The Cabinet of Ministers of Ukraine approved a draft amendment to the Law of Ukraine "On Accounting and Financial Reporting in Ukraine". The main innovation is the introduction of mandatory reporting on sustainable development for certain categories of enterprises, which is an important step towards European integration and increased business transparency.
Key changes and innovations:
1. Introduction of mandatory sustainability reporting.
For the first time, the legislation provides for the preparation, submission, and publication of sustainability reports for certain categories of enterprises. Such reports will contain information on the company's impact on the environment, social issues, labor relations, human rights, anti-corruption activities, as well as how these issues affect the enterprise's activities.
Information on sustainable development will be submitted according to European Sustainability Reporting Standards (ESRS) as a separate section of the management report. The submission will be in a single electronic format according to the taxonomy, which will simplify analysis and access to information.
It is expencted that sustainability reporting is submitted together with financial reporting and is an integral part of it.
The new reporting concerns:
- large enterprises and parent companies of large groups;
- medium and small enterprises whose securities are admitted to trading on a regulated capital market.
The new rules will be implemented in stages:
Large enterprises and parent enterprises of a large group with more than 500 employees will report in 2028.
Other large enterprises and parent enterprises of a large group – in 2029.
Medium and small enterprises with securities on the stock exchange – in 2030.
The introduction of sustainability reporting will create a level playing field for Ukrainian and European companies in international markets, help attract investment and increase competitiveness, and also contribute to the fulfillment of obligations under the Association Agreement.
2. Updating the criteria for determining enterprise categories.
The criteria for defining micro, small, medium and large enterprises have been updated to take into account inflation and the recommendations of the European Commission. This will reduce the administrative burden and avoid unjustified inclusion of enterprises in categories with stricter requirements.
3. Implementation of international standards.
State-owned enterprises and companies with more than 50% state ownership are required to maintain accounting and reporting in accordance with International Financial Reporting Standards (IFRS) and to prepare a management report. This will increase transparency and accountability of the public sector and facilitate access to international capital markets.
The Cabinet of Ministers of Ukraine approved the Strategy for Reforming the System of State Supervision (Control) in the Field of Environmental Protection, Rational Use, Reproduction and Protection of Natural Resources for the Period Until 2029 and approved the Operational Plan of Measures for its Implementation in 2025-2027.
The strategy includes the following steps:
- elimination of duplicative functions of state environmental supervision in different authorities, as well as the possibility of carrying out permitting and control functions by a single authority. All functions of state environmental supervision should be carried out by a single integrated state environmental control authority ;
- introduction of the principles of proportionality and unavoidable liability for damage to the environment: not just pay a fine, but eliminate the damage caused to the environment;
- transformation of the existing bodies of the State Environmental Inspectorate of Ukraine according to ecological-resource and ecological-technogenic principles;
- strengthening the material base of the industry, in particular by creating modern measuring laboratories. They will work according to European standards with a much wider range of research and will ensure the collection and proper storage of evidence;
- introduction of a rapid response service for calls in environmental control bodies – it will operate 24/7. And it is within the framework of pilot projects that we will test such a tool.
The Cabinet of Ministers of Ukraine approved new Rules for the Provision of Electronic Communication Services that will protect your personal space. Operators have received tools to combat spam calls and intrusive advertising, and they must technically implement them within a few months.
The rules will be introduced gradually to give operators time for technical improvements.
Advantages of the new rules:
- spam protection. Operators have the right to block numbers that are making mass calls without the subscriber's consent. Companies that plan to call customers must enter into a contract with the operator and use only the numbers specified in it;
- your expenses will be displayed in your personal account, you will be able to turn off paid entertainment and manage services yourself;
- no paid content service will be activated without confirmation;
- support for Ukrainians in the combat zone: SIM cards will not be blocked for non-payment, and a free communication package will be provided upon first login to the network;
- maximum limits for “negative balance” have been set. Large unexpected debts will remain a thing of the past;
- Internet transparency. The contract must contain the actual internet speed.
The Cabinet of Ministers of Ukraine approved a draft law on amendments to the state budget for 2025 to increase military spending.
The document provides for an increase in expenditures for security and defense sector bodies by UAH 412.4 billion by the end of the year.
The funds will be directed to the following areas:
- the Ministry of Defense – UAH 310.8 billion;
- the Ministry of Internal Affairs – UAH 84.1 billion;
- the Defense Intelligence of Ukraine – UAH 4.5 billion;
- the Ministry of Strategic Industry – UAH 4.5 billion;
- the Security Service of Ukraine – UAH 1.6 billion;
- Administration of State Guard of Ukraine – UAH 0.5 billion;
- the State Special Communications Service – UAH 64.5 million.
An additional UAH 20 billion is also provided for a reserve fund for unforeseen and urgent expenses.
An additional UAH 16.5 billion has been provided to finance a number of other urgent needs (for the Ministry of Digital Affairs, the Ministry of Education and Science, and the Ministry of Health).
The total amount of expenditures in the amendments to the 2025 state budget proposed by the Government is UAH 448.8 billion.
It is proposed to provide additional expenditures from the following sources:
1. Increase in revenue, in particular due to exceeding planned revenue indicators to the state budget – UAH 147.5 billion:
Personal income tax – UAH 56.0 billion;
- corporate income tax – UAH 23.8 billion;
- funds transferred to the NBU – UAH 20.3 billion;
- part of net profit and dividends – UAH 15.0 billion;
- excise duty on tobacco products imported into the customs territory of Ukraine – UAH 8.8 billion;
- funds transferred by the Deposit Guarantee Fund of Individuals – UAH 7.9 billion;
- levy on mandatory state pension insurance from individual business transactions – UAH 4.1 billion;
- administrative fines in the field of traffic safety – UAH 2.7 billion;
- other revenues – 8.9 billion hryvnias.
2. Cost savings – UAH 51.3 billion.
3. Increase in the volume of domestic borrowing – UAH 184.9 billion.
4. Reduction in the volume of payments for repayment of domestic public debt – UAH 65.1 billion.
The proposed solution will allow us to maintain financial stability while providing the necessary resources to effectively confront the aggressor.
The Cabinet of Ministers of Ukraine approved the Procedure for conducting cross-border consultations in the process of issuing integrated environmental permits. The document was developed by the Ministry of Environment to fulfill the requirements of the Law "On Integrated Prevention and Control of Industrial Pollution", which will come into force on August 8 of this year, and thus Ukraine will switch to a new ideology of industrial pollution prevention.
The procedure specifies that cross-border consultations will be held:
- according to the procedure of the country of origin – regarding the likely significant negative impact on the environment of foreign countries as a result of the operation of installations located in Ukraine;
- according to the procedure of the affected state – regarding the probable significant negative impact on the environment of Ukraine as a result of the operation of installations located in foreign countries.
