Draft exemption in "Diia.City": Scandal over casinos, links with Russia and the position of the Ministry of Digital Transformation

Incentives, draft exemption and dubious cases

The Ministry of Digital Transformation under the leadership of Mykhailo Fedorov introduced the special legal regime "Diia.City". This initiative provides preferential taxation for technology companies. For residents meeting additional criteria, the status can serve as a basis for recognising the enterprise as critically important and obtaining draft exemption status for employees from mobilisation. However, residency does not guarantee an automatic right to such a deferment.

A journalistic investigation showed that the draft exemption mechanism was used by companies linked to online and social casinos, as well as businesses in which Russian traces were found in their structures. In total, almost 150 employees were granted draft exemption at the researched enterprises. The validity periods of the permits vary, and some of them have already expired.

Scandal over "Favbet Tek" and repeated draft exemptions

One of the resonant cases concerns LLC "Favbet Tek" (later renamed "Highload Solutions"). The company develops software for Favbet and became a resident of "Diia.City" in March 2022. In April 2024, it obtained draft exemption for 15 employees. Information about this was published by People's Deputy Oleksandr Fediienko, who shared an order from the Ministry of Economy.

The decision caused public outrage. At the time, Favbet stated that the company is part of the "Ukrainian cyber army", and Digital Transformation Minister Mykhailo Fedorov explained the necessity of retaining highly qualified IT specialists. Then-Economy Minister Yulia Svyrydenko announced the cancellation of the order to avoid further division.

However, according to investigation data, after the scandal, the company obtained draft exemption status again. From July 2024 to August 2025, another 20 employees of "Favbet Tek" received deferment. This raises doubts about the criteria for assessing the criticality of such a business.

Other companies in the gambling sector

The list also includes LLC "Billtech Games" and LLC "Computer Service". "Billtech Games" became a resident in October 2023, and from July 2024 to August 2025, it obtained draft exemption for ten employees. Andrii Rutkovskyi, a former patrol police officer of Vinnytsia Oblast, is named as the owner of the company. He did not answer journalists' calls. After the publication, the company emphasised that its licence relates to software supply, not the direct conduct of gambling.

Meanwhile, in regulator decisions, the company's activity was described as providing services in the field of organising and conducting gambling. LLC "Computer Service", a resident since July 2023, obtained draft exemption for seven employees in the period from August 2024 to August 2025. Company representatives confirmed that the employees with draft exemption continue to work.

Two other companies, "Product Madness Ukraine" and "Playtika Ukraine", operate in the social casino segment (games with virtual coins). Together, they obtained draft exemption for 21 employees from January 2024 to August 2025. Thus, only in five companies linked to the gaming sector, 58 employees with draft exemption have been recorded.

The "Diia.City" project office explains that gambling operators cannot be residents, but software development for them is a different type of activity. "Це послуги, які полягають у розробці програмного забезпечення, яке використовується в азартних іграх" ("These are services involving the development of software used in gambling"), said Oleksii Dobronravov, Legal Lead of the project office.

Russian corporate links

In the summer of 2022, Mykhailo Fedorov stated that companies with Russian business cannot be residents. However, in spring 2024, NGL.media published a list of 24 resident companies that, according to their data, earned in Russia or Belarus. The Ministry of Digital Transformation then acknowledged gaps in legislation that did not cover cases where owners were Russian citizens but lived abroad. At the end of 2024, the Verkhovna Rada adopted amendments that expanded prohibitions on companies directly or indirectly linked to Russia.

One example is "G5 Holding Ukr", a resident since August 2022, linked to Swedish G5 Entertainment. Russian shareholders and companies were mentioned in G5's 2024 financial report. "G5 Holding Ukr" obtained draft exemption for 67 employees in 2024. Company representative Oksana Zamula denied links with Russia and stated that she is not responsible for the shareholders of the parent company.

Another case is "Mirantis Ukraine", a resident since early 2024, providing cloud services. American Mirantis Inc. is linked to Russian "Mirantis IT", which continued to be registered in Russia. The Ukrainian company obtained draft exemption for 20 employees from July 2024 to August 2025. A company representative stated that the Russian legal entity effectively ceased operations after 2022 but cannot be liquidated due to Russian legislative restrictions.

LLC "Laboratory of Information Systems" is also mentioned, which obtained draft exemption for three employees. Journalists found a link with a Russian legal entity and a Russian citizen. "Diia.City" explains that the share was transferred to a French company, but the changes are not reflected in the Ukrainian register. Natalia Sichevliuk, legal advisor at Transparency International Ukraine, emphasises the importance of establishing actual control over the business.

Cosmolot case and incentive control

The publication "Anticor" reported on Serhiy Tokarev, linked to the Cosmolot brand, and a company from his business circle which, according to the publication, is a resident of "Diia.City". The publication raises questions about his possible links with Russia and trips to occupied Crimea. These claims require separate verification, but the fact of mention in the media is not proof of a legal violation.

In parallel with the discussion on draft exemption, the problem of ludomania intensified in 2024. Military and activist Pavlo Petrychenko collected 25,000 signatures for a petition to restrict military access to online casinos. President Volodymyr Zelensky ordered the preparation of proposals, and later the authorities announced restrictions on the operation of online casinos.

"Diia.City" residency itself is not a violation. But the totality of cases raises questions about the transparency of checks and the effectiveness of mechanisms for controlling corporate links and the actual activities of companies using state incentives.