Digitization of military registers: in the second reading, a draft law on improving the procedure for keeping military records and acquiring the status of a participant in hostilities during the period of martial law, developed with the participation of BRDO experts, was adopted.
What was the problem?
The unified state register of conscripts, conscripts and reservists is intended for digital military record keeping, collection and processing of information necessary for effective mobilization and recruiting. The effective functioning of the register was hampered by the lack of necessary legislative prerequisites for information interactions to collect such data.
Also, before the adoption of the draft law, there was no transparent, effective and convenient mechanism for obtaining the status of a participant in hostilities during the period of martial law in the areas of hostilities or in temporarily occupied territories.
The law was developed with the aim of streamlining individual legal norms in terms of:
What does the law provide for?
The adoption of the law creates conditions for ensuring the appropriate level of social protection of servicemen and their family members.
It is also expected to improve the process of determining the status and ensuring the protection of the rights of persons who participated in hostilities. Its implementation will contribute to the restoration and development of society, as well as strengthening the state’s defense capabilities.
Also, the Law, among other things, will make it possible to clarify the powers of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine regarding the processing of information in the sphere of their competence during the period of the legal regime of martial law, as well as the powers of the Ministry of Defense of Ukraine and the General Staff of the Armed Forces of Ukraine regarding the implementation of measures to prepare the state for repelling military aggression in cyberspace (cyber defense).
The Organization for Economic Cooperation and Development (OECD) presented two new studies, and also held the the first OECD-GIZ workshop: from recommendations to implementation, aiming to support the digital transformation of SMEs in the Eastern Partner Countries.
The event gathered about 80 business representatives, government officials and independent experts responsible for the development and implementation of policies that should contribute to the emergence of digital solutions for Ukrainian SMEs and the further development of the sector, as well as Ukraine’s international partners.
The CEO of BRDO, Oleksii Dorogan, joined the OECD-GIZ workshop “From recommendations to implementation: supporting the digital transformation of SMEs in the Eastern Partner countries” as a speaker.
Why is this important?
OECD is an international organisation in which the governments of 37 market economies work together to develop policy standards aimed at promoting sustainable economic growth. In terms of influence, the OECD is one of the three leading global economic institutions, along with the IMF and the World Bank. Since the beginning of the full-scale invasion of the Russian Federation, the OECD has deepened cooperation with Ukraine, building on three decades of joint work. On October 4, 2023, the OECD Council officially recognized Ukraine as a promising future member of the organisation and called on the Secretary General to start the accession process.
In April 2024, BRDO joined the 30th meeting of the OECD Committee in Paris together with representatives of the Ministry of Economy of Ukraine, the State Regulatory Service of Ukraine and the EU project EU4Business: SME Policies and Institutions Support (SMEPIS).
What do OECD studies is about?
The OECD presented the relevant studies to stakeholders:
“SME Policy Index – Eastern Partner Countries 2024: Building Resilience in Challenging Times” is a report containing an analysis of regional public policy on SMEs. This year, the results of the study showed that the situation compared to 2020 continues to improve, and Ukrainian entrepreneurs show impressive resilience and adaptability, despite the challenges of war. The state, for its part, is constantly increasing the number of innovative tools to support the operating environment of SMEs and their internationalisation.
“Enhancing Resilience by Boosting Digital Business Transformation in Ukraine”. Economic challenges particularly affected Ukrainian SMEs, 64% of which were forced to temporarily suspend or close their businesses in the first months of the war. Digital technologies can help mitigate these effects. During 2023, the OECD provided Ukraine with recommendations on their use to increase business productivity, strengthen its sustainability and promote recovery.
The report provides an overview of the results of this work and considers:
The workshop aimed to outline a road map for the practical implementation of recommendations to promote the development of this sector of the Ukrainian economy on the eve of the launch of the OECD-GIZ project “Supporting the digital transformation of SMEs in the Eastern Partner countries”. It will provide further support to policymakers in the region, with the aim of accelerating digital transformation and digitally strengthening the SME sector.
As part of the workshop, Oleksii Dorohan presented his vision of the roadmap for digitalisation of Ukrainian SMEs, highlighted in OECD research.
According to Oleksii, the primary steps in this direction should include:
In the background of unprecedented challenges caused by the full-scale invasion of Russia, Ukraine is trying to continue reforms. We are grateful to the OECD for supporting this momentum and steadily strengthening cooperation. BRDO is working on the digitalisation of business within the EU4Business: SME Policies and Institutions Support (SMEPIS) project, implemented by Ecorys in a consortium with GIZ, BRDO and Civitta with the financial support of the European Union, and also, more recently, within the framework of the project “Digital Transformation Activity” with the support of USAID and UK Dev.
The Law on Politically Exposed Persons (“PEPs”), adopted in October 2023, caused active discussions in Ukrainian society. In particular, the document canceled the three-year limit for PEP status, and also established a fine for subjects of primary financial monitoring (SPFM) in the amount of up to 100,000 tax-free minimums for abusing strict financial monitoring in relation to PEPs.
Recently, the Centre for Finance and Security (CFS) at the Royal United Services Institute (RUSI) and BRDO organised a round table event to discuss issues related to the implementation of the Law. The event was attended by government officials, representatives of civil society, the private sector, the banking sector, as well as PEPs themselves.
“During a full-scale war, Russia is more than ever actively investing resources in disinformation and further destabilization of the political situation in Ukraine. The resonance in the media and social networks shows that the topic of PEPs is important and acute for Ukrainians. And therefore, it can become another tool in the hands of the enemy in the information struggle against us, another reason for the polarization of society,” explains the relevance of the event Oleksii Dorogan, CEO of BRDO.
We can avoid this, but we have to discuss the problematic aspects of the situation and figure out ways to solve them. How often do PEPs and their family members experience derisking and unjustified denials? What are the practical difficulties of working with PEPs that SPFMs face? Should Ukrainians considering entering the civil service be afraid of PEP status and the associated pressure? All these questions require public and thorough answers.
The event was opened by Oksana Ignatenko, expert of the project “Supervising and monitoring of reconstruction funds of Ukraine” (SMURF). In her introductory presentation, she proposed to take 2017 as the starting point for the discussion, as Ukraine was then assessed during the fifth round of country assessments for compliance with the standards of the Financial Action Task Force (FATF).
At that time, Ukraine received a downgraded rating from the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), due to the imperfection of the legislation regarding PEPs. Although there was an attempt in 2019 to improve the process by passing a new law, in 2022 we went back to the three-year limit on PEPs monitoring. Designed to correct this, the Law adopted in 2023 meets FATF standards, is consistent with the fourth EU directive on the prevention of money laundering and was positively noted in the annual report of the European Commission among other 7 Ukrainian reforms.
“However, this does not guarantee that according to the results of the sixth round, which will take place in 2026, Ukraine will improve its rating. MONEYVAL evaluates not the fact that a country has introduced a certain standard, but the effectiveness of its application”, Oksana noted. “Whether the practical implementation of the Law will be successful is still unclear.”
Olga Vasylevska-Smagliuk, the Deputy Head of the Parliament Committee on Finance, Tax and Customs Policy, who joined the round table, does not see any obstacles to the implementation of the new norms regarding PEPs. “Since the Law commenced, the National Bank has received only 49 appeals regarding its provisions, and only 7 of them related to derisking. The vast majority of questions were not caused by financial monitoring of PEPs, but by the procedure for granting PEP status to a public figure. Dissatisfaction with the Law, which swept through social networks in October 2023, was much larger than the number of difficulties that PEPs actually faced,” explains Olga.
Mykhailo Koltsov, YouControl compliance expert, World Bank Group external consultant on data analysis and cyber security, told what the situation is from the point of view of SPFM during the event. In his opinion, the first key challenge for financial monitoring entities is the difficulty of primary identification of PEPs. “As of now, there is no comprehensive analytical system that would collect individual pieces of information about a public person and, on their basis, grant or deny him PEP status. Determining the status is especially difficult when it comes to relatives and persons connected with PEP,” Mykhailo notes. “Therefore, PEP monitoring is unnecessarily resource-intensive.” The second challenge is the lack of communication between the SPFM and the state regulator regarding the criteria for proper verification of PEPs, the lack of generally accepted practices of monitoring rigour.
Full recording of the event can be found here: https://fb.watch/svI23wbFEt/
Recording of the previous event on “How to improve the process of monitoring politically significant persons (PEPs)?”: https://www.facebook.com/brdo.ukraine/videos/910370290531011
Take the survey and share your thoughts on the situation of PEPs: https://forms.gle/BZRVGrZcJF59FbT88
Ukraine is the only country in the world that is developing the field of open data in conditions of full-scale war. Thanks to open data, citizens can qualitatively analyze the situation in the country and increase the transparency, accountability and efficiency of state bodies, even in conditions of martial law. Based on open data, more than 120 innovative products have been developed that make life easier for citizens.
This was emphasized by Valeriia Tkach, Deputy Director of the Department of Electronic Services Development of the Ministry of Digital Transformation of Ukraine, during the offline discussion “Open data: the path to transparency and accountability.” The event took place within the Open Government Week.
At the start of the full-scale invasion, access to the open data portal was completely shut down. It was renewed on August 1, 2022, but not to all valuable datasets. However, work on the gradual and safe return of access to open data is still underway. In particular, the Ministry of Digital Transformation is working on the development of the National Open Data Strategy of Ukraine for 2025-2027, which will take into account the conditions of martial law and ensure an effective approach to the development of this area.
Digital Transformation Activity is a project that will continue to develop the field of open data and initiatives implemented by the USAID / UK aid project “Transparency and Accountability in State Administration and Services / TAPAS” for eight years, said Nadiia Konashchuk, Head of the Open Data Sector of the Digital Transformation Activity. “Thanks to the support of international donors, significant results were achieved in the development of open data. Transparency of public administration, anti-corruption mechanisms, development of technological business and civil society initiatives — Ukraine demonstrates progress even during the war. Because transparency is the basis for international cooperation and economic interaction.”
People’s Deputy of Ukraine Yaroslav Yurchyshyn joined the event online and noted the importance of access to public information: “We are only building our democratic institutions, and very often still post-Soviet approaches in state structures begin to change only when, on the basis of available data and very clear requests, society formulates motivation and argumentation regarding the necessary directions of development of public services and their effectiveness”.
At the event, the concept of Data+ — a communication platform for joint work of stakeholders in the field of open data — was presented for the first time. Among them: representatives of the Secretariat of the Human Rights Commissioner of the Verkhovna Rada of Ukraine, the Ministry of Digital Transformation, information managers, data users, experts and other interested parties. The platform was created to support transparency and development of open data in Ukraine. Among the tasks of the platform:
Oleksii Dorogan, CEO of BRDO, commented on the task that the Data+ platform will help solve: “After a full-scale invasion, access to open data was significantly limited, which is quite expected. But it is also to be expected that the community that values and works with open data is unhappy with this state of affairs. During these 2.5 years of full-scale war, the question crystallized: where is the moment when we should return from limiting open data, what exactly are we limiting, how and why. It seems that soon it will be possible to reach a consensus that this issue should be resolved now.”
According to Oleksii, society has a strong demand for justice, which is violated when, from the perspective of the community, sensitive data remains open, rather than non-sensitive, most popular data – closed.
“It is necessary to find a balance between how to restore access to open data that is necessary, in particular, for the transparent and accountable reconstruction of Ukraine, but at the same time not to create new security risks. If a certain consultative and advisory body appears on the Data+ platform, where there would be representatives of the Security Service of Ukraine, information administrators and the public, and joint decisions would be made in it regarding priority data sets, then this, in my opinion, could work,” emphasized Oleksii Dorogan.
A detailed concept of the Data+ platform is available here (in Ukrainian).
You can join the Data+ first meeting, which will take place on June 17-21, by registering here.
In addition, take the survey of open data users.
The event was implemented with the support of the Ministry of Digital Transformation of Ukraine, the Office of the Ombudsman of Ukraine and thanks to the project “Support of Digital Transformation” with the support of USAID and UK Dev. BRDO is the partner of the event.
The Committee on Agrarian and Land Policy of the Verkhovna Rada of Ukraine supported draft law No. 9545, developed with the participation of the BRDO team. The important document brings a significant part of the circulation of aquatic biological resources “out of the shadows”, opens foreign markets to Ukrainian exporters and promotes the country’s European integration.
What exactly should draft law No. 9545 change?
The document, jointly developed by the Ministry of Agrarian Policy, the State Fisheries Agency and the BRDO, is aimed at Ukraine’s implementation of EU legislation, in particular the following provisions:
The draft law envisages the creation of a new component of the eRyba platform – the Electronic Traceability System of the origin of aquatic biological resources and/or products produced from aquatic biological resources. The digital solution will make it possible to record all operations with objects of industrial fishing and aquaculture, and centrally store information about them in the specified system.
Also, the document introduces into the national legislation of Ukraine the permit documents required by the regulations of the European Union, as mandatory for customs clearance of traceable aquatic biological resources and/or products from them during export-import operations and re-export. It is about:
Why is this important?
The implementation of the provisions of draft law No. 9545 will allow the introduction of European principles of traceability of aquatic biological resources in Ukraine.
100% chain of traceability. According to Article 58 of Regulation (EC) No. 1224/2009, all consignments of fishery and aquaculture products must be traceable at all stages of production, processing and distribution, from the stage of catching or harvesting to the stage of retail trade;
Fight against IUU fishing. Traceability systems help monitor the circulation of aquatic biological resources from the stage of catch to the stage of sale to the consumer. Provided that operators comply with the requirements of documentation and monitoring of fishing activities, these systems help not only to detect violations, but also prevent illegal, unaccountable and unregulated fishing.
Ensuring the safety of food products. Traceability systems ensure high quality products from aquatic bioresources, and consumers – safety of consumption. By timely documenting and processing information about each stage of the supply chain of aquatic biological resources, authorities can quickly identify and eliminate any risks such as product contamination or improper storage conditions. Due to this, the protection of the rights of not only domestic consumers, but also foreign consumers of Ukrainian fish products is improved.
Promotion of sustainable development. By providing the consumer with accurate and verified information about the origin of the fish and the methods of its production, the traceability system allows buyers to make a conscious, not mindless, choice in favor of products obtained through sustainable fishing practices. Thanks to labeling schemes and certification programs, consumers will be able to identify among aquatic bioresources products that are made from responsible fisheries and environmental standards.
The Committee on Agrarian and Land Policy recommended that the Verkhovna Rada adopt the Law “On Ensuring the Traceability of Aquatic Bioresources and/or Products Produced from Aquatic Bioresources” as a basis. We thank the legislators for supporting the reform of the fisheries industry in Ukraine and are waiting for the first reading of the document in the parliament.
Deregulation in action: The government has adopted a draft law that cancels the permits of local councils for the construction of irrigation systems, as well as the approval of the State Fisheries Agency for the construction or other works in the water area of sea fishing ports.
Why is this important?
Currently, these instruments of state regulation have lost all meaning and only burden entrepreneurs.
In order to start the construction of an irrigation system, the business needs a general construction permit, which is provided free of charge by the state architectural and building control body. A similar construction permit from the local authorities is essentially a duplicate document, the process of issuing of which is associated with corruption risks.
Similarly, the consent of the State Fisheries Agency for the construction or any other work on the territory and water area of the fishing sea port is an irrelevant permit document. There are currently no requirements for providing such a service in the legislative field.
Last year, the Interagency Working Group on Deregulation recommended to government officials to improve the legislation and get rid of these norms. To implement the decision of the IWG, the Ministry of Agrarian Policy and Food of Ukraine, together with experts from BRDO, developed a draft law, which was recently supported by the Cabinet of Ministers of Ukraine.
The document will enter into force after it is approved by the Verkhovna Rada, signed by the President of Ukraine, and published.
Deregulation reform continues. We remind you that you can follow its progress and achievements on the website deregulation.me.gov.ua.
BRDO joined the work of the IWG within the EU4Business: SME Policies and Institutions Support (SMEPIS) project, implemented by Ecorys in a consortium with GIZ, BRDO and Civitta with the financial support of the European Union. The content of this publication is the sole responsibility of SMEPIS and does not necessarily reflect the opinion of the European Union.
The Ministry of Digital Transformation, together with its partners, has presented the Electronic Communications Development Strategy for the first time. It includes not only a vision but also concrete actions for the restoration and development of the sector.
“Electronic communications are among the top priorities for the Ministry of Digital Transformation. This realm is crucial for the comfortable life of people, the functioning of the digital state and conducting the war, directly influencing our advantage over the enemy. That is why we must do everything we can to ensure that every Ukrainian has access to connectivity and to foster the restoration of electronic communications infrastructure. In collaboration with our partners, we’ve crafted a strategy for the field’s effective development until 2030 that will address both the challenges posed by war on electronic communications and technological advancements. What’s crucial is not just our vision, but also a clearly defined action plan for its execution,” said Mykhailo Fedorov, Deputy Prime Minister for Innovation, Education, Science and Technology Development – Minister of Digital Transformation of Ukraine.
The strategy focuses on two main directions: ensuring resilience of electronic communication networks and developing the electronic communications sector as a foundation of the economy.
“Drafting of the Strategy was foreseen by the Law on Electronic Communications, the development of which BRDO was involved in even before the start of the full-scale war. We have also developed a number of by-laws, and we will continue to work on the development of this area,“ Oleksii Dorogan, CEO of BRDO, said in his speech. “The strategy defines specific goals, as well as tasks for responsible bodies and measures to achieve them, the implementation of which will provide an opportunity to improve state policy in this area.“
The Strategy also outlines measures necessary for the sector’s restoration and development during and after wartime. These measures include in particular enhancing consumer services, improving state policies, creating conditions for providing or improving mobile accessibility as well as fixed and mobile internet services, and integrating Ukraine into a single roaming zone with the EU, etc.
“Preliminary estimates suggest that operators are poised to invest six billion dollars in the next seven years, which is really a testament to the confidence and commitment to the sector and to Ukraine’s digital future. These investments represent not just financial contributions but confidence in Ukraine’s potential, its resilience, and its vision for a brighter tomorrow. USAID is proud to support the strategy not just as a document but as a commitment to every Ukrainian that the voices will be heard, their needs will be met, and the future will be brighter because of the transformative power of electronic communications,” said Jeffrey Lehrer, Deputy Director of the USAID Mission to Ukraine.
One of the key focus areas of the strategy is the fostering of Internet Resilience and technological neutrality. Internet Resilience is increasingly crucial in light of ongoing attacks on infrastructure, as Internet failures can result in significant economic and social losses. Therefore, there is a critical need to develop mechanisms that guarantee the stability and reliability of Internet infrastructure.
“We greatly admire the people of Ukraine who adapted swiftly to the new conditions of continuous attacks and infrastructure devastation and found, through their ingenuity, short-term solutions ensuring uninterrupted communication, mobile and internet services. However, long-term solutions are also needed. This strategy outlines how the government will mobilize much-needed investment to help restore infrastructure and drive innovation. It will restore communications networks in war-affected regions, ensure high-speed internet access, expand mobile coverage, and enhance the competitiveness of Ukrainian companies in the European digital market,” said Stefan Kossoff, Development Director at the British Embassy Kyiv.
The implementation of the Electronic Communications Development Strategy includes three stages and will focus on two main areas: ensuring Internet accessibility and development the electronic communications sector as a foundation of the economy. Upon achieving all goals, it is expected:
Currently, the Ministry of Digital Transformation officially announces the start of public discussions of the strategy, which will last for two weeks. Following their conclusion, the strategy will be approved by the Cabinet of Ministers. To participate in the discussion is possible by following the link.
The monitoring and evaluation of the strategy’s implementation will be conducted by the Ministry of Digital Transformation, the National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum, and the Provision of Postal Services, as well as other central executive bodies, civil society institutions, and international organizations.
The Electronic Communications Development Strategy was created by the Ministry of Digital Transformation of Ukraine, with support from the USAID/UK aid-funded Transparency and Accountability in Public Administration and Services (TAPAS) Activity in cooperation with the Better Regulation Delivery Office.
Ukrainian Enterprise Promotion Awards (UEPA) has officially started!
UEPA is the Ukrainian national competition to select candidates for participation in the European Enterprise Promotion Awards (EEPA).
The UERA Prize will be awarded to initiatives that contribute to the development of Ukrainian small and medium-sized enterprises at the national, regional, and local levels.
Candidates will be elected in following nominations:
✨Promoting the entrepreneurial spirit
✨Investing in entrepreneurial skills
✨Supporting the digital transition
✨Improving the business environment and supporting the internationalisation of business
✨Supporting the sustainable transition
✨Responsible and inclusive entrepreneurship
Learn more about the award and apply here: https://business.diia.gov.ua/eepa-awards-ukraine-2024
Deadline for applications – June 30, 2024.
UEPA applications will be evaluated by a Ukrainian jury according to the unified European criteria used in the evaluation of the EEPA.
Two successful entrants of the national competition are selected to enter the European stage.
National coordinator of the competition is the Ministry of Economy of Ukraine.
Ukrainian Enterprise Promotion Awards 2024 is initiated by the Ministry of Economy of Ukraine, the Ministry of Digital Transformation Transformation of Ukraine and Entrepreneurship and Export Promotion Office (Ukraine) within the EU4Business: SME Policies and Institutions Support (SMEPIS) project, implemented by Ecorys in a consortium with GIZ, BRDO and Civitta with the financial support of the European Union.
The reconstruction of Ukraine depends on foreign investments, and they depend on whether the country manages to ensure the stability and integrity of the financial system. The report of the SMURF project is devoted to the current state of affairs in this area.
❓Why is this important?
The report is based on the results of an online workshop held in February 2024. The event brought together representatives of key Ukrainian financial institutions and relevant authorities to discuss Ukraine’s technical compliance with Financial Action Task Force (FATF) standards and the effectiveness of responding to financial crimes.
The document, prepared by Oksana Ignatenko and Arzu Abbasova, summarizes the results of the discussion that took place during the seminar and reveals four key topics that she addressed:
Full text of the report at the link.
❓What is SMURF?
“Supervising and Monitoring Ukraine’s Reconstruction Funds – SMURF” is a joint project of the Centre for Financial Crime and Security Studies (CFCS) at the Royal United Services Institute for Defence and Security Studies (RUSI) and the BRDO.
Founded in 2022 in response to Russia’s full-scale invasion of Ukraine, the project is aimed at combating financial crimes and money laundering, and addressing reconstruction issues. The task of the project researchers is to identify realistic political responses to these challenges. The project also serves as a platform for youth cooperation in the fight against money laundering and expanding the capabilities of Ukrainian civil society as a “second line of defense”.
Ukraine’s fisheries sector has the potential to generate billions of hryvnias in profit for entrepreneurs and millions for the state budget. However, it has not yet become a source of income for the state. Recently, more than half of the catch of aquatic resources has remained in the shadows, and the country’s budget has missed out on millions of hryvnias in taxes.
The Ministry of Agrarian Policy and Food of Ukraine, together with the State Agency of Ukraine for Development of Melioration, Fisheries and Food Programs and the Better Regulation Delivery Office (BRDO) with the support of the project Digital Transformation Activity (DTA), presented the reform of Ukraine’s fisheries sector. The main stakeholders of the process were invited to the presentation: representatives of businesses and government officials, as well as Ukrainian and international experts in the field, parliamentarians, and the media. Further details about the achievements presented during the event and the reformers’ plans are outlined below.
The reform of the fisheries sector, initiated in 2023 by the Ministry of Agrarian Policy and the State Fisheries Agency in collaboration with the Ministry of Digital Transformation and BRDO with the support of the USAID/UK aid project “Transparency and Accountability in Public Administration and Services/TAPAS,” introduces systemic changes in the industry.
“The main vectors of implementation of the reform of the fishing industry are European integration, digitalization, and deregulation,” — noted in his speech Vitalii Holovnia, Deputy Minister of Agrarian Policy and Food of Ukraine. “The goal of the reform is to introduce a transparent market and equal conditions for all its participants, as well as to reduce corruption risks.”
“Each sector of the fishing industry – industrial fishing, aquaculture, and recreational fishing – are independent areas of fishing, but they cannot exist without each other. Therefore, measures to reform the industry will be successful only if they are comprehensive in nature, ensuring a positive effect and benefits for all of its components,” said Ihor Klymenok, Acting Head of the State Fisheries Agency.
One of the key elements of the reform of the industry is digitization, which was initiated by the adoption of Law No. 2989-IX. The document finally established electronic auctions for the right to special use of aquatic bioresources in fishery water bodies. The competitive sale of contracts guarantees every business equal access to a common natural resource. In this way, the industry is demonopolized, and the market comes out of the shadows. Figures to confirm: in 2023, electronic auctions brought 95 million hryvnias to the state and local budgets, in the first two months of 2024 – 45 million hryvnias. Before the reform, the amount of revenues for special use did not exceed 13 million hryvnias per year.
In addition to auctions, the document introduced the Unified State Electronic Management System for the Fisheries Industry – eRyba, thanks to which entrepreneurs will be able to receive government services and permits online.
Danylo Molchanov, Chief of Party at the USAID / UK Dev Digital Transformation Activity, noted: “Digitalization is one of the most effective ways to fight corruption, which creates equal opportunities for business and helps fill the state budget. That is why international partners support the reform of the Ukrainian fishery. The reform aims to improve the processes of interaction between the state and business, as well as to destroy monopolies in access to aquatic biological resources and thus promote its development.
The heart of the reform is the eRyba digital platform, the further development of which will be supported by the USAID / UK Dev Digital Transformation Activity. We expect that the introduction of all components of the system will contribute to the transparency of procedures, the deregulation of outdated requirements and the simplification of doing business, and therefore the development of Ukrainian entrepreneurship, as well as the growth of tax revenues, which are so important for the economy of Ukraine today.”
During the event, international partners assured Ukraine of further support for systemic changes in the fisheries sector. Currently, the Government is planning the next steps to combat the illegal circulation of aquatic biological resources and combat shadow business.
“Our task is to ensure 100% traceability of aquatic biological resources. Among the key principles is zero tolerance for corruption in the industry and the creation of transparent conditions for SMEs’ access to natural resources, noted Oleksii Dorohan, CEOr of BRDO. – Our team has developed draft laws that will ensure traceability of products, as well as multi-year planning for the management of the fishery industry, collection, and summarization of data on the indicators of the implementation of fishery activities, the development of scientific activities in the sector and the implementation of the legislation of the European Union. Their adoption will contribute to the development of the industry and open foreign markets to Ukrainian manufacturers.” For the EU, Ukraine can become a leading exporter of fish and mariculture, but for this the reform of the industry must continue.
The recording of the online broadcast of the presentation of the reform is available at the link: https://www.youtube.com/live/SJxWmddVN90?si=3EzKMT1iVMmPfxSB
Recently, the 30th meeting of the Committee of the Organization for Economic Cooperation and Development OECD – OCDE took place in Paris, which was attended by representatives of the Ministry of Economy of Ukraine, the State Regulatory Service of Ukraine, the EU project EU4Business: SME Policies and Institutions Support (SMEPIS) and the BRDO.
The main topics of discussion during the two-day session of the 30th meeting of the OECD Committee were:
Since the beginning of the full-scale Russian invasion, the OECD has deepened cooperation with Ukraine, building on three decades of joint work. On October 4, 2023, the OECD Council officially recognized Ukraine as a promising future member of the organization and called on the Secretary General to start the accession process.
As part of the OECD event, the Ukrainian delegation with the participation of Oleksii Kucher, Oleksii Dorogan, Hanna Bashnyak, and Olga Oliinyk held a meeting with the deputy head of the OECD Regulatory Policy Committee, Daniel Trnka, who takes care of issues related to Ukraine.
The issues of the next stages of obtaining Ukraine’s associate membership in the Committee were discussed, as well as the creation of the necessary conditions for the OECD mission to conduct the Review of Regulatory Policy in Ukraine. It was agreed on further cooperation and exchange of experience with the aim of introducing modern regulatory practices in Ukraine.
A meeting was held with the Directorate of Global Relations and Cooperation of the OECD. Recently implemented initiatives of the Government of Ukraine aimed at reducing the regulatory burden for business were discussed:
It was agreed on further cooperation and exchange of experience with the aim of creating a favorable business climate for small and medium-sized enterprises.
The participation of the Ukrainian delegation in the meeting of the OECD Committee was made possible thanks to the EU4Business: SME Policies and Institutions Support (SMEPIS) project, implemented by Ecorys in a consortium with GIZ, BRDO and Civitta with the financial support of the European Union.
Deregulation in action: a resolution of the Cabinet of Ministers was adopted, canceling the register of software manufacturers and distributors, which until today was maintained by the Ministry of Economy of Ukraine.
❓Why is this important?
The document was developed to implement the decision of the IWG on deregulation dated April 9, 2024. Thanks to it, Ukraine will get rid of outdated and ineffective state regulatory norms that only burdened the work of business.
Also, the resolution of the CMU cancels the norm, according to which the Ministry of Economy of Ukraine, with the participation of the General Staff of the Armed Forces of Ukraine, was identified as the main executors of work on legalizing software in government bodies and combating its illegal use. The norm was adopted at the beginning of the 2000s and has now lost its relevance, and in fact entrusted ME with non-core functions. Today, there are more effective and efficient mechanisms in the field of informatization, cyber security and information protection, which are taken care of by other authorized bodies — the Ministry of Digital Transformation of Ukraine, the State Service for Special Communications and Information Protection of Ukraine, etc.
To remind, during the deregulation reform, the Government reviewed more than 1,300 business regulation tools. The IWG, created in January 2023, included, in particular, representatives of the ministries of the economy, digital transformation, protection of the environment and natural resources, justice, finance, and the regulatory service.
The BRDO joined the work of the IWG within the EU4Business: SME Policies and Institutions Support (SMEPIS) project, implemented by Ecorys in a consortium with GIZ, BRDO and Civitta with the financial support of the European Union. The content of this publication is the sole responsibility of SMEPIS and does not necessarily reflect the opinion of the European Union.
Digitization of the army — the President signed the important bill No. 10062.
The BRDO team participated in the development of the document, which provides for:
What exactly does the law No. 10062 change?
The implementation of the provisions of the Law should strengthen the capacity of the Ukrainian army and is the first step towards its digitalization. At the same time, we should note that the text of the document has undergone certain changes during consideration in the session hall, therefore, the full disclosure of the potential of the laid initiatives will require additional legislative regulation.
Almost every Ukrainian is a subscriber of mobile communication services. And everyone at least once in their life faced such problems as low-quality service provision, spam, debiting of funds for services that were not ordered, etc. Subscribers’ complaints are almost ineffective: national communications regulator does not protect the rights of anonymous subscribers, and they are 86% of the total number. Inspections are carried out on 1% of received complaints, prescriptions and sanctions are applied even less often. How to fix it?
BRDO in the new study “Protection of subscribers’ rights in Ukraine: TOP-10 problems” analysed ten key problems of subscribers in Ukraine and proposed ways to solve them.
Electronic communications are of key importance in ensuring access to information, realisation of opportunities and rights of citizens in various spheres of life. The number of active SIM cards is more than 49 million. That is, almost every Ukrainian is a mobile subscriber.
The protection of subscribers’ rights plays an important role in the digital economy. Their compliance is also necessary if Ukraine seeks to integrate into the EU’s Single Digital Market.
Since 2019, BRDO has been actively working to improve conditions for the protection of subscribers, but many of our initiatives are still waiting to be implemented. BRDO’s analysis highlights the main challenges faced by subscribers:
The Head of the IT and telecom sector of BRDO Ihor Samohodskyi emphasizes: “The protection of subscribers should become a priority in the practical activities of authorities. Not only the well-being of citizens depends on this, but also the integration of Ukraine into the digital markets of the EU.”
Authors of the study: Nadiia Kostryba, Dmytro Lebedev, Ihor Samohodskyi, Hlib Shchegol.
The research was conducted within the framework of the EU4Business: SME Policies and Institutions Support (SMEPIS) project, implemented by Ecorys in a consortium with GIZ, BRDO and Civitta with the financial support of the European Union. The content of this publication is the sole responsibility of SMEPIS and does not necessarily reflect the opinion of the European Union.
Aquaculture production volumes in Ukraine are growing. This is evidenced by the data of the State Fisheries Agency: the total production volume of the industry’s products in 2023 increased by 4.3% compared to 2022 and amounted to 15,271 tons.
The leaders in the production of aquaculture products in 2023 were Cherkasy (2,698 tons), Khmelnytsky (1,494 tons), Lviv (1,191 tons), Ternopil (1,005 tons), and Sumy (961 tons) oblasts.
The increase in production volumes on the market indicates interest in its development on the part of product consumers and industry producers. Aquaculture products remain a particularly promising direction of entrepreneurship, taking into account its profitability and environmental friendliness.
Currently, the State Fisheries Agency, together with the Ministry of Agrarian Policy, is developing possible mechanisms for state support in the field of aquaculture. Representatives of the market, experts and scientists are involved in the discussion, the main purpose of the discussion is the preparation of economic calculations and indicators of the economic activity of the fishing industry, the justification of the need for state aid and the development of compensation mechanisms.
Why is this important?
According to BRDO experts, one of the opportunities to stimulate business in the field of aquaculture can be the creation of an appropriate support fund. An example to follow can be Norway – a large global producer, which every year replenishes the state budget by $600 million only due to auctions for the right to aquaculture activities in the country’s coastal zones. Only 20% of these revenues are kept by the state, 80% are directed to the Aquaculture Fund, which is redistributed to scientific developments and industry support.
A similar Fisheries Development Fund can be introduced in Ukraine within the framework of the state budget fund of Ukraine. Funds received from the conclusion of agreements on investments in the development of aquaculture can be sources of replenishment. They are provided for by draft law “On Attracting Investments in the Development of the Fisheries Industry” No. 8119, developed by the Ministry of Agrarian Policy and Food of Ukraine, the State Agency for Land Reclamation and Fisheries of Ukraine and BRDO within the framework of the USAID Program for Agrarian and Rural Development – AGRO.
The funds of the Fund will further be directed to:
Aquaculture support funds exist in many EU countries and the world. These funds may have different names and functions, but in general their purpose is to support and develop the countries’ aquaculture industry. The fund can provide assistance in various forms, such as financial support for the development of new technologies and infrastructure, training programs for farmers, research in the field of resource management and environmental conservation.