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The Procedure for Reservation of Persons Liable for Military Service During Martial Law Was Amended

Ukraine
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The Cabinet of Ministers of Ukraine published Resolution No. 988 dated 16.08.2024, which amended the Procedure for Reservation of Persons Liable for Military Service during Martial Law (hereinafter – the “Reservation Procedure”). Key changes are:

1. Permanent establishments of non-residents operating in Ukraine and accredited (registered) in accordance with the law, registered with the regulatory authorities and recognized as critically important, shall submit a list of persons liable for military service for reservation to the Ministry of Economy.

2. Employees of enterprises which are provider of electronic communication services using mobile networks or provider of electronic communication services using fixed-line networks are subject to reservation, provided that such employees have fulfilled 100% of the working time standard during the last three months preceding the date of submission of the list, with the appropriate justification.

3. The number of persons liable for military service who hold positions in permanent establishments of non-residents operating in Ukraine (except for permanent establishments of foreign media) and are subject to reservation in accordance with the law shall not exceed 50% of the number of persons liable for military service as of May 18, 2024; in case of an increase in the number of persons liable for military service after May 18, 2024, the number of persons liable for military service shall be determined as of the date of submission of the lists.

4. The number of persons liable for military service who are employed in permanent establishments of foreign media and are subject to reservation in accordance with the law shall be:

  • in permanent establishments with no more than 15 employees liable for military service - all persons liable for military service;
  • in permanent establishments with more than 15 employees liable for military service, no more than 50 percent of the number of employees liable for military service.

If an enterprise, institution or organization employs one person liable for military service and is subject to reservation in accordance with the law, restrictions on the number of persons who are subject to reservation do not apply.

5. From now on, an enterprise can be recognized as critically important, if it is a provider of electronic communication services using mobile communication networks, the average monthly net income of which exceeds UAH 200 million according to the latest financial statements, or a provider of electronic communication services using fixed-line networks, the average monthly net income of which exceeds UAH 20 million according to the latest financial statements.

6. Enterprises can be recognized as critically important for meeting the needs of the Armed Forces of Ukraine, which produce unmanned systems (unmanned aerial systems, UAVs, unmanned ground/water (robotic) systems and weapons, military and special equipment, ammunition, their components and other defense products ordered by the State Special Communications Service and other state defense customers. Such enterprises are determined by the Ministry of Strategic Industries as critically important based on notifications from the State Special Communications Service and other state defense customers about the conclusion of a state contract (agreement) for the manufacture and supply of unmanned systems and other defense products with such enterprises within 5 business days from the date of receipt of the notification. Notifications are to be submitted to the Ministry of Strategic Industry of the State Special Communications Service and other state defense customers in paper and/or electronic form. The notification shall include: 

  • information about the notification (full name, USREOU code) 
  • information about the enterprise, institution, organization in respect of which the notification is submitted (full name, USREOU code, full name of the CEO) 
  • information on the conclusion of a state contract (agreement) for the manufacture and delivery of unmanned systems (unmanned aircraft systems, unmanned aerial vehicles, unmanned ground (robotic) systems, unmanned water (floating) systems), other defense products (date of conclusion, validity period)
  • if technically possible, the notification may be submitted through the Portal “Diia”.

By Yuna Potomkina and Anton Sintsov, Counsels, Asters

Ukraine Knowledge Partner

AVELLUM is a leading Ukrainian full service law firm with a key focus on Finance, Corporate, Dispute Resolution, Tax, and Antitrust.

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