Suspension of military exemption has destructive impact on economy and sends negative signals to investors - media

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Suspension of military exemption of workers has a destructive impact on the economy, as in such conditions businesses may lose the ability to maintain even the current level of production. In addition, it sends negative signals to investors and partners of Ukraine who planned to invest in our industry.

This is stated in a study by GMK Center, Censor.NET reports.

The government's decision to audit enterprises that were recognized as critical has effectively suspended the granting of deferrals from military service to those who have been exempted. This problem has become systemic and has been "stuck" in the relevant authorities.

"Military exemption halt came as a shock to the legal part of the economy, as it happened unexpectedly and without any clear communication with the business. Business is extremely concerned about the current state of affairs, in particular the lack of official communication from the authorities. Currently, businesses do not understand how the military exemption procedure will work and how to plan further operations. In addition to the destructive impact on business in the country, this situation creates negative signals for our international partners, investors and customers," the EBA said.

For their part, business representatives interviewed by the publication have suggestions that will help the economy avoid collapse.

"Among the business proposals are the resumption of military exemption at the ministerial level, which will avoid negative impact when determining enterprises as critical through the RMA, increase the military exemption quota, and introduce automatic military exemptions for 3 months for employees who have been hired. In addition, the business proposes to strengthen mobilization primarily at the expense of the illegal sector of the economy, rather than considering industrial workers as the only resource, according to the Federation of Employers of Ukraine," the article says.

As a reminder, after the government's decision of October 8 to audit decisions on recognizing enterprises as critical to the economy, the booking process was effectively paralyzed, which caused protests from many business associations. Later, the government issued a protocol decision allowing reexempting employees from military service who had this status before May 31. Currently, companies are waiting for the relevant regulations to be issued to launch the reexempting process finally.