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On October 29, 2022, the law "On Amendments to the Law of Ukraine "On the State Budget of Ukraine for 2022" of October 18, 2022, № 2675-IX entered into force. In particular, it provides for an increase of budget assignments to certain main administrators of the State Budget - subjects of the national security and defense sector by 386.9 billion UAH. Additionally, the Law provides that as an exception to the provisions of part twelve of article 23 and parts one and two of article 57 of the Budget Code of Ukraine the balances of some subventions from the State Budget to local budgets granted from the State Budget in 2020-2021, which at the end of 2022 are kept on the accounts of respective local budgets, may be used for the relevant expenditures in 2023 taking into account their intended purpose.
On October 25, the text of the law "On Amendments to the Law of Ukraine "On Compulsory State Social Insurance" and the Law of Ukraine "On Compulsory State Pension Insurance" № 2620-IX dated September 21, 2022, was officially published. It shall enter into force on 1 January 2023 and provides for a new version of the Law of Ukraine "On Compulsory State Social Insurance" and amends the Law of Ukraine "On Compulsory State Pension Insurance". The Law of Ukraine transfers the management of the system of compulsory state social insurance in connection with temporary disability and accidents from the Social Insurance Fund of Ukraine to the Pension Fund of Ukraine.
On 28 October 2022, the CabMin adopted Resolution №1220 "On Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine on Issuance of Identity Documents and Proof of Citizenship of Ukraine". Under martial law, it simplifies the procedure for the issuance of passport documents. In particular, it provides for the possibility:
- to prepare a passport of a citizen of Ukraine for a child to travel abroad on the basis of an application of only one parent.
- to form an e-passport of a citizen of Ukraine, an e-passport of a citizen of Ukraine for traveling abroad to persons who could not obtain the issued document due to temporary occupation of the territory of Ukraine or active military actions.
- to complete the procedure of document execution by another territorial division of the State Migration Service.
- transfer of the prepared documents for their issuance from one territorial unit of the SMS to another within Ukraine and abroad.
- receipt of the issued passport of the child by another person to be determined by the parents or other legal representatives.
The Resolution also broadens the range of witnesses participating in the procedure of identification during the passport obtaining after the age of 18 and provides the opportunity to conduct it via videoconferencing (if family members are not able to be present in person). The Resolution shall enter into force 15 days after its publication.
On 21 October 2022 CabMin’s Resolution №1205 "On Amendments to Cabinet of Ministers Resolution № 733 of 27 September 2017" updated the "Regulations on the organization of notification of the threat or emergence of emergency situations and communications in the field of civil protection". In particular, it provides for the establishment and operation of local notification systems. Enterprises, institutions, and organizations (regardless of their form of ownership), owners and users of facilities with many people are prohibited without the approval of the relevant local executive authority (local self-government body): to switch off channels and lines of electronic communication networks involved in the notification systems; to dismantle technical notification and information facilities (including radio broadcasting points).
Operational and technical maintenance of automated notification systems, as well as the implementation of organizational and technical measures to prevent their unauthorized activation, shall be organized by the relevant executive authority or local self-government body about the nationwide, territorial, and local automated notification systems. The heads of local self-government bodies, enterprises (institutions, organizations) where the software and hardware of automated notification systems, technical means of notification and information, and technical means of electronic communications are installed shall ensure their preservation and use for their intended purpose. Decommissioning of the existing automated notification system shall be carried out by decision of the relevant local government authority, enterprise (institution, organization) only after commissioning of the new automated notification system.
On 21 October 2022, Resolution of the CabMin №1203 "Certain Issues of Activities of Regional Development Agencies" set out in a new wording the "Model Provisions on Regional Development Agencies" approved by Resolution of the Cabinet of Ministers of Ukraine № 258 of 11 February 2016. The Standard Provision defines the legal and organizational basis for the activities of regional development agencies established in accordance with the Law of Ukraine "On the Fundamentals of State Regional Policy" of 5 February 2015 № 156-VIII, which are non-profit institutions formed to effectively implement state regional policy in the region. Agencies are not budgetary institutions. Agencies can now be established by regional, Kyiv, and Sevastopol city councils and respective state administrations, regional branches of all-Ukrainian associations of local self-governments (with the membership of all territorial communities of the respective region in such an association). The co-founders of the Agency can be rural, town, city, district councils, regional branches of all-Ukrainian associations of local self-government bodies, or associations of local self-government bodies of the region.
The agencies have the right to participate:
- in drafting and ensuring implementation of the regional development strategy and the plan of measures for its implementation, monitoring and evaluation of their implementation.
- in drafting the regional recovery and development plan, plans for recovery and development of municipalities.
- in preparing, submitting for competitive selection and implementation of regional development projects.
- provide advice and methodological assistance to local authorities in drafting strategies for the development of municipalities, regional development projects.
On 21 October 2022, the Cabinet of Ministers of Ukraine adopted Resolution № 1202 “Certain Issues of Implementation of Legislation in the Field of Migration under Martial Law”. It allows foreigners and stateless persons (except Russian citizens) to enter and legally stay in Ukraine based on temporary or permanent residence permits, which expired or are subject to exchange after February 24, 2022. This provision will be in force during martial law and for 30 days after its termination or cancellation.
The Resolution also provides that during martial law, passports of citizens of Ukraine in the form of a card, which expired during the war, and passports of citizens of Ukraine of the 1994 sample, which do not have photographs pasted in at the age of 25 or 45 (if the date of pasting the photo during martial law) will be valid documents for proving identity and citizenship of Ukraine. The aforementioned documents will be subject to compulsory exchange within 30 days after the termination or cancellation of martial law in Ukraine.
On October 21 the Cabinet of Ministers of Ukraine approved a new wording of "Procedures for holding public hearings on draft town planning documentation at the local level" by its Resolution № 1196 "On Amendments to Resolution of the Cabinet of Ministers of Ukraine as of May 25, 2011 No. 555". It provides for the procedure of public hearings prior to the approval of the following town planning documentation: comprehensive plans for the spatial development of the territories of municipalities, general plans of settlements, as well as detailed plans of territories within and outside settlements.
Resolution of the Cabinet of Ministers of Ukraine №1193 of 21 October 2022 "On Amendments to Resolution of the Cabinet of Ministers of Ukraine № 413 of 20 August 2014" updated the procedure for granting and withdrawing the status of combat veteran for persons who directly participated in activities necessary for the defense of Ukraine, protection of public security and state interests in connection with the military aggression of the Russian Federation against Ukraine. The amendments will allow this category of persons to enjoy the benefits and guarantees provided, in particular, by the Law of Ukraine № 3551-XII of October 22, 1993 “On the Status of War Veterans, Guarantees of their Social Protection”.
21 October Cabinet of Ministers Decree № 931-r on amendment of point 2 of Cabinet of Ministers Decree № 1171 of 23 September 2020. From 1 January 2023, the annual interest rate on outstanding loans for thermo-modernization projects for administrative buildings, schools, and hospitals (which are implemented with European Investment Bank funds for the implementation of the Energy Efficiency of Public Buildings in Ukraine project) will now be reduced to 0.25% per annum.
On October 31, 2022, the National Agency on Corruption Prevention (hereinafter - the NACP) approved a new version of "Guidelines on the application of certain provisions of the Law of Ukraine "On Prevention of Corruption" regarding the prevention and settlement of conflict of interest, compliance with corruption prevention restrictions". The updated Guidelines set forth the legal positions of the NACP regarding the following situations:
- whether there is no conflict of interests of the deputies of the local councils when considering the issue of determining the amount of local taxes and fees? (p.14.1.2. p.14.1. of chapter 14).
- Do the deputies of local councils working on a permanent basis violate anti-corruption legislation during the voting for the decision to approve the local budget? (p. 14.1.2. p. 14.1 of chapter 14).
- Do heads of educational institutions who work at the same institutions on a part-time basis have a conflict of interest? (p. 14.1.4, p.14.1 of chapter 14).
- can the official set allowances and bonuses for himself/herself, and how can he/she prevent a conflict of interest in the exercise of pay authority? (p. 14.1.6. of para.14.1 of chapter 14).
- When does a manager who has close relatives working under his authority have a conflict of interest? (p. 2.2.1 of para.2.1 of chapter 2).
- When an official has a conflict of interest when he/she takes a decision regarding his/her manager (p. 2.2.1 of para. 2.1 of chapter 2).
- How to handle conflict of interest when close relatives work together (p. 14.1.1. of para 14.1 of chapter 14), with local council members (p. 14.1.2 of para. 14.1 of chapter 14), heads of cities, villages and settlements (p. 14.1.3 of para. 14. 1 of chapter 14); due to overlapping (part-time work) and holding corporate rights (p. 14.1.4 of para 14.1 of chapter 14) through out-of-office relations (p 14.1.5 of para 14.1 of chapter 14).
In addition, the position of the NAPC on the participation of officials in events related to their official activities (conferences, seminars, public hearings, etc.) and their receipt of funds from the event organizer (per diem, travel, meals, accommodation) was updated (Example 4 of item 14.3 of Chapter 14).
On October 27, 2022, the State Property Fund of Ukraine promulgated the "Instruction on the procedure for signing documents with a qualified electronic signature". This Instruction determines the procedure for landlords regarding signing (ensuring signing) with a qualified electronic signature of the following documents:
- lease agreement concluded (continued) as a result of electronic auction.
- lease agreement concluded (continued) without auction.
- lease agreements set forth in new version due to their compliance with minimum lease term stipulated by the Law of Ukraine "On Lease of State and Municipal Property».
- agreements on amendments to a lease agreement.
- acceptance certificate for a lease object.
By the Order of the Ministry of Reintegration of the Temporarily Occupied Territories of Ukraine № 233 dated October 17, 2022 "On Amendments to the Order of the Ministry of Reintegration of the Temporarily Occupied Territories of Ukraine No. 75 dated April 25, 2022" the list of municipalities located in military actions or temporarily occupied, surrounded (blocked) was updated. Now this list includes 326 municipalities from nine regions of Ukraine, in particular, 10 from the Dnipropetrovsk region, 66 from the Donetsk region, 59 from the Zaporizhzhya region, 37 from the Luhansk region, 26 from the Mykolaiv region, 20 from the Sumy region, 56 from the Kharkiv region, 48 from the Kherson region and 4 from the Chernihiv region. We would like to remind you that all internally displaced persons from these municipalities are entitled to cash assistance from the state.
On 28 October 2022 the Pension Fund of Ukraine issued a clarification regarding the question of whether the time spent caring for a small child count towards women's pensionable service. The insurance experience for pension calculation includes those periods during which a person was subject to mandatory state pension insurance, and for which, since January 1, 2004 (from the date of entry into force of the Law of Ukraine of 09.07.2003, № 1058-IV "On Compulsory State Pension Insurance"), monthly paid insurance premiums. Until January 1, 2004, the time of taking care of a child under the age of three years was counted as contributory service for a mother who was not in an employment relationship at the time of the child's birth (based on a child's birth certificate). Thus, from 1 January 2004 to 31 December 2004 - such a period shall be counted as contributory service (on the basis of a document evidencing the fact of receipt of a childcare benefit until the child turns three, e.g. a certificate of the social security administration, which paid assistance to a woman). As of 01 January 2005, such a period is included in the length of service of a mother, if she received the respective allowance according to the data of personified registration system. Regardless of whether a woman worked before she took maternity leave to care for a child under three years of age or not, this period is counted as her insurance length of service, because insurance contributions are calculated and paid for her from the state budget.
On October 25, 2022, a clarification of the National Civil Service Agency of Ukraine (hereinafter - NCSA) № 161 r/z on peculiarities of appointment of persons to positions in local self-government bodies during martial law was published. Analyzing the norms of the Law of Ukraine "On the legal regime of martial law", NCSA concludes that during martial law persons are appointed to positions in local self-government bodies by village, settlement, city head, chairman of the rayon, the city district, oblast council without a competitive selection. A person willing to work in the local self-government body should submit to such a body an application, a completed personal card of the established form, as well as documents confirming his/her citizenship of Ukraine, education, and work experience in accordance with the requirements of the legislation established for the respective positions.
On 24 October 2022, the Ministry of Education and Science of Ukraine published letter № 1/12502-22 on the expulsion of children from preschool education institutions in conditions of war. It is noted that the expulsion of children from preschool institutions is possible only under subparagraphs 1-4 of paragraph 13 of the Regulation on the establishment of pre-school education, approved by the Cabinet of Ministers of Ukraine of 12 March 2003, № 305 (as amended by the Cabinet of Ministers of Ukraine on January 27, 2021, № 86), that is, on the following grounds:
- at the request of one of the parents or other legal representative of the child who submitted the application for enrolment (except when the child's place of residence is determined with the other parent by decision of the tutorship and guardianship authority or court);
- on the basis of a medical opinion about the child's health condition, which excludes the child from a further stay in a preschool educational institution of the respective type;
- in the event that the pupil, as of September 1, reaches full seven years (for children with special educational needs);
- the child has been transferred to another preschool establishment.
The Ministry of Education and Science warns pre-school education institution heads (directors) against dismissing children from an educational institution without grounds.
On 21 October 2022, the Ministry of Education and Science of Ukraine published Letter № 1/12392-22 "On attestation and professional development of teachers in pre-school education institutions during martial law in Ukraine". In this letter, the MES recommends completing in the academic year 2022/2023 the attestation of teachers, whose activity was studied until February 24, 2022, but the attestation was postponed for one year. In the case of suspension, the teacher's attestation shall not be carried out. However, given the current situation in the region and the wish of the teacher with whom the employment contract has been suspended, the attestation is possible upon the decision of the attestation commission. This also applies to employees who have been declared idle.
As regards the professional development of teachers, the MES reminds us: every teacher is free to choose the form of training, the program, and the educational institutions. The Law of Ukraine "On Education" guarantees teachers a free choice of educational programs, forms of training, educational establishments, institutions and organizations, and other entities involved in educational activity, which carry out raising and retraining of teachers.
On 28 October 2022, the Ministry of Education and Science of Ukraine submitted for public discussion the draft order "On Approval of the Model Provision on the Organization of the Educational Process in Professional Higher Education Institutions". Comments and suggestions to the said draft are accepted in the form of a comparative table until November 29, 2022, by e-mail: shykova@mon.gov.ua. Contact person for consultations: Elena Shikova, tel. (044) 281-32-18.
On October 19, 2022, the Parliament of Ukraine adopted the Law of Ukraine "On Amendments to Certain Legislative Acts on Restoration of the System of Registration of Leasehold Rights for Agricultural Land and Improvement of the Land Protection Legislation" (Registration No. of the Draft Law 7636).
In particular, the Law of Ukraine:
- it resumes holding land auctions for transfer of state or municipally owned agricultural land plots for use;
- it resumes registration of leasehold rights for agricultural land plots in the State Register of Immovable Property Rights which was suspended due to the war;
- the right to locate biomethane production facilities within agricultural complexes on agricultural land plots without changing its designation is enshrined;
- it is no longer necessary to compensate for agricultural losses resulting from a change in the designation of agricultural land plots;
- the issue of entering information about qualitative characteristics of lands, measures for the protection of lands and soils, and limitations in the use of lands to the State Land Cadastre is regulated;
- states that citizens and legal entities who have obtained the right to permanent use of state or municipally owned land plots, but who cannot be subjects of such right in accordance with the Land Code of Ukraine, may acquire such land plots in installments or obtain them on the lease;
- allows under martial law the free privatization of land plots on which privately owned buildings and constructions are located as well as land plots transferred for use to individuals prior to entry into force of the Land Code of Ukraine
- the right of Ukrzaliznytsia to build on land plots that are in its permanent use, not only for its own but also for the funds raised is enshrined;
- Changes are made in the laws of Ukraine "On topographic and geodesic and cartographic activities", "On the regulation of urban development" on the establishment and operation of the cartographic and geodesic fund of Ukraine.
On 19 October 2022 the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On Amendments to the Law of Ukraine "On the State Budget of Ukraine for 2022" on the creation of the fund for liquidation of the consequences of armed aggression (reg. No. of the draft law 8027).
The Law provides for the establishment of the fund for liquidation of consequences of armed aggression in 2022 within the special fund of the state budget in order to liquidate consequences (including humanitarian, social, and economic ones) caused by the armed aggression of the Russian Federation against Ukraine.
The Law:
- defined the source of formation of the such fund - at the expense of funds received in connection with the implementation of the Law of Ukraine "On the Basic Principles of Compulsory Withdrawal of the Objects of Property Rights of the Russian Federation and its Residents in Ukraine";
- it is stipulated that decisions on the allocation of funds from such fund shall be made by the Cabinet of Ministers upon approval of the Budget Committee of the Parliament of Ukraine and the procedure for use of the fund shall be determined by the Cabinet of Ministers;
- provides for allocation of such fund's resources, in particular, for: construction, overhaul of public buildings (which were destroyed or damaged as a result of the armed aggression of the Russian Federation) and civil defence protective structures; construction, reconstruction, overhaul of critical infrastructure objects connected with provision of water, heat, electricity and gas supply services (which were destroyed or damaged as a result of the armed aggression of the Russian Federation); construction, reconstruction, overhaul of buildings to provide housing for internally displaced persons; purchase of medical equipment and facilities for health care institutions affected by military operations and/or in the temporarily occupied territory, provided there is suitable premises to accommodate such medical equipment and facilities; purchase of computer and multimedia equipment (which has been destroyed, damaged or stolen) for educational institutions located in territories affected by the armed aggression of the Russian Federation;
- monthly reporting on the receipt and use of such funds was introduced;
- related amendments have been introduced to Article 4 of the Law of Ukraine "On the Basic Principles of Compulsory Withdrawal of the Property Rights of the Russian Federation and its Residents in Ukraine;
- Provided the Cabinet of Ministers of Ukraine with the possibility to determine peculiarities of transferring funds for separate expenditures of local budgets from one local council to another under conditions of the state of war.
On October 18, 2022 the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on the Functioning of Local and Volunteer Fire Brigades" (registration number of the draft law 7557).
Previously, the functioning of fire and rescue units for local and volunteer fire protection was regulated exclusively by Articles 62, and 63 of the Civil Protection Code of Ukraine, which declared but did not clearly define the specific tasks, rights, and obligations of such units. The Law of Ukraine amended the Civil Protection Code of Ukraine, the Labour Code of Ukraine, the Law of Ukraine "On Vacations", and the Law of Ukraine "On Compulsory State Social Insurance" in terms of regulating the operation of fire and rescue units to provide voluntary and local fire protection. The new Law of Ukraine stipulates
- requirements for employees of local fire brigades and criteria for membership in a volunteer fire brigade;
- status (rights and duties) of employees of local fire protection units and members of voluntary fire brigades
- provision has been made for the possibility of the formation of volunteer fire-fighting units by public organizations;
- additional social guarantees and improved motivational conditions for membership of the voluntary fire brigade were provided.
On October 18, 2022, the Parliament of Ukraine adopted the Resolution "On Establishment of the Temporary Investigation Commission of the Parliament of Ukraine to Investigate possible facts of ineffective activity of the State Agency of Forest Resources of Ukraine, the State Agency of Water Resources of Ukraine and the State Environmental Inspection of Ukraine, their territorial bodies, enterprises, institutions and organizations within their management, whose activities could lead to a decrease in state and local budget revenues” № 2686-ІХ.
The purpose of the Temporary Investigation Commission is to exercise parliamentary control and ensure impartial and transparent verification and assessment of the financial and economic condition of enterprises, institutions, and organizations under the jurisdiction of the State Agency of Forest Resources of Ukraine, the State Agency of Water Resources of Ukraine, the State Environmental Inspection of Ukraine in their direct subordination.
On 21 October 2022, the Cabinet of Ministers of Ukraine approved the "Procedure of transfer to training at the expense of the state budget of certain categories of applicants for professional higher education, higher education, who were enrolled for training by 2021 inclusive in places financed at the expense of physical or legal persons". This category includes:
children of fallen defenders of Ukraine: children (persons from among them up to 23 years old) of fallen (deceased) persons specified in article 10-1 of the Law of Ukraine "About the status of war veterans, guarantees of their social protection" (category 1);
Combatants and persons disabled because of the war: persons recognized as combatants and persons disabled because of the war under the Act of Ukraine on the status of war veterans, guarantees of their social protection (category 2)
Children of the participants of military operations: children (persons among them under age 23) of the participants of military operations, disabled as a result of war in accordance with the Law of Ukraine "About the Status of War Veterans, Guarantees of Their Social Protection" (category 3);
Residents of especially dangerous territories: persons living in (or having moved from) the temporarily occupied territory of Ukraine by the Russian Federation under martial law, in municipalities located in military (combat) activities or under temporary occupation, encirclement (blockade) of municipalities, which as of October 15 and February 15 of the respective year are included in the list, which is formed by the Ministry of Reintegration (category 4).
On October 14, 2022 the Cabinet of Ministers of Ukraine adopted Resolution № 1172 "On Approval of the Procedure for Termination of Employment Contract in Case of Death of a Physical Person Employer or Entry into Force of the Court Decision on Recognition of a Physical Person as Missing or Declaring as Dead".
The procedure defines the algorithm of actions to be taken by an employee wishing to terminate the employment contract in such circumstances. It also determines the duties and powers of the employment centres when an employee applies for termination of the employment agreement and regulates specifics of cooperation with the employment centre, the Pension Fund of Ukraine and the State Tax Service of Ukraine.
In order to terminate the employment agreement a worker must submit to the nearest employment authority the following documents
- An application on termination of the employment contract stating information on the death of the employer
- Copies of documents confirming the employer's death or the relevant court decision (if any)
- Copies of proof of identity, the taxpayer's registration number or the passport of a Ukrainian citizen
- information on the employer;
- a copy of the employment contract or the order (instruction) on employment
- A copy of the work record book (if any).
The employment centre then notifies the Pension Fund of Ukraine and the State Tax Service of Ukraine of the termination of the employment contract. The date of termination of the employment contract is deemed to be the date of submission of the application. Within three working days, the Pension Fund of Ukraine shall enter this information into the register of insured persons of the State register of compulsory state social insurance. At the request of the employee, the Labour Office may make an entry in the employment record book on the termination of the employment contract.
On October 14, 2022, the Cabinet of Ministers of Ukraine adopted Resolution №1159 "On Approval of the Procedure for Development, Public Discussion, Approval and Amendments to Programmes of Comprehensive Rehabilitation of an Oblast, Territory of a Municipality (its Part)". This Procedure defines the requirements for the composition and content of the programmes of comprehensive rehabilitation of the region, the territory of the municipality (it's part), the mechanism of their development, public discussion, approval and amendments to them. The programme of a comprehensive restoration of the region, the territory of the municipality (it's part) determines the main spatial, urban planning and socio-economic priorities of the restoration policy and includes a set of measures to ensure the restoration of the territory of the respective region, the territory of the municipality (it's part), affected as a result of armed aggression against Ukraine, or where socio-economic, infrastructure, environmental or other crisis phenomena are concentrated.
On October 14, 2022, the Cabinet of Ministers of Ukraine adopted Decree № 902-r "On allocation of funds from the state budget reserve fund to cover expenses for June 2022 of institutions, enterprises, institutions and organisations of state and municipal ownership, educational institutions of private ownership". Thus, the Government allocated over UAH 43 million from the state budget reserve fund to compensate municipalities, which sheltered internally displaced persons at no cost in municipal and state-owned enterprises and private educational institutions for June.
On October 12, 2022 the Cabinet of Ministers of Ukraine adopted Resolution № 1178 "On Approval of Peculiarities of Public Procurement of Goods, Works and Services for Customers provided by the Law of Ukraine "On Public Procurement", for the duration of the legal regime of martial law in Ukraine and within 90 days from its termination or cancellation”.
Now it will be possible to conduct procurement in the Prozorro system using the new procedure. In this case, the scope of use of Prozorro Market catalogues is significantly expanded. According to the decree, an open bidding procedure with specific features appears in the Prozorro system. The procedure provides for shortening the time for full-fledged tenders in Prozorro, will allow customers to go through the procurement process faster than before.
In addition, the government has lifted a number of restrictions that affected the success of tenders. Among other things, a tender in Prozorro can be conducted with a bid from only one bidder (rather than at least two, as before), which should increase the number of successful procurements in the electronic system, while leaving the possibility for open competition in the bidding process.
In addition, the limit of a 10% unit price increase in case of market price fluctuations has been removed. This will make it possible not to terminate contracts in the event of a significant change in market price and not to hold new tenders.
The decree allows maximum use of the benefits of Prozorro Market. Restrictions on the maximum amount of purchases in catalogs are removed. Thus, purchasers will now be able to buy standard goods (fuel, electricity, food, medicines and medical products, etc.) almost unlimitedly on the basis of an electronic shop or request for quotations. Such a move will significantly reduce the administrative burden on purchasers.
In addition, the new decree introduces new thresholds for mandatory Prozorro procurement. For the purchase of goods and services it will be necessary to hold an open tender if the cost of procurement is equal to or exceeds UAH 100 thousand; for services for current repairs - UAH 200 thousand; for works - UAH 1.5 million.
The use of open procedures for a larger number of purchases will increase the transparency of tenders and competition at the auctions, and thus will help to more effectively spend the budget funds during martial law.
At the same time, the open bidding under the new procedure will provide an opportunity for suppliers to appeal against the terms and results of the tender to the Antimonopoly Committee of Ukraine. The appeal tool will stimulate fair competition even in such difficult times, as suppliers will be able to defend their rights.
At the same time, the decree takes into account the peculiarities and limitations of procurement during martial law. Several bases for direct contracts for vital and defense needs have been preserved: in this case, it will be enough to report about the concluded contract (from 50 thousand UAH) in the Prozorro system. In this case, sensitive information about the location of the customer and supplier may be hidden. Also, a ban on the procurement of goods and services with suppliers linked to Russia and Belarus has been approved.
Just to remind you, on 10 September Ukraine's Law on Amendments to the Law of Ukraine "On Public Procurement" and other legislative acts of Ukraine regarding the implementation of defense and public procurement during the martial law regime” № 2526-IX came into force, empowering the Cabinet of Ministers to establish the special features of public procurement during martial law and within 90 days after its termination.
On October 8, 2022, Cabinet of Ministers Resolution № 1139 "Some Issues of Subventions from the State Budget to Local Budgets to Implement Measures to Support the Territories Negatively Affected by the Armed Conflict in Eastern Ukraine" redistributed in 2022 subventions from the state budget to regional budgets of Dnipropetrovsk, Donetsk, Zaporizhia, Mykolaiv, Sumy, Kharkiv, Kherson and Chernihiv regions of Ukraine in the amount of UAH 562.5 million.
On October 8, 2022 Resolution of the Cabinet of Ministers of Ukraine № 1124 "On Amendments to the Annex to Decree of the Cabinet of Ministers of Ukraine № 528 as of May 3, 2022" approved the distribution of subventions from the state budget to all regional budgets in the amount of over UAH 7.444 billion to meet the immediate needs of state operation under martial law. Including UAH 5.849 billion for food products and packaging for their packaging, storage, and/or processing of grain; UAH 354 million for medicines, immunobiological medicines (vaccines), medical devices, their accessories, and medical equipment; UAH 1239 billion for construction materials for priority emergency repairs at facilities damaged because of hostilities.
On 18 October 2022 the State Regulatory Service of Ukraine issued its clarification on the peculiarities of the preparation of draft regulatory acts by the local self-government bodies, military civil administrations and military administrations and their officials under martial law in view of the Law of Ukraine from 12.05.2022 № 2259-IX "On amendments to some laws of Ukraine on the functioning of public service and local self-government during martial law". The State Regulatory Service of Ukraine points out that the local self-government and military administrations and their officials must carry out all procedures related to the preparation of draft and adoption of regulatory acts under Law of Ukraine "On the Principles of State Regulatory Policy in the Sphere of Economic Activity" № 1160-IV of September 11, 2003.
However, on May 20 2022 the Law of Ukraine "On Amendments to Certain Laws of Ukraine on the Functioning of the State Service and Local Self-Government during Martial Law" of May 12, 2022, № 2259-IX entered into force, which among other things states that "during martial law, the acts of local self-government, military-civil administrations and military administrations and their officials are not subject to requirements of ... the Law of Ukraine "On the Principles of State Regulatory Policy in the Sphere of Economic Activity”.
On October 7, 2022, the State Regulatory Service of Ukraine published its clarification on the amendments to the plans of activities for the preparation of draft regulatory acts, including the exclusion of draft regulatory acts from them. The State Regulatory Service of Ukraine notes that the preparation and review of a draft regulatory act, which is not included in the action Plan of the relevant regulatory authority (hereinafter - the Plan), is possible only after the introduction of amendments to the Plan. In case of changes to the Plan, including the exclusion of a draft regulatory action from the Plan, such changes are subject to mandatory publication in accordance with the requirements of the Law of Ukraine "On the basics of the state regulatory policy in the sphere of economic activity" of September 11, 2003, №1160-IV.
On 6 October 2022, the Antimonopoly Committee of Ukraine (hereinafter - AMCU) issued its clarification regarding the application of the legislation on state aid to economic entities providing services in the heating sector. The AMCU notes that financing of an undertaking that aims at the support of economic activity connected with rendering services on production and supply of heat energy shall be deemed state aid provided that criteria stipulated in the European Court of Justice Decision No. 280/00 of 24.07.2003 Altmark Trans GmbH, Regierungspräsidium Magdeburg v Nahverkehrsgesell - schaft Altmark GmbH which exclude any advantages are not met and all other attributes of state aid are fulfilled. Responsibility for the provision of heat production and supply services, which are services of general economic interest, must be imposed on the providers of such services by an appropriate act, which must stipulate in particular:
- the content and duration of the obligation to provide services of general economic interest;
- the name of the undertaking and, where appropriate, the territory to which its services are to be extended;
- the nature of any exclusive or special rights conferred by the public authority on the undertaking to provide services of general economic interest;
- a description of the mechanism for the payment of compensation and the parameters for calculating, monitoring, and reviewing compensation (methodology for calculating compensation, monitoring, and reviewing compensation);
- a mechanism to avoid and recover excessive compensation;
- a reference to Commission Decision 2012/21/EC of December 20, 2011, on the application of Article 106 (2) of the Treaty on the Functioning of the European Union to state aid in the form of compensation for the provision of services by economic operators who are charged with providing services of general economic interest.
The State Property Fund of Ukraine has distributed clarifications on the specifics of leasing state and municipal property during martial law, in particular:
- documents confirming the fact of destruction or damage to the leased property due to armed aggression of the Russian Federation (as destruction of property is grounds for reducing the amount of rent or suspending its accrual);
- on bringing the validity term of the lease agreement in compliance with the minimum term during martial law (since if the validity term of the lease agreements on state and municipal property expires during martial law, they shall be deemed extended for the period of martial law and within four months from the date of its termination or cancellation).
On 12 October 2022, the Ministry of Education and Science approved a "Model professional development programme for the heads of general secondary education institutions implementing the new State standard of basic secondary education" (Order № 905) and "Model professional development programme for teachers of general secondary education institutions implementing the new State standard of basic secondary education" (Order № 904).
On 4 October 2022, Letter No. 1/11679-22 of the Ministry of Education and Science of Ukraine "On the organization of preschool education institutions and protection of the legal rights of their staff" was published. The Letter highlights the specifics of the organization of pre-school education institutions, the specifics of the application of labour law norms during the legal regime of martial law, in particular regarding the remuneration of employees of such educational institutions during the suspension of education, the conditions of distance learning, the possibility of introducing downtime, etc.