New rules of state aid: what will change with the adoption of draft law 12181

In November 2024, the Verkhovna Rada of Ukraine registered draft law No. 12181. It is aimed at introducing changes to the Law of Ukraine "On State Aid to Business Entities" and aims to reform the mechanisms for providing and controlling state aid. The draft law has already aroused wide interest among experts, because it offers important innovations that can significantly affect the business environment in the country.

Why is this important?

The sphere of state aid in Ukraine remained opaque for a long time. The lack of proper control and responsibility for violations of the law led to abuses. Aid providers often withheld or failed to provide information on time, and provided illegal aid that distorted competition.

The new initiative is aimed at overcoming these problems. The draft law takes into account the recommendations of the European Commission and is a step towards the harmonization of Ukrainian legislation with EU norms.

The main innovations

1. Electronic register of state aid

One of the key points of the draft law is the creation of a centralized electronic register. This register will become a platform where all information about state aid will be accumulated:

- Who receives help?

- What is its scope and purpose?

- Does it comply with the legislation?

Register data will be available to the public, which will ensure greater transparency in the use of public resources. At the same time, particularly sensitive information will be protected in accordance with the law.

2. Strengthening of responsibility

Administrative liability is introduced for officials who violate the requirements for state aid. Fines may be imposed for:

- Non-submission or untimely submission of information.

- Submission of inaccurate data.

- Provision of illegal assistance.

The Antimonopoly Committee of Ukraine (AMCU) is empowered to draw up protocols on violations, which will allow for more prompt response to abuses.

3. New functions of AMCU

AMCU expands its powers. From now on, he will not only analyze information on state aid, but will also have the right to compile materials on administrative offenses. AMCU will also provide monitoring of aid provided during martial law, which is especially relevant in the current conditions.

4. Simplification during martial law

The bill takes into account the specifics of work under martial law. In particular, this period provides for:

- Exemption of providers from responsibility for untimely submission of information.

- Simplified mode of reporting.

This will allow businesses and authorities to focus on immediate needs while providing the minimum required level of transparency.

Why is this a business?

Transparency and clear rules of the game are key factors contributing to the development of competition. The bill will provide:

- Equal conditions for all. Providers will no longer be able to use state aid to favor "selected" companies.

- Predictability. The business will know that the rules are the same for everyone, and the system works harmoniously.

- Protection against abuse. Liability for violations will be a guarantee of fair competition.

What's next?

Adoption of draft law No. 12181 will be an important step in reforming the sphere of state assistance. Transparency, accountability and responsibility will help eliminate corruption risks, as well as ensure an appropriate level of competition.

Ukraine continues to confidently move in the direction of European integration, and this draft law is another confirmation of the desire to meet the best European practices.