On 7 October 2025, the Parliament of Ukraine adopted draft law No. 14030 “On the Basic Principles of State Supervision (Control)” in its first reading.
This is an important step towards transitioning to a modern service model of state supervision – one that is transparent, effective and based on partnership with business.
Why is state supervision reform needed?
Ukraine still has an outdated system of state supervision, which creates unnecessary barriers and financial costs for business. Its approaches do not meet modern European standards and do not take into account the level of risk in the activities of enterprises.
Draft law No. 14030 introduces a new logic into the state supervision system, based on:
- a risk-oriented approach;
- digitalisation of processes;
- transparency and accountability of inspections.
What will change for businesses?
- Risk-based approach: the frequency and duration of inspections will depend on the degree of risk of the enterprise’s activities.
- Audit instead of fines: businesses will be able to request an audit on their own initiative to identify and correct deficiencies without sanctions.
- Voluntary insurance: entrepreneurs with a low degree of risk will be able to reduce the number of scheduled inspections completely.
- Digital recording: all inspections must be recorded on audio and video to avoid pressure and abuse.
- Public councils at control bodies: businesses will have a mechanism for responding to unlawful actions by inspectors.
- Simplification of appeals against decisions of control bodies: businesses will be able to appeal decisions administratively by applying to the State Regulatory Service – without going to court, without incurring court fees, and much faster.
Thanks to these changes, businesses will be able to save more than UAH 1.5 billion annually, according to BRDO estimates.
Why is the adoption of the bill important?
The adoption of draft law No. 14030 is one of the conditions for the implementation of the Ukraine Facility plan, which provides for up to €50 billion in macro-financial support from the EU in 2023-2027. The draft law harmonises Ukrainian legislation with EU standards and introduces a transparent European model of control based on trust and partnership.
What does BRDO have to do with this?
The Better Regulation Delivery Office (BRDO) has been involved in the reform of state supervision and control from the very beginning. BRDO lawyers participated in the drafting of various versions of the draft law “On the Basic Principles of State Supervision (Control)” as well as the recently approved Cabinet of Ministers Resolution No. 1189 ‘On Amendments to the Procedure for the Functioning of the Integrated Automated System of State Supervision (Control), Entry of Information into it and the Terms for the Placement of this Information’ and the development of a methodology for determining risk criteria.
The BRDO development team is also involved in the development of the Inspection Portal, a unified electronic risk management system in the field of state supervision. The system automates data collection and analysis, makes inspections more reasonable and transparent, and increases the effectiveness of state control.
What’s next?
The draft law is being prepared for its second reading. Work on its finalisation will continue, taking into account proposals from MPs, businesses and the expert community.