Constitutional Court Decision on Excise Tax
The Constitutional Court declared unconstitutional the provision of the Tax Code on excise tax from retail sale of fuel, which was in effect from January 1, 2015. The main reason was the violation of the principle of tax legislation stability, as the law came into force without providing a reasonable transition period. The Constitutional Court found that the lack of a transition period created an excessive tax burden on businesses.
Procedures for State Reserves
Two procedures for the formation and storage of state reserves have been approved. The State Reserve Agency is responsible for material reserve formation, while ministries and other authorities handle mobilization reserves. Requirements for reserve keepers have been established: at least 5 years of work experience, infrastructure availability, and absence of tax debt. Participation of companies with Russian capital is prohibited.
Judicial Decision Execution Strategy
The National Strategy for Resolving the Issue of Non-Execution of Judicial Decisions, where state bodies are debtors, has been extended until 2027. The plan includes creating a Unified Register of Enforcement Documents, reviewing social legislation, and developing mechanisms for executing decisions regarding enterprises under moratoriums.
Regulation on Insurance Intermediaries
The National Bank of Ukraine has approved a new regulation on authorization and activities of insurance intermediaries. The document establishes the procedure for broker and agent authorization, requirements for their training and qualification. A unified register of intermediaries will be created, and the procedure for monitoring their activities will be defined.
Criteria for Important Enterprises
Review of each of legal acts published today:
ON ACCOUNTING PRICES FOR BANKING METALS
This is a daily notification by the National Bank of Ukraine establishing accounting prices for banking metals (gold, silver, platinum, and palladium) as of 24.01.2025. The notification structure includes a table with metal codes (numeric and literal), measurement unit (troy ounce), and accounting price in hryvnias for each metal. It is important to note that these prices are reference and do not create obligations for the NBU to buy or sell metals at the specified prices.
Key accounting prices per troy ounce:
– Gold (XAU) – 115,214.51 UAH
– Silver (XAG) – 1,276.25 UAH
– Platinum (XPT) – 39,776.86 UAH
– Palladium (XPD) – 41,575.50 UAH
ON THE OFFICIAL EXCHANGE RATE OF HRYVNIA TO FOREIGN CURRENCIES
This is a daily notification by the National Bank of Ukraine establishing the official exchange rate of hryvnia to 35 foreign currencies as of 24.01.2025. The document contains a table with currency rates, where for each currency its numeric and literal code, number of units, full name, and official rate relative to hryvnia are indicated. Among the main currencies: US dollar – 41.9751 UAH, euro – 43.6709 UAH, pound sterling – 51.6923 UAH.
It is important to note that these rates are used for accounting purposes, for NBU operations with the State Treasury Service of Ukraine, and in other cases specified by law. The NBU does not undertake obligations to buy and sell currencies at these rates.
DECISION OF THE SECOND SENATE OF THE CONSTITUTIONAL COURT OF UKRAINE IN THE CASE OF A CONSTITUTIONAL COMPLAINT BY LIMITED LIABILITY COMPANY “GEOMAX-RESURS”
The decision concerns the constitutionality of a provision in the Tax Code of Ukraine regarding excise tax on retail fuel sales, which was in effect from January 1, 2015.
Structurally, the decision consists of three main parts: 1) description of case circumstances and parties’ positions; 2) analysis of the contested norm’s compliance with the principles of rule of law and legal certainty; 3) conclusions regarding violation of economic entities’ constitutional rights.
Key provisions of the decision:
– The Constitutional Court recognized the Tax Code provision on excise tax for retail fuel sales unconstitutional due to violation of the tax legislation stability principle
– The law effectively came into force the day after publication, without providing a reasonable transition period for business adaptation
– Lack of a transition period and comprehensive regulation of accounting procedures violated economic entities’ rights and the principle of legal certainty
– Such changes created excessive tax burden, especially on small and medium businesses, violating the competition protection principle
SOME ISSUES OF IMPLEMENTING PROVISIONS OF THE LAW OF UKRAINE “ON STATE RESERVES” REGARDING STATE RESERVE FORMATION
The resolution approves two key procedures for state reserves formation and storage.State Reserves: Material and Mobilization Reserves
The first procedure defines the mechanism for forming state reserves and moving material assets. Key provisions:
• The State Agency for Reserve Management handles the material reserve formation
• Ministries and other authorities form the mobilization reserve
• Clear requirements are established for material asset quality and documentation
• A mechanism for moving reserves in case of threat of loss or damage is defined
The second procedure regulates the selection of responsible custodians and reservists. Main requirements:
• Minimum 5 years of work experience
• Availability of appropriate storage infrastructure
• No tax arrears
• Prohibition of companies with Russian capital and offshore companies
• Special requirements for fuel storage, including protection from missile attacks
Regarding the Submission for Ratification by the Verkhovna Rada of Ukraine of the Framework Agreement between the Government of Ukraine and the Government of the Republic of Finland on Projects Financed by the Finnish-Ukrainian Investment Fund (FUIF)
The order concerns submitting an international agreement between Ukraine and Finland for ratification regarding project financing through the Finnish-Ukrainian Investment Fund. The document is a technical act initiating the ratification procedure for the Framework Agreement signed on November 12, 2024, in Kyiv. This is a standard procedure for international treaties requiring parliamentary ratification.
The key point is that the agreement creates a legal basis for financing projects through the special Finnish-Ukrainian Investment Fund (FUIF). This will enable attracting Finnish investments in Ukrainian projects based on clearly defined rules and procedures.
Regarding the Extension of the National Strategy for Resolving the Issue of Non-Execution of Court Decisions where Debtors are State Agencies or State Enterprises, Institutions, Organizations, until 2025 and the Action Plan for its Implementation
The order extends the National Strategy for resolving court decision non-execution issues involving state agencies or enterprises until 2027. The document also approves an updated action plan for implementing this strategy.
Structurally, the act consists of two parts: 1) the order to extend the strategy’s validity; 2) amendments to previous orders and a new action plan for strategy implementation until 2027.
The action plan’s main provisions include three key work directions:
– Creating a mechanism for court decision accounting and verification to determine total debt, including launching a Unified State Register of Enforcement Documents
– Reviewing social legislation, including developing a Social Code and amendments to pension legislation
– Creating mechanisms for executing court decisions regarding enterprises under moratoriums, including analyzing existing moratoriums and developing a roadmap for their phased cancellation
Regarding the Application and Cancellation of Personal Special Economic and Other Restrictive Measures (Sanctions)
This is an NSDC decision on applying personal sanctionsRegarding the Sanctions Against Certain Individuals Proposed by the Security Service of Ukraine, as well as the Cancellation of Sanctions Against One Person from the Previous Sanctions List. The document is structurally composed of 5 points and an appendix containing a list of individuals subject to sanctions. The decision provides for the exclusion of item 1825 from the previous sanctions list dated October 19, 2022. Key provisions of the decision include:
– Instructions to the Cabinet of Ministers, Security Service, National Bank, and State Awards Commission to ensure implementation and monitoring of sanctions effectiveness;
– Task for the Ministry of Foreign Affairs to inform the EU, USA, and other states about the application of sanctions and initiate the introduction of similar restrictive measures on their part.
Decree Implementing the Decision of the National Security and Defense Council of Ukraine dated January 19, 2025 “On the Application and Cancellation of Personal Special Economic and Other Restrictive Measures (Sanctions)”
The decree puts into effect the NSDC decision of January 19, 2025, regarding the application and cancellation of personal sanctions against certain individuals and legal entities. Structurally, the decree consists of three points: implementation of the NSDC decision, identification of the controlling body (NSDC Secretary), and entry into force on the day of publication. The key provision is that the decree serves as a legal basis for applying restrictive measures in accordance with the Law of Ukraine “On Sanctions”. Such sanctions may include asset freezing, trade operation restrictions, prevention of capital withdrawal from Ukraine, and other measures defined by law.
Order on Considering Remarks Expressed by the State Registration Body to the Order of the Ministry of Community and Territorial Development of Ukraine dated December 31, 2024, No. 1506
This order introduces technical amendments to the previous order of the Ministry of Community and Territorial Development of Ukraine No. 1506 dated 31.12.2024, regarding criteria for determining important enterprises during a special period. Structurally, the order contains editorial clarifications to the preamble and main text of the previous order, including punctuation corrections, terminology clarification, and references to normative acts. In particular, the writing of dates, punctuation marks are clarified, clarifying words are added, and technical errors are corrected. The main changes relate to clarifying references to the KVED-2010 classifier, replacing the ministry name from ‘Mininfrastructure’ to ‘Minrozvytku’, and correcting grammatical and punctuation errors. The order does not change the essence and content of the criteria for determining important enterprises but only improves the legal technique of the document.
Approval of the Regulation on Authorization of Insurance Intermediaries and Conditions for Implementing Insurance and/or Reinsurance Product Sales
This Regulation establishes the procedure for authorization and conditions of activity for insurance intermediaries in Ukraine. Main provisions: 1. Defines the authorization procedure for insurance and reinsurance brokers, insurance agents, additional insurance agents, and sub-agents, as well as requirements for their activities in selling insurance and reinsurance products. 2. Sets requirements for training and professional development of persons engaged in intermediary activities, the procedure for maintaining an insurance intermediary registry, and specifics of supervising their activities. 3. Regulates the procedure for notification by non-resident insurance intermediaries.
