Important Draft Laws. Issue 29: Private Railway Carriers and Online Provision of Social Services

During this period, 38 bills were registered: six initiated by the government and 32 by MPs. Among the key bills is a reform focused on railway transport, specifically separating track operators and carriers. Another draft law simplifies foreign operators’ access to the electronic communications market. Additionally, lawmakers plan to enhance the operation of industrial parks by developing “green” projects within them. In social services, a proposal has been made to introduce multidisciplinary teams to assist vulnerable groups. Read about these and other legislative initiatives in the overview. 

The new law on the railway transport market: fostering competition and safety

Bill No. 12142 seeks to replace the current law on railway transport and adopt a European model where the track operator, typically a state enterprise, is separated from carriers, which may include private companies. This shift aims to introduce elements of competition into an otherwise monopolistic market. Currently, Ukrzaliznytsia handles both roles—track operation and transportation services—although some private carriers already operate in the market. Under the proposed law, which would take effect five years after the conclusion of martial law, track operators would be barred from providing transportation services. Licensed companies would carry out transport services and could also act as rolling stock operators, owning locomotives and cars and leasing them.

Track operators would be required to provide access to infrastructure services to carriers on non-discriminatory terms. A newly established National Transport Regulation Commission would approve the tariffs for these services. This commission would also monitor operators’ compliance with the tariffs and ensure the provision of mandatory services. The tariffs would include an investment component for infrastructure updates and would not exceed reasonable maintenance costs. Currently, the Ministry of Infrastructure sets tariffs for transportation: for freight transportation, in coordination with the Ministry of Finance; for passenger transportation, in coordination with the Ministry of Economy; and for suburban transportation, in coordination with local authorities. These tariffs often become subjects of political bargaining. An independent regulator is planned to address this issue. 

The bill aims to enhance safety standards in railway transport by establishing strict conditions for train operators and mandating that operators and carriers implement risk management systems for railway infrastructure and rolling stock operation. 

Non-core assets, such as kindergartens, hospitals, and other social facilities, would no longer be part of railway enterprises and could be transferred to other owners or liquidated. However, educational and research institutions involved in training railway personnel would remain part of the transport infrastructure, as they are essential for employees’ professional development.

Simplifying access for foreign electronic communications operators in Ukraine

Ukraine has committed to implementing the provisions of the European Union Regulation 2022/612 on roaming in EU mobile networks. This regulation obliges operators from EU member states to ensure access and interconnection of their networks, as mandated by the European Electronic Communications Code (Directive 2018/1972). Bill No. 12150 incorporates the Directive into Ukrainian legislation. It proposes that providers of electronic communication networks and services from the EU who do not intend to operate within Ukraine but seek access and physical or logical interconnection with Ukrainian networks should not undergo the general authorization procedure. However, suppose a European company plans to provide services in Ukraine. In that case, it must complete the authorization process, which involves submitting a notification to the National Commission for State Regulation of Electronic Communications, Radio Frequency Spectrum, and Postal Services (NCEC) to begin operations in the electronic communications field. The NCEC then registers the company in the official Register.

Providers of electronic communication networks and services include mobile network operators, internet service providers, companies engaged in telecommunications services, and those providing digital radio and television broadcasting services.

The bill grants additional powers to the regulator. Specifically, the NCEC would have the authority to require operators to provide access to their networks if it would support connectivity and interaction between service providers. When the electronic communication networks of certain operators are incompatible, the regulator could mandate that they adapt their systems to ensure stable communication between users. The bill would also require providers of electronic communication networks or owners of subscriber lines and cables to grant the NCEC access to building distribution points, mainly when these points belong to third parties (e.g., homeowners’ associations) rather than operators. These distribution points are often critical for ensuring communication services in apartment buildings, and their accessibility would enhance network availability for residents. Additionally, the regulator would have the power to independently designate endpoints for different types of networks (e.g., mobile, fiber-optic), facilitating more efficient management of Ukraine’s communication infrastructure.

What impact would this have? Consider a large internet provider with an extensive network supplying internet services across many city districts. Smaller providers may want to operate in these areas but find building their networks cost-prohibitive or technically challenging (and from a societal standpoint, constructing parallel networks may be redundant). In such a scenario, the regulator could mandate that the more significant provider allow smaller companies to connect to its network where feasible. This would enable smaller companies to offer their services, giving customers more choices.

Changes to the operation of industrial parks in Ukraine

Bill No. 12117 proposes introducing a new type of industrial park—an eco-industrial park, which would operate on the principle of “industrial symbiosis.” This approach involves the production of goods while simultaneously processing waste generated during production (excluding disposal). For other industrial parks, the bill suggests removing the restriction that their activities must be solely in the manufacturing sector. This change would allow park participants to provide IT and scientific services and produce and store electricity, although restrictions on producing other excisable goods would remain. Additionally, the bill proposes allowing the establishment of food facilities, hotels, and hostels within the park’s territory.

Currently, industrial parks are established by state or local authorities, which select a management company through a competitive process. The bill proposes allowing companies that lease suitable land plots to establish and manage industrial parks, making the company both the park initiator and the managing entity. The bill also removes the 1,000-hectare limit on the maximum park area. However, it introduces additional conditions for removing a park from the register of industrial parks, including reducing its area below the minimum (10 hectares), engaging in activities not permitted by law, the expiration of the park’s creation period, or at the initiator’s request. 

If ownership or the right to use land plots within an industrial park is transferred from the initiator to another entity (not a managing company, participant, or other park entity), the new entity automatically assumes all the initiator’s rights and obligations. The new entity must notify the authorized state body in writing within ten working days to update the information in the Register of Industrial Parks.

The bill prohibits participating companies associated with Russia, Belarus, or Iran from participating in the parks. 

The proposed changes in the bill may appear attractive, as private companies often excel at initiating and managing projects more efficiently than government bodies. However, there is a significant risk that adopting this bill could create additional “tax loopholes,” allowing any company to designate a specific area as an industrial park and demand corresponding state support or tax benefits. As previously discussed, industrial parks are rarely profitable, so their creation must be approved by the authority responsible for the area’s development and willing to bear the associated costs.

Introducing a new model for providing social services

Bill 12124 introduces an approach in which assistance would be provided to individuals or families based on their specific needs. This approach means that a family would no longer need to contact various specialists or agencies (such as social services, psychologists, employment services, etc.) separately. Instead, individuals or families facing difficult life situations or at high risk of such circumstances would receive support from multidisciplinary teams. These teams could include professionals, such as social workers, psychologists, doctors, educators, rehabilitation specialists, and others, to provide comprehensive assistance.

This method would ensure that a social worker works with each service recipient long-term. Initially, the social worker would assess the individual or family’s situation and identify their needs, then create an assistance plan specifying the necessary services to address them. Continuous monitoring would be conducted throughout this process to evaluate the achievement of the set goals and the effectiveness of the assistance provided. 

The bill also broadens the range of social service providers. Enterprises of any ownership type, including private companies (currently, social service providers can be state, communal, or non-governmental), could offer these services. Additionally, state and communal service providers would have the option to change their status from budgetary institutions to non-profit enterprises, enabling more efficient use of funds without requiring Treasury approval for each transaction.

The bill also introduces the possibility of receiving social services remotely and signing service agreements electronically using an electronic signature, which is particularly beneficial for individuals with limited mobility or those in challenging circumstances. 

Bills on new custody and divorce rules: How parental and children’s rights would change

Three new bills propose amendments to the Family Code concerning child custody after divorce and the right to divorce in special circumstances. 

Bill 12123 suggests a more flexible approach to child custody. Under the current law, if parents live separately фтв cannot agree on the residence of a minor child, the custody authority or the court may resolve the dispute. The bill proposes that the court or custody authority should be able to determine either one parent with whom the child would live or appoint an arrangement for alternating residence with each parent. The primary goal is to consider the needs and interests of the child (education, development, safety). Joint custody is regarded as the preferred option, but only when there is no evidence of violence or inappropriate behavior by either parent. 

Bill 12132 proposes that the custody and guardianship authority, at the parents’ request, establish joint custody of the child, setting a schedule and conditions for the child’s residence with each parent. The child would be expected to spend equal time with both parents (e.g., one week with the mother and one week with the father). Should one parent obstruct the other’s contact with the child, the court could transfer custody to the parent whose right to see the child was restricted. The bill retains current requirements regarding the parents’ financial situation: if one parent lacks stable income or housing, the court may deny joint custody.

Currently, divorce is not allowed during pregnancy and for a year after the birth of a child, except in cases involving criminal behavior by one parent toward the other or the child. Bill 12137 simplifies divorce if the couple does not live together and one party does not contribute to family support. 

Strengthening accountability for fraudulent pension claims and revoking privileges for prosecutors with disabilities

Bill No. 12149 proposes expanding the list of grounds for recovering excessively paid pensions. The new provisions would allow for the recovery of pensions granted based on forged documents or medical data, regardless of the outcome of an investigation or the presence of a guilty verdict in court. A pensioner would be held accountable if they knew or could have known about the illegitimacy of the pension obtained through false disability claims. Additionally, the bill proposes removing a provision from the Law of Ukraine, “On the Prosecutor’s Office,” which grants disability pensions to prosecutors with at least ten years of service who have a Group I or II disability. The bill’s norms are vaguely defined, raising questions about its feasibility and implementation.

Introducing penalties for arson of volunteer vehicles

Bill 12122 introduces a new criminal penalty for arson or deliberate damage to vehicles used for volunteer work, humanitarian aid, or supporting the Armed Forces during wartime or a state of emergency. This includes both private cars and those belonging to public organizations. Perpetrators of such crimes face 10 to 15 years of imprisonment and confiscation of property. The age of criminal responsibility for this offense starts at 14.

The government proposes allowing compulsory land seizure for military construction

Bill No. 12130 stipulates that landowners and users could be temporarily deprived of their land rights during wartime to construct military facilities (e.g., trenches, fortifications). Within 90 days after the end of martial law, the military command would decide whether to retain ownership of the land (in which case the previous owner would receive compensation) or return it to the last owner after dismantling the defensive structures.

If more than 75% of the plot is required for military structures, the owner would lose the right to use the entire land. If less than 75% is needed, only the necessary portion would be seized. A land seizure could occur in the absence of the owner, in which case documents regarding the seizure would be sent to the owner by registered mail or courier to their registered address. 

The bill does not provide for compensation to landowners during martial law, which has drawn criticism from the Ministry of Agrarian Policy. According to the explanatory note, the Ministry proposed an annual compensation of 12% of the normative monetary valuation of arable land, proportional to the area used. Based on calculations, this would require over UAH 1.1 billion. However, the Ministry of Finance rejected this proposal due to insufficient funds.

Suspending loan and leasing obligations during martial law

Bill No. 12148 aims to provide small and medium-sized enterprises with the ability to temporarily suspend financial commitments on loans and leasing agreements secured by property that has been destroyed, is located in combat zones, or occupied territories.

Borrowers and lessees could apply to stop the accrual and payment of the principal loan amount, interest, commissions, fines, and other fees during martial law and for one year after its conclusion. Additionally, the duration of loan and leasing agreements would be extended for the period during which payments are suspended. 

The draft bill includes a ban on the forced collection of debts and the enforcement of claims on pledged property for all borrowers, as well as compulsory liability for guarantors during martial law and for one year after its conclusion.

As with other similar legislative proposals, adopting this bill may be impractical. Banks and borrowers often effectively resolve situations when a borrower cannot repay a loan. Weakening the state’s protection of creditors’ rights could result in challenges within the banking sector. 

New obligations for enterprises in the fight for clean air

Bill No. 12144 proposes that enterprises emitting pollutants into the atmosphere should be required to plant one deciduous tree for every three tons of emissions. Local authorities would determine the locations for planting. Another bill (No. 12145) suggests increasing fines for failing to implement atmospheric protection measures (including tree planting) from UAH 85–122 (5–8 non-taxable minimum incomes) to UAH 510,000–765,000 (30,000–45,000 non-taxable minimum incomes).

Discharging service members with limited fitness due to health conditions

Bill 12147 proposes mobilized military personnel under 25 should be discharged into the reserve upon their request during wartime. This provision would apply to men who were drafted before reaching 25 due to a legal discrepancy that currently permits the mobilization of young men deemed unfit for military service in peacetime or with limited fitness during wartime.

Expanding grounds for military discharge and granting deferrals during mobilization

Bill No. 12133 clarifies certain norms related to discharge from military service and deferrals during mobilization. Existing legislation does not include provisions for the discharge of civilians who were held captive. The bill addresses the issue by equating the rights of civilian captives with those of prisoners of war, allowing them to be discharged from military service upon their return from captivity.

The bill also expands the grounds for discharge due to family circumstances. This includes caring for sick relatives, such as children or parents, who require constant care. Currently, such circumstances are only grounds for deferral. Additionally, the bill proposes that individuals whose relatives died, went missing, or became disabled during military service should be exempt from conscription during mobilization.  

The bill proposes simplifying the conditions for obtaining deferrals for parents of children with disabilities. Currently, a deferral is not granted if other relatives can care for the child. The bill proposes allowing parents of such children to be discharged from military service regardless of the presence of other relatives obligated to support the child.

The term “half-sibling” was previously removed from the regulations on discharge and deferral. The bill reintroduces this category to prevent discrimination between full and half-siblings. 

The bill also proposes that Ukrainian diplomatic and consular institutions be required to keep records of citizens temporarily residing abroad and assist with their return in the event of mobilization. However, there are no plans to maintain records of the citizens living abroad permanently.