Ukrtransbezpeka: Why a company may lose the status of “essential for the national economy”

For transport and logistics companies, holding the status “essential for the national economy” can mean preferential treatment, stable contracts and ability to book employees exempt from conscription. However, that status is conditional. If a company fails to meet the formal criteria defined by legislation, the status can be revoked.

Main reasons for losing the status

1. Failing to meet the official criteria under Resolution № 76

According to the resolution, to qualify a company must, in a given tax year, pay taxes, fees and payments (excluding customs) exceeding the equivalent of 1.5 million euros.
Also, the company’s foreign-currency revenue (excluding loans/credits) must exceed the equivalent of 32 million euros.
Loss of compliance with these thresholds may lead to revocation of essential status.

2. Change in company’s profile, reduction of activity, or cessation of operations

If the company reduces its transport/logistics activity or changes its business model away from what provided its strategic importance — it risks losing the status.

3. Failure to maintain conditions under which status was granted

Some firms receive status due to strategic importance (e.g. defense, national infrastructure). If that importance disappears or changes — regulators may withdraw the status.

4. Financial discipline breaches: taxes, reporting, lack of transparency

Outstanding tax debts, irregular reporting or lack of transparency undermine trust and may cause status revocation.

5. Change of legal entity, re-registration or reorganization

If the company changes legal entity (new ID, rebranding, merger) — the essential status does not automatically carry over. A new application must be submitted.

Practical consequences of status revocation

• Company loses right to reserve conscription-exempt employees, which may cause staff shortages under mobilization.
• Reduced trust from partners and state clients; lower chance to obtain state or defense-related contracts.
• To regain status — the company must re-qualify under official criteria, which may take time and resources.

Recommendations for logistics companies

• If changes have occurred, prepare the documents in advance for reapplying for the status.
• Monitor financial metrics such as taxes, fees, and foreign currency receipts to ensure compliance with the required thresholds.
• Maintain stable logistics activity including transport volume, contracts, and fleet utilization.
• Avoid unplanned changes to your legal structure without assessing how they may affect your status.
• Keep accounting and reporting transparent, and ensure all taxes are paid on time.