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EBA welcomes the adoption of the Law on Cloud Services

17/ 02/ 2022
  Today, the Verkhovna Rada adopted draft law №2655 On Cloud Services in the 2nd reading. Altogether, 232 MPs voted in favor of the draft law which had been registered in the VRU since December 2019. The European Business Association welcomes the adoption of this crucial draft law which is important for further digitization of both government and business processes. Even though the text had certain problematic aspects between the first and second readings (as highlighted by the EBA experts), they were settled in the final text. Thus, the main problem concerned the ban on processing/storing of data in cloud storage outside Ukraine. Fortunately, the opinion of business has been heard and this provision now does not limit such activities that will allow cloud services to work in full in Ukraine. Business was also concerned about ambiguities in the application of provisions that empowered the government to require any documents from cloud service providers. However, the relevant clarifications with a specified list of documents were added to the final text of the Law. Besides, the EBA community highlighted Article 13 according to which the service provider is considered to be the data steward and thus it must ensure the protection of the user personal data by law. Given that in the Infrastructure as a Service and Platform as a Service models, the provider cannot be the data steward because it does not process personal data, but only provides the user with its data services. Therefore, this provision was excluded in the final text of the draft Law. Olga Kunychak. EBA IT Committee Manager. The provisions of the document lay the foundations for the more widespread use of cloud solutions. In many countries, the strategy is known as Cloud First - in public administration, education, science, etc. I hope that in Ukraine it will also become an impetus for more effective interaction between the state and society. And it is very much in line with the national strategy of further digitalization of the country. Also, the Cloud First strategy will save public funds by an order of magnitude, for example, for the purchase of equipment that will become obsolete over time. Furthermore, the draft Law will give further impetus to digitalization in healthcare and regulatory procedures in the field of drug sales and clinical trials. These areas require the accumulation of large volumes of data, which currently exist mainly in paper form, forming huge archives. And electronic documents must be stored exclusively on servers, which need to be procured and supported, including by governmental authorities. Digitalizing document management and its storage in the cloud will greatly improve and simplify both the business and government environment and significantly improve the availability and ability to analyze such data, and thus foster innovation. The EBA business community sincerely thanks MPs, Olena Shulyak, head of the Servant of the People party, the relevant VRU Committee on Digital Transformation, and the Ministry of Digital Transformation for fruitful dialogue and cooperation in the finalization of critical remarks from business.   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

Today, the Verkhovna Rada adopted draft law №2655 “On Cloud Services” in the 2nd reading. Altogether, 232 MPs voted in favor of the draft law which had been registered in the VRU since December 2019.

The European Business Association welcomes the adoption of this crucial draft law which is important for further digitization of both government and business processes.

Even though the text had certain problematic aspects between the first and second readings (as highlighted by the EBA experts), they were settled in the final text. Thus, the main problem concerned the ban on processing/storing of data in cloud storage outside Ukraine. Fortunately, the opinion of business has been heard and this provision now does not limit such activities that will allow cloud services to work in full in Ukraine.

Business was also concerned about ambiguities in the application of provisions that empowered the government to require any documents from cloud service providers. However, the relevant clarifications with a specified list of documents were added to the final text of the Law.
Besides, the EBA community highlighted Article 13 according to which the service provider is considered to be the data steward and thus it must ensure the protection of the user personal data by law. Given that in the “Infrastructure as a Service” and “Platform as a Service” models, the provider cannot be the data steward because it does not process personal data, but only provides the user with its data services. Therefore, this provision was excluded in the final text of the draft Law.

Olga Kunychak EBA IT Committee Manager
The provisions of the document lay the foundations for the more widespread use of cloud solutions. In many countries, the strategy is known as "Cloud First" - in public administration, education, science, etc. I hope that in Ukraine it will also become an impetus for more effective interaction between the state and society. And it is very much in line with the national strategy of further digitalization of the country. Also, the Cloud First strategy will save public funds by an order of magnitude, for example, for the purchase of equipment that will become obsolete over time.

Furthermore, the draft Law will give further impetus to digitalization in healthcare and regulatory procedures in the field of drug sales and clinical trials. These areas require the accumulation of large volumes of data, which currently exist mainly in paper form, forming huge archives. And electronic documents must be stored exclusively on servers, which need to be procured and supported, including by governmental authorities. Digitalizing document management and its storage in the cloud will greatly improve and simplify both the business and government environment and significantly improve the availability and ability to analyze such data, and thus foster innovation.

The EBA business community sincerely thanks MPs, Olena Shulyak, head of the Servant of the People party, the relevant VRU Committee on Digital Transformation, and the Ministry of Digital Transformation for fruitful dialogue and cooperation in the finalization of critical remarks from business.

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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