Achievements of 2024: Which Areas Saw Significant Changes?

This year, the government launched the “ePermit” system (+2 points). The platform enables users to obtain permits in the field of labor protection, apply for or cancel licenses for various types of activities, and submit complaints against licensing authorities. It is a pilot project set to run for two years before being rolled out on a permanent basis. As part of the broader digitalization effort, taxpayers are now allowed to participate in the review of complaints or inspections via video conference. In addition, legal entities gained access to the Diia.Signature (+ 2 points), which had previously been available only to individuals.

To support Ukrainian businesses and boost the visibility of Ukrainian products—both domestically and internationally—the government approved the free use of the “Made in Ukraine” trademark and developed a brand book to accompany it. 

Many business regulation reforms this year were introduced as part of Ukraine’s EU integration efforts. The Verkhovna Rada updated provisions of the Customs Code (+2 points) governing the activities of customs brokers, and the Cabinet of Ministers approved a technical regulation on the safety of chemical products (+1.25 points). This regulation requires the registration of all chemical substances produced, imported, or placed on the Ukrainian market in quantities exceeding one ton per year.

European standards have also begun to take hold in the pharmaceutical sector. To prevent counterfeit medicines from reaching patients, drug manufacturers are now required to label products with a unique identifier (a two-dimensional barcode). Additionally, placing advertising information on medication packaging is now prohibited. 

Ukraine has begun the process of joining the EU’s common roaming area (+1.5 points). In the future, Ukrainians traveling within the EU and Europeans visiting Ukraine will be able to use mobile services under the “Roam Like at Home” (RLAH) principle without incurring additional charges. Since 2022, Ukrainian mobile operators have offered such services, but with limitations—for example, they may not be available in all countries.

Several reforms also affected road transportation. First, the Ministry of Infrastructure introduced a requirement for carriers to insure their liability for harm caused to passengers, their baggage, or cargo. This must be done through a contract with an insurance company without involving the passenger directly (+1.5 points). To legalize and improve the quality of bus stations, the government launched an electronic List of Bus Stations (+1.5 points). Only stations listed in this system can be included in official bus routes. By the end of 2024, around 300 bus stations had already registered. 

In the construction sector, a key simplification applies to foreign entities: the government allowed non-residents to carry out construction activities in Ukraine without obtaining a local license (+1.75 points). Instead, they are required to submit a declaration to the licensing authority, including information about the non-resident, their permanent representation, actual business address in Ukraine, the type of activity, and the permit being replaced by the declaration. To improve accessibility, the declaration can be submitted either through administrative service centers or via the Diia platform.

However, anti-reform initiatives were also identified. One of the setbacks was the law on ethical lobbying (-0.5 points). While both Ukrainian civil society and international partners had long called for such legislation, the adopted version fails to address shadow lobbying. Although lobbyists are formally required to register and obtain official status, enforcing penalties against unregistered actors is virtually impossible. Moreover, the law does not clearly distinguish between lobbying and advocacy, creating risks for citizens and civil society organizations. 

The second anti-reform effort was the law on the “white business club” (-1.5 points). It offers certain privileges—such as a moratorium on tax inspections and faster budgetary reimbursements—to companies that have paid an annual corporate income tax amount no less than the industry average. In effect, this means only large businesses can qualify for membership in the “club.” As a result, the law creates unequal conditions for businesses and has been classified as anti-reform.

The most important and long-anticipated reform in the law enforcement sector was the ratification of the Rome Statute of the International Criminal Court (ICC). The law received +4 rating from experts — the highest score recorded since 2020. Ukraine signed the Rome Statute back in 2000 and recognized the ICC’s jurisdiction in 2013. However, the ratification process was delayed for years, partly due to widespread concerns that the ICC might prosecute Ukrainian military members. In reality, ratification grants Ukraine full membership in the ICC, along with the right to influence decision-making processes, propose amendments to the Statute, vote for judicial candidates, nominate its own candidates, approve budget allocations for war crimes investigations, and help determine the distribution of funds from the Trust Fund for Victims.

A key anti-corruption reform was the abolition of the medical and social expert commissions responsible for disability assessments (+3 points). Since January 2025, a new system has taken effect based on evaluating an individual’s daily functioning by expert teams of practicing doctors. These teams are formed through an electronic system shortly before the assessment and are tailored to each patient’s specific needs. This ensures that patients do not know in advance who will assess them, and doctors are unaware ahead of time which patient they will evaluate. Later, citizens were granted the right to undergo assessments accompanied by a lawyer, legal representative, physician, or rehabilitation specialist and to make audio or video recordings of the evaluation (+2 points). These recordings can be used to appeal the decision if necessary.

To combat corruption in the construction sector, Parliament required public contracting authorities to disclose full pricing information related to building projects (+2 points). Alongside the construction contract, procuring entities must now publish data on the cost of building materials, their country of origin, quantity, and prices for related services such as procurement, storage, and transportation on Prozorro. 

A high-profile development in the anti-corruption sphere was the adoption of the law on plea agreements in corruption cases. The initial draft faced intense public criticism because it did not require suspects to disclose accomplices in exchange for a reduced sentence — essentially allowing them to buy their way out of punishment. However, the version ultimately passed by the Verkhovna Rada and included in the Reform Index (+1 point) addressed these concerns. Under the new law, a court may reduce the sentence for a defendant in a corruption case only if they expose their accomplices and compensate for the damage caused. However, despite the possibility of imposing high fines as an additional penalty, the law does not mandate the confiscation of the convicted person’s assets.

Toward the end of the year, attention shifted to combating the bribery of foreign public officials (+1 point). If a legal entity attempts to bribe an official from another country, it may face tax sanctions (such as fines or unscheduled document audits), be barred from certain activities (including participation in public or defense procurement, privatization, or public-private partnerships), and lose access to state benefits, international technical assistance, and Diia.City residency status, among other penalties. 

Parliament initiated a long-awaited reboot of key state institutions. First, it passed a law revising the procedure for selecting members of the Economic Security Bureau (ESB) (+1.5 points). The number of members on the selection commission for the ESB head was reduced from nine to six—three appointed by the Cabinet of Ministers and three by international organizations. A similar approach was used to update the selection process for the head of the State Customs Service (SCS) (+2 points). Both officials will undergo an independent performance audit one year after their appointment. A negative conclusion will serve as grounds for dismissal.

The judicial system also saw reform. Parliament adopted a law allowing for the phased implementation of the Unified Judicial Information and Telecommunication System (UJITS), enabling its subsystems to be launched gradually. In addition, the rules for judicial qualification exams were revised (+1 point). The previously mandatory high threshold (at least 75% correct answers) for the cognitive test was abolished and will now be set by the High Qualification Commission of Judges. In contrast, a high threshold (at least 75% of the maximum score) was introduced for professional testing in areas such as legal history, law, specific court specialization, and practical assignment.

The government expanded the powers of the State Audit Service (SAS), appointing it as the national coordinator for combating fraud in cooperation with the EU Anti-Fraud Office (OLAF) (+2 points). SAS will collect information on potential fraud involving EU funds, lead the development of a National Strategy to protect the EU’s financial interests, and prepare legislative proposals for its implementation.

At the end of the year, the President signed a long-awaited law strengthening the mandate of the Accounting Chamber of Ukraine (ACU) (+2 points). The ACU will now be able to audit not only state budget revenues and expenditures but also local budgets, state and municipal enterprises, and the use of international aid. The selection process for the head and members of the ACU was also revised: they will now be appointed by an advisory group that includes international experts. 

Reforms related to budget planning and tax administration are also worth noting. Following the reinstatement of medium-term state budget planning, local governments were once again required to adopt medium-term budget forecasts (+2 points). Local authorities are now allowed to approve budgets with a deficit or surplus in the general fund, provided they invest in government bonds (OVDP) with maturities longer than one year. The State Treasury will issue monthly reports on local debt and guarantees provided by local governments.

This year, the government continued efforts to bring alcohol and fuel production out of the shadows. Traditional paper excise stamps were replaced with electronic versions featuring unique codes (+1 point). Citizens will be able to scan products using the Diia app, verify their legality and origin, and report violations. Additionally, from April 1, 2025, to January 1, 2030, alcohol producers (excluding bioethanol producers) will pay excise tax based on the maximum production capacity of their facilities. This measure is intended to prevent tax evasion through underreporting of production volumes (+0.5 points). 

Also noteworthy is the tax hike law, which our experts classified as reformist (+1 point). It raises the military levy for individuals from 1.5% to 5% of income and introduces a mandatory military levy for single tax payers (1% of income) and for sole proprietors in groups I, II, and IV (10% of the minimum wage). Lawmakers and the government justified this step by pointing to the urgent need to increase funding for the armed forces.

The Verkhovna Rada also updated the law on state regulation of the securities market in Ukraine (+2 points). It expanded the powers of the National Securities and Stock Market Commission (NSSMC), granting it the authority to investigate capital market violations. To strengthen market participants’ trust in the Commission, a competitive selection process was introduced to appoint the chair and members, with a focus on professional reputation. 

Another EU-aligned regulation is the law on credit rating practices (+1 point). It sets unified rules for the assignment and use of ratings in the financial sector, as well as requirements for the operation of credit rating agencies in line with European standards.

The highest-scoring reform in this area was the law legalizing medical cannabis (+2 points), which permits the use of cannabis-based medicines in Ukraine for medical purposes. These treatments will be available to military personnel suffering from post-traumatic stress disorder and anxiety disorders, as well as to patients with epilepsy, cancer, or chronic pain. Such medications will be dispensed strictly by electronic prescription and only according to medical indications.

To improve medication access, the government revised the procedure for updating the National List of Essential Medicines (+1.75 points). WHO-recommended drugs can now be added to the list without undergoing a state health technology assessment, provided they are produced by at least four manufacturers in Ukraine. Additionally, starting January 1, 2025, not only official exporters but also authorized dealers are allowed to import medicines into Ukraine. Beginning in July 2025, all pharmacies will be required to join the “Affordable Medicines” program (+1.5 points). Currently, participation is mandatory only for pharmacies located within hospitals, while other pharmacies may join voluntarily. 

Several new regulations aim to expand access to medical services through telemedicine. The Cabinet of Ministers first approved the use of teleconsultations in patient rehabilitation (+1 point) and later extended this option to emergency medical services (+1.25 points). To accelerate the delivery of medical services, the government launched the Patient Portal in the Diia app (+1.5 points). Through the app, citizens can choose a family doctor, terminate their existing declaration, book appointments, and access their personal data stored in the central database of the electronic healthcare system.

The long-awaited law banning the activities of religious organizations with administrative centers in Russia—and those that support armed aggression against Ukraine—received a +3.5 rating from experts. The State Service for Ethnic Policy and Freedom of Conscience is now authorized to investigate ties between religious organizations and the Russian Orthodox Church and to prohibit their activities if violations are found. However, international organizations have criticized the law, citing concerns over increased state involvement in religious regulation and infringements on freedom of belief.

Several significant changes also took place in the education sector. Chief among them is the law on individual educational trajectories (+3 points). It allows students to adjust the length of their bachelor’s programs—for example, completing a standard four-year degree in three years or extending it to six or eight years (the latter option will be available only after martial law is lifted). Interdisciplinary educational programs will also be introduced, enabling students to start with a general curriculum and choose a specific major after 1 to 1.5 years of study. 

The new State Standard for Specialized Secondary Education (+2 points) also provides greater flexibility in the learning process. It allows students in academic lyceums, vocational schools, pre-tertiary, and specialized institutions to choose their educational focus—such as mathematics, STEM, IT, or language and literature. Students may also opt to study additional subjects in depth from other tracks if they wish. The changes are set to take effect in 2027, with pilot implementation beginning this year.

Last year, Parliament passed a law on the use of the English language (+3 points), which affects both public administration and education. English will become a mandatory subject at all levels of education, including preschool. The state is committed to supporting the development of digital platforms for English-language learning.

The law also has implications for the cultural sector. Cinemas that screen films in their original language during prime time (at least eight screenings per month, including two per week) will be eligible for government compensation. This provision replaced an earlier version of the bill that caused a public outcry by requiring cinemas to show films in the original language without Ukrainian dubbing. 

Thirdly, the long-overdue law on preschool education update was finally adopted (+1 point). Its revision was part of the reform agenda under the Ukraine Facility program, as the previous version, dating back to 2001, had become significantly outdated. For the first time, the law defines a guaranteed amount of free preschool education — 11 hours per day — and provides for the expansion of nurseries that will accept children from as early as three months old. The law also introduces new forms of preschool organization, including mobile, family-based, and mini-kindergartens, centers for pedagogical partnership, and child development centers. Notably, the inclusive approach now officially extends to preschool education as well.

The government launched the development of the Ministry of Social Policy’s Social Services Portal (+2 points). This system will allow users to remotely apply for social services, report individuals in need of support, and track the status of their requests online. The platform is expected to significantly reduce waiting times for service appointments.

Digitalization has also extended to social services for service members. At the end of the year, the Cabinet of Ministers announced the launch of a pilot project to digitize services for military members, veterans, and their families (+1 point). Users will be able to use the Diia app to apply for war-related disability status, disability pensions, financial assistance, rehabilitation equipment, utility payment support, and more. 

In addition, the government automated the process of granting combatant status (+2.25 points). Information on participation in combat operations will now be entered into the Unified State Register of War Veterans within five days of the start of a mission, and all individuals whose data is in the Register will automatically receive combatant status. This significantly streamlines the process for military personnel, law enforcement officers, and volunteers. The status of the digital veteran ID was also formally established as the primary document for confirming veteran status, replacing the previously recognized paper certificate.

The Verkhovna Rada also passed legislation allowing foreign nationals and stateless persons defending Ukraine to obtain temporary residence permits or immigrate, even if their documents have expired. Their family members will also be entitled to temporary residence. 

The rights of internally displaced persons also received attention. Early in the year, the procedure for providing temporary housing to IDPs was improved. Local authorities were prohibited from refusing to register IDPs in need of housing on the grounds that no housing stock was available. This change allows local governments to track actual housing needs more accurately, although the regulation does not specify how to incentivize communities to create or expand housing stock. Later in the year, IDPs were added to the category of those with priority rights to compensation for destroyed housing. Priority within this group is given to pensioners, persons with Group III disabilities, individuals caring for a child under six, those with two or more minor children or a child with a disability, and single parents raising a child under 14.

Fewer reforms were recorded in the area of labor relations this year. One of the key developments in the labor market was the legal recognition of domestic work (+1 point). A new law officially defines this type of employment as “domestic labor.” It encourages individuals working in households to sign employment contracts with their employers, thereby gaining the same protections and rights as other participants in labor relations.

Decentralization: Transparency at the local level

Several reforms targeted local self-government. To enhance the transparency of local authorities, Parliament passed a law requiring local councils to record plenary sessions and store the recordings for at least five years (+2 points). Once martial law is lifted, these sessions must also be broadcast live. In addition, public oversight of government activities will be strengthened by the law on public consultations (+1.5 points). This legislation mandates that executive authorities and local governments conduct public consultations when making any management decisions. Citizens will be able to participate in discussions both in person—through public hearings and targeted consultations — and online via a dedicated electronic platform for public consultations. The law will come into effect one year after the end of martial law.

To strengthen the autonomy and capacity of local communities, the government allowed them to access credit funding (+1 point). Later, Parliament expanded their powers in the areas of interterritorial and cross-border cooperation (+1 point).

Several important environmental reforms were introduced in 2024. The government approved regulations for operating the national environmental monitoring system (+2 points). Businesses and public authorities will be able to submit ecological data through the EcoSystem platform, which is designed to be compatible with similar European systems. Ukrainians will have unrestricted access to this information. They will be able to monitor data on air, water, and soil quality, as well as the condition of forests, biodiversity, and waste management.

Other key changes were aimed at meeting the indicators set out in the Ukraine Facility plan. First, the government adopted the National Mine Action Strategy (+1.5 points), which includes compensation for the costs of humanitarian demining of agricultural land. Second, Parliament passed a framework law on national climate policy (+1 point), focused on achieving climate neutrality by reducing greenhouse gas emissions. To support this goal, the state plans to offer financial incentives to businesses working to lower their emissions while gradually reducing support for companies that fail to meet low-carbon development standards. 

The newly adopted law on integrated prevention and control of industrial pollution (+1 point) provides an additional incentive for business environmental modernization. It introduces integrated environmental permits for industrial operations. These permits will be granted only to enterprises that have modernized their equipment in accordance with environmental standards and adopted European best practices for reducing industrial pollution.