Analysis of the Draft Law:
Analysis of the Draft Law of Ukraine “On Ratification of the Agreement between Ukraine and the European Union”
Essence of the Draft Law: The draft law provides for the ratification of the Agreement between Ukraine and the European Union, which suspends Ukraine’s obligations to pay financial contributions in connection with joining EU programs. This decision was made in the form of an exchange of letters between the parties.
Structure and Main Provisions of the Draft Law:
- The draft law consists of one main provision that ratifies the Agreement, concluded in Brussels and Kyiv in 2023.
- The Agreement enters into force on the first day of the second month after the completion of all necessary procedures by both parties.
Key Provisions Important for Legislators, Experts, Businesses, and Citizens:
- For Legislators: The draft law simplifies Ukraine’s financial obligations to the EU, which may be an important step under conditions of limited financial resources.
- For Experts: The Agreement demonstrates the level of cooperation and mutual understanding between Ukraine and the EU, as well as the potential reallocation of finances to other priorities.
- For Business: Changes may affect the financial climate, as funds are saved that can be directed to business support and infrastructure projects.
- For Citizens: Exemption from contributions may positively impact economic stability, which in turn may reflect on social programs and overall well-being.
Explanatory Note Analysis:
Essence of the Draft Law
The draft law provides for the ratification of the Agreement between Ukraine and the European Union in the form of an exchange of letters, which suspends Ukraine’s obligations to pay financial contributions for participation in EU programs. This decision was made due to economic difficulties arising from the Russian armed aggression against Ukraine.
Reasons and Necessity for Adoption
The draft law was developed to fulfill domestic procedures necessary for the Agreement to enter into force. The main reason is the significant negative impact of Russian armed aggression on Ukraine’s economy, which makes it impossible to pay financial contributions for participation in EU programs until 2027. In this regard, Ukraine approached the EU with a request for exemption from these contributions, which was agreed upon by the European Commission.
Main Consequences of the Draft Law
Ratification of this Agreement will allow Ukraine to save approximately 3.16 billion hryvnias of the state budget during 2021-2027. This is a significant saving under ongoing armed aggression, which will allow redirecting funds to other critically important areas. For legislators, this means fulfilling international obligations; for experts, maintaining economic stability; and for citizens, the opportunity to use saved funds for social and other state needs.
Analysis of Other Documents:
The reference on coordination of the Draft Law of Ukraine “On Ratification of the Agreement (in the form of an exchange of letters) between Ukraine and the European Union” indicates support for this draft law by various ministries and state services. This includes the Ministry of Justice, Ministry of Finance, Ministry of Education and Science, and others. Thus, the document reflects the government’s positive position on adopting this draft law.
The key provisions that garnered support relate to suspending Ukraine’s obligations to pay financial contributions in connection with agreements on joining European Union programs. This may be extremely important for legislators, as it provides economic benefits for Ukraine by exempting it from financial obligations during a difficult economic period. For businesses, this may mean preserving funds that can be redirected to other priority projects. Ukrainian citizens may also benefit from reduced financial pressure on the state budget, which could lead to improvements in social programs.
