President Volodymyr Zelensky has announced a significant policy shift aimed at bolstering Ukraine’s economy amidst the ongoing conflict. He has instructed government officials to prepare a long-term moratorium on business inspections, a move designed to protect entrepreneurs from undue pressure and foster a more favourable business environment. This initiative underscores the government’s commitment to economic resilience and growth.
Zelensky’s bold move to boost Ukraine’s economy
President Volodymyr Zelensky, speaking at the "State and Business Forum: From Dialogue to Partnership" in Kyiv on 27 June, unveiled plans for a long-term moratorium on business inspections. This directive aims to shield businesses from potential harassment by unscrupulous government officials, thereby fostering a more secure and predictable operating environment for entrepreneurs.
Key takeaways
- Long-term moratorium on business inspections: Zelensky has ordered the preparation of a decision to implement a long-term ban on business inspections.
- Protection for entrepreneurs: The moratorium is intended to safeguard businesses from pressure exerted by individuals in various government positions.
- Economic resilience: Zelensky emphasised that economic growth is crucial for Ukraine’s resilience, particularly during wartime.
- Expanded Council for Entrepreneurship Support: In addition to the moratorium, the government plans to expand the Council for Entrepreneurship Support to further cultivate entrepreneurship.
- Focus on domestic capabilities: The President highlighted the importance of Ukrainian manufacturing, logistics, services, developments, and investments.
- Previous regulatory changes: Following the full-scale invasion in early 2022, Ukraine temporarily suspended certain business regulations, including tax inspections. However, tax inspections for some businesses resumed in December 2023.
- Prosecutor General’s support: Ukraine’s new Prosecutor General, Ruslan Kravchenko, announced an audit of criminal cases related to businesses, aiming to protect businesses and ensure justice. He affirmed the Prosecutor’s Office’s dedication to safeguarding the rights of investors and businesses, while ensuring compliance with legal obligations and EU integration reforms.
Context of economic recovery
Ukraine’s economy has been severely impacted by the full-scale war, with a significant GDP drop of 29.1% in 2022. The proposed moratorium and other supportive measures are part of a broader strategy to aid recovery and stimulate growth. The government’s focus on fostering entrepreneurship and protecting businesses reflects a recognition of their vital role in the nation’s economic stability and future prosperity, even under challenging wartime conditions.
Sources
- Zelensky to impose long-term moratorium on business inspections in Ukraine, The Kyiv Independent.
