News digest | October 2025

Corporate Law Practice 

The Government has approved a compensation and insurance mechanism for businesses in the event of war-related risks 

On 24 October 2025, the Cabinet of Ministers of Ukraine adopted a resolution establishing a new state mechanism to support businesses in cases where property is damaged or destroyed due to military actions. The mechanism consists of two main components: direct compensation for businesses operating in front-line regions and partial reimbursement of insurance premiums for businesses across the entire territory of Ukraine. 

For enterprises located in high-risk areas (including Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions), compensation is provided for the cost of restoring or replacing property, up to UAH 10 million. If a business has already received assistance from the state or local budget, the amount of compensation will be reduced accordingly. 

At the same time, insurance-based support is introduced nationwide: businesses conclude insurance contracts against war-related risks, pay the premium, and the state then reimburses a portion of this premium (up to UAH 1 million per year) to reduce the effective tariff, in some cases down to 1% of the insured amount. 

This initiative is aimed at enhancing the resilience of Ukrainian businesses in wartime conditions, creating more predictable conditions for recovery and investment, and becoming part of state policy to support production and safeguard economic infrastructure. 

The Government approved the procedure for restricting access to data on defence industry enterprises 

On 4 October 2025, Resolution No. 1257 adopted by the Cabinet of Ministers of Ukraine on 3 October 2025 entered into force. The resolution establishes the rules for temporarily restricting access to information about enterprises, institutions, and organisations of the defence industry. 

According to the document, enterprises deemed critical to the economy or defence may submit an electronic application to the Ministry of Defence of Ukraine requesting to restrict access to their data in public electronic registers – including information such as identification codes, the list of registers, and providers of information resources. 

Within three working days of receiving the application, the Ministry must send an electronic instruction to the communication service provider to ensure the restriction of access to the specified information. The publication of such data may only be restored under the conditions defined in the procedure. 

This change is being implemented to strengthen the protection of defence industry production facilities under martial law and to prevent unauthorised access to critical data – particularly data that could be used for sabotage or attacks. 

The Government has opened access for manufacturers to technologies of the Ministry of Defence of Ukraine – an important step for the defence sector 

On 13 October 2025, the Cabinet of Ministers adopted a resolution introducing an experimental mechanism for transferring technologies developed within the Ministry of Defence system into serial production. 

Under the new approach, manufacturers are granted the right to apply state-developed technologies in the production of military equipment under clearly defined conditions and criteria, while the technologies remain the property of the state. 

The Minister of Defence emphasised that this decision will accelerate the scaling of proven designs, expand the range of armaments, and involve international partners in technology improvement. 

The mechanism provides for the participation of Ukrainian enterprises that have defence contracts, are critically important to the Armed Forces, or are included in the register of state defence suppliers. 

The new framework also establishes conditions for transparent procurement and state quality control, supporting the modernisation of industry and strengthening the country’s defence capability. 

A “Bank for Banks” to start operating: Law on new form of investment adopted 

On 8 October 2025, the Verkhovna Rada adopted in the second reading Draft Law No. 11238 “On the National Development Institution”. This document establishes an institution – a “bank for banks” – which will attract funds from international donors and private investors and direct them through partner banks into the real sector, particularly supporting small and medium-sized enterprises, relocated businesses, high-risk projects, and reconstruction efforts. 

The law provides for the reorganisation of the existing Entrepreneurship Development Fund, on the basis of which the National Development Institution will be established. The new financial instruments include credit and portfolio guarantees, preferential credit lines, factoring, and other risk finance tools channelled through commercial banks. 

The institution will operate on the model of foreign development banks, not competing with the banking market but rather filling its gaps. In this way, the state assumes part of the risks and facilitates business access to finance in critical areas of the economy and reconstruction. 

Tax Law Practice | Tax Alert 

Plans to expand the list of taxes for subsoil users and update the classification of timber in tax legislation 

October 23, 2025 – The Ministry of Finance of Ukraine has published a draft law “On Amendments to the Tax Code of Ukraine Regarding the Improvement of Certain Provisions of Legislation”. 

In particular, the draft law provides for the addition of environmental tax and land tax to the list of taxes payable under production-sharing agreements for the extraction of minerals, except for hydrocarbon raw materials. 

It also proposes changing the classification of firewood: 

• from “firewood used for technological needs” to “firewood for industrial use”; 

• from “firewood unsuitable for industrial processing (fuel wood)” to “firewood for non-industrial use”. 

For state-owned banks, plans call for increasing the income tax to 40% 

October 20, 2025 – A draft law No. 14097-1 “On Amendments to the Tax Code of Ukraine Regarding the Specifics of Taxing Banks with Corporate Income Tax in 2026” was registered in the Verkhovna Rada of Ukraine. 

In particular, the draft law provides that: 

• for 2026, an increased corporate income tax rate of 40% will be established for state-owned banks; 

• the accrual and payment of tax for previous reporting periods of 2026 (quarter, half-year, three quarters) at the base rate that was in effect before the entry into force of Law No. 4015-IX shall not be considered a violation of the rules for accrual and payment of tax; 

• based on the results of 2026, state-owned banks shall not reduce their financial results before taxation by the amount of the negative value of the taxable object of previous tax (reporting) years. 

The aforementioned draft law is an alternative to another draft law on increasing income tax for banks, which we wrote about earlier. 

Changes in the procedure for calculating the single tax for land in combat zones 

October 22, 2025 – A draft law No. 14142 “On Amendments to Article 292-1 of the Tax Code of Ukraine Regarding Clarification of the Procedure for Granting Tax Relief for Land Plots Subject to the Status of Potentially Contaminated with Explosive Objects” was registered in the Verkhovna Rada of Ukraine. 

In particular, the draft law proposes to clarify that the absence of surveys of land plots contaminated with explosive objects or potentially dangerous due to possible contamination, located in areas of hostilities or temporarily occupied by the russian federation, as well as the failure to enter data on such plots into the State Land Cadastre, is not considered a basis for calculating the single tax for taxpayers in the fourth group. 

An update to the transport tax declaration form is planned 

October 16, 2025 – A draft order of the Ministry of Finance of Ukraine “On Amendments to the Transport Tax Declaration Form” was published on the web portal of the State Tax Service of Ukraine. 

The proposed new form of the reporting document, to be introduced, provides for the possibility of declaring benefits established by local authorities. 

It is proposed to change the procedure for exchanging electronic documents with controlling authorities 

October 17, 2025 – The State Tax Service of Ukraine published a draft order of the Ministry of Finance of Ukraine “On Amendments to the Procedure for Exchanging Electronic Documents with Controlling Authorities” on its web portal. 

In particular, the document provides for the following changes: 

• individuals are automatically considered subjects of electronic document management and have the right to submit electronic documents to controlling authorities exclusively using a qualified or enhanced electronic signature and seal (if available). This introduction does not apply to self-employed persons who, in accordance with tax legislation, are required to submit reports and other electronic documents by means of electronic communication in electronic form; 

• a director or self-employed person who is required to submit reports in electronic form must sign such documents with their own qualified electronic signature, the certificate for which has been previously submitted to the controlling authority together with the first electronic document or notification of the provision of information regarding this signature; 

• to grant the right to sign electronic documents to other persons to whom the right to sign has been delegated, the director and self-employed person shall notify the controlling authority, with which the author of the electronic document is registered, of such persons by sending a notification of the provision of information regarding a qualified or advanced electronic signature in electronic form. 

Amendments to accounting legislation prepared 

October 22, 2025 – The Ministry of Finance of Ukraine published a draft order “On approval of amendments to certain regulatory and legal acts of the Ministry of Finance of Ukraine on accounting”, namely: 

• Instructions on the application of the Chart of Accounts, approved by Order of the Ministry of Finance of Ukraine No. 291 dated November 30, 1999. 

In particular, according to the amendments to the aforementioned regulatory act, enterprises are granted the right to create additional third-order accounts within the sub-accounts independently (second order) of synthetic accounts (first order) for accounting for assets that have suffered as a result of armed aggression by the russian federation – damaged, destroyed, stolen or lost control over. Such accounts may reflect the relevant assets, accrued depreciation (amortisation), as well as calculations of damages and losses incurred, until a decision is made to write them off in accordance with the procedure established by law. 

A new sub-account 073 “Unrecovered losses from damage and losses caused by the armed aggression of the Russian Federation” has been introduced as part of the off-balance sheet account 07 “Written-off assets”. 

Subaccount 073 will be used to record information on the amounts of losses caused by the armed aggression of the russian federation, which have been assessed (the amount has been determined) in accordance with the procedure established by law for further compensation. The amounts of losses in sub-account 073 will be reduced after receiving a decision on the reimbursement of funds with simultaneous reflection of accounts receivable and income in the amount to be reimbursed. 

• National Accounting Regulation (Standard) 7 “Fixed Assets”, approved by Order of the Ministry of Finance of Ukraine No. 92 dated April 27, 2000. 

In particular, the amendments specify that the notes to the financial statements also include the initial (revalued) cost of fixed assets for which the useful life and liquidation value have been revised for their further use (operation). 

• Regulations on the inventory of assets and liabilities, approved by Order of the Ministry of Finance of Ukraine No. 879 dated September 2, 2014. 

The amendments to the Regulations stipulate that a complete inventory covers all assets and liabilities of the enterprise, regardless of their location. It includes items transferred for hire or lease, as well as those undergoing reconstruction, modernisation, conservation, repair, in stock or reserve, regardless of their technical condition. 

In addition, assets and liabilities reflected in off-balance sheet accounts are subject to inventory. In particular, these are valuables that are temporarily in use, at the disposal or in storage of the enterprise, although they do not belong to it, and contingent assets and liabilities – unforeseen assets and liabilities. 

Mandatory verification also includes strictly accountable forms and other assets. 

 Litigation Practice 

Ukraine allows temporary deferral from mobilization for men not on the military register or wanted by TCCs 

On October 9, Members of Parliament adopted a law that allows the reservation (deferral from military service) of men who are not registered for military duty or are wanted by Territorial Recruitment and Social Support Centers (TCCs). The law (draft No. 13335) introduces provisions that make it possible to temporarily reserve such individuals. 

According to the draft law, employees of critically important enterprises and those belonging to the defense-industrial complex may be reserved even if they: 

• are not registered for military service; 

• lack or have improperly issued military registration documents; 

• have not updated their personal data with the TCC; 

• are wanted for violations of military registration rules or legislation on defense, mobilization training, and mobilization. 

Such employees may be granted a reservation for forty-five calendar days from the date of concluding an employment contract, regardless of how many other employees have already been reserved within the company. However, this reservation may be granted only once per year and does not exempt the employee from liability for breaching military registration rules. 

At the same time, it should be noted that, according to information circulating publicly, the reference to critically important enterprises was reportedly removed from the bill before its final vote. This means that in the final version, the new reservation rules might apply only to employees of defense-sector. 

Restoration of deadlines for filing labor disputes: what the draft law provides 

The Verkhovna Rada of Ukraine has registered Draft Law No. 14146, “On Amending Article 234 of the Labor Code of Ukraine Regarding the Court’s Power to Restore Missed Deadlines for Valid Reasons.” 

The draft law aims to enhance the protection of employees’ labor rights by allowing courts to restore missed deadlines for filing labor-related claims in cases involving changes in the organization of production and labor, such as the liquidation of an enterprise. 

The bill proposes to supplement Article 234 of the Labor Code with a new part two, under which the cancellation of an enterprise’s liquidation after an employee’s dismissal under paragraph 1 of part one of Article 40 of the Labor Code shall be recognized as a valid reason for missing the deadline to apply to the court. 

Accordingly, the proposed amendment would enable an employee to seek the restoration of a missed filing deadline if it was caused by organizational changes in production or labor processes, including the liquidation of the enterprise. 

The adoption of this draft law is expected to improve the effectiveness of labor rights protection and ensure fair resolution of disputes in cases where the liquidation of enterprises is later revoked. 

Crossing Ukraine’s state border during martial law: conscripts must present documents confirming exemption from mobilization – Supreme Court 

To cross the state border of Ukraine during martial law, a male citizen subject to military duty, whose close relative died while performing tasks related to national security and defense, repelling and deterring the armed aggression of the Russian Federation, must present not only a passport but also documents confirming exemption from mobilization. 

These may include a military ID bearing a mark of exemption from mobilization or a certificate issued by the Territorial Recruitment and Social Support Center (TCC) confirming such exemption. 

This legal position was set out by the Cassation Administrative Court within the Supreme Court of Ukraine in its ruling of 11 August 2025 in case No. 640/21967/22. 

In this case, the plaintiff challenged the State Border Guard Service’s refusal to allow him to leave Ukraine and the temporary restriction on his right to travel abroad, citing the death of his father, a serviceman. The plaintiff argued that under Article 23 of the Law of Ukraine “On Mobilization Preparation and Mobilization,” he is not subject to conscription during mobilization. 

The first-instance court partially satisfied the claim, but the court of appeal reversed that decision and dismissed the claim, finding that the plaintiff had not provided documents confirming deferral or exemption from mobilization, nor any military registration documents. Therefore, the refusal to cross the border was deemed lawful. 

The Cassation Administrative Court of the Supreme Court dismissed the plaintiff’s cassation appeal and upheld the appellate court’s decision. 

The Supreme Court emphasized that, in order to cross the state border, the plaintiff was required to submit documents confirming his exemption from mobilization, considering that his father had died while performing duties related to national security and defense in the Donetsk and Luhansk regions. 

Such proof may consist of: 

• a military ID (or temporary military certificate) containing a mark on exemption from mobilization — one of the principal documents confirming a person’s military registration status; or 

• a certified certificate from the district Territorial Recruitment and Social Support Center (TCC) confirming that the person belongs to a category of citizens not subject to travel restrictions outside Ukraine during martial law. 

The Court noted that the plaintiff failed to provide any such documents, either at the time of attempting to cross the border or during court proceedings, to substantiate his right to leave Ukraine under the current legal regime. 

Parliament intends to simplify the confirmation of representation in commercial courts 

The Verkhovna Rada of Ukraine has registered Draft Law No. 14157, “On Amending Article 56 of the Commercial Procedure Code of Ukraine Regarding the Confirmation of the Authority of a Person Through Whom a Legal Entity Acts in Court.” 

The aim of the draft law is to streamline the procedure for confirming the authority of a legal entity’s representative in commercial proceedings. 

The bill proposes to supplement part 3 of Article 56 of the Commercial Procedure Code of Ukraine with a provision stipulating that information on the head (director) or another authorized person, as recorded in the Unified State Register (USR), shall constitute official and sufficient confirmation of that person’s authority to act on behalf of the legal entity in court under the principle of self-representation. 

If adopted, the law will relieve courts from requiring legal entities to submit additional documents — such as copies of charters, appointment orders, or minutes of meetings — to confirm authority to participate in proceedings. 

This legislative change is expected to reduce administrative burdens, expedite case consideration, and ensure consistency in judicial practice. 

Creditors from the aggressor state cannot have their claims recognized in bankruptcy proceedings – Supreme Court 

Monetary claims submitted by creditors in bankruptcy proceedings for the purpose of evading sanctions or in violation of the moratorium established by Cabinet of Ministers Resolution No. 187 of 3 March 2022 “On Ensuring the Protection of National Interests in Anticipation of Future Claims by the State of Ukraine in Connection with the Armed Aggression of the Russian Federation” are not subject to recognition. 

This legal position was expressed by the Commercial Cassation Court within the Supreme Court of Ukraine in its ruling of 17 June 2025 in case No. 909/130/24. 

The commercial court had opened bankruptcy proceedings against a limited liability company (LLC) on the basis of applications filed by the initiating creditors. During the preliminary hearing, it was established that the LLC was a person connected with the aggressor state and therefore fell under the scope of Resolution No. 187, including subparagraph 2 of paragraph 1, which prohibits the disposal of property, participation rights, and claims. 

The initiating creditors’ monetary claims were not recognized, as they were based on void transactions and resulted from concerted actions with the debtor aimed at diverting assets or funds through the bankruptcy procedure to the benefit of the debtor’s beneficial owners – citizens of the Russian Federation, thereby circumventing sanctions and violating the moratorium imposed by Resolution No. 187. 

As no other creditor claims were filed and no evidence of the debtor’s insolvency was provided, the commercial court, supported by the court of appeal, closed the proceedings under paragraph 8 of part 1 of Article 90 of the Bankruptcy Code of Ukraine (BCU). 

The Commercial Cassation Court of the Supreme Court upheld this decision. The Court emphasized that since the introduction of the moratorium by Resolution No. 187, creditors specified therein are restricted in exercising their right of claim, including through judicial proceedings. The moratorium creates a special legal regime that affects the performance of obligations but does not terminate them. 

The provisions of Resolution No. 187, in conjunction with the Bankruptcy Code of Ukraine, preclude the recognition of monetary claims by creditors directly or indirectly connected with the aggressor state who have engaged in intentional and bad-faith actions. 

Accordingly, despite the formal grounds for filing a bankruptcy petition against the LLC, the established facts of bad-faith conduct aimed at evading the restrictions of Resolution No. 187 make it impossible to recognize such creditors’ monetary claims under the Bankruptcy Code of Ukraine. 

Criminal Law Practice 

Excessive duration of criminal proceedings constitutes an independent ground for compensation of non-pecuniary damage: the Supreme Court’s position 

The Supreme Court, comprising a panel of judges of the First Judicial Chamber of the Civil Court of Cassation, in its judgment of 17 September 2025 in case No. 461/6351/23, recognised the right of a person to compensation for non-pecuniary damage caused by unlawful criminal prosecution. 

The criminal proceedings lasted over 10 years and were closed by the prosecutor’s decision due to the absence of a criminal offence. 

The Supreme Court established that such a duration of criminal proceedings against the claimant beyond a reasonable doubt resulted in his moral suffering caused by the uncertainty of the disputed legal relations, the necessity to attend pre-trial investigation authorities, and the inability to carry out ordinary daily activities. It constitutes grounds for compensation of non-pecuniary damage in the amount and procedure established by the Law of Ukraine “On the Procedure for Compensation of Damage Caused to a Citizen by Unlawful Actions of Bodies Engaged in Operational and Investigative Activities, Pre-trial Investigation Bodies, the Prosecutor’s Office and the Court”. 

Moreover, the court emphasised that in cases concerning compensation for non-pecuniary damage caused by a state authority or local self-government body, it is necessary to proceed from the presumption that non-pecuniary damage was caused to the claimant by the defendant, and that it is the defendant’s obligation to rebut such presumption. 

The media have no right to mention the name of a suspect or accused person, according to the Supreme Court 

The Civil Court of Cassation within the Supreme Court, in its judgment of 10 September 2025 in case No. 757/19417/23, clarified that the use of the name of a person who is suspected or accused of committing a criminal offence is permissible only after a conviction judgment comes into force, regardless of the public status of such person or public interest in the information. 

The court indicated that for the purpose of restoring the violated right to a name, which presupposes restoring the ability of a person to freely, at their own discretion, determine their behaviour in the sphere of private life, taking into account the manner of its violation through the internet and the consequences caused by this violation, the claimant has the right to demand that the defendant cease actions involving the use of their name that violated their personal non-property right by removing the reference to their own name from the publication. 

At the same time, the court drew attention to Part 7 of Article 296 of the Civil Code of Ukraine, which provides for the use of the initial letter of a natural person’s surname in mass media and literary works, and that such use does not constitute a violation of their rights.