On May 21, the Government supported the next changes developed by the Ministry of Economy. This is the draft law “On Amendments to Certain Legislative Acts of Ukraine on Simplifying the Conditions for Conducting Economic Activities”, which deals with the abolition of 63 duplicative and irrelevant state regulatory requirements for business.
The Ministry of Economy explained that the document also proposes to abolish administrative liability for violations of norms that have already lost force.
“We continue deregulation – we are consistently reducing administrative pressure on business. This time we propose to abolish more than 60 outdated instruments that do not bring real benefits. This will allow business to save about UAH 400 million,” said Yulia Svyrydenko, First Deputy Prime Minister – Minister of Economy.
It is reported that this package was formed on the basis of proposals from ministries, businesses and experts; specialized organizations and think tanks were involved in the work.
What is proposed to be abolished:
23 instruments – in the field of agro-industrial complex, forestry and hunting, fishing, wildlife protection;
18 – in the field of water and air protection;
8 – energy, alternative fuels, construction, explosives;
12 – foreign economic activity, investments, innovations, culture, education;
2 – healthcare.
Specific examples of outdated norms and how much business will save:
Approval of the boundaries of sanitary protection zones of water bodies is an unnecessary bureaucratic requirement that does not affect the real protection of water resources.
Expected savings for business: UAH 15.5 million.
Permission for the construction of land reclamation systems – hinders the development of agricultural infrastructure.
Savings: UAH 62.9 million.
Approval of special permits for the use of subsoil for groundwater with the State Labor Service – duplicates existing procedures.
Savings: UAH 15.4 million.
Certificate for storage of explosive materials – duplicates existing permitting procedures, does not increase safety, but creates unnecessary administrative burden.
Savings: UAH 30.4 million.
Certificate of state registration of a technological park – significant costs without real effect.
Savings: UAH 105.2 million.
License for providing extracurricular education – limits access to services and creates costs for institutions.
Savings: UAH 13.6 million.
Certificate of national film – a formal requirement without a significant impact on the development of the industry.
Savings: UAH 0.3 million.
Permit to engage in traditional medicine (healing) – an ineffective tool due to the lack of standards; more effective – personal liability for damage.
Savings: UAH 0.1 million.
Mandatory grain storage insurance is an unnecessary obligation that should be made voluntary.
Savings: UAH 0.3 million.
For reference: the deregulation reform started in January 2023. Then the Government created an Interdepartmental Working Group on Deregulation under the leadership of the First Deputy Prime Minister – Minister of Economy Yulia Svyrydenko and the Deputy Prime Minister – Minister of Digital Transformation Mykhailo Fedorov.
The CWG includes representatives of the Ministries of Economy, Digital Transformation, Environment, Justice, Finance, and the State Regulatory Service. Experts from BRDO, the Center for Economic Recovery, the Center for Economic Strategy, EasyBusiness, as well as the team of the EU4Business: SME Policies and Institutions Support (SMEPIS) project with the support of the European Union also participate in the work.
To date, the CWG has reviewed 1,323 state regulatory instruments. 456 of them are recommended for cancellation, 352 have already been canceled.
