For many years, discussions in Ukraine have focused on the need for:

• real and effective guarantees for investors and businesses against petty corruption;
• meaningful consumer protection;
• incentives for investment and rapid development of micro, small, and medium-sized
  enterprises (MSMEs).
  Despite dozens of reforms, these challenges remain systemic. Below, I propose a concrete legal
  instrument capable of addressing all three objectives simultaneously — an instrument that is
  particularly relevant in the context of Ukraine’s post-war recovery.
  HOW THE SYSTEM WORKS TODAY: A PRACTICAL EXAMPLE
  Imagine an investor planning to open a small cheese-making facility in Ukraine, with the potential to
  scale the business across different regions. The economic rationale is clear: local farms, unmet
  demand for high-quality premium dairy products, and access to EU equipment and technologies.
  In practice, however, launching such a business involves lengthy and costly regulatory procedures.
  The minimum mandatory documentation package includes, among others:
• a sanitary passport for the facility;
• approvals from sanitary and epidemiological authorities;
• product conformity certificates;
• notification of commencement of activities in the food sector;
• implementation of the HACCP system (Hazard Analysis and Critical Control Points);
• separate certification for each new product type.
  Even under favourable conditions, completing these procedures takes at least 7–9 months.
  Formally, similar requirements exist in many EU countries. However, there are two fundamental
  differences between Ukraine and European jurisdictions.
  WHY THE CURRENT MODEL IS PARTICULARLY PROBLEMATIC FOR UKRAINE
  First, the level of enforcement.
  In the EU, procedures are transparent and predictable, and regulatory requirements are clearly defined
  and exhaustive. In Ukraine, by contrast, regulatory decisions are still often accompanied by
  corruption risks, informal demands, and pressure on businesses.
  Second, the economic context.
  European economies are relatively stable, credit resources are accessible, and markets are mature.
  Ukraine, however, is emerging from a full-scale war with damaged infrastructure, disrupted supply
  chains, and high unemployment. After demobilisation, tens of thousands of jobs will need to be
  created.
  In these conditions, micro, small, and medium-sized businesses will become the primary drivers of
  recovery. Yet the existing market entry system makes starting a business slow, expensive, and risky.
  THE PROPOSED SOLUTION
  One possible instrument is to abolish, for micro, small, and medium-sized enterprises, the requirement
  to obtain licences, certificates, and other permits as a precondition for starting operations, while
  simultaneously introducing mandatory liability insurance for damage to consumers.
  This is not about abandoning control altogether, but about changing its logic: shifting from ex ante
  permits to ex post liability for harm caused.
  WHY THIS MECHANISM WORKS

1. Reducing petty corruption
   Every permit or certificate is a point of contact between a business and a public official. The more
   such points exist, the higher the risk of pressure and informal arrangements.
   Replacing licensing with liability insurance radically reduces the number of grounds for inspections
   and discretionary decisions — and, consequently, the space for corruption. No permit means no
   leverage for manipulation.
2. Real consumer protection
   The existence of a licence does not guarantee product safety. Even a fully certified enterprise can
   cause harm to consumers.
   Under a liability insurance model:

• consumers receive compensation quickly and without lengthy court proceedings;
• the insurance company independently pursues recourse claims against the producer;
• entrepreneurs have a direct economic incentive to comply with safety standards.
  As a result, consumer protection is ensured more effectively and with significantly lower corruption
  risks.

1. Incentives for investment and business growth
   Reducing the time and cost required to start a business makes investments economically viable even
   in an environment of expensive credit.
   This is especially important for Ukraine, where economic recovery is impossible without rapidly
   engaging active individuals in entrepreneurship and creating jobs at the local level.
   CONCLUSIONS
2. Licensing as a tool of preliminary control does not ensure effective consumer protection or
   investment predictability in conditions of weak enforcement.
3. Liability insurance simultaneously protects consumers, reduces corruption risks, and
   simplifies market entry.
4. In Ukraine’s post-war recovery, micro, small, and medium-sized businesses — rather than
   waiting for large-scale investments — will be the key growth driver.
5. Replacing licensing with liability insurance is a pragmatic and implementable solution, not a
   declarative reform.
   In future publications, I will continue to share applied legal instruments aimed at creating a
   transparent and predictable environment for business and investment in Ukraine.
   About the author
   Valentyn Spasybo is a legal analyst focusing on regulatory risks, investment protection, and
   institutional accountability in Ukraine. His work is aimed at developing practical, legally sound policy
   solutions to improve the business environment and support Ukraine’s economic recovery and
   European integration.