Changes to the Reservation Procedure

The Cabinet of Ministers of Ukraine (“CMU”) by its Resolution No. 650 dated 5 June 2024 has:

1. Approved the Procedure for reservation of military-obliged persons during martial law through the Unified State Web Portal of Electronic Services (“Diia Portal”).
2. Updated the Procedure for reservation of military-obliged persons based on the list of military-obliged persons during martial law (“Reservation Procedure”), as well as the Procedure and Criteria for determining enterprises, institutions, and organizations that are critical for the operation of the national economy and provide vital services to the population in the exceptional period (“Criticality Criteria”).

1. New Procedure for Reservation via Diia Portal

The procedure will be available for reservation of persons employed with public authorities, enterprises that are critical to the needs of the Armed Forces of Ukraine, and companies that are critical for the operation of the national economy.

The exact launch date is still to be announced. Public authorities have one month to ensure technical feasibility of the reservation procedure. We expect it to be launched in July.

Reservation via Diia Portal will involve the following steps:

1. The Ministry of Economy prepares and maintains the Unified List of state authorities, other state bodies, local self-government bodies, enterprises, institutions, and organizations for reserving military-obliged persons. Only those state bodies and companies included in the Unified List will be able to apply this procedure.
2. The person in charge or an authorized person prepares the reservation lists via Diia Portal. The lists should be signed using a qualified electronic signature.
3. Online verification of the lists via the Unified State Register of Conscripts, Military-Obliged Persons, and Reservists (“Oberih Register”) to determine the availability of data on persons in the Oberih Register.
4. In case of a positive data verification, a military-obliged person is included in a special military register for the duration of the deferment. Starting from that moment, the person is considered reserved. The person in charge receives relevant notification in his/her account on Diia Portal. Information about the reservation will be displayed in the military registration document in electronic form.
5. The reservation will be denied if the information about the military-obliged person is not in the Oberih Register or there is no information that military-obliged person is employed with a government agency or company.

We are waiting for the first cases of successful reservations via Diia Portal and hope that feedback from businesses will continue to be taken into consideration.

2. Expansion of the Criticality Criteria

The seven criteria for determining companies that are critical for the operation of the economy remained unchanged.

Specialized UN agencies, foreign diplomatic missions, representative offices of international organizations, representative offices of donor agencies, and implementers of international technical assistance projects continue to be considered critical to the operation of the economy. Furthermore, the prosthetics and orthopedics service organizations that are directly involved in prosthetics and orthotics are now considered critical to the operation of the national economy.

For companies engaged in international passenger and/or cargo transportation, bus and urban electric transport carriers, it will suffice to meet only two of the seven criteria (instead of three) to be eligible for obtaining the criticality status.

However, companies that are “critical to the needs of the Armed Forces of Ukraine and other military formations in the exceptional period” also have the right to reservation. This status can be granted to companies that:

1. Manufacture goods, perform works and provide services to cover the needs of the Armed Forces of Ukraine and are included in the list of the Ministry of Defense.
2. Manufacture goods, perform works and provide services necessary to meet the needs of military formations (except for the Armed Forces of Ukraine) and are included in the relevant lists.
3. Provide training, retraining and advanced training for unmanned system operators, provide advanced training in electronic warfare and tactical medicine.
4. Are charitable organizations and produce/purchase goods, perform works and provide services necessary to meet the needs of the Armed Forces of Ukraine and other military formations, and are included in the list approved by the Ministry of Defense.

3. Other Changes in the Reservation Procedure

The allowed deferment period for the reserved employees may be up to 12 months.

When justifying the reservation, it is necessary to confirm that the military-obliged employees have updated their military registration information within 60 days as required by Law of Ukraine No. 3633-IX dated 11 April 2024.

In case of transfer of a military-obliged person to another work position, the deferment granted to him/her will remain valid.

Public authorities, companies that are critical for the operation of the economy, and companies that are important for the needs of the Armed Forces of Ukraine are allowed to reserve employees with critical military specialties.

We continue to monitor the latest developments in mobilization legislation that affect business during martial law and the practice of implementing innovations. Our team will continue to share useful information with you.

_{The Deloitte overview indicated above is solely informative by nature and should not be treated as an official advice without a separate engagement of our professionals.}

Return to the previous page: Tax & Legal Alerts 2024