British loan for Ukrainian Navy, withdrawal from CIS agreement on joint actions against terrorism, and conflict in the culture sector

This week the Verkhovna Rada will hold only one plenary session. This means that MPs will consider only several draft bills. However, we still have enough important issues to cover in our digest: a loan agreement with Great Britain, another terminated agreement with CIS member states, and redistribution of power in the world of Ukrainian cinema.

Ratification of the agreement with Great Britain 

Draft bill # 0143 of January 24, 2022

Status: adopted by the Parliament.

Who is affected: the Ministry of Defense and the Ukrainian Navy.

Background: while annexing the Autonomous Republic of Crimea and Sevastopol city, the Russian Federation has seized Ukrainian Navy bases, a significant part of the Ukrainian fleet, armament, and weaponry. In the following years, Russia gained control over the Azov Sea and Kerch Strait, and now it interferes with the freedom of navigation in the Black Sea. Ukraine still has not managed to increase the capacity of its Navy and thus does not have sufficient resources to counter threats at sea.

Summary of the bill:

• Ukraine has ratified an agreement with Great Britain about the loan to support the development of the Ukrainian Navy

• under the agreement, Great Britain will loan Ukraine £1.7 bln of funding to cover the following expenses:

a) procurement, delivery, and maintenance of two minesweeping vessels

b) joint construction of 8 gunboats

c) delivery and installation of weapon systems on Ukrainian ships

d) joint construction of a frigate

e) consulting and technical assistance for navy infrastructure.

What is right:

• with a stronger Ukrainian Navy the security situation in the Black Sea region will improve, Ukraine will be more able to protect its interests at sea
• strengthening of Ukraine’s position in the international arena.

Withdrawal from the CIS agreements on counterterrorism 

Draft bills # 0064, 0065 of August 13, 2020 

Status: first reading.

Sponsor: the President.

Who is affected: Ukrainian citizens and the Security Service of Ukraine.

Summary of the bills: Ukraine is finally withdrawing from the agreements on counterterrorism measures with CIS member states:

• the draft bills denounce the Protocol approving the Provision on the procedure for organizing and conducting joint counterterrorism actions on the territories of member states of the Commonwealth of Independent States
• they also denounce decisions establishing and regulating the work of the Anti-terrorism center of member states of the Commonwealth Independent States.

What is right:

• these draft bills are in line with the state policy to withdraw from bilateral agreements with the Russian Federation on a variety of issues and multilateral agreements concluded within the framework of CIS. Taking into account the armed aggression of the Russian Federation against Ukraine and the temporary occupation of the Autonomous Republic of Crimea, the city of Sevastopol, parts of Donetsk and Luhansk oblasts by Russians, this solution is more than right.

Transfer of the National Oleksandr Dovzhenko Film Centre under the Ukrainian State Film Agency 

Cabinet resolution # 91-p of January 26, 2022 

Who is affected: the Ministry of Culture, the Ukrainian State Film Agency, and the National Oleksandr Dovzhenko Film Centre.

Background: last year in November, the Cabinet put the Ukrainian State Film Agency under the direct control of the Cabinet and not the Ministry of Culture.

Summary of the resolution:

• transfers all property and operations of the state enterprise “the National Oleksandr Dovzhenko Film Centre” from the Ministry of Culture to the Ukrainian State Film Agency
• orders the Ukrainian State Film Agency to approve a strategic development plan for the National Oleksandr Dovzhenko Film Centre within three months and ensure performance improvement in the work of the Centre and its financial situation.

What is wrong:

• the resolution disrupts the development of a consistent state policy on culture

• it completely removes the Ministry of Culture from managing cinema and prevents the development and implementation of a unified state policy concerning cinema
• the transfer of the National Oleksandr Dovzhenko Film Centre causes a conflict of powers within the Ukrainian State Film Agency since the latter will both manage the economic part of its activities and at the same time exercise state oversight on culture.

Alternative solution: to return the Ukrainian State Film Agency and the National Oleksandr Dovzhenko Film Centre under the management of the Ministry of Culture.