Business news from Ukraine

Entrepreneurs, lawyers and the Ministry of Defense oppose approval of draft law #8087 without revision

The Ukrainian League of Industrialists and Entrepreneurs supports sending the draft law No. 8087 “On Amendments to Certain Laws of Ukraine on Urgent Measures to Strengthen the Capabilities of Cyber Defense of State Information Resources and Critical Information Infrastructure”, which expands the powers of the State Service for Special Communications and Information Protection and obliges private companies to have a cybersecurity officer, for a second reading.
This was stated by Anatoliy Kinakh, President of the Ukrainian Union of Industrialists and Entrepreneurs, at a public discussion of the draft law held at the USPP.
“I would very much ask that following the results of our discussion, the proposal that has absolute support in the context of returning the draft law No. 8087 for a repeated second reading for significant revision be taken into account,” Kinakh said.
He emphasized that the shortcomings in the text of the draft law do not meet European standards, especially with regard to state control in this area, the inadmissibility of monopolization of such control functions, which entails, among other things, corruption risks.
“I am confident that today we have a list of suggestions and comments compiled at a serious professional and state level. I hope that today’s hearings will also be taken into account during the regulatory procedures in the Verkhovna Rada during further consideration of the draft law,” added Kinakh.
During the discussion, experts and management of the ULIE, in particular, Vice President Ivan Petukhov, expert Igor Dyadyura and member of the Kyiv Regional Bar Council Oleg Chornobay criticized the overly broad scope of the law, unlike European counterparts that affect only medium-sized businesses.
Draft law No. 8087 also applies to any actions related to the storage of personal data or other information with limited access in digital form, and thus, according to Chornobay, even an individual lawyer who maintains a client database and stores information subject to attorney-client privilege must hire a cybersecurity specialist (officer).
“There is a beautiful title to the draft law, but when we look at the specifics, we see that it introduces changes that affect not only state information resources and not only critical infrastructure facilities, but also the private sector. Thus, the purpose of the draft law is one, but its implementation is completely different,” added Chornobay.
Petukhov noted that even a small business that maintains a database of employees or customers may also be subject to the law and incur additional costs.
According to him, the rights of businesses to appeal against unlawful orders of government agencies are also being violated. If now they do not have to comply with it, if there is an administrative appeal of the decision, then according to the draft law No. 8087, this order must be fulfilled, and then, after the fact, it can be appealed.
Vitaliy Deynega, Deputy Minister of Defense of Ukraine for Digital Development, Digital Transformation and Digitalization, also criticized the bill.
“This law may prevent us from digitizing the army and deploying digital infrastructure in the context of hostilities,” he emphasized.
Deynega noted that the Ministry should retain its independence in determining the conditions and criteria for the supply of goods, works and services for the functioning of the armed forces’ information and communication systems.
As the agency reported, draft law No. 8087 was developed by a group of MPs led by Oleksandr Fediyenko.
On January 12, it was adopted in the first reading, and the relevant committee on national security, defense and intelligence recommends its approval in the second reading.

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President signs law on resumption of big privatization in Ukraine

Ukrainian President Volodymyr Zelensky signed law No. 8250, which will allow the State Property Fund (SPF) to resume big privatization and make state property management more efficient by improving the SPF structure.
“The law on the updated structure of the State Property Fund has been signed by the president. The document will improve the organizational structure of the fund: 12 regional branches of separate legal entities will become structural divisions of the SPF. This will create a mechanism for the establishment of market salaries and CRI in all regions and will increase the efficiency of state property management, “- wrote the head of the SPF Rustem Umerov in Facebook on Tuesday.
He recalled that the document also contains provisions for the resumption of large-scale privatization, improving the procedure for managing the sanctioned property, increasing the lease term of state property up to five years.
According to the norms of the law, by the decision of the VAKS, the sub-sanctioned property will be transferred directly to the SPF and the proceeds from the sale will be sent to the Fund for Liquidation of Consequences of Armed Aggression.
Umerov thanked the president, the government and MPs for supporting this important initiative.
Earlier, it was reported that after the mentioned law enters into force, the SPF will independently make managerial decisions on the unsanctioned property: privatization, sale, lease or management.
The law bans unsanctioned individuals and citizens of aggressor countries from holding positions as heads of state-owned companies and members of supervisory boards, and cancels the procedure for obtaining approval from local authorities for directors of state-owned companies that are managed by the SPF.
After the enactment of the law the department expects the increase of income from renting state property by 20-25%, or 100 million UAH per year, as well as the improvement of leased property.
On 30 May, the Rada supported the bill #8250 by 231 votes of people’s deputies with the required minimum of 226 votes.

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Venice Commission recommends reviewing number of provisions of Ukrainian law “On National Minorities

The Venice Commission recommends revising or clarifying a number of provisions of the law “On National Minorities (Communities)”, in particular removing the obligation to translate information about public events into Ukrainian or at least revising it based on the principle of proportionality.
“From the text of the conclusion: the Venice Commission “appreciates the desire of the Ukrainian authorities to take into account international and European standards for minority protection, as well as – albeit to a limited extent – some of the criticisms expressed by the Commission in previous conclusions.” – The press service of the Deputy Prime Minister for European and Euro-Atlantic Integration Olga Stefanishina said in a statement.
It is noted that at the same time, the Venice Commission recommends revising or clarifying a number of provisions of the law “On national minorities (communities)”.
In particular, it is recommended: to extend the right to organize events in minority languages to all persons; to remove the obligation to provide translation of information on public events into Ukrainian or at least revise it in light of the principle of proportionality; to review the obligations related to publishing books in minority languages and bookstores; to provide greater legal certainty regarding the possibility to translate official inscriptions and general information into the minority language.
In addition, it is recommended to provide in the law criteria for the adoption of a methodology to ensure the use of minority languages in contacts with administrative authorities in accordance with the norms of the Framework Convention for the Protection of National Minorities and Ukraine’s obligations under the European Charter for Regional Languages.

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Kiev authorities initiate need to improve law on construction of shelters in new buildings

Kyiv authorities are initiating appeals on the need to improve the legislation in terms of the requirement of compulsory equipping new housing with shelters, the press service of Kyiv City State Administration said.
“Today, developers, unfortunately, bypass the existing requirements of compulsory installation of shelters in houses. The reason is in the gaps of the current legislation, which requires providing for shelters in the construction project or the possibility to use the shelter nearby. Well, the “or” should not be! We can see what it has led to: there are practically no new buildings in the fund of protective constructions”, – deputy head of Kyiv City State Administration Petr Panteleev is quoted in the press release.
In addition, he notes that the SES and local self-government are also removed from the process of taking the houses into use.
According to the KSCA, from 4.2 thousand shelters tested in the capital 2.9 thousand are suitable for use, another 736 can be shelters, provided they are properly equipped. 578 facilities do not meet the regulatory requirements for the premises where shelters can be equipped.
As reported, the law “On Amendments to Certain Legislative Acts of Ukraine on ensuring civil protection requirements during the planning and development of territories,” which, in particular, provides for mandatory placement of bomb shelters in new buildings, was signed by the president in August 2022.

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Ukrainian President introduces draft law on sanctions against Iran to Rada

Ukrainian President Volodymyr Zelensky has submitted a draft law on the application of sectoral special economic and other restrictive measures (sanctions) to the Islamic Republic of Iran to the Verkhovna Rada on May 27, 2023.
The card of the project number 9333 appeared on the website of the Parliament.
“In accordance with Article 93 of the Constitution of Ukraine and part two of Article 5 of the Law of Ukraine “On Sanctions” I am submitting for consideration of the Verkhovna Rada of Ukraine a draft resolution of the Verkhovna Rada of Ukraine “On Approval of the decision of the National Security and Defense Council of Ukraine dated May 27, 2023 “On the application of sectoral special economic and other restrictive measures (sanctions) to the Islamic Republic of Iran”, – said in the text of the document.
According to the addendum to the draft, it is proposed to apply sanctions against Iran for 50 years. The restrictive measures include a complete ban on trade with Iran, stopping the transit of resources, flights and shipments by Iran through Ukraine as well as preventing Iranian residents from taking capital out of Ukraine.
In addition, it is proposed to prohibit the transfer of technology and intellectual property rights to residents of Iran and to prohibit investments in the Islamic Republic of Iran.

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monobank and other banks to return seizures of customer funds because of new law

Virtual monobank, as well as other banks, will return arrests temporarily removed after the start of the war on the funds in the accounts of some customers in connection with the entry into force of the law “On amendments to some laws of Ukraine on certain specific features of the organization of compulsory execution of court decisions and decisions of other bodies during martial law”.
“Since the law came into force, we have to return the arrests that were removed during martial law. This will affect ~436 thousand of our clients,” said the co-founder of the bank Oleg Gorokhovsky.
He specified that this law cancels the action of the Cabinet of Ministers, which removed the arrests of the executive service in the amount of less than 100 thousand UAH during martial law.
“The new law allows customers with arrests to use the amount of two minimum wages (13.4 thousand UAH) on the condition that the client applied to the executor and the latter, in turn, sent us a resolution to remove the arrest in the amount of 13.4 thousand UAH on one of the accounts of the client,” – said Gorokhovsky.
According to him, nothing can be done about it, and all banks will comply with this norm.
At the beginning of March this year, Gorokhovsky said that the number of bank customers exceeded 7 million last week.

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