The Verkhovna Rada Committee supported amendments that liberalize rules of interaction between business and regulatory bodies


The Committee of the Verkhovna Rada of Ukraine on Industrial Policy and Entrepreneurship headed by Viktor Halasyuk supported draft laws that liberalize the rules of interaction between business and state regulatory (control) bodies.

Proposed amendments, many of which have been worked out by the Better Regulation Delivery Office (BRDO) provide reorientation of state control bodies to prevent crimes rather than apply penalties. In addition, the adoption of these draft laws will allow to reduce costs on interaction of business and these bodies by threefold.

The draft laws #2418a “On Amendments to the Law of Ukraine “On Basic Principles of State Supervision (Control) in the Sphere of Economic Activity” regarding liberalization of the state regulation system and  the draft law #2531a “On Amendments to Certain Legislative Acts of Ukraine on improvement of legislation in the sphere of state supervision (control)” are recommended by the relevant Committee of the Verkhovna Rada of Ukraine to be adopted in the second reading.

“The civilized principle of moving state bodies from penalty functions to prevention of crimes, moving away from total control to supervision can be a real reformatory achievement of the Ukrainian state supervision system. In addition, clear inspection rules will help business entities to build own activities in the process of more predictable and understandable regulation,” the head of the BRDO Control and Supervision sector Volodymyr Holovatenko commented on the Committee’s consideration results.

As a reminder, draft laws #2418a and #2531a will significantly liberalize conditions of interaction between business and regulatory bodies by:

  1. Reducing the number and duration of inspections.
  2. Unifying and timely disclosing an inspection sheet form.
  3. Restricting unscheduled inspections.
  4. Reducing the duration of inspections significantly.

Also, the Integrated automated system of state supervision (control) is created to collect, store and systematize information on inspections. This will significantly reduce the possibility to manipulate inspection results and help reduce corruption risks.

Additionally, it should be mentioned that current changes establishing administrative responsibility of collegiate body officials for violation of control and expanding the effect of the Law of Ukraine “On State Principles of State Supervision (Control) in the sphere of economic activity” on local state administrations.

A number of expert organizations worked on these initiatives jointly with BRDO experts.