Ukraine's government is facing mounting criticism over proposed changes to military exemption rules, with lawmakers and businesses warning that the measures could deprive critical industries of workers needed to sustain wartime operations.
The Cabinet of Ministers approved changes to the military exemption system on Oct. 13, though the final rules have yet to be adopted and published. The proposed changes 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 Oct. 16, 63 lawmakers registered a draft resolution calling on the government to reverse its changes, consult with businesses, and reconsider a proposed "coordination center" overseeing the exemption system.
The dispute highlights a difficult balance for Ukraine as it tries to mobilize more troops while keeping critical industries staffed during the war. Businesses fear the revised rules could deprive them of workers essential to production, energy infrastructure, and defense manufacturing, at a time when companies are already facing labor shortages and disruptions caused by the war.
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Ukraine Business Roundup
During a question-and-answer session in Parliament on Oct. 16, Prime Minister Serhii Koretskyi defended the need to reform the system but sought to reassure critical businesses that they should not expect sweeping changes.
"The regulation is still being worked on. It will be finalized, adopted and published. There is no betrayal there," Koretskyi said.
He said genuinely critical companies, particularly those in the defense and energy sectors, had no reason to worry.
"I can say with confidence that there will be no radical changes for these people and these industries," Koretskyi said.
At the same time, Koretskyi acknowledged that the current system has been abused. He said some companies with a 100% exemption quota exploit the system by employing people who do not perform critical functions.
During his comments in parliament, Koretskyi cited an energy company's contractor with 100 employees, only 20 of whom worked directly for the company, while all 100 received military exemptions. He also said abuses continued on a large scale, prompting the government to consider changes to the system.
"The mobilization and exemption system needs to be improved — that is an indisputable fact," Koretskyi said, adding that the General Staff needs additional soldiers to fight Russia's ongoing full-scale invasion, now in its fifth year.
But he said it was too early to criticize the final rules because the government had not yet completed and published the revised regulation.
In their resolution, the lawmakers also questioned a proposed "coordination center," calling for business representatives to be included if the government decides to establish it.
Ukrspecsystems, a Ukrainian defense company that develops unmanned aircraft systems for the Defense Forces, warned that the proposed cut from 100% to 85% would hit the industry’s output.
"For production, the consequences would be immediate: delays in defense orders and an outflow of candidates who will avoid working in the defense industry because of unpredictable rules," the company said in a post on Facebook on Oct. 16.
"We expect this provision to be dropped for defense industry enterprises and the reservation rules to remain stable for the long term."
