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EBA calls for preserving guarantees of independence for the Ukrainian Pharmaceutical Agency

11/ 11/ 2026
  The European Business Association is concerned about the changes to the funding model of the Ukrainian Pharmaceutical Agency (Ukrfarma Agency) envisaged in the draft Law of Ukraine “On the State Budget of Ukraine for 2027”. In particular, the draft provides for the suspension, for 2027, of certain provisions of the Law of Ukraine “On Medicinal Products” concerning the special funding mechanism for the regulator and the remuneration of its employees. In the business community’s view, these changes could pose risks to the financial sustainability and institutional capacity of the Ukrfarma Agency. In particular, the provisions in question concern the allocation of business contributions to the special fund of the State Budget and the use of these funds to provide financial and material-technical support to the state control authority and its territorial bodies, as well as a number of provisions governing staff remuneration. As a result, the operating framework established by law for the Ukrfarma Agency could be revised even before its launch, scheduled for 1 January 2027. The European Commission’s EU Enlargement Report specifically acknowledges the establishment of the Ukrfarma Agency and outlines the key conditions for its operation: adequate human and financial resources, efficiency, and compliance with integrity standards. The Association supports ensuring stable and sufficient funding for the authority to enable it to fulfil these responsibilities. A special status, combined with stable funding, competitive remuneration conditions and transparent staff selection procedures, should ensure the recruitment of qualified professionals and the independence of regulatory decisions. However, assigning broader responsibilities to the Ukrfarma Agency without providing the necessary resources creates risks of staff shortages, procedural delays and a decline in the quality of expert assessments. Both companies registering and supplying products and patients awaiting treatment will feel the impact. The business community is particularly concerned about the revision of these conditions at the time when the competition for the position of Head of the Ukrfarma Agency is being launched. Candidates are participating in the selection process based on the operating framework for the future authority established by law. Changes to funding and remuneration arrangements at this stage could increase uncertainty, affect the attractiveness of the position and undermine confidence in the selection process. The EBA calls on the Ministry of Finance, the Cabinet of Ministers and the Verkhovna Rada of Ukraine to reconsider the proposed budget amendments concerning the Ukrfarma Agency, while preserving guarantees of its independence, adequate funding and staffing. The relevant model should be based on transparent use of funds and clear performance indicators. Budget decisions for 2027 should ensure the full launch of a professional and accountable regulator capable of applying European practices and facilitating Ukraine’s integration into the EU pharmaceutical market.

The European Business Association is concerned about the changes to the funding model of the Ukrainian Pharmaceutical Agency (Ukrfarma Agency) envisaged in the draft Law of Ukraine “On the State Budget of Ukraine for 2027”. In particular, the draft provides for the suspension, for 2027, of certain provisions of the Law of Ukraine “On Medicinal Products” concerning the special funding mechanism for the regulator and the remuneration of its employees. In the business community’s view, these changes could pose risks to the financial sustainability and institutional capacity of the Ukrfarma Agency.

In particular, the provisions in question concern the allocation of business contributions to the special fund of the State Budget and the use of these funds to provide financial and material-technical support to the state control authority and its territorial bodies, as well as a number of provisions governing staff remuneration. As a result, the operating framework established by law for the Ukrfarma Agency could be revised even before its launch, scheduled for 1 January 2027.

The European Commission’s EU Enlargement Report specifically acknowledges the establishment of the Ukrfarma Agency and outlines the key conditions for its operation: adequate human and financial resources, efficiency, and compliance with integrity standards. The Association supports ensuring stable and sufficient funding for the authority to enable it to fulfil these responsibilities.

A special status, combined with stable funding, competitive remuneration conditions and transparent staff selection procedures, should ensure the recruitment of qualified professionals and the independence of regulatory decisions. However, assigning broader responsibilities to the Ukrfarma Agency without providing the necessary resources creates risks of staff shortages, procedural delays and a decline in the quality of expert assessments. Both companies registering and supplying products and patients awaiting treatment will feel the impact.

The business community is particularly concerned about the revision of these conditions at the time when the competition for the position of Head of the Ukrfarma Agency is being launched. Candidates are participating in the selection process based on the operating framework for the future authority established by law. Changes to funding and remuneration arrangements at this stage could increase uncertainty, affect the attractiveness of the position and undermine confidence in the selection process.

The EBA calls on the Ministry of Finance, the Cabinet of Ministers and the Verkhovna Rada of Ukraine to reconsider the proposed budget amendments concerning the Ukrfarma Agency, while preserving guarantees of its independence, adequate funding and staffing. The relevant model should be based on transparent use of funds and clear performance indicators. Budget decisions for 2027 should ensure the full launch of a professional and accountable regulator capable of applying European practices and facilitating Ukraine’s integration into the EU pharmaceutical market.

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