The model for reforming the military conscription system proposed by the Cabinet of Ministers in late October of this year requires significant refinement, as it does not align with either economic or security logic, stated Andriy Dligach, founder and chairman of the Advanter Group.
“Reserves are a tool for preserving the human capital necessary for the country’s defense capability. The economy does not compete with the military; it finances it. It is business that ensures production, pays taxes, and generates resources for defense,” he emphasized in a post on his Facebook page.
According to him, Ukrainian businesses are currently on the brink of collapse: average corporate revenue stands at about 85% of the 2025 level, financial reserves are running out, and further draft calls for critically important personnel could bring business operations to a halt.
Dligach is convinced that reforming the system should begin with an audit of human resource utilization in the Defense Forces, as well as an assessment of opportunities for rotation and optimization. As one promising model, he proposes introducing the “2+2” principle (two years of military service and two years of civilian work), while simultaneously developing recruitment efforts and boosting motivation.
Commenting on the fight against corruption in the area of personnel reserving, the expert noted that this problem should be solved not by destroying businesses, but by creating the possibility of reserving at least 15% of key personnel. According to his calculations, this would reduce the demand for corruption, contribute to bringing salaries out of the shadows, and could bring the economy approximately 250 billion UAH.
“The military and the economy are not competitors, but two components of national security. Without a strong economy, there will be no resources for a strong military. Therefore, Ukraine needs a comprehensive human capital management strategy that will ensure defense capability, preserve businesses, and enable the country to withstand a protracted war,” Dligach concluded.
As previously reported, on October 23, the Cabinet of Ministers completed the implementation of changes to the reservation system, decoupling the criticality of enterprises from economic indicators and updating sectoral and regional criteria. The government also lowered the maximum reservation rate for the energy and defense industries from 100% to 95%, with the option to submit a substantiated request to a special Coordination Center if an increase in the quota is necessary, and announced a mechanism for 100-percent reserving, provided that the mobilization obligation regarding the regular voluntary enlistment of employees into military service is fulfilled.
The government has also established a Coordination Center for organizing the reserving of conscripts during periods of mobilization and martial law, in accordance with Resolution No. 1328 of October 23. The Deputy Minister of Economy and Environment and the Deputy Minister of Defense have been appointed co-chairs of the Coordination Center, and the center’s main tasks include reviewing proposals from government agencies regarding the determination of the criticality of enterprises, increasing the volume of reservations, and providing recommendations on the revocation of relevant decisions within one month or within seven business days in cases requiring urgent consideration.
Prime Minister Serhiy Koretskyi explained that the changes are necessary due to the high rate at which deferrals are being granted and the need to prevent abuse, where companies are artificially created for mass reservations without actually participating in the fulfillment of critical tasks.
The Federation of Employers’ Unions (FEU) and the Union of Industrialists and Entrepreneurs (UIE) put forward a number of proposals regarding the resolution. In particular, the FEU proposed establishing a two-month transition period in the event the “criticality” criterion is abolished, extending the validity of current decisions set to expire in November–December, and removing the limited list of industries to ensure equal access for businesses. For its part, the SUP called for retaining the current criticality criterion until its expiration for enterprises that meet the requirements, shortening the document review periods, clarifying the concept of “involvement in production processes” for employees in the defense industry and the energy sector, and ensuring that the liability of managers for violations of military registration is proportionate.
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