Lawmakers have heard calls from businesses for economic reservations and have already developed several concepts

In June of this year, four sets of draft laws were registered in the Verkhovna Rada of Ukraine, aimed at introducing a so-called system of economic reservation. Currently, there are four models:

• The first model, based on draft laws No. 11331 and No. 11332, provides for a single military fee of UAH 20.4 thousand (1200 tax-free minimums) per month for businesses and sole proprietors.
• The second model, draft law No. 11331-1, provides for an average salary criterion of UAH 35 thousand (12 subsistence minimums) for businesses.
• The third model, draft laws No. 11331-2 and No. 11332-1, provides for an average salary criterion of UAH 35 thousand for businesses and a single military fee of UAH 20.4 thousand per month for sole proprietors.
• The fourth model, No. 11388 and 11332-2, proposes to abolish the strategic reservation model and replace it exclusively with an economic one with a fee of UAH 20.4 thousand per month.

Experts from the European Business Association have analyzed all four sets of draft laws in detail. Undoubtedly, the introduction of an economic reservation mechanism is an important marker that the state cares about the need to develop the economy even under martial law. Accordingly, the availability of an alternative, simple, transparent, and at the same time operational mechanism for reserving critical employees will have a positive impact on business and investment activity in the country. The ЕВА has already expressed its support for and the importance of introducing economic reservation in the country.

After analyzing all the models, businesses emphasize that, in general, the first three models can indeed be useful and important for stimulating the economy.

At the same time, if we emphasize which model entrepreneurs support, we can state that most transparent businesses are inclined towards the third model of reservation, according to which, in order to get such an opportunity, a business needs to have an average salary in the company of UAH 35 thousand, and for sole proprietors, a single military fee of UAH 20.4 thousand per month is envisaged. These are the basic criteria for a company’s participation.

However, in addition to the conditions established by the draft law, businesses also ask to allow the use of economic reservation to increase the quota for reserving employees beyond 50%. After all, in some areas and at certain times, the number of critically important employees for a company can exceed half – in order to fulfill the assigned tasks (as, for example, at the beginning of spring, we wrote about the sowing campaign). In addition, the community asks to provide immunity to those whom the company plans to submit for reservation so that such a person can update their military data.

Moreover, it is extremely important for businesses that this model can work in parallel with the strategic reservation system, so the ЕВА does not support the fourth model.

Considering the above, the European Business Association appeals to Yuliіa Svyrydenko, First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine, Dmytro Natalukha, Chairman of the Verkhovna Rada Committee on Economic Development, Liudmyla Buimister, Head of the Subcommittee on Competition Development and Equal Conditions for Business of the Verkhovna Rada Committee on Economic Development, with a request to take into account this position of business when considering the economic reservation instrument and adopting relevant draft laws, including at the meeting of the relevant Verkhovna Rada Committee. We hope that the voice of business will be heard!