Legal regulation of state and international aid in Ukraine during marital state: challenges for the economy and military production

Abstract

The article analyzes the legal regulation of state and international aid in Ukraine under martial law starting from March 2022. During the Russian aggression against Ukraine, the system of state and international aid underwent significant transformations. In the conditions of military aggression, compliance with the standard rules for the provision of aid has become almost impossible. Immediately after the start of active hostilities, the Antimonopoly Committee of Ukraine decided to suspend the implementation of the rules regulating state aid. This decision was formalized on 03/07/2022 and provided for the temporary suspension of consideration of new aid notifications, changes to already existing programs, as well as complaints and applications related to state aid. On March 15, 2022, the Verkhovna Rada of Ukraine, in turn, adopted legislative changes that effectively abolished the system of control over state aid during martial law.

This decision made it possible to quickly respond to economic challenges without waiting for lengthy administrative procedures. Assistance provided during martial law is automatically considered compatible with applicable law, and providers are exempt from reporting such programs. However, it is important to note that these are temporary measures that were adopted to provide operational support to the economy.

The European Union has also adapted its aid rules to support economic sectors affected by the war in Ukraine. The European Commission made changes to the Temporary Crisis Framework, which simplified the provision of aid in the member states of the European Union. Ukraine aims to meet these standards in the future, which has become a key part of its European integration aspirations.

While the suspension of aid poses potential risks to the long-term development of the economy, it also opens up opportunities for reform. As early as June 2022, the Ukrainian government adopted a plan to improve aid mechanisms aimed at adapting to European standards. This is an important step on the way to full integration of Ukraine into the legal system of the European Union.

To date, the Government of Ukraine and the Antimonopoly Committee of Ukraine continue to work on improving the legislative framework in the field of state and international aid. The new plan, approved by the government, provides for the creation of criteria for assessing the compatibility of state and international aid, monitoring of existing programs and measures to improve aid control. Special attention is paid to the harmonization of legislation with the norms of the European Union, which is provided for by the Association Agreement. Gaps in the current legislation, discovered during martial law, should be used as an incentive to build a sustainable system that will meet European requirements.

Despite the difficult circumstances of the war, Ukraine continues to move towards the implementation of European standards in the field of aid, which is an important part of preparations for joining the European Union. The task of the Government of Ukraine and the Antimonopoly Committee of Ukraine is to achieve significant results in this direction by 2025. This will give Ukraine the opportunity not only to restore the economy after the war, but also to ensure the stability of the state support system in the future.