Important Draft Laws. Issue 54: A New Industrial Policy, Oversight of Biological Threats, and a Higher Tax on Bank Profits

Among the key proposals are a renewed industrial policy introducing the concepts of “green industry,” “national champions,” and an offset-contract mechanism, as well as the creation of an integrated system for monitoring viruses and bacteria. Lawmakers also propose revising the rules on payments to service members held in captivity and reinstating in 2026 the 50% tax on bank profits that applied in 2023–2024 (it was reduced to 25% in 2025). There are also proposals to rename the kopiika as either the “shah” or the “pishka,” and to add the phrase “We trust in God” to Ukrainian banknotes.

The bill on industrial policy and the status of national champions

Bill No. 11331-d sets out a framework for a new state industrial policy. It outlines both existing tools for supporting industrial enterprises—such as technoparks (referred to in the bill as “technology implementation zones”) and industrial parks (“industrial investment zones” in the bill) — and support through public procurement, as well as several new ones.

The most notable of the new policy tools is the introduction of the status of a “national industrial champion.” This would be an enterprise (or group of enterprises) capable of competing in global markets and playing a key role in the development of the national economy. The Cabinet of Ministers would determine the criteria, selection procedure, and list of such “champions,” as well as decide on the provision of state support. This approach could strengthen support for strategic enterprises but also carries significant risks of non-transparent selection, overconcentration of resources, and unequal treatment of other market participants.

The bill details the use of offset contracts—a mechanism for compensating the state for large-scale purchases from foreign companies. These contracts are already mentioned in the Law on Defense Procurement, and the mechanism itself is defined in the Cabinet of Ministers’ Resolution On the Procedure for Concluding Compensation (Offset) Contracts; however, the bill would regulate them at the statutory level. The draft specifies that for defense-related purchases of goods, works, or services exceeding €5 million, Ukraine would be required to receive compensation from the foreign supplier. This compensation could take the form of establishing production in Ukraine, transferring technology, training personnel, or involving domestic companies in the manufacturing process. Such compensation would be formalized in a separate offset contract, overseen by an offset commission to be established by the Cabinet of Ministers.

Although the bill lays out the framework for a new industrial policy, it does not include specific state commitments regarding financing volumes, lists of incentives, or other support instruments. Most tools—such as innovation support, industrial parks, special contracts with investors, and defense offsets—are already provided for by various laws; however, this proposal would consolidate them within a single policy framework. Implementation would require the adoption of numerous subordinate acts, along with the development of detailed criteria and procedures. Overall, support for individual sectors or enterprises would carry significant risks of inefficient spending and corruption. Under current conditions, an essential instrument of support could be war-risk insurance, which has been under discussion for some time.

Introduction of a unified system for monitoring the use of biological agents and ensuring biological safety

The draft law On Biological Safety and Biological Protection (Bill No. 14091) proposes establishing an integrated system in Ukraine to regulate all actions involving the use of biological materials that are potentially hazardous to human, animal, or plant health, or to the environment. These include microorganisms, bacteria, viruses, toxins, and substances created through biotechnology. Collectively, they are referred to as biological agents.

The draft also addresses collections of microorganisms—specifically assembled samples of bacteria, viruses, or other microbes stored in laboratories for research, diagnostics, or the development of new medicines. Some of these samples would be transferred to national depositories—institutions responsible for their long-term preservation and care.

Currently, the handling of microorganisms in Ukraine is regulated by separate departmental acts—for example, the 1995 Ministry of Health Regulation on Strain Patenting and the 1998 Cabinet of Ministers’ Resolution on the Development of the State System for Strain Depository Management. However, no framework law defines the principles for handling microorganisms, delineates the responsibilities of government bodies and enterprises, or establishes procedures for the operation of national depositories. If adopted, Bill No. 14091 would fill this legislative gap.

To implement this law, the Ministry of Health would need to approve biosafety standards that set mandatory requirements for laboratories, equipment, sample transportation, storage conditions, and access to biological agents. These standards would ensure control at all stages of handling biological agents to prevent leaks, accidents, or unauthorized use.

The draft divides biological agents into four risk groups:

• Group 1— poses minimal or no risk to humans.
• Group 2—may cause disease, but generally does not pose a significant threat to the public.
• Group 3—causes severe diseases that may spread, but effective treatment or preventive measures are available.
• Group 4—the most dangerous, often untreatable, capable of rapid transmission, and likely to cause outbreaks.

To work with biological agents of risk groups 2–4, licensing from the Ministry of Health would be mandatory. To obtain a license, applicants must submit documents confirming compliance with safety requirements and the availability of qualified personnel, equipment, and facilities. Employees who would handle agents from risk groups 3–4 would be required to undergo a special background check by the Security Service of Ukraine (SBU) to verify that they have no criminal record or links to terrorist or criminal organizations before being granted clearance to work.

All institutions working with biological agents or engaging in biosynthetic activity would be entered into a unified register of entities administered by the authorized body in the field of biological safety—likely the Ministry of Health or a structure to be established by it. This would enable monitoring of who conducts such activities and to what extent.

The bill proposes treating biological waste—including sample residues, materials left after research, used protective equipment, and contaminated substances—as a category of medical waste to be disposed of under relevant regulations, thereby preventing infection and protecting the environment.

Changes in labor relations, civil service, and the powers of military administrations during martial law

The alternative bill (No. 14063-1) partially mirrors the main Bill No. 14063, which we discussed in the previous review. That bill would expand the grounds for dismissing employees if they cannot be contacted or if the employer has lost access to the workplace; would allow the suspension of employment contracts for the entire period of martial law; and would defer settlements with employees from occupied territories until those territories are liberated.

Bill No. 14063-1 has a broader scope. It covers not only employees in the private sector but also civil servants and officials of local self-government bodies. During martial law, the draft would allow for the temporary suspension (with subsequent reinstatement) of civil servants who are unable to perform their duties due to hostilities or are unreachable. It would also authorize the head of a military administration not only to dismiss officials of local self-government bodies (as the main bill proposes) but also to suspend their powers, subject to approval by the regional administration and the Ministry for Communities, Territories and Infrastructure Development.

Changes in payments to service members in captivity

Bill No. 14081 proposes new rules for situations in which a service member is taken prisoner, goes missing, or is interned in a neutral state (when a service member ends up on the territory of a country not involved in the war and that country is obliged to detain them—that is, not to allow their return to the front but also not to treat them as a prisoner of war). If the service member has previously written a personal instruction—a document specifying to whom their salary should be transferred—payments would be made in accordance with it (this rule is already in effect). If there is no such instruction, part of the funds (up to 50%) would be transferred to close relatives, while the rest would remain in the service member’s account.

The amount of monetary support that could be distributed among a spouse, children (through legal representatives), or dependent parents would not exceed 50% of the salary after taxes. If none of these persons are eligible, a portion of the funds—up to 20%—could be received by adult children, siblings, or other dependents of the service member. The bill clarifies these categories: the list in the current law was shorter and, for example, did not include dependents or siblings under the service member’s care.

For the first time, the bill would introduce a rule for cases where there is neither a personal instruction nor any relatives. In such situations, the service member’s monetary support would not be lost but deposited into a special bank account—a designated account opened in the service member’s name, where the military unit would automatically accumulate their salary. If relatives entitled to payments later come forward, but a portion of the funds has already been paid to another party, they could agree on a division or resolve the matter in court. Previously, the law did not address such cases, meaning there was no mechanism for resolving disputes among recipients.

Another new provision would guarantee that the monetary support of a service member who is in captivity or missing would be indexed—that is, increased to reflect inflation. This was not explicitly provided for under the current legislation.

If a service member is officially declared deceased, their salary is included in the inheritance. The bill would also include in the inheritance any unpaid annual financial assistance owed to prisoners of war.

Enhancement of the identification of deceased and missing persons during martial law

Bill No. 14095 would amend the rules governing the use of fingerprint templates stored in the Unified State Demographic Register. Currently, after a document is issued, the fingerprints (digital images) are removed from the register and destroyed. In contrast, their digital templates (which cannot be converted back into images) may be used only for personal identification and document issuance. The new version would enable these templates to be used to identify the bodies of the deceased, and in some instances, in the interest of national security.

Additionally, the bill would permit the involvement of foreign specialists in identifying the bodies or remains of the deceased. During martial law and for three years after its conclusion, foreign experts or international organizations authorized to conduct molecular genetic research would be permitted to collect biological samples from close relatives of missing persons and from unidentified bodies or remains. This measure would help expedite the identification of the deceased and enhance the process of locating missing persons.

A foreign or international laboratory would conduct genetic testing on such samples, and its results would be entered into Ukraine’s electronic register of genomic information. The same register would also include the findings of studies conducted by Ukrainian specialists, including personnel of the National Police.

Each registration record for an unidentified body or for a missing person’s relative would include additional information: the name of the laboratory, the number and date of the report or certificate, and the designation and number of the examined object. The bill would also introduce a new mandatory field—a unique code for the body or remains. This special identifier would enable the recording of all data related to the body, samples, studies, and results, thereby helping to prevent errors and duplication in the database.

Introduction of an increased corporate income tax rate for banks in 2026

Bill No. 14097 proposes setting a base corporate income tax rate of 50% for banks for 2026, as was the case in 2023 and 2024. Currently, the rate for banks and other financial institutions is 25%, while for various enterprises, it is 18%. The increased tax rate for banks and financial companies was introduced to raise additional budget revenue that could be used for defense.

In addition, the bill would provide that in 2026 (as in 2023–2024), banks could not reduce their taxable profit by previously accumulated losses (typically, enterprises have the right to carry forward past losses to reduce their tax burden). At the same time, these losses would not be canceled—starting January 1, 2027, banks would again be able to offset them against their profits.

Increased funding for security and defense

At present, Ukraine’s projected state budget revenues for 2025 amount to UAH 2.48 trillion, while expenditures exceed UAH 4.33 trillion. Loans from the budget are planned at more than UAH 51 billion—funds the state temporarily lends to state and municipal enterprises, local budgets, and borrowers under government programs supporting business, the agricultural sector, and reconstruction—while the ceiling on the budget deficit stands at nearly UAH 1.89 trillion. The maximum level of public debt is set at more than UAH 8.39 trillion.

Bill No. 14103 (adopted on October 21) envisions an increase in the key budget indicators for 2025. In particular, revenues are expected to increase by UAH 20 billion, and expenditures are expected to exceed UAH 317 billion. The volume of budget lending is also set to decrease, while the ceiling on the budget deficit will increase by nearly UAH 300 billion. The maximum level of public debt is projected to exceed UAH 8.69 trillion. As an exception to the provisions of the Budget Code, the law allows the Cabinet of Ministers to reduce expenditures and reallocate funds to the Ministry of Defense in November–December 2025 without prior approval from the Parliament’s Budget Committee.

Notification of a person about a change of suspicion if a case has been divided into separate parts

Sometimes, during an investigation, a single criminal case is divided into several parts—for example, when one suspect is involved in multiple episodes, or when some suspects have not yet been identified. In such cases, the investigative materials concerning a specific person or episode are separated into a new proceeding—that is, a new case is opened under a new number. However, under current law, a person who has already been notified of suspicion in the original case does not have to be informed of this, and prosecutors often take advantage of that gap.

This can result in a situation where a person is unaware that a separate investigation with a new case number is now being conducted against them and does not understand their rights, the basis for their suspicion, or the materials that may be used in court.

Bill No. 14085 would change this. If investigators or prosecutors were to divide the case materials and open a new proceeding, the suspect would have to be served with another notice (the bill does not specify the exact procedure). This notice indicates that the previous suspicion has been modified or confirmed in the new case. Such a requirement would help prevent situations in which a person is unaware of the case under which they are being investigated.

These changes would make the investigative process more transparent and equitable. They would enable the defense to receive timely information about all investigative actions and to prepare its position for court.

Amendments to land legislation: electronic system, confiscated plots, and new rules for investors

Bill No. 14087 would establish, within the State Land Cadastre, an electronic system through which government bodies, land management organizations, citizens, and companies would interact with one another. Through this system, users would be able to submit, approve, and receive land documentation; file applications for the privatization or leasing of plots; obtain permits for the preparation of documentation; coordinate and approve land management documents; conclude lease agreements; and receive official responses explaining the reasons for any refusals.

Additionally, the bill would define the procedure for handling land plots confiscated by court decision or transferred to the state under specific circumstances. Such plots could be sold through open land auctions.

Part of the amendments concerns financing the preparation of land for sale. The bill would allow preparatory work—such as land valuation and documentation—to be funded not only by the auction organizer but also by the contractors performing the work. The auction winner would later reimburse these expenses. This measure would help facilitate land auctions at a time when government budgets are constrained.

The draft would also expand the list of facilities that could be built on land outside populated areas without an approved urban development plan. These would include military installations, railway stations, communications infrastructure, and religious buildings. Such facilities would be permitted based on an opinion issued by the local architectural authority.

Change of the name of the kopiika in legislation

Bill No. 14093 would replace the term “kopiika” with “shah” in the Tax Code of Ukraine. Accordingly, all calculations previously denominated in hryvnias and kopiikas would henceforth be made in hryvnias and shahs. The change would be purely technical and would not affect how taxes are calculated. An accompanying bill (No. 14094) would amend several other laws—specifically the Laws on the National Bank, on Pension Provision, and on Capital Markets—to substitute “kopiika” with “shah.” The goal is to remove Soviet-era terminology from financial legislation. However, Ukrainians are unlikely to notice the change in everyday life, since coins with denominations below one hryvnia are rarely used in cash transactions.

The alternative bill (No. 14093-1) would replace kopiikas with “pishkas” in several laws. Certain denominations would receive additional names: “Powerful Pishka” (10), “Unbreakable Pishka” (25), and “Pishka of Resilience” (50).

Bill No. 14102 would amend Article 33 of the Law on the National Bank of Ukraine to allow the phrase “We trust in God” to appear on Ukrainian banknotes starting in 2026. The phrase would serve as a new design element on currency notes.