The draft law on critical infrastructure needs to be revised

25/ 11/ 2021

Listen to online Stop   The European Business Association calls on the President of Ukraine not to sign the Law on Critical Infrastructure, which was adopted in the second reading on November 16 by the Verkhovna Rada of Ukraine without appropriate revision. After all, the document contains norms that can harm not only many business sectors but also the functioning of the country as a whole. For example, representatives of the banking sector are concerned that the document does not fully ensure the independence of the NBU. Thus, the draft law provides for the establishment of an Authorized Body for the Protection of Critical Infrastructure of Ukraine. However, not all provisions clearly state that the National Bank of Ukraine will regulate and supervise the activities of critical infrastructure in the banking and financial systems. Representatives of the e-communications sector are concerned that, about the imposition of responsibilities for the protection of communications infrastructure on the electronic communications operators given the specifics of the location of their equipment. The concerns regard to the possibility of imposing liability, including criminal one, for failure to protect critical infrastructure, the list of which can be expanded or significantly increased. Sectoral critical infrastructure protection authorities will also be empowered to impose a special crisis response regime on critical infrastructure facilities of their sector (chemical industry, water supply, food supply, etc.), such as operating restrictions. Business representatives have fears that this could slow down the work of companies that provide the functioning of the country. Moreover, liability can also be imposed for this slowdown. At the same time, the owners/operators of critical infrastructure will be obliged to create conditions for the proper performance of law enforcement, intelligence, counterintelligence bodies of their functions directly on the territory of critical infrastructure. At the same time, the draft law On Critical Infrastructure does not contain a specific list of such conditions. Therefore, business representatives have concerns that this creates a field for possible abuse. In April 2021, the EBA informed the authors of draft law №5219 about the importance of its completion, in particular, to specify the objects, the criteria of critical infrastructure. However, during the preparation of the text of the draft Law for the second reading, the remarks provided by the EBA were not taken into account. Therefore, the European Business Association expects that this draft law will still be finalized taking into account the proposals of experts from the business community.   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

The European Business Association calls on the President of Ukraine not to sign the Law on Critical Infrastructure, which was adopted in the second reading on November 16 by the Verkhovna Rada of Ukraine without appropriate revision. After all, the document contains norms that can harm not only many business sectors but also the functioning of the country as a whole.

For example, representatives of the banking sector are concerned that the document does not fully ensure the independence of the NBU. Thus, the draft law provides for the establishment of an Authorized Body for the Protection of Critical Infrastructure of Ukraine. However, not all provisions clearly state that the National Bank of Ukraine will regulate and supervise the activities of critical infrastructure in the banking and financial systems.

Representatives of the e-communications sector are concerned that, about the imposition of responsibilities for the protection of communications infrastructure on the electronic communications operators given the specifics of the location of their equipment. The concerns regard to the possibility of imposing liability, including criminal one, for failure to protect critical infrastructure, the list of which can be expanded or significantly increased.

Sectoral critical infrastructure protection authorities will also be empowered to impose a special crisis response regime on critical infrastructure facilities of their sector (chemical industry, water supply, food supply, etc.), such as operating restrictions. Business representatives have fears that this could slow down the work of companies that provide the functioning of the country. Moreover, liability can also be imposed for this slowdown.

At the same time, the owners/operators of critical infrastructure will be obliged to create conditions for the proper performance of law enforcement, intelligence, counterintelligence bodies of their functions directly on the territory of critical infrastructure. At the same time, the draft law “On Critical Infrastructure” does not contain a specific list of such conditions. Therefore, business representatives have concerns that this creates a field for possible abuse.

In April 2021, the EBA informed the authors of draft law №5219 about the importance of its completion, in particular, to specify the objects, the criteria of critical infrastructure. However, during the preparation of the text of the draft Law for the second reading, the remarks provided by the EBA were not taken into account.

Therefore, the European Business Association expects that this draft law will still be finalized taking into account the proposals of experts from the business community.

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