Legislative changes for December during martial law

On December 1, the Verkhovna Rada of Ukraine adopted the draft law No. 6173 on mutual recognition of qualified electronic trust services and integration of European Union legislation in the field of electronic identification.
According to the explanatory note to the draft law, the following is proposed:
-    on the right to use an electronic seal only for legal entities, thereby enabling the creation and use of electronic seals by natural persons-entrepreneurs;
-    settlement of the issue of certification of means of a qualified electronic signature or seal, which will be carried out by conformity assessment bodies accredited by the national accreditation body of Ukraine to carry out such certification;
-    gradual rejection of state expertise in the field of cryptographic and/or technical protection of information, as well as the construction by qualified providers of electronic trust services of a complex system of information protection, giving preference to independent audits by conformity assessment bodies and the construction of an information security management system that corresponds to advanced global practices;
-    gradual rejection of state expertise in the field of cryptographic and/or technical protection of information, as well as the construction by qualified providers of electronic trust services of a complex system of information protection, giving preference to independent audits by conformity assessment bodies and the construction of an information security management system that corresponds to global best practices;
-    ensuring the possibility of replacing the provider of electronic trust services by mutual agreement of the parties or in the case of legal succession in order to ensure the continuous provision of qualified electronic trust services to their users;
-    it is proposed to supplement the Law of Ukraine "On Electronic Trust Services" with definitions of the following concepts: attribute, information exchange, qualified electronic time stamp, qualified registered electronic delivery, unqualified provider of electronic trust services, electronic signature certificate, website authentication certificate, electronic seal certificate, qualified electronic signature certificate , qualified electronic seal certificate, electronic identification service provider, electronic identification service;
-    it is proposed to establish the amount of the administrative fee for the provision of administrative services in the fields of electronic identification and electronic trust services aimed at:
-    inclusion of the electronic identification scheme in the list of electronic identification schemes in the field of electronic government;
-    making changes to the list of electronic identification schemes in the field of electronic government;
-    entering information about a legal entity or an individual entrepreneur into the Trust List;
-    making changes to the Trust List.
Accordingly, Ukraine will recognize the electronic trust services of the European Union, in turn, the EU will recognize the Ukrainian qualified electronic signature as improved before the conclusion of the Agreement with the EU, and after - as a qualified electronic signature.

An Agreement on digital trade is concluded between Ukraine and Great Britain , according to the publication of the Ministry of Economy on the website of the Government portal of the Cabinet of Ministers of Ukraine dated November 30, 2022.
According to the publication, this Agreement is designed for the following purpose:
1.     will cover the sphere of economy and social life, using the latest technologies in the field of digital infrastructure;
2.     an open base of digital markets, which will provide access to duty-free digital content, unification of compliance standards, inclusiveness of the digital economy, business support (small and medium), and cooperation in the field of competitiveness;
3.     reducing the burden on the tax department in terms of trade administration by implementing a digital trade system, access to new financial services, updated electronic payments;
4.     free exchange of data, creating prerequisites for the growth of trade services in the areas of financial services, agriculture, industry, legal services, engineering, etc.;
5.     improved regulation of consumer rights protection through the introduction of digital technologies for the protection of cryptographic data, cyber security, regulations on strengthening the protection of consumer rights in the online space, the prohibition of misleading information and the protection of computer programs and software codes.


On December 1, the Verkhovna Rada of Ukraine adopted and returned with the signature of the President of Ukraine dated December 29 the draft law No. 5552-1 on the harmonization of Ukrainian legislation in the field of copyright with European legislation. Regulation of relations regarding the acquisition, implementation and protection of personal non-property and property copyright and related rights, as well as regarding rights of a special kind (sui generis), related to the field of copyright and related rights.
According to the explanatory note, the draft law was developed with the aim of improving the legal regulation of issues related to the exercise and protection of personal non-property and property rights of subjects of copyright and related rights, including:
- definition of old in the new edition and new terms of subjects and objects of copyright, related rights and works;
- making changes to the terms of validity of property rights for copyright and related rights;
- making changes to the list of subjects and objects of copyright, related rights;
- determination of the right of a special kind (sui generis) to non-original objects generated by a computer program (programs);
- determination of the rights to fair compensation of subjects regarding property rights;
- improvement of the current legislation in terms of solving issues that arise in practice and are related to the implementation and protection of copyright and related rights;
- drafting of the new version of the Law of Ukraine "On Copyright and Related Rights" and amendments to a number of current legislative acts: the Civil Code of Ukraine, the Economic Code of Ukraine, the Economic Procedural Code of Ukraine, laws of Ukraine "On Publishing Matters"; "About cinematography", "About protection of economic competition", "About touring events in Ukraine", "About theaters and theatrical activities", "About electronic commerce", "About television and radio broadcasting", "About effective management of property rights of rights holders in the field copyright and (or) related rights".

It is worth noting that the final text of the draft law signed by the President of Ukraine with the latest recommendations and amendments has not yet been published. Therefore, some discrepancies may be found in the wording of the text of the draft law.


On December 7, the President of Ukraine signed the draft law No. 6321 on the appointment of administrative responsibility for violation of the procedure for informing about the ultimate beneficiaries of legal entities.
The draft law provides for the administrative responsibility of the head of a legal entity or a person authorized to act on behalf of a legal entity (executive body), in the form of a fine of one thousand to three thousand non-taxable minimum incomes of citizens for failure to submit or late submission to the state registrar of information on the ultimate beneficial owner of the legal entity or about its absence, or documents to confirm information about the ultimate beneficial owner of a legal entity, provided for not only by the Law "On State Registration of Legal Entities, Individuals - Entrepreneurs and Public Organizations" and the Law "On Prevention and Combating Legalization (Laundering) of Income Received criminally, financing terrorism and financing the proliferation of weapons of mass destruction."


On December 24, the President of Ukraine signed the draft law No. 5643 on administrative and criminal offenses regarding liability for copyright infringement and (or) related rights.
The draft law is related to the draft Law of Ukraine "On Copyright and Related Rights", which provides for a substantial revision of the provisions of the Law of Ukraine "On Copyright and Related Rights" (presenting it in a new edition).
According to the explanatory note, the draft law proposes, in particular, the following mechanisms for solving the problems of legal regulation of copyright protection and related rights:
1.  the provisions on administrative and criminal liability in the context of marking copies of audiovisual works, phonograms, video grams, computer programs, databases with control stamps will be removed;
2.  administrative and criminal liability for copyright and related rights violations will be strengthened, which will contribute to reducing the number of relevant offenses under the threat of increased liability;
3.  it will be provided in the Criminal Procedure Code of Ukraine that criminal proceedings in the form of a private indictment are carried out in cases of financing infringement of copyright and related rights.
Among the proposed changes introduced by the draft law, in particular, the following is proposed:
1.     increasing the penalty for the offense provided for in Art. 52-2 of the Code of Administrative Offenses (Infringement of rights to the object of intellectual property rights) - now the punishment provides for the imposition of a fine of fifty to three hundred non-taxable minimum incomes of citizens with confiscation of illegally manufactured products;
2.     increasing the penalty for the offense provided for in Art. 176 of the Criminal Code (violation of copyright and related rights) - the minimum fine was increased, and now such acts are punishable by a fine from three hundred to a thousand non-taxable minimum incomes of citizens, or by correctional labor for a term of up to two years, or imprisonment for the same term.
3.     introduction of a new article in the Criminal Code of Ukraine - Art. 176-1 "Financing of infringement of copyright and related rights",
4.     exclusion from the Criminal Code of Ukraine art. 216 "Illegal manufacture, forgery, use or sale of illegally manufactured, obtained or forged control marks"
5.     addition to Art. 176 of the Criminal Code of Ukraine "Infringement of copyright and related rights", which provide for the expansion of criminally punishable forms of committing this crime. According to the amendments made to the Criminal Code, the objective side of the crime provided for in Art. 176 of the Criminal Code of Ukraine, currently consists of:
-        use of objects of copyright and (or) related rights;
-        manufacturing, advertising, distribution, import for the purpose of distribution and use of means for unauthorized circumvention of technological means of protection of copyright and (or) related rights (including cardsharing);
-        camcording
-        making changes to Part 1 of Art. 176-1 of the Criminal Code of Ukraine (financing of copyright infringement), criminal proceedings regarding a criminal offense are carried out in the form of a private prosecution.


On December 13, the draft law No. 8196 on stimulating the restoration of Ukraine's infrastructure with amendments to the Tax Code of Ukraine was adopted.
The draft law proposes to amend the PKU regarding the exemption from value added tax of goods that are provided free of charge as aid from donors and that are imported into the territory of Ukraine by business entities.
According to the text of the draft law, the following changes to the Tax Code of Ukraine are indicated: "69.32. Establish that within 6 months from the date of entry into force of the Law of Ukraine "On Amendments to the Tax Code of Ukraine and the Customs Code of Ukraine on Facilitating the Restoration of the Energy Infrastructure of Ukraine" the following shall be exempted from taxation with value added tax on the importation into the customs territory of Ukraine under the customs import regime:
-           goods specified in the second paragraph of sub-item 1 of item 920 of Chapter XXI "Final and Transitional Provisions" of the Customs Code of Ukraine, which are imported by business entities defined in the first paragraph of Sub-item 1 of Item 9 20 of Chapter XXI "Final and Transitional Provisions" of the Customs Code of Ukraine;
-           goods specified in the second paragraph of subparagraph 2 of item 920 of Chapter XXI "Final and Transitional Provisions" of the Customs Code of Ukraine, which are imported by business entities defined in the first paragraph of subparagraph 2 of Item 9 20 of Chapter XXI "Final and Transitional Provisions" of the Customs Code of Ukraine.


On December 13, the draft law No. 8197 on amending the Customs Code of Ukraine to promote the restoration of Ukraine's energy infrastructure was adopted .
The draft law proposes to amend the Customs Code of Ukraine regarding the exemption from import duty of goods that are provided free of charge as aid from donors and that are imported into the territory of Ukraine by economic entities. Such goods are proposed to include engines and generators (code 8501 according to the UCT ZED) and static electrical converters, inductors and chokes (code 8504 according to the UCT ZED) and as key integral components of power generator installations.
As People's Deputy Yaroslav Zheleznyak noted, among the main innovations in accordance with the two adopted bills, the following can be named:
1.     At the legislative level, the import of generators, other equipment, Starlink without duty and VAT is implemented. Including for individuals. The norm will be valid for six months until May 2023.
2.     Distribution of such exemption also for postal and express shipments.
3.     They supported providing the opportunity to store fuel up to 2,000 liters without a license. Tax authorities will have to be notified of larger amounts on a declarative basis.
4.     Energy Community technical assistance has been exempted from VAT and import duties on energy restoration equipment.


On December 13, the Verkhovna Rada of Ukraine as a whole adopted the draft law No. 5655 , which launches a comprehensive urban planning reform. The bill envisages maximum digitization of documents and processes, automation of many procedures, and strengthening of responsibility for illegal actions.
According to the text of the draft law, the following is provided for :
·          centralization of powers for urban planning and financing for reconstruction.
On December 2, 2022, the Cabinet of Ministers passed creation of the Ministry of Development of Communities, Territories and Infrastructure of Ukraine (which unites the former Ministry of Infrastructure and the Ministry of Development of Communities and Territories). In combination with this draft law, such a decision concentrates control over the "Great Reconstruction" in one ministry - this includes the allocation of funds, the formation of state policy, and the approval of the regulatory framework in construction, and direct control over the activities of designers and expert organizations.
·          weakening of internal anti - corruption control.
Such a concentration of powers in one department creates significant corruption risks during the "Great Reconstruction", because now only one ministry will be responsible for allocating funds, for creating a "convenient" regulatory framework, and for monitoring its "correct" implementation in all directions. This draft law relieves the state of responsibility for compliance with the legislation during construction and weakens control over both the construction itself and the actions of officials.
·          the possibility of canceling the right to build for reasons only in the event of a significant violation of the project for which the permit was issued. Violation of urban planning documentation, urban planning conditions and restrictions, or state building regulations provides only fines to the designer and experts without any consequences for the illegal construction itself. The draft law creates a closed circle: they have the right to apply to the court for the annulment of the MUO only after the accused has been brought to justice, and the accused bears responsibility only after the MUO has been canceled by the court's decision.
·          provides for the removal of responsibility for illegal issuance of permits from officials and the transfer of responsibility to private companies.
Read more about the urban planning reform.


On December 23, the draft law 2806-IX entered into force, which establishes administrative responsibility for mobbing (harassment and humiliation of employees at work).
Thus, the Law provides for supplementing the Code of Ukraine on Administrative Offenses of 07.12.1984 No. 8073-X, Art. 173 5. Mobbing (harassment).
1.         Mobbing (harassment) of an employee entails the imposition of a fine on citizens from fifty to one hundred tax-free minimum incomes of citizens or community service for a period of twenty to thirty hours and the imposition of a fine on individuals — entrepreneurs who use hired labor, officials — from one hundred to two hundred tax-free minimum incomes of citizens or public works for a period of thirty to forty hours.
2.         An act committed by a group of persons or a person who was subject to an administrative penalty for the same violation during the year entails the imposition of a fine on citizens from one hundred to two hundred tax-free minimum incomes of citizens or community service for a period of thirty to fifty hours and the imposition of a fine for natural persons — entrepreneurs who use hired labor, officials — from two hundred to four hundred tax-free minimum incomes of citizens or public works for a period of forty to sixty hours.


On December 29, the President of Ukraine returned with his signature the text of the draft Law No. 2693-d, which is responsible for regulating legal relations in the field of media in accordance with European legislation.
The official text of the Law on Media was published on December 31 in the newspaper Golos Ukrainy and will enter into force three months after its publication, on March 31, 2023.
According to the adopted text, the Law provides for the following :
·   expansion of the powers of the National Council on Television and Broadcasting on the following issues :
1.  regulation and supervision in the spheres and media,
2.  quota saving,
3.  introduction of online media regulation,
4.  simplification of channel licensing conditions,
5.  Amendments to the Law on Public Television and Radio Broadcasting.
·   Introduction of regulation of online media, activities of bloggers and various web platforms.
·   Definition of terms.
·   Definition of online media as a subject in the field of media , the term online media, regulation and definition of responsibility of subjects in the field of online media.
1.  A violation by the subject in the field of online media has been determined (in the case of a gross violation, the regulator imposes a fine on him. In the event that the subject commits a second or third gross violation within one month after the application of the fine, the decision on which was not canceled in the law order, a fine is imposed in a double amount. In the case of the fourth such gross violation, the distribution of registered online media may be prohibited by a court decision - if fines were applied for previous similar violations, the decisions on which were not canceled in accordance with the procedure established by law).
2.  Provision is made for a temporary ban on the distribution of unregistered online media, which amounts to 14 calendar days in case of committing a significant violation, if within one month five fines were applied to the subject for such violations and the decision on them was not canceled in accordance with the procedure established by law.
·   The regulation of the right to vote has been removed in the new draft law, which leads to:
1.  restricting journalists access to public events related to elections, even in comparison with the law on elections of people 's deputies;
2.  lack of clear requirements for information about the course of the election process, which is disseminated by the media, in particular in terms of campaign marking, which allows the media to post "election jeans";
3.  lack of separation of powers to control the coverage of the election process between the election commissions and the National Council of Ukraine on Television and Radio Broadcasting (hereinafter referred to as the National Council), which actually leads to impunity in the event of such violations;
4.  lack of definition of hidden pre-election campaigning;
5.  lack of regulation of campaigning on the Internet and social networks, which today already constitutes a significant part of campaigning materials.

·   The defined list of non-compliance or abuse of the Law on Media and the measures introduced by the decision of the National Council regarding the cancellation of the license of Art. 62 of the Law or cancellation of media registration Art. 65 of the Law.