Legislative Review

May 27-31, 2024. Protection of Ukrainian manufacturers against unfair competition during public procurement has been strengthened

The Cabinet of Ministers of Ukraine by Resolution No. 618 of May 30, 2024, amended Government Resolutions No. 214 of March 28, 2018 and No. 280 of April 18, 2018, which regulated certain issues of providing monetary compensation for the purchase of housing.

We are talking about veterans with disabilities of groups I-II from among the participants of hostilities on the territory of other states, family members of the dead (deceased) of such persons and internally displaced persons who defended the independence, sovereignty and territorial integrity of Ukraine.

The adopted changes will make it possible to ensure the effective and targeted use of state funds in the conditions of martial law and the implementation of the principle of social justice in relation to those persons who really need housing.

In particular, it was decided:

  • administrators of the subvention for the payment of monetary compensation according to local budgets will be determined by the decisions of the relevant local council, the relevant military-civilian administration in accordance with the legislation;
  • for the timely payment of monetary compensation, establish a period during which the local administrator will ensure the payment of monetary compensation to its recipients - 30 calendar days after the receipt of state funds to the accounts of local budgets;
  • distribute the subvention for the payment of monetary compensation, taking into account the mandatory payment of monetary compensation in full for each recipient to whom the distribution is made;
  • determine the right to assign monetary compensation to applicants of the specified category, who were taken into the apartment register as of June 1, 2024;
  • provide for the recalculation of the amount of the assigned monetary compensation once a year, taking into account the mediated cost of housing construction by region of Ukraine, determined by the Ministry of Infrastructure as of January 1 of the current year, which has a direct impact on ensuring payment in full;
  • regulate the legal basis for providing monetary compensation to recipients who have been served with suspicion in connection with their commission of a crime against Ukraine, namely, the postponement of the payment of monetary compensation until receiving the relevant verdict;
  • provide for the possibility of taking actions to obtain consent for the transfer of monetary compensation funds from a special account as payment under the contract and purchase of housing through an authorized person.

The Cabinet of Ministers of Ukraine approved the decision to extend the provisions on the imposition of special obligations on electricity market participants, according to which a single fixed price for individual and collective household consumers is set at the level of UAH 4.32/kWh until April 30, 2025.

In addition, during the heating period (from October 1, 2024 to April 30, 2025), a preferential tariff is provided for consumers who use electric heating installations at the level of UAH 2.64/kWh (when they consume up to 2000 kWh of electricity per month during this period).

While "night rate" (with the installation of a corresponding two-zone meter) will be UAH 2.16 per kWh.

The Cabinet of Ministers of Ukraine has adopted a decision on mandatory exams for acquiring Ukrainian citizenship. From now on, people who want to obtain Ukrainian citizenship must pass exams on the basics of the Constitution of Ukraine and the history of Ukraine. This decision was adopted by the Government and concerns:

  • foreigners;
  • stateless persons;
  • those who have acquired citizenship, but have the right to take the exam within two years (this is due to postponement due to military service under contract, outstanding services to Ukraine, etc.).

Exams requires the further adoption and implementation of a number of orders and regulations, organizational measures, so far only a decision in principle has been adopted.

To register, you need to create an electronic account and submit an application in electronic form, a detailed algorithm will be published later.

  • 20 tasks on the basics of the Constitution of Ukraine;
  • 25 tasks on the history of Ukraine.

To ensure transparency, the exam will be recorded on video.

In case of successful completion, participants will receive appropriate certificates.

The Cabinet of Ministers of Ukraine, by Order No. 464 of May 24, 2024 "On Conducting Audit of the Risk Monitoring System and Criteria for Blocking Tax Invoices and Procedures and Criteria for their Unblocking", determined how the audit of the system will take place.
The audit will be conducted by the Ministry of Finance together with the State Audit Service and the State Tax Service. It will refer to the risk monitoring system and criteria for blocking tax invoices and the procedures and criteria for their unblocking.

The performance of the functions related to stopping the registration of TI/AC will be checked by:

  • the State Tax Service itself,
  • relevant commissions in its composition.

All this will last for six months, and then within two months after the end of the audit, the working group of the central executive authorities entrusted with the audit will have to report the results to the Cabinet of Ministers of Ukraine.

If the audit begins immediately (perhaps it is already underway), the Government will have the results at the end of January 2025.

In the order of the CMU No. 464-р, it is stated that the State Tax Service will be checked in relation to the performance of the following functions:

  • on the implementation of the mechanism of stopping registration of TI/AC;
  • activities of commissions on issues of suspension of registration of TI/AC, determined by the procedures approved by Resolution of the CMU No. 1165.

The Verkhovna Rada of Ukraine has adopted a draft law on expanding the capabilities of the e-court. The rule on electronic court, which allows any person to participate in a court session via video conference, has been in effect in Ukraine since 2017. However, in accordance with the current legislation, an appropriate decision must be drawn up for this by the entire composition of the court. draft law No. 11133, which the Verkhovna Rada supported in the first reading, eliminates this obstacle and introduces the rule that a decision from a single judge is sufficient.

This approach will contribute to the fact that a greater number of people will participate in the electronic court in the mode of video conference, and the sessions themselves will be held more often and faster. Accordingly, we will receive an acceleration of consideration of all cases in Ukraine. Also, the adopted law will generally contribute to the development of the domestic judicial system.

Expanding the capabilities of the electronic court takes on special importance in the conditions of the full-scale invasion of the Russian Federation into Ukraine.

The Cabinet of Ministers of Ukraine has made changes to the Procedure for confirming the degree of localization of production of goods in order to protect Ukrainian manufacturers from unfair competition during public procurement. The relevant Resolution was approved at the Government meeting on May 24, 2024.

The Government started implementing the "Made in Ukraine" local business support program. It contains many components - grants, available loans and other mechanisms for stimulating demand for Ukrainian goods. One of such incentive tools is the requirement for degrees of localization of the production of certain goods and services during public procurement. This year, the indicator of the local component in the specific weight of the cost price of goods, their components, services and works to which localization must be applied is 20%.

In order to protect conscientious Ukrainian manufacturers from unfair competition during public procurement, the Government has introduced requirements regarding their possession of additional documents confirming the degree of localization, such as a certificate. Also, the responsibility of manufacturers in case of non-compliance with the requirements of the documents provided by them has been increased. This should strengthen the protection of Ukrainian manufacturers, who create new jobs, pay taxes and contribute to the recovery of the Ukrainian economy," stressed the Deputy Minister of Economy of Ukraine, Nadiia Bigun.

The Resolution granted the commission for consideration of the issues of the electronic procurement system with the authority to consider complaints regarding the non-compliance of the submitted documents with the established requirements.

The Cabinet of Ministers of Ukraine has adopted the draft resolution of the Cabinet of Ministers of Ukraine "On Amendments to the Procedures Approved by Resolutions of the Cabinet of Ministers of Ukraine No. 302 of March 25, 2015 and No. 869 of November 30, 2016." These changes will allow citizens of Ukraine who have received a passport of a citizen of Ukraine with an implanted contactless electronic carrier to receive electronic trust services.

With the adoption of the Law of Ukraine "On Electronic Communications" there was a need to bring into compliance with the legislation the Procedure for preparing, issuing, exchanging, sending, withdrawing, returning to the state, invalidating and destroying the passport of a citizen of Ukraine, approved by Resolution of the Cabinet of Ministers of Ukraine No. 302 of March 25, 2015, as well as the Procedure for entering the means of a qualified electronic signature into the contactless electronic medium contained in the passport of a citizen of Ukraine, and providing qualified electronic trust services using the passport of a citizen of Ukraine with an implanted contactless electronic medium, approved by Resolution of the Cabinet of Ministers of Ukraine No. 869 of November 30, 2016.

The draft resolution proposed to provide an opportunity for persons who have reached the age of 14 (in the previous edition – 18) and receive a passport of a citizen of Ukraine with an implanted contactless electronic medium, to receive electronic trust services using this passport.

Also, the mentioned draft resolution proposes to bring the terminology of the procedures approved by Resolutions of the Cabinet of Ministers of Ukraine No. 302 of March 25, 2015 and No. 869 of November 30, 2016, into compliance with the requirements of regulatory acts in the field of electronic trust services.

The implementation of the provisions of the resolution adopted by the Government will not require financial costs from the state budget.

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