Draft bill #11183 of April 17, 2024 

Cosponsors: a group of 8 MPs from the Servant of the People faction with Volodymyr Kreidenko as the first signatory 

Status: sent for review to the Committee of the Verkhovna Rada on Economic Development 

Who is affected: citizens of Ukraine and international companies that manufacture and sell products in the territory of the aggressor state 

Summary: 

  • if a manufacturer of a product being sold in the Ukrainian market also operates in the territory of the aggressor state, it will be obligated to: 
    • label product price tags and packaging with the inscription “Manufacturer pays taxes to the budget of the aggressor state”. Failure to properly label the goods will result in a fine amounting to 200% of the value of the batch of goods obtained for sale, but not less than a thousand non-taxable minimum incomes (17,000 UAH) 
    • display information about their work in the territory of the aggressor state in their offices. Failure to label the premises will result in a fine amounting to 10,000 non-taxable minimum incomes (170,000 UAH) 
    • label the trademark and all related items with appropriate inscriptions. The visual representation of the mark for goods and services, trade name and commercial name (facade signage, interior elements, branded clothing, etc.) of the manufacturer (seller, provider) will have to be accompanied by labeling written in red letters on a white background. The inscription must include the commercial name of this seller (provider) and the phrase “Conducts business in the territory of the aggressor state and pays taxes to its budget”. The inscription will have to take no less than 30% of the area of the medium on which such reproduction is depicted. Failure to comply with the law will result in a fine of 10,000 non-taxable minimum incomes (170,000 UAH) 
  • advertisement of a person or goods provided by a person who directly or through their subsidiaries operates in the territory of the aggressor state will have to include: 
    • in printed media and other printed publications (catalogs, booklets, brochures, etc.), an inscription in red letters on a white background “This business pays taxes to the budget of the aggressor state.” It will have to take at least 10% of the total advertisement volume 
    • on television and radio, each advertising slot will have to end with the phrase “This business is controlled by the aggressor country”, and will have to be clearly and distinctly audible 
    • during teleshopping, throughout the entire advertisement, an inscription “This manufacturer pays taxes to the budget of the aggressor state” will have to be displayed in the bottom right corner of the screen, taking at least 10% of the total screen area 
  • the Cabinet of Ministers of Ukraine will be responsible for informing consumers monthly about manufacturers or sellers conducting business in the territory of the aggressor state. To this end, the Cabinet or the dedicated ministry responsible for the state policy on consumer rights protection will post relevant information on their official websites. 

What is right: Ukrainian citizens will have information about companies that continue to operate and pay taxes in Russia. It will be an important measure to maintain economic pressure on the aggressor state, raise citizens’ awareness about the origin of goods, and encourage ethical business practices. Public condemnation of businesses cooperating with Russia may prompt other companies to reconsider their position or stop the cooperation.