Important Draft Laws. Issue 28: “Discounts” on Fines for Draft Dodgers and New Media Regulation Rules

During this period, 24 bills were registered, one initiated by the Cabinet of Ministers and the rest by MPs. These bills address media regulation, the integration of the Ukrainian market into the European one, and the extension of benefits for film producers and enterprises employing individuals with disabilities. Military-related topics were also a focus. Lawmakers propose reducing fines for failing to update information, allowing military personnel who left service without permission to return, and prohibiting high-ranking military positions for individuals whose close relatives hold citizenship in the aggressor country.

Integration of the Ukrainian electricity market into the European market

People’s deputies have proposed changes to the regulation of the electricity market to align it with European standards, enabling Ukraine to become a full participant in the European energy market. The critical change requires Ukrainian energy market participants to adhere to decisions from the national regulator, the National Energy and Utilities Regulatory Commission (NEURC), and those from the EU Agency for the Cooperation of Energy Regulators (ACER). NEURC would also work more closely with European regulators on grid management, energy exchange, and enhancing the security of energy supply.

In turn, the Ministry of Energy, alongside European partners, would assess risks and potential crises in the electricity sector and develop response plans to address such crises effectively. 

The bill proposes introducing an electricity market mechanism similar to the one implemented in the gas market in 2021, allowing consumers to choose electricity suppliers offering the best terms and sign contracts with dynamic electricity pricing (currently, prices are fixed). Additionally, consumers could form community energy associations to generate electricity, including “green” energy, and supply it to the market. To prevent “energy poverty,” the bill also suggests continuing housing subsidies, expanding access to renewable energy sources, and allowing the government to intervene in setting electricity prices for vulnerable consumers.

New rules for the media

Bill 12111 proposes that amendments to the Law on Media can only be made through a separate law, preventing them from being “incidentally” included in bills addressing other issues.

The bill introduces a ban on members of the supervisory boards of local media—elected from local journalist unions and public associations—from serving as deputies in the respective regional councils. For local media executives, the existing ban on dual roles is clarified: in addition to scientific, teaching, and creative work, medical practice, instructor roles, and refereeing activities in sports are permitted, except where they create a direct conflict of interest. 

In response to the development of new technologies, lawmakers propose incorporating joint regulation of artificial intelligence into media law. This means that media organizations would be required to establish AI usage guidelines, which they would commit to following and which, according to the National Council on Television and Radio Broadcasting, would be sufficient to protect public interests.

The bill strengthens the National Council’s independence by prohibiting officials, institutions, or organizations (not just government bodies) from interfering in its activities and mandating that the state provide it with sufficient funding.  

At the same time, the bill’s authors propose reducing National Council members’ salaries during the martial law period. For an “ordinary” council member, the salary would decrease from 70 to 35 minimum subsistence levels (in 2024, the minimum subsistence level for non-disabled persons is UAH 3,028, reducing from UAH 211,960 to 105,980). The salaries of the Council’s chairperson and their deputies are linked to those of the members, with the bill proposing a reduction in the corresponding coefficients: from 130% to 120% for the chairperson (from UAH 275,548 to UAH 127,176) and from 120% to 110% for the first deputy, deputy chairperson, and secretary (from UAH 254,352 to UAH 116,578).

Additionally, the bill eliminates the requirement that print media send copies to the National Council and requires them to do so only upon request. 

Simplification of land management procedures and an attempt to reduce corruption in land relations

Bill 12107 aims to reduce the high level of corruption in this field. It proposes creating a unified electronic land management platform accessible through an online portal to all stakeholders, including clients, documentation developers, landowners, land users, cadastral registrars, and government and local authorities.

Alongside “traditional” submissions (in person or by mail), participants in the process would be able to submit documents and access land management services—such as land ownership registration, land management documentation approval, and cadastral data entry—through this electronic system. The platform is designed to minimize direct contact between officials and land management participants, thereby reducing opportunities for corruption. 

Excise taxation of alcohol producers

A new excise tax payment mechanism has been introduced for alcohol producers (the law was passed on October 9, a week after the bill’s registration and signed by the President on October 15), incorporating a guaranteed tax obligation. This calculation will be based on the maximum production capacity of equipment used for producing ethyl alcohol and bioethanol.

To ensure the proper operation of this mechanism, companies must submit an assessment of the maximum production capacity of their alcohol production equipment to the tax authorities. If the maximum capacity changes, updated data must be submitted within 30 days. Failure to comply with these requirements will result in the suspension of the producer’s license. 

Benefits for enterprises and associations of people with disabilities

Lawmakers propose extending the preferential zero VAT rate on goods and services provided by enterprises established by persons with disabilities until the end of the year, in which martial law is lifted (the benefit was initially set to expire in January 2025). Enterprises and public associations where people with disabilities constitute at least 50% of the workforce would be eligible for this benefit, provided their wage fund accounts for at least 25% of the total payroll.

Tax benefits for the film industry during martial law

Bill 12103 proposes extending the temporary VAT exemption for operations related to the production and screening of national films, as well as cinematography services—such as dubbing and voice-over of foreign movies in Ukrainian— throughout martial law and 12 months after its cessation (currently, these benefits are set to expire on January 1, 2025). The bill aims to support national cinema during wartime.

Tax from land purchase and sale transactions to be paid to the local budget

Bill 12090 specifies that income tax revenues from the purchase and sale of land plots should be allocated to the local budget of the area where the land is located. For notarized purchase and sale transactions involving other property, excluding land plots, the tax is transferred to the budget based on the location of the notarization.

Reduction of fines for failure to update data at Territorial Recruitment Centers (TRCs)

MPs propose allowing men who have not yet updated their data at the TRCs to do so after paying half of the legally stipulated fine of UAH 8,500. The bill’s authors believe this measure will encourage those eligible for military service to update their information while increasing budget revenue through fines.

New rules for military personnel who have absconded from service

Currently, suppose a military service member absconds from their unit or deserts. In that case, their service is suspended when this information is entered into the Unified Register of Pre-Trial Investigations (URPTI) based on a report from the unit commander or the Military Law Enforcement Service. During this suspension, the service member is removed from their position (relieved of duties), and their contract, salary, food, and clothing provisions are paused. This period does not count toward military service tenure.

If the court finds the service member guilty of unauthorized departure, they are discharged from the army. If the court imposes a criminal sentence of service restriction, arrest with detention in a guardhouse, or confinement in a disciplinary battalion, then from the start of this sentence, military service and the contract are reinstated, along with salary, food, and supply provisions, benefits, and social guarantees. 

If the court issues an acquittal or closes the criminal proceedings, the service member must return to duty, and from that point, their tenure, payments, and benefits are fully restored.

However, during wartime, a service member who commits an offense for the first time (such as desertion or unauthorized departure) may be exempted from liability if they voluntarily report to the command and express willingness to return to duty. This requires the commander’s written consent for their return. 

Bill 12095 (adopted in its first reading on October 8) proposes clarifying these rules. Specifically, military service for personnel who absconded from their units or deserted would not be suspended during martial law. The bill also introduces a new provision: if a soldier who has left a unit for the first time voluntarily returns and is willing to continue service, the commander must reinstate them within 72 hours, restoring the contract, payments, provisions, and benefits. Additionally, the commander is required to inform investigative bodies and the Military Law Enforcement Service of the return. Ongoing criminal proceedings for desertion or unauthorized absence would not prevent the service member from returning to duty. These changes aim to facilitate the reintegration of military members into active service. However, questions remain about whether investigations and court proceedings for desertion would continue or if such cases would be dismissed.

Expansion of citizen categories exempt from mobilization

Currently, women and men are exempt from mobilization if their close relatives (spouse, child, parents, or siblings) have died or gone missing during the war in Donbas or other combat actions since the onset of the Russian invasion. Bill 12104 clarifies that “missing persons” include those officially declared missing and those recognized as missing under special circumstances or absent without a trace. This ensures protection for families who may have previously been denied exemptions due to legal nuances. Another bill (12105) also proposes providing free legal assistance to relatives of missing persons, covering representation in courts and interactions with state authorities, local government bodies, and other entities.

Key army and security positions to be restricted to Ukrainian citizens only: new limitations

Bill 12097 prohibits individuals with foreign citizenship or those whose close relatives (spouse, children, parents, siblings) hold citizenship of the aggressor state or are stateless from being appointed to military and security positions. This applies to leadership roles within the Armed Forces, State Border Guard, National Guard, and communication and transportation services. For the Security Service of Ukraine (SBU), the restriction extends to all positions, not just leadership roles. At the same time, the Ministry of Internal Affairs would establish additional limitations for specific roles and units. The bill aims to guard against external influence and bolster national security. However, its adoption could pose risks, as it would necessitate replacements in top command roles. For instance, the Commander-in-Chief of the Armed Forces, Oleksandr Syrskyi, may need to be replaced due to close relatives residing in Russia.

Stalking and cyberstalking are criminal offenses

Bill 12088 introduces new types of offenses into domestic violence legislation: criminal stalking and cyberstalking.

Criminal stalking is classified as a form of psychological abuse. It involves persistent, unwanted attention toward an individual, which can take the form of surveillance or regular presence near the victim’s residence. 

Cyberstalking is defined as continuously monitoring a person without consent through information technology, such as social media, email, or phone.

Additionally, the bill proposes strengthening protections for victims of domestic violence by ensuring that a court’s restrictive order against offenders takes effect immediately upon issuance and remains in force throughout any appeals process. This means that until the decision is overturned, the offender will be prohibited from approaching, seeking out, or contacting the victim. This change aims to help victims of domestic violence feel safer more quickly. 

Illegal constructions to be transferred to community ownership without court proceedings

Bill 12108 proposes changes to the regulation of unauthorized construction, referring to buildings erected without proper permits or on land with unsuitable zoning.

Currently, such buildings can be legalized through the State Inspectorate of Architecture and Urban Planning or the courts. The building owner can file a claim with local authorities, and if the court rules in their favor, they may obtain ownership of the land, purchase it, or lease the land where the building is located. If the building complies with construction standards and the owner can prove this in court, it may be approved for operation. However, if legalization is not possible (e.g., the building violates regulations and the owner does not make necessary corrections), the structure may be demolished at the owner’s expense. 

The bill proposes requiring local authorities to take unauthorized buildings into their balance within six months if the court does not grant ownership rights for the unauthorized construction. This means that if a developer cannot legalize a building through the State Inspectorate for Architecture and Urban Planning (DIAM) or the courts, ownership will automatically transfer to the community after six months. The community would then be free to use the building at its discretion (e.g., as social or commercial housing or for demolition). The bill’s author, the controversial Anton Yatsenko, stated in the explanatory note that “there is an urgent problem with numerous cases of unauthorized real estate construction, which, due to a lack of proper permits, cannot be adequately commissioned or connected to utility systems.” He proposes shifting the related costs from developers to local authorities through this bill.