EUROPEAN COMMISSION
Brussels, 15.4.2024
COM(2024) 172 final
2024/0093(NLE)
Proposal for a
COUNCIL IMPLEMENTING DECISION
on the approval of the assessment of the Ukraine Plan
{SWD(2024) 93 final}
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Document 52024PC0172
Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the Ukraine Plan
Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the Ukraine Plan
Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the Ukraine Plan
COM/2024/172 final
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DOC
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2024/0093 (NLE)
Proposal for a
COUNCIL IMPLEMENTING DECISION
on the approval of the assessment of the Ukraine Plan
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2024/792 of the European Parliament and of the Council of 29 February 2024 establishing the Ukraine Facility 1 and in particular Article 19 thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1)On 23 June 2023, the European Council granted Ukraine the status of candidate country. The decision was based on Ukraine’s fulfilment of the conditions specified in the Commission’s opinion of June 2022 on Ukraine’s membership application. On 14 December 2023, the European Council decided to open accession negotiations with Ukraine, following the recommendation issued by the European Commission.
(2)Russia’s war of aggression had a disruptive impact on the economy of Ukraine. The economy contracted by 29.1 % in 2022 and recovered only mildly in 2023, due to the incapacitation of productive resources within territories either occupied or adjacent to the frontlines, the large-scale displacement of people, and disruptions in industry, agriculture and trade. Both inflation and unemployment increased significantly after the invasion. Due to high spending in on defence, the general government deficit reached 16 % of GDP in 2022 and 27 % in 2023. Having lost access to international financial markets, Ukraine continues to rely on foreign assistance. In 2023, 17.5 % of the net budget financing was based on external support.
(3)In this context, the Union set up an exceptional medium-term single instrument that brings together the bilateral support provided by the Union to Ukraine. In accordance with Regulation (EU) 2024/792, the Ukraine Facility (‘the Facility’) was established as a dedicated instrument with an overall maximum amount of Union support of EUR 50 000 000 000 in current prices. The Facility aims to contribute to addressing Ukraine’s financing gap and maintaining macro-financial stability until 2027 with the aim of contributing to Ukraine’s recovery, reconstruction, and modernisation needs, while supporting the country’s reform efforts on its accession path towards the Union.
(4)Financial support under Pillar I of the Ukraine Facility amounts to up to EUR 38 270 000 000. Of this, EUR 5 270 000 000 is in the form of non-repayable support, while up to EUR 33 000 000 000 is in the form of loans, including any financing that may be provided as exceptional bridge financing in accordance with Article 25 of the Regulation. Due to the exceptional bridge financing of up to EUR 6 000 000 000, the total sum of financial resources made available to the Ukraine Plan (‘the Plan’) amounts to a maximum of EUR 32 270 000 000, with up to EUR 5 270 000 000 in the form of non-repayable financial support and up to EUR 27 000 000 000 in the form of a loan.
(5)In accordance with Article 25 of Regulation (EU) 2024/792, the Commission may provide limited, exceptional support through bridge financing, in the form of loans, for a period of up to 6 months starting from 1 January 2024. This support is made available if the Plan is not adopted by 2 March 2024 or the Framework Agreement is not signed. On 14 March 2024, the Commission and Ukraine signed a Memorandum of Understanding (MoU) to provide Ukraine with up to EUR 6 000 000 000 in the form of loans as exceptional bridge financing, conditional on Ukraine’s compliance with the precondition for Union support, the fulfilment of five policy conditions and of certain reporting requirements To ensure continuity in the implementation of the reform agenda in Ukraine, these five policy conditions are also reflected in the Ukraine Plan.
(6)On 20 March 2024 Ukraine formally submitted the Plan to the Commission, in accordance with Articles 14, 16 and 17 of Regulation (EU) 2024/792. The Plan includes 15 sectoral chapters and 3 horizonal chapters on the reconstruction and modernisation processes across all levels of the government, on the mechanisms and arrangements to protect the financial interests of the Union, and on the stakeholders’ consultation during the preparation of the Plan. A total of 151 measurable qualitative and quantitative steps are linked to the funding under Pillar I of the Facility, of which 5 are allocated to the exceptional bridge financing and 146 to the financing under this Decision. These steps were identified by the European Commission and the Ukrainian Government based on the needs, priorities, and capacity of Ukraine. Beyond the measures covered under the Facility, the Plan proposes a broader reform and investment agenda. In this regard, it serves as one comprehensive Plan for the Ukrainian government, setting out the reform and investment priorities for all the donors in the short to medium term.
(7)In accordance with Article 18 of Regulation (EU) 2024/792, the Commission has assessed the Plan’s relevance, comprehensiveness, and appropriateness. In carrying out this assessment, the Commission acted in cooperation with Ukraine and other international partners. The Commission assessed in particular whether the Plan represents a needs-based, coherent, comprehensive and adequately balanced response to the objectives of the Facility, whether it contributes to and is consistent with addressing the relevant challenges identified in the context of Ukraine’s EU accession path, whether its measures are consistent with the general principles of the Facility referred to in Article 4 of Regulation (EU) 2024/792, and whether it meets Ukraine’s recovery, reconstruction and modernisation needs. The Commission also assessed whether the arrangements proposed by Ukraine can be expected to ensure an effective implementation, monitoring and reporting on the Plan, and whether they are expected to effectively ensure an adequate level of protection of the financial interests of the Union. Finally, the Commission assessed whether the Verkhovna Rada has been duly consulted in accordance with Ukraine’s national legal framework, whether the Plan considers, where appropriate, the inputs of stakeholders, and whether it ensures that other donors are able to support its objectives.
(8)The Plan proposes 69 reforms and 10 investments to be implemented with a view to achieving the general and specific objectives of the Facility. The Plan encompasses key areas, such as public administration, public financial management, the judiciary, the fight against corruption and anti-money laundering, financial markets, management of public assets, human capital, the business environment, decentralisation and regional policy, energy, transport and logistics, agri-food, management of critical raw materials, digital transformation, the green transition and environmental protection. Investments are included in six sectoral chapters, namely human capital, the business environment, energy, transport and logistics, agri-food, and decentralisation and regional policy.
(9)The 146 measurable qualitative and quantitative steps identified by the European Commission and the Ukrainian Government as conditions for receiving financing from the Facility are spread out from 2024 to 2027. The payment profile is determined by these steps and reflects Ukraine’s financing and macroeconomic needs. Considering Ukraine’s macroeconomic situation and debt sustainability, the financing is frontloaded in the first and second year of implementation. This frontloading is also reflected in the number of steps to be fulfilled. The steps under the chapter on public financial management include conditions on essential requirements, such as the maintenance of economic and financial stability, budget oversight and public financial management.
(10)The qualitative and quantitative steps linked to the reforms and investments under the Plan adequately respond to the general and specific objectives of the Facility, as set out in Article 3 of Regulation (EU) 2024/792. Each chapter of the Plan contributes either significantly or partially to at least one of the general objectives and one of the specific objectives, focusing on reforms and measures to promote the convergence with the Union, strengthening the rule of law, democracy and the respect of human rights and fundamental freedoms. The Commission will monitor the progress in the implementation of the Plan and the contribution to the general and specific objectives including via the Scoreboard of the Ukraine Plan, to be established under Article 21 of Regulation (EU) 2024/792.
(11)The qualitative and quantitative steps proposed in the Plan are expected to contribute to climate change mitigation and adaptation, environmental protection, including biodiversity conversation, and to the green transition. The steps adhere to the extent possible in a war-torn country, to the climate and environmental standards of the Union and are guided by the ‘leaving no one behind’ principle, in accordance with Article 4 of Regulation (EU) 2024/792. The steps are linked to environmental and climate policy as well as certain sectoral policy reforms that aim to mainstream sustainability practices across key sectors. These support, to the extent possible, both Ukraine’s alignment with the principle of ‘do no significant harm’ and fulfilment of its obligations under multilateral environmental agreements. At least 12 % of all investments planned under the Pillar I should be aligned with the environmental and climate objectives, considering the conditions of a war-torn country, including at least 80 % of all investments in transport infrastructure and at least 60 % of all those in energy infrastructure. The Plan also prioritises Ukraine’s digital transformation and the strengthening of its cybersecurity capabilities, paving the way towards the implementation of the EU’s 5G Security Toolbox. The Plan also recognises the critical focus on Ukraine’s labour force and human capital. In this respect, it proposes reform and investment steps to modernise the country’s social institutions, it contributes to social objectives, including the inclusion of groups in vulnerable situations such as war veterans, displaced people and ensuring the best interest of children. The Plan also promotes gender equality and the empowerment and the rights of women and girls.
(12)The Plan is expected to contribute to the overall promotion of the rule of law. The proposed reforms should enhance the accountability, integrity, and professionalism of the judiciary, improve insolvency and enforcement procedures, increase access to justice, and reinforce integrity, meritocracy, and professionalism of the prosecution service. The Plan also aims to improve the institutional capacity and the legal framework for the fight against corruption, align Ukraine’s legal framework in terms of anti-money laundering with the EU acquis and other global standards.
(13)The Plan acknowledges the need to establish a comprehensive coordination system to ensure effective reconstruction and modernisation processes across all levels of government, and the important role of sub-national authorities, in particular local self-government. In this sense, the measures in the Plan broadly reflect the recovery, reconstruction and modernisation needs of Ukraine’s regions and municipalities. One of the horizontal chapters of the Plan outlines the roles and responsibilities of state institutions and agencies, the core strategic planning documents and the fundamental principles of Ukraine's reconstruction and modernisation processes at the national and sub-national levels. The Plan proposes steps that should advance the decentralisation reform across Ukraine and should strengthen the development of regional policy, taking into account the powers, tasks and responsibilities assigned to different levels of government. A mechanism is to be put in place to involve the sub-national authorities in decision-making on the use of support in the reconstruction process at local level, together with a methodology for the tracking of the related expenditure. The equivalent of at least 20 % of the non-repayable financial support under Pillar I should be allocated to the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities, in particular local self-government, by the end of 2027.
(14)The Plan is an integral part of Ukraine’s efforts to maintain financial stability and ensure the basic functioning of the State, including the continued provision of essential public services. It is also the main tool for outlining the government’s key reform and investment agenda for the four-year period, and for mobilising stable and predictable funding from the Union. The steps identified in the Plan constitute a balanced and well-targeted response to Ukraine’s needs, amplifying the country’s growth potential in the medium-to-long term and supporting convergence towards EU’s economic, social, and environmental standards. According to the Commission’s internal simulations, if all proposed reform and investment are fully implemented, the Plan has the potential to lift Ukraine’s GDP by around 6.2 % by the end of 2027 and by around 14.2 % by 2040, when compared to a scenario without the Ukraine Plan, excluding second-round effects, also expected to be considerable.
(15)The Facility is expected to contribute to ensuring Ukraine’s fiscal sustainability. Internal simulations by Commission services project that debt would be lower by about 10 percentage points of GDP, compared to an alternative scenario without the Facility. The reforms outlined in the Ukraine Plan aim to increase investments, enhance total productivity and economic resilience, and ultimately boost growth, which will put the economy on a sounder footing. Together with the highly concessional terms of funding which would lower interest payments and debt servicing, this will help support fiscal and public debt sustainability.
(16)The Plan aims to reinforce Ukraine’s efforts on the enlargement track. The reforms and investments proposed under the Plan contribute, complement and, in certain areas, overlap with the recommendations in the Commission Opinion and its analytical report, and the 2023 EU enlargement report 2 . Most of the qualitative and quantitative steps of the Plan have a broad or a partial complementarity with the recommendations in the EU enlargement report. Many of the measures provided for in the Plan aim to bring Ukraine closer to EU standards and best practices by achieving further alignment with the EU acquis across the key areas identified in the Plan. Such alignment would also support creation of the necessary conditions for Ukraine's integration into the single market. Therefore, the Plan is consistent with and reinforces the objectives of the EU-Ukraine Association Agreement including a Deep and Comprehensive Free Trade Area. Moreover, the Plan’s focus on economic growth feeds into the EU accession process as a means to accelerate economic convergence with the EU. Achievement of the qualitative and quantitative steps of the Plan will have to be followed up by concrete implementation actions which will be duly taken into account within the framework of the accession process.
(17)The preparation of the Plan followed a comprehensive consultation process conducted by the Ukrainian government in accordance with the requirements of the Regulation. The process targeted consultations both within Ukraine, and with the international community via the Multi-Agency Donor Coordination Platform (MDCP). Within Ukraine, the government duly consulted central executive government bodies, relevant stakeholders, sub-national authorities, civil society and the Verkhovna Rada and its parliamentary committees. This was carried out through regular consultations throughout the process in various formats including presentations, workshops, written questionnaires, and dedicated discussions. Throughout the Plan’s implementation, the Ukrainian government will hold annual consultations on its progress and on the related qualitative and quantitative steps with the Verkhovna Rada and, whenever needed, with the other relevant stakeholders.
(18)The Plan includes adequate arrangements for its implementation, monitoring and reporting on the Ukraine Plan to ensure an adequate level of protection of the financial interests of the Union. Ukraine appointed a National Coordinator under the Ministry of Economy to ensure overall coordination, implementation, and monitoring of the Plan. The Ministry of Finance assumes the responsibility for auditing the implementation of the Plan and the fulfilment of the steps. The authorities responsible for implementing the qualitative and quantitative steps will work together with the National Coordinator to ensure a timely implementation. The Plan outlines the measures to prevent, detect and correct irregularities, fraud, all forms of corruption, including high-level corruption, and any other illegal activity affecting the financial interests of the Union, as well as conflicts of interest. It also sets out measures to investigate and prosecute offences affecting the funds provided under the Facility, while also envisaging a mechanism to enable judicial cooperation with competent authorities of the Union and its Member States. Lastly, it outlines the arrangements that aim to avoid double funding from the Facility and other Union programmes or donors. Ukraine should also ensure an adequate level of information and visibility in the implementation of the Plan.
(19)Ukraine should ensure that, upon request, the Commission has full access to the underlying relevant data that supports due justification of the requests for payments, both for the assessment of the requests for payment and for audit and control purposes.
(20)Throughout the implementation of the Plan, Ukraine should ensure full compliance with the provisions of the Framework Agreement concluded with the Commission, in accordance with Article 9 of the Regulation (EU) 2024/792.
(21)In accordance with Article 7 of Regulation (EU) 2024/792, Member States, third countries, international organisations, international financial institutions, or other sources may provide additional contributions to the Facility, including the Plan. The Plan does not specify financial contributions from other donors for its implementation, but it describes how it ensures coordination and alignment with the international community, including on Ukraine’s reform agenda and on the investment needs of Ukraine to ensure its reconstruction, recovery, and modernisation. To this end, during the Plan’s preparation, regular consultations were held with the G7 and partners from international financial institutions through the MDCP and associated expert groups, and with Member States. The Ukrainian government will continue to carry out consultations and ensure appropriate coordination with international partners throughout the implementation of the Plan to ensure that they are able to support its objectives.
(22)In accordance with Article 5 of Regulation (EU) 2024/792, the financial support under the Plan is to be made available under the precondition that Ukraine continues to uphold and respect effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, guarantee respect for human rights, including the rights of persons belonging to minorities and upon satisfactory fulfilment of the conditions laid down in the Plan. In this sense, crucial elements of the Plan are strengthening the rule of law, including the independence of the judiciary, the fight against corruption and in particular high-level corruption, the fight against money laundering, and strengthening public administration reform. Based on the Commission’s assessment, at the moment the assessment of the Plan is proposed for approval, Ukraine fulfils the precondition for support under the Facility.
(23)The financial resources made available to the Plan will be provided through pre-financing and 15 quarterly instalments distributed over 2024-2027 upon Ukraine’s satisfactory fulfilment of the relevant qualitative and quantitative steps identified in relation to the implementation of the Ukraine Plan. The amount of each instalment broadly reflects the number of qualitative and quantitative steps involved, also considering Ukraine’s macroeconomic situation and debt sustainability in the short term.
(24)The time limit for completing all qualitative and quantitative steps is 31 December 2027. A final instalment can be paid during the first quarter of 2028, reflecting the completion of qualitative and quantitative steps during the last quarter of 2027.
(25)The support to be provided in the form of loan is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 22(1) of Regulation (EU) 2024/792.
(26)In the Plan, Ukraine requested a pre-financing payment of 7 % of the loan support, equivalent to EUR 1 890 000 000. That amount should be made available subject to the entry into force of and in accordance with framework agreement (the ‘Framework Agreement’) to be concluded between the Union and Ukraine pursuant to Article 9 of Regulation (EU) 2024/792 and the loan agreement (the ‘Loan Agreement’) to be concluded between the Union and Ukraine pursuant to Article 22 of Regulation (EU) 2024/792 . Pre-financing should be cleared by being proportionally deducted against payment of the instalments.
(27)Following the Commission’s positive assessment of the Plan, in accordance with Article 19 of Regulation (EU) 2024/792 this Decision sets out the qualitative and quantitative steps necessary to implement the Plan, and the amount to be made available from the Union in the form of non-repayable financial support and loan support.
HAS ADOPTED THIS DECISION:
Article 1
Approval of the assessment of the Ukraine Plan
The assessment of the Ukraine Plan, on the basis of the criteria provided for by Article 18 of Regulation (EU) 2024/792, is approved. The reforms and investments projects described in the Ukraine Plan, the arrangements and timetable for monitoring and implementing the Ukraine Plan, including the qualitative and quantitative steps, and the arrangements for providing the Commission with full access to the underlying documents and data are set out in the Annex to this Decision.
Article 2
Financial contribution
1.The Union shall make available to Ukraine a financial contribution in the form of non-repayable support amounting to EUR 5 270 000 000.
2.The Union financial contribution shall be made available by the Commission to Ukraine in instalments in accordance with the Annex to this Decision.
3.The release of instalments in accordance with the Framework Agreement and Financing Agreement to be concluded between the Union and Ukraine pursuant to Articles 9 and 10, respectively, of Regulation (EU) 2024/792 shall be conditional on available budget appropriations and a decision by the Council, taken in accordance with Article 26 of Regulation (EU) 2024/792, that Ukraine has satisfactorily fulfilled the relevant qualitative and quantitative steps identified in relation to the implementation of the Ukraine Plan following a positive assessment by the Commission. In order to be eligible for payment, Ukraine shall complete the quantitative and qualitative steps no later than 31 December 2027.
Article 3
Loan support
1.The Union shall make available to Ukraine a loan amounting to a maximum of EUR 27 000 000 000.
2.The loan support referred to in paragraph 1 shall be made available by the Commission to Ukraine in instalments in accordance with the Annex to this Decision. An amount of EUR 1 890 000 000 shall be made available as a pre-financing payment, equal to 7 % of the loan support in accordance with Article 24 of Regulation (EU) 2024/792. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.
3.The pre-financing referred to in paragraph 2 shall be released subject to the entry into force of and in accordance with the Framework Agreement and the Loan Agreement provided for in Article 22 of Regulation (EU) 2024/792 to be concluded between the Union and Ukraine. Pre-financing shall be cleared by being proportionally deducted against payment of the instalments.
4.The release of instalments in accordance with the Framework Agreement and the Loan Agreement shall be conditional on available funding and a decision by the Council, taken in accordance with Article 26 of Regulation (EU) 2024/792, that Ukraine has satisfactorily fulfilled the relevant qualitative and quantitative steps identified in relation to implementation of the Ukraine Plan following a positive assessment by the Commission. In order to be eligible for payment, Ukraine shall complete the quantitative and qualitative steps no later than 31 December 2027.
Article 4
Addressee
This Decision is addressed to Ukraine.
Done at Brussels,
For the Council
The President
EUROPEAN COMMISSION
Brussels, 15.4.2024
COM(2024) 172 final
ANNEX
to the
Proposal for a
COUNCIL IMPLEMENTING DECISION
on the approval of the assessment of the Ukraine Plan
{SWD(2024) 93 final}
ANNEX
FINANCIAL SUPPORT UNDER THE UKRAINE PLAN
The instalments referred to in Article 19(.2), point (c) of Regulation (EU) 2024/792 shall be organised in the following manner, considering also the indicative maximum annual amounts as provided by the Regulation:
First instalment (Q2-2024)
Total amount: EUR 4 365 691 244
Non-repayable support: EUR 1 500 000 000
Loans: EUR 2 865 691 244
Total number of steps: 9
|
Sequential number |
Reform/Investment |
Name of the step |
|
2.2 |
C2.R1 Improved revenue management |
Adoption of the strategic plan for the digitalisation of the State Customs Service |
|
2.3 |
C2.R2 Improved public financial management |
Approval of the Budget Declaration for 2025-2027 |
|
2.7 |
C2.R4 Improved public investment management |
Adoption of the Action plan for the implementation of the Roadmap for reforming public investment management |
|
4.2 |
C4.R1 Developing the institutional capacity of the anti-corruption infrastructure |
Appointment of a new head of the National Agency on Corruption Prevention |
|
6.2 |
C6.R2 Improved governance and management of state-owned enterprises |
Entry into force of the legislation on corporate governance of state-owned enterprises |
|
8.3 |
C8.R2 Reform of the Economic Security Bureau of Ukraine |
Entry into force of the law on revising the legal basis of the Economic Security Bureau of Ukraine. |
|
10.1 |
C10.R1 Integrated National Energy and Climate Plan |
Adoption of the Integrated National Energy and Climate Plan |
|
10.15 |
C10.R7 Improved energy efficiency in public buildings and improvement of public procurement procedures |
Adoption of the Strategy for thermal modernisation of buildings until 2050 and the Action Plan |
|
12.8 |
C12.R6 Demining of land and water areas |
Adoption of the strategic document on Mine Action for the period up to 2033 |
Second instalment (Q3 2024)
Total amount: EUR 4 248 847 926
Non-repayable support: EUR 1 500 000 000
Loans: EUR 2 748 847 926
Total number of steps: 9
|
Sequential number |
Reform/Investment |
Name of the step |
|
4.1 |
C4.R1 Developing the institutional capacity of the anti-corruption infrastructure |
Increased manpower for the Specialised Anti-Corruption Prosecutor’s Office |
|
4.4 |
C4.R2 Improving the legal framework for a more effective fight against corruption |
Entry into force of the amended Criminal Code and of the Criminal Procedure Code |
|
4.6 |
C4.R2 Improving the legal framework for a more effective fight against corruption |
Adoption of an Action Plan for the implementation of the Asset Recovery Strategy for 2023-2025 |
|
7.6 |
C7.R6 Improved functioning of the labour market |
Adoption of the Demographic Development Strategy for the period up to 2040 |
|
8.1 |
C8.R1 Improved regulatory environment |
Adoption of the Action Plan on deregulation |
|
9.5 |
C9.R3 Development and implementation of regional policy |
Adoption of resolutions to amend the State Strategy for Regional Development for 2021-2027 |
|
10.8 |
C10.R3 Electricity market reform |
Entry into force of the secondary legislation on the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) law |
|
15.1 |
C15. R1 Prevention, reduction and control of industrial pollution |
Entry into force of the legislation on prevention, reduction, and control of industrial pollution with partial application of provisions |
|
15.10 |
C15.R6 Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA) |
Development of a concept note defining the scope of deviations from the Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA) rules |
Third instalment (Q4 2024)
Total amount: EUR 3 717 741 935
Non-repayable support: EUR 400 000 000
Loans: EUR 3 317 741 935
Total number of steps: 13
|
Sequential number |
Reform/Investment |
Name of the step |
|
2.1 |
C2.R1 Improved revenue management |
Adoption of the strategic plan for digitalisation of the State Tax Service |
|
3.6 |
C3.R2 Reforms of insolvency and enforcement of court decisions |
Entry into force of the legislation on the improvement of insolvency regime |
|
6.1 |
C6.R1 Adopting a state ownership policy |
Adoption of the state ownership policy and of the triage of state-owned enterprises |
|
7.5 |
C7.R5 Improved social infrastructure and de-institutionalisation |
Adoption of the Strategy for reforming Psychoneurological, Other residential Institutions and De-institutionalisation of Care for Persons with Disabilities, and Older Persons and of the Strategy for Ensuring the Right of Every Child in Ukraine to Grow Up in a Family Environment for 2024-2028 |
|
8.7 |
C8.R5 Harmonisation of legislation and standards with the EU |
Adoption of the resolution for the resumption of market surveillance measures and control of non-food products, including product safety inspection |
|
9.6 |
C9.R3 Development and implementation of regional policy |
Adoption of resolutions for development of urban planning at the local level |
|
10.2 |
C10.R2 Improved regulatory framework for increasing renewable energy and ensuring stable operation of the energy system |
Introduction of a market-based framework for renewable energy |
|
10.10 |
C10.R5 Ensuring independence of National Energy and Utilities Regulatory Commission |
Entry into force of the legislation to ensure the independence of the National Energy Utilities Regulatory Commission |
|
11.1 |
C11.R1 Comprehensive planning of transport sector |
Adoption of the revised National Transport Strategy of Ukraine until 2030 |
|
11.2 |
C11.R2 Development of Ukraine’s export logistics potential |
Adoption of the Strategy for developing and expanding the border infrastructure with EU Member States and the Republic of Moldova until 2030 |
|
12.1 |
C12.R1 Aligning the institutional framework on agriculture and rural development with the EU policy |
Adoption of the Strategy for Agriculture and Rural Development until 2030 |
|
12.5 |
C12.R4 Improvement of the official public electronic farm register |
Entry into force of the legislation on the State Agrarian Register |
|
13.1 |
C13.R1 Strengthening strategic planning and ensuring optimum framework for strategic investors |
Entry into force of the legislation on revising the National Programme for the Development of the Mineral Resource Base of Ukraine to 2030 |
Fourth instalment (Q1 2025)
Total amount: EUR 4 779 953 917
Non-repayable support: EUR 500 000 000
Loans: EUR 4 279 953 917
Total number of steps: 16
|
Sequential number |
Reform/Investment |
Name of the step |
|
1.1 |
C1.R1 Civil service remuneration reform |
Entry into force of the legislative changes to the civil service remuneration reform |
|
4.3 |
C4. R1 Developing the institutional capacity of the anti-corruption infrastructure |
Increased manpower for the High Anti-Corruption Court |
|
4.7 |
C4.R2 Improving the legal framework for a more effective fight against corruption. |
Entry into force of the law reforming the Asset Recovery and Management Agency |
|
6.6 |
C6.R3 Separation of accounts between public service obligations (PSO) and non-PSO activities in state-owned enterprises |
Adoption of Roadmap on the separation of public service obligations (PSO) and non-PSO activities |
|
7.2 |
C7.R2 Improved preschool education |
Entry into force of the legislation on preschool education |
|
7.11 |
C7.R9 Improved cultural development |
Adoption of the Strategy for the Development of Ukrainian Culture |
|
9.1 |
C9.R1 Advancing decentralisation |
Entry into force of the legislation on reforming of territorial organisation of the executive authorities in Ukraine with delayed application |
|
9.4 |
C9.R2 Increased involvement of citizens to decision making process at the local level |
Entry into force of the legislation for public consultations on public policy with delayed application |
|
12.3 |
C12.R2 Ensuring a functional land market |
Set up of an automated system for public monitoring of land relations |
|
12.7 |
C12.R5 Long-term development of the irrigation system to increase climate resilience of the sector |
Adoption of the long-term plan on the irrigation system |
|
13.5 |
C13.R2 Improved administrative procedures |
Set up of an upgraded e-cabinet of subsoil users |
|
14.1 |
C14.R1 Secure and efficient digital infrastructure |
Adoption of a revised Plan for allocation and use of the radio spectrum in Ukraine |
|
14.2 |
C14.R1 Secure and efficient digital infrastructure |
Entry into force of the legislation on strengthening the cyber security capabilities of state information resources and critical information infrastructure |
|
14.3 |
C14.R2 Digitalisation of public services |
Adoption of the Action Plan for digitalisation of public services until 2026 |
|
15.2 |
C15.R2 Climate policy |
Entry into force of the legislation on the State Climate Policy |
|
15.5 |
C15.R3 Market mechanisms of carbon pricing |
Adoption of the Action Plan for the Establishment of a National Greenhouse Gas Emissions Trading System |
Fifth instalment (Q2 2025)
Total amount: EUR 2 124 423 963
Non-repayable support: EUR 300 000 000
Loans: EUR 1 824 423 963
Total number of steps: 11
|
Sequential number |
Reform/Investment |
Name of the step |
|
3.5 |
C3.R1 Enhancing the accountability, integrity and professionalism of the judiciary |
Entry into force of the legislation revising the declarations of integrity of judges and their verification process |
|
3.8 |
C3.R2 Reforms of insolvency and enforcement of court decisions |
Entry into force of the law on the enforcement of court decisions related to monetary and non-monetary obligations and further digitalizing the enforcement proceedings. |
|
5.4 |
C5.R3 Improved resolution of non-performing loans |
Adoption of the strategy for resolution of non-performing loans |
|
7.1 |
C7.R1 Improved vocational education |
Entry into force of the legislation on vocational education |
|
7.10 |
C7.R8 Improved social security |
Adoption of the resolution on the procurement of social services |
|
8.4 |
C8.R3 Access to finance and markets |
Adoption of the Small and Medium Enterprises (SME) Strategy and Action Plan for its implementation |
|
9.2 |
C9.R1 Advancing decentralisation |
Endorsement and publication on the website of the Ministry of Communities, Territories and Infrastructure Development of Ukraine of a study on the necessary measures to grant legal personality to municipalities |
|
10.4 |
C10.R2 Improved regulatory framework for increasing renewable energy and ensuring stable operation of the energy system |
Adoption of the Roadmap of the process of separation of the Renewable Energy Surcharge from the Transmission Tariff |
|
13.3 |
C13.R2 Improved administrative procedures |
Publication of a pipeline of investment projects for extraction of critical raw materials |
|
13.4 |
C13. R2 Improved administrative procedures |
Launch of Product Sharing Agreement (PSA) international tenders ensuring their transparency |
|
15.6 |
C15.R3 Market mechanisms of carbon pricing |
Resumption of the compulsory monitoring, reporting and verifying (MRV) system |
Sixth instalment (Q3 2025)
Total amount: EUR 2 655 529 954
Non-repayable support: EUR 300 000 000
Loans: EUR 2 355 529 954
Total number of steps: 12
|
Sequential number |
Reform/Investment |
Name of the step |
|
1.2 |
C1.R2 Merit-based recruitment and selection procedure for the civil service |
Entry into force of the legislative changes to improve the procedure for entering, passing, and terminating civil service |
|
2.8 |
C2.R4 Improved public investment management |
Development and implementation of the digital management tool for the reconstruction of Ukraine |
|
3.1 |
C3.R1 Enhancing the accountability, integrity and professionalism of the judiciary |
Filling of at least 20% of judicial vacancies |
|
3.2 |
C3.R1 Enhancing the accountability, integrity and professionalism of the judiciary |
Establishment of a new court to hear administrative cases |
|
6.7 |
C6.R3 Separation of accounts between public service obligations (PSO) and non-PSO activities in public service obligations |
Assessment and, if necessary, amendment and entry into force on legislation on the separation of public service obligations (PSO) and non-PSO activities |
|
6.9 |
C6.R4 Improved state aid control framework |
Entry into force of the updated legislation on state aid and full unsuspension of the application of state aid control |
|
8.2 |
C8.R1 Improved regulatory environment |
Entry into force of the legislation in accordance with the Action Plan on deregulation in specific sectors |
|
8.8 |
C8.R5 Harmonisation of legislation and standards with the EU |
Adoption of harmonised standards for three groups of industrial products |
|
10.14 |
C10.R6 Improved efficiency in the district heating |
Entry into force of the legislation to support development of the efficient and more sustainable district heating |
|
12.4 |
C12.R3 Improving the institutional and administrative set up for managing investment programmes |
Entry into force of the legislation on the public support of agriculture of Ukraine |
|
13.2 |
C13.R1 Strengthening strategic planning and ensuring optimum framework for strategic investors |
Publishing of a report on the verification of Critical Raw Materials’ reserves of Ukraine |
|
15.4 |
C.15.R2 Climate policy |
Adoption of the second Nationally Determined Contribution of Ukraine to the Paris Agreement |
Seventh instalment (Q4 2025)
Total amount: EUR 2 921 082 949
Non-repayable support: EUR 150 000 000
Loans: EUR 2 771 082 949
Total number of steps: 17
|
Sequential number |
Reform/Investment |
Name of the step |
|
2.6 |
C2.R3 Improved public debt management |
Adoption of the medium-term state debt management strategy |
|
2.9 |
C2.R5 Improved audit and financial control system |
Adoption of the amendments to the relevant legislation on state financial control |
|
3.3 |
C3.R1 Enhancing the accountability, integrity and professionalism of the judiciary |
Settlement/adjudication of 20 % of old disciplinary cases not considered as of end of 2023 |
|
3.4 |
C3.R2 Enhancing the accountability, integrity and professionalism of the judiciary |
Completion of the qualification evaluation (vetting) in respect of 50 % of judges who still had to undergo it as of 30 September 2016 |
|
3.9 |
C3.R2 Reforms of insolvency and enforcement of court decisions |
A data collection system on the enforcement of court decisions is operational |
|
4.8 |
C4.R3 Anti-money laundering measures |
Conduct of the next National Risk Assessment |
|
5.6 |
C5.R4 Improved capacity of the financial supervisory authority |
Entry into force of the law on the improvement of the state regulation for capital markets and organised commodity markets |
|
7.4 |
C7.R4 Transition from military service to civilian life |
Entry into force of the legislation on the system of amendments to implement a transition system from military service to civilian life |
|
7.8 |
C7.R7 Ensuring access to housing for people in need |
Entry into force of the legislation on the Basic Principles of Housing Policy |
|
10.5 |
C10.R3 Electricity market reform |
Adoption of the Law on the transposition of the electricity integration package |
|
10.7 |
C10.R3 Electricity market reform |
Appointment of a new electricity market operator |
|
10.11 |
C10.R5 Ensuring independence of National Energy and Utilities Regulatory Commission |
Entry into force of the amendments to the Law of Ukraine “On the National Energy and Utilities Regulatory Commission” |
|
10.12 |
C10.R6 Improved efficiency in the district heating |
Cancelation of the moratorium on rising heat and hot water tariffs |
|
10.13 |
C10.R6 Improved efficiency in the district heating |
Adoption of the State targeted economic programme for the energy modernisation of heat generating enterprises for the period up to 2030 |
|
11.3 |
C11.R3 Liberalisation in the railways transport sector |
Entry into force of the law on railway transport with partial application of the provisions |
|
13.6 |
C13.R3 Use of modern Extraction Technologies and Integration of Ukraine into Modern Processing Value Chains |
Publication of a study on the legislation on ESG reporting |
|
15.3 |
C15.R2 Climate policy |
Adoption of the resolution on the Scientific and Expert Council on Climate Change and Preservation of the Ozone Layer |
Eight instalment (Q1 2026)
Total amount: EUR 1 858 870 968
Non-repayable support: EUR 125 000 000
Loans: EUR 1 733 870 968
Total number of steps: 12
|
Sequential number |
Reform/Investment |
Name of the step |
|
1.4 |
C1.R3 Digitalisation of civil service and human resources management |
Restoration and modernisation of the Unified Civil Service Vacancies Portal |
|
1.5 |
C1.R3 Digitalisation of civil service and human resources management |
The Human Resources Management Information System (HRMIS) is in operation |
|
3.7 |
C3.R2 Reforms of insolvency and enforcement of court decisions |
Entry into force of the legislation for simplified insolvency procedures for Micro, Small, and Medium Enterprises (MSMEs) |
|
3.12 |
C3.R4 Reform of the Prosecution Service |
Entry into force of the legislation enabling transparent and merit-based selection of management-level prosecutors |
|
5.1 |
C5.R1 Assessment of the banking sector |
Published Resilience assessment in the banking system |
|
5.2 |
C5.R2 Reducing state ownership in the banking sector |
Entry into force of the legislation on the principles for the sale of state-owned banks |
|
5.5 |
C5.R3 Improved resolution of non-performing loans |
Entry into force of the legal acts to improve resolution of non-performing loans |
|
8.5 |
C8.R3 Access to finance and markets |
Entry into force of the legislation on the simplification of the accession of immovable property to external engineering networks and improvement of regulation in the field of pipeline transport |
|
9.3 |
C9.R1 Advancing decentralisation |
Entry into force of the legislation to ensure a better distribution of powers between local governments and executive authorities |
|
12.6 |
C12.R4 Improvement of the official public electronic farm register |
Publication of report on the implementation of the state support through the public Agricultural Register |
|
15.8 |
C15.R5 Increased circular economy |
Adoption of the Strategy for implementing the principles of the circular economy and its Action Plan |
|
15.9 |
C15.R5 Increased circular economy |
Adoption of the National Waste Management Plan until 2033 |
Ninth instalment (Q2 2026)
Total amount: EUR 2 389 976 959
Non-repayable support: EUR 150 000 000
Loans: EUR 2 239 976 959
Total number of steps: 16
|
Sequential number |
Reform/Investment |
Name of the step |
|
3.10 |
C3.R2 Reforms of insolvency and enforcement of court decisions |
An upgraded IT system for enforcement of court decisions is operational |
|
4.5 |
C4.R2 Improving the legal framework for a more effective fight against corruption |
Adoption of a new Anti-Corruption Strategy and a State Anti-Corruption Program for the period after 2025 |
|
5.3 |
C5.R2 Reducing state ownership in the banking sector |
Adoption of the strategy for gradual reduction of state ownership in the banking sector |
|
6.3 |
C6.R2 Improved governance and management of state-owned enterprises |
Appointment of Supervisory boards of state-owned enterprises with a majority of independent members |
|
7.7 |
C7.R6 Improved functioning of the labour market |
Adoption of the Population Employment Strategy |
|
7.12 |
C7.I1 Investments in education |
Investments of at least EUR 300 million in education |
|
7.14 |
C7.I2 Investments in healthcare |
Investments of at least EUR 200 million in healthcare |
|
7.18 |
C7 I5 Investment in providing housing for vulnerable groups of the population |
Investments of at least EUR 200 million for providing housing for veterans with disabilities of the I-II groups, family members of deceased veterans and internally displaced persons |
|
8.10 |
C8.I1 Investments in financial support for micro-enterprises and SMEs |
Investments of at least EUR 800 million for financial support to micro-enterprises and SMEs, and small and medium processing enterprises |
|
9.7 |
C9.I1 Investments for the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities |
Allocation of at least 5% of the overall non-repayable financial support for meeting recovery, reconstruction, and modernisation needs of sub-national authorities |
|
10.6 |
C10.R3 Electricity market reform |
Entry into force of the legislation on changing the conditions of taxation of participants in the electricity market |
|
10.9 |
C10.R4 Liberalisation of electricity and natural gas prices |
Adoption of a Roadmap for gradual liberalisation of gas and electricity market, to be implemented after the expiration of the martial law |
|
11.5 |
C11.R4 Improved shipping and ports services |
Entry into force of the legislation on merchant shipping and shipping on inland waterways |
|
12.9 |
C12.I1 Investments in demining |
Investments of at least EUR 75 million in demining of agriculture land |
|
14.4 |
C14.R2 Digitalisation of public services |
Entry into force of the legal act supporting electronic identification schemes aligned with eIDAS Regulation |
|
15.7 |
C15.R4 Restoration and conservation of natural resources |
Entry into force of the Law on reducing deforestation and forest degradation |
Tenth instalment (Q3 2026)
Total amount: EUR 531 105 991
Non-repayable support: EUR 75 000 000
Loans: EUR 456 105 991
Total number of steps: 5
|
Sequential number |
Reform/Investment |
Name of the step |
|
1.3 |
C1.R2 Merit-based recruitment and selection procedure for the civil service |
Gradual restoration of merit-based recruitment in the civil service |
|
3.13 |
C3.R4 Reform of the Prosecution Service |
Entry into force of the legislation improving the disciplinary system for prosecutors and increasing the capacity of the Qualification and Disciplinary Commission of Prosecutors |
|
6.4 |
C6.R2 Improved governance and management of state-owned enterprises |
Corporatisation of key state-owned enterprises |
|
10.3 |
C10.R2 Improved regulatory framework for increasing renewable energy and ensuring stable operation of the energy system |
Entry into force of the legislation to improve permitting procedures for renewable energy investments |
|
10.16 |
C10.R7 Improved energy efficiency in public buildings and improvement of public procurement procedures |
Adoption of legal acts on setting minimum energy efficiency performance levels for buildings |
Eleventh instalment (Q4 2026)
Total amount: EUR 531 105 991
Non-repayable support: EUR 100 000 000
Loans: EUR 431 105 991
Total number of steps: 5
|
Sequential number |
Reform/Investment |
Name of the step |
|
2.4 |
C2.R2 Improved public financial management |
Conduct of the spending review of the state budget |
|
2.5 |
C2.R2 Improved public financial management |
Entry into force of the Law on Amendments to the Budget Code of Ukraine to Define the Procedure for Managing Fiscal Risks of Local Budgets |
|
3.14 |
C3.R4 Reform of the Prosecution Service |
An e-Case Management System in the criminal justice is operational |
|
7.9 |
C7.R7 Ensuring access to housing for people in need |
Entry into force of the legislation on the Social Housing Fund |
|
7.3 |
C7.R3 Improved rehabilitation system for people with disabilities |
Entry into force of the legislation on rehabilitation of persons with disabilities |
Twelfth instalment (Q1 2027)
Total amount: EUR 318 663 594
Non-repayable support: EUR 70 000 000
Loans: EUR 248 663 594
Total number of steps: 3
|
Sequential number |
Reform/Investment |
Name of the step |
|
10.17 |
C10.R7 Improved energy efficiency in public buildings and improvement of public procurement procedures |
Adoption of the legal acts on the requirements for energy labelling and eco-design as mandatory minimum criteria during public procurement |
|
11.6 |
C11.R4 Improved shipping and ports services |
Ensuring full alignment with the provisions of Regulation (EU) 2017/352 of the European Parliament and of the Council of 15 February 2017 establishing a framework for the provision of port services and common rules on the financial transparency of ports |
|
12.2 |
C12. R1 Aligning the institutional framework on agriculture and rural development to the EU policy |
Establishment of the Farm Sustainability Data Network (FSDN) system |
Thirteenth instalment (Q2 2027)
Total amount: EUR 212 442 396
Non-repayable support: EUR 50 000 000
Loans: EUR 162 442 396
Total number of steps: 2
|
Sequential number |
Reform/Investment |
Name of the step |
|
4.9 |
C4.R3 Anti-money laundering measures |
Entry into force of the legislation for a Unified Registry of bank accounts |
|
4.10 |
C4.R3 Anti money-laundering measures |
The necessary software and hardware for the Unified Registry of bank accounts is operational |
Fourteenth instalment (Q3 2027)
Total amount: EUR 212 442 396
Non-repayable support: EUR 50 000 000
Loans: EUR 162 442 396
Total number of steps: 2
|
Sequential number |
Reform/Investment |
Name of the step |
|
6.8 |
C6.R3 Separation of accounts between public service obligations (PSO) and non-PSO activities in state-owned enterprises |
Submission of an audit report confirming the separation of public service obligations (PSO) and non-PSO activities |
|
8.6 |
C8.R4 Improved public procurement |
Entry into force of the legislation on harmonising legislation in the field of public procurement with the EU acquis. |
Fifteenth instalment (Q4 2027)
Total amount: EUR 1 402 119 817
Non-repayable support: EUR 0
Loans: EUR 1 402 119 817
Total number of steps: 14
|
Sequential number |
Reform/Investment |
Name of the step |
|
3.11 |
C3.R3 Digitalisation of the judicial system |
Set up of IT solutions in the judicial system |
|
6.5 |
C6.R2 Improved governance and management of state-owned enterprises |
Submission of a report showing that the principles of corporate governance are duly followed |
|
7.13 |
C7.I1 Investments in education |
Investments of at least EUR 650 million in education |
|
7.15 |
C7.I2 Investments in healthcare |
Investments of at least EUR 400 million in healthcare |
|
7.16 |
C7.I3 Investments in social infrastructure |
Investments of at least EUR 350 million in social infrastructure |
|
7.17 |
C7.I4 Investments in compensation for damaged or destroyed housing |
Investments of at least EUR 600 million for financial compensations for damaged housing |
|
7.19 |
C7.I5 Investments in providing housing for vulnerable groups of the population |
Investments of at least EUR 450 million for providing housing for veterans with disabilities of the I-II groups, family members of deceased veterans and internally displaced persons |
|
8.9 |
C8.R6 Addressing late payments |
Entry into force of the legislation on combating late payments |
|
8.11 |
C8.I1 Investments in financial support for micro-enterprises and SMEs |
Investments of at least EUR 1.750 billion for financial support to micro-enterprises and SMEs and small and medium processing enterprises |
|
9.8 |
C9.I1 Investments for the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities |
Allocation of at least 20% of the overall non-repayable financial support for meeting recovery, reconstruction, and modernisation needs of sub-national authorities |
|
10.18 |
C10.I1 Investments in energy infrastructure |
Investments of at least EUR 550 million in energy infrastructure |
|
11.4 |
C11.R3 Liberalisation in the railways transport sector |
Adoption of the by-laws for the implementation of the legislation on railway transport |
|
11.7 |
C11.I1 Investments in transport infrastructure |
Investments of at least EUR 350 million in transport infrastructure |
|
12.10 |
C12.I1 Investments in demining |
Investments of at least EUR 150 million in demining of agriculture land |
C.1. PUBLIC ADMINISTRATION REFORM
1. Description of Reforms and Investments
The objective of this chapter is to strengthen the capacity and efficiency of the Ukrainian public administration and to gradually align the rules, standards, policies, and practices in the field of public administration with the EU acquis, policies and practices. Specifically, this chapter focuses on revising the civil service remuneration system, enhancing the merit-based recruitment and selection of the civil service, and on the digitalisation of civil service and human resources management systems.
Reform 1. Civil Service Remuneration Reform
The objective of this reform is to introduce a transparent, fair and predictable labour remuneration system in line with relevant OECD/SIGMA principles of public administration 1 .
The reform has one step. It entails the entry into force of new legislation introducing a new remuneration system based on functional classification of positions, a clear separation of wages into fixed and variable components, and reduction of the seniority supplement from 50% to 30%.
The reform is expected to be completed by Q1 2025.
Reform 2. Merit-based recruitment and selection procedure for the civil service
The objective of this reform is to introduce a meritocratic recruitment and selection procedure for civil servants, so as to ensure public trust and attract highly professional staff to the civil service.
The reform has two steps. First, it entails the entry into force of legislation to improve the procedure for entering, passing, and terminating civil service. Second, it entails the gradual restoration of merit-based selection for vacant positions for civil servants of categories A, B, and C.
The reform is expected to be completed by Q3 2026.
Reform 3. Digitalisation of civil service and human resources management
This reform is aimed at digitalising the civil service human resources management functions, focusing on the human resources management information system (HRMIS) and the unified vacancy portal in the civil service.
The reform has two steps. First, it entails the restoration of a unified vacancy portal (career.gov.ua) enabling to generate statistics on all vacancies and appointments. Second, a human resources management information system (HRMIS) shall be operational and used in all ministries and all operating /acting other central executive authorities and their territorial bodies.
The reform is expected to be completed by Q1 2026.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
1.1 |
Reform 1. Civil service remuneration reform |
Entry into force of the legislative changes to the civil service remuneration reform |
Q1 |
2025 |
Entry into force of legislation (including the adoption of the necessary secondary legal and normative acts), which complies with the relevant OECD SIGMA principles of public administration. The legislation focuses on these main areas: - introduction of remuneration based on the functional classification of positions; - a clear separation of wages into fixed or guaranteed (not less than 70% annually) and variable (not more than 30% annually) parts; - reduction of seniority supplement from 50% to 30%. |
|
1.2 |
Reform 2. Merit-based recruitment and selection procedure for the civil service |
Entry into force of the legislative changes to improve the procedure for entering, passing, and terminating civil service |
Q3 |
2025 |
Entry into force of legislation (including the adoption of the necessary secondary legal and normative acts) to improve the procedure for entering, passing, and terminating civil service. The legislation complies with the relevant OECD/SIGMA principles of public administration related to merit-based recruitment. |
|
1.3 |
Reform 2. Merit-based recruitment and selection procedure for the civil service |
Gradual restoration of merit-based recruitment in the civil service |
Q3 |
2026 |
Restoration of merit-based selection for vacant positions for all civil servants will be implemented gradually in three stages: 1) for civil service positions of category “A”; 2) for civil service positions of category “B” (in the territory controlled by Ukraine where no hostilities are taking place); 3) for civil service positions of category “C” (in the territory controlled by Ukraine where no hostilities are taking place). |
|
1.4 |
Reform 3. Digitalisation of civil service and human resources management |
Restoration and modernisation of the Unified Civil Service Vacancies Portal |
Q1 |
2026 |
The Unified Civil Service Vacancy Portal (career.gov.ua) is restored and fully functional and can generate statistics on all vacancies and appointments. |
|
1.5 |
Reform 3. Digitalisation of civil service and human resources management |
The Human Resources Management Information System (HRMIS) is in operation |
Q1 |
2026 |
The Human Resources Management Information System (HRMIS) is in operation and used in all ministries and all operating/acting other central executive authorities and their territorial bodies. |
C.2. PUBLIC FINANCIAL MANAGEMENT
1. Description of Reforms and Investments
The objective of this chapter is to enhance Ukraine’s macro-economic and financial resilience, ensure efficient use of public funds, align with EU standards, and promote a sustainable growth.
Reform 1. Improved revenue management
The objective of this reform is to enhance domestic revenue mobilisation through improved efficiency of the tax and customs administration.
The reform has two steps. First, the long-term national strategic plan for digital development, digital transformation and digitalisation of the State Customs Service shall be adopted. Second, the strategic plan for digital development, digital transformation and digitalisation of State Tax Service of Ukraine shall be adopted.
The reform is expected to be completed by Q4 2024.
Reform 2. Improved public financial management
The objective of this reform is to build an efficient public finance management system and to ensure the financial stability of the state.
The reform has three steps. First, the Budget Declaration for 2025-2027 shall be approved to restore the medium-term budget planning and ensure the predictability of budget policy. Second, the reform shall introduce annual spending reviews of the state budget taking into account OECD practices in priority areas, including social protection, education, healthcare, energy, business support. Third, a law amending the Budget Code of Ukraine to define the procedure for managing fiscal risks of local budgets shall enter into force.
The reform is expected to be completed by Q4 2026.
Reform 3. Improved public debt management
The objective of this reform is to increase the transparency of state debt management policy and the efficiency of state debt management.
The reform proposes one step, namely the adoption of the medium-term state debt management strategy for 2026-2028. The strategy shall include an analysis of current public debt structure and trends, the establishment of targets to ensure debt sustainability, and the development of measures for the domestic government securities market.
The reform is expected to be completed by Q4 2025.
Reform 4. Improved public investment management
The objective of this reform is to strengthen the institutional framework for public investment management in Ukraine, defining roles and responsibilities for participants at all stages of the investment project cycle, strategic priorities, transparency, and a digital project monitoring framework.
The reform has two steps. First, an action plan to implement a roadmap towards an improved public investment management shall be adopted. Second, the reform entails the development and implementation of a digital management tool for the reconstruction of Ukraine.
The reform is expected to be completed by Q3 2025.
Reform 5. Improved audit systems
The objective of this reform is to strengthen the audit and financial control system, in particular to achieve a high level of protection of the financial interests of the European Union regarding the funds used under Pillar I of the Ukraine Facility, in line with Article 35 of Regulation (EU) 2024/792.
The reform has one step. It entails the adoption and, where applicable, the entry into force of amendments to the resolutions or other legislation on state financial control, enabling the State Audit Service to have the means to ensure a high level of protection of the financial interest of the EU European Union, in particular for the funds used under Pillar I of the Ukraine Facility.
The reform is expected to be completed by Q4 2025.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
2.1 |
Reform 1. Improved revenue management |
Adoption of the strategic plan for digitalisation of the State Tax Service |
Q4 |
2024 |
Adoption of the strategic plan for digital development, digital transformation and digitalisation of State Tax Service of Ukraine, in line with the recommendations of the National Revenue Strategy for 2024-2030. |
|
2.2 |
Reform 1. Improved revenue management |
Adoption of the plan for the digitalisation of the State Customs Service |
Q2 |
2024 |
Adoption of the long-term national strategic plan for digital development, digital transformation and digitalisation of the State Customs Service. |
|
2.3 |
Reform 2. Improved public financial management |
Approval of the Budget Declaration for 2025-2027 |
Q2 |
2024 |
The Budget Declaration for 2025-2027 is approved and submitted to the Parliament. The Declaration focuses on these main areas: - key macroeconomic projections of economic and social development of the country; - key budget indicators (revenues, expenditures, budget deficit, public debt); - public policy priorities by spheres and expenditure ceilings for each key spending unit; - relations between the state budget and local budgets, including necessary guidance for preparing medium-term forecasts of local budgets; - fiscal risks assessment. |
|
2.4 |
Reform 2. Improved public financial management |
Conduct of the spending review of the state budget |
Q4 |
2026 |
Spending reviews of the state budget are conducted annually based on the Government decision and the methodology taking into account best OECD practices in particular in the priority areas, such as social protection, education, healthcare, energy, business support. |
|
2.5 |
Reform 2. Improved public financial management |
Entry into force of the Law on Amendments to the Budget Code of Ukraine to Define the Procedure for Managing Fiscal Risks of Local Budgets |
Q4 |
2026 |
Entry into force of the Law on Amendments to the Budget Code of Ukraine to Define the Procedure for Managing Fiscal Risks of Local Budgets. The Law focuses on these main areas: - determining entities responsible for managing fiscal risks of local budgets; - establishing the procedures for cooperation between various entities responsible for managing fiscal risks of local budgets; - defining the methodological frameworks for managing fiscal risks of local budgets. |
|
2.6 |
Reform 3. Improved public debt management |
Adoption of the medium-term state debt management strategy |
Q4 |
2025 |
Adoption of the medium-term state debt management strategy (MTDS) for 2026-2028. The MTDS focuses on these main areas: - analysis of current public debt structure and trends; - targets to ensure debt sustainability; - measures for the development of domestic government securities market. |
|
2.7 |
Reform 4. Improved public investment management |
Adoption of the Action plan for the implementation of the Roadmap for reforming public investment management |
Q2 |
2024 |
Adoption of the Action plan for the implementation of the Roadmap for reforming public investment management. The action plan focuses on these main areas and includes the sequencing and timeframe: - introduction of strategic planning for public investment in close connection with budget planning; - definition of the roles of all participants at all stages of the investment project cycle; - establishment of unified approaches to the selection, evaluation and monitoring of investment projects, regardless of the sources of funding (budget revenues, international donors, state (local) guarantees, concessions, public-private partnerships) to enable the preparation of single project pipeline; - definition of prioritisation criteria that capture defined needs, maturity of projects, and alignment with sectoral and/or regional strategies in the context of the public investment management; - introduction of an independent assessment of large public investment projects. |
|
2.8 |
Reform 4. Improved public investment management |
Development and implementation of the digital management tool for the reconstruction of Ukraine |
Q3 |
2025 |
Development and implementation of the digital management tool for the reconstruction of Ukraine, which provides public access to data on reconstruction projects at all stages, including planning, financing, procurement, construction and commissioning, to enable a public and transparent monitoring of project implementation and better coordination of reconstruction efforts between sectors. |
|
2.9 |
Reform 5. Improved audit and financial control systems |
Adoption of the amendments to the relevant legislation on state financial control |
Q4 |
2025 |
Adoption of amendments to the resolutions of the Cabinet of Ministers and, if needed, entry into force of other relevant legislation on state financial control. These changes focus on these main areas: - ensuring that the State Audit Services have the means to protect the financial interests of the Union, in particular for the funds used under Pillar I of the Ukraine Facility, based on international audit standards; - strengthening measures for monitoring the procurement procedures. |
C.3. JUDICIAL SYSTEM
1. Description of Reforms and Investments
The objective of this chapter is increasing the capacity, accountability, integrity, efficiency and transparency of the judicial system which is crucial for ensuring the rule of law and the protection of human rights in Ukraine as well as for a swift recovery, economic growth and attraction of investment.
Reform 1. Enhancing the accountability, integrity, and professionalism of the judiciary
The objective of this reform is consolidating the results of the judicial reform and building public trust in the judiciary by resuming the transparent and meritocratic selection of judges, boosting the qualification evaluation of sitting judges, strengthening the disciplinary
responsibility system, reinforcing existing judicial integrity tools, and establishing a new court to hear administrative cases involving state agencies.
The reform has five steps. First, 20% of judicial vacancies are filled based on amended legislation, which includes streamlined stages of selection and shortened mandatory judicial training periods, consistent application of clear assessment criteria and scoring methodology, and the involvement of the Public Integrity Council in assessing the integrity of judicial candidates. Second, a new court to hear administrative cases involving state agencies is established. The judges to the new administrative court will be selected following a credible integrity and professionalism check with the involvement of independent experts. Third, 20% of pending disciplinary cases are resolved with the involvement of the Disciplinary Inspectors Service on the basis of the High Council of Justice’s methodology of prioritisation. Fourth, the qualification evaluation (vetting) is completed in respect of 50% of outstanding cases. Fifth, laws and bylaws concerning revising and verification of the declarations of integrity enter into force.
The reform is expected to be completed by Q4 2025.
Reform 2. Reforms of insolvency and enforcement of court decisions
The objective of this reform is the improvement of insolvency and enforcement procedures by aligning the relevant legislation with the EU acquis and building institutional and other capacities to properly apply it.
The reform has five steps. First, legislation on improving the insolvency regime, introducing insolvency prevention system and the early warning tool for legal entities and entrepreneurs in line with the EU acquis enters into force. Second, legislation for introducing simplified insolvency procedures for Micro, Small, And Medium Enterprises (MSMEs) in line with EU acquis enters into force. Third, the law on the enforcement of court decisions related to monetary and non-monetary obligations and further digitalisation of the enforcement proceedings enters into force. Fourth, an upgraded IT system for facilitating the enforcement process, debtor asset tracking, bank account freezing, and debt recovery becomes operational. Fifth, a data collection system on the enforcement of court decisions becomes operational.
The reform is expected to be completed by Q2 2026.
Reform 3. Digitalisation of the judicial system
The objective of this reform is to enhance access to justice, increase the transparency, efficiency, and effectiveness in the operation of courts, save operational costs, and enable an evidence-based policy making in the judiciary.
The reform has one step. It entails the replacing and/or upgrading of Unified Judicial Information and Telecommunication System (UJITS) modules, and the introduction of new IT systems.
The reform is expected to be completed by Q4 2027.
Reform 4. Reform of the Prosecution Service
The objective of this reform is to reinforce integrity, meritocracy and professionalism within the prosecutorial ranks and prevent corruption in the criminal justice chain.
The reform has three steps. First, legislation establishing a transparent and merit-based selection process of management-level prosecutors enters into force. Second, legislation improving the disciplinary system for prosecutors and increasing the capacity of the Qualification and Disciplinary Commission of Prosecutors enters into force. Third, an e-Case management system in the criminal justice chain is put in place to enable the digital processing of criminal cases.
The reform is expected to be completed by Q4 2026.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
3.1 |
Reform 1. Enhancing the accountability, integrity and professionalism of the judiciary |
Filing of at least 20% of judicial vacancies are filled in. |
Q3 |
2025 |
At least 20% of judicial vacancies available as of 16. October 2023 (a total number of 2205 positions) is filled on the basis of amended legislation, which includes the following elements: - streamlined stages of selection and shortened mandatory judicial training periods; - consistent application of clear and duly published assessment criteria and scoring methodology for assessing professional competence and integrity of judicial candidates; - involvement of the Public Integrity Council in assessing the integrity of judicial candidates whenever the law requires it. |
|
3.2 |
Reform 1. Enhancing the accountability, integrity and professionalism of the judiciary |
Establishment of a new court to hear administrative cases |
Q3 |
2025 |
А new court to hear administrative cases involving national state agencies that is composed of first and appeal instances and whose judges are selected following a credible integrity and professionalism check with the involvement of independent experts is established. |
|
3.3 |
Reform 1. Enhancing the accountability, integrity and professionalism of the judiciary |
Settlement/adjudication of 20 % of old disciplinary cases not considered as of end of 2023 |
Q4 |
2025 |
20 % of old disciplinary proceedings (complaints) not considered as of 31 December 2023 are settled/ adjudicated with the involvement of the Disciplinary Inspectors Service and on the basis of the criteria for prioritisation of disciplinary complaints consideration, provided for in clause 13.7 of the Rules of Procedure of the High Council of Justice (as amended on 21 November 2023, No. 1068/0/15-23) that are published on the official website of the High Council of Justice. |
|
3.4 |
Reform 1. Enhancing the accountability, integrity and professionalism of the judiciary |
Completion of the qualification evaluation (vetting) in respect of 50 % of judges who still had to undergo it as of 30 September 2016 |
Q4 |
2025 |
Qualification evaluation (vetting) is completed in respect of 50 % of judges who still had to undergo it as of 30 September 2016 in line with the established procedures and with the involvement of the Public Integrity Council. |
|
3.5 |
Reform 1. Enhancing the accountability, integrity and professionalism of the judiciary |
Entry into force of the legislation revising the declarations of integrity of judges and their verification process |
Q2 |
2025 |
Entry into force of the laws and the bylaws of the High Qualification Commission of Judges of Ukraine revising the declarations of integrity of judges and their verification process. The acts focus on these main areas: - clarification of the content of the integrity declarations and the grounds for initiating the verification; - expansion of the time period covered by the verification; - improvement of the verification procedure by specifying the verification mechanisms and deadlines, defining the rights and obligations of the persons and entities involved in the verification process, clarifying the legal consequences of the verification. |
|
3.6 |
Reform 2. Reforms of insolvency and enforcement of court decisions |
Entry into force of the legislation on the improvement of insolvency regime |
Q4 |
2024 |
Entry into force of the law on the improvement of insolvency regime and the relevant secondary legislation, introducing insolvency prevention system and the early warning tool for legal entities and entrepreneurs in line with the principles of Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 . The new legislation focuses on these main areas: - prevention of bankruptcy and restoration of solvency of debtors - early detection of signs of crisis in the company - identification of additional opportunities for restoring solvency of companies - availability of information for the companies about the mechanisms for preventing insolvency and early warning. |
|
3.7 |
Reform 2. Reforms of insolvency and enforcement of court decisions
|
Entry into force of the legislation for simplified insolvency procedures for Micro, Small, and Medium Enterprises (MSMEs) |
Q1 |
2026 |
Entry into force of the legislation for simplified insolvency procedures for Micro, Small, and Medium Enterprises (MSMEs) in line with the principles of the Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132. The legislation is drafted based on a regulatory impact assessment with the involvement of EU experts. The legislation focuses on these main areas: - simplified out-of-court and bankruptcy procedures for MSMEs (including individual entrepreneurs); - availability of insolvency tools and services of insolvency practitioners for MSMEs; - prevention of abuse of insolvency procedures by MSMEs. |
|
3.8 |
Reform 2. Reforms of insolvency and enforcement of court decisions |
Entry into force of the legislation on improving the enforcement of court decisions related to monetary and non-monetary obligations and digitalisation |
Q2 |
2025 |
Entry into force of the law on the enforcement of court decisions related to monetary and non-monetary obligations and further digitalisation of the enforcement proceedings. |
|
3.9 |
Reform 2. Reforms of insolvency and enforcement of court decisions |
A data collection system on the enforcement of court decisions is operational |
Q4 |
2025 |
A data collection system on the enforcement of court decisions is operational. |
|
3.10 |
Reform 2. Reforms of insolvency and enforcement of court decisions |
An upgraded IT system for enforcement of court decisions is operational |
Q2 |
2026 |
The upgraded IT system for enforcement facilitating enforcement process, debtor asset tracking, bank account freezing and debt recovery is operational. |
|
3.11 |
Reform 3. Digitalisation of the judicial system |
Set up of IT solutions in the judicial system |
Q4 |
2027 |
IT solutions replacing and/or upgrading UJITS modules / introducing new IT systems implemented on the basis of the roadmap are operational. |
|
3.12 |
Reform 4. Reform of the Prosecution Service |
Entry into force of the legislation enabling transparent and merit-based selection of management-level prosecutors |
Q1 |
2026 |
Entry into force of the legislation enabling transparent and merit-based selection of management-level prosecutors. This legislation focuses on these main areas: - clear assessment criteria, including professional competence and integrity/ethics; - transparent, competitive and meritocratic selection procedure that includes a credible professionalism and integrity check; - strengthening the institutional capacity and the powers of the Prosecutor's Office and the self government bodies, in particular the Council of Prosecutors, in terms of selecting prosecutors for senior positions. |
|
3.13 |
Reform 4. Reform of the Prosecution Service |
Entry into force of the legislation improving the disciplinary system for prosecutors and increasing the capacity of the Qualification and Disciplinary Commission of Prosecutors |
Q3 |
2026 |
Entry into force of the legislation improving the disciplinary system for prosecutors and strengthening the institutional capacity of the Qualification and Disciplinary Commission of Prosecutors (QDCP). The improved legal and institutional framework aimed at implementing GRECO recommendations focuses on these main areas: - specification of disciplinary offences related to the conduct of prosecutors and their compliance with ethical standards, and expansion of the list of available disciplinary sanctions to increase their proportionality and effectiveness; - amending the provisions on the composition of the QDCP to ensure that the majority of seats are held by prosecutors elected by their colleagues and conducting an independent and objective procedure for the pre-selection of all candidates for members of the QDCP, which includes verification of their integrity; - increasing the efficiency of disciplinary proceedings by extending the statute of limitations. |
|
3.14 |
Reform 4. Reform of the Prosecution Service |
An e-Case Management System in the criminal justice is operational |
Q4 |
2026 |
An e-Case Management System in the criminal justice chain enabling digital processing of criminal cases and gradually replacing/significantly upgrading the outdated Unified Register of Pre-Trial Investigations, is operational. |
C.4. FIGHT AGAINST CORRUPTION AND MONEY LAUNDERING
1. Description of Reforms and Investment
The objective of this chapter is to reinforce the key anti-corruption agencies and to update the legal framework to increase the overall effectiveness of the anti-corruption framework and the implementation of the state’s anti-corruption policy, which is essential for a favourable business and investment climate and sustainable recovery and economic growth. The chapter also addresses the shortcomings related to asset recovery and management at institutional and procedural levels and on alignment of Ukrainian legislation with EU acquis and FATF standards in the field of anti-money laundering enabling to better tackle economic crime and to improve the overall business climate in Ukraine.
Reform 1. Developing the institutional capacity of the anti-corruption framework.
The objective of this reform is to increase the overall capacity of the anti-corruption infrastructure to fight corruption, including at the high level, via active and efficient investigation.
The reform has three steps. First, the Specialised Anti-Corruption Prosecutor’s Office (SAPO) is given the opportunity to increase its manpower from 10% to 15%. Second, a new head of the National Agency on Corruption Prevention (NACP) is appointed. Third, the number of judges and of the apparatus at the High Anti-Corruption Court (HACC) is increased by 60% and by 40% respectively.
The reform is expected to be completed by Q1 2025.
Reform 2. Improving the legal framework for a more effective fight against corruption
The overall objective of the reform is to strengthen the key anti-corruption institutions and to streamline criminal procedure to increase their efficiency, including in high-level corruption cases, while preventing instances of procedural abuse and undue interferences. The reform also addresses the shortcomings related to asset recovery and management at institutional and procedural levels.
The reform has four steps. First, the amended Criminal Code and of the Criminal Procedure Code enters into force. The amended legislation improves the provisions regulating plea bargaining; cancels the pre-trial investigation period from the time of the registration of the criminal proceedings until the notification of the suspicion and allow the adjudication of certain cases by a single judge of the High Anti-Corruption Court. Second, a new Anti-Corruption Strategy and a State Anti-Corruption Program for the period after 2025 is adopted. Third, an action plan for the implementation of the Asset Recovery Strategy for 2023-2025 is adopted. Fourth, the law reforming the Asset Recovery and Management Agency (ARMA) enters into force.
The reform is expected to be completed by Q2 2026.
Reform 3. Anti-money laundering measures
The objective of this reform is to further align Ukraine’s legal framework with the EU acquis and FATF standards and to create an effective anti-money laundering system in Ukraine to better tackle economic crime and improve the overall business climate in Ukraine.
The reform has three steps. First, the next National Risk Assessment is conducted. Second, legislation for a unified registry of bank accounts for individuals and legal entities in accordance with EU standards enters into force. Third, necessary software and hardware for the Unified Registry is put in place.
The reform is expected to be completed by Q2 2027.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
4.1 |
Reform 1. Developing the institutional capacity of the anti-corruption framework |
Increased manpower for the Specialised Anti-Corruption Prosecutor’s Office |
Q3 |
2024 |
The Specialised Anti-Corruption Prosecutor's Office is given the opportunity to increase its manpower from 10% to 15% of the manpower of the National Anti-Corruption Bureau. |
|
4.2 |
Reform 1. Developing the institutional capacity of the anti-corruption framework |
Appointment of a new head of the National Agency on Corruption Prevention |
Q2 |
2024 |
A new head of the National Agency on Corruption Prevention is appointed following a selection procedure in line with the Law on the Prevention of Corruption |
|
4.3 |
Reform 1. Developing the institutional capacity of the anti-corruption framework |
Increased manpower for the High Anti-Corruption Court |
Q1 |
2025 |
The personnel number of High Anti-Corruption Court (HACC) judges is increased by 60%, and the HACC apparatus number is increased by 40%. |
|
4.4 |
Reform 2. Improving the legal framework for a more effective fight against corruption |
Entry into force of the amended Criminal Code and of the Criminal Procedure Code |
Q3 |
2024 |
Entry into force of the Laws of Ukraine on amending the Criminal Code of Ukraine and the Criminal Procedure Code of Ukraine. The laws focus on these main areas: - improvement of the provisions regulating plea bargain; - cancellation of the pre-trial investigation period from the time of the registration of the criminal proceedings until the notification of the suspicion; - allowing to adjudicate certain cases by a single-judge of the High Anti-Corruption Court. |
|
4.5 |
Reform 2. Improving the legal framework for a more effective fight against corruption |
Adoption of a new Anti-Corruption Strategy and a State Anti-Corruption Program for the period after 2025 |
Q2 |
2026 |
Adoption and publication by the Parliament and the Government respectively of an Anti-Corruption Strategy and of a State Anti-Corruption Program for its implementation covering the period after 2025. |
|
4.6 |
Reform 2. Improving the legal framework for a more effective fight against corruption. |
Adoption of an Action Plan for the implementation of the Asset Recovery Strategy for 2023-2025 |
Q3 |
2024 |
Adoption and publication on the website of the Cabinet of Ministers of an Action Plan for the implementation of the Asset Recovery Strategy for 2023-2025. |
|
4.7 |
Reform 2. Improving the legal framework for a more effective fight against corruption. |
Entry into force of the law reforming the Asset Recovery and Management Agency |
Q1 |
2025 |
Entry into force of the Law reforming the Asset Recovery and Management Agency. The law focuses on these main areas: - a transparent and merit-based selection procedure for the head of the agency, including a credible integrity and professionalism check; - an independent external performance assessment system; - transparent procedure for the management and sale of seized assets under the agency’s control. |
|
4.8 |
Reform 3. Anti-money laundering measures |
Conduct of the next National Risk Assessment |
Q4 |
2025 |
Preparation and implementation of the next National Risk Assessment in accordance with the updated Methodology for the National Assessment of money laundering and terrorist financing risks in Ukraine |
|
4.9 |
Reform 3. Anti-money laundering measures |
Entry into force of the legislation for a unified registry of bank accounts |
Q2 |
2027 |
Entry into force of the necessary legal framework for a unified registry of bank accounts for individuals and legal entities in accordance with EU standards, amending the Ukrainian legislation in the fields of tax, banking, anti-money laundering, capital market and payment services. |
|
4.10 |
Reform 3. Anti money-laundering measures. |
The necessary software and hardware for the Unified Registry is operational |
Q2 |
2027 |
The necessary software and hardware for the Unified Registry of bank accounts is operational. |
C.5. FINANCIAL MARKETS
1. Description of Reforms and Investments
The objective of this chapter is to leverage the potential of Ukraine’s financial sector to drive economic growth and support recovery, by monitoring the health of the banking sector to maintain financial stability, strengthening regulatory framework in aligning with EU standards, addressing non-performing loans, and improving the regulation of capital markets.
Reform 1. Assessment of the banking sector
The objective of this reform is to return to the regular assessment process, identify potential vulnerabilities within major banks, and ensure the resilience of the banking system in Ukraine.
The reform has one step. The National Bank of Ukraine shall carry out a resilience assessment of the largest banks that includes stress testing under the adverse scenario as well as an independent Asset Quality Review.
The reform is expected to be completed by Q1 2026.
Reform 2. Reducing state ownership in the banking sector
The objective of this reform is to lay down the principles for the sale of state-owned banks and the strategy for gradually reducing state ownership in the banking sector.
The reform has two steps. First, an updated legislation shall establish guiding principles for the sale of varying ownership stakes in SOBs, while also providing the flexibility for complete acquisition. Second, a strategy shall be adopted, preparing for a gradual reduction of state-ownership in SOBs.
The reform is expected to be completed by Q2 2026.
Reform 3. Improved resolution of non-performing loans
The objective of this reform is to improve the resolution of non-performing loans (NPLs).
The reform has two steps. First, Ukraine shall adopt a strategy for the resolution of NPLs, focusing on prudential requirements and improving the framework for NPL restructuring and resolution. Second, the subsequent legislative amendments to the relevant laws shall be adopted, addressing the recommendations of the strategy.
The reform is expected to be completed by Q1 2026.
Reform 4. Improved capacity of the financial supervisory authority
The objective of this reform is to improve the state regulation for capital markets and organised commodity markets.
The reform has one step. It entails the entry into force of the law on the improvement of state regulation for capital markets and organised commodity markets, aligned with International Organization of Securities Commissions (IOSCO) standards.
The reform is expected to be completed by Q4 2025.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
5.1 |
Reform 1. Assessment of the banking sector |
Published Resilience assessment in the banking system |
Q1 |
2026 |
The National Bank of Ukraine (NBU) publishes the Resilience Assessment of the largest banks in the banking system (in terms of assets) that includes stress testing under the adverse scenario, and the results of an independent Asset Quality Review if conditions allow it to be carried out. |
|
5.2 |
Reform 2. Reducing state ownership in the banking sector |
Entry into force of the legislation on the principles for the sale of state-owned banks |
Q1 |
2026 |
Entry into force of the updated legislation on the sale of state-owned banks, namely, the Law of Ukraine “On Divesting State-Owned Shareholdings in the Charter Capital of Banks that Have Undergone Recapitalisation by the State" No. 4524-VI dated 2012. The revised legislation should facilitate the sale of varying ownership stakes in State-owned banks (SOBs), while also providing the flexibility for complete acquisition. The fundamental principles guiding the sale of SOBs will be developed through collaborative discussions and in consensus with the international donors. |
|
5.3 |
Reform 2. Reducing state ownership in the banking sector |
Adoption of the strategy for gradual reduction of state ownership in the banking sector |
Q2 |
2026 |
Adoption of the resolution of the Government or other legal act of the Government adopting the reform strategy for the SOBs, which sets out a gradual reduction in state ownership in the banking sector. The strategy focuses on these main areas: - financial health and stability; - management of non-performing loans; - mitigation of fiscal risks; - enhancement of bank governance and operational efficiency; - bank value enhancement, long-term viability, and steps towards privatisation (when relevant). |
|
5.4 |
Reform 3. Improved resolution of non-performing loans |
Adoption of the strategy for resolution of non-performing loans |
Q2 |
2025 |
Adoption of the strategy for resolution of non-performing loans in line with the relevant EU practices. The strategy focuses on these main areas: - strengthening of the prudential requirements for the NPL recognition and resolution; - exchange of data on the NPLs and other relevant market data between the financial institutions and state agencies to improve NPL resolution; - review of potential obstacles and development of measures to improve the framework for NPL restructuring and resolution. |
|
5.5 |
Reform 3. Improved resolution of non-performing loans |
Entry into force of the legal acts to improve resolution of non-performing loans |
Q1 |
2026 |
Entry into force of the legal acts implementing the recommendations of the strategy for resolution of non-performing loans improving the system of NPLs resolution. |
|
5.6 |
Reform 4. Improved capacity of the financial supervisory authority |
Entry into force of the law on the improvement of the state regulation for capital markets and organised commodity markets |
Q4 |
2025 |
Entry into force of the Law on the improvement of state regulation for capital markets and organised commodity markets, aligning it with IOSCO standards. This refers to the ability of the National Commission on Securities and Stock Market (NSSMC) to operate free from external influence, particularly from political or industry pressures, make decisions based on the law and the best interests of market integrity and investor protection, rather than external interests, and have strong enforcement mechanisms and international cooperation. |
C.6. MANAGEMENT OF PUBLIC ASSETS
1. Description of Reforms and Investments
The objective of this chapter is to improve the state ownership policy, corporate governance and management of Ukraine’s state-owned enterprises (SOEs) as well as to harmonise the State Aid framework with the EU acquis. This serves to improve transparency and efficiency and supports strengthening the level playing field with the private sector.
Reform 1. Adopting a state ownership policy
The objective of this reform is to adopt a state ownership policy that would reflect long-term and whole-of-government priorities of SOEs ownership. The triage of SOEs shall be renewed according to the principles laid out in the state ownership policy. The triage of SOEs shall result in a list of SOEs that will remain in state ownership as strategic, a list of SOEs that will be proposed for privatisation, also indicating all SOEs which are temporarily banned for privatisation during the martial law in a dedicated subsection, and a list of SOEs which will be liquidated.
The reform has one step. It entails entry into force of legislation introducing the state ownership policy, and the publication of the triage of SOEs.
The reform is expected to be completed by Q4 2024.
Reform 2. Improved governance and management of state-owned enterprises
The objective of this reform is to facilitate the transition from the state unitary enterprise legal form into more commercially oriented forms, to foster a more efficient and transparent governance framework for state-owned enterprises (SOEs) via enhancing corporate governance standards and implementation in top SOEs, and to consolidate the SOE management entities.
The reform has four steps. First, a new law enters into force that improves corporate governance of SOEs taking into account OECD guidelines 2 , including by defining the powers of SOEs’ supervisory boards. Second, supervisory boards with a majority of independent members in at least 15 top key SOEs are appointed. Third, Ukraine corporatises at least 15 top key SOEs as either joint-stock companies or limited liability companies. Fourth, authorities implement corporate governance principles across the consolidated SOE management entities.
The reform is expected to be completed by Q4 2027.
Reform 3. Separation of accounts between public service obligations (PSO) and non-PSO activities in state-owned enterprises
The objective of this reform is to strengthen the level playing field with the private sector, as well as further convergence with the EU acquis via a separation of accounts between activities connected to Public Service Obligations (PSOs) from non-PSOs activities.
The reform has three steps. First, Ukraine shall adopt and publish a Roadmap defining the necessary steps for mandatory structural separation of accounts between PSO and non-PSO activities for all SOEs engaged in PSOs. Second, Ukraine shall assess and, if needed, amend legislation on the mandatory structural separation of accounts between PSO and non-PSO activities. Third, Ukraine shall publish an independent audit report on SOEs which are involved in the PSO activities assessing, among else, implementation of accounts separation and market compliance on cross-subsidisation.
The reform is expected to be completed by Q3 2027.
Reform 4. Improved state aid control framework
The objective of this reform is to lift the suspension of application of State aid control and align the State aid control framework with that of the EU, which would result in more transparency over the state funding to SOEs.
The reform has one step. It entails the updating of legislation on state aid, including in relation to services of general economic interest, together with the full lifting of suspension of application of state aid control by the Antimonopoly Committee of Ukraine.
The reform is expected to be completed by Q3 2025.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
6.1 |
Reform 1. Adopting a state ownership policy |
Adoption of the state ownership policy and of the triage of state-owned enterprises |
Q4 |
2024 |
Adoption and publication of the Resolution of the Cabinet of Ministers of Ukraine on Approving the General State Ownership Policy and the ‘triage’ of SOEs. The State Ownership Policy focuses on these main areas: - listing the public policy objectives that SOEs are required to achieve; - describing the state’s role in the governance of SOEs; how the state will implement its ownership policy; and the respective roles and responsibilities of those government authorities involved in its implementation; - defining the overall rationales for keeping SOEs under state ownership and subjects these rationales to regular reviews;
- setting long-term and whole-of-government priorities of SOEs ownership;
The ownership policy allows for the implementation of OECD Corporate governance reforms in DSO companies to improve competition in natural gas markets. The triage of SOEs leads to the following outcomes: - a list of SOEs that will remain in state ownership as strategic; - a list of SOEs that will be proposed for privatisation, also indicating all SOEs which are temporarily banned for privatisation during the martial law in a dedicated subsection; - a list of SOEs which will be liquidated. |
|
6.2 |
Reform 2. Improved governance and management of state-owned enterprises |
Entry into force of the legislation on corporate governance of state-owned enterprises |
Q2 |
2024 |
Entry into force of the new law on corporate governance of SOEs taking into account OECD guidelines on corporate governance. The law focuses on these main areas: - defining the powers of SOEs’ supervisory boards to appoint and dismiss CEOs; - defining the powers of SOEs’ supervisory boards to approve the strategic, investment and financial plans documents of SOEs; - establishing an annual evaluation procedure for the supervisory boards of SOEs. |
|
6.3 |
Reform 2. Improved governance and management of state-owned enterprises |
Appointment of Supervisory boards of state-owned enterprises with a majority of independent members |
Q2 |
2026 |
Supervisory boards with a majority of independent members are appointed by the government for at least 15 SOEs from the list of top key SOEs approved by the Cabinet of Ministers protocol decision. The Supervisory boards are be selected on the basis of up-to-date secondary legislation involving the nomination procedures. |
|
6.4 |
Reform 2. Improved governance and management of state-owned enterprises |
Corporatisation of key state-owned enterprises |
Q3 |
2026 |
At least 15 SOEs from the list of top key SOEs approved by a Cabinet of Ministers protocol decision are corporatised as either joint-stock companies or limited liability companies. |
|
6.5 |
Reform 2. Improved governance and management of state-owned enterprises |
Submission of a report showing that the principles of corporate governance are duly followed |
Q4 |
2027 |
The first annual report with the financial and operational results showing that the principles of corporate governance are duly followed is shared with the European Commission.
Before the consolidated SOE management entities are created, the following key principles of corporate governance are put in place and enforced: - the roles of the Cabinet of Ministers, Ministry of Finance, the Ministry of Economy are clearly defined, and the Parliament oversight is enforced; - the mandate and scope of the consolidated SOE management entities are clearly defined fully in line with the State Ownership Policy; - public finance management considerations are embedded in the charters of the consolidated SOE management entities. |
|
6.6 |
Reform 3. Separation of accounts between public service obligations (PSO) and non-PSO activities in state-owned enterprises |
Adoption of Roadmap on the separation of public service obligations (PSO) and non-PSO activities |
Q1 |
2025 |
Adoption and publication of the Roadmap defining the steps for mandatory structural separation of PSO and non-PSO activities for all SOEs engaged in PSOs. The Roadmap is based on the identified current level of adoption of required accounting approaches and include operational steps for the separation of accounts for companies on different stages of implementation of required changes. The Roadmap describes how the account separation between PSO and non-PSO activities will be performed in all top key SOEs approved by the Cabinet of Ministers protocol decision. |
|
6.7 |
Reform 3. Separation of accounts between public service obligations (PSO) and non-PSO activities in state-owned enterprises |
Assessment and, if necessary, amendment and entry into force on legislation on the separation of public service obligations (PSO) and non-PSO activities |
Q3 |
2025 |
Assessment and, if needed, amendment and entry in force of the legislation identified in the Roadmap adopted under step 6.6 to ensure that mandatory structural separation of accounts between PSO and non-PSO activities is defined and implemented in all top key SOEs approved by the Cabinet of Ministers protocol decision which are engaged in PSOs. |
|
6.8 |
Reform 3. Separation of accounts between public service obligations (PSO) and non-PSO activities in state-owned enterprises |
Submission of an audit report confirming the separation of public service obligations (PSO) and non-PSO activities |
Q3 |
2027 |
Submission of an independent audit report conducted by an audit company that is part of the international auditing network and, according to national legislation, has the right to conduct a mandatory audit of the financial statements of enterprises of public interest. Such a report contains a detailed assessment on the following areas for each SOE assigned PSO: - implementation of accounts separation; - market compliance on cross-subsidisation; - definition of public service obligations for each SOE; - costs, financial flows and liabilities stemming from the Public Service obligations. |
|
6.9 |
Reform 4. Improved state aid control framework |
Entry into force of the updated legislation on state aid and full unsuspension of the application of state aid control |
Q3 |
2025 |
Entry into force of the updated legislation on state aid, including those in relation to services of general economic interest, together with the full unsuspension of the application of state aid control by the Antimonopoly Committee of Ukraine. |
C.7. HUMAN CAPITAL
1. Description of Reforms and Investments
The objective of this chapter is to present reforms considered necessary to halt recent years’ erosion of human capital, while simultaneously laying a foundation for a sustainable recovery, reconstruction and modernisation process.
Reform 1. Improved vocational education
The objective of this reform is to ensure that education meets the needs of the labour market and the country’s recovery via expanding the institutional capacity of educational entities to provide formal and non-formal vocational education, and regulating the relations between vocational education institutions, national/local and international stakeholders for the sustainable development of human capital in Ukraine.
The reform has one step. It entails the entry into force of the law on vocational education.
The reform is expected to be completed by Q2 2025.
Reform 2. Improved preschool education
The objective of this reform is to ensure access to quality preschool education with the aim to increase the involvement of women with preschool children into the labour market.
The reform has one step. It entails the entry into force of the law on preschool education.
The reform is expected to be completed by Q1 2025.
Reform 3. Improved rehabilitation system for people with disabilities
The objective of this reform is to improve the rehabilitation system and to allow for a broader assessment of people’s needs through a new electronic system.
The reform has one step. It entails the entry into force of legislation for aligning with international standards for measuring functioning, disability and health, and introducing an electronic system containing information about the needs of the individual and automatically offering services in accordance with the identified needs.
The reform is expected to be completed by Q4 2026.
Reform 4. Transition from military service to civilian life
The objective of this reform is to facilitate the transition from military service to civilian life, including active participation in social and economic life.
The reform has one step, namely the entry into force of the legislative measures required for the implementation of the transition system and associated services.
The reform is expected to be completed by Q4 2025.
Reform 5. Improved social infrastructure and de-institutionalisation
The objective of this reform is to improve the well-being of children, persons with disabilities, and the elderly in the public care system.
The reform has one step. It entails the adoption of two strategies for reforming psychoneurological and other residential institutions and de-institutionalisation of care for children, persons with disabilities and the elderly.
The reform is expected to be completed by Q4 2024.
Reform 6. Improved functioning of the labour market
The objective of this reform is to contribute to the improved functioning of the labour market.
The reform has two steps. First, a strategy shall be adopted aiming to improve the demographic situation of Ukraine up to 2040, including reducing premature mortality, and overcoming negative migration trends. Second, a population employment strategy shall be adopted that proposes measures to update the conditions of Ukraine’s labour market, such as simplified access to the labour market, and a reformed state employment service.
The reform is expected to be completed by Q2 2026.
Reform 7. Ensuring access to housing for people in need
The objective of this reform is to develop the framework for a social housing system.
The reform has two steps. First, legislation shall enter into force that that establishes key priorities for Ukraine’s housing policy, such as the need for transparency, accessibility for most vulnerable groups, or the creation of support schemes. Second, legislation establishing a social housing fund shall enter into force.
The reform is expected to be completed by Q4 2026.
Reform 8. Improved social security
The objective of this reform is to improve the provision of public social services, through the introduction of mechanisms for procuring certain social services from registered providers.
The reform has one step. It entails the adoption of a resolution that reforms the social procurement system for social services, changes the financing model to a result-oriented purchasing model of social services, and incentivises the provision of social services usually not financed by the community.
The reform is expected to be completed by Q2 2025.
Reform 9. Improved cultural development
The objective of this reform is to promote Ukraine’s cultural heritage.
The reform has one step. It entails the adoption of a strategy that establishes priority goals such as improving the quality and accessibility of Ukraine’s cultural offer, as well as capacity building for Ukraine’s cultural institutions.
The reform is expected to be completed by Q1 2025.
Investment 1. Investments in education
The objective of this investment is to improve access to safe and quality public education.
The investment has two steps. First, it entails the budgeting of at least EUR 300 million in current prices (in UAH equivalent) for improving access to safe and quality education for the years 2024 and 2025. Second, it entails the budgeting of at least EUR 650 million in (UAH equivalent) for improving the access to safe and quality education for the years 2024, 2025, 2026, and 2027.
The investment is expected to be completed by Q4 2027.
Investment 2. Investments in healthcare
The objective of this investment is to improve Ukraine’s public healthcare system.
The investment has two steps. First, it entails budgeting at least EUR 200 million in current prices (in UAH equivalent) for strengthening of the healthcare infrastructure and facilities, digitalisation of healthcare services, and the provision of equipment for medical analysis, surgery, and patient care for the years 2024 and 2025. Second, it entails budgeting at least EUR 400 million (in UAH equivalent) for strengthening the healthcare infrastructure and facilities, digitalisation of healthcare services, and the provision of equipment for medical analysis, surgery, and patient care for the years 2024, 2025, 2026 and 2027.
The investment is expected to be completed by Q4 2027.
Investment 3. Investments in social infrastructure
The objective of this investment is to strengthen Ukraine’s social infrastructure.
The investment has one step. It entails the budgeting of at least EUR 350 million in current prices (in UAH equivalent) for the restoration, construction (new construction, reconstruction, overhaul, restoration) of damaged/destroyed social infrastructure.
The investment is expected to be completed by Q4 2027.
Investment 4. Investments in compensation for damaged or destroyed housing
The objective of this investment is to improve access to affordable housing and improve the quality and accessibility of housing.
The investment has one step. It entails the budgeting of at least EUR 600 million in current prices (in UAH equivalent) for the compensations paid to persons whose housing was damaged or destroyed as a result of Russia’s war of aggression.
The investment is expected to be completed by Q4 2027.
Investment 5. Investments in housing provision for vulnerable groups of the population
The objective of this investment is to improve access to affordable housing and improve the quality and accessibility of housing with particular focus on veterans, with disabilities, their family members and internally displaced persons (IDPs).
The investment has two steps. First, it entails the budgeting of at least EUR 200 million in current prices (in UAH equivalent) for the provision of housing for persons with disabilities of group I-II for the years 2024 and 2025. Second, it entails the budgeting of at least EUR 450 million (in UAH equivalent) for the provision of housing for persons with disabilities of group I-II for the years 2024, 2025, 2026 and 2027.
The investment is expected to be completed by Q4 2027.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
7.1 |
Reform 1. Improved vocational education |
Entry into force of the legislation on vocational education |
Q2 |
2025 |
Entry into force of the Law of Ukraine “On Vocational Education.” The law focuses on these main areas: - fair rules for the functioning of educational entities in the market of educational services in the field of vocational education are defined; - the institutional capacity of educational entities to provide formal and non-formal vocational education is expanded; - relations between vocational education institutions, national/local and international stakeholders for the sustainable development of human capital in Ukraine are clearly defined. |
|
7.2 |
Reform 2. Improved preschool education |
Entry into force of the legislation on preschool education |
Q1 |
2025 |
Entry into force of the Law of Ukraine “On Preschool Education” in alignment with the Council Recommendation of 22 May 2019 on High-Quality Early Childhood Education. The law focuses on these main areas: - guarantees of access to preschool education for children of early and preschool age; - fair rules for the functioning of educational entities in the market of educational services in the field of preschool education; - decent working conditions for employees in the field of preschool education; - the rules for the functioning of a flexible and efficient network of preschool education providers. |
|
7.3 |
Reform 3. Improved rehabilitation system for people with disabilities |
Entry into force of the legislation on rehabilitation of persons with disabilities |
Q4 |
2026 |
Entry into force of the Law of Ukraine “On Amendments to the Law of Ukraine “On Rehabilitation of Persons with Disabilities in Ukraine”. The law focuses on these main areas: - use of the International Classification of Functioning Disability and Health; - introduction of an electronic system that contains information about the needs of the individual and automatically offers services in accordance with the identified needs (social, medical, and other). |
|
7.4 |
Reform 4. Transition from military service to civilian life |
Entry into force of the legislation on the system of amendments to implement a transition system from military service to civilian life |
Q4 |
2025 |
Entry into force of the Law of Ukraine of Amending Certain Legislative Acts of Ukraine on Introducing the Transition System from military service to civil life and adoption of the Resolutions of the Cabinet of Ministers of Ukraine regarding approval of the procedures and terms and conditions for provision of services to participants of the transition system. These acts focus on these main areas: - rehabilitation and medical care, including psychological assistance; - training, retraining and professional development programmes; - the necessary conditions for employment of veterans as a separate category; - measures to support veteran businesses. |
|
7.5 |
Reform 5. Improved social infrastructure and de-institutionalisation |
Adoption of the Strategy for reforming Psychoneurological, Other residential Institutions and De-institutionalisation of Care for Persons with Disabilities, and Older Persons and of the Strategy for Ensuring the Right of Every Child in Ukraine to Grow Up in a Family Environment for 2024-2028 |
Q4 |
2024 |
Adoption of the Order of the Cabinet of Ministers ‘On Approval of the Strategy for Reforming Psychoneurological, Other Residential Institutions and De-institutionalisation of Care for Persons with Disabilities and Older Persons’ and of the Order of the Cabinet of Ministers ‘On Approval of the Strategy for ensuring the right of every child in Ukraine to grow up in a family environment for 2024-2028’. The strategies focus on these main areas: - development of social services to support families with children, people with disabilities and older persons to live independently in the community and prevent institutionalisation; - development of assisted living services for people with disabilities and older people who need additional support; -providing family-based forms of upbringing (e.g. foster care, guardianship, and adoption) for children left without parental care. |
|
7.6 |
Reform 6. Improved functioning of the labour market |
Adoption of the Demographic Development Strategy for the period up to 2040 |
Q3 |
2024 |
Adoption of the Order of the Cabinet of Ministers of Ukraine “On Approval of the Demographic Strategy of Ukraine for the Period up to 2040”. The Strategy focuses on these main areas: - improving the situation in the field of fertility; - reducing premature mortality, especially among men of working age; - overcoming negative migration trends, through the return of forced migrants, attracting representatives of the foreign diaspora to Ukraine, etc.; - promoting active longevity; - creating infrastructure and security preconditions for improving the demographic situation. |
|
7.7 |
Reform 6. Improved functioning of the labour market |
Adoption of the Population Employment Strategy |
Q2 |
2026 |
Adoption of the Order of the Cabinet of Ministers of Ukraine on approving the Population Employment Strategy. The strategy focuses on these main areas: - creation of favourable conditions for employment, including through entrepreneurship and with a particular focus on women; - simplification of access to the labour market; - retraining and re-qualification; - reform the state employment service; - reform the labour market forecasting; - incentives to attract foreign talent to the Ukrainian labour market foreign entrepreneurs, highly skilled and working personnel and students. |
|
7.8 |
Reform 7. Ensuring access to housing for people in need |
Entry into force of the legislation on the Basic Principles of Housing Policy |
Q4 |
2025 |
Entry into force of the Law of Ukraine "On Basic Principles of Housing Policy". The Law focuses on these main areas: - accessibility of housing for the most vulnerable categories of citizens should become the main principle in the provision of housing; - creation of various support mechanisms for citizens with different financial capacities and determination of criteria for access to them; - regulating the legal basis for the introduction of lease of communal housing, lease of communal housing with the right to buy; - creating a transparent system for registering the housing needs of citizens to ensure prompt response at the local level; - creating a transparent framework for monitoring by the public, civil society and the international community. |
|
7.9 |
Reform 7. Ensuring access to housing for people in need |
Entry into force of the legislation on the Social Housing Fund |
Q4 |
2026 |
Entry into force the Law of Ukraine on Amendments to the Law of Ukraine "On Social Housing Fund" (or the new version of this Law). The Law focuses on these main areas: - establishing an institutional framework to ensure a sufficient supply of social housing projects; - establishing a transparent system for monitoring the needs of citizens to ensure prompt response at the local level; - establishing a transparent framework for monitoring by the public, civil society and the international community; - improving the capacity of the institutional framework to ensure a sufficient supply of social housing projects; - improving the rules for the establishment and operation of social housing, including ensuring compliance with energy efficiency, safety, and other standards. |
|
7.10 |
Reform 8. Improved social security |
Adoption of the resolution on the procurement of social services |
Q2 |
2025 |
Adoption of the Resolution of the Cabinet of Ministers of Ukraine on purchasing social services at the expense of the state budget. The Resolution is fiscally neutral and does not impact in any way the debt sustainability of Ukraine and focuses on these main areas: - transition from financing institutions to a result-oriented purchasing model of social services; - introducing a mechanism for purchasing certain social services from registered public and private social service providers based on established social service standards and criteria for providers. |
|
7.11 |
Reform 9. Improved cultural development |
Adoption of the Strategy for the Development of Ukrainian Culture |
Q1 |
2025 |
Adoption of an Order by the Cabinet of Ministers approving the Strategy for the Development of Ukrainian Culture. The strategy focuses on these main areas: - preservation, safeguarding and promotion of cultural heritage and properties of Ukrainian people as an integral part of common European cultural area, preservation of national remembrance; - rendering of high-quality and accessible cultural services and opportunities for creative self-realisation of people; - capacity building of Ukrainian cultural institutions to enhance accessibility, share the best practices of cultural participation, and strengthen international cultural relations; - support to creative industries sector as a driver of social innovation and employment, enhancement of institutional capacities of creative industries. |
|
7.12 |
Investment 1. Investments in education |
Investments of at least EUR 300 million in education |
Q2 |
2026 |
Interim report of the government (or State Treasury report) showing that in the State Budgets for 2024 and 2025 the general government budgeted in particular, to the regional and local levels (as part of indicator 9.7), at least EUR 300 million (in UAH equivalent) for improving the access to safe and quality education, including preschool education in line with the new legislation on preschool education, among others for the following:
|
|
7.13 |
Investment 1. Investments in education |
Investments of at least EUR 650 million in education |
Q4 |
2027 |
Final report of the government (or State Treasury report) showing that in the State Budgets for 2024, 2025, 2026, and 2027, the general government budgeted in particular, to the regional and local levels (as part of the indicator 9.8) at least EUR 650 million (in UAH equivalent) for improving the access to safe and quality education, including preschool education in line with the new legislation on preschool education, among others for the following: - shelters and safe conditions in educational establishments; - school buses; - modern teaching method, including through digitalisation; - materials and equipment for educational establishments; - quality nutrition; - new VET centres based on market demand for skilled labour and in accordance with standards for effective VET, in line with the new legislation on Vocational Education. |
|
7.14 |
Investment 2. Investments in healthcare |
Investments of at least EUR 200 million in healthcare |
Q2 |
2026 |
Interim report of the government (or Treasury report) showing that in the State Budgets for 2024 and 2025 the general government budgeted, part of which will be budgeted to the regional level (as a part of indicator 9.7), at least EUR 200 million (in UAH equivalent) for strengthening healthcare, among others for the following:
|
|
7.15 |
Investment 2. Investments in healthcare |
Investments of at least EUR 400 million in healthcare |
Q4 |
2027 |
Final report of the government (or Treasury report) showing that in the State Budgets for 2024, 2025, 2026, and 2027, the general government budgeted, part of which will be budgeted to the regional level (as part of indicator 9.8), at least EUR 400 million (in UAH equivalent) for strengthening healthcare, among others for the following: - laboratory equipment for micro-biological, chemical, and physical analysis; - shelters and safety measures for healthcare facilities; - hospital equipment for medical analysis, surgery, and patient care; - healthcare infrastructure and facilities; - IT systems, databases, electronic patient records, information, and reference services to improve efficiency and effectiveness of healthcare services. |
|
7.16 |
Investment 3. Investments in social infrastructure |
Investments of at least EUR 350 million in social infrastructure |
Q4 |
2027 |
Final report of the government (or State Treasury report) showing that in the State Budgets for 2026 and 2027 the general government budgeted at least EUR 350 million (in UAH equivalent) for the restoration, construction (new construction, reconstruction, overhaul, restoration) of damaged/destroyed social infrastructure, part of which will be budgeted to the regional level (as a part of indicator 9.8), to eliminate the social, economic and environmental consequences caused by the armed aggression of the Russian Federation against Ukraine, in particular to the regional level. |
|
7.17 |
Investment 4. Investments in compensation for damaged or destroyed housing |
Investments of at least EUR 600 million for financial compensations for damaged housing |
Q4 |
2027 |
Final report of the government (or State Treasury report) showing that in the State Budgets for 2026, and 2027, the general government budgeted at least EUR 600 million (in UAH equivalent) for the compensations paid to persons whose housing was damaged or destroyed as a result of hostilities, terrorist acts, sabotage caused by the military aggression of the Russian Federation based on verified data from the State Register of Damaged and Destroyed Property. |
|
7.18 |
Investment 5. Investments in providing housing for vulnerable groups of population |
Investments of at least EUR 200 million for providing housing to veterans with disabilities of the I-II groups, family members of deceased veterans and internally displaced persons |
Q2 |
2026 |
Interim report of the government (or State Treasury report) showing that in the State Budgets for 2024 and 2025 the general Government budgeted at least EUR 200 million (in UAH equivalent) for providing housing for:
|
|
7.19 |
Investment 5. Investments in providing housing for vulnerable groups of the population |
Investments of at least EUR 450 million for providing housing to veterans with disabilities of the I-II groups, family members of deceased veterans and internally displaced persons |
Q4 |
2027 |
Final report of the government (or State Treasury report) showing that in the State Budgets for 2024, 2025, 2026, and 2027, the general Government budgeted at least EUR 450 million (in UAH equivalent) for providing housing for: - persons with disabilities of I-II groups who defended the independence, sovereignty and territorial integrity of Ukraine; - family members of the deceased defenders; - Internally displaced persons who defended the independence, sovereignty and territorial integrity of Ukraine and their family members. |
C.8. BUSINESS ENVIRONMENT
1. Description of Reforms and Investments
The objective of this chapter is to improve the business environment in Ukraine, recognising the role of the private sector in a sustainable recovery of the country. The reforms within this chapter are targeted towards reducing costs of doing business, inter alia, by cutting red tape, increasing digitalisation, and facilitating access to finance.
Reform 1. Improved Regulatory Environment
The objective of this reform is to improve the regulatory environment by abolishing overlapping regulations, and by simplifying and digitising administrative procedures.
The reform has two steps. First, an Action Plan on the optimisation and digitalisation of regulation of economic activities in various sectors shall be adopted. Second, legislation on deregulation and simplification of business conditions shall enter into force.
The reform is expected to be completed by Q3 2025.
Reform 2. Reform of the Economic Security Bureau
The objective of this reform is to relaunch and reinvigorate the Economic Security Bureau through the provision of a clearer mandate and an open, transparent and competitive process for selection of management and staff.
The reform has one step. It entails entry into force of new legislation to establish an open, transparent and competitive (merit-based) process for selection of management and staff, strengthened requirements for the selection commission, a contract system for employees, a clear scope and mandate definition, and a mechanism of attestation of staff.
The reform is expected to be completed by Q2 2024.
Reform 3. Access to finance and markets
The objective of this reform is to help the private sector via different tools.
The reform has two steps. First, Ukraine shall adopt the Small and Medium Enterprises (SME) Strategy and Action Plan for its implementation to improve access to markets, finance and other resources and access to knowledge for SMEs. Second, legislative amendments on the simplification of access to utility networks shall enter into force.
The reform is expected to be completed by Q1 2026.
Reform 4. Improved public procurement
The objective of this reform is to strengthen Ukraine’s public procurement system via a legislative framework aligned with the EU acquis.
The reform has one step. It entails the alignment of public procurement legislation with the EU acquis, focussing primarily on classic and utilities public procurement directives, on concessions and Public-Private Partnerships, and the enhancement of the e-procurement system.
The reform is expected to be completed by Q3 2027.
Reform 5. Harmonisation of legislation and standards with the EU
The objective of this reform is to resume market surveillance measures and facilitate the adoption of EU norms and standards in Ukraine, particularly in the areas of industrial products.
The reform has two steps. First, legislation on the resumption of market surveillance measures and control for non-food products shall be adopted. Second, harmonised standards for three groups of industrial products (machines, electromagnetic compatibility of equipment, low-voltage electrical equipment) shall be translated into national standards.
The reform is expected to be completed by Q3 2025.
Reform 6. Addressing late payments
The objective of this reform is to ensure that late payments do not impede business activity.
The reform has one step. It entails the alignment of relevant legislation with Directive 2011/7/EU (also known as the EU’s “Late Payment Directive”).
The reform is expected to be completed by Q4 2027.
Investment 1. Investments in financial support for micro-enterprises and SMEs
The objective of this investment is to ensure entrepreneurs have access to finance.
The investment has two steps. First, it entails budgeting of at least EUR 800 million in current prices (in UAH equivalent) for improving access to financial support for microenterprises, SMEs and especially small to medium processing enterprises for the years 2024 and 2025 that can include both corporate lending and grants that will be allocated based on transparent criteria. Second, it entails budgeting of at least EUR 1.750 billion in current prices (in UAH equivalent) for the same purpose for the years 2024, 2025, 2026, and 2027.
The investment is expected to be completed by Q4 2027.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
8.1 |
Reform 1. Improved regulatory environment |
Adoption of the Action Plan on deregulation |
Q3 |
2024 |
Adoption of the Order of the Cabinet of Ministers of Ukraine regarding the approval of the Action Plan on deregulation. The Action Plan focuses on these main areas: - reduction and digitisation of market access regulations; - changing the punitive and repressive model of state supervision (control) to a preventive one (risk-oriented approach); - reducing the number of supervisory and control functions. |
|
8.2 |
Reform 1. Improved regulatory environment |
Entry into force of the legislation in accordance with the Action Plan on deregulation in specific sectors |
Q3 |
2025 |
Entry into force of the legislation on deregulation and simplification of business conditions. The legislation focuses on these main areas: - digitisation of permit and license procedures through the implementation of an experimental project on the introduction of the Unified State Electronic System of Permit Documents; - reduction of business inspections by introducing voluntary insurance and audit; - settlement of the issue of legal succession of permit documents and licenses in case of change in the organisational and legal form of a business entity. |
|
8.3 |
Reform 2. Reform of the Economic Security Bureau of Ukraine |
Entry into force of the law on revising the legal basis of the Economic Security Bureau of Ukraine |
Q2 |
2024 |
Entry into force of the law on revising the legal basis of the activity of the Economic Security Bureau of Ukraine. The new legislation focuses on these main areas: - developing an open, transparent and competitive process for selection of management and staff, selection of the new head on merit-based procedure defined by law - strengthening requirements for the selection commission; - introducing a contract system for employees; - defining a clearer scope and a mandate; - developing a mechanism of attestation of staff. |
|
8.4 |
Reform 3. Access to finance and markets. |
Adoption of the Small and Medium Enterprises (SME) Strategy and Action Plan for its implementation |
Q2 |
2025 |
Adoption of the resolution of the Cabinet of Ministers of Ukraine on approving the SME Strategy and Action Plan for its implementation. The strategy focuses on these main areas: - access to markets; - access to finance and other resources; - access to knowledge. |
|
8.5 |
Reform 3. Access to finance and markets. |
Entry into force of the legislation on the simplification of the accession of immovable property to external engineering networks and improvement of regulation in the field of pipeline transport |
Q1 |
2026 |
Entry into force of the Law on Amendments to Legislative Acts on Simplification of the Accession of Immovable Property to External Engineering Networks and Improvement of Legal Regulation in the Field of Pipeline Transport. The law focuses on these main areas: - open access to information about external engineering networks through public electronic registers, if the security situation allows, which will be determined in the relevant provisions of the amendments to the law, as well as a unified procedure for connecting to external engineering networks; - inclusion of information about external engineering networks in public electronic registers of state ownership, if the security situation allows, which will be determined in the relevant provisions of the amendment to the law; - inclusion of information on protection zones of external engineering networks in public electronic registers of state property. |
|
8.6 |
Reform 4. Improved public procurement |
Entry into force of the legislation on harmonising legislation in the field of public procurement with the EU acquis. |
Q3 |
2027 |
Entry into force of the Laws of Ukraine aligning legislation in the field of public procurement, with the EU acquis. These laws focus on these main areas: - further alignment of national legislation with the classic and utilities public procurement directives, especially with respect to the material scope of the Public Procurement Law and exemptions thereof, delimitation of procurement regulation that is not directly related to military needs carried out by customers in the sphere of security and defence; - further alignment of national legislation on concessions and PPPs with the EU acquis; - enhancement of the e-procurement system, that includes development of e-contracting in the Prozorro system, and operational interoperability with DREAM system and other state IT systems if applicable. |
|
8.7 |
Reform 5. Harmonisation of legislation and standards with the EU |
Adoption of the resolution for the resumption of market surveillance measures and control of non-food products, including product safety inspection |
Q4 |
2024 |
Adoption of the Resolution of the Cabinet of Ministers of Ukraine on Amendments to the Resolution of 13 March 2022 no. 303 "On the Termination of Measures of State Surveillance (Control) and State Market Surveillance under the Conditions of Martial Law" with regard to the exclusion of state market surveillance from its scope and to repeal Resolution of 3 May 2022 no. 550 "On the Termination of the Carrying Out of State Control of Non-Food Products under the Conditions of Martial Law" in order to resume market surveillance measures and control of non-food products, including product safety inspections |
|
8.8 |
Reform 5. Harmonisation of legislation and standards with the EU |
Adoption of harmonised standards for three groups of industrial products |
Q3 |
2025 |
Harmonised standards for 3 groups of industrial products (machinery, electromagnetic compatibility of equipment, low-voltage electrical equipment) are adopted as national ones by translation method |
|
8.9 |
Reform 6. Addressing late payments |
Entry into force of the legislation on combating late payments |
Q4 |
2027 |
Entry into force of the amendments to the legislation aligning with provisions of the Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions (recast) |
|
8.10 |
Investment 1. Investments in financial support for micro-enterprises and SMEs |
Investment of at least EUR 800 million for financial support to micro-enterprises, SMEs and small and medium processing enterprises |
Q2 |
2026 |
Interim report of the government (or State Treasury report) showing that in the State Budgets for 2024 and 2025 the general government budgeted at least EUR 800 million (in UAH equivalent) for financial support for microenterprises, SMEs and especially small and medium processing enterprises, also in line with the new SME Strategy and Action Plan when adopted and where relevant, that can include both corporate lending and grants that will be allocated based on transparent criteria. The corporate lending is channelled through financial intermediaries. The grants are channelled through dedicated entities with appropriate resources and capacity and through financial intermediaries. |
|
8.11 |
Investment 1. Investments in financial support for micro-enterprises and SMEs |
Investment of at least EUR 1.750 billion for financial support to microenterprises, SMEs and small and medium processing enterprises |
Q4 |
2027 |
Report of the government (or State Treasury report) showing that in the State Budgets for 2024, 2025, 2026, 2027 the general government budgeted at least EUR 1.750 billion (in UAH equivalent) for financial support for microenterprises, SMEs and especially small and medium processing enterprises, also in line with the new SME Strategy and Action Plan when adopted and where relevant, that can include both corporate lending and grants that will be allocated based on transparent criteria. The corporate lending is channelled through financial intermediaries. The grants are channelled through dedicated entities with appropriate resources and capacity and through financial intermediaries. |
C.9. DECENTRALISATION AND REGIONAL POLICY
1. Description of Reforms and Investments
The objective of this chapter is to advance the process of decentralisation on institutional and legislative level and to strengthen the development of regional policy. This contributes to a higher level of participation in the decision-making process at the local level and empowers regional and local government entities to participate in the recovery and reconstruction process. The reform also strengthens the capacity of entities, structures and systems that will be used for identification, implementation and evaluation of recovery and reconstruction projects.
Reform 1. Advancing decentralisation
The objective of this reform is to put into place a framework for transforming local state administration into prefecture-type authorities and to ensure a better distribution of powers between local governments and executive authorities.
The reform has three steps. First, the legislation on transforming local state administration into prefecture-type authorities enters into force and is applied within 12 months from the date of termination or abolition of martial law in Ukraine. Second, a study on the necessary measures to grant legal personality to municipalities is endorsed and published. Third, the legislation to ensure a better distribution of powers between local governments and executive authorities enters into force.
The reform is expected to be completed by Q1 2026.
Reform 2. Increased involvement of citizens to decision making process at the local level
The objective of this reform is to increase citizen involvement and active participation into local decision-making processes.
The reform has one step. The law for public consultations on public policy enters into force and is applied within 12 months from the date of termination or abolition of martial law in Ukraine. The legislation launches a legal mechanism for public consultations during the formation and implementation of public policy, addressing issues of local importance.
The reform is expected to be completed by Q1 2025.
Reform 3. Development and implementation of regional policy
The objective of this reform is to align regional policy with recovery and reconstruction efforts, by amending the strategy for regional development and development of urban planning at the local level.
The reform has two steps. First, adoption of resolutions to amend the State Strategy for Regional Development for 2021-2027. Second, the resolution for development of urban planning at the local level to foster the digitalisation of urban planning documentation is adopted.
The reform is expected to be completed by Q4 2024.
Investment 1. Investments for the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities
The objective of the investment is to support the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities, in particular local self-government.
The investment has two steps. First, it entails providing an interim report showing that at least 5% of the non-repayable financing support under Pillar I of the Ukraine Facility have been allocated to the recovery, reconstruction, and modernisation needs of Ukraine’s sub-national authorities, in particular local self-government for the years 2024 and 2025. Second, it entails providing a report showing that at least 20% of the non-repayable financing support under Pillar I of the Ukraine Facility have been allocated to the recovery, reconstruction, and modernisation needs of Ukraine’s sub-national authorities, in particular local self-government for the years 2024, 2025, 2026, and 2027.
This investment is expected to be completed by Q4 2027
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
9.1 |
Reform 1. Advancing decentralisation |
Entry into force of the legislation on reforming of territorial organisation of the executive authorities in Ukraine with delayed application |
Q1 |
2025 |
Entry into force of the Law of Ukraine “On Amendments to the Law of Ukraine ‘On Local State Administrations’ and Some Other Legislative Acts of Ukraine as Regards the Reforming of Territorial Organisation of the Executive Authorities in Ukraine” with its application within 12 months from the date of termination or abolition of martial law in Ukraine. Subordinate legal acts for the implementation of the law shall be adopted after it enters into force. The law focuses on these main areas: - transforming local state administrations into prefecture-type authorities in order to create a balanced system of ensuring a legal nature of activities undertaken by local self-government bodies; - ensuring coordination of the territorial bodies of the central executive authorities when implementing the state policy at the regional and local levels. |
|
9.2 |
Reform 1. Advancing decentralisation |
Endorsement and publication on the website of the Ministry of Communities, Territories and Infrastructure Development of Ukraine of a study on the necessary measures to grant legal personality to municipalities |
Q2 |
2025 |
Publication of the results of the study on the possibility of granting territorial communities the status of a legal entity on the official web portal of the Ministry of Communities, Territories and Infrastructure Development of Ukraine |
|
9.3 |
Reform 1. Advancing decentralisation |
Entry into force of the legislation to ensure a better distribution of powers between local governments and executive authorities |
Q1 |
2026 |
Entry into force of the amendments to the Law of Ukraine “On Local Self-Government in Ukraine” and sector-specific laws. These legislative amendments are expected to (i) lead to an improved distribution of powers between local governments and executive authorities based on the principles of subsidiarity and decentralisation; (ii) help to eliminate conflicts of competence between different tiers of central, regional, district and local authorities, as well as within bodies of local self-government; and (iii) encourage a proper quality of public services at the local level and an efficient use of budget funds. |
|
9.4. |
Reform 2. Increased involvement of citizens to decision making process at the local level |
Entry into force of the legislation for public consultations on public policy with delayed application |
Q1 |
2025 |
Entry into force of the Law of Ukraine “On Public Consultations” with its application within 12 months from the date of termination or abolition of martial law in Ukraine. The Law will launch legal mechanism for public consultations during the formation and implementation of public policy, addressing issues of local importance, which will establish preconditions for coherent, effective and efficient policy- and decision-making. |
|
9.5 |
Reform 3. Development and implementation of regional policy |
Adoption of resolutions to amend the State Strategy for Regional Development for 2021-2027 |
Q3 |
2024 |
Adoption of the Resolution of the Cabinet of Ministers of Ukraine "On Amendments to the State Strategy for Regional Development for 2021-2027, approved by the Resolution of the Cabinet of Ministers of Ukraine No. 695 dated 5 August 2020". The resolution focuses on these main areas: - development of multi-level governance, approximation of the regional development management system to EU procedures and best practices; - promoting partnerships, inter-municipal, interregional and cross-border cooperation; - developing the institutional capacity of territorial communities and regions in terms of project management, digitalisation, anti-corruption and strategic planning. |
|
9.6 |
Reform 3. Development and implementation of regional policy |
Adoption of resolutions for development of urban planning at the local level |
Q4 |
2024 |
Adoption of the Resolutions by the Cabinet of Ministers of Ukraine approving the Procedure for maintaining the state-level urban planning cadastre, the Unified State Address Register, the Unified State Register of Buildings and Structures, the Unified State Register of Administrative Units, amending resolutions of the Cabinet of Ministers of Ukraine regulating the development of urban planning documentation in the form of electronic documents, maintaining the Unified State Electronic System in the field of construction, integration and information interaction of registers and cadastres of the state. |
|
9.7 |
Investment 1. Investments for the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities |
Allocation of at least 5% of the overall non-repayable financial support for meeting recovery, reconstruction, and modernisation needs of sub-national authorities |
Q2 |
2026 |
Interim report showing that at least 5% of the non-repayable financial support has been allocated to the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities, in particular local self-government. |
|
9.8 |
Investment 1. Investments for the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities |
Allocation of at least 20% of the overall non-repayable financial support for meeting recovery, reconstruction, and modernisation needs of sub-national authorities |
Q4 |
2027 |
Final report proving that at least 20% of the non-repayable financing support has been allocated to the recovery, reconstruction and modernisation needs of Ukraine’s sub-national authorities, in particular local self-government. |
C.10. ENERGY SECTOR
1. Description of Reforms and Investments
The objective of this chapter is to strengthen the resilience and security of the energy sector in Ukraine, with a particular view to facilitate a clean energy transition, including via focusing on the energy efficiency measures, supporting private sector investments in renewable energy, advancing structural reforms, and easing integration of the energy system of Ukraine with that of the EU.
Reform 1. Integrated National Energy and Climate Plan
The objective of this reform is to approve the Integrated National Energy and Climate Plan (INECP) which will set out national climate neutrality objectives, with an overarching goal to reduce greenhouse gas emissions.
The reform has one step. It entails the adoption of the Integrated National Energy and Climate Plan.
The reform is expected to be completed by Q2 2024.
Reform 2. Improved regulatory framework for increasing renewable energy and ensuring stable operation of the energy system.
The objective of this reform is to increase the share of renewable energy in the energy mix of Ukraine. This will be done via improving the conditions for the development of renewable energy on a market basis.
The reform has three steps. First, it entails the introduction of a market-based renewable energy framework in line with EU rules, defining necessary procedures and documents for competitive auctions. Second, legislation on streamlining and shortening the permitting procedures for renewable energy investments in line with EU rules enters into force. Third, it entails the development and approval of a Roadmap for the separation of the Renewable Energy Surcharge from the Transmission Tariff.
The reform is expected to be completed by Q3 2026.
Reform 3. Electricity market reform
The objective of this reform is to improve the regulatory framework for the energy sector in Ukraine, including to support integration of the Ukrainian and European markets.
The reform has four steps. First, legislation enters into force that transposes electricity integration package. Second, legislation changing the regime of indirect taxation of participants in the electricity market enters into force facilitating the market coupling of day-ahead and intraday markets of neighbouring states and export and import of electric energy. Third, a new electricity market operator designated by the regulator is appointed. Fourth, the secondary legislation on the wholesale energy market integrity and transparency (REMIT) law enters into force.
The reform is expected to be completed by Q2 2026.
Reform 4. Liberalisation of electricity and natural gas prices
The objective of this reform is to set the grounds for a gradual liberalisation of prices once conditions allow, ensuring sufficient measures to protect vulnerable households.
The reform has one step. It entails the adoption of a Roadmap for gradual liberalisation of gas and electricity markets, which shall include a set of specific steps to take and the timeline to be implemented after the martial law is lifted.
The reform is expected to be completed by Q2 2026.
Reform 5. Ensuring independence of National Energy and Utilities Regulatory Commission
The objective of this reform is to strengthen the independence of the energy regulator and ensure the effective functioning and development of markets in the energy and utilities sectors.
The reform has two steps. First, the legislative amendments exempting the decisions of the energy regulator from the state registration procedure, according to the requirements of the relevant EU directives, will enter into force. Second, legislative amendments to provide for the specification of special status of the regulator, as per the relevant EU directives, enter into force.
The reform is expected to be completed by Q4 2025.
Reform 6. Improved efficiency in the district heating
The objective of this reform is to improve the district heating sector and aim to strengthen the resilience of the integrated energy system, including by improving the regulatory framework, and supporting modernisation of the heating companies.
The reform has three steps. First, Ukraine will cancel the moratorium on rising heat and hot water tariffs. Second, the State targeted economic programme for the modernisation of heat generating enterprises for the period up to 2030 will be adopted to improve heat supply services, support the green transition of the energy sector, and strengthen governance. Third, entry into force of legislation to support the development of efficient and sustainable district heating via clear rules for network connection and disconnection, and on improving procedures for individual heat substations installation in multi-apartment buildings.
The reform is expected to be completed by Q4 2025.
Reform 7. Improved energy efficiency in public buildings and improvement of public procurement procedures
The objective of this reform is to improve energy sustainability and support the reduction of energy consumption by rolling out energy efficiency measures in the public sector, with the focus on the public buildings and public procurement of buildings and products.
The reform has three steps. First, Ukraine shall adopt a Strategy for Thermal Modernisation of Buildings until 2050 and an accompanying Action plan aimed at improved the energy efficiency of the buildings. Second, Ukraine shall adopt legal acts on setting minimum energy efficiency performance levels for buildings and also for products covered by the EU energy labelling legislation, and on setting classes of energy efficiency performance levels for products covered by the EU energy labelling legislation. Third, Ukraine shall establish minimum energy efficiency performance levels for buildings and products covered by EU energy labelling and ecodesign as mandatory criteria in public procurement.
The reform is expected to be completed by Q1 2027.
Investment 1. Investments in energy infrastructure
The objective of this investment is to finance critical energy infrastructure to ensure energy security, with a strong focus on energy efficiency and development of renewable sources.
The investment has one step. It entails budgeting of at least EUR 550 million in current prices (in UAH equivalent) for energy investments in 2026 and 2027, for strengthening the energy infrastructure of Ukraine, including at the regional level, with a focus on improving energy efficiency in district heating, public buildings, and the residential sector, physical protection of Ukraine’s infrastructure, and development of renewable energy sources.
The investment is expected to be completed by Q4 2027.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
10.1 |
Reform 1. Integrated National Energy and Climate Plan |
Adoption of the Integrated National Energy and Climate Plan |
Q2 |
2024 |
Adoption of the Ordinance of the Cabinet of Ministers of Ukraine on approving the Integrated National Energy and Climate Plan to establish national climate neutrality objectives and ensure appropriate planning after duly taking into account the recommendations from the Energy Community. The plan defines targets to be achieved by 2030 on: - GHG reductions, including through market-based carbon pricing mechanisms; - the share of renewable sources in gross final consumption of energy; - the energy saving in final energy consumption. |
|
10.2 |
Reform 2. Improved regulatory framework for increasing renewable energy and ensuring stable operation of the energy system |
Introduction of a market-based framework for renewable energy |
Q4 |
2024 |
Entry into force of market-based legislative and regulatory framework for investments in renewable energy sources in line with EU rules, namely necessary procedures and documents for competitive auctions. The following legislative act is introduced/amended: The Resolution of the Cabinet of Ministers ‘On Amendments to the Resolution of the Cabinet of Ministers dated 29 December 2019 № 1175 on Improving the Procedure for Holding Auctions for the Distribution of Support Quotas’ |
|
10.3 |
Reform 2. Improved regulatory framework for increasing renewable energy and ensuring stable operation of the energy system |
Entry into force of the legislation to improve permitting procedures for renewable energy investments |
Q3 |
2026 |
Entry into force of the legislation on shortening the permitting procedures for renewable investments in line with EU rules. |
|
10.4 |
Reform 2. Improved regulatory framework for increasing renewable energy and ensuring stable operation of the energy system |
Adoption of the Roadmap of the process of separation of the Renewable Energy Surcharge from the Transmission Tariff |
Q2 |
2025 |
Adoption of the Roadmap of the process of separation of the Renewable Energy Surcharge from the Transmission Tariff with identifying legislative needed acts and terms of implementation. |
|
10.5 |
Reform 3. Electricity market reform |
Entry into force of the Law on the transposition of the electricity integration package |
Q4 |
2025 |
Entry into force of the Law on the transposition of the electricity integration package, aligning Ukrainian national legislation with the electricity integration package, as incorporated in the Energy Community acquis in December 2022. The electricity integration package approximates legislation in line with the following acts and network codes and guidelines: - Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast) - Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast); - Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019 on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC; - Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (recast). - the five Network Codes and Guidelines establish detailed rules related to different market segments and system operation: - Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation; - Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management; - Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing; - Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation; - Commission Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration. |
|
10.6 |
Reform 3. Electricity market reform |
Entry into force of the legislation on changing the conditions of taxation of participants in the electricity market |
Q2 |
2026 |
Entry into force of the legislation changing the regime of indirect taxation of participants in the electricity market, in order to facilitate the market coupling of day-ahead and intraday markets with day-ahead markets and intraday markets of neighbouring states and operations related to exports and import of electric energy within the framework of the implementation of the legislation of the Energy Community introduced by the decision of the Council of Ministers of the EU dated 15.12.2022 № D/2022/03/MC–EnС, namely to amend the Tax Code of Ukraine and to amend the Customs Code of Ukraine to enable market integration and market coupling. The list of specific laws will be finalised after the adoption of the basic law on the transposition of the Electricity Integration Package. |
|
10.7 |
Reform 3. Electricity market reform |
Appointment of a new electricity market operator |
Q4 |
2025 |
Appointment of a nominated electricity market operator designated by National Energy and Utilities Regulatory Commission (NEURC). |
|
10.8 |
Reform 3. Electricity market reform |
Entry into force of the secondary legislation on the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) law |
Q3 |
2024 |
Entry into force of the secondary legislation on REMIT law. The NEURC approves these procedures and requirements: - the procedure for acquiring, suspending and terminating the status of a data transfer administrator; - the procedure for the functioning of insider information platforms; - requirements for ensuring integrity and transparency in the wholesale energy market; - procedure for Submission of Information on Economic and Trade Transactions with Wholesale Energy Products Preparation of the Terms of Reference for the development of an information system defining the following functions of the NEURC: - the system will be integrated with the systems of market operators, insider information platforms, data transfer administrators and will detect information indicating the presence of abuse. |
|
10.9 |
Reform 4. Liberalisation of electricity and natural gas prices |
Adoption of a Roadmap for gradual liberalisation of gas and electricity market, to be implemented after the expiration of the martial law |
Q2 |
2026 |
Adoption of a Roadmap for gradual liberalisation of gas and electricity market by the Cabinet of Ministers of Ukraine with steps to take and the associated timeline, to be implemented after the expiration of the martial law. The Roadmap is based on the technical analysis to understand the financial condition of the sector. The Roadmap focuses on these main areas: - steps needed to reform the PSOs in order to gradually liberalise the market prices, once the martial law is lifted; - steps to take to ensure vulnerable consumers are adequately protected once the prices for households are liberalised, including the new design of the subsidy system for vulnerable consumers which improve the targeting and ensures adequate levels of protection, as well as preparatory steps to be implemented before the end of the martial law, such as identification of vulnerable population and the associated digital solution. |
|
10.10 |
Reform 5. Ensuring independence of National Energy and Utilities Regulatory Commission |
Entry into force of the legislation to ensure the independence of the National Energy Utilities Regulatory Commission |
Q4 |
2024 |
Entry into force of the amendments Law dated 24 August 2023 № 3354–IX ‘On law-making activity’, which exempt the decisions of the National Energy and Utilities Regulatory Commission, which are regulatory legal acts, from the state registration procedure provided for by law. These amendments focus on these main areas: - ensuring the independence of the Regulator as provided for by Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast)and Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC; - implementation of Article 5 of the Law of Ukraine ‘On the National Energy and Utilities Regulatory Commission’ on the prohibition of state bodies to interfere in the activities of the Regulator. |
|
10.11 |
Reform 5. Ensuring independence of National Energy and Utilities Regulatory Commission |
Entry into force of the amendments to the Law of Ukraine "On the National Energy and Utilities Regulatory Commission" |
Q4 |
2025 |
Entry into force of the amendments to the Law of Ukraine "On the National Energy and Utilities Regulatory Commission" and other acts, which provide for the specification of the special status for ensuring the independence of the Regulator as provided for by Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast)and Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC. |
|
10.12 |
Reform 6. Improved efficiency in the district heating |
Cancelation of the moratorium on rising heat and hot water tariffs |
Q4 |
2025 |
Cancelation of the moratorium introduced by Law No. 2479-IX "On the peculiarities of regulating relations in the natural gas market and in the field of heat supply during martial law and the subsequent restoration of their functioning" in order to reach cost-reflectiveness of heat and hot water tariffs. |
|
10.13 |
Reform 6. Improved efficiency in the district heating |
Adoption of the State targeted economic programme for the energy modernisation of heat generating enterprises for the period up to 2030 |
Q4 |
2025 |
Adoption of the State targeted economic program for the energy modernisation of heat generating enterprises for the period up to 2030 by the Cabinet of Ministers. The Strategy focuses on these main areas: - identifying measures to improve resilience, quality and availability of heat supply services; - identifying measures to support decarbonisation, reduction of greenhouse gas emissions and expansion of renewable energy sources; - providing measures to strengthen governance and management skills for local authorities in district heating sector. |
|
10.14 |
Reform 6. Improved efficiency in the district heating |
Entry into force of the legislation to support development of the efficient and more sustainable district heating’ |
Q3 |
2025 |
Entry into force of the Law of Ukraine ‘On amendments to some Laws of Ukraine to support development of the efficient and more sustainable district heating’. The law focuses on these main areas: - setting clear rules for network connection/ disconnection, zones of priority development of district heating systems; - improvement of procedures for individual heat substations (IHS) installation in multi-apartment buildings to ensure proper remote control and demand management. |
|
10.15 |
Reform 7. Improved energy efficiency in public buildings and improvement of public procurement procedures |
Adoption of the Strategy for thermal modernisation of buildings until 2050 and the Action Plan |
Q2 |
2024 |
Adoption of the act "On Approval of the Strategy for Thermal Modernisation of Buildings until 2050” and Action plan for the Strategy by the Cabinet of Ministers of Ukraine, aimed at introducing market-based financial instruments and incentives, containing a roadmap with policy measures, including those aimed to support the introduction of nearly-zero energy building. |
|
10.16 |
Reform 7. Improved energy efficiency in public buildings and improvement of public procurement procedures |
Adoption of legal acts on setting minimum energy efficiency performance levels for buildings |
Q3 |
2026 |
Adoption by the Cabinet of Ministers of Ukraine of legal acts on setting minimum energy efficiency performance levels for buildings and also for products covered by the EU ecodesign legislation and the Ministry for Communities, Territories and Infrastructure Development adopted acts on setting classes of energy efficiency performance levels for products covered by the EU energy labelling legislation. |
|
10.17 |
Reform 7. Improved energy efficiency in public buildings and improvement of public procurement procedures |
Adoption of the legal acts on the requirements for energy labelling and eco-design as mandatory minimum criteria during public procurement |
Q1 |
2027 |
Adoption of the legal acts of the Ministry of Economy regarding the application of established acts by the Cabinet of Ministers and the Ministry for Communities, Territories and Infrastructure Development on the requirements for energy labelling and eco-design as mandatory minimum criteria during public procurement. These requirements make minimum energy efficiency performance levels for buildings and products covered by national standards, which are aligned with EU energy labelling and ecodesign legislation. The content of the order was communicated to the contracting authorities in the field of public procurement. |
|
10.18 |
Investment 1. Investments in energy infrastructure |
Investments of at least EUR 550 million in energy infrastructure |
Q4 |
2027 |
Report of the Government (or State Treasury report) showing that in the State Budgets for 2026 and 2027 the general Government budgeted at least EUR 550 million (in UAH equivalent) for strengthening the energy infrastructure of Ukraine, including at the regional level (as part of indicator 9.8), among others for the following: - improving energy efficiency in district heating, in line with the State targeted economic program for the energy modernisation of heat generating enterprises for the period up to 2030; - financial contribution to the Energy Efficiency Fund to support improved energy efficiency in the residential sector; - improving energy efficiency in public buildings, in line with the Strategy for Thermal Modernisation of Buildings until 2050; - physical protection of Ukraine’s energy infrastructure; - supporting the development of renewable energy sources, in line with the new market-based framework for renewable energy, and for the construction of highly flexible capacities. |
C.11. TRANSPORT
1. Description of Reforms and Investments
The objective of this chapter is to modernise and reform Ukraine’s transport sector. It aims to enhance connectivity with the EU and the Republic of Moldova and support development of a competitive and efficient transport system in line with EU policies and standards.
Reform 1. Comprehensive planning of transport sector
The objective of this reform is to revise the key strategic document for the transport sector.
The reform has one step. It entails the adoption of the revised National Transport Strategy of Ukraine until 2030.
The reform is expected to be completed by Q4 2024.
Reform 2. Development of Ukraine’s export logistics potential
The objective of this reform is to support modernisation and increase capacity of the existing network of Border Crossing Points to facilitate the needs for transportation across the border of Ukraine with the EU and the Republic of Moldova.
The reform has one step. It entails the adoption of the Strategy for developing and expanding the border infrastructure with EU Member States and the Republic of Moldova until 2030.
The reform is expected to be completed by Q4 2024.
Reform 3. Liberalisation in the railways transport sector
The objective of this reform is the creation of a competitive rail market in line with EU standards based.
The reform has two steps. First, the railways law which aligns with the EU rail acquis enters into force, with partial application of the provisions. Second, the main by-laws for the implementation of the law shall be adopted.
The reform is expected to be completed by Q4 2027.
Reform 4. Improved shipping and port services
The objective of this reform is to ensure improvements in Ukraine's performance of its obligations under international treaties in the field of merchant shipping as well as enhance competition in port services.
The reform has two steps. First, legislation on merchant shipping and shipping on inland waterways shall enter into force. Second, the existing national legislation to ensure full compliance with the provisions of EU Regulation 2017/352 on Port Service Regulation shall be amended.
The reform is expected to be completed by Q1 2027.
Investment 1. Investments in transport infrastructure
The objective of this investment is to restore the damaged and destroyed transport infrastructure.
The investment has one step. It entails budgeting of at least EUR 350 million in current prices (in UAH equivalent) in 2026-2027 for the building, reconstruction, restoration, modernisation and upgrade of damaged and destroyed transport infrastructure facilities amongst others in the following sectors, railways, maritime and inland shipping, roads, aviation and border crossing points.
The investment is expected to be completed by Q4 2027.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
11.1 |
Reform 1. Comprehensive planning of transport sector |
Adoption of the revised National Transport Strategy of Ukraine until 2030 |
Q4 |
2024 |
Adoption of an Order of the Cabinet of Ministers on updating the National Transport Strategy of Ukraine for the period up to 2030. The Strategy focuses on these main areas: - reconstruction and development of a competitive and efficient transport system in line with EU policies and standards in particular relating to trans-European transport networks and the decarbonisation targets of the transport sector set out at international and European level (including through the development of railway, road and inland waterway routes, included in indicative maps of the TEN-T network, digitisation of transport system management, etc.); - high-quality passenger transportation and unimpeded mobility; - safe for people and the environment, sustainable, energy-efficient transport. |
|
11.2 |
Reform 2. Development of Ukraine’s export logistics potential |
Adoption of the Strategy for developing and expanding the border infrastructure with EU Member States and the Republic of Moldova until 2030 |
Q4 |
2024 |
Adoption of the Strategy for Developing and Expanding the Border Infrastructure with EU Member States and the Republic of Moldova until 2030. The Strategy focuses on these main areas: - reconstruction of border crossing points on the border with Poland, Slovakia, Hungary, and Romania; - creation of a network of service areas; - simplification of border crossing procedures (digitalisation and introduction of joint control) in line with EU standards. |
|
11.3 |
Reform 3. Liberalisation in the railways transport sector |
Entry into force of the law on railway transport with partial application of the provisions |
Q4 |
2025 |
Entry into force of the Law of Ukraine "On Railway Transport of Ukraine", which aligns with the EU rail acquis, with partial application of the provisions. The law focuses on these main areas: - create legislative conditions for the functioning of the competitive market for passenger and freight transportation, in particular, ensuring equal access of railway operators to the railway infrastructure; - creation of new state bodies in accordance with EU legislation, that will carry out public administration in the competitive transport market (regulator and safety authority); - functional separation of the infrastructure operator and railway operators; - introduction of safety management system; - introduction of technical investigation of railway accidents; - establishing the legal basis for technical regulation to ensure interoperability (the ability of railway transport to maintain safe transportation); - a new approach to ensuring socially important transport (PSO). |
|
11.4 |
Reform 3. Liberalisation in the railways transport sector |
Adoption of the by-laws for the implementation of the legislation on railway transport |
Q4 |
2027 |
Adoption of the main legislative acts (by-laws) for the implementation of the Law of Ukraine ‘On Railway Transport of Ukraine’. The by-laws introduce mechanisms for the functioning of the rail transportation market and, in particular, focus on: equal access to the rail infrastructure, licensing of railway operators, safety management systems, the procedure for the organisation of socially important passenger transportation (PSO). |
|
11.5 |
Reform 4. Improved shipping and ports services |
Entry into force of the legislation on merchant shipping and shipping on inland waterways |
Q2 |
2026 |
Entry into force of the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine Concerning Merchant Shipping and Shipping on Inland Waterways". The Law focuses on these main areas: - defining and regulating the principles of ensuring the safety of navigation in the territorial sea, inland sea waters, seaports, and inland waterways; - improvement of the mechanism for implementing the international regime for the protection of ships and seaports; - defining a detailed mechanism for controlling ships in a seaport; - review of the functions of the central executive body implementing state policy in the areas of maritime and inland waterway transport and shipping in the Merchant Shipping Code, the Laws of Ukraine "On Transport", "On Inland Waterway Transport" and "On Seaports of Ukraine" in order to eliminate duplication of legislative norms and clarify the division of competence, in particular with the central executive body that ensures the formation and implementation of state policy in the areas of maritime and inland waterway transport; - simplification of administrative procedures, a clearer list of powers of state bodies, elimination of unnecessary administrative barriers, documents, etc. |
|
11.6 |
Reform 4. Improved shipping and ports services |
Ensuring full compliance with the provisions of Regulation (EU) 2017/352 of the European Parliament and of the Council of 15 February 2017 establishing a framework for the provision of port services and common rules on the financial transparency of ports |
Q1 |
2027 |
Review and amend the existing national legislation (subordinate legal acts) to ensure full alignment with the provisions of Regulation (EU) 2017/352 of the European Parliament and of the Council of 15 February 2017 establishing a framework for the provision of port services and common rules on the financial transparency of ports |
|
11.7 |
Investment 1. Investments in transport infrastructure |
Investments of at least EUR 350 million in transport infrastructure |
Q4 |
2027 |
Report of the government (or State Treasury report) showing that in the State Budgets for 2026 and 2027 the general government budgeted at least EUR 350 million (in UAH equivalent) for the reconstruction, restoration, modernisation and upgrade of damaged and destroyed transport infrastructure facilities, in line with the National Transport Strategy of Ukraine until 2030, including some of the funds to be directed to the regional level (as part of indicator 9.8), among others in the following sectors: - railways (in line with the new legislation on railway transport of Ukraine); - maritime and inland shipping (in line with the new legislation on merchant shipping and shipping on inland waterways); - roads; - aviation; - and border crossing points (in line with the Strategy for developing and expanding the border infrastructure with EU Member States and the Republic of Moldova until 2030). |
C.12 AGRI-FOOD SECTOR
1. Description of Reforms and Investments
The objective of this chapter is to support strengthening of the Ukraine’s agri-food sector in parallel with further aligning its regulatory framework with the EU acquis.
Reform 1. Aligning the institutional framework on agriculture and rural development with the EU
The objective of this reform is to develop strategic national priorities including to further alignment with EU practices, norms and rules.
The reform has two steps. First, Ukraine shall adopt the Strategy for Agriculture and Rural Development until 2030. Second, a Farm Accountancy Data Network System shall be put in place to allow tracking the situation in the agricultural sector.
The reform is expected to be completed by Q1 2027.
Reform 2. Ensuring a functional land market
The objective of this reform is to improve the functional land market.
The reform has one steps. An automated system for public monitoring of land relations and a geoinformation system for mass land assessment shall be put in place.
The reform is expected to be completed by Q1 2025.
Reform 3. Improving the institutional and administrative set up for managing investment programmes
The objective of this reform is to improve the set up for managing public financial support schemes to the agri-food sector.
The reform has one step. It entails the entry into force of legislation that focuses on the design of public support measures, including for small scale farms, future financial instruments, as well as digitalisation of the system via electronic document management systems, and ensures that state support can only be channelled to beneficiaries registered in the State Agrarian Register (SAR).
The reform is expected to be completed by Q3 2025.
Reform 4. Improvement of the official public electronic farm register
The objective of this reform is to formalise and improve the official public electronic farm register (i.e. State Agrarian Register).
The reform has two steps. First, a law that recognises the State Agrarian Register (SAR) as an official public electronic register in the field of agrarian policy and food security enters into force. Second, a report is published detailing the implementation of state support through the SAR.
The reform is expected to be completed by Q1 2026.
Reform 5. Long-term development of the irrigation system to increase climate resilience of the sector
The objective of this reform is to ensure long-term planning of irrigation infrastructure in a sustainable way, in order to foster resilience of the agri-food sector in the context of climate change.
The reform has one step. It entails the adoption of a long-term plan setting out the key areas and principles for developing Ukraine’s water irrigation systems.
The reform is expected to be completed by Q1 2025.
Reform 6. Demining of land and water areas
The objective of this reform is to develop a national strategy to outlining key components of Ukraine’s de-mining efforts.
The reform has one step. It entails the adoption of the Strategy on Mine Action.
The reform is expected to be completed by Q2 2024.
Investment 1. Investments in demining
The objective of this investment is to support agri-food producers undertaking de-mining efforts.
The investment has two steps. First, it entails budgeting of at least EUR 75 million in current prices (in UAH equivalent) for the funds paid to the agri-food producers for costs of demining in 2024-2025. Second, it entails budgeting of at least EUR 150 million in current prices (in UAH equivalent) for the funds paid to agri-food producers for costs of demining in 2024-2027.
The investment is expected to be completed by Q4 2027.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
12.1 |
Reform 1. Aligning the institutional framework on agriculture and rural development to the EU policy |
Adoption of the Strategy for Agriculture and Rural Development until 2030 |
Q4 |
2024 |
Adoption of the Strategy for Agriculture and Rural Development until 2030. The strategy focuses on these main areas: - adapting Ukrainian Agriculture and Rural Development policies to the EU pre-accession context and areas of special Ukrainian concern, such as land reform, irrigation, war recovery and development support; - institutional strengthening and capacity building to develop necessary systems; - acceleration of the process to approximate legal acts and capacities for agri-food agriculture and sanitary and phytosanitary measures (SPS) to EU standards; - promoting the development to small producers and rural communities; - defining of environmental and climate action baselines and targets, building up evidence-based programming and sound financial management and control capacities. |
|
12.2 |
Reform 1. Aligning the institutional framework on agriculture and rural development to the EU policy |
Establishment of the Farm Sustainability Data Network (FSDN) system |
Q1 |
2027 |
The EU-aligned Farm Sustainability Data Network (FSDN) system, to be created under the Ministry of Agrarian Policy, is established and is operational. The system allows tracking the situation in the agricultural sector and making informed decisions regarding the allocation of state support to agricultural producers |
|
12.3 |
Reform 2. Ensuring a functional land market |
Set up of an automated system for public monitoring of land relations |
Q1 |
2025 |
An automated system for public monitoring of land relations has been put into operation, functioning within the framework of maintaining the State Land Cadastre. A geoinformation system for mass land assessment has been put into operation as part of the software of the State Land Cadastre. |
|
12.4 |
Reform 3. Improving the institutional and administrative set up for managing investment programmes |
Entry into force of the legislation on the public support of agriculture of Ukraine |
Q3 |
2025 |
Entry into force of the Law on Amendments to the Law of Ukraine “On State Support of Agriculture of Ukraine”. The Law focuses on these main areas: - design future public support measures, including in selected sectors based on sector and Strengths, Weaknesses, Opportunities, and Threats (SWOT) analyses, that comply with the EU standards and the EU acquis; - design measures to support agricultural production for small scale farms to undertake private investments (physical assets of agricultural holdings producers, for processing and marketing); - design of future financial instruments (including credit guarantee facilities) for all farm categories in collaboration with International Financial Institutions; - digitalisation through electronic document management systems; - state support exclusively channelled to beneficiaries enlisted in the State Agrarian Register, which has access to electronic registers (incl. land cadastre, property register, animal register). |
|
12.5 |
Reform 4. Improvement of the official public electronic farm register |
Entry into force of the legislation on the State Agrarian Register (SAR) |
Q4 |
2024 |
Entry into force of the Law of Ukraine “On the State Agrarian Register”. The law focuses on these main areas: - the State Agrarian Register (SAR) is recognised as an official public electronic register in the field of agrarian policy and food security with the regulation of its mandatory elements, such as the procedure for its administration, the definition of its data, access by the third parties; - SAR coverage is expanded to register and include information on stakeholders throughout the entire agricultural value chains such as agricultural producers, food processors, water users; - SAR functionality is expanded, serving as a pre-condition for financial assistance and enabling targeted channelling of technical assistance, other administrative services, the introduction of analytical information; - registration in SAR is a precondition for receiving any type of public support in agri-food sector; - mandatory publication of the register of beneficiaries of any state support programmes in the sector implemented through SAR. |
|
12.6 |
Reform 4. Improvement of the official public electronic farm register |
Publication of report on the implementation of the state support through the public Agricultural Register |
Q1 |
2026 |
Submission of the report on the implementation of state support through SAR showing that minimum 80 percent of public support to agricultural producers provided in 2025 was provided through the State Agricultural Register (SAR). |
|
12.7 |
Reform 5. Long-term development of the irrigation system to increase climate resilience of the sector |
Adoption of the long-term plan on the irrigation system |
Q1 |
2025 |
Adoption of the “Long-term plan for the development of the irrigation system”. The plan focuses on these main areas: - priorities in the irrigation sector based on an analysis of full economic benefits; - alignment with the water sector strategy and the water basin-based water management principles; - indication of needed public and other investments and the need for further privatisation; - governance/management dimension of the sector; - environmental assessment to be carried out for any rehabilitation or construction project in line with EU recommendation on environmental impact assessment, environmental strategic assessment and Ukraine legislation in this area. |
|
12.8 |
Reform 6. Demining of land and water areas |
Adoption of the strategic document on Mine Action for the period up to 2033 |
Q2 |
2024 |
Adoption of the legislative act on the approval of the strategic document on Mine Action for the period up to 2033 (the Act of the Cabinet of Ministers of Ukraine or the President of Ukraine). The legislative act focuses on these main areas: - management in the field of Mine Action; - support of the efficiency of Mine Action operators; - prevention of accidents; - comprehensive assistance to victims; - innovations; - gender balance and representation; - development of the private market; - effective and transparent coordination with donors; - forming the system of prioritisation of tasks in mine action. |
|
12.9 |
Investment 1. Investments in demining |
Investments of at least EUR 75 million in demining of agriculture land |
Q2 |
2026 |
Interim report of the Government (or State Treasury report) showing that in the State Budgets for 2024 and 2025 the general Government budgeted at least EUR 75 million (in UAH equivalent) for the funds paid to agri-food producers for the costs of demining. |
|
12.10 |
Investment 1. Investments in demining |
Investments of at least EUR 150 million in demining of agriculture land |
Q4 |
2027 |
Final report of the Government (or State Treasury report) showing that in the State Budgets for 2024, 2025, 2026, 2027 the general Government budgeted at least EUR 150 million (in UAH equivalent) for the funds paid to agri-food producers for the costs of demining |
C.13. MANAGEMENT OF CRITICAL RAW MATERIALS
1. Description of Reforms and Investments
The objective of this chapter is to support further development of the critical raw materials sector in Ukraine in line with both economic and sustainability objectives. It will focus on improving strategic planning and administrative procedures.
Reform 1. Strengthening strategic planning and ensuring optimum framework for strategic investors.
The objective of this reform is to attract investments in the extraction and processing of critical raw materials.
The reform has two steps. First, a law on amendments to the National Programme for the Development of the Mineral Resource Base of Ukraine for the Period up to 2030 shall enter into force, introducing the State Compensatory Fund for geological area and setting strategic directions for the sector. Second, a report on the verification of critical raw materials reserves of Ukraine using international classification shall be published and made available to investors.
The reform is expected to be completed by Q3 2025.
Reform 2. Improved administrative procedures.
The objective of this reform is to optimise the procedure and reduce the administrative burden for potential investors. The main goal is to improve transparency, speed, and cost efficiency for new investment decisions.
The reform has three steps. First, a pipeline of investment projects for extraction of critical raw materials shall be published. Second, Product Sharing Agreement (PSA) international tenders using the model agreement terms as agreed by the Government and made public shall be launched. Third, the development and launch of an e-cabinet of subsoil users with additional functionalities.
The reform is expected to be completed by Q2 2025.
Reform 3. Use of Modern Extraction Technologies and Integration of Ukraine into Modern Processing Value Chains
The objective of this reform is to enhance transparency as regards environmental, social and corporate governance practices in the critical raw materials sector.
The reform has one step. It entails the publication of a study assessing current legislation on Environmental, Social and Governance reporting (ESG) in the mining and extractive sector.
The reform is expected to be completed by Q4 2025.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
13.1 |
Reform 1. Strengthening strategic planning and ensuring optimum framework for strategic investors |
Entry into force of the legislation on revising the National Programme for the Development of the Mineral Resource Base of Ukraine to 2030 |
Q4 |
2024 |
Entry into force of the Law of Ukraine on Amendments to the National Program for the Development of the Mineral Resource Base of Ukraine for the Period up to 2030. The law focuses on these main areas: - introduction of State Compensatory Fund for geological area; - prioritisation of the goals of extraction area in line with the EU Strategies; - definition of the terms of strategic and critical raw materials, the need for regular methodological risk assessment of the level of security of their supply, and the definition of a group of partner countries. |
|
13.2 |
Reform 1. Strengthening strategic planning and ensuring optimum framework for strategic investors |
Publishing of a report on the verification of Critical Raw Materials’ reserves of Ukraine |
Q3 |
2025 |
Publication of a report on the verification of Critical Raw Materials reserves of Ukraine using international classification system and results are made available to investors. |
|
13.3 |
Reform 2. Improved administrative procedures |
Publication of a pipeline of investment projects for extraction of critical raw materials |
Q2 |
2025 |
Publication of the pipeline of investment projects for extraction of critical raw materials. |
|
13.4 |
Reform 2. Improved administrative procedures |
Launching of Product Sharing Agreement (PSA) international tenders ensuring their transparency |
Q2 |
2025 |
Launch and publication of the Product Sharing Agreement (PSA) international tenders, using the model agreement terms as agreed by the Government. Transparency of PSA tenders and Agreements ensured through the open access to its terms. |
|
13.5 |
Reform 2. Improved administrative procedures |
Set up of an upgraded e-cabinet of subsoil users |
Q1 |
2025 |
An upgraded e-cabinet of subsoil users with additional functionalities of access to state register of special permits for subsoil use allowing requesting and obtaining e-licences (extract from the Register) and providing access to digital geological data is operational. |
|
13.6 |
Reform 3. Use of Modern Extraction Technologies and Integration of Ukraine into Modern Processing Value Chains |
Publication of a study on the legislation on ESG reporting |
Q4 |
2025 |
Endorsement and publication of study assessing the current legislation on Environmental, Social and Governance (ESG) reporting in the mining and extractive sector, proposing recommendations on what legislative gaps need to be covered. |
C.14. DIGITAL TRANSFORMATION
1. Description of Reforms and Investments
The objective of this chapter is to bolster the digital transformation of Ukraine. It will also focus on strengthening cybersecurity.
Reform 1. Secure and efficient digital infrastructure
The objective of this reform is to strengthen cybersecurity in the process of digital transformation.
The reform has two steps. First, a resolution that defines the radio technologies that are allowed for use in Ukraine shall be adopted. Second, a number of cybersecurity legislative acts shall enter into force to align with the NIS and NIS2 framework, also paving the way towards the implementation of the EU’s 5G Security Toolbox.
The reform is expected to be completed by Q1 2025.
Reform 2. Digitalisation of public services
The objective of this reform is to simplify the interaction between the state and citizens via digitalisation.
The reform has two steps. First, an Action Plan until 2026 for digitalisation of most common public services in a number of areas shall be adopted. Second, an act on supporting electronic identification schemes aligned with eIDAS Regulation and EU standards shall be adopted.
The reform is expected to be completed by Q2 2026.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
14.1 |
Reform 1. Secure and efficient digital infrastructure |
Adoption of a revised Plan for allocation and use of the radio spectrum in Ukraine |
Q1 |
2025 |
Adoption of the Resolution of the Cabinet of Ministers of Ukraine on amending the Resolution of the Cabinet of Ministers of Ukraine “On Approving the Plan for Allocation and Use of the Radio Spectrum in Ukraine”. The Resolution defines the radio technologies that are allowed for use in Ukraine, with the definition of the radio frequency bands and radio services to which they correspond, as well as the terms of termination of their development and use, as well as the list of promising radio technologies for implementation in Ukraine with the definition of the radio frequency bands and radio services to which they correspond, as well as the terms of their implementation in line with the EU acquis. |
|
14.2 |
Reform 1. Secure and efficient digital infrastructure |
Entry into force of the legislation on strengthening the cyber security capabilities of state information resources and critical information infrastructure |
Q1 |
2025 |
Entry into force of the respective legislative acts to align with the NIS and NIS2 framework (namely the Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148). The acts focus on these main areas: - regulate the mandatory implementation of measures aimed at creating an appropriate legal framework for the implementation of measures to prevent, detect and suppress acts of aggression in cyberspace in the context of the Russian Federation’s war against Ukraine; - increase the level of protection of state information resources and critical information infrastructure against cyberattacks; - improve the regulatory framework in the field of cybersecurity and information protection to strengthen the capabilities of the national cybersecurity system to counter cyber threats. |
|
14.3 |
Reform 2. Digitalisation of public services |
Adoption of the Action Plan for digitalisation of public services until 2026 |
Q1 |
2025 |
Adoption of the Ordinance of the Cabinet of Ministers of Ukraine on approving the action plan for digitalisation of public services until 2026. The action plan focuses on these main areas: - recovery; - education; - health care; - services for veterans; - military serviceman; - customs; - e-social sphere. |
|
14.4 |
Reform 2. Digitalisation of public services |
Entry into force of the legal act supporting electronic identification schemes aligned with eIDAS Regulation |
Q2 |
2026 |
Adoption of the Act of the Cabinet of Ministers of Ukraine on supporting electronic identification schemes aligned with eIDAS Regulation and EU standards. The Act shall approve the Regulation on the integrated system of electronic identification (part three of Article 15-3 of the Law of Ukraine “On electronic identification and electronic trust services”). The main tasks of the integrated electronic identification system are, inter alia: - creation of a modern electronic identification infrastructure in Ukraine and ensuring its sustainable development; - ensuring interoperability (technological compatibility) of electronic identification means, intermediate electronic identification nodes (hubs) and electronic identification schemes; - protection of information resources processed in the system. |
C.15. GREEN TRANSITION AND ENVIRONMENTAL PROTECTION
1. Description of Reforms and Investments
The objective of this chapter is to foster Ukraine’s green transition, by supporting decarbonisation and strengthening environmental and climate resilience.
Reform 1. Prevention, reduction and control of industrial pollution
The objective of this reform is to address environmental pollution, ensuring the constitutional right of citizens to a safe environment.
The reform has one step. It entails the entry into force of the legislation aimed at preventing, reducing and controlling industrial pollution, with a partial application of provisions. The step introduces integrated approaches to permitting and control of industrial pollution based on the application of best available technologies and management methods in accordance with relevant EU legislation.
The reform is expected to be completed by Q3 2024.
Reform 2. Climate policy
The objective of this reform is to create an architecture for climate governance as well as an appropriate mechanism for the development and implementation of state policy in the field of climate change in Ukraine.
The reform has three steps. First, new legislation shall enter into force that establishes basic principles of Ukraine’s state climate policy. Second, resolution on the scientific and expert council on the preservation of the ozone layer shall be adopted. Third, the second Nationally Determined Contribution of Ukraine to the Paris Climate Agreement shall be adopted.
The reform is expected to be completed by Q4 2025.
Reform 3. Market mechanisms of carbon pricing
The objective of this reform is to foster the development of market mechanisms of carbon pricing.
The reform has two steps. First, an action plan for the development of a National Greenhouse Gas Emissions Trading System shall be adopted. Second, Ukraine shall resume its mandatory monitoring, reporting, and verification (MRV) system, with certain exceptions.
The reform is expected to be completed by Q2 2025.
Reform 4. Restoration and conservation of natural resources
The objective of this reform is to reduce deforestation and forest degradation.
The reform has one step. It entails the entry into force of legislation that will regulate the issue of confirming the sustainability of the origin of wood and other goods that may lead to deforestation and forest degradation.
The reform is expected to be completed by Q2 2026.
Reform 5. Increased circular economy
The objective of this reform is to implement the principles of circular economy and waste management.
The reform has two steps. First, Ukraine shall adopt a strategy for implementing the principles of the circular economy and an action plan for its implementation. Second, a national waste management plan shall be adopted.
The reform is expected to be completed by Q1 2026.
Reform 6. Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA)
The objective of this reform is to foster environmental protection by enhancing clarity on the Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA) rules.
The reform has one step. It entails the publication of a concept note that shall define the scope of derogations from the EIA and SEA rules.
The reform is expected to be completed by Q3 2024.
2. List of steps and timetable for implementation
|
No. |
Reform / Investment |
Name of the step |
Timeline |
Step description |
|
|
15.1 |
Reform 1 Prevention, reduction and control of industrial pollution |
Entry into force of the legislation on prevention, reduction, and control of industrial pollution with partial application of provisions |
Q3 |
2024 |
Entry into force of the Law of Ukraine on Ensuring the Constitutional Rights of citizens to a safe environment for life and health with a partial application of the provisions. Bylaws are to be adopted within 12 months and some provisions on applying of the findings of the best available technologies and management methods within 4 years after termination of the martial law, except for the installations that are put into operation for the first time. The law is aimed at preventing, reducing and controlling industrial pollution and introduces integrated approaches to permitting and control of industrial pollution based on the application of the best available technologies and management methods in accordance with Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (recast) |
|
15.2 |
Reform 2. Climate policy |
Entry into force of the legislation on the State Climate Policy |
Q1 |
2025 |
Entry into force of the Law of Ukraine "On the Basic Principles of State Climate Policy". The law focuses on these main areas: - goals and basic principles of the state climate policy; - governing bodies in the field of climate change; - strategic planning in the field of climate change; - mechanisms and tools for achieving climate goals; - national framework for tracking the implementation of policies and measures and forecasting in the field of climate change; - scientific and expert council on climate change and preservation of the ozone layer; - national system of inventory of anthropogenic emissions by sources and absorption by sinks of greenhouse gases; - international cooperation in the field of climate change. |
|
15.3 |
Reform 2. Climate policy |
Adoption of the resolution on the Scientific and Expert Council on Climate Change and Preservation of the Ozone Layer |
Q4 |
2025 |
Adoption of the Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Regulation on the Scientific and Expert Council on Climate Change and Preservation of the Ozone Layer". The Regulation focuses on these main areas: - consideration of scientific conclusions of the Intergovernmental Panel on Climate Change (IPCC) reports and scientific climate data and information, in particular, concerning Ukraine; - providing scientific and expert support and proposals, including preparation of reports, on climate goals, policies and measures, monitoring their implementation and forecasting in the field of climate change, as well as compliance of goals, policies and measures with Ukraine's international obligations; - promoting the exchange of scientific achievements in the field of modelling, monitoring, advanced research and innovation aimed at reducing greenhouse gas emissions and increasing absorption by sinks; - scientific substantiation of ways and means to achieve climate goals; - informing, raising awareness and educating on climate change and its consequences, as well as developing dialogue and cooperation between scientific institutions on climate change issues; - guarantees of independence for said Council in all its proceedings; - diverse, scientifically relevant composition of said Council. |
|
15.4 |
Reform 2. Climate policy |
Adoption of the second Nationally Determined Contribution of Ukraine to the Paris Agreement |
Q3 |
2025 |
Adoption of the Order of the Cabinet of Ministers of Ukraine "On Approval of the Second Nationally Determined Contribution (NDC) of Ukraine to the Paris Agreement". The NDC focuses on these main areas: - higher emission reduction target than in the current NDC of Ukraine; - establishing a base year for calculating emissions from sources and sinks of greenhouse gases; - duration of implementation and/or time periods of the proposed measures; - scope and coverage of economic sectors and greenhouse gases; - process planning, assumptions and methodological approaches used, including for estimation and accounting of anthropogenic emissions by sources and removals by sinks of greenhouse gases; - justification of the equity and ambition of the NDC in the light of national circumstances; - contribution to the achievement of the objective of the UN Framework Convention on Climate Change and to limit greenhouse gas emissions/enhance sinks, in accordance with the objective set out in Article 2 of the UN Framework Convention on Climate Change. The Second NDC of Ukraine to the Paris Agreement will be more ambitious than the current Updated NDC. |
|
15.5 |
Reform 3. Market mechanisms of carbon pricing |
Adoption of the Action Plan for the Establishment of a National Greenhouse Gas Emissions Trading System |
Q1 |
2025 |
Adoption of the Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Action Plan for the Establishment of a National Greenhouse Gas Emissions Trading System. Adoption of the Action Plan will ensure the definition of: - stages of the ETS implementation; - timeframes of the stages; - the necessary infrastructure; - organisational measures. |
|
15.6 |
Reform 3. Market mechanisms of carbon pricing |
Resumption of the compulsory monitoring, reporting and verifying (MRV) system |
Q2 |
2025 |
The resumption of a mandatory monitoring, reporting and verification (MRV) system for facilities covered by the scope of the existing legislation, except for those that are not controlled, destroyed or located in the temporarily occupied territory, or have officially announced the suspension of operations in terms of production. |
|
15.7 |
Reform 4. Restoration and conservation of natural resources |
Entry into force of the Law on reducing deforestation and forest degradation |
Q2 |
2026 |
Entry into force of the Law of Ukraine that will regulate the issue of confirming the sustainability of the origin of wood and other goods that may lead to deforestation and forest degradation. The Law focuses on these main areas: - expanding the use of electronic timber accounting, which will ensure the tracking of timber movement and confirmation of the legitimacy of the origin of timber and timber products; - ensuring that the certification system for wood products was introduced and the existing certification system for manufactured wood was extended to cover all wood trading operations; - establishing requirements for confirming the origin of wood, including wood products in trade. |
|
15.8 |
Reform 5. Increased circular economy |
Adoption of the Strategy for implementing the principles of the circular economy and its Action Plan |
Q1 |
2026 |
Adoption of the strategy for implementing the principles of the circular economy and of an action plan for its implementation by the Cabinet of Ministers of Ukraine. The strategy identifies potential opportunities and impacts of the transition to a circular economy in Ukraine for 5-10 pre-selected priority sectors and value chains, such as waste, textiles, plastics, batteries, electronics, agriculture, construction and repair, and metals and minerals. |
|
15.9 |
Reform 5. Increased circular economy |
Adoption of the National Waste Management Plan until 2033 |
Q1 |
2026 |
Adoption of the Order of the Cabinet of Ministers of Ukraine "On Approval of the National Waste Management Plan until 2033". The National Waste Management Plan focuses on these main areas: - household waste management; - hazardous waste management; - infrastructure needs; - economic and financial sustainability analyses of the action plan; - implementation of economic instruments to improve waste management; - monitoring and control of waste management; - strategic planning of waste management in Ukraine; - implementation of waste management at the regional level. |
|
15.10 |
Reform 6. Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA) |
Development of a concept note defining the scope of deviations from the Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA) rules |
Q3 |
2024 |
Preparation and publication on the official website of the Ministry of Environmental Protection and Natural Resources of aa concept note following public consultations with stakeholders defining the scope of derogations from the EIA and SEA rules. The concept note includes the following information: - on the body that determines the scope of derogations from EIA and SEA obligations; - description of the objects and explanation of why they are included in the scope of derogation in each specific case; - justification of the scope of derogations; - time limits for the derogations granted. |
-
(1)
OECD (2023), The Principles of Public Administration, OECD, Paris, https://www.sigmaweb.org/publications/Principles-of-Public-Administration-2023.pdf
-
(2)
OECD (2015), OECD Guidelines on Corporate Governance of State-Owned Enterprises, OECD, Paris, https://www.oecd.org/daf/ca/guidelines-corporate-governance-soes.htm