We are thankful to everyone who participated in our survey on the needs of internally displaced people. What data did we receive and how will we use it in the future?
What was the research?
Russia’s war against Ukraine daily deprives our citizens of their homes, property and even basic necessities. Hundreds of thousands of people are currently on the brink of a humanitarian disaster.
The BRDO team, on the initiative and with the support of the Ministry Communities and Territories Development of Ukraine within the framework of the project “Consolidated response to the humanitarian crisis in Ukraine”, conducted a study on the assessment of the humanitarian needs of IDPs.
Thank you to everyone who participated in the survey, your input is extremely important.
What data did we get?
1,217 IDPs from different regions of Ukraine took part in our survey on identifying humanitarian challenges.
Among their urgent needs, the respondents identified the provision of clothes and shoes – 88.5%, the need for hygiene products – 73%, and food products – 67.8%. 69.7% need financial support.
How will we use this data?
We present an analytical report that identifies those needs and problems that are important for overcoming the humanitarian crisis.
Based on the results of the research, algorithms will be developed that will help digitise the processes of collecting requests and distributing clothing for IDPs and will be developed by the project partner P2P platform Lalafo Ukraine and will also be taken into account during the launch of the project to distribute humanitarian aid in the form of clothing and shoes.
In addition, the results of the survey will help in the preparation of specific requests to international organisations regarding those things that are currently lacking in warehouses and the need to launch a centralised platform.
The project “Consolidated response to the humanitarian crisis in Ukraine” is implemented with the support of the “Action Support Project”, implemented by UNDP Ukraine / UNDP in Ukraine with funding from Sweden.
Paper for currency notes, the strongest ropes and gunpowder are made from technical hemp. The market for these unique plants is promising not only for farmers, but also for Ukrainian industry in general, especially during the war.
Currently, the production of hemp in Ukraine urgently needs deregulation and updating of the legal framework. The state should create simple conditions for the development of entrepreneurship in this area.
What is the problem with the technical hemp market?
Currently, in Ukraine it is legally allowed to grow technical hemp with a content of the psychoactive component THC up to 0.08%. For comparison, in Europe, the USA, Canada and China, the permitted level of THC in industrial hemp is 0.3%.
Due to the too low permitted content of THC, Ukrainian agricultural producers cannot fully compete on the international market, as they do not have the right to use most varieties of technical hemp registered in the world.
In addition to the THC level, we also have a number of regulatory burdens on business that frighten potential producers:
What are the manufacturers of technical hemp saying?
Despite the regulation of the market, entrepreneurs in Ukraine remain interested in the development of cultivation and processing of industrial hemp even under such conditions. Yes, today in the Rivne region they plan to create an industrial ecopark for the cultivation of these crops.
What does BRDO propose to change?
Since 2020, BRDO has been working on a study of the technical hemp market in Ukraine, which resulted in the Green Paper “Technical Hemp Market” and further work on deregulation legislative initiatives.
We are currently continuing our work on the development of legislative changes aimed at easing the regulatory pressure on this market.
Our main idea is that technical hemp is not a drug.
It is a common agricultural crop whose cultivation and processing cannot be subject to strict regulatory instruments.
To preserve traditional Ukrainian production, using innovative approaches, is more relevant today than ever. We call to revive the Ukrainian economy together, in particular, through the development of entrepreneurship in the countryside and the production of products with high added value, in particular, from technical hemp.
The scope of the reconstruction of Ukraine is unprecedented, but it is important to learn the lessons of the reconstruction of other countries, in particular, in matters of speed of project implementation, planning horizon, prevention of corruption and active involvement of the public and local authorities.
The executive director of BRDO Oleksii Dorogan took part in the conference “Digital tools for the recovery of Ukraine”, where representatives of the public, authorities, business and international organisations discussed the formation of a unified vision of reconstruction and approaches to its digitalisation.
All reconstruction participants — both in Ukraine and abroad — must join forces to implement large-scale changes based on mutual trust, transparency, and accountability. That is why the use of electronic tools and systems, disclosure and use of open data is important. These principles are embedded in the Electronic Reconstruction Management System, the concept of which was developed by BRDO in cooperation with the RISE Ukraine coalition.
The system will be built according to the “umbrella” principle and will combine electronic platforms of ministries that are already successfully functioning (for example, eRoad) and will be integrated with other systems and modules that have already been developed (Prozorro, the newly created Register of destroyed and damaged property, etc.), or the development of which is planned or carried out in cooperation with authorities (for example, regional development GIS).
“Reconstruction is a complex process that will involve tens of thousands of projects. How to manage them all? To do this, we developed the concept of the Unified Electronic Management System for the Reconstruction in order to comply with the necessary criteria of transparency, efficiency, accountability and anti-corruption,” said Oleksii Dorogan, BRDO CEO, co-founder of the RISE Ukraine coalition.
The system will work according to three main principles, he noted. The first principle is ecosystemicity, because the system will combine many digital documents, some of which are already working successfully. The second is open by design, or everyone can see everything, for public control of the reconstruction process. The third is transactionality, i.e. the system will not be a reporting system, but a system where reconstruction should take place. We will create a central “bank” of projects, where all projects will have clear stages and a single standard of description for international donors.
“Thus, in the system, each Ukrainian and each organization will have their own role in the reconstruction process, and each of us will be able to influence it,” he said.
Viktor Nestulya, Open Contracting Partnership, RISE Ukraine, noted that the quality and quantity of reconstruction projects is a huge challenge. Not all reconstruction customers currently have the ability to provide high-quality project support, especially in those regions of Ukraine most affected by military aggression. A transactional reconstruction management system will help to strengthen this ability, because it will accompany the user and tell him exactly what he should do at each specific stage of the project life cycle.
Viktor Nestulya reminded that the RISE Ukraine Coalition is already working on the development and implementation of the Electronic Reconstruction Management System. “We are already developing joint solutions with the ministries and the President’s Office. We hope that together we will come to a consolidated vision,” he said.
The representatives of the international partners assured of their readiness to support the ambitious plan of restoration and modernisation of Ukraine and emphasised the importance of clear coordination of international aid from Ukraine, as well as building trust between all participants in the process. Through the use of digital tools and open data, the involvement of civil society is critical to the success of reconstruction.
During the event, a KSE study on approaches to the reconstruction of Ukraine, prepared with the assistance of GIZ, was presented. The study covers 144 global disaster recovery cases over the past 10 years. This experience contains many lessons important for the recovery of Ukraine. In particular, as noted by the head of the KSE Institute, Nataliia Shapoval, three key reasons for unsuccessful reconstruction attempts can be identified. The first is a failure in the export of expertise, the second is a short planning horizon, and the third is insecurity from military and criminal risks.
Corruption is a significant challenge of global reconstruction. “It arises not only at the top levels or at the grassroots, but also among a large number of organizations that implement these projects,” Nataliya Shapoval noted. According to her, the recovery infrastructure should contain all the best tools for preventing corruption at all levels. Anti-corruption reforms are still a relevant issue for Ukraine, so Ukraine should have specialists in the government in well-paid positions.
The event was also attended by:
Maksym Fedoseienko, head of KSE strategic projects;
Maksym Nefyodov, co-head of the KSE Institute project “Russia will pay” (Damaged.in.ua)
Khrystyna Zelinska, project manager of the Ministry of Development of Communities and Territories of Ukraine;
Oleksandra Azarkhina, Deputy Minister of Infrastructure of Ukraine;
Nadia Bigun, Deputy Minister of Economy of Ukraine;
Farid Safarov, Deputy Minister of Energy for Digital Development, Digital Transformations and Digitalization;
Klavdiya Maksymenko, Senior Country Officer, World Bank
Sadig Elamin, UNDP Information Management Officer;
Julda Kielyte, Economic and Fiscal Reforms Team Leader, Support Group for Ukraine, European Commission;
William Turner, Deputy Head Political and Economic Team, British Embassy Kyiv;
Jay Michael Totte, Anti-Corruption and Rule of Law Team Lead, USAID;
Tymofii Mylovanov, President of KSE Group.
The conference “Digital tools for the recovery of Ukraine” was organized by the Kyiv School of Economics (KSE), the RISE Ukraine coalition and the state electronic auction system Prozorro.Sales. Partners of the event: BHP Foundation, Transparency International Ukraine, GIZ, BRDO, UKAID, Open Contracting Partnership, EU Project “Let’s Go Together”, Damaged.in.ua Project, Abt Associates.
Recorded broadcast in Ukrainian: https://fb.watch/guqHD5gWAB
Recorded broadcast in English: https://youtu.be/_AFAeswHnlc
We, representatives of public organisations, as well as concerned citizens, propose to abolish criminal liability for the importation, production, sale, and distribution of pornographic materials. The relevant articles of the Criminal Code do not correspond to Article 8 “Right to respect for private and family life” of the European Convention on Human Rights and the practice of the ECtHR.
At the same time, we propose to ban only certain types of pornography (those with the use of violence, threats to human life and health, zoophilia, necrophilia, etc.).
Erotic content raised over UAH 31 million for the defence of Ukraine. However, the production and circulation of porn in Ukraine is currently completely prohibited. The maximum penalty for violating the ban is imprisonment for seven years. The laws refer to abstract concepts such as “vile instincts,” “baser instincts,” and “unethical scenes.” A loose interpretation of these concepts allows law enforcement officials to threaten criminal prosecution and demand bribes even from people who create materials that are far from being pornographic ones.
The basis of criminalisation of any act is its public danger. Actions that do not lead to violation of the rights of other persons should not be criminally punishable.
It is obvious that Ukrainian society in general does not consider pornography to be dangerous:
And although existing legislative barriers are unable to significantly limit the consumption or creation of pornographic products, thousands of people are subject to criminal prosecution under the relevant article. We consider it unacceptable extravagance, especially during wartime, to spend the funds of the State Budget and the power of law enforcement agencies, courts and the criminal enforcement system to bring to criminal responsibility for actions that are not socially dangerous and at the same time have a significant level of spread in society, and the execution of the appointed penalties and fines.
All this shows that today Ukrainian legislation does not yet correspond to the experience of most EU member states and international treaties.
Therefore, we call on people’s deputies, representatives of public organisations and all concerned citizens to support the amendments to the legislation developed by us, which are based on the experience of EU countries, international conventions and common sense.
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The Law |
The essence of the changes |
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Criminal Code of Ukraine |
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Law of Ukraine “On Protection of Public Morals” |
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We emphasise that we do NOT propose to decriminalise:
Please support our offer and spread the word about it.
Signees of the petition:
The appeal is open for signature. Let us know if you want to join by filling out the form.
Massive shelling of Ukrainian energy infrastructure by the Russian Federation led to a partial and complete blackouts of cities and entire regions, many of which, as a result, lost one of the critical services – water supply. Power restoration work is already underway, but targeted attacks on power facilities to disable them will likely continue.
The head of the “Energy” sector, Anton Zorkin, told UBR.ua to what extent the Ukrainian energy system is stable and whether it will be able to work to support critical infrastructure under fire.
Given the threats of the Russian leadership, it can be assumed that targeted attacks on the energy infrastructure of Ukraine will continue.
The stability of its work will largely be determined by the effectiveness of air defence, as well as the ability of the aggressor country to regularly carry out such massive missile strikes – “First of all, in winter when the load on the network increases and the system becomes more vulnerable”, emphasised Anton Zorkin.
“There is no other way than anti-aircraft defence to protect such large stationary objects as thermal power plants. If the strikes will be repeated and cause constant damage, another question will arise – how to minimise the consequences of shelling by reducing the recovery time of the affected objects”, he pointed out.
In his opinion, the job of the government and power companies should be to provide spare materials for quick repairs – particularly transformers, wires and switches, and generally other mechanisms that can be destroyed or damaged. However, Zorkin admits that it will not be possible to provide quick repairs in some cases.
“If, for example, a turbine is damaged in a power plant, it will not be quickly restored – it is a rather large and complex structure that cannot be simply replaced, as in the case of a transformer. The consequence of such damage will be long interruptions in electricity production or a delay in the return of production to the planned volumes”, states the BRDO expert.
At the same time, Zorkin noted, the Ukrainian energy system is sufficiently developed that its stability would not be threatened by the failure of even a large but one or several energy facilities. Therefore, only massive damage can cause the need to introduce long-term consumer electricity supply restrictions.
Hennadii Riabtsev, an expert of the “Psyche” centre, also expressed the opinion that the Ukrainian energy system has a large reserve of strength, which at the same time is exhausted when it is constantly damaged.
In the case of continued shelling, our interviewees agree, the authorities need to provide additional reserve capacity for the functioning of critical infrastructure facilities. Such systems were already deployed after Monday’s shelling.
For example, as noted by DTEK “Kyiv Regional Electric Networks”, simultaneously with the introduction of GAV for domestic and industrial consumers, critical infrastructure – hospitals, subways, rescue services – were fully supplied with energy.
For such electricity-dependent elements of critical infrastructure as heat and water supply systems, autonomous power generators can also be reserved, Zorkin notes.
The full version of the publication is available here.
Soon, Ukrainian consumers will receive the protection of their rights as it is done in Europe. The Parliament of Ukraine adopted in the first reading draft law No. 6134, developed by the Ministry of Economy together with the BRDO team.
After the collapse of the USSR, Ukraine was one of the first to develop legislation on the protection of consumer rights, but today there are critical inconsistencies between the Ukrainian and European consumer rights protection systems. The new draft law is designed to eliminate these inconsistencies and bring Ukrainian legislation closer to European legislation.
What changes does the bill propose?
1. Issues of consumer rights protection in the field of electronic commerce are regulated:
2. The obligation for sellers to create and maintain an exchange fund of goods is abolished. Until then, if the consumer received a product of inadequate quality that needs repair, the seller is obliged to provide the consumer with the same product from the exchange fund during the repair of such product. For this, entrepreneurs spent a lot of money on the purchase of such goods and on the maintenance of warehouses for their storage. Instead, the new draft law gives the consumer the right to replace the product with the same or similar one available at the business entity, if the repair of the product purchased by the consumer requires more than 14 calendar days. Thus, sellers do not need to have an exchange fund, and in the event of its creation, they will have a competitive advantage.
3. Public associations of consumers receive a legislative basis for participation in the protection of consumer rights and their involvement in the pre-trial resolution of consumer disputes. The practice of the European Union in the field of consumer rights protection shows that consumers are better protected when public consumer associations are involved in the process of their protection, which can conduct consultations for consumers and provide them with practical assistance.
4. The possibility of providing documents confirming warranty obligations in electronic form by sellers is being introduced. That is, consumers will not need to keep a bunch of paper warranty coupons, which will become available in an online format.
Thus, draft law 6134 provides for the creation of conditions for achieving mutual consistency between the consumer rights protection systems of Ukraine and the EU, ensuring transparent and fair competition between business entities, especially in the field of electronic commerce, and also provides consumers with new tools to protect their rights.
We are grateful to everyone involved in the development of the draft law and look forward to its quick adoption in the second reading.
Since the beginning of the Russian invasion, more than 4,000 km of gas distribution networks have been destroyed. As a result, losses of operators of gas distribution networks reached UAH 9.2 billion at the end of May.
Experts are convinced that one should not be limited to restoring the destroyed infrastructure to the pre-war level. Most analysts and officials suggest rebuilding natural monopolies with a future perspective, that is, modernising them.
Anton Zorkin, Head of the “Energy” sector, told Delo.ua what it is worth knowing about the restoration of Ukraine’s energy infrastructure.
The main thing for the post-war reconstruction is to attract a sufficient amount of investments to modernise as much of the networks as possible
Anton Zorkin notes that the proper course has been chosen for the modernisation of Ukrainian infrastructure. “During the development of electric and gas networks, even before the active phase of the war, modern technologies were used. The only problem is that the share of new networks in their total number is tiny. The reason for this is insufficient funding. Therefore, the main thing for the post-war recovery is to attract a sufficient amount of investments to modernise as much of the networks as possible. After all, in the process of restoration of objects damaged as a result of the war, a relatively small share of networks will be modernised, especially outside the areas of hostilities. Therefore, it is very important to attract funding for the total modernisation of networks throughout Ukraine. And in addition to the modernisation of networks directly, it is also necessary to introduce financial incentives for operators regarding further investments in the comprehensive development of companies,” says Anton Zorkin.
The need for modernisation is argued by the expert, in particular, by insufficient efficiency of the existing supply and distribution systems. Low network efficiency means high energy losses in the distribution process, low supply quality, and high operating costs. That is, low technical efficiency leads to low financial efficiency and ultimately to an increase in the cost of services for end users, explains the representative of BRDO.
Read the full version of the publication here.
The other day, the Ministry of Infrastructure together with the Ministry of Digital and the RISE Ukraine coalition presented the design of the electronic reconstruction management system.
Ukraine already has experience in creating leading state electronic systems: ProZorro and “ProZorro. Sales”, eHealth, “Diya” – these names are known all over the world.
However, the reconstruction management system is unprecedented: managing a ten-year recovery program costing hundreds of billions.
In terms of data volume, functionality and procedure coverage, it will be the largest electronic infrastructure in the world.
If we were to plan reconstruction in the 20th century, it would have to meet two of the three criteria: effective, inclusive and fast. It was impossible to implement all three criteria in the democratic society of the last century.
However, we are in 2022, in Ukraine, which is a leader in the field of digitalization of public administration. Therefore, we have a chance to implement all the criteria: to make a major reconstruction that would be effective, inclusive, fast and, accordingly, democratic.
The system of digital management of the reconstruction of Ukraine will become a modern anti-corruption tool of state administration that will serve to coordinate the efforts of process participants and make the most effective decisions.
Technology is on our side, however, this is a mega challenge. Anyone who has encountered complex IT systems understands that the development of the architecture of the electronic system for the reconstruction of Ukraine alone is not an easy task.
I recently attended a strategy session with 50 representatives of public organizations that are reforming, working with and monitoring the government. I asked for a show of hands for those who believe that the public knows how to organize reconstruction. I asked the same about the authorities and international partners.
Conclusion: no one knows for sure and no one can do it themselves. So, together we have to find an answer to the question of how to organize reconstruction.
A digital reconstruction management system will help us achieve two goals at once. The first is inclusive, efficient and quick reconstruction. The second is to ensure confidence in reconstruction, to allocate sufficient funds for its implementation.
The state is already working on the design of a digital system. It will consist of several modules: separate subsystems, registers and data exchange mechanisms between them. It will cover the processes from the initiation of the project to its completion.
At the same time, a separate reconstruction (restoration) project can cover both the physical reconstruction or reconstruction of one object, as well as a complex of objects or additional processes related to the restoration of the functioning of the object.
Thus, the Ministry of Infrastructure, with the support of other ministries, is developing a register of damaged property. It provides digitization of the “Inventory and damage assessment” process. Data from this register will be used to plan restoration projects. This will happen in a separate module of the system.
Tenders for the purchase of goods and services for the implementation of projects will be held in the ProZorro system, which will perform the function of one of the modules of the digital reconstruction system. At each stage, we will have a separate electronic module that will perform its part of the tasks.
The system will cover the following digitized project stages: inventory and damage assessment, data collection and analysis for prioritization and reconstruction planning, project planning and prioritization, project financing, project implementation, payment for works, commissioning and maintenance.
Each stage requires significant human resources, as well as the collection, processing and analysis of large amounts of data, modeling, forecasting and other data-related activities. This is what the preliminary design of the system looks like.
Separate modules of the electronic reconstruction control system are already working. Soon, a shortened version of the system will be launched on the basis of the Ministry of Infrastructure. This will allow rebuilding of critical infrastructure with maximum possible transparency and accountability.
The ministry is taking a general approach and applying it to infrastructure reconstruction. Infrastructural objects are the most complex, the most expensive, with the greatest risks, so operational management and monitoring can be tested on them.
We will be able to draw conclusions, make changes to processes and design. We will use the data to build a similar process for other types of objects.
The main KPI of the system is the efficiency of obtaining and using funds for reconstruction. We should not waste time either after the victory or now, when it is necessary to make an operational reconstruction. We should not spend half a year negotiating with international partners about who receives the funds and how they are spent.
Instead, we should work together with the government and international partners to propose a reconstruction management process that would suit all key stakeholders and not block the flow of aid to Ukraine.
Transparency is key. Only a transparent system will allow anti-corruption authorities, public activists and international donors to track where every penny goes and control all reconstruction processes.
The second obvious KPI is the prevention of corruption. The enemy will always claim that the money allocated for reconstruction is being stolen. We need to make sure that they don’t steal. Make it verifiable.
By achieving these two goals, we will, on the one hand, remove one of the key risks, and on the other hand, we will be able to speed up the rebuild by a year or more by doing our homework now.
The RISE Ukraine coalition takes an active part in the development of the system, helping to perform certain works. We support reconstruction and promote key principles: transparency, accountability and efficiency. Therefore, we insist on opening the data of the system to everyone except representatives of the aggressor state.
It is necessary to create convenient management dashboards in a smartphone and publish data according to standards (Open Contracting Data Standard) for international partners and the public. Only in this way will the system be trusted.
Now we are involved in the analysis of business processes of the cycle of reconstruction and system design projects. Then there will be piloting based on one of the directions. Then the system will be refined and will cover the pilot direction and projects of all types.
Ukraine has a chance to introduce a new standard of open governance and open contracting and become a model for the whole world. For this, it is extremely important to ensure full transparency of the reconstruction process.
The material is published in Ekonomichna Pravda
The military aggression of the Russian Federation against Ukraine has been going on for 210 days. Currently, Ukrainian diplomacy is exposing the biggest deception in the history of international politics, which can help us win this war. Today we invite our subscribers and colleagues to join us in this fight.
What’s going on?
These days there is a diplomatic front, which is no less important than the Kherson or Kharkiv directions, in the UN Assembly in New York, where our diplomats and a coalition of other countries are fighting against Putin. Finally, we have a chance to reform the UN, expel Russia from the General Assembly, and get new strong support from the UN.
What is the problem?
Russia is in the UN illegally. It is the only country that has not signed or ratified the UN Charter. It is not the legal successor of the USSR in the UN, because the USSR as a country “ceased to exist”, as stated in the official documents. For the past 30 years, the Russian Federation has been illegally present at the UN and the UN Security Council with the tacit consent of most countries. 30 years of ignoring this weakened the UN and led to war. Now, when the UN is needed more than ever to establish peace, the Russian Federation is blocking all resolutions on Ukraine in the Security Council.
How can we help change this?
Anyone in New York can join the rally on September 21st at 8:30 AM (Dag Hammarskjod Park – 47th St. & 2nd Ave).
Anyone outside of New York can help by signing the petition. Our goal is to urgently collect 500,000 votes by September 26.
You will also help a lot by spreading this information among your acquaintances and friends – together we will win!
The Parliament of Ukraine adopted the bill in the first reading, the drafting of which was developed by BRDO analysts. It is about amendments to some legislative acts of Ukraine regarding the improvement of state regulation in the field of fisheries, conservation and rational use of aquatic biological resources, and the field of aquaculture.
Why does the Ukrainian fishing industry need reform?
The European integration draft law will bring positive changes related to the fish market, Ukrainian entrepreneurs, the state and citizens. The document is aimed at creating favorable conditions for doing business in Ukraine, and provides for the following changes:
We are not resting on our laurels and are working on a whole package of legislative reforms that will improve the situation of the Ukrainian fishery.
Applies to those Ukrainians who receive income based on labor relations; the position regarding FOPs is currently unknown.
Recently, the Polish Ministry of Finance gave a comment to the Polish media money.pl regarding the taxation of the incomes of Ukrainians: “incomes of Ukrainians from Ukrainian employers should be taxed in Poland, if the Ukrainian stays in Poland for more than 183 days”. In this case, incomes received before reaching 183 days are also taxed. The full text of the commentary is in possession of BRDO.
Why is this important?
As of August 2022, more than 1,320,000 Ukrainians received a PESEL in Poland (tax number indicating temporary protection). Some of them continue to work for Ukrainian employers and pay taxes in Ukraine.
What is the position of the Polish Ministry of Finance?
A few days ago, the Ministry of Finance of Poland published a statement that creates problems for the Ukrainian budget and Ukrainians who continue to work remotely from Poland under Ukrainian contracts.
Thus, the Ministry of Finance of Poland, at the request of the Polish media, stated: “According to Article 15 of the Polish-Ukrainian Agreement on the Avoidance of Double Taxation, if a Ukrainian tax resident performs paid work on the territory of Poland and his remuneration is paid by a Ukrainian employer who does not have a permanent establishment or permanent job in Poland, he is obliged to pay tax in Poland if his stay exceeds 183 days in a calendar year. In such a situation, all his income related to the performance of work on the territory of Poland is subject to taxation in Poland, that is, also income received before exceeding the threshold of 183 days of stay on the territory of Poland.”
Similar conclusions are also published on the website podatki.gov.pl
What information was available before?
In July 2022, BRDO released the news that Ukrainians working remotely from Poland have a chance to continue paying taxes only in Ukraine. The basis for the news was the publicised letter of the Ministry of Finance of Poland, which BRDO received in response to the advocacy campaign for the preservation of taxes of Ukrainians, which began in May 2022.
We quote from the letter received from the Polish Ministry of Finance:
1. “As for Ukrainian residents in Poland, I want to assure you of the very flexible and individual approach of the Polish tax authorities. In general, as a rule, we do not deny the possibility of preserving the centre of vital interests in Ukraine during wartime.”
BRDO’s comment: The determination of a person’s centre of life interests has a significant impact on where he or she pays taxes.
2. “Taking into account the special needs of Ukrainian taxpayers, we have introduced a special regime for citizens of Ukraine, which allows them, at their wish, to choose taxation as if they were tax residents of Poland. This special regime is voluntary and available only in the period from February 24, 2022 to December 31, 2022 for citizens of Ukraine who are subject to the Law of March 12, 2022 on assistance to citizens of Ukraine in connection with the armed conflict on the territory of this state. Citizens of Ukraine can freely choose this special regime in order to be taxed on more favourable terms than under the general rules.”
When publishing this message, we emphasized that it does not have the status of a regulatory act, but at the same time we interpreted it as a positive approach.
However, as we can see, the Ministry of Finance of Poland has changed its position. The new position, published a few days ago, no longer contains information about special rules regarding the payment of taxes by Ukrainians until December 31, 2022, or about the possibility of preserving the centre of vital interests of Ukrainian refugees in Ukraine during wartime.
What should Ukrainians who work remotely from Poland do?
Given the published positions of the Ministry of Finance of Poland, we do not have a simple answer. We advise you to contact tax consultants and analyse your specific case in detail.
Separately, we emphasise that at the same time, Ukraine is taking steps to establish the exchange of information on financial accounts with foreign bodies.
What should be done to save tax revenues of Ukraine?
Advocacy regarding the application of the provisions of the Conventions on the Avoidance of Double Taxation in favour of Ukraine must be brought to a positive result. Various representatives of the authorities previously announced the corresponding work on preserving the tax revenues of Ukrainians who left after the war. BRDO will also continue to make efforts in this direction, because this issue is relevant not only for Poland.
Disclaimer: Please note that these materials are not legal acts. Determining the place and order of tax payment is a complex legal issue that may require the consultation of specialists or official bodies.
The document, developed with the participation of BRDO, creates effective legal mechanisms for the state’s guarantee of property rights to indivisible objects of unfinished construction and future real estate objects.
From now on, buyers of future real estate, which are individuals and legal entities who buy indivisible objects of unfinished construction (for example, cottages), residential and non-residential premises in objects under construction, are much better protected and receive guarantees of protection of their rights .
What changes does the law introduce?
Why is the law important?
What other changes took place after the adoption of the law and why it is relevant for Ukraine – read in our previous publication.
Climate change, deterioration of ecology and depletion of reserves of non-renewable natural resources pose a threat to the world economy, human health and life, and natural ecosystems. The transition to a carbon-neutral economy is primarily aimed at protecting human and animal life by reducing polluting emissions. The road map of the European Green Course contains a set of measures to increase the efficiency of the use of energy resources and reduce emissions. In particular, it is envisaged to introduce restrictions on carbon-intensive products imported to EU countries through the application of the Carbon Border Tax.
There are risks of such a carbon adjustment for Ukrainian exports to the EU in general and the energy industry in particular. In order to assess risks and determine ways to minimise the negative impact on energy in Ukraine, BRDO analysts developed the Green paper “Analysis of the necessary changes in the regulatory field in the electricity industry of Ukraine to meet the goals of the European Green Course“.
The introduction of the European Green Deal is a global process that will have a serious impact on world trade and the provision of international supply chains of goods. Therefore, EU state institutions are in the process of developing, discussing and approving strategic documents, on the basis of which changes will be made to the current Directives and, if necessary, new ones will be adopted. In order to join the EWC and achieve climate neutrality, Ukraine should also work in this direction and develop strategic documents that would define specific goals and ways to achieve them within a certain period.
The accession of Ukraine to the EWC implies new obligations of Ukraine in the transition to a carbon-neutral economy, the implementation of which will lead to the emergence of a number of problems in the energy industry. The reduction of greenhouse gas emissions involves the cessation of coal mining, as well as large-scale changes in the structure of energy-generating capacities and electrical network facilities, which is quite problematic in the conditions of the current economic state of Ukraine. In addition, the oil and gas sector will suffer due to a significant decrease in demand for petroleum products and natural gas as a resource for energy production.
“One of the main tasks of the Government of Ukraine is to transfer the economy to the rails of low-carbon development. To achieve the specified goal, it is necessary to form and ensure the implementation of a new state policy in this area. First of all, develop the Concept of decarbonization of the economy of Ukraine. In addition, it is necessary to take measures to ensure Ukraine’s energy security, in particular, the reliable and continuous operation of the energy system and the possibility of integrating new RES capacities, as well as the modernization of heat and electricity networks to reduce energy losses. In our Green Book, we have developed a roadmap for the actions of the authorities of Ukraine to minimize the negative consequences of the implementation of policies in Ukraine that correspond to the general trends of the European Green Agreement,” said Oleksiy Dorohan, executive director of BRDO.
The Green Book, developed by BRDO, contains an analysis of the EU Legislation on the policy of implementing the European Green Course, a description of the risks of implementing the principles of EPC in the energy industry of Ukraine, as well as determining the actions of the Ukrainian government to achieve the goals of EPC in Ukrainian realities.
The Green paper is available at regulation.gov.ua (in Ukrainian).
The global construction industry employs about 7% of the world’s working population, making it one of the largest sectors of the global economy with a market worth at least $10 trillion. At the same time, the industry has the potential to increase the added value of construction activity by increasing the intellectual component by at least 1.6 trillion US dollars. But as one of the largest consumers of raw materials and related products, the construction industry is characterized by extremely inefficient use of resources and high rates of waste generation – up to 25-30% of the total volume during construction work.
In Ukraine, the construction industry is still developing according to an extensive scenario, without using intellectual innovations and without reducing its negative impact on the environment. How can Ukraine stimulate the development of the intellectual component for the intensive development of the industry and at the same time adhere to the goals of the European Green Deal in construction? To answer these questions, the BRDO team prepared the Green paper “Interaction of participants in the construction market in terms of the life cycle of buildings and structures”.
The European Green Deal strategy attaches great importance to construction and renovation. Among its goals is the development of “green” construction and carbon-free production as elements of the circular economy, which will reduce the use of energy and resources. In addition, the strategy sets out a desire to triple the speed of renovation of all buildings in order to reduce the pollution that occurs during these processes – and this is especially important for Ukraine, which is faced with the challenge of large-scale post-war reconstruction.
The modern market of construction services is significantly influenced by technological development and the global penetration of innovations at all stages of the set of technological processes of construction and management of the life cycle of the object. It is innovations, new technologies and approaches that primarily shape the future trends and tendencies of the global and national construction market.
“All current trends capable of shaping the future landscape and development logic of both the construction sphere and the building materials industry depend on the rapid pace of implementation of new technologies and innovations. Such steps involve increasing the level of the intellectual component in processes and the cost of products in the construction market. It is predicted that the level of requirements for work executors and representatives of regulatory authorities will increase. In our new Green Book, we analyzed in detail the state of affairs in the Ukrainian construction market and the best global practices, as well as proposed a list of operational steps to stimulate the development of the intellectual component in the interaction of construction market participants,” said Oleksii Dorogan, executive director of BRDO.
The Green Paper contains an analysis of the following components of the construction industry:
The Green paper is available at regulation.gov.ua (in Ukrainian).
Join the online consultation about the new study (in Ukrainian).
Climate change and environmental degradation are an existential threat to the entire world. The answer to these challenges is the European Green Deal. In addition to reducing emissions and waste, preserving the environment and growing a climate-neutral economy, it also foresees a simultaneous digital transition, which should be inseparable from the green one (twin transition). Implementation of the Green Deal is an important component of Ukraine’s European integration. The European Commission determined that the recovery of Ukraine should meet the green and digital agenda. In order to understand how this is possible in Ukraine, especially during the post-war reconstruction, and what steps need to be taken, BRDO analysts developed the Green paper “Digital transformation as the Basis of the European Green Deal and recovery”.
According to the Environmental Efficiency Index 2022, Ukraine ranks 52 out of 180 countries. The following categories have the worst indicators: ecosystem services (103), air quality (88), waste management (88), and biodiversity (76). In addition, the damage to the environment from the Russia’s war against Ukraine is unprecedented. These are fires, chemical pollution due to shelling of industry and infrastructure, soil and sea pollution with oil products, loss of biodiversity, threat to endangered species. In the post-war reconstruction of Ukraine, the potential of digital transformation can become a key factor in achieving the goals of the Green Deal.
“The National Economic Strategy of Ukraine until 2030 provides for synchronisation with the Green Deal. Digital solutions make it possible and easier in various sectors to support decarbonisation, reduce greenhouse gas emissions by 15-20%, ensure economic growth, use smart infrastructure to monitor ecosystems, optimise traffic flows and energy use, and create many other opportunities. This requires attracting investment and accelerating the development of digital infrastructure and technologies, digital services and markets, as well as the development of digital skills of the population. What measures and actions are necessary for this – we have described in detail in the new Green paper”, said Oleksii Dorogan, CEO of BRDO.
“Digital transformation is part of the Green Deal. Its implementation is important for European integration, attracting funds for recovery, and developing the economy. Changes are needed in many areas, from skills development to tax changes. Our study shows what exactly needs to be done in the digital sphere and how to digitise other sectors to implement the Green Course,” emphasised Ihor Samohodskyi, Head of the BRDO ICT sector.
The Green paper developed by BRDO contains an analysis of the goals of the Green Deal in the context of digital transformation, EU policy and its tools in achieving the goals of the green transition in the ICT sector, as well as a list of necessary measures for the green transformation of the ICT sector and digitalisation of other sectors of the Ukrainian economy during post-war recovery.