The Government has endorsed a new deregulation package — a draft law to abolish 63 outdated, redundant or duplicative instruments of state regulation. The decision was approved at a Cabinet of Ministers meeting on 21 May.
The anticipated savings for businesses amount to nearly UAH 400 million in the first year following the repeal. These are resources that entrepreneurs will be able to redirect towards development, investment, and employee remuneration — instead of spending on formal procedures that bring no practical benefit.
The draft law is the result of collaborative efforts by the Ministry of Economy, the business community, relevant regulatory authorities, and expert groups. The changes will take effect after being voted on by the Parliament and signed by the President.
What exactly is being repealed?
The document covers regulations in the areas of agriculture, culture, healthcare, education, energy, science, occupational safety, and foreign economic activity. Complying with these outdated rules requires significant time, resources and money from businesses, but brings little to no real value or user protection.
Here are a few examples illustrating the logic of the reform:
- Certificate of state registration of a technology park — does not promote innovation, yet costs businesses UAH 105.2 million per year. Its repeal removes bureaucracy for tech parks.
- Permit to use metal detectors at cultural heritage sites — an example of excessive regulation that complicates access to historical and cultural research. Estimated savings: UAH 8.3 million/year.
- Certificate for a national film — a purely formal requirement with negligible impact on the film industry’s growth. Estimated savings: UAH 352,000/year.
- Permit to practise alternative medicine (traditional healing) — in the absence of standards, effective oversight is impossible. A shift towards personal responsibility offers more effective consumer protection. Estimated savings: over UAH 100,000/year.
- Approval of projects concerning buffer zones and their usage regimes — this duplicates land management approvals and imposes unnecessary administrative burdens on business.
The draft law also proposes abolishing administrative liability for breaching regulations that are no longer in force. This would reduce regulatory risk for entrepreneurs and provide greater legal clarity.
What is BRDO’s impact ?
BRDO participated in the preparation of the draft law within the framework of the Interdepartmental Working Group on Deregulation (IWG on dereguдation). BRDO also provided expert support during the preparation of the document, including the development of a list of instruments, justification for their abolition, and assessment of the economic impact.
The deregulation reform began in January 2023, when the Government established the IWG on deregulation to fast-track the review of regulatory instruments affecting business activity. To date, the IWG has reviewed 1,323 regulatory instruments — 456 of which have been recommended for repeal, and 352 have already been repealed.
The Better Regulation Delivery Office (BRDO) contributes to the IWG’s work within the EU4Business: SME Policies and Institutions Support (SMEPIS) project, implemented by Ecorys in consortium with GIZ, BRDO, and Civitta, with the financial support of the European Union. The contents of this publication are the sole responsibility of SMEPIS and do not necessarily reflect the views of the European Union.