Parliament takes business concerns into account regarding draft law on the priority use of Ukrainian tobacco raw materials

11/ 06/ 2026

The European Business Association welcomes the decision of the Verkhovna Rada of Ukraine to reject draft law No. 14245 on increasing the effectiveness of control over the production and circulation of tobacco raw materials. The Association is grateful to Members of Parliament for taking into account the position of the business community and paying attention to the concerns raised during discussions of this legislative initiative. In particular, the business community expressed significant concern over the provision requiring the priority use of tobacco raw materials of Ukrainian origin. Such an approach could have restricted the freedom to choose suppliers, created unequal competitive conditions, and contradicted the principles of a market economy and Ukraine’s international obligations. In addition, the draft law proposed introducing new control instruments for the circulation of tobacco raw materials, despite the fact that the necessary mechanisms are already in place. For example, extending the eExcise system to tobacco raw materials does not correspond to European practice, where raw materials are not subject to traceability within such systems. In the business community’s view, this could not only create additional regulatory burdens but also complicate the overall implementation of the eExcise system in Ukraine. The European Business Association consistently supports the development of a competitive, transparent, and predictable business environment and looks forward to continued constructive dialogue with the authorities during the preparation of future legislative initiatives.

The Association is grateful to Members of Parliament for taking into account the position of the business community and paying attention to the concerns raised during discussions of this legislative initiative.

In particular, the business community expressed significant concern over the provision requiring the priority use of tobacco raw materials of Ukrainian origin. Such an approach could have restricted the freedom to choose suppliers, created unequal competitive conditions, and contradicted the principles of a market economy and Ukraine’s international obligations.

In addition, the draft law proposed introducing new control instruments for the circulation of tobacco raw materials, despite the fact that the necessary mechanisms are already in place. For example, extending the eExcise system to tobacco raw materials does not correspond to European practice, where raw materials are not subject to traceability within such systems. In the business community’s view, this could not only create additional regulatory burdens but also complicate the overall implementation of the eExcise system in Ukraine.

The European Business Association consistently supports the development of a competitive, transparent, and predictable business environment and looks forward to continued constructive dialogue with the authorities during the preparation of future legislative initiatives.