MP Yaroslav Zhelezniak: Developments in Ukraine’s parliament on economic reforms, international obligations — Issue 62

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Editor's note: This is issue 62 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukrainian Economy in Brief" newsletter, covering events from June 24-June 30, 2024. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs. The Kyiv Independent is republishing with permission.

Obligations to the EU

The draft law on the restart of the Bureau of Economic Security came into effect on time.

On June 28, President Volodymyr Zelensky signed draft law #10439 on the restart of the Bureau of Economic Security. On June 29, the text of the draft law was published in the state newspaper Holos Ukrainy (Voice of Ukraine) which means that the draft law has already came into effect. According to the Ukraine Plan within the Ukraine Facility financial mechanism, the deadline for this draft law to be adopted and to come into effect was set for the end-June.

The Cabinet of Ministers approved the Budget Declaration and another one step from the "Ukraine Plan." On June 28, the Cabinet of Ministers approved the Budget Declaration for 2025-2027 with the macroeconomic forecasts, main budget indicators and priorities as well as evaluation of fiscal risks. To approve and submit the Budget Declaration to the Parliament is one of the conditionalities of the "Ukraine Plan" for the end of the second quarter of 2024.

However, as of the beginning of Monday, the document wasn't submitted to the Verkhovna Rada.

Ukraine receives £2.2 billion from IMF "These funds will help finance critical budget expenditures, social benefits, and the salaries of doctors and teachers," Prime Minister Denys Shmyhal said.

Moreover, during its meeting on June 28, the cabinet also adopted the National Mine Action Strategy until 2033 which is also one of the requirements under the "Ukraine Plan," the deadline for which was set for the end of the second quarter 2024. Next plenary week the Verkhovna Rada will consider several draft laws from the Ukraine Plan.

During the next plenary week scheduled for July 9-12 the Parliament will consider in the first reading draft law #11063-d on the State Agrarian Register and the draft law #11310 on the basic principles of state climate policy. Moreover, the Verkhovna Rada will consider the draft law #11355 on prevention and control of industrial pollution in the second reading. As we reported in Issue 61, the draft law #11355 was submitted to replace the draft law #6004-d which was accidentally rejected due to the lack of MPs from the presidential faction during voting.

Other key economic issues

The Verkhovna Rada will try to forbid SOEs to hide prices of procurements for construction works.

The parliamentarian agenda for July 9-12 includes draft law #11057 on changes in public procurement procedures for the state-owned enterprises submitted by Anastasiia Radina, Head of the Anti-Corruption Policy Committee, and other lawmakers including myself. It will be considered in the first reading. The draft law #11057 obliges the state contracting authorities to publish the detailed cost estimate of construction works under the signed contracts.

As we reported in Issue 48, currently several provisions, including those adopted due to the martial law, give SOEs a right not to show the detailed cost estimate within the procurements related to construction works. Numerous journalists' investigations show that it's an opportunity for corruption and fraud as the SOEs often buy overpriced construction materials. For example, Energoatom purchased concrete for construction at twice the market price.

The speaker of the parliament announced potential voting for the new ministers. Ruslan Stefanchuk, speaker of the Verkhovna Rada, said that at the beginning of the next plenary week the parliament may already consider appointments to the Cabinet of Ministers of Ukraine. As we reported earlier, there are still just acting ministers in the Infrastructure Ministry and the Regional Development Ministry.

Ukraine Business Roundup -- Dispatch from Ukraine Recovery Conference in Berlin

The following is the June 12, 2024 edition of our Ukraine Business Roundup weekly newsletter. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here. Ukraine's annual recovery conference happened this week in Berlin, but instead of talks of grand plans to

As we reported in Issue 58, the most likely candidates for positions in the cabinet of ministers are Oleksiy Kuleba, deputy head of the Office of the President of Ukraine, and Oleksiy Chernyshov, CEO of Naftogaz.

Chernyshov may probably become the deputy prime minister for reconstruction. However, such a long delay with these appointments could mean the preparation of bigger staff changes. The Supreme Court cancelled the decision to dismiss the ex-dead of the Accounting Chamber.

The Supreme Court recognized this as illegal and cancelled the resolution of the Verkhovna Rada on the dismissal of the head of the Accounting Chamber Valerii Patskan which was adopted in 2023. The decision has not yet entered into effect, because the Verkhovna Rada has the opportunity to challenge it in the Grand Chamber of the Supreme Court of Ukraine.

EXPLAINER: Does Ukraine have political opposition? Elections are suspended.

Martial law has granted new wartime powers to the president's office. The largest opposition party in parliament was banned after the full-scale invasion. More than two years after Russia's full-scale invasion, Ukraine's political opposition has diminished, but continues to...

Yaroslav Zhelezniak is the first deputy head of Ukraine's Parliamentary Committee on Finance, Tax, and Customs Policy.

He is also the co-chair of the Ukrainian Chapter of the Parliamentary Network of the World Bank and International Monetary Fund.Read more