases concerning the National Anti-Corruption Bureau of Ukraine and Specialized Anti-Corruption Prosecutor's Office competitions and audits. For appeals it proposes to establish a separate Kyiv City Appeal Administrative Court. This move diverges from Ukraine’s commitments under the International Monetary Fund's Memorandum of Economic and Financial Policies (MEFP).
Parliament set to vote public investment management bill
During sessions scheduled for Jan. 14-17, 2025, the Verkhovna Rada will review draft law #12245 on public investment management in its second and final reading. The Budget Committee approved it on Monday morning. This legislation is crucial for meeting a structural benchmark under the MEFP, with a deadline at the end of January 2025.
Transparency International Ukraine has flagged concerns over recent amendments that grant the Cabinet of Ministers authority to increase salaries for State Audit Service employees and assign special ranks and statuses to the SAS.
Parliament to vote on draft law to repeal "Lozovyy Amendments," rejection likely
The Verkhovna Rada is set to consider a revised draft law #12367 amending the Criminal Procedure Code in its first reading. This government-backed legislation aims to fulfill obligations related to repealing the "Lozovyy amendments" and addressing the implications of expired pre-trial investigation time limits.
Our information indicates a significant risk of rejection when it comes to a vote. The Law Enforcement Committee hasn’t decided on the draft law during its meeting on Jan. 13. It is more likely that MPs will submit an alternative bill.
Obligations to the EU
Ukraine advances energy sector commitments
The Verkhovna Rada has adopted draft law #12131, reinstating monitoring and reporting on greenhouse gas emissions, fulfilling a key requirement under the Ukraine Plan. The deadline for this measure was set for the end of the second quarter of 2025.
Other key economic issues
Corporate governance reform sees progress
Parliament has passed draft law #6013, mandating corporate governance standards across utility and state-owned enterprises. In particular, these companies will have to sell assets via “Prozorro.Sales” and publish financial reports.
Moreover, the Cabinet of Ministers approved new procedures for evaluating the performance of supervisory boards in SOEs. Oleksii Sobolev, first deputy economy minister, noted that this includes mandatory performance assessments for the boards of Ukrenergo, Naftogaz, and the Gas Transmission System Operator (GTSO) for the previous year. The reform aims to ensure supervisory board independence and adherence to OECD corporate governance principles, requiring annual submission of development and performance reports by the end of March.
Volodymyr Ivanyshyn
