Important Draft Laws. Issue 39: Ukrainian Courts May Be Allowed to Hear Cases Against Other States, Including Russia

During this period, 32 bills were registered in Parliament: three by the government and 29 by MPs. Among them are a proposal to allow cases against Russia to be heard in Ukrainian courts (foreign states are usually protected by judicial immunity), a reform of vocational education, requirements for a minimum number of MPs to be present during voting, and simplified procedures for temporary residence permits for volunteers and humanitarian workers. There are also several populist proposals: reintroducing voluntary unified social contributions for sole proprietors during wartime, abolishing gas transmission fees, and duty-free car imports for people with war-related disabilities and wounded combatants. Read more about this and other topics below.

Permission to file lawsuits against foreign states

Globally, the issue of lawsuits against foreign states is governed by the principle of jurisdictional immunity, which provides that a state cannot be sued in the courts of another state without its consent. This principle is enshrined in international conventions such as the UN Convention on Jurisdictional Immunities of States and Their Property and the European Convention on State Immunity. Ukraine is not a party to these agreements, and as a result, its national legislation did not clearly specify under what circumstances it may disregard the immunity of other states. This created challenges in pursuing legal proceedings against foreign states. In 2022, the Supreme Court confirmed that Ukrainian courts could hear cases against Russia without recognizing its immunity. However, the issue of legislative regulation of such cases remained unresolved.

Bill 7520-d proposes to establish, at the legislative level, the circumstances under which a foreign state may be held accountable in Ukrainian courts. Specifically, a foreign state would not be able to invoke judicial immunity when it engages in commercial activity on the territory of Ukraine (such as entering into contracts, conducting business, or participating in commercial disputes), acts as an employer in labor disputes with Ukrainian citizens, or causes harm to the health, life, or property of individuals or legal entities (e.g., through accidents, negligence, or other violations). Such exceptions would also apply to disputes involving intellectual property rights (including patents, copyrights, or trademarks), as well as property-related matters—for example, when a foreign state owns shares in companies, real estate, or other assets within Ukraine.

The bill also provides that Ukraine may file lawsuits against states designated as aggressor states or sponsors of terrorism. This applies to claims for damages resulting from acts of armed aggression, terrorism, cyberattacks, or nuclear incidents. In such cases, the state not only loses its immunity in court proceedings but also cannot protect its assets from enforcement measures. This means it may be sued as a defendant. The defendant in such cases is the foreign state itself, represented by its authorized body, embassy, consulate, or a specially appointed legal representative. The plaintiff may be an individual or legal entity that has suffered harm or the state of Ukraine if the claim concerns public interests or damage sustained by the state.

The bill outlines the procedure for notifying and summoning a foreign state to court. This means that if a Ukrainian citizen files a lawsuit against another state, that state would need to be officially notified. Such notification would be carried out by the court through diplomatic channels via the Ministry of Foreign Affairs or—if the foreign state evades receipt of the documents—by publishing a notice on the official website of Ukraine’s judiciary.

If the court rules in favor of the plaintiff, the decision could be enforced by seizing and selling the foreign state’s assets located in Ukraine. These may include bank accounts, corporate rights, real estate, or assets owned by state enterprises. 

Following the adoption of the bill, Ukraine would be able to enter into international agreements on the recognition of Ukrainian court decisions abroad. This would allow, for example, Russian assets in Europe or the United States to be seized and used to pay compensation to Ukrainian claimants.

The bill also expands the powers of the National Security and Defense Council of Ukraine (NSDC), granting it the authority to designate foreign states as sponsors of terrorism. The NSDC’s decision would be made upon submission by the Cabinet of Ministers, the Ministry of Foreign Affairs, or the Security Service of Ukraine and would be enacted by presidential decree. States included in the List of State Sponsors of Terrorism would not enjoy immunity in cases involving claims for moral or material damages caused by terrorist acts or related activities. The property of such states would not be protected by immunity and could be subject to seizure. 

Thus, Bill 7520-d would close existing legislative gaps that have so far prevented effective legal action against foreign states in Ukrainian courts—particularly in the context of seeking compensation for damages caused by Russia’s aggression.

Ban on speaking Russian during breaks in educational institutions

Bill 13072 introduces the concept of a “Ukrainian-language educational environment,” meaning that communication among students, as well as with teachers, parents, and staff, must take place exclusively in the state language within educational institutions. This rule would apply not only during lessons but also to all other forms of interaction within schools or kindergartens, including during breaks or in shelters.

Educational institutions would be required to create and maintain such an environment. At the same time, certain exceptions would not be considered violations of this obligation. These include instruction in the languages of Ukraine’s indigenous peoples and national minorities, the teaching of specific subjects in English or other EU languages, and the right of private educational institutions to independently choose their language of instruction—excluding the language of the aggressor state.

The bill also provides that in schools with classes taught in the languages of national minorities, communication in those languages would be permitted not only during lessons but also in everyday interactions on school grounds. If two-thirds of parents in such classes agree, the number of subjects taught in Ukrainian may be increased.

For external independent testing and entrance examinations, the use of the state language would be required. This provision is already established in law but is scheduled to take effect on January 1, 2030. Exceptions include foreign language exams, as well as the option to receive translated test materials for students who studied in another language—except for language-related subjects and Ukrainian history. 

Simplified temporary residence procedures for volunteers and humanitarian workers

Bill 13071 proposes to temporarily waive the requirement for a long-term visa for foreigners and stateless persons seeking a temporary residence permit in Ukraine. This would apply to those working in branches of foreign companies engaged in humanitarian aid, as well as participants in volunteer programs.

Currently, foreigners and stateless persons must first obtain a long-term visa before applying for a temporary residence permit in Ukraine. Under government regulations, a long-term visa is issued for stays exceeding 90 days. To obtain one, applicants must submit the following to a Ukrainian diplomatic mission: a valid passport, completed application form, photograph, biometric data (fingerprints of all ten fingers), an insurance policy with a minimum coverage of EUR 30,000), and proof of sufficient financial means for the duration of their stay. In addition, one of the following documents must be provided: a work permit, an employment contract (for categories not requiring a permit), or an invitation from a company, organization, or state authority. Applications may be submitted no earlier than three months before the planned trip. 

After obtaining a long-term visa and arriving in Ukraine, a foreigner or stateless person must submit a valid passport (or all passports, in the case of multiple citizenships) or a document confirming statelessness in order to apply for a temporary residence permit. Additional required documents include a Ukrainian-language translation of the passport, a health insurance policy, and proof of payment of the administrative fee (or documentation confirming exemption from it). For those arriving for employment, a work permit or employment contract must also be provided. In such cases, the employer is required to notify the authorities in the event of early termination of the contract). The residence permit is issued within 15 working days for the period indicated in the supporting documents but no longer than one year—or, in the case of employment, for the duration of the work contract).

The visa waiver would remain in effect for the duration of martial law and one year after it ends. Foreigners who entered Ukraine after February 24, 2022, and apply for a residence permit within 60 days of the bill’s adoption would be considered lawfully present in the country. This provision would not apply to citizens of the Russian Federation.

Establishing a quorum requirement for MPs during voting

Bill 13064 proposes amending the Rules of Procedure of the Verkhovna Rada to explicitly require that decisions be only adopted if the required number of MPs are physically present in the chamber at the time of voting (for example, at least 226 MPs are needed to pass a law).

The bill’s authors argue that it addresses instances where Parliament considers decisions despite a low number of MPs being present in the chamber. 

Rules for renaming territorial communities

Bill 13065 clarifies the rules for defining the categories of territorial communities and their official names. A community with its administrative center in a city would be classified as urban, in a settlement—as settlement-type, and in a village—as rural. The community’s name should generally derive from the settlement serving as its center or from the area’s geographical or historical name. 

The bill also specifies the official naming conventions for local councils. Full names of councils (village, settlement, city, district, regional) would include the name of the community, the generic term for the representative body (such as “city council”), and the administrative region—for example, Horenka Village Council of Kyiv-Sviatoshyn District, Kyiv Region. Abbreviated names would not include references to the district or region.

A territorial community may be renamed for several reasons: if the name of its administrative center changes, if it needs to be aligned with the law on decolonizing place names, to comply with state language standards, or if the status of the administrative center changes—for example, from a village to a settlement. Until a law on Ukraine’s administrative-territorial structure is adopted, the Cabinet of Ministers would be authorized to designate administrative centers and change the names and categories of territorial communities (e.g., from rural to urban). A local council may initiate the renaming of a community, but this would require a two-thirds majority vote of its members. The proposal would then be reviewed by the National Commission on State Language Standards, and if approved, the renaming must be confirmed by the Cabinet of Ministers. The bill also stipulates that changes to the official name of a council may only be approved by the council itself during its own session.

Changes to the rules for hearing pension and social benefits cases

Bill 11170-d proposes changes to the procedure for handling court cases related to pensions and social benefits. Currently, such cases are considered under a simplified procedure without the parties’ participation, which speeds up decision-making. The bill retains this procedure but introduces a maximum timeframe for case consideration—60 days (no such timeframe is currently defined).

If the defendant—i.e., a state body—fails to provide a reasoned response to the claim, the court could interpret this as acknowledgment of the plaintiff’s demands. However, this provision contradicts the current rule in the Code of Administrative Procedure, which states that “if a party fails, without valid reason, to provide evidence requested by the court to support its claims, the case shall be decided based on the available evidence.” 

The bill provides detailed rules for filing appeals in such cases. Government bodies would be required to pay a court fee for an appeal to be considered. The appellate court would be obligated to issue a decision within 30 days.

Another new provision allows for the involvement of government bodies—such as the Ministry of Social Policy, the Pension Fund, or other interested parties—if the Supreme Court determines that a case may impact state policy or budgetary payments.

Special rules for mountain communities

Bill 13080 proposes increasing the land tax rate for forested land in mountain communities. If a plot has already undergone a standard monetary valuation, the tax would increase from 0.1% to 0.3–0.5% of that valuation. If no valuation is available, the tax would be set at 0.3–0.5% of the average value of arable land in the region.

Bill 13081 provides that state requirements regarding the volume of medical services funded from the national budget would not apply to healthcare institutions in these communities. This means hospitals could not be closed solely for failing to meet established funding thresholds. In particular, maternity wards and other medical facilities in mountain communities would remain operational unless local residents themselves decide to close them through public hearings. (This could lead to a decline in the quality of care, as doctors may lack sufficient practice.)

Reinstating voluntary unified social contribution payments for sole proprietors 

Bills 13075 and 13076 propose making the payment of the Unified Social Contribution (USC) voluntary for sole proprietors (FOPs) under the simplified tax system during martial law and for 12 months after it ends.

The bills also provide that in 2025, pensions and similar payments exceeding UAH 23,610 per month (equivalent to 10 times the subsistence minimum for persons with disabilities) would be subject to a military levy (the government would determine its rate at a later stage). This measure would apply not only to pensioners but also to judges receiving lifetime financial support and other individuals entitled to special pension arrangements.

Abolishing gas transmission fees for households

Bill 13095 proposes to temporarily exempt household consumers from paying for the transportation and distribution of natural gas during martial law and for one year after it ends.

According to the bill’s author, Ukrainians consume approximately 8 billion cubic meters of gas annually, and the average distribution tariff is UAH 1.68 per cubic meter (though this varies by region and supplier). If enacted, companies responsible for transporting and distributing gas could lose around UAH 13.8 billion in annual revenue, while the state budget would forgo roughly UAH 4 billion in tax revenues. To offset these losses, the bill proposes using funds from the reserve fund (UAH 29.5 billion allocated in the 2025 state budget) or from the public debt servicing program (UAH 480.8 billion planned for 2025). However, the bill’s authors do not explain how losses would be covered in future years.

Duty-free car imports for veterans and wounded service members

Bills 13058 and 13059 propose exempting Ukrainian citizens from import duty, value-added tax (VAT), and excise tax if they are officially recognized as war-disabled or as combatants wounded during military operations, as well as their authorized representatives. They would be permitted to import one vehicle into Ukraine without paying additional taxes. This exemption applies to passenger cars, car bodies, motorcycles, trailers, buses, and trucks. The same right would also apply to individuals who have officially transferred their personal vehicle to a military unit engaged in combat.

The preferential regime would remain in effect for the duration of martial law and until the end of the calendar year following its termination.