Military personnel in Ukraine may be allowed to open businesses and work part-time: what the draft law provides

In Ukraine, it is proposed to allow military personnel to engage in entrepreneurial activities and receive additional income while serving. The Verkhovna Rada has registered draft law No. 16189, which provides for the relaxation of anti-corruption restrictions for certain categories of military personnel.

Why do they want to allow military personnel to earn additional income

The authors of the draft law note that the current restrictions do not always take into account the specifics of military service during martial law.

In particular, military personnel who are not directly in combat zones may need additional sources of income to meet their own needs and support their families.

In addition, the opportunity to work in a civilian specialty will allow mobilized personnel to maintain professional skills, maintain business contacts, and not lose their qualifications.

The explanatory note also emphasizes the shortage of qualified workers in various sectors of the economy. Involving military personnel in additional professional activities, according to the initiators, could partially help solve this problem.

What restrictions are in effect now

According to Article 25 of the Law of Ukraine “On Prevention of Corruption”, military officials who are subject to the restrictions established by law cannot engage in entrepreneurship or other paid activities.

Exceptions are provided for teaching, scientific and creative activities, medical practice, as well as instructor and refereeing practice in sports.

The legislation also limits the participation of such persons in the management bodies of commercial enterprises.

Violation of the relevant requirements provides for administrative liability in accordance with Article 172-4 of the Code of Ukraine on Administrative Offenses.

In particular, the fine for the first violation is from 300 to 500 non-taxable minimum incomes of citizens with confiscation of the income received.

In case of repeated violation within a year, the fine may be from 500 to 800 non-taxable minimum incomes. It also provides for deprivation of the right to hold certain positions or engage in relevant activities for a period of one year.

Who may be allowed to engage in business

The draft law No. 16189 proposes to amend the provisions of the Law “On Prevention of Corruption” and the Code of Ukraine on Administrative Offenses.

The new rules are planned to be extended to servicemen of the Armed Forces of Ukraine, the National Guard, the State Border Service, the Main Intelligence Directorate of the Ministry of Defense, the State Special Transport Service and other military formations created in accordance with the legislation.

The initiative provides for the possibility of conducting entrepreneurial activities, working part-time and participating in the management of commercial enterprises.

At the same time, the relaxation of anti-corruption restrictions will not mean the release of servicemen from performing their official duties.

Will it be possible to combine business with military service

The explanatory note to the bill states that additional paid activities should not contradict the interests of military service.

Servicemen will continue to be obliged to observe military discipline, carry out orders of the command and other requirements related to their legal status.

Thus, the proposed changes will primarily concern the possibility of legally receiving additional income, and not a revision of the main duties of the military.

When the new rules may enter into force

The bill provides that, if adopted, the new provisions will enter into force the day after the official publication of the law.

The Cabinet of Ministers of Ukraine will have three months to bring subordinate regulatory legal acts into compliance with the adopted changes.

The authors of the initiative expect that its implementation will contribute to improving the financial situation of military personnel, increasing tax revenues, and preserving the professional potential of mobilized citizens.