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Government supports cancellation of 63 regulations – businesses to save UAH 400 million

Ministry of Economy of Ukraine, posted 21 May 2025 16:06

The Cabinet of Ministers is continuing its deregulation efforts. At its meeting on 21 May, the Government endorsed further changes developed by the Ministry of Economy. This includes a draft law to abolish 63 redundant and outdated regulatory requirements for businesses. It also proposes to eliminate administrative liability for violations of regulations that are no longer in effect. This is a logical step that reduces risks for entrepreneurs.

The measures will take effect once the draft laws are approved by the Verkhovna Rada and signed by the President.

“We are continuing deregulation, consistently reducing administrative burdens on businesses. This time, we propose to eliminate over 60 outdated tools that provide no real benefit. This will allow businesses to save approximately UAH 400 million,” said First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko.

This package was developed based on proposals from ministries, businesses, and experts. Relevant organisations and analytical centres were also involved in the process.

What is proposed for cancellation:

  • 23 tools in agriculture, forestry, hunting, fisheries, and animal welfare
  • 18 in water and air protection
  • 8 in energy, alternative fuels, construction, and explosives
  • 12 in foreign economic activity, investments, innovations, culture, and education
  • 2 in healthcare

Specific examples of outdated regulations and business savings:

  • Approval of boundaries for sanitary protection zones of water bodies – an unnecessary bureaucratic requirement that does not contribute to actual water resource protection.

Expected savings for businesses: UAH 15.5 million

  • Permit for constructing irrigation systems – hinders the development of agricultural infrastructure.

Savings: UAH 62.9 million

  • Approval from the State Labour Service for special permits to use subsoil for groundwater – duplicates existing procedures.

Savings: UAH 15.4 million

  • Certificate for storing explosives – duplicates existing permitting procedures, does not enhance safety, but creates unnecessary administrative burdens.

Savings: UAH 30.4 million

  • Certificate of state registration for technology parks – incurs significant costs without tangible benefits.

Savings: UAH 105.2 million

  • Licence for providing extracurricular education – restricts access to services and creates costs for institutions.

Savings: UAH 13.6 million

  • National film certificate – a formal requirement with minimal impact on industry development.

Savings: UAH 0.3 million

  • Permit for practising folk medicine (healing) – an ineffective tool due to the lack of standards; personal liability for harm caused is a more effective approach.

Savings: UAH 0.1 million

  • Mandatory insurance for stored grain – an unnecessary obligation that should be made voluntary.

Savings: UAH 0.3 million

Background

The deregulation reform began in January 2023. At that time, the Government established an Interagency Working Group on Deregulation, led by First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko and Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov.

The Working Group includes representatives from the Ministries of Economy, Digital Transformation, Environment, Justice, Finance, and the State Regulatory Service. Experts from BRDO, the Centre for Economic Recovery, the Centre for Economic Strategy, EasyBusiness, and the EU4Business: SME Policies and Institutions Support (SMEPIS) project, supported by the European Union, also participate.

To date, the Working Group has reviewed 1,323 regulatory tools. Of these, 456 have been recommended for cancellation, and 352 have already been abolished.

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