Business calls for the prolongation of effective reservations and the launch of e-BusinessTrip

18/ 10/ 2022

In recent months, the reservation of persons liable for military service has been one of the key issues for companies that are critical for the functioning of the national economy. Thus, the risks of losing critical personnel for the operation of companies are extremely high, and the imperfection of the reservation procedure and constant delays in providing such reservations even if all the conditions provided by law are met, often force enterprises to reduce production and actually stop their work and any investment. Thus, it is an obstacle to business activities along with military threats, physical destruction, disrupted supply chains, low purchasing power, etc. Surely, business understands that Ukraine is at war and military needs are extremely important. However, the economy must also work for the state to function. And the heart of the economy is a transparent business working, paying taxes, and salaries, and supporting the country. The European Business Association has repeatedly emphasized the need to create a simple and understandable procedure for obtaining such reservations and urgently improve the legislation so that at least the companys operational activities can continue normally because people are critical of this. Thus, on September 7 this year, CMU Resolution No. 1002 extended the current reservations for two months without the need for re-approval by the Ministry of Defense of Ukraine. The transparent business operating in Ukraine expressed sincere gratitude to the Government for this decision. At the same time, as of mid-October, the amendments necessary to improve the procedure for reservation and cancellation of mobilization tasks have not been adopted. Therefore, taking into account the optimistic scenario that the necessary amendments to the legislation will be adopted within six weeks and the time required to review the applications for reservations under the new procedure, new reservations will be possible no earlier than the second half of December. However, the current reservations will be expired in mid-November and, accordingly, the work of most companies critical for the food and economic security of the state will be under threat. Therefore, the European Business Association appeals to the Government to extend the current reservations for another two months without the need for re-approval by the Ministry of Defense. This will allow the state to adopt all necessary legislative changes in compliance with the terms and procedures established by law, to gradually reserve critical personnel for the economy to function without overload, and for businesses to continue to work, maintain the operations, support employees, pay taxes and salaries, etc. Moreover, at the end of the summer, the Government announced the launch of the e-Travel mechanism starting from September 1, with the help of which companies could make a special deposit and get permission for a short-term business trip for their employees. More than 1.5 months have passed, but the mechanism, unfortunately, has not yet started working. Therefore, business appeals to the Government to launch this mechanism, because quite often strategic issues of business development, building new logistics routes, investment, etc. cannot be solved online, but require physical presence. Moreover, the decision to allow short-term business trips abroad will have an important impact on the countrys economy, development, and recovery. At the same time, it becomes obvious that restrictive measures will not foster any development. We sincerely hope that the voice of the business community will be heard!

Surely, business understands that Ukraine is at war and military needs are extremely important. However, the economy must also work for the state to function. And the heart of the economy is a transparent business working, paying taxes, and salaries, and supporting the country.

The European Business Association has repeatedly emphasized the need to create a simple and understandable procedure for obtaining such reservations and urgently improve the legislation so that at least the company’s operational activities can continue normally because people are critical of this.

Thus, on September 7 this year, CMU Resolution No. 1002 extended the current reservations for two months without the need for re-approval by the Ministry of Defense of Ukraine. The transparent business operating in Ukraine expressed sincere gratitude to the Government for this decision.

At the same time, as of mid-October, the amendments necessary to improve the procedure for reservation and cancellation of mobilization tasks have not been adopted. Therefore, taking into account the optimistic scenario that the necessary amendments to the legislation will be adopted within six weeks and the time required to review the applications for reservations under the new procedure, new reservations will be possible no earlier than the second half of December. However, the current reservations will be expired in mid-November and, accordingly, the work of most companies critical for the food and economic security of the state will be under threat.

Therefore, the European Business Association appeals to the Government to extend the current reservations for another two months without the need for re-approval by the Ministry of Defense. This will allow the state to adopt all necessary legislative changes in compliance with the terms and procedures established by law, to gradually reserve critical personnel for the economy to function without overload, and for businesses to continue to work, maintain the operations, support employees, pay taxes and salaries, etc.

Moreover, at the end of the summer, the Government announced the launch of the “e-Travel” mechanism starting from September 1, with the help of which companies could make a special deposit and get permission for a short-term business trip for their employees. More than 1.5 months have passed, but the mechanism, unfortunately, has not yet started working. Therefore, business appeals to the Government to launch this mechanism, because quite often strategic issues of business development, building new logistics routes, investment, etc. cannot be solved online, but require physical presence. Moreover, the decision to allow short-term business trips abroad will have an important impact on the country’s economy, development, and recovery. At the same time, it becomes obvious that restrictive measures will not foster any development.

We sincerely hope that the voice of the business community will be heard!