Ukraine's Ministry of Digital Transformation Unveils Updated Criteria for IT Sector Draft Exemptions

New Requirements for Being Designated a Critical Enterprise

According to ХВИЛЯ: Ukraine’s Ministry of Digital Transformation has approved fresh guidelines that determine which digital-sector companies can be classified as vital to the national economy. This designation allows businesses to reserve (exempt) employees who are liable for military service. The new rules are laid out in Ministry Order No. 127, registered with the Ministry of Justice on June 29 and effective as of July 3, 2023. This order replaces a previous directive that had been in force since December 2024. The update comes amid ongoing wartime labor shortages and efforts to retain skilled tech workers.

Criteria for Achieving Critical Status

To qualify as an enterprise critical to the national economy, a company must meet at least one of several specified benchmarks. The affected firms fall into three categories:

• IT industry and state digital systems
• Electronic communications and internet infrastructure
• Innovation and defense

For IT companies not registered under the Diia.City platform, the average salary must be at least €1,200, and the average headcount must be nine or more employees.

Eligibility also extends to enterprises that build and maintain government electronic registries and databases, providers of cloud services for state systems, and qualified providers of electronic trust services. The electronic communications group includes administrators of the .ua and .укр domain zones. Separately, the list covers representatives of foreign manufacturers of networking equipment, excluding companies from Russia, Belarus, and Iran.

For companies offering electronic communications services, a financial threshold applies: average monthly net revenue must exceed 500,000 Ukrainian hryvnias. For businesses located in areas of possible or active hostilities, this threshold drops to 100,000 hryvnias. These firms must also comply with orders from the National Center for Operational and Technical Management of Networks and have a contract with a critical operator signed at least six months before applying for status.

To prove compliance, enterprises need to submit tax invoices and service delivery certificates covering the past six months. Companies that have received grants for defense-related technology development, actively counter disinformation from the aggressor, or fund IT, science, and creative industries are also eligible. Each criterion must be backed by certificates signed by the company’s head.

These revisions to the rules for obtaining critical-enterprise status could significantly shape Ukraine’s digital sector. By allowing qualifying companies to retain their workforce during wartime, the government aims to stabilize strategically important industries while supporting economic resilience amid ongoing challenges.

As the Ministry of Digital Transformation implements these new criteria, it's essential to consider how they align with recent changes from the Economy Ministry regarding draft exemptions. These parallel updates aim to address labor shortages and ensure that key sectors, including IT, receive the necessary support during these challenging times.