Law on Lobbying Comes into Force
On 14 March 2024, Law No. 3606-IX “On Lobbying” came into force, which aims to legalize the practice of lobbying in Ukraine.
Thus, the Law establishes specific rules and procedures for lobbyists and their clients, defines criteria for lobbying relations, relevant terminology, rights and obligations of lobbying participants, methods of influence, etc.
It should be noted that, according to the Law, lobbying in Ukraine will be considered to be the influence (or attempted influence) on a legal act or its draft by any person in his/her commercial interests or in the interests of a third party. Political parties, media, religious organizations, candidates for the presidential and parliamentary elections will not be able to engage in it.
It is expected that any business may enter into agreements with lobbyists to protect own interests.
The Law also provides for the creation of the so-called Transparency Register, which will ensure the collection, recording, display and provision of information about lobbying entities and their reporting.
Notably, lobbying without registration in the Transparency Register will be considered illegal.
Although the Law has entered into force, it will come into effect only two months after the start of the Transparency Register’s operation, but no later than 01 January 2025. For now, the Government is responsible for developing ethical rules of conduct for lobbyists and ensuring the establishment and operation of the Register.
It is noted that the adoption of the Law on Lobbying is one of the key recommendations of the Group of States against Corruption (GRECO) and a recommendation of the European Commission on the way to the start of the negotiation process on Ukraine’s accession to the EU.
President Signs Decree on Demobilization of Conscripts
On 07 March 2024, the President of Ukraine signed the Decree on the discharge of conscripts.
According to this Decree, conscripts are expected to be demobilized in April-May 2024 from the Armed Forces of Ukraine and other military formations whose military service term expired during martial law.
As a reminder, the Law providing for the possibility of discharging servicemen who have completed their regular military service for the duration of martial law in Ukraine came into force on 27 February 2024.
The European Parliament Committee Supported the Extension of Duty-Free Trade with Ukraine, but with Changes
On 07 March 2024, the European Parliament’s Committee on International Trade approved a proposal to extend the suspension of import duties and quotas on exports of Ukrainian agricultural products to the EU for another year, until 5 June 2025.
By this decision, the Commission was given “the power to take swift action and impose any necessary measures should there be significant disruptions to the EU market, or to the markets of one or more EU countries due to Ukrainian imports”.
Emergency braking is also envisaged for particularly sensitive agricultural products, such as poultry, eggs, and sugar. This means that if imports of these products exceed the average volumes for 2022-2023, tariffs will be reintroduced.
The Law on Improving Online Communication with Taxpayers Enters into Force
On 16 March 2024, Law No. 3603-IX came into force, which, inter alia, introduces the possibility for taxpayers to participate in videoconference during the consideration of complaints or audits.
In addition, the Law introduces changes that significantly improve the situation of taxpayers, namely:
- abolishes liability for paying tax to the wrong budget account;
- provides for the possibility of not paying tax on the land on which the damaged or destroyed property is located;
- establishing tax exemptions for land and real estate taxes in the areas where a decision on mandatory evacuation of the population has been made.
The National Bank Cuts the Discount Rate to 14.5%
According to the press service of the National Bank, on 14 March 2024, the NBU Board decided to cut the discount rate from 15% to 14.5%.
“Taking into account the further deceleration of inflation and a steady improvement in expectations, a stable FX market, and a partial reduction in the risks associated with obtaining international assistance, the NBU Board decided to cut the key policy rate by 0.5 pp, to 14.5%”, the statement said.
The Cabinet of Ministers Strengthens Supervision of Non-Food Products Safety
By the relevant Resolution No. 261 dated 08 March 2024, the Government partially returned safety inspections of non-food products in the relevant industries (e.g. household appliances, automotive appliances, computers, circular saws, vehicle maintenance lifts, lawn mowers, food processors, etc.)
According to the Government’s decision, scheduled and unscheduled inspections of non-food products in the following areas will be resumed:
- electromagnetic compatibility
- low-voltage electrical equipment;
- safety of machines and mechanisms.
It is reported that the decision was made to fulfill obligations to international partners, in particular, it was a requirement of the European Commission in preparation for the conclusion of the ACAA Agreement and the Ukraine Facility program.
Diia Can Be Used as a Digital Wallet in EU Countries: What is Known?
According to the press service of the Ministry of Digital Transformation, the European Parliament has voted to create a legislative framework for EU digital identification. Thus, it will speed up the development and implementation of the European Digital Wallet (EUDI).
The EU Digital Identity Wallet is a mobile product that will allow you to safely and efficiently store and share your personal data electronically, open a bank account, use an electronic signature, receive electronic medical prescriptions, etc.
The member states of the POTENTIAL consortium, including Ukraine, have to present their digital wallets within two years, and testing of the prototypes should be completed by April 2025.
“The Ukrainian digital wallet is Diia.” After the pilot is launched in the EU, Ukrainians will be able to use Diia there, and Europeans will be able to use their digital wallets in Ukraine,” the Minister of Digital Transformation of Ukraine wrote on his Facebook page.
Government Approves Increase in Excise Taxes on Tobacco Products
According to the Ministry of Finance, on 15 March 2024, the Cabinet of Ministers of Ukraine approved the draft law “On Amendments to the Tax Code of Ukraine on Revision of Excise Tax Rates on Tobacco Products”.
Inter alia, the draft law provides for a gradual increase in the excise tax rates on tobacco products to the level set by the EU Minimum Excise Tax Directive.
The increase in rates will be gradual until 2028 and is estimated to provide additional revenues to the state budget in the amount of up to UAH 13.85 billion in 2028.
European Commission Prepares Negotiating Framework for Ukraine and Moldova’s EU Membership
According to the statement of the European Commission, on 12 March 2024, the European Commission officially presented to the EU Council its proposals for a negotiation framework for the accession of Ukraine and Moldova to the EU.
The negotiation framework is intended to establish the main principles of EU accession negotiations with a candidate country.
The EU Council is now to start internal discussions on these documents. After the EU Council adopts the negotiating framework, the EU member state holding the rotating presidency of the EU Council will present the agreed common EU position at the first intergovernmental conference, which will mark the official start of accession negotiations. At this stage, the negotiating framework will be made public.
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