Important Draft Laws. Issue 24: Multiple Citizenship and Implementation of the Rome Statute

During this period, 30 bills were registered: four by the President, four by the Cabinet of Ministers, and 22 by MPs. One of the presidential bills concerns the introduction of dual (multiple) citizenship in Ukraine. A similar legislative initiative by Zelensky was already registered in January 2024. Another important proposal was the ratification of the Rome Statute of the International Criminal Court (ICC). Parliament passed this bill on August 21. Read more about these and other legislative initiatives below.

Updating legislation regarding the sale of shares in state-owned banks

One of the reforms planned in the IMF program is the regulation of specific aspects related to selling state-owned shares in banks’ capital. The relevant bill clarifies the technical details of conducting an auction for the sale of shares, the procedure for forming and the powers of the sales commission, and the requirements for participants and the sales advisor. 

The bill proposes extending the scope of the current law to all state-sector banks and allowing the sale of any share in a bank, not just 100% of state-owned shares, as stipulated in the current law. 

Participants in the auction for the sale of shares would be prohibited from participating if they are associated with aggressor countries, are subject to sanctions, or have committed corruption offenses. Additionally, a potential buyer might be denied participation if deemed a threat to national security or if an advisor’s assessment concludes that the candidate does not meet the risk profile required for participation in the sale.

Key changes regarding sales advisors include clarifying the procedure for selecting an advisor and defining their requirements and functions during the sale process. The advisor is responsible for gathering and analyzing information about the bank and potential buyers, preparing regulatory documents, and providing recommendations on the sale process. The main criterion for selecting an advisor is their international experience selling financial institutions. To confirm this, the candidate must be listed in one of the global rankings of top financial advisors, as approved by the Cabinet of Ministers (currently, Refinitiv’s “Top 50 Financial Advisors in Europe” ranking is used for selecting advisors during the privatization of state assets). Additionally, the potential advisor must present a comprehensive action plan for the sale of shares.  

The draft law would allow representatives of international financial organizations to participate in the advisor selection process (expressing their position) and in the work of the sales commission (receiving information from the commission and providing recommendations on auction organization). The role of international partners would be advisory.

Following the World Bank’s recommendations, the bill proposes simplifying the rules for selling shares. The advisor could recommend the starting bid price, which would need to be approved by the government. An auction would be considered valid even if only one participant participates, provided they offer a price no lower than the starting bid. If no participant purchases the share package at the starting price, the government could hold a new auction, lowering the starting price by 20%.   

Related bills amending the Civil and Criminal Procedure Codes of Ukraine have also been submitted to Parliament. The former clarifies that compensation for damages caused during the sale of state shares in the capital of banks would now be regulated solely by the relevant bill rather than by the Civil Code, as is currently the case. The amendments to the Criminal Procedure Code would limit the rights of former shareholders, significant stakeholders, and/or ultimate beneficial owners of banks whose shares have been transferred to state ownership to challenge decisions made during the sale of these banks’ share packages.

Ratification of the Rome Statute

The President initiated the ratification of the Rome Statute, a step that is one of the conditions for Ukraine’s further European integration. However, the ratification primarily enables Ukraine to benefit from being a full International Criminal Court (ICC) member.

After ratification, Ukraine would be able to nominate candidates for the positions of ICC judges and prosecutors, participate in the election of judges, influence the court’s policy, and approve the allocation of the budget for the proper investigation of war crimes. This would allow Ukraine to hold Russian war criminals accountable more effectively. Additionally, participation in the ICC would enable Ukraine to influence the distribution of funds from the Trust Fund for Victims, increasing the chances for Ukrainians to receive compensation.   

The President proposes ratifying the Rome Statute, but with a provision that would prevent the ICC from prosecuting Ukrainians for war crimes for the next seven years. This is intended to shield Ukraine from potential harm caused by fabricated cases by Russia against Ukrainian service members. This precaution may be excessive, as if such cases were feasible, they likely would have already been brought before the court. The ICC can only prosecute Ukrainian military personnel if national courts are unwilling or unable to do so.

However, the plan includes not only ratifying the document but also strengthening the accountability of military members for war crimes and crimes against humanity. To this end, the President is initiating amendments to the Criminal Code in line with the provisions of the Rome Statute. 

Specifically, the proposal includes establishing criminal liability for military commanders for planning and conducting aggressive wars, cruel treatment of civilians and POWs, the use of weapons of mass destruction, and genocide committed by their subordinates. A commander would be held accountable if they were aware of their subordinates’ intent to commit these crimes but failed to take measures to prevent them. This would enhance the capabilities of Ukraine’s justice system to prosecute Russian military personnel. 

In addition, the Criminal Code has been supplemented with an article that defines the list of crimes against humanity and their corresponding penalties. For example, intentional large-scale or systematic attacks on civilians, apartheid, extermination, or murder would be punishable by imprisonment for a term of 10 to 15 years or life imprisonment.

Apartheid is an extreme form of racial discrimination involving the restriction or deprivation of rights and the territorial isolation of a particular group of people.  

Guarantees of protection for military personnel fighting in Russia

The bill registered by the President stipulates that service members fighting outside of Ukraine are entitled to the same benefits as those serving within the country. This proposal is primarily aimed at protecting military personnel currently engaged in combat on the territory of the aggressor state.

Preservation of valuable historical buildings

The bill aims to preserve buildings that, while not designated as cultural heritage sites, are historically valuable.

 Under the current legislation, “historical buildings” refer to several monuments that serve as city-forming elements within a historical area of a settlement. The bill’s authors point out that the existing law lacks clear criteria for defining a building as “city-forming.” Therefore, they propose redefining the concept of “valuable historical buildings” to include historic buildings and their surrounding areas that shape the traditional character of the environment, require preservation, and consist of both significant and ordinary historical buildings (these are new terms introduced in the bill).

The critical issue is that current legislation only protects cultural heritage sites. Therefore, the draft law proposes expanding the responsibilities of cultural heritage protection bodies to include preserving valuable historical buildings and traditional environments. These bodies would be able to identify and list historical buildings, approve transformation programs for these sites, and more.

Additionally, the bill grants local governments extra powers to protect valuable historical buildings. Local authorities would be able to designate particularly valuable community assets that play a crucial role in the traditional urban environment and require protection. With a decision by the local council, these objects could be included in the settlement’s historical and architectural reference plan. Any reconstruction of such buildings would require approval from the local government. The approved lists and regulations for using valuable historical buildings must be considered when developing urban planning documentation.  

Citizens would be allowed to participate in the decision-making processes concerning the future of historical buildings. Specifically, they would be able to participate in professional discussions on the regulations for using valuable historical buildings. However, the bill does not outline the procedure for joining these discussions.

Candidates who “lie” in their programs would not be registered to participate in elections

Bill 11477 seeks to address the issue of candidates for elected positions promising to resolve matters that do not fall within the direct authority of the positions they are running for. To tackle this issue, the bill proposes amendments to the Electoral Code.

Before registration, the Central Election Commission (CEC) must review the candidates’ election programs. For example, if a presidential candidate’s program includes promises that are legally under the jurisdiction of other governmental bodies, the CEC would be obligated to deny the candidate’s registration. This rule would apply equally to candidates for positions such as members of Parliament, local council deputies, and cities, towns, and village mayors. 

Additionally, the CEC would have the authority to cancel a candidate’s registration if such statements are found in their public speeches, campaign materials, or speeches of individuals officially authorized by the candidate.

Changes in citizenship: new opportunities and challenges

The presidential bill (11469) proposes introducing multiple citizenship for Ukrainians. However, this would only apply to citizens of countries that are friendly towards Ukraine (the government will develop a list of such countries and approve it by law). If a person acquires citizenship of an aggressor state, this could be grounds for losing Ukrainian citizenship.

The bill also proposes expanding the categories of individuals who can submit a declaration of renunciation of foreign citizenship. This provision primarily concerns citizens of Russia and Belarus who cannot travel to these countries to complete the procedure of renouncing their citizenship. Under current legislation, Russian and Belarusian citizens can submit a declaration of renunciation and obtain a Ukrainian passport only if they are military personnel or individuals with significant contributions to Ukraine. The bill proposes extending this provision to include their spouses and children. Additionally, it is suggested that foreign nationals serving in the Ukrainian Armed Forces be granted a temporary residence permit, even if their passport has expired. This means that a foreign national would not need to travel to their home country or contact their embassy to renew their passport to obtain a residence permit.  

The bill expands the conditions under which Ukrainian citizenship may be revoked. Additional conditions include:

• Acquiring citizenship of a country that the Verkhovna Rada has recognized as an aggressor or occupier.
• Using a foreign passport within Ukraine in a manner that poses a threat to national security. For example, if a Ukrainian citizen uses a foreign passport to enter into agreements that harm Ukraine’s economy, hide income abroad, or evade military service, undermining the country’s defense capabilities.
• Providing false information or forged documents when obtaining Ukrainian citizenship.
• Serving in the military of an aggressor state or participating in military actions against Ukraine.
• Being convicted of crimes against Ukraine’s national security.

These changes have several important implications. First, they promote Ukraine’s integration into the European space, where multiple citizenship is common. Second, they help attract individuals who wish to support Ukraine’s struggle for independence, including foreign volunteers, to Ukrainian citizenship.

However, this bill leaves many critical questions needing to be answered. For instance, who would monitor and enforce Ukrainian citizens’ use of Ukrainian and foreign passports? How would those who already hold multiple passports be “legalized”? Would they be required to renounce, e.g., Hungarian citizenship if the government does not include Hungary in the list of countries with which dual citizenship is permitted? How would individuals with dual citizenship participate in elections, pay taxes, or receive social benefits?  

Mobilization challenges: five bills that change the rules of the game

Mobilization remains one of the most pressing topics for discussion in the context of war and prolonged martial law. People’s deputies are actively working on amending legislation that regulates social guarantees for service members and the procedures for drafting citizens into military service. Below, we examine five new legislative initiatives in this area.

Bill No. 11468: Reserving those eligible for military service under new conditions. The bill expands opportunities for enterprises and organizations that do not have tax debts or other obligations to the state to reserve up to 30% of their military-eligible employees. It also introduces a personal dashboard, simplifying the procedure for updating registration data and, consequently, the reservation process. These changes apply to employees already in an employment relationship with their employer as of January 1, 2024. 

Bills No. 11460 and 11460-1 grant military personnel the right to resign voluntarily: the former after 18 months of service and the latter after 12 months of active combat duty. Additionally, Bill 11460-1 proposes doubling the payments for those who continue their service and allows for transferring to a different military unit with written consent for those who voluntarily enlist. It also simplifies the process for traveling abroad for those with a deferment from mobilization or reservation, for members of Parliament, as well as for conscripts and those eligible for military service. The latter would need to notarize a commitment to inform the enlistment office of their location abroad, provide current contact details (phone number and email), and return to Ukraine within 30 days of receiving a summons. However, the bill does not specify any penalties or sanctions if the individual fails to return within this period.

Bill No. 11464 proposes exempting from mobilization those who, before reaching adulthood, were orphans, children deprived of parental care, or whose parents were either deprived of parental rights or deceased before the individual reached adulthood. 

Bill No. 11480 aims to eliminate abuses during summons issuance and citizens’ forced delivery to Territorial Recruitment Centers (TRCs). It proposes allowing both TRC representatives and the citizens being summoned to photograph and videotape the process of delivering summonses (currently, TRC or police can record the process of checking documents). This permission would enhance oversight of officials’ actions. Additionally, the bill prohibits the detention and transport of citizens to TRCs without legally prescribed grounds for such actions.

Changes to the operation of the High Anti-Corruption Court and the powers of international experts

In August 2024, the Verkhovna Rada registered Bills No. 11426 and 11426-1, which aim to ensure the proper completion of the competition for vacant judge positions at the High Anti-Corruption Court (HACC), announced on November 23, 2023. One of the reasons for the delays in the competition is the suspension of special candidate screenings from the onset of martial law until December 2023. As a result, the National Agency on Corruption Prevention (NACP) now faces the challenge of conducting thousands of checks with insufficient human resources. The bills propose different solutions to this situation.

Bill No. 11426 proposes extending the powers of the Public Council of International Experts (PCIE), responsible for selecting judges, until November 1, 2025, or until the competition is completed. After the current competition for the HACC is concluded, the powers of the PCIE will be transferred to the Public Council of Integrity (PCI). This transfer makes sense as the PCI has more experience working on integrity and professional ethics issues in Ukrainian courts. 

The alternative bill, No. 11426-1, proposes that if the term of the PCIE expires before the competition is completed, it would still be able to continue performing its functions until the selection of candidates is finalized. Additionally, the bill suggests introducing a roll-call voting system for members of the High Qualification Commission of Judges (HQCJ) and the PCIE when making decisions, which would increase the transparency of the process. If this bill is passed, PCIE members would be granted access to restricted information and allowed to have assistants and receive funding from abroad.

Transparency in election campaign financing and strengthening control over party finances

Bill No. 11462 addresses how political parties and candidates for elected positions finance their election campaigns. Instead of the current Unified State Register of Political Party Reporting on Property, Income, Expenses, and Financial Obligations (the PolitData online platform), the bill proposes creating a Unified Information and Communication System. The National Agency on Corruption Prevention (NACP) would serve as the system’s administrator, as is the case now. The NACP would ensure that the Central Election Commission (CEC) and its regional offices have access to the Information and Communication System. Part of the information would be made public, with precise details on the movement of funds in the current accounts of election funds and reports on the receipt and use of election fund resources. The new platform would facilitate the creation of reports, letters, requests, and notifications and enable the exchange of such documents between political parties, the NACP, the CEC, and banks. 

Additionally, the bill proposes that parties and candidates be allowed to have only one bank account for both income (donations) and expenses. Previously, multiple bank accounts could be used for expenses. The NACP and the bank would monitor transactions in this account, and the movement of funds would immediately become public. 

The bill establishes maximum limits for the election funds of parties and candidates. For example, for a presidential candidate or a party, the maximum fund size would equal the number of eligible voters multiplied by UAH 20 and adjusted by the price index divided by 100%. (For instance, according to the CEC, the number of voters in the second round of the 2019 presidential election was 29,646,458. With an inflation index of 101% as of April 2019, the maximum fund size would be approximately UAH 599 million, i.e., 29,646,458 * 20 * 101 / 100). The same formula applies to a candidate in a regional list for parliamentary elections but with UAH 10 instead of 20. For a candidate on the general party list, UAH 1 would replace UAH 20 in the formula. The election fund cannot exceed UAH 75,000 multiplied by the price index for mayoral candidates or local council deputies. The bill also sets requirements for election funding. For instance, banks would not be allowed to accept voluntary contributions to the election fund exceeding the established limit. Additionally, banks must only receive funds from individuals if those individuals can be identified.