Budget Committee wants to keep multiple sanctions for arms manufacturers
13 January 13:28
The Budget Committee of the Verkhovna Rada of Ukraine has approved the government’s draft law No. 12245 “On Amendments to the Budget Code of Ukraine to Update and Improve Certain Provisions”. This was announced by the chairman of the committee Roksolana Pidlasa, Komersant ukrainskyi reports.
According to the MP, the draft law is “IMF-oriented,” that is, aimed at fulfilling the conditions for receiving the next tranche from the Fund. At the same time, on the initiative of MPs David Arakhamia and Anastasia Radina, it also includes provisions on sanctions for arms manufacturers.
These include disruptions in the supply of contracted weapons to the frontline or their delivery in inadequate quality. The document provides for the following sanctions for such offenses:
- for violation of the terms of the obligation regarding the quality (completeness) of goods (works, services), a fine of 20% of the cost is levied;
- a penalty of 0.1% of the value for each day of delay is levied for violation of the terms of fulfillment of the obligation, and for a delay of more than 30 days, an additional fine of 7% of the value is levied.
“The fines will continue to encourage suppliers to fulfill defense contracts on time and to a high standard, despite the abolition of the Commercial Code. The state must either receive quality weapons on time or compensation. Given that a single defense contract can cost tens of billions of hryvnias, we are talking about significant amounts,”
– pidlasa commented.
Читайте нас у Telegram: головні новини коротко
The present and future of sanctions for disrupting arms supplies
The document approved by Pidlasa’s committee essentially contradicts the letter and spirit of another bill, No. 6013, which was passed by the parliament as a whole last week, but the president has not yet had time to sign it. That document exempted from a triple fine companies that delayed the supply of weapons to the frontline.
Current legislation
Today, 3 fines are imposed simultaneously for violating the deadlines for supplying weapons to the frontline:
- 7% – a one-time fine per month of delay;
- 3% – a monthly fee for the use of money;
- 3% – a monthly penalty, namely 0.1% for each day of delay.
Draft Law No. 6013
Draft law No. 6013, namely the amendment to it by MP Halyna Yanchenko, abolishes one of these fines. Another draft law by the MP provides for the abolition of another fine.
“One of the three fines has been canceled. In the near future, we also need to review the changes to the Civil Code and cancel the second of the three fines so that the only, most effective fine remains. This is a daily fine. That is, it will be a progressive fine charged for each day of delay. It will encourage us to deliver the contracted weapons on time and not to run away from our obligations,”
– commented Yanchenko, the author of the initiative.
Contradiction
Document 6013 has already been adopted, although not signed. The new draft law 12245 is a governmental and IMF-approved bill, so the likelihood of its adoption is quite high. Therefore, some MPs and experts are already wondering how the two rules will work. Pidlasa seems to either not see any contradictions in this or hopes that her rule will work.
