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The Draft Law on Critical Infrastructure passed the first reading

On 29 June 2021, the Draft Law on Critical Infrastructure № 5219 (hereinafter – the Draft) was adopted as a basis in the first reading.

The Draft provides for the implementation of a number of measures to solve the existing problems of functioning of the state system of critical infrastructure protection; in particular:

  • it is planned to establish an authorized body in the sphere of critical infrastructure protection – the National Commission for Critical Infrastructure Protection – a central executive body with a special status, subordinate and accountable to the Cabinet of Ministers of Ukraine. Such a permanent collegial body should be formed consisting of the Chairman of the National Commission and six members of the National Commission;
  • criteria for assigning facilities to critical infrastructure are proposed and the formation of the Register of critical infrastructure facilities is provided;
  • the implementation of the passport system of the critical infrastructure facilities is introduced: critical infrastructure operators must prepare and submit to the competent authorities a safety passport for each critical infrastructure facility;
  • the powers of sectoral and functional bodies in the sphere of critical infrastructure protection, of local executive bodies, as well as the rights and responsibilities of critical infrastructure operators are determined; in addition, the main functions of the National Guard of Ukraine are now complemented with the protection of critical infrastructure facilities and with the participation in the elimination of the consequences of crisis situations on such facilities;
  • the interaction of the national critical infrastructure protection system with other systems of protection and response in the sphere of national security (in particular, with the Unified State Civil Protection System, the National Cyber ​​Security System and others) is regulated;
  • the parliamentary and public control in the sphere of critical infrastructure protection, as well as the annual external audit of the National Commission for Critical Infrastructure Protection activity, which is to be conducted by the Accounting Chamber of Ukraine, is introduced;
  • administrative and economic sanctions (administrative and economic fines, collection of fees (mandatory payments), restriction or suspension of the business entity activity) for the violation of legislation in the sphere of critical infrastructure protection is provided - both for state bodies, local governments, local communities and for operators of critical infrastructure facilities; at the same time, the specified provisions come into force in 3 years from the date of the entry into force of the Law of Ukraine "On Critical Infrastructure";
  • compulsory state insurance of the risk of financial losses caused by the crisis situation is provided for critical infrastructure facilities; the list of such facilities will be approved by the Cabinet of Ministers of Ukraine. At the same time, this provision also enters into force 3 years after the entry into force of the Law of Ukraine "On Critical Infrastructure".

Taking into consideration the urgency of reforming the national security system, as well as the fragmentary and incomplete legal regulation of protection of critical infrastructure systems and facilities, as pointed out by the authors of the Draft, the adoption of a special law on critical infrastructure and its protection is an important issue of the agenda.

The text of the Draft is currently being prepared for the second reading.

For further information, please contact Asters' Partner Yuriy Kotliarov.

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