THE NEW PROCEDURE FOR RESERVATION OF PERSONS LIABLE FOR MILITARY SERVICE HAS FINALLY BEEN ADOPTED

The Cabinet of Ministers of Ukraine at its regular meeting approved the new procedure for reservation of persons liable for military service for the period of mobilization and wartime, which came into effect on January 31, 2023.

In addition to the Procedure for the reservation of persons liable for military service on the list of persons liable for military service during martial law, the Procedure and Criteria for identifying enterprises, institutions and organizations being critically important for the functioning of the economy and ensuring the activity of the population in a special period have been approved as well.

It is provided that directors and their deputies, as well as 50% of the number (as of the date of the list submission) of employees who are liable for military service are subject to reservation if working:

- at enterprises, institutions and organizations that have been assigned mobilization tasks (orders), in the event when it is necessary for performing the established mobilization tasks (orders);

- at enterprises, institutions and organizations that produce goods, perform work and provide services necessary to meet the needs of the Armed Forces of Ukraine and other military formations;

- at enterprises, institutions and organizations that are critically important for the functioning of the economy and ensuring the activity of the population in a special period.

In addition, the procedure and grounds for making a decision on determining an enterprise as critically important for the functioning of the economy and ensuring the activity of the population in a special period have been established.

In particular, an enterprise can be defined as critically important for the functioning of the economy and ensuring the activity of the population in a special period if it meets three or more of the following criteria:

1) the total amount of taxes, fees, payments to state and local budgets (except for customs) exceeds the equivalent of EUR 1.5 million;

2) the amount of revenues in foreign currency (except for credits and loans) exceeds EUR 32 million;

3) strategic importance for the economy and security of the state, in accordance with the resolution of the Government No. 83 as of March 04, 2015 No. 83;

4) the importance of the enterprise for the national economy branch or for meeting the needs of the territorial community (the criteria are determined by the central authorities or the regional military administrations);

5) absence of debt for the USC payment;

6) the amount of the average wage of the insured persons-employees in the enterprise for the last calendar quarter - not less than the average wage for the region for the reporting period;

7) the enterprise is a resident of Diya City.

Confirmation of the status of a critically important enterprise for the functioning of the economy and ensuring the activity of the population in a special period is carried out by the enterprise at least once a year.

(Resolution of the Cabinet of Ministers of Ukraine as of January 27, 2023 No. 76 "Certain issues of implementation of the provisions of the Law of Ukraine "On Mobilization Training and Mobilization" was published in the official governmental newspaper "Uryadovy Courier " on January 31, 2023).

Should you have any questions with respect to above or require any additional information, please do not hesitate to contact Mr. Kyrylo Kazak (k.kazak@kpdconsulting.com.ua). We will be pleased to assist You. The information contained in this overview is not intended to provide legal advice and should not be relied on or treated as a substitute for specific advice concerning individual situations.