Important Draft Laws. Issue 26: Decriminalization of Ammunition Production by Military Personnel and Establishment of Mental Health Services at Enterprises

During this period, 23 bills were registered: 7 from the government and 16 from MPs. The government submitted the draft State Budget for 2025 to the Verkhovna Rada within the timeframe specified by law, which was covered in a separate publication on Vox Ukraine. Additionally, lawmakers focused on the mental health of Ukrainians, preparing a new law to regulate this area. Another notable bill proposes granting the Security Service of Ukraine the right, along with central executive bodies, to draft and submit bills and other regulatory acts to the Cabinet of Ministers and the President. Read more about these and other initiatives in this review.

New law on the mental health care system in Ukraine

Bill 12030 aims to prevent mental illnesses, in contrast to the current law, which focuses on psychiatric care for individuals already diagnosed with such conditions. A National Mental Health Commission would be established to develop coordinated mental health policies. This body would coordinate interactions between Ministries and professional and public organizations and certify specialists in the mental health field. Its funding would be partly supported by international technical assistance. 

Additionally, professional associations in the mental health sector can attain the status of self-regulatory organizations. 

Mental health support programs would be developed at national and local levels and tailored to the needs of different population groups, including children, service members, internally displaced persons, veterans, and others. 

The bill also proposes establishing mental health services at enterprises with more than 50 employees. Smaller companies would have the option to engage mental health specialists on a part-time or contractual basis. Creating mental health services could pose an additional financial burden on businesses, especially those with fewer than 50 employees. Finding a sufficient number of qualified specialists could also be a significant challenge. 

Simplification of requirements for construction fund managers

Bill No. 12024 introduces amendments to the legislation regulating the activities of managers of housing construction financing funds (HCFF). 

Prospective apartment owners often invest money in building projects during the planning or excavation stages. HCFF management companies could act as intermediaries between construction companies (or developers commissioning the construction) and individual investors. These companies would collect funds from people to put them into the fund and sign contracts with the developers. Completed housing is also delivered to the investors through the HCFF. 

The main changes in the legislative proposal involve:

Imposing penalties on project owners rather than developers, as developers often act merely as contractors and executors of the owner’s obligations: The bill grants HCFF managers the right to apply penalties (stipulated in the contract) to owners who fail to meet their commitments or do not provide the necessary construction documentation. This measure would enable managers to oversee the construction process and avoid delays or violations.

The possibility for HCFF managers to step in as developers if the developers fail to meet their obligations or other circumstances threaten the completion of the construction: This means managers could directly oversee the construction process and complete the project, ensuring that investors receive their properties. Upon transitioning to developer status, the HCFF managers’ license to operate in the capital market would be revoked, but all rights and obligations toward investors would remain with the managers. 

Protecting investor rights when changing managers or project owners: The bill stipulates that in the event of a change in the project owner or HCFF manager, all rights and obligations under the contracts would automatically transfer to the new owner or manager. 

Reducing capital requirements for HCFF managers: HCFF managers must have a statutory capital of at least EUR 1 million. The bill proposes reducing this requirement to UAH 6 million. The bill’s authors justify this reduction by noting that the capital requirements for investment companies and funds are EUR 125,000, equivalent to UAH 5.7 million. 

Eliminating double mortgaging: Current legislation requires mortgage registration for the construction project itself and for each investment object (such as an apartment or other part of the project). The existing law states that “the subject of a mortgage under the mortgage agreement is the construction project, all investment objects that are components of the construction project, and the land plot on which the project is located.” The bill abolishes this requirement, retaining the mortgage only on the construction project and the land plot.

The Ministry of Defense proposes new anti-corruption restrictions for military members

On September 9, the Ministry of Defense of Ukraine submitted Bill 12022 to the Verkhovna Rada through the Cabinet of Ministers, establishing new anti-corruption restrictions for military personnel. The Ministry proposes amendments to the Internal Service Statute of the Armed Forces of Ukraine, specifying that service members (including military officials of the Armed Forces and members of military medical commissions) are prohibited from using state or municipal property for private interests, combining military service with other types of activities or employment, and are required to report any conflicts of interest, including situations involving close relatives working together.

Decriminalization of ammunition production by military personnel in combat conditions

Bill 12026 proposes exempting Ukrainian Defense Forces members from criminal liability for independently manufacturing ammunition, explosives, and devices for unmanned aerial vehicles under martial law conditions. The bill specifies that production must be carried out under commanders’ orders and after completing special training on safe ammunition production. The bill aims to eliminate legal ambiguity regarding such actions and protect service members from criminal prosecution.

By the way, Bill 11073 on decriminalizing weapons production, which we previously discussed, is currently in Parliament but has not yet been considered by the people’s deputies. 

Please note that the manufacture of ammunition for FPV drones by civilians remains a crime. However, the Cabinet of Ministers has allowed such production by legal entities. 

Granting the SBU the right to draft and submit bills to the government or the President

Government Bill No. 12028 proposes granting the Security Service of Ukraine (SBU) the authority to develop and submit draft regulatory acts to the President and the Cabinet of Ministers. 

Under the law on the Cabinet of Ministers of Ukraine, draft government decisions can be submitted to the Cabinet by the Cabinet Secretariat, Ministries, other central executive bodies, state collegiate bodies, and local state administrations. The bill proposes adding the SBU to this list to expedite the legal regulation of issues related to the SBU’s activities.

The adoption of this bill could prompt other law enforcement agencies to seek an expansion of their own powers.  

Criminal liability for international crimes

In August 2024, Ukraine ratified the Rome Statute. However, Ukrainian legislation does not yet fully align with international regulations (despite previous proposals to amend the Criminal Code). Therefore, MPs initiated a bill defining types of international crimes and specifying their penalties. This separate law emphasizes the exceptional seriousness of such crimes and the importance of combating them while preventing the Criminal Code from overloading with numerous innovations. To ensure the legal weight of its provisions, deputies propose clarifying that criminal legislation should include this bill in addition to the Criminal Code and the Constitution.

Bill 11538 defines the list of crimes that can be considered international, including genocide, leadership in committing genocide, its justification, and public incitement to it, crimes against humanity, war crimes, crimes of aggression, propaganda of aggression, and the failure of a commander to take measures that could prevent subordinates from committing international crimes. The bill further details which violations of humanitarian law (such as hostage-taking, torture, etc.) during international and non-international armed conflicts can be classified as war crimes.

Individuals found guilty of these crimes may be sentenced to up to 30 years in prison or life imprisonment, with an additional penalty of property confiscation. For example, justifying or denying genocide or spreading related materials would be punishable by up to 20 years in prison. The same punishment applies to spreading or publicly using materials that call for aggressive war, incite military conflict, or deny or justify an aggressive war. Responsibility for international crimes applies to individuals 18 years old and deemed sane. Additionally, no statute of limitations applies to international crimes, and the only grounds for release from punishment for such crimes would be a pardon by the President of Ukraine.

Moratorium on tax increases during the war and targeted use of military levy revenues

Two alternative bills, Nos. 11416-d-1 and 11416-d-2 have been registered in the Verkhovna Rada as alternatives to the government bill No. 11416-d, which regulates taxation during martial law.

The authors of these bills emphasize that constant changes in tax legislation and their rapid implementation do not allow businesses to adapt, hindering the stable development of Ukrainian companies. Addressing this issue, Bill 11416-d-2 proposes a moratorium on tax changes during martial law (although this may be impractical given the need to finance defense). Additionally, the deputies propose enshrining the presumption of innocence of taxpayers in tax legislation. 

The alternative bill incorporates specific provisions from the main bill. For instance, it supports establishing electronic correspondence between controlling bodies and large taxpayers, VAT payers, and e-residents via the electronic user dashboard. However, regarding the inventory procedure at the request of a controlling body, the alternative bill allows the controlling body only to suggest conducting an inventory during an audit rather than mandating it, as proposed in the main bill. Thus, pressure on businesses is minimized, as the government bill acknowledges that the tax authorities may conduct unwarranted inspections, which could complicate business operations.

Bill 11416-d-1 proposes the targeted use of military levy funds with the following allocation: 

• 40% for the purchase of special equipment and technology, development and implementation of new technologies, expansion of production capacity for defense products, and implementation of defense reforms;
• 40% for financial payments to military personnel;
• 20% for logistical support of defense forces.

Protection of wrongfully dismissed employees

Bill 11481-1 establishes guarantees for the protection of employees who have been wrongfully dismissed. If a court reinstates an employee, the employer must pay insurance contributions for the entire period of the unlawful dismissal. Additionally, the employee would be entitled to full recognition of insurance service time for the period of “downtime.”

Previously, a main bill was registered in the Verkhovna Rada that proposed counting the period of unlawful dismissal towards the employee’s insurance service time if a court decision reinstated them. However, the authors overlooked the obligation of employers to pay insurance contributions for this period. The alternative bill addresses this gap in the previous initiative.

A provision on consumer contracts will appear in the Civil Code

The rights and obligations of consumers and business entities are regulated by the Law “On Consumer Rights Protection.” However, these provisions are still missing from the Civil Code, which lacks the concept of a consumer contract and a description of the parties’ rights in this area. Therefore, it is proposed to introduce a provision into the Code stating that under a consumer contract, the party engaged in business activities is obliged to sell goods, provide services, perform work, or lease property to the consumer to meet their personal needs, unrelated to business or job duties, while the consumer is obligated to pay for these goods, services, or work. A consumer contract also includes agreements where the consumer may provide personal data to the entrepreneur instead of paying for the services.

In addition to introducing the concept of a consumer contract, the draft law clarifies who can be parties to a public contract. The essence of a public contract is that the person offering goods or services must provide services or sell goods to anyone who approaches that supplier. In practice, individuals and legal entities can be parties to such contracts. The draft law formalizes this (under current legislation, only consumers can be parties to a public contract).