New Bills of the Verkhovna Rada: One Step Closer to the Country's Restoration

On July 16, 2024, the Verkhovna Rada adopted in the second reading bills No. 11258 and No. 11259 after making amendments and additions. Both legislative acts concern the simplification of customs procedures for the importation of certain types of energy equipment, as well as mechanisms and components for demining.

The aim of these changes is to provide the country with the necessary resources for the restoration of the energy infrastructure, which has suffered significant destruction due to the protracted military conflict, as well as to create conditions for the development of social structures.

In the first draft, these bills provided for more favorable conditions for international freight transportation, concerning the exemption from value-added tax and import duties on mechanized mine clearance machines, components, aggregates, and other parts for them, as well as complete sets for their repair and production. The list also included tactical headsets and modern electronic warfare equipment capable of effectively countering threats from unmanned aerial vehicles. 

This step aims to enhance the combat readiness and safety of units operating in extremely challenging conditions, as well as to promote the integration of cutting-edge technologies in the defense and security sector of the country.

Energy Equipment That Has been Additionally Included in the Bill’s List

After analyzing the needs of the energy sector in Ukraine and detailed discussions, new categories of equipment that are critically important for ensuring energy independence and stability have been added to the updated list. Among them, it is worth highlighting:

• electric generators that can provide continuous electricity supply under critical conditions of its shortage in the system.
• equipment for generating solar and wind energy. Its application will not only restore energy capacities but also reduce dependence on traditional energy sources and provide environmentally friendly solutions for the future. A great initiative with a forward-looking perspective.
• batteries, without which, during power outages, it is simply impossible to manage. They provide the storage of electrical energy, which is critically important for stable operation. They are also a mandatory element for integrating into the system of renewable energy sources such as solar panels or wind farms.

However, these draft laws also have certain shortcomings. Firstly, there is the absence of small-capacity installations (less than 300 W) in the list. This decision is most likely justified by the fact that such installations are used solely to provide energy to private consumers, for powering household appliances or lighting in private households.

Additionally, lithium-ion batteries with a capacity of less than 200 Ah were not included in the list. Their main area of application is portable devices and electric vehicles. Since they do not always meet the requirements for industrial use in energy systems, where larger energy storage capacities and longer operating times are needed, they were also not added.

Including these items in the list could contribute to a broader understanding of alternative solutions for optimizing energy consumption and ensuring energy efficiency in various sectors. Moreover, in the absence of centralized electricity, private consumers purchase a large amount of energy equipment abroad. A simplified import system would be very appropriate for them.

Currently, the draft laws approved by the Verkhovna Rada of Ukraine are being prepared for submission for the President's signature. They can take effect after his signature and publication on official resources. Since the finalized texts of the legislative acts have not been made public after revisions, we will receive accurate information regarding each category of equipment and the entities that will be able to benefit from customs privileges after the signed acts are posted on the state portal of the Verkhovna Rada of Ukraine.

It is worth noting that these bills are critically important for the rapid reconstruction of Ukraine's energy sector, as well as for restoring the security of its territories. Currently, areas over 174,000 m² remain mined, and the energy sector is also in a difficult state. Simplifying the procedure for importing modern equipment will allow for more effective resolution of current issues and will serve as a foundation for implementing a long-term strategy for the recovery of the country's economy.

In the context of a complicated internal situation, Ukraine still demonstrates significant progress in reforming the energy sector. However, it constantly faces new challenges, as it is important not only to quickly restore infrastructure but also to ensure its resilience and efficiency in the long term. We hope that legislative initiatives will assist in this regard.

If you are looking for a reliable international logistics partner to help you find, purchase, and deliver energy equipment from abroad to Ukraine, contact us at DiFFreight Company. Our experience in international freight transportation enables us to provide clients with the best service that will exceed your expectations.