State Price Regulation 2020: How Does the Control and Declaration Mechanism Work?

State regulation of prices for socially significant goods remains a strategically important tool for social protection. Although the peak restrictions of the COVID-19 pandemic are gradually transforming, the government continues to apply price control measures during the country’s recovery.

Lawyers at Law Business Association (LBA) have prepared an up-to-date analysis of the legislation governing maximum markups on food, medicine, and essential goods.

Legislative Basis: Resolution No. 341 and the Start of Control

On May 18, 2020, CMU Resolution No. 341 dated 22.04.2020 officially came into force. This document was developed in compliance with the Law of Ukraine No. 540-IX and aimed at stabilizing the market during epidemiological challenges.

“According to the Law ‘On Prices and Pricing’, state regulation of prices for medicines, medical products, and socially significant goods is ensured through mandatory declaration of changes in retail prices.”

Monitoring compliance with this procedure is entrusted to the State Service of Ukraine on Food Safety and Consumer Protection (Derzhprodspozhyvsluzhba), which maintains a public register of declared prices.

Objects of Declaration: Which Goods are Subject to Control?

In accordance with the established procedure, mandatory declaration applies to changes in retail prices (including VAT) for each individual type of product. This rule applies regardless of the following characteristics:

• type of packaging and form of release;
• weight or volume of a unit of goods;
• dosage (for medical preparations).

Important Note: The only exceptions are goods whose type of packaging is clearly defined in the list of goods of significant social importance approved by the Cabinet of Ministers of Ukraine.

Deadlines for Declaring Retail Price Changes

Business entities must notify the state in advance of their intention to increase prices. The deadline for filing a declaration directly depends on the percentage of price increase compared to the initial or previously declared price:

1. Increase of 15% or more — declaration must be made 30 days before the new price is applied.
2. Increase from 10% to 15% — submission of information 14 days before introducing changes.
3. Increase from 5% to 10% — declaration 3 days before the start of application (excluding the day of submission).

Declaration is not required if the price increases due to the end of a promotion or discount period.

Technical Procedure: How to Submit Data to the State Consumer Service?

The data submission process is fully digitalized. The business entity must complete the following steps:

• Go to the official website of the State Service of Ukraine on Food Safety and Consumer Protection.
• Use a Qualified Electronic Signature (QES) for authorization.
• Fill in the data in the cabinet at the link: price.consumer.gov.ua/cabinet.

After successful entry, the information automatically enters the public register, which is available at declaration.consumer.gov.ua. Lawyers recommend carefully checking the accuracy of the entered data, as errors can lead to sanctions during inspections.