Ukraine will get rid of unnecessary requirements for mandatory insurance of entrepreneurs: how the IWG on deregulation makes it easier to do business

At this week’s meeting, the Interdepartmental Working Group on Deregulation considered the requirements for businesses in Ukrainian legislation regarding mandatory insurance. According to the working group, some of them are impractical and complicate the work of entrepreneurs.

Based on the results of the discussion, the following recommendations were adopted regarding the cancellation of mandatory insurance:

  1. activities related to GMOs (in particular, testing and transit movement of GMOs). Entrepreneurs are investigating the safety of GMOs, so the existing state requirement is duplicative, and it is impossible to calculate the risks of releasing GMOs during transportation.
  2. from the risks of accidental death, damage or loss of grain accepted for storage under a simple or double storage certificate. Grain insurance of one’s own risks must be carried out voluntarily. In this case, the state forces the entrepreneur to insure his own liabilities, which is not appropriate.
  3. technologies and their components under technology transfer agreements. This decision must also be voluntary and at the discretion of the parties to the contract.

The meeting also considered the possibility of canceling some requirements of the state building regulations. The representatives of mobile communication operators addressed the IWG with a request for this.

In particular, it is about mandatory installation:

  • fire alarm systems at a number of facilities and telecommunications facilities;
  • automatic fire extinguishing equipment in the premises of base stations and mobile communication repeaters, which are located in operating buildings of telecommunications facilities, buildings of other purposes and separately located special buildings and structures.

The business notes that the installation of such equipment is contrary to the Fire Safety Regulations in the field of communication and causes burdensome costs. In practice, operators do not have an objective need to install such systems and tools, since mobile communication equipment is low-power and completely safe in terms of ignition characteristics. Before making a final decision on this matter, the IWG decided to conduct additional studies.

BRDO joined the work of the IWG within the EU4busines: SME Policies and Institutions Support (SMEPIS) project, implemented by Ecorys in a consortium with GIZ, BRDO and Civitta.