Ukraine’s Parliament: EU Defence Cooperation, Consumer Protection and the 2027 Budget

Ukraine’s parliament approved two defence agreements with the European Union, adopted legislation targeting organised scam call centres and established a framework for new financing instruments. It also gave initial approval to reforms affecting imported online purchases, local government, small businesses and energy regulation. The government’s presentation of its 2027 budget brought these decisions into sharper focus: Ukraine must sustain its defence and civilian economy while negotiating substantial additional external financing.

For international readers, the distinction between legislative stages matters. On 16 September, the Verkhovna Rada, Ukraine’s national parliament, adopted four bills in full and approved nine at first reading. The draft 2027 budget was presented and taken forward for parliamentary scrutiny. It was not approved at first reading or adopted as a budget law.

The sitting coincided with the twelfth anniversary of the Ukrainian and European parliaments’ simultaneous ratification of the EU–Ukraine Association Agreement. MPs also honoured the memory of journalists Georgiy Gongadze and Viktoriia Roshchyna, other journalists killed in the course of their work, fallen defenders and civilian victims of the war. European integration and the human cost of war formed the context for a day of decisions with consequences for households, businesses and communities.

Two agreements advancing defence cooperation with the EU

Bill No. 0390, ratifying the agreement on Ukraine’s participation in the European Defence Fund, was adopted in full with 312 votes. The fund supports collaborative defence research and development. Ratification provides a legal basis for Ukrainian entities to participate in cooperation with European partners under the agreement.

Bill No. 0391, ratifying the financing agreement for measures under the European Defence Industry Programme, was adopted in full with 317 votes. This is a separate agreement concerning the financing of measures covered by that programme.

The significance for European partners lies in the prospect of deeper industrial and technological cooperation with Ukraine. For Ukrainian industrial regions, the potential benefits include engineering work, production partnerships and employment. These votes establish legal foundations; they do not, by themselves, confirm an awarded grant, a signed industrial contract or a delivery of military equipment. Concrete results will depend on implementation and individual projects.

Targeting the organisation behind scam calls

Bill No. 10190 was adopted at second reading and in full with 313 votes. It introduces specific criminal liability for establishing or leading organised electronic communications fraud groups, knowingly participating in them, intentionally supporting their operations and recruiting other participants.

The parliamentary explanation also describes liability for officials who facilitate such groups or intentionally help them evade criminal responsibility. Subject to the conditions set out in the legislation, ordinary participants may qualify for exemption from liability if they voluntarily report the group and help expose its activities.

A fraudulent call claiming to come from a bank can be the visible end of a wider operation involving managers, recruiters and technical support. For households facing wartime financial pressure, the practical test of this law will be whether investigators can dismantle those networks and protect people’s savings.

Financing instruments and safeguards for borrowers

Bill No. 15172, “On Securitisation and Covered Bonds”, was adopted at second reading and in full with 278 votes. Securitisation enables financing through securities linked to pools of financial assets, such as loans. Covered bonds are a separate financing instrument backed by a designated pool of assets.

According to the parliamentary committee’s explanation, the framework is intended to support longer-term financing, including housing programmes. It contains restrictions affecting sanctioned persons, entities linked to the aggressor state and participants with opaque ownership structures, alongside requirements concerning asset quality and risk controls.

Borrower protection is a material part of the legislation: transferring a loan claim must not worsen restructuring terms, while a change of asset manager must not interrupt loan servicing or restrict the borrower’s rights. The framework creates financing opportunities, but does not guarantee cheaper mortgages. Affordability will also depend on funding costs, war risks and household incomes.

The related Civil Code amendments, Bill No. 15175, received first-reading approval with 262 votes. Their legislative status therefore differs from that of the main law.

Imported online purchases: initial approval, not a final tax change

Tax Code Bill No. 16051-1 received 273 votes at first reading; Customs Code Bill No. 15460 received 267. Together, they address VAT treatment and customs formalities for goods purchased remotely and delivered to Ukraine through international postal or express consignments.

The official explanation describes a proposed VAT system for online purchases with an invoice value of up to EUR 150. Responsibility for calculating and paying the VAT would fall on the electronic interface operator through which the sale takes place.

The proposals also describe exemptions, including qualifying non-commercial gifts worth up to EUR 45 sent without payment between individuals for personal or family use. Specified categories of energy equipment and defence-related goods would retain the relevant VAT exemptions. Bill No. 16051-1 proposes directing VAT receipts from these remote sales to a special budget fund for the Armed Forces of Ukraine.

Parliamentary communications link the reforms to Ukraine’s commitments to the EU and the IMF. For consumers, the central issues are the final purchase price, clear collection arrangements and the scope of exemptions. Our editorial assessment is that further scrutiny should make these effects transparent, particularly for households purchasing essential goods during the war. The votes on 16 September did not enact the proposed system in its final form.

Local government and small business resilience

Bill No. 14405, addressing the ability of local councils to function under martial law, received first-reading approval with 236 votes. It proposes temporary rules on quorum and decision-making for councils in communities whose 2020 local elections used the specified majoritarian electoral system. It also addresses the position of mobilised councillors and wartime reporting requirements.

The proposed arrangements would apply during martial law and for six months after its termination or cancellation. Their scope should not be assumed to cover every Ukrainian city council. For affected communities, the issue is practical: local authorities need to retain the capacity to take decisions despite wartime disruption to council membership.

Bill No. 15024 received first-reading approval with 270 votes. It proposes simplified insolvency proceedings for micro and small enterprises, including a procedure lasting up to 180 days, lower costs and reduced documentation. It also addresses insolvency procedures for state-owned enterprises and companies designated for privatisation.

The parliamentary explanation connects the proposals to European restructuring principles and Ukraine Facility requirements. For a small firm that has lost assets or customers during the war, a workable insolvency process can help resolve debt in an orderly manner. The final balance between business recovery and creditor protection remains a matter for further legislative scrutiny.

Deposit guarantees, forest-related trade and energy regulation

Bill No. 15269, on corporate governance at the Deposit Guarantee Fund, received first-reading approval with 271 votes. The fund is Ukraine’s institution responsible for its bank deposit guarantee system. The bill focuses on governance, leadership selection, internal audit, reporting and transparency. It should not be presented as a decision that day to change the amount of deposit compensation.

Bill No. 15352, on trade in goods associated with deforestation or forest degradation, received first-reading approval with 260 votes. It proposes controls and traceability requirements for relevant imports, domestic sales and exports. For businesses trading with European partners, the policy direction highlights the importance of demonstrating lawful and verifiable product origins.

Bill No. 14282 received first-reading approval with 249 votes. It aims to strengthen the independence and capacity of Ukraine’s National Energy and Utilities Regulatory Commission, commonly known by its Ukrainian acronym, NKREKP. Proposed changes concern institutional and financial independence, transparent recruitment and European institutional participation in the selection process.

The reform is relevant to energy market integration and confidence in regulatory decisions. It does not itself change household tariffs. Our assessment is that stronger independence should be accompanied by clear explanations of decisions, transparency and effective consumer protection.

Vehicle noise and an unsuccessful road safety vote

Bill No. 15358, introducing liability for driving vehicles that exceed permitted noise levels, received first-reading approval with 261 votes. The proposed penalties include UAH 8,500 for an initial violation, UAH 17,000 during martial law, and UAH 34,000 with a three-to-six-month driving ban for a repeat violation during martial law. These remain proposed provisions, subject to further consideration.

In communities living with air raids, sudden vehicle noise has particular social significance. Fair enforcement would also require reliable measurement, clear evidence and a meaningful opportunity to challenge a penalty.

A separate road safety initiative did not secure approval. Bill No. 15348 received 225 votes at first reading, one short of the required support; alternative Bill No. 15348-1 received 199. Proposals to send those bills for a repeat first reading or return them for revision also failed. These were unsuccessful votes, rather than additional adopted measures.

The 2027 budget: defence priorities and a financing gap

Finance Minister Serhii Marchenko presented draft State Budget Bill No. 16000 for 2027. He explained that the government’s planning assumes the war will continue into 2027. This is a fiscal planning assumption, not a definitive prediction about the course or duration of the war.

The government proposed UAH 5.648 trillion in revenue and UAH 7.272 trillion in expenditure. The security and defence sector would receive UAH 4.885 trillion, equivalent to 67.2% of total expenditure. Proposed civilian priorities presented to MPs included UAH 100 billion for energy support, UAH 53 billion for restoring the road fund and more than UAH 540 billion for social protection.

The minister put the requirement for external financing at USD 52.6 billion. He said the government had an understanding of sources for USD 20 billion, while negotiations continued over the remaining USD 32.6 billion. The distinction matters to international partners: identifying possible sources is not the same as confirming that funds have been disbursed, and the uncovered requirement should not be confused with the simple difference between headline revenue and expenditure.

For Ukrainian communities, the central question is whether the proposed programmes can be supported by dependable financing and delivered when needed. National allocations do not establish how much a particular region or municipality will receive. The thematic figures presented by the government should also not automatically be added together, as programme categories may overlap.

A motion to reject the draft budget received seven votes and was not carried. The presentation concluded, and the draft was taken forward for parliamentary work. MPs and committees were instructed to submit their proposals to the Budget Committee no later than 1 October. No first-reading approval or final adoption of the 2027 budget took place at this sitting.

What these decisions mean beyond Kyiv

In an industrial city such as Kryvyi Rih, defence cooperation may create opportunities for enterprises and engineers. Financing reforms and workable insolvency procedures matter to local businesses. For households, the immediate concerns are savings, housing, energy services and the cost of essential purchases.

The regional impact will depend on implementation: the conditions for joining defence projects, access to finance, local administrative capacity and the allocation of budget resources. This regional assessment is editorial analysis, rather than an attributed interview or a claim that a particular community has already secured funding.

For international audiences, the sitting illustrates how European integration, wartime financing and domestic institutions interact. In our view, the most useful measure of progress is the delivery that follows: functioning industrial partnerships, protected borrowers, disrupted fraud networks, understandable tax rules and public services backed by reliable resources.

Sources: supplied copies of the Verkhovna Rada’s official transcript for 16 September 2026 and parliamentary reports on the European Defence Fund agreement, organised scam call centres, securitisation and covered bonds, imported online purchases, local councils and simplified insolvency procedures. Source material is in Ukrainian. Legislative stages and figures reflect the supplied records of this sitting.