The Verkhovna Rada canceled the ban on profits for suppliers of the armed forces

Author:
Sofiia Telishevska
Date:

At its plenary session on February 22, the Verkhovna Rada (the Ukrainian Parliament) adopted draft law No. 10454 on the inclusion of the profit of enterprises working to ensure security and defense needs in the price of supplied goods and services.

The bill was supported by 259 MPs, as the MP Yaroslav Zhelezniak said.

"Todayʼs decision is an important result of our meetings with businesses regarding the pressure on them by law enforcement agencies and the obstruction of effective work," commented Economy Minister Yuliya Svyridenko on the adoption of the law.

Draft Law No. 10454 adopted by the Verkhovna Rada provides, in particular, that:

  • in the case of the purchase of goods, works and services for the needs of security and defense under a non-competitive procedure or without a procurement procedure, the level of profit cannot exceed the maximum level of profit established by the government;
  • for cases where the level of profit has not been set by the government, the price should be determined according to the offer of the performer, taking into account the profit of such performer.

These norms apply to all state contracts for defense procurement, concluded under a non-competitive procedure or without a procedure during the entire period of martial law.

"That is, the law has a retrospective direction, which will allow law enforcement agencies to close cases initiated earlier due to the inconsistency of the regulatory field," the relevant ministry emphasizes.

The law will enter into force after being signed by the president and officially published.