Today, on February 4, 2023, the Cabinet of Ministers of Ukraine has adopted the draft Law of Ukraine "On Amendments to Section VI "Final and Transitional Provisions" of the Budget Code of Ukraine on the use of funds from the accounts to support Ukraine", elaborated by the Ministry of Finance.

As a reminder, with the introduction of martial law in Ukraine, the NBU was authorized to maintain accounts of state bodies intended to meet the needs of the state in repelling armed aggression against Ukraine or eliminating armed conflict and eliminating their consequences, as well as for charitable donations and humanitarian aid.

The draft law provides for the settlement of issues related to the use of funds received on these accounts at the level of budget legislation, in particular, by regulating* the following:

- allowing the main spending units of the state budget to open accounts with the NBU to collect voluntary contributions from individuals and legal entities of private law and/or public law for the implementation of measures for national security and defense, restoration, support and development of Ukraine (during the martial law and the budget period following the year in which this state is terminated or canceled);

- determination of such voluntary contributions as sources of formation of the special fund of the state budget in terms of revenues; accounting, distribution and use of these funds in accordance with the procedures established by the Cabinet of Ministers of Ukraine;

- distribution and redistribution of funds between the main spending units of the state budget, taking into account their intended purpose with the opening of new budget programs, including transfers to local budgets;

- keeping the balances of such funds on the accounts of the special fund of the state budget of the main spending units of the state budget until their full use in the next budget periods, taking into account their intended purpose.

This will help to increase the efficiency and transparency of the use of funds received from individuals and legal entities for the implementation of national security and defense measures, restoration, support, and development of Ukraine.

Background information 

*point 56 of the Final and Transitional Provisions of the Budget Code of Ukraine.

The Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine Regarding the Peculiarities of the Financial Sector in Connection with the Introduction of Martial Law in Ukraine", in particular, amended the Law of Ukraine "On the National Bank of Ukraine", according to which the National Bank is authorized to maintain accounts of state bodies intended to meet the needs of the state in repelling armed aggression against Ukraine or eliminating armed conflict and eliminating its consequences, as well as for charitable donations and humanitarian aid.

The Order of the Cabinet of Ministers of Ukraine No. 202-r dated 05.03.2022 "Certain Issues of Opening Accounts for the Restoration of Ukraine" authorized certain ministries to open accounts with the National Bank to receive funds from individuals and legal entities under private law and/or public law to restore the economy, infrastructure, and support domestic business.

The Resolution of the Cabinet of Ministers of Ukraine No. 472 dated 19.04.2022 "Certain Issues of Using Funds Received on Official Accounts for Donations in Support of Ukraine" authorized certain ministries to ensure the opening of a current account at the National Bank to receive funds in national and foreign currency from individuals and legal entities, residents and non-residents as charitable donations, humanitarian aid, grants, and gifts.