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4 days ago
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Ukraine Reforms Tracker Weekly — Issue 27
Editor's note: This is issue 27 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukraine Reforms Tracker" covering events from May 19–May 25, 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. Ukraine approves roadmap for customs reform planning amid implementation deadlock Ukraine's Cabinet of Ministers, following a proposal by the Finance Ministry, has approved the development of a medium-term action plan for customs reform implementation under the National Revenue Strategy through 2030. The move comes despite mounting criticism from civil society and lawmakers that the government has deliberately stalled customs reform for over five months — specifically by failing to form the selection commission required by law and the International Monetary Fund's financial support program to reboot the State Customs Service. Zelensky submits bill to establish two specialized administrative courts in Kyiv Ukrainian President Volodymyr Zelensky has submitted draft law #13302 to parliament, proposing the creation of a Specialized District Administrative Court and a Specialized Administrative Court of Appeal, both to be headquartered in Kyiv with nationwide jurisdiction. Parliament is set to vote for the draft law in the first reading during the next plenary meetings scheduled for June 3-5. According to the explanatory note, the bill has been prepared to implement the legal framework for launching the two new courts. The proposal follows prior approval by the High Council of Justice, which endorsed the president's initiative to formally establish the courts and begin operational planning. The courts are expected to play a central role in handling public administration and anti-corruption cases, including high-profile disputes involving state institutions. Ukrainian parliament to review bills linked to Ukraine Facility in early June The Verkhovna Rada, Ukraine's Parliament, is scheduled to hold its next plenary sessions from June 3–6, with a legislative agenda that includes several bills tied to the country's commitments under the EU-backed Ukraine Facility program. Among the priority bills: draft law #13165 and alternatives on improving judicial integrity declarations (first reading); draft law #12377 on establishing the fundamentals of national housing policy (first reading); draft law #9363 on the digitalization of enforcement proceedings (repeated second reading); draft law #12374-d on the restart and strengthening of the institutional capacity of the Asset Recovery and Management Agency (ARMA) (second reading). In addition, lawmakers are expected to consider in second reading draft law #13018-d on financial inclusion, which would allow the establishment of banking services via Ukrposhta. While not a binding obligation, the legislation is part of Ukraine's soft commitments under its IMF memorandum. Ukraine projects steady economic growth, slowing inflation through 2028 in budget forecast A draft of Ukraine's medium-term budget declaration, obtained by the Parliament's Temporary Investigative Commission on Economic Security outlines moderate economic growth and a gradual decline in inflation through 2028: Nominal GDP is projected to reach: Hr 10.44 trillion ($251.3 billion) in 2026, Hr 11.92 trillion ($287.0 billion) in 2027, and Hr 13.47 trillion $324.4 billion) in 2028. Annual inflation (Consumer Price Index) is expected to decline from 9.7% in 2026 to 7.1% in 2027, and 5.6% in 2028; End-of-year exchange rate is projected at: 43.7 Hr/dollar in 2025; 44.8 Hr/dollar in 2026; 45.3 Hr/dollar in 2027; 45.8 Hr/dollar in 2028. The draft is part of Ukraine's annual fiscal planning cycle. The Cabinet of Ministers must adopt the declaration by June 1, though figures remain subject to revision in the final version. Read also: Ukraine, US officially launch joint Reconstruction Investment FundWe've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
15-05-2025
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Ukraine Reforms Tracker Weekly — Issue 25
Editor's note: This is issue 25 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukraine Reforms Tracker" covering events from May 5–May 11, 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. Ukraine misses customs reform deadline, jeopardizing IMF commitments Ukraine's government has failed to launch the reboot of the State Customs Service, risking a key International Monetary Fund structural benchmark and putting up to $1.3 billion in international aid at risk. Despite a legal requirement to form a selection commission for the new head of customs by Jan. 1, the Finance Ministry has not acted. According to MP Yaroslav Zhelezniak, the delay is being orchestrated by Finance Minister Serhii Marchenko and the Government Committee led by Economy Minister Yuliia Svyrydenko, reportedly under direct instructions from the President's Office to block the reform. The continued inaction not only violates Ukrainian law but undermines commitments to the IMF, U.S., and World Bank, who have already disbursed funding tied to the reform. The IMF deadline for appointing a new customs chief by end-June 2025 is now considered unrealistic, raising the risk of future funding being withheld. G7 backs ARMA reform bill, but parliament fails to add it to agenda again The G7 ambassadors have voiced support for draft law #12374-d, aimed at overhauling Ukraine's Asset Recovery and Management Agency (ARMA). The bill was developed under the leadership of MP Anastasiia Radina and is required under the EU's Ukraine Facility program. Despite international backing, the bill was not included in this week's parliamentary agenda. Ukraine already missed the March 31 deadline for passage, putting 300 million euros in EU funding at risk. Moreover, ARMA publicly questioned the bill, claiming international partners had raised concerns — an assertion at odds with the G7's public endorsement. Ukraine ratifies U.S. critical minerals agreement, advances supporting legislation On May 12, Ukrainian President Volodymyr Zelensky signed the ratification of the critical minerals agreement between Ukraine and the United States, following unanimous support from all parliamentary factions. Last week, parliament also passed in the first reading draft law #13256, which introduces amendments to the Budget Code to implement the agreement's provisions. Read also: Ukraine, US sign additional agreements for minerals deal, Economy Ministry says We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
12-05-2025
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Ukraine and EU sign memorandum on defence cooperation
Ukraine and the European Union have signed a Memorandum of Understanding on cooperation in the defence industry. Source: Ukrainian news agency Interfax Ukraine Details: The signatures were put by Herman Smetanin, Minister of Strategic Industries of Ukraine, and Jan Pie, Secretary General of the Aerospace, Security and Defence Industries Association of Europe (ASD). The signing took place on Monday 12 May in Brussels as part of the second EU-Ukraine Defence Industry Forum. The purpose of the memorandum is to jointly promote the common interests of Ukrainian industry and ASD members. The parties agreed to facilitate cooperation and partnership between Ukrainian defence companies and ASD members, as well as to promote the participation of Ukrainian companies in industrial consortia under relevant EU programmes. These include the European Defence Fund or Horizon Europe. Background: Earlier, it was reported that Danylo Hetmantsev, Chairman of the Ukrainian Parliamentary Committee on Finance, Taxation and Customs Policy, believes that in order to increase the potential of Ukraine's defence industry, a well-founded and correct decision by the Cabinet of Ministers to allow the export of Ukrainian weapons is needed. Hetmantsev believes such a government decision will significantly support domestic arms manufacturers. To support this locomotive of the Ukrainian economy, "we need to create a special legal and tax regime that our defence companies could use". It was also reported that the European Union will allocate an additional €900 million for the purchase of weapons for Ukraine at the expense of unforeseen revenues from frozen Russian assets. "Over the next two weeks, we will also spend an additional €900 million to purchase weapons and ammunition for Ukraine, all of which will be financed by the surplus proceeds of frozen Russian assets," said Charles Fries, Deputy Secretary General for Peace, Security and Defence of the EU External Action Service. The Ukrainian Ministry of Economy reported that Ukraine had received another tranche of €3.5 billion from the EU under the Ukraine Facility programme. This is the first tranche of financial support that Ukraine received in 2025. It is noted that of the €3.5 billion received: €3.1 billion in concessional loans and €400 million in grants. They will be used to cover public spending. Support Ukrainska Pravda on Patreon!
Yahoo
07-05-2025
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Ukraine Reforms Tracker Weekly — Issue 24
Editor's note: This is issue 24 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukraine Reforms Tracker" covering events from April 28–May 4, 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 Ukraine's government registers draft law to tax digital platforms, fulfilling IMF commitment Ukraine's Cabinet of Ministers has registered draft law #13232, which introduces taxation rules for digital platforms. This draft law was designed to meet an International Monetary Fund structural benchmark that required submission by the end of April 2025. The proposed legislation designates platform operators as tax agents, requiring them to automatically withhold taxes from individuals earning income through the sale of goods or services on their platforms. A 5% personal income tax and an additional 5% military levy would apply to relevant draft law does not provide for any tax-free threshold. Experts warn that due to legal ambiguities, the effective tax rate could rise to 23%, rather than the intended 10%. The draft law also includes provisions for lifting banking secrecy, granting tax authorities broader access to financial information. Obligations to the EU Parliament again fails to advance judicial reform bill tied to EU assistance For the third time, Verkhovna Rada of Ukraine failed to include draft law #13114 on its agenda, falling short of the required threshold. The bill proposes technical amendments to judicial appointment procedures and updated eligibility rules for judges of the High Anti-Corruption Court (HACC). The legislation is a requirement under the EU's Ukraine Facility program, linked to the disbursement of 300–400 million euros in macro-financial assistance. Its delay mirrors similar setbacks with the ARMA reform bill, which likewise has yet to be added to the parliamentary agenda despite repeated attempts. Other key economic issues Ukrainian parliament to hold emergency session on May 8 to ratify US-Ukraine mineral deal The Verkhovna Rada will convene a special emergency session on May 8 to vote on the ratification of the Critical Minerals Agreement between Ukraine and the United States. The U.S. and Ukraine signed the minerals agreement on April 30, paving the way for further American support of Kyiv through a joint investment fund that will contribute to Ukraine's reconstruction. Three international experts appointed to panel overseeing Ukraine's state audit appointments Ukraine has finalized the selection of three international experts who will join a six-member Advisory Expert Group tasked with overseeing the selection of members to the Accounting Chamber, Ukraine's state audit body. The appointed international auditors are: Igors Ludborzs (Latvia) – member of the European Court of Auditors, certified since 1994; Pascal Mounier (France) – senior auditor, French Court of Audit, with 24 years of experience; Lee Summerfield (U.K.) – director, U.K. National Audit Office, with 25 years of experience, including in defense sector audits. The group will consist of three international and three Ukrainian experts, with voting priority given to international members. Next steps are the following: the Cabinet of Ministers (CMU) formally submits the list to parliament; the Budget Committee prepares a resolution on the group's composition (within one week after receiving a letter from the CMU); Parliament conducts a rating vote to select Ukrainian experts and approves the resolution on the group's full composition (both are expected during the next plenary week) Read also: Ukraine Business Roundup — Making sense of the minerals deal We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
23-04-2025
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Ukraine Reforms Tracker Weekly — Issue 22
Editor's note: This is issue 22 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukraine Reforms Tracker" covering events from April 14–20, 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. Final stage nears in Ukraine's search for Economic Security Bureau director Ukraine's selection commission is currently awaiting the results of background checks and is conducting integrity assessments of the 16 remaining candidates for the position of director of the Bureau of Economic Security. Once the screenings are complete, the final stage of the competition — interviews — will follow. All 16 candidates have been approved to participate in the interviews, which will last up to 60 minutes each and be broadcast live on the Cabinet of Ministers' website. Following the interviews, the commission will nominate no more than two finalists, whose names will be submitted to the Prime Minister for appointment. Parliament approves three bills under Ukraine Facility commitments Ukraine's Parliament, the Verkhovna Rada, has passed three draft laws tied to country's obligations under the EU-backed Ukraine Facility program: draft law #13107-d on vocational education reform was adopted in the first reading; draft law #5838, strengthening administrative accountability for misconduct by state regulatory officials, also passed in the first reading; draft law #12150, which aligns Ukraine's electronic communications regulations with EU law, was approved in full. Wife of Ukraine's financial intelligence chief linked to firm tied to sanctioned oligarch A new investigation by has revealed that Natalia Pronina, wife of the head of Ukraine's State Financial Monitoring Service, Filip Pronin, became a co-owner of Tesoro Management, a company previously linked to sanctioned oligarch Dmytro Firtash. In 2024, Pronina was listed as a co-owner alongside Anna Sologub, who continues to serve as the firm's director. Sologub had previously served on the audit commission of Rivneazot, a company affiliated with Firtash. According to corporate filings, she is currently a member of Rivneazot's audit committee. Tesoro Management, officially registered as a consulting firm with an office in central Kyiv and a functioning website, shows no signs of financial activity, according to Sologub herself confirmed to journalists that the company is not actively operating. Filip Pronin is reported to have close ties to Andriy Yermak, head of the Office of the President. Ukrainian parliament extends martial law and general mobilization until Aug. 6 On April 18, the Verkhovna Rada voted for the 15th time to extend martial law and general mobilization for another 90 days, until Aug. 6 under draft laws #13172 and #13173, respectively. The president has already signed both bills. Read also: This Ukrainian mining company is losing hope in Trump's minerals deal We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
