Business asks to finalize updated legislation on mobilization
In December, the Verkhovna Rada registered a draft law on improving certain issues of mobilization, military registration, and military service No. 10378 and a draft law on strengthening responsibility for military offenses No. 10379, which proposes to improve the legislation on mobilization.
The business has analyzed the provisions of both documents in detail and would like to express its concern over several proposed provisions that may contain signs of violation of the Constitution of Ukraine. This may have negative consequences for Ukraine’s economy, the country’s reputation, and the extremely important process of rebuilding our country.
Thus, according to the President of Ukraine, it is the stable functioning of the Ukrainian economy that allows the Armed Forces of Ukraine to function effectively, as money from taxes and fees from business is the only source of funding for the army. As of today, six taxpayers provide for one soldier, and the only way to increase the capabilities of the Armed Forces is through de-shadowing and economic growth.
At the same time, the rules proposed in the Draft Laws may, on the contrary, lead to an increase in the number of “envelope salaries” and unofficial employment, an outflow of foreign investment, and a significant deterioration in the business environment, which, according to the EBA survey, is estimated at 2.44 out of 5 points (negative) at the end of 2023.
We would also like to note that several provisions may actually deprive Ukrainian citizens of their basic rights, including the right to obtain a document certifying their identity and citizenship of Ukraine, which is unacceptable even during a special period and may have extremely negative social and demographic consequences.
Concerning other comments and suggestions, business representatives are convinced that expanding the powers of local executive authorities in the field of mobilization will not contribute to the manageability of the process due to its decentralization. At the same time, concerning the delivery of summonses, this should be done by the competent authorities only, without granting such powers to other structures or legal entities, to avoid additional significant burden, abuse, and confusion. In addition, shortening the timeframe, in particular, for all persons liable for military service in Ukraine to update their data within 30 days, could lead to a collapse of the system and malfunctions in the electronic office of a conscript, person liable for military service, or reservist due to a significant influx. At the same time, the comments also concern administrative penalties, liability, etc.
The European Business Association has already sent a letter with comments and suggestions to the Chairman of the Verkhovna Rada Committee on National Security, Defense, and Intelligence, Mr. Zavitnevych. Thus, the business does not support the adoption of the Draft Laws in the proposed version and proposes to finalize the documents. The community is ready to join in their revision for the second reading and sincerely hopes that the voice of business will be heard to avoid a collapse in the difficult process of mobilization. After all, people are key to achieving Ukraine’s victory as soon as possible, but so are businesses. Therefore, it is extremely important to formulate a reasonable and well-thought-out strategy so that both the economy and the Armed Forces of Ukraine can work – each in its own direction – to bring the Victory of our country closer!