Ukraine Moves Closer to EU Standards in Financial Services and Entrepreneurship

Today, Ukraine's legislation is more closely aligned with EU standards, especially in financial services and entrepreneurship. The Ministry of Finance has been working hard to harmonize national laws with those of the EU, focusing on areas like money laundering prevention and financial reporting.

During a recent meeting with representatives from the European Commission's Directorate General for Neighborhood Policy and Enlargement Negotiations (DG NEAR), First Deputy Minister of Finance Denys Ulyutin shared these updates. The meeting, chaired by Vice Prime Minister and Minister of European and Euro-Atlantic Integration Olga Stefanishyna, was part of the preparations for upcoming bilateral discussions in the official screening process.

In his speech, Denys Ulyutin congratulated the participants on completing the explanatory meetings between the European Commission and Ukraine. He also expressed gratitude for the EU's ongoing financial support, stating, "Since the full-scale invasion by Russia, the EU has provided Ukraine with nearly 32 billion euros in direct budgetary support, including 6 billion euros this year alone. The Ministry of Finance is committed to aligning Ukraine's customs system, customs laws, and tax regulations with those of the EU, as well as other relevant areas."

Reforms in Customs and Taxation

In the customs sector, key initiatives include:

• Preparing for the second reading of a draft law to amend the Customs Code of Ukraine, aligning it with the EU Customs Code.
• Developing a new Customs Code for Ukraine.
• Advancing the Authorized Economic Operator (AEO) program.

In the field of taxation, the Ministry is working on legislative amendments to align the Tax Code of Ukraine with EU standards. Efforts include:

• Addressing double taxation and non-taxation risks concerning value-added tax.
• Adjusting excise tax rates on tobacco products to meet EU minimum levels, considering the impact of inflation.

Denys Ulyutin emphasized, "We have taken significant steps in public finance management, such as restoring medium-term budget planning, approving the medium-term strategy for public debt management for 2024-2026, and endorsing the Roadmap for public investment management reform. Our goal is to harmonize our laws with European standards to accelerate our EU accession."

Next Steps

The European Commission has recently completed explanatory sessions with Ukraine and Moldova, both candidates for EU membership. Starting in July 2024, the European Commission will begin the next phase of screening—bilateral meetings with candidate countries. During these meetings, Ukraine will showcase the progress it has made in aligning its national legislation with EU standards across various sectors.

Through these reforms, Ukraine is steadily moving towards full integration with the European Union, reflecting significant progress in its legislative alignment.