Legislative Review

January 20 – 24, 2025. The National Bank of Ukraine has increased accounting rate to 14.5% per annum

The Cabinet of Ministers of Ukraine adopted a resolution that defines the activities of the Ministry of National Unity of Ukraine, as well as regulates its powers and areas of competence. The corresponding resolution was adopted on January 24, 2025.

This document defines the main powers of the Ministry of National Unity, namely:

  • ensuring the formation and implementation of state policy on issues of national unity of Ukraine and joint development; Ukrainian national identity; information policy of unity of Ukraine and strategic communications (in terms of powers on issues of national unity of Ukraine);
  • formation and implementation of state policy on ensuring the rights and interests of persons who have left abroad, as defined by the legislation of Ukraine, in particular as a result of armed conflict. As well as creating conditions for their voluntary return to their abandoned place of residence or integration at a new place of residence in Ukraine;
  • assistance in coordination with the Ministry of Foreign Affairs in meeting the national, cultural, educational and linguistic needs of persons who have gone abroad;
  • promotion the establishment of Ukrainian national identity and Ukrainian civic identity.

In addition, the Government approved the creation of the Agency for National Unity, a key structure that will help implement initiatives to interact with the Ukrainian community and public organizations in host countries.

The Agency will operate within the sphere of management of the Ministry of National Unity of Ukraine.

The resolution also approved the abbreviated name of the Ministry of National Unity of Ukraine - Minnatsyednosti.

The Ministry of Finance of Ukraine has prepared the draft order “On Approval of Application Forms for Entering Information on Equipment for Preparation or Processing of Tobacco, Tobacco Raw Materials, and Industrial Production of Tobacco Products into the Unified Register of Equipment, on Making Changes to the Information Contained in the Unified Register of Equipment, the Procedure for Filling it out, and the Form of Extract from the Unified Register of Equipment” (hereinafter the draft order).

The draft order was developed in accordance with Article 38 of Law of Ukraine No. 3817-IХ of June 18, 2024 “On State Regulation of the Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Bioethanol, Alcoholic Beverages, Tobacco Products, Tobacco Raw Materials, Liquids Used in Electronic Cigarettes, and Fuel” (hereinafter – Law No. 3817), which defines the requirements for entering information on equipment for the preparation or processing of tobacco, tobacco raw materials, industrial production of tobacco products, except for nicotine-containing products for oral use, which is imported into the customs territory of Ukraine, stored and/or used in the customs territory of Ukraine (hereinafter the equipment), into the Unified Register of Equipment.

These norms, in accordance with paragraph six of item 1 of section XII "Final Provisions" of Law No. 3817 entered into force on January 1, 2025.

In particular, parts nine and twenty-four of Article 38 of Law No. 3817 stipulate that the forms of applications for entering information about equipment into the Unified Register of Equipment, for making changes to the information contained in the Unified Register of Equipment, and the procedure for filling them out, as well as the form of an extract from the Unified Register of Equipment, are approved by the Ministry of Finance of Ukraine.

The dradt order proposes:

  • to declare invalid Oder of the Ministry of Finance of Ukraine No. 99 of February 29, 2024 “On Approval of Application Forms for Registration of Equipment for the Preparation or Processing of Tobacco, Tobacco Raw Materials, Industrial Production of Tobacco Products in the Unified State Register of Equipment for the Preparation or Processing of Tobacco, Tobacco Raw Materials, Industrial Production of Tobacco Products, on Amendments to Information, on Exclusion of Information Contained in the Unified State Register of Equipment for the Preparation or Processing of Tobacco, Tobacco Raw Materials, Industrial Production of Tobacco Products”, registered with the Ministry of Justice of Ukraine on March 14, 2024 under No. 382/4172;
  • to establish the entry into force of the order from the date of its official publication;
  • to approve:
    • application form for entering information about equipment for the preparation or processing of tobacco, tobacco raw materials, and industrial production of tobacco products into the Unified Register of Equipment;
    • application form for making changes to the information contained in the Unified Register of Equipment;
  • Procedure for filling out applications for entering information about equipment for the preparation or processing of tobacco, tobacco raw materials, and industrial production of tobacco products into the Unified Register of Equipment, and for making changes to the information contained in the Unified Register of Equipment;
  • form of an extract from the Unified Register of Equipment.

The National Bank of Ukraine decided to raise the accounting rate to 14.5% per annum. This decision is aimed at maintaining the stability of the foreign exchange market, keeping inflation expectations under control, reversing the inflation trend and gradually slowing inflation to the target of 5%. Containing price pressure will likely require further tightening of interest rate policy.

Inflation reached 12% in 2024, and price pressure persists in early 2025.

Thanks to the exhaustion of temporary factors of price pressure and the NBU's interest rate and exchange rate policy measures, inflation will slow down to 8.4% in 2025 and to the target of 5% in 2026.

Economic recovery will continue, although it will be limited due to the effects of the war.

International support will be sufficient for emission-free financing of the budget deficit and maintaining a stable situation in the foreign exchange market.

The key risk for inflationary dynamics and economic development remains the course of a full-scale war.

To maintain the stability of the foreign exchange market, keep expectations under control, and gradually bring inflation to the 5% target over the policy horizon, the NBU Board decided to increase the accounting rate by 1 percentage point to 14.5%.

The updated macro forecast of the NBU foresees a further increase in the discount rate to curb inflation.

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