Parliament approves three draft laws needed to implement the Ukraine Plan under the Ukraine Facility

The Verkhovna Rada of Ukraine has backed three legislative measures required under the Ukraine Plan within the Ukraine Facility. They cover state aid reform, renewable energy and the regulation of public service obligations in the state sector.

“The measures backed by Parliament are a tangible result of implementing the Ukraine Plan under the Ukraine Facility. They will update the rules governing key areas of the economy, introduce European approaches and lay the foundations for the country’s long-term development and recovery. Their adoption was made possible by consistent coordination between the Government and Parliament. I thank the Verkhovna Rada and its members for supporting these measures,” said Minister of Economy and Environment of Ukraine Oleksandr Kravchenko.

The legislative measures represent an important step in fulfilling Ukraine’s commitments under the Ukraine Facility and provide the basis for further financial support from the European Union. Once the necessary legislative procedures have been completed and the adopted laws signed by the President of Ukraine, they will enable Ukraine to secure EUR 411 million in financial assistance for the state budget.

Two draft laws linked to EUR 274 million in funding passed their second reading in Parliament. A third draft law, required to secure a further EUR 137 million, passed its first reading.

Key measures adopted by Parliament at second reading:

• Greater transparency at state-owned enterprises

Draft law No. 12117, “On Amendments to Certain Legislative Acts of Ukraine to Improve the Operation of Industrial Parks”, removes accumulated regulatory barriers affecting industrial parks.

Among other provisions, the draft law regulates the fulfilment of public service obligations (PSOs) in the state sector, defines the concept of a public service obligation and requires state-owned enterprises to keep separate accounts for activities associated with fulfilling such obligations. This will improve transparency at state-owned companies and bring their operating rules closer to European standards.

• Development of renewable energy and investment in renewables

Draft law No. 14271, “On Amendments to Certain Laws of Ukraine concerning the Implementation of European Union Legislation on Renewable Energy Sources”, aligns Ukrainian legislation on renewable energy with EU rules.

The draft law establishes clear rules for market development. It defines renewable energy communities and mechanisms for cooperation with EU countries, including statistical transfers and joint projects, while simplifying and standardising permitting procedures for investors.

At first reading, the Verkhovna Rada backed:

• Restoration of state aid control

Draft law No. 15437 provides for the reinstatement of certain provisions of state aid legislation and restores the powers of the Antimonopoly Committee to oversee the granting of state aid. The special arrangements for applying these rules during martial law will remain in place.

The draft law also improves the state aid monitoring mechanism. Its implementation is expected to make the use of state resources more transparent and predictable and bring Ukraine’s state aid system closer to EU rules.

Background

The Ukraine Facility is a European Union financial support programme designed to promote Ukraine’s macroeconomic stability, modernisation, reconstruction and accelerated European integration from 2024 to 2027. Funding is disbursed in tranches once Ukraine’s fulfilment of the agreed structural indicators has been confirmed.

The approved measures address the following indicators of the Ukraine Plan under the Ukraine Facility:

• Draft law No. 12117 – Indicator 6.7: “Entry into force of legislation on the separation of PSO and non-PSO activities”;
• Draft law No. 14271 – Step 10.3: “Entry into force of legislation improving permitting procedures for renewable energy investment”;
• Draft law No. 15437 – Step 6.9: “Unsuspension of the application of state aid control and harmonisation of the law on the state aid with the EU acquis”.