Deregulation of the economy

According to Ukrainian legislation, the maximum number of regulatory instruments should not exceed 120. However, in reality, entrepreneurs may face hundreds of permits, licenses, approvals, certificates, conclusions, etc. Their exact aggregate number cannot be named due to the shortcomings of the regulatory field.

In January 2023, the authorities finally began work on reducing ineffective and unnecessary regulatory norms. An Interdepartmental Working Group on Deregulation was established, in which the public sector is actively involved.

The group has already recommended canceling 45% of the instruments that are under the competence of the Ministry of Environment and Natural Resources, another 45% are proposed to be updated and harmonized with the current legislation.
 
Analysis of the regulatory field in this field reflects general trends — lack of demand for some tools, obsolescence, loss of relevance, duplication. The State Tax Service and the State Customs Service are also next in line, on which the degree of economic freedom in Ukraine largely depends.
 

Depriving Ukrainian business of the need to obtain numerous licenses, permits, declarations, etc. will allow it to work more productively. Also, reducing the number of regulatory tools and digitalizing the few that will remain will significantly reduce the risk of corruption.
 

Non-optimized legislation regarding state regulatory instruments is a form of administrative pressure and hinders entrepreneurial activity. On the other hand, ease of doing business and economic freedom lead to increased domestic and foreign investment and the formation of a favorable climate for economic growth.