Reform Index 206: Compensation for Ship Owners for Losses Associated with War Risks, and the Law on the Quality of Higher Education

Reform Index 206: Compensation for Ship Owners for Losses Associated with War Risks, and the Law on the Quality of Higher Education

Photo: / S_Razvodovskij
13 July 2023

The Reform Index’s 206th issue covers the period from May 22 to June 4 and incorporates four reforms. The Index’s overall rating is +0.5 points on a scale ranging from -5 to +5 (in the previous issue, its value was +0.2 points). 

Chart 1. Reform Index Dynamics

Chart 2. Reform Index and its components in the current round

The procedure for compensation for ship owners’ losses due to war risks in case of denial by the insurer to make payments, +1 point

At the end of May, the Cabinet of Ministers adopted Resolution No. 548, intended to boost maritime transportation to and from Ukraine. In the event that an insurer refuses to compensate the operator or owner of a vessel for damage caused by Russia’s invasion of Ukraine, they may apply to the Ministry for Communities, Territories and Infrastructure Development within 90 days (but no later than December 1, 2023*) to seek compensation. Compensation can be obtained for the destruction or loss of a vessel, cargo spoilage, expenses related to environmental cleanup, fines for environmental pollution, or harm to the lives and health of passengers or crew members.

The compensation cannot exceed the insurance coverage provided by the existing insurance contract or P&I policy, as well as the remaining UAH 20 billion allocated in the state budget 2023.

If the war does not end by the end of 2023, the application deadlines will likely be extended, and the necessary expenses will be included in the budget for the following year.

*The Reform Index does not evaluate events with a duration of less than a year. However, there is a high likelihood that the effectiveness of this resolution will be extended to the following year, so we have included it in the Reform Index. If this does not occur, the resolution will be excluded from the Reform Index in the next year based on the annual audit results, and the index will be recalculated accordingly.

Information about the Reforms Index project, the list of Index experts and the database of the regulations assessed are available here.

The Law on Ensuring the Quality of Higher Education, +1 point

Law 3062-IX, signed by the President at the end of May, introduces the concept of post-accreditation monitoring into Ukrainian legislation. This means that the body responsible for making accreditation decisions (the National Agency for Higher Education Quality Assurance, NAHEQA) now must evaluate whether an educational institution has implemented the recommendations provided by the Agency based on the accreditation results and whether it meets all the necessary criteria. Post-accreditation monitoring is conducted free of charge.

If, during the monitoring process, it is found that an educational institution does not meet the established criteria, they are provided with explanations/warnings regarding the need to comply with them within a certain period. Otherwise, NAHEQA may suspend the accreditation certificate of the educational program in which violations are identified.

Another significant change is the establishment of the committees on ethics (which address issues of academic integrity violations and make recommendations to NAHEQA) and on activities of specialized scientific councils (which handle complaints regarding violations in the procedure for defending a doctoral dissertation). Additionally, an Appeals Board is created to review appeals against decisions made by NAHEQA. The Board will consist of 5 members who hold higher education, academic degrees, or scientific titles and have at least five years of experience in the field of higher education quality assurance. Members of the Appeals Board are elected for a term of 2 years and cannot serve in these positions for more than two terms. Members of NAHEQA and its sectoral expert councils cannot be part of the Appeals Board.

Furthermore, the law stipulates that accreditation certificates of educational programs issued by foreign accreditation agencies will be recognized in Ukraine (the list of agencies will be determined by the Cabinet of Ministers).

Although Reform Index experts generally assessed this law positively, they highlighted several significant associated risks. Therefore, the actual outcome will depend on its implementation.

Chart 3. Value of Reform Index components and number of events

Reform Index from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in six areas: Governance, Public Finance, Monetary system, Business Environment, Energy, Human Capital.

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