Key facts
- Proposed changes include lowering exemption quotas for defense-industrial and energy companies from 100% to 85%.
- Housing and utility companies' exemption quotas could be lowered from 75% to 60%.
- Lawmakers want business representatives included in any proposed coordination center.
- Ukrspecsystems stated that cuts would lead to delays in defense orders.
Ukraine's government is facing criticism over proposed changes to its military exemption system, with lawmakers and businesses concerned about the impact on critical industries. The Cabinet of Ministers approved changes on October 13, which reportedly include lowering exemption quotas for defense-industrial and energy companies from 100% to 85%, and for housing and utility companies from 75% to 60%.
On October 16, 63 lawmakers registered a draft resolution urging the government to reconsider the changes and consult with businesses. Prime Minister Serhii Koretskyi defended the need for reform, stating that genuinely critical companies, particularly in defense and energy, should not expect radical changes. He acknowledged abuses in the current system, where some companies exploit exemptions by employing non-essential personnel.
Defense company Ukrspecsystems warned that the proposed reduction in exemptions would lead to delays in defense orders and an outflow of workers. Lawmakers also questioned a proposed "coordination center" overseeing exemptions, calling for business representation.