By the end of June, the Cabinet of Ministers and the Verkhovna Rada must implement nine points under the plan, according to which Ukraine should receive €50 billion in the next four years. In the next three months, the government must fulfill nine points under the Ukraine facility, which the Cabinet approved on March 18. Almost half of the obligations have already been fulfilled. Three points have been closed ahead of schedule.
In February, the parliament adopted a law on corporate governance of state-owned companies, the Ministry of Finance adopted a plan for the digitalization of customs, and in January the government supported the Strategy for Thermal Modernization of Buildings.
Among the unresolved tasks is the reform of the Bureau of Economic Security (BES):
– preparation of a budget declaration,
– approval of a mine action strategy,
– approval of the National Energy and Climate Plan, – approval of an action plan for the implementation of the public investment management reform.
The price of timely implementation is €4 billion out of the €16 billion that the Cabinet is to receive this year.
Is the government on time to implement the plan and what do the reforms look like from the inside?
BEB Reform
By the end of June 2024, the parliament plans to adopt a law on the BEB reboot. In late February, the Verkhovna Rada (VR) defeated the government version of the BEB draft law. Deputies demanded to review two key issues, such as:
1) recertification of employees
2) selection of the bureau director
The government must now resubmit the bill to the Verkhovna Rada, which will likely happen in mid-April.
Budget declaration
The Ministry of Finance must prepare a budget declaration for 2025-2027 by May 15. The Cabinet of Ministers already approved the resumption of medium-term planning at the local level in March. Now the parliament must support this decision. If the entire procedure is completed by July, then medium-term planning at the local level will begin this year, the press service of the Ministry of Finance said in a written response. If not, then from the next.
Priority areas of expenditure:
– providing defense forces;
– social support;
– restoration of destroyed or damaged property;
– fulfillment of all debt obligations.
Reform of the management of state-owned companies
In the Ukraine Facility plan, this indicator is for the second quarter of 2024, but the parliament and the government have already fulfilled it. The law was adopted at the end of February 2024.
National Energy and Climate Plan
The document harmonizes all commitments made by the government within the framework of various international programs for energy and climate policy reform, and also sets new goals stipulated by European legislation.
Mine Action Strategy until 2033
The National Mine Action Authority reviewed the strategy on February 12, 2024. Now the document must be approved by the National Security and Defense Council (NSDC) and signed by the president. As part of the strategy, the Ministry of Economy is launching a program for agrarians and farmers to compensate for the demining of territories by the end of April. To do this, companies must submit an application through the State Agrarian Register (DAR), then specialists from the Humanitarian Demining Center must process it and form the initial cost of the work.
Then the application for demining is submitted to Prozorro and the mine action operator who offered the lowest price will receive the order. The state covers 80% of the costs, and the company - the remaining 20%. The budget for this year includes UAH 3 billion for the program. Also, in the coming months, the Unified State Register of Contaminated Lands should be launched. It will indicate safe areas that have been surveyed or require demining.
Digitalization of the State Customs Service
In February 2024, the Ministry of Finance approved a plan for the digitalization of customs, designed until 2028. As part of the strategy, the development of two digital tools should be completed by the end of the second quarter of 2024:
– Automated customs clearance system “Center”, which will contain various documents, for example, electronic copies of customs declarations;
– The updated national guarantee system (GMS-UA) will provide a guarantee for goods in common transit. It will be possible to register a financial guarantee and make changes to it electronically.
By the end of the second quarter, customs will begin implementing the Customs Decision System (CDS). This is an automated system that will process customs decisions using the data exchange format used in the EU.
During the same period, testing of the Counterfeiting and Piracy Control System (COPIS) should be completed. This is a platform that will contain information about copyright holders and the history of their applications, submissions of changes to them, samples of protected products, etc.
Negotiations are also underway with the Ministry of Infrastructure to provide benefits to enterprises that use digital services, such as the New Computerized Transit System (NCTS). This includes, for example, benefits in using the eQueue application, the ministry's press service added.
The digitalization of customs also has an anti-corruption effect - not only by minimizing the human factor, but also by improving information exchange between enterprises and customs authorities of neighboring countries, the press service of the Ministry of Finance adds.
Roadmap for reforming public investment management
Deadline – by June 2024. The document is divided into two stages – a transition period (2024-2025) and full implementation (2026-2028).
Key tasks for the first stage:
– introduction of strategic planning of public investments;
– legislative regulation;
– updating the methodological base;
– creation of IT architecture.
The Ministry of Finance has already received a number of investment projects for 2025-2027. Currently, the projects are undergoing screening and prioritization. They will then be considered by the Strategic Investment Council, which will be established soon, the press service of the Ministry of Finance states. At the legislative level, the requirement to include in the budget only those projects that have passed the assessment and selection will be strengthened, the press service of the department says in a response.
Strategy for thermal modernization of buildings for the period until 2050
In early January 2024, the government approved a strategy for thermal modernization of buildings, this indicator can also be considered fulfilled. In addition, this is one of the points of the Association Agreement with the EU.
The document contains the following priorities:
– rapid pace of thermal modernization of public buildings;
– permanent financing;
– digitalization of processes;
– creation of market conditions and attraction of human potential in this area.
Implementation should reduce energy consumption in the public and residential building sector by 15% by 2030, by 30% by 2040, and by 40% by 2050.
