This week, Ukraine’s business community was shaken by new Government initiatives to revise the rules for reserving (exempting from mobilisation) employees of critically important enterprises who are liable for military service. The proposed amendments to Cabinet of Ministers Resolution No. 76 of 27 January 2023 (as amended) drew a sharp reaction from leading business associations, the Union of Dairy Enterprises of Ukraine (UDEU) reports.
Among the most contentious provisions are a new method for calculating reservation limits, an additional approval step through a Coordination Centre under the Cabinet of Ministers, and a possible revision of the sector criteria used to designate enterprises as critically important.
Business pushes back
UDEU did not stay out of the debate. Over the week, it actively joined the public discussion of the proposed changes, openly warning of the risks for the dairy industry and the need to preserve an effective employee reservation mechanism (see UDEU’s article for Forbes Ukraine).
Business concern over the new rules has become the subject of broad public debate. The Ukrainian Business Council, the European Business Association, the Union of Ukrainian Entrepreneurs, the Federation of Employers of Ukraine, representatives of the defence industry and other sector associations have all voiced reservations.
UDEU also held consultations and working meetings with government officials and members of parliament, defending the interests of dairy processors and calling for revisions to provisions that could disrupt the continuity of their operations.
First result: the exclusion of employees with other deferrals dropped from the draft
One of the most sensitive issues for business was a proposal to exclude employees who already have a deferral from conscription on other legal grounds from the total number of conscripts used to calculate the reservation limit.
«In our view, the proposal to exclude employees with deferrals on other legal grounds from the reservation limit base was insufficiently justified and posed significant risks for business. While formally keeping the 50% limit, the rule would in practice have reduced the number of employees companies could reserve, regardless of their real production needs.
For the dairy industry, that would have meant a risk of losing critically needed specialists, disrupting production continuity and reducing capacity utilisation. Notably, the provision was also criticised in the anti-corruption review by the National Agency on Corruption Prevention (NACP) of 12 October 2026, No. 220-09/66324-26, which recommended removing it. That is why UDEU firmly insisted on keeping the current approach to calculating reservation limits», said Khrystina Shpak, UDEU Deputy Executive Director for Legal Affairs.
Amid the active debate, the Government removed the provision on disregarding employees with other deferrals from the draft on 13 October.
Other risks in the new rules
Although one of the most contentious provisions has been dropped, several other proposed changes are still being finalised. UDEU continues to press for transparent, predictable and legally defined procedures that do not create additional risks for critically important enterprises.
A key issue remains the creation of a Coordination Centre for employee reservation under the Cabinet of Ministers. The proposed model would involve it in approving decisions on designating enterprises as critically important and in revising the relevant criteria.
However, uncertainty over review deadlines, grounds for negative recommendations and their legal consequences creates a risk of delays and excessive administrative pressure on business.
UDEU’s position is that the Coordination Centre should have purely advisory functions, should not replace the powers of the competent state authorities and should operate under clearly defined procedures. Representatives of relevant business associations should be involved in its work.
Equally important is preserving existing decisions on critically important status and existing reservations for their full term. The new rules should not interrupt employee reservations because of additional approvals or changed regulatory requirements.
Preserving sector criteria: a separate UDEU priority
The union pays particular attention to preserving the sector criteria for designating enterprises of importance to the national economy.
UDEU has already sent an official appeal to the Minister of Agrarian Policy and Food of Ukraine, Taras Vysotskyi, urging him to prevent an unjustified revision of the criteria approved by Ministry of Agrarian Policy and Food Order No. 11 of 2 September 2026.
«The new sector criteria only take effect on 18 October, so initiating their revision before they are even applied is, in our view, premature and unjustified. It creates additional legal uncertainty for companies that are already preparing to work under the updated rules.
For the dairy industry, stable criteria are critical, because workforce planning, production continuity and the supply of dairy products depend directly on the ability to confirm status in time and reserve the necessary employees. That is why UDEU insists on keeping the approved sector criteria and preventing their unjustified revision», Khrystina Shpak said.
Why reservation is critical for the dairy industry
Unlike industries where certain processes can be paused temporarily, dairy processing runs on a continuous production cycle. Losing even part of the necessary staff can disrupt production. The reservation issue therefore goes far beyond individual companies’ HR policies and directly concerns the resilience of the entire food chain.
UDEU consistently stresses that the state’s mobilisation needs and the continued operation of critically important enterprises should not be set against each other. An effective reservation mechanism must balance both.
Work continues: final rules still being drafted
As of 16 October, the final parameters of the new reservation mechanism are still being worked out. According to published information, the Coordination Centre’s role and certain provisions on reservation limits are to be further refined by 18 October.
To address these issues comprehensively and present the dairy industry’s position at parliamentary level, UDEU sent an official appeal to Serhii Bunin, Member of Parliament and co-chair of the inter-factional parliamentary association «For the Development of Ukraine’s Dairy Industry». The union asked him to support the initiative to revise the Government’s amendments and to raise with the Cabinet of Ministers the need to refine them in line with the business community’s position, in particular regarding the legal status and procedures of the Coordination Centre, the preservation of sector criteria and existing reservations, and an adequate transition period for the new rules.
UDEU continues to engage with the Government, relevant ministries and members of parliament to ensure the dairy industry’s interests are taken into account in the final regulations.
The first results have shown the importance of a coordinated business position and timely representation of sector interests at state level.
For UDEU, what matters is not only removing individual risky provisions but building a transparent, predictable and legally defined reservation mechanism that lets companies plan production, retain critically needed staff and ensure a stable supply of dairy products.
Ensuring Ukraine’s food security in wartime requires not only production capacity but also the people who keep it running every day. UDEU will continue to defend this principle at every level of dialogue with the state.
