Important Draft Laws. Issue 46: Cryptocurrencies in NBU Reserves, Liability for Abuse by Territorial Recruitment Centers, and Fines for Noisy Driving in the City

Mandatory localization in public and defense procurement

Currently, the Law on Public Procurement requires state buyers to purchase about 100 items of machinery and equipment—each worth over UAH 200,000—only if they are at least partially produced in Ukraine using Ukrainian components. The Ministry of Economy defines this list and includes generators, transformers, medical and special-purpose vehicles, turbines, pumps, compressors, mining and construction machinery, and more. The minimum localization requirement for participation in such procurements increases by 5% yearly, rising from 10% in 2022 to 40% by 2028. The manufacturer calculates the localization degree using a formula approved by the Cabinet of Ministers.

Bill No. 13392 aims to raise the threshold for localized procurement from UAH 200,000 to UAH 1 million and to establish that this procurement regime—applicable to goods from the list above—would remain in effect until December 31, 2032. The bill also proposes revising the formula for calculating localization: instead of using total cost (i.e., all expenses including administrative, logistics, rent, etc.), it would be based on production cost—meaning only the direct costs of manufacturing the product (such as materials, raw inputs, components, equipment operation, wages of production staff, and so on). This would narrow the calculation base and make the requirements for Ukrainian content more stringent. If, after a contract is signed, the delivered product does not meet the declared localization level (as determined through procurement monitoring by the State Audit Service), the supplier must pay a fine of no less than 25% of the contract value.

A separate bill provision addresses defense procurement during martial law and for five years thereafter. If one bidder offers a localized product and another provides an imported one, the state would apply a discount coefficient of 0.75 to the localized item when evaluating bids, making it appear less expensive. For example, if the product costs UAH 1 million, its price would be considered UAH 750,000 for comparison purposes. This gives the localized product an advantage in the bid ranking. In this way, the state aims to incentivize the selection of goods with a Ukrainian component.

Including virtual assets in Ukraine’s gold and foreign currency reserves

The Law on the National Bank of Ukraine defines the list of assets that may be included in the country’s gold and foreign currency reserves. These include monetary gold, special drawing rights, foreign currency, securities (excluding shares), and other internationally recognized reserve assets—provided they are reliable and liquid.

Bill No. 13356 proposes adding virtual assets to this list. This would allow the National Bank to include them in the structure of its gold and foreign currency reserves. In addition, the National Bank would gain the right to purchase virtual assets, generate income from them, and receive them from international financial institutions, foreign central banks, and other lenders.

Virtual assets are high-risk instruments; in our view, including them in the NBU’s reserves would be inappropriate.

Criminal liability for Territorial Recruitment Center staff for abuse, violence, and violations during mobilization

Bill No. 13365 proposes establishing criminal penalties for staff and military personnel from Territorial Recruitment Centers who ignore emergency medical calls, use force, damage property, or threaten civilians during mobilization. For example, if someone becomes seriously ill on the premises of a recruitment center and an ambulance is not called in time, the responsible staff could face penalties ranging from a fine of up to 100,000 subsistence minimums (approximately UAH 300 million) to correctional labor, or imprisonment for up to three years—depending on the consequences. Physical force or threats would be punishable by fines of up to 250,000 subsistence minimums (around UAH 750 million), imprisonment for up to seven years, demotion in rank, and a ban on holding certain positions, with the specific punishment determined by the court.

Another bill, No. 13393, also proposes liability for Territorial Recruitment Center employees who exceed their authority during mobilization. For instance, if an official knowingly acts beyond the limits of their authority and violates a person’s rights, they could face imprisonment for three to ten years, depending on the severity of the consequences. This bill also introduces criminal liability for medical professionals who violate procedures during conscription medical examinations—for example, by declaring someone fit for service despite health issues or unjustifiably exempting someone from duty. Such violations would be punishable by imprisonment for two to eight years.

Mandatory video recording of medical examinations is also proposed. However, the bill does not specify who would be responsible for recording the footage. It does state that the Territorial Recruitment Center must retain the recordings for at least one year and attach them to the individual’s personnel file. The person who underwent the examination, law enforcement, or a court could obtain a copy of the video.

Preferential university admission during wartime

The Law on Higher Education allows the Ministry of Education and Science (MES), from 2022 through 2025, to annually—effectively in response to martial law—determine categories of applicants eligible for preferential admission without being bound by standard legal provisions (for example, by permitting admission without the National Multi-Subject Test or under specific quotas). Currently, 10–40% of publicly funded university places are allocated to applicants registered in temporarily occupied territories (TOT) or settlements along the front line. These applicants are admitted based on the results of external independent testing, which in 2025 will take the form of the National Multi-Subject Test (NMT).

Bill No. 13361 proposes extending this special admission procedure beyond 2025—for the entire duration of martial law. Under this procedure, applicants from TOT or combat zones would be allowed to compete for admission based on an interview or entrance exam conducted by the university without being required to submit results from external independent testing or the NMT. This rule would apply specifically to applicants to displaced higher education institutions.

A similar provision is included in Bill No. 13361-1,

 which also permits applicants from TOT and active combat zones to participate in the admissions process based on an interview or university-administered exam, but for any higher education institution, not only displaced ones. Preferential admission under this bill would be available to individuals under 24 or over 60 from TOT or front-line areas applying on a tuition-paying basis. The bill would also authorize the MES to define additional categories of applicants eligible for preferential treatment.

Introducing scientific and methodological support in the field of physical culture and sports

Bill No. 13386 proposes amending the Law on Physical Culture and Sports to include not only scientific support but also scientific and methodological support (defined as a set of organizational, scientific-communicative, and methodological measures aimed at implementing scientific and technological advances and best practices to ensure the effective functioning of the sector). Research and methodological support would become integral to preparing national team athletes. This means that training programs, athlete selection, medical services, recovery, and rehabilitation should be based not only on the practical experience of coaches but also on the findings of scientific research, modern methodologies, and expert recommendations from the fields of physiology, medicine, psychology, and related disciplines.

According to the bill, funding for this type of support may come from clients, grants, and other sources permitted by law. The Ministry of Youth and Sports would define the research topics funded from the state budget and oversee the implementation of such projects.

Granting defendants the right to defer or pay court fees in installments

Under current law, only plaintiffs—individuals—may be granted a deferral or installment plan for paying court fees. To qualify, a plaintiff must demonstrate that the court fee exceeds 5% of their annual income or that they fall into a preferential category—for example, being a service member, a single parent, or a member of a low-income household. Courts may also allow such relief if the case concerns social, labor, or family rights or compensation for harm to health.

Bill No. 13389 proposes extending these same provisions to defendants who are individuals. If a defendant is in comparable life circumstances, or the court fee would impose an excessive burden, they would also be entitled to petition the court for a deferral or installment payment arrangement.

Increasing fines for noise violations in public spaces

Bill No. 13391 proposes raising fines for violating noise regulations in populated areas and public spaces. Individuals face fines of UAH 85–255, while officials or business owners may be fined UAH 255–510. Suppose the violation is repeated within a year. In that case, individuals may be fined UAH 255–510, and officials or entrepreneurs—UAH 850–2,550—with the possibility of confiscating the noise source (such as loudspeakers, fireworks, or modified vehicles).

Under the bill, fines would increase to UAH 510–1,700 for individuals and UAH 1,700–5,100 for officials or entrepreneurs. In cases of repeated violations within a year—or if the offense occurs during martial law—fines would range from UAH 1,020 to 3,400 for individuals and from UAH 3,400 to 8,500 for officials and entrepreneurs. In such cases, the equipment generating the noise may also be confiscated.

Local authorities, the police, and public health and epidemiological agencies are responsible for monitoring compliance with noise limits. They may record violations using specialized instruments, respond to citizen complaints, and issue administrative offense reports.

The bill’s sponsors justify the proposed increase in fines by arguing that the current penalties are too lenient and fail to deter violators—particularly owners of vehicles equipped with loud technical devices.

Increasing fines for violations of water legislation 

Bill No. 13364 proposes raising fines for various violations related to water use. These include unauthorized use of rivers and lakes, water pollution, operation of facilities without treatment systems, destruction of riverbeds, illegal water intake, restricting access to water bodies, damaging hydraulic structures, and similar offenses. The bill would also increase liability for marine pollution from vessels, hazardous discharges, and failure to report accidental spills.

Currently, most of these violations are punishable by fines ranging from UAH 51 to 119 for individuals and from UAH 85 to 136 for officials, such as company executives or responsible staff, including chief engineers, environmental officers, or ship captains. In the maritime sector, fines range from UAH 340 to 1,190. The bill would raise these amounts to UAH 1,700–3,400 for individuals and UAH 3,400–5,100 for officials.

Restricting access to rivers, lakes, seas, or islands is currently punishable by fines of UAH 3,400–6,800 for individuals and UAH 6,800–11,900 for officials. For repeat violations within a year, the fine may reach UAH 17,000. The bill would retain these amounts but introduce a new offense—conducting economic activities that breach regulations in water protection zones or on land adjacent to water bodies. This includes construction, land cultivation, material storage, or other activities that are prohibited or restricted near water. For damaging dams, locks, pumping stations, or other hydraulic structures—as well as for violating the operation of artificial water bodies such as ponds or reservoirs—current fines are UAH 850–1,700 for individuals and UAH 1,700–3,400 for officials. The bill would double these amounts.

The fines for burning grass or leaves in coastal zones and islands would remain unchanged—UAH 3,060–6,120 for individuals and UAH 15,300–21,420 for officials. If such actions occur in protected natural areas, the fines would increase to UAH 6,120–12,240 and UAH 21,420–30,600, respectively.