The Business Ombudsman Council continues to protect entrepreneurs, defend their rights in relations with state authorities, and develop systemic recommendations to improve the business climate. In the second quarter, we focused both on resolving individual complaints and addressing systemic issues that affect the economy as a whole. The Council also prepared for international events and joined the launch of a pilot project on the implementation of the Administrative Procedure together with the Lviv City Council.
Q2 Overview
In April–June 2025, the Business Ombudsman Council received 208 complaints, closed 94 cases, and achieved a financial impact of UAH 275 million. The majority of complaints concerned tax issues (52%) and law enforcement actions (14%).
BOC 10 Years: Mission Possible
The Council celebrated its 10th anniversary, summarizing more than 9,000 resolved cases and UAH 28.4 billion saved for businesses. Over the years, the institution has transformed from an initiative into a powerful mediator between the state and business, capable of resolving both individual complaints and systemic problems. We are grateful to the EBRD, the European Union, donor countries, and the OECD for their ongoing support, which helps us grow and strengthen institutional capacity.
On the Road to URC
The Policy & Recovery team presented the results of the study “Ukraine at War: Business Environment Transformation and Investment Prospects” Over 60% of foreign investors are ready to invest up to USD 5 million in Ukraine, and 30% – up to USD 100 million. The main barriers include the war, permitting procedures, access to justice, and the lack of political risk insurance. The BOC is actively working on recovery-related cases and preparing for the Ukraine Recovery Conference in July.
VAT System Issues
Monitoring the implementation of recommendations regarding the SMKOR system showed a significant decrease in the blocking of tax invoices – in June, the suspension rate was a record low of 0.36%. This indicates the gradual implementation of changes and greater openness of the State Tax Service to dialogue with business. At the same time, the Council emphasized that recommendations concerning SMKOR remain crucial for fixing the system.
Administrative Procedure
The Council joined the practical implementation of the Law on Administrative Procedure. A pilot project “Lviv: Implementation” was launched together with the City Council and EU4PAR. The goal is to create mechanisms for pre-trial dispute resolution and reduce administrative pressure on business.
Systemic Business Issues
During the reporting period, the Council worked on a number of systemic business problems:
- Medical gauze – despite a Supreme Court ruling confirming the right to 7% VAT, customs authorities continue to deny preferential clearance, while the Ministry of Health remains unresponsive. This poses a risk of shortages of bandaging materials.
- Hazardous waste – the Ministry of Environment unjustifiably denies companies permits, blocking their operations and creating corruption risks.
- Food flavorings with piperonal – the Council achieved changes to Resolution No. 770, which now allows free import of such products.
Learn more about the results of the second quarter in our report.
