On Draft Law No. 13554 of July 28, 2025

The Draft Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine to Simplify Business Conditions” was developed by the Cabinet of Ministers of Ukraine and submitted to the Verkhovna Rada of Ukraine (Reg. No. 13554 of July 28, 2025). Its purpose is to create a favorable environment for business development and reduce the administrative burden on entrepreneurs by abolishing 63 ineffective, institutionally outdated, irrelevant, and burdensome state regulatory instruments of economic activity, including in the areas of air protection, industrial explosives, and foreign economic activity.

The Verkhovna Rada Committee on Economic Development was designated as the lead committee for the preparation and preliminary review of this draft law, while 20 (twenty) other committees were tasked with preparing and submitting their conclusions to the lead committee.

As of today, only three committees of the Verkhovna Rada of Ukraine have provided their conclusions:

• – The Committee on Ukraine’s Integration into the European Union stated in its conclusion that “the Draft Law does not contradict Ukraine’s international legal obligations in the field of European integration or EU law, but requires further revision in respect of certain provisions of Ukrainian legislation.”

• – The Committee on Digital Transformation recommended that the Committee on Economic Development take into account the comments and proposals expressed during the preparation and consideration of the Draft Law “On Amendments to Certain Legislative Acts of Ukraine to Simplify Business Conditions.”
• – The Committee on Environmental Policy and Nature Management recommended that the Committee on Economic Development propose to the Verkhovna Rada of Ukraine that Draft Law No. 13554 of July 28, 2025, be returned for revision.

Meanwhile, the Ministry of Justice, Ministry of Education and Science, Ministry of Finance, Ministry of Health, State Nuclear Regulatory Inspectorate, and State Environmental Inspectorate reported no comments or proposals on the draft law. The Ministry of Economy, Ministry of Environment and Agriculture, Ministry for Communities and Territories Development, and the State Agency on Energy Efficiency and Energy Saving supported its adoption.

The Ministry of Internal Affairs opposed the deletion of paragraph seven of Article 5 of the Law of Ukraine “On Handling Industrial Explosives”, which grants authority to the State Labor Service of Ukraine to issue certificates for the purchase and storage of industrial explosives. The Ministry emphasized that adoption of the draft law in its current version would in practice result in the absence of state control by the National Police of Ukraine during the issuance of permits, specifically regarding the type and conditions of work involving explosives, the amount purchased, storage capacity, remaining quantities at the time of purchase, and compliance of storage facilities with Safety Rules.

The State Regulatory Service noted that the absence of a regulatory impact analysis prevents a comprehensive assessment of both the problem itself and the effectiveness of the proposed solutions.

The Ministry of Energy, State Water Resources Agency, State Forest Resources Agency, State Agency for Exclusion Zone Management, State Service of Geology and Subsoil, State Service on Food Safety and Consumer Protection, and the Joint Stock Company “National Nuclear Energy Generating Company Energoatom” also submitted their comments and additions.

In conclusion, the absence of a coordinated and consolidated position on the proposed provisions of the draft law—particularly regarding the appropriateness of excluding certain instruments of state regulation of economic activity—may very likely lead to a significant delay in the adoption of the Draft Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine to Simplify Business Conditions.”

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