Ukraine is working on establishing the legal framework for the development of small modular reactors
On 29 October 2025, the Ukrainian Parliament registered Draft Law No. 14164 «On Amendments to Certain Legislative Acts of Ukraine Regarding the Fundamentals of Implementing Small Modular Reactors (SMRs)», aimed at creating a legal framework for the development of small nuclear generation and attracting private investment in the sector.
The draft law proposes amendments to a number of legislative acts, in particular to the Laws of Ukraine «On the Use of Nuclear Energy and Radiation Safety» and «On Permitting Activities in the Field of Nuclear Energy Use».
Key proposals include:
- Definition of SMRs: the draft law introduces the definition of an SMR as a nuclear reactor delivered to the installation site as a single ready-to-use module, equipped with passive safety systems, and having an electric capacity not exceeding 300 MW, with the ability to adjust energy production by at least 20% from the nominal level.
- Updated definition of the operating organisation (operator): for state-owned SMRs, the operator is designated by the Cabinet of Ministers of Ukraine, while for privately owned SMRs, the operator is determined by the owner of the facility.
- Licensing of operator activities: the draft law maintains the requirement for mandatory licensing of operator activities without establishing a state monopoly.
- Separation of ownership and operation rights: the owner of an SMR is granted the right not to act as the operator, ensuring a clear distinction between ownership rights and operational responsibility. This approach facilitates project financing and encourages the involvement of private capital.
- Simplified siting procedure for SMRs: the procedure for selecting a site for SMR placement is simplified by abolishing the requirement to submit three alternative location options.
- Repurposing of industrial facilities: the draft law allows for the repurposing of existing industrial sites (such as thermal power plants or combined heat and power plants) for SMR construction, provided they meet safety requirements and undergo an environmental impact assessment.
- Demonopolisation of nuclear fuel: the draft law provides for the demonopolisation of ownership rights to nuclear fuel while maintaining state control over the management of spent fuel and radioactive waste.
Implementation of the draft law is expected to ensure:
- the establishment of a regulatory framework for the licensing, construction, and operation of SMRs
- the development of public-private partnerships in the field of nuclear energy
- the attraction of private and international investment into the energy sector
- the acceleration of energy infrastructure recovery following destruction
- the reduction of dependence on imported fossil fuels
- the fulfillment of Ukraine’s international commitments on decarbonisation and integration into the European energy market
- the creation of new jobs and the development of industrial supply chains
For further information, please contact Asters' Partner Yaroslav Petrov.
