Ukrainian lawmakers had a productive second session week after the summer break, although not completely without setbacks.
They reviewed the state draft budget for 2017, declared the Russian State Duma illegitimate, eased business regulations
for small winemakers, granted Ukrainian cinematography some state support, and passed a bill on the energy market regulator.
At the same time, the Verkhovna Rada failed to vote on a special confiscation law that would allow the arrest of illegally obtained assets. (The draft budget for 2017 foresees Hr 10.5 billion ($405 million) being raised for the budget next year by this law).
Ukrainian civil activists also voiced concern over a bill they say will kill the civil service reform in the process of hiring the heads of oblast and district state administrations. The law was hastily approved by the responsible parliament committee on Sept. 23 so as to be ready for voting at second reading. If adopted, the law will help Ukraine’s President Petro Poroshenko “usurp power” via the local authorities,according to the activists from the Reanimation Package of Reforms.
Cinema state
Ukrainian parliament adopted a law on Sept. 22 that stipulates state support for filmmaking. It has been dubbed the Cinema State Law.
The legislation will open Ukraine up to foreign moviemakers, launching the system of moviemaking rebates. Under the bill, foreign producers will be able to claim back 25 percent of the production costs of a movie shot in Ukraine. The funds will be returned to filmmakers from the state budget.
The government will, in turn, raise the money for the rebates from taxes paid by cinema studios, and revenues from state
lotteries.
Foreign filmmakers will be able to claim the 25 percent rebate only if they spend at least Hr 8 million ($320,000)
on shooting in Ukraine.
According to Film.ua studio lawyer Yevheniya Durbol, the Ernst&Young auditing company has estimated that every euro that the state budget spends on paying rebates to filmmakers will bring back four euros to the state.
Energy sector
Ukraine’s parliament passed several bills on the energy sector on Sept. 22.
The Rada voted on legislation intended to set up an independent energy market regulator, the National Commission
for the State Regulation of Energy and Public Utilities (NCER).
Civil activists and experts welcomed the move, saying that the law will help to build the foundations for the effective functioning of the entire sector. However, the document still has loopholes that could allow the regulating body to be greatly influenced by the president.
The bill stipulates how the hiring commission that is recruit board members for the energy regulating body will be formed. According to the law, two members of the commission will be nominated by Ukraine’s president, two by parliament, and one
by the Cabinet of Ministers.
Lawmakers also passed amendments to the legislation on the gas reserve.
According to an explanatory note published on the Verkhovna Rada website along with the bill, the legislation will create the equal conditions for gas suppliers. Among other things, the law sets up a unified requirement for reserve gas stocks for gas
supply companies, at the rate of 10 percent.
In addition, a bill on the electricity market was passed at first reading.
Illegitimate State Duma
In a vote on Sept. 20, lawmakers voted to declare the Russian State Duma illegitimate.
The decision followed the holding of Russian parliamentary elections in the Russian-annexed Ukrainian territory of Crimea on Sept. 18. Yedinaya Rossiya (United Russia), a party that supports Russian President Vladimir Putin, won the most seats in the State Duma, although there is evidence of widespread vote rigging in the poll.
Ukrainian lawmakers urged the Security Council and the UN General Assembly, as well as the parliaments of foreign countries not to recognize the results of the Russian elections, and not to recognize any decisions by the Russian Duma as legitimate.
Small winemakers
With a law passed by Verkhovna Rada on Sept. 20, lawmakers allowed small enterprises that produce wines from
their own wine materials to sell their products in bulk without a special license.
A wholesale license costs Hr 500,000, and small winemakers were complaining that this was too expensive.
Kyiv Post staff writer Veronika Melkozerova contributed reporting to the story.
