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Ukraine introduces significant measures to contain Covid-19

Ukraine introduces significant measures to contain Covid-19

Ukraine's government has introduced significant restrictions on containing COVID-19 that come into force today, March 17. Parliament this morning also adopted legislative initiatives aimed at improving healthcare measures and supporting businesses.

We would like to share with you the essential points of this Governmental Resolution:

  • A total ban on rail, air and bus intercity and interregional passenger transport services, as well as the suspension of the underground metro in Kyiv, Kharkiv, and Dnipro
  • A ban on domestic intercity and interregional carriage of passengers by motor transport and a limit of passengers traveling on trams, trolleybuses and road transport on intracity routes
  • International cargo transport has not been shut down, 49 out of 219 Ukrainian border crossings are open
  • All mass gatherings (cultural, entertainment, sports, social, religious, advertising and other) involving more than ten people are prohibited
  • Restaurants, cafes, bars, shopping and entertainment centers, fitness centers, cultural establishments must close. It is permitted to provide catering services with the use of targeted food delivery, provided that staff are supplied with individual protective means
  • Outlets selling food products, fuels, hygiene products, medicines, and medical products are permitted to stay open, as are those offering banking and insurance services
  • The Ministry of Health has suspended planned hospital surgeries, except for emergencies. The Ministry will re-profile medical facilities for admission and treatment of infected patients with severe symptoms
  • Hefty fines and arrest of citizens that violate travel restrictions and quarantines have been sanctioned. The Ministry of Internal Affairs and the National Police are authorized to control the implementation of this Government Resolution
  • Enterprises and organizations are advised to provide shift work for employees, and, if technically possible, to ensure work online

Ukraine's Parliament also adopted:

  • Law on amendments to the Tax Code and other Laws to support taxpayers:
    • Canceled penalties for violation of tax legislation for the period March 1 – May 31, 2020. Exclusions include violation of requirements for long-term life insurance contracts; alienation of property held in the tax lien without the consent of the controlling authority; violations of the rules of accounting, production, and circulation of fuel or ethanol in excise warehouses which are applied on a general basis; violation of accrual, declaration, and payment of value-added tax (VAT), excise tax, rent
    • Established moratorium on desk audits and actual inspections for period March 18 – May 31, 2020
    • Extended the deadline for filing the annual income and asset declarations until July 1, 2020
    • Rent on land is not accrued and paid for the period March 1 – April 30, 2020
    • Non-residential real estate owned by individuals or legal persons is not subject to real estate tax other than land for the period March 1 – April 30, 2020
    • Canceled payment of Single Social Contribution for several categories of payers and abolished penalties for late or incomplete payment and late filing of the report for the period March 1 – April 30, 2020
    • Established temporary disability financial assistance
    • Temporarily reduced requirements on the use of cash registers for the sale of medicinal products and medical devices
  • Law on prevention the occurrence and spread of Coronavirus Disease (COVID-19):
    • Simplifying the procedure of procurement for goods and services necessary for the prevention and treatment of coronavirus, but with mandatory reporting in Prozorro System
    • 100% prepayment for goods, works and services produced to prevent or combat coronavirus
    • Exemption from import duties and VAT on medicines or medical devices purchased to prevent or combat coronavirus but with mandatory reporting in Prozorro System
    • Giving the right to owners to change the mode of operation of bodies, institutions, and enterprises, in particular, regarding the reception and service of individuals and legal entities with the obligatory information about this population through websites and other communication means
    • Extension of terms of receipt and provision of administrative services
    • Prohibition of the state authorities to oversee and control planned activities in the field of economic activity during the implementation of measures related to the prevention and control of coronavirus
    • Setting an additional allowance of 150-200% for medical professionals working with people with COVID-19
    • Administrative responsibility for the unauthorized departure of the observation site
    • Amendments to Criminal Code and Code of Ukraine on Administrative Offenses on the intensification of measures for violation of observational rules
    • Expansion of timeline for submission declaration required under the Law on preventing corruption
  • Law on the accessibility of medical and healthcare products procurement:
    • Introducing Managed Entry Agreements with manufacturers of innovative and expensive original medicines and the possibility to negotiate and exclusively receive advanced medication at discounted prices directly
    • To make direct purchases from non-resident suppliers by importing such goods with VAT exemption, creation of a shortened registration procedure for medicines, exemption from import licensing, and the like

On a separate note, Minister of Health Ilya Yemets has approached business associations, asking for help to combat the COVID-19 pandemic in Ukraine. The full text of the letter is available in Ukrainian.

We are very grateful to members who submitted feedback and suggestions yesterday. You are welcome to continue to send your proposals, recommendations, or requests that you have to Ukrainian authorities that we will continue delivering on your behalf.

And a Happy St Patrick's Day to you. As they say, to succeed in life, you need three things: a wishbone, a backbone, and a funny bone. Stay healthy and safe during these challenging times.

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