Business proposes Rada, Cabinet create list of enemy software, facilitate development of Ukrainian analogues

The European Business Association (EBA) has asked the government and parliament to finalize bill No. 11492, which introduces a ban on the use of sanctioned software products and access to electronic information resources, and proposes to create a list of such software.

"Business understands the importance of adopting the bill to ensure a better level of cyber protection, counteract disinformation and prevent threats to the national security of Ukraine. At the same time, the business community proposes to take into account several important points so that the innovations do not have a negative impact on companies, and at the same time contribute to a faster and easier transition to alternative software solutions," the association said on its website.

EBA said it is proposed to develop a clear list of hostile software products and categories of electronic resources subject to the law, which may include the creation of a list of criteria by which resources subject to prohibition will be determined.

It is noted it is equally important to specify some general terms that require a clearer definition in order to avoid misinterpretations, abuses or excessive restrictions.

According to the association's experts, the transition to domestic software requires significant resources, so businesses consider it necessary to provide state support (financial assistance, tax breaks or subsidies for licenses for new software) to companies making such a transition. In this regard, the association proposes to establish a transition period of 12-24 months in order to minimize the impact of software changes on the operating activities of companies and reduce risks to the economy.

Businesses consider it necessary to promote the development of Ukrainian IT products, since this will not only reduce dependence on foreign programs, but will also stimulate the development of the national IT industry. According to the association's experts, the introduction of grant programs and investment incentives for Ukrainian developers and the expansion of cooperation between the state and IT companies will contribute to such development.

In addition, the EBA said the transition to domestic products requires significant resources from software integrators.

"According to information from member companies of the association, there was still a shortage of such specialists on the market, and in recent years it has only increased. A possible solution in this situation would be the introduction of economic reservations for critical specialists in this field," the EBA believes.

Additionally, the EBA said an alternative bill No. 11492-1 has also been registered in the Verkhovna Rada, to which businesses have similar comments. Therefore, in order for the measures introduced by this bill to be more effective and have minimal negative consequences for the economy, representatives of the association propose to revise bill No. 11492 or No. 11492-1, taking into account business proposals.

According to information on the parliament's website, government bill No. 11492 was registered in the Verkhovna Rada on August 19, 2024.

As stated in the explanatory note to it, the bill was developed with the aim of increasing the level of cyber protection of Ukraine by introducing sectoral sanctions to prohibit or ban the use of software products and web resources developed by business entities of a foreign state to which sanctions and access restrictions to a certain information resource have been applied.

Later, on August 30, an alternative bill No. 11492-1 was registered, which proposes the introduction of a new type of sanctions – a ban on the import, sale, use of software products, as well as their components.