Important Draft Laws. Issue 51: Criminal Liability for Illegal Exit, Assembly of Heroes, Competitions for Police Leadership

Criminal liability for illegal border crossing

Currently, illegal border crossing carries administrative penalties: a fine of UAH 3,400–8,500, or UAH 8,500–13,600 for repeat offenses or violations committed by a group, as well as up to 15 days of administrative arrest. There is also criminal liability: facilitating the crossing of others is punishable by 3 to 5 years of imprisonment, or 7 to 9 years if carried out by an organized group.

Bill No. 13673 proposes abolishing administrative arrest and, in peacetime, retaining fines ranging from UAH 3,400 to 13,600. During wartime or under a state of emergency, illegal border crossing would be punishable by a UAH 119,000–170,000 fine or up to 3 years’ imprisonment. However, individuals who return within three months and voluntarily report their violation would be exempt from liability. Assisting others to cross during wartime or a state of emergency would carry stiffer penalties—7 to 9 years’ imprisonment.

The bill would introduce a new provision on obstructing the construction of, or damaging, border infrastructure (for example, when a violator deliberately cuts through the metal fencing of a border barrier). The proposed penalties include a fine of UAH 17,000–85,000, restriction of liberty (placement in correctional centers or penal institutions, where an individual is isolated from society, housed in dormitories on institutional grounds, works under supervision, and cannot leave without permission), or imprisonment of up to 3 years (placement in correctional colonies or closed prisons, involving confinement in a cell or barracks, complete isolation from society, and restricted contact with the outside world). Repeat or group offenses would be punishable by 3 to 5 years’ imprisonment, while cases involving violence or weapons would carry 5 to 8 years.

The draft law would also establish criminal liability for conscripts, reservists, and other individuals liable for military service who overstay abroad during wartime or a state of emergency. Penalties would include a UAH 34,000–51,000 fine or 3 to 5 years’ imprisonment. However, individuals who return within one month after their permitted period expires and voluntarily report the violation would be exempt from liability.

Excluding international experts from Ukrainian state bodies and creating the National Assembly of Heroes of Ukraine

Bill No. 13697 proposes removing international experts from selection commissions involved in forming key state institutions.

The bill usually removes international experts from selection and attestation commissions, advisory councils, and supervisory boards. The composition of new selection commissions would instead be determined by the Cabinet of Ministers and Parliament. For the National Anti-Corruption Bureau of Ukraine (NABU) and the National Agency on Corruption Prevention (NACP), the director-selection process would be transferred to a newly created body—the National Assembly of Heroes of Ukraine—to run competitions and identify the winners.

The Assembly would be composed of Ukrainian citizens awarded the title of Hero of Ukraine for participation in combat, provided they consent in writing to serve as members. Applications would be reviewed by the Parliamentary Committee on National Security, Defense, and Intelligence, after which Parliament would approve the final list. Assembly sessions would be open to the public, broadcast online, and supported administratively by the government. The bill does not specify how the Assembly would conduct the competitions, but the result must be a shortlist of three candidates, from which the government would appoint the final nominee.

If adopted, this bill could undermine several major reforms, including those in judicial, corporate governance, customs, and prosecutorial areas.

Competitions for leadership positions in the National Police

Under current law, only individuals joining the police service for the first time must undergo a competitive selection process. Bill No. 13716 would extend this requirement to candidates for leadership positions. Members of the police commission would evaluate each candidate, assign individual ratings, and determine the winner.

According to the Law on the National Police, officer attestation assesses professional, personal, and business qualities, education, qualifications, and physical fitness. Attestation is carried out by commissions established by police leadership, while the Ministry of Internal Affairs sets the procedure and frequency.

The bill proposes adding two new factors to be considered by attestation commissions: service performance and integrity. (The Ministry of Internal Affairs would be tasked with approving a list of integrity criteria to guide evaluations of officer conduct.) For police leadership, the bill introduces a new approach: managerial skills would be assessed through an electronic human resource management system, with results published openly. Finally, the bill provides that at least one-quarter of the members of attestation commissions for police leadership positions must come from civil society.

In addition, the bill would amend the list of restrictions on service in the police:

Legislative proposal to establish the National Bureau for the Investigation of Transport Accidents

Bill No. 13674 proposes creating the National Bureau for the Investigation of Transport Accidents (excluding the metro, military, and state-owned aircraft). The Bureau would not be tasked with determining individual guilt; instead, it would analyze the causes of accidents, classify and record them, prepare safety recommendations, and propose amendments to regulations. To carry out its mandate, the Bureau would be authorized to engage experts, conduct tests on vehicles and components seized during investigations, and cooperate with law enforcement agencies, foreign institutions, and international organizations. At present, responsibility for transport accident investigations is divided among different bodies: Ukrtransbezpeka for road, urban electric, and rail transport; the National Bureau for the Investigation of Aviation Accidents for aviation; and the Ministry for Communities, Territories, and Infrastructure Development, along with its Shipping Administration, for maritime and river transport. Once the new Bureau is established, these agencies would lose their investigative powers.

The Bureau would be created by the Cabinet of Ministers and operate independently: the draft law explicitly prohibits interference by government bodies, political parties, or other actors. The Cabinet would appoint its director for a five-year term. It must hold a degree in transport, at least ten years of professional experience, and five years of managerial experience. Staff would be recruited exclusively through open competitions organized by the director.

Amendments to rules on contracts between pharmacies and pharmaceutical companies for marketing and advertising services

The Law on Medicinal Products (Article 20-1) permits pharmacies to conclude contracts for marketing or promotional services only directly with drug manufacturers or importers. Such services may include, for example, placing a product in a prominent location or organizing a sales campaign within a pharmacy. The Cabinet of Ministers sets the terms for providing these services. Advertising medicines outside pharmacies may only be contracted with companies with no ties to pharmacies or pharmacy chains—meaning no shared ownership, management, or other subordination. The law also prohibits hidden post-sale discounts. For example, a pharmacy may purchase medicines for UAH 100, and the manufacturer later reimburses UAH 10 as a bonus or provides free packages. Such arrangements make pricing non-transparent: the recorded price differs from the actual one. 

Compliance with these rules is mandatory for obtaining and maintaining a license to manufacture, import, or distribute medicines. Any breach by a pharmacy or manufacturer constitutes a violation of licensing conditions.

Bill No. 13657 would retain these rules but refine them. Contracts for marketing services would be allowed only for over-the-counter medicines, while any in-pharmacy promotion of prescription drugs would be prohibited. In addition, the Cabinet of Ministers would gain the authority to set limits on how much manufacturers or importers may spend on such services and on the revenue pharmacies may earn from them. In effect, the state would regulate both the spending of manufacturers and the earnings of pharmacies under these contracts.

An alternative bill, No. 13657-1, proposes repealing Article 20-1 of the Law on Medicinal Products altogether, abolishing all current restrictions. Without this article, pharmacies, manufacturers, and importers could negotiate freely without state oversight and involve various intermediaries. These intermediaries could be paid for product promotion, complicating pharmacy price control. The repeal would also lift the ban on hidden discounts, again allowing bonuses, credit notes, or deferred rebates.

Moratorium on tax inspections for enterprises with the highest tax contributions

Bill No. 13660 proposes introducing a new framework for so-called “industry leaders”—private enterprises that pay taxes in Ukraine. Each year, based on financial reporting, the tax authority would identify leading taxpayers in every industry. The primary classification would be by NACE codes, provided that at least 100 taxpayers are under the code; otherwise, classification would be carried out at higher levels, such as classes, groups, or sections. Selection would rely on a combination of indicators: the amount of profit tax paid, the amount of VAT paid, and the average wage level, provided the enterprise has at least 100 employees.

Enterprises would be notified of their designation by the tax authority and issued a certificate, with information about these decisions published openly on the authority’s website. For such enterprises, a one-year moratorium would apply to all documentary audits and reconciliations. They could not be designated as risky taxpayers, and registration of their VAT invoices in the Unified Register could not be suspended.

Ban on unitary enterprises creating other legal entities

Bill No. 13717 would prohibit state and municipal unitary enterprises from establishing new legal entities, such as limited liability companies (LLCs).

The state or local communities create unitary enterprises, have no co-founders, and do not own the assets they use. Instead, they operate state or municipal property under the right of operational management—that is, they may use such property in their activities. Still, they cannot freely sell, donate, or otherwise dispose of it. However, unless explicitly prohibited by law, an enterprise may contribute this property to a new company it establishes. For example, a municipal enterprise could set up an LLC, transfer equipment or premises, and continue providing the same services through that new entity. In such cases, the community or the state loses control over public assets, undermining transparency.

The bill would close this loophole. An exception is provided for research institutions, universities, academies, and institutes, which would still be permitted to establish business entities—but only to commercialize research results. Only intangible assets, such as patents, could be contributed to such companies, not money or buildings.

Judicial confirmation of employment record in case of lost documents

Bill No. 13705 would formalize the right to establish proof of employment through the courts to confirm work or insurance history. Courts could accept a wide range of evidence, including copies of documents, testimony from colleagues, electronic registry data, and records of payments or accruals. For service members, combatants, and persons with war-related disabilities, the bill provides that if no other evidence is available, employment history may be confirmed solely based on their sworn testimony. Applications would be reviewed on an expedited basis—within five days of receipt—and decisions would be binding on state bodies, including the Pension Fund, serving as the basis for entering employment data into state registries.

The bill would also amend pension legislation. Pension Fund authorities would be required to collect information on employment history and wages independently from state registries and databases, without requesting additional certificates from individuals if the data are already available in the system. Applicants would only be asked to provide documents if such information is absent from the registries.

Strengthened guarantees of medical care, rehabilitation, and prosthetics for service members, veterans, and former prisoners of war

Bill No. 13704 would ensure that treatment, rehabilitation, and the provision of prosthetic and orthopedic devices for service members, veterans, and former prisoners of war are fully funded from the state budget until their health is fully restored. Currently, the state also covers these services, but financing depends on available budget resources, with compensation capped at UAH 2 million. The draft law guarantees that persons with war-related disabilities can independently choose the prosthesis they need, and the state will cover its full cost without any cap. At the same time, the government would be required to set reference prices for prosthetic and orthopedic devices using price comparisons and to create a National Catalog fixing these prices. The government would also define the procedure for forming the catalog. The bill removes compensation limits for service members while shifting control to regulating manufacturer prices.