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Ukraine: Establishment of the Business Ombudsman Council
Kyiv, Ukraine, Mon, Dec 22, 2014
Published by U.S.-Ukraine Business Council (USUBC),
Wash D.C., Wed, Jan 14, 2014
On 26 November 2014 the Cabinet of Ministers of Ukraine passedResolution No. 691 On the Establishment of the Business Ombudsman Council (the“Resolution”). The Business Ombudsman Council (the “Council”) isa major reform initiative by the Ukraine`s new reform-oriented government tofight corruption, hold governmental agencies accountable for their actions andenhance the transparency, effectiveness and attractiveness of Ukraine`sbusiness environment.
The Council was formed as a consultingand advisory body to the Cabinet of Ministers of Ukraine (the “CMU”)pursuant to a Memorandum of Understanding for the Ukrainian Anti-CorruptionInitiative dated 12 May 2014 (the “MoU”) concluded by the CMU, internationalfinancial institutions, the European Bank for Reconstruction and Development(EBRD) and the Organisation for Economic Cooperation and Development (OECD),and a number of leading Ukrainian business associations.
The Council`s main functions include:
-investigating complaints of businessesregarding acts of corruption and other violations of their rights;
-making recommendations to state and municipalauthorities and companies regarding the prevention of alleged violations; and
-publishing periodic reports regarding theoutcome of various investigations of alleged corruption offences and/or otherviolations of legitimate interests of businesses
Former European Commissioner for Taxation,Customs, Statistics, Audit and Anti-fraud, Algirdas Šemeta is expected to beappointed to the position of Business Ombudsman.
A separate Law On Establishment of the BusinessOmbudsman Institution (BOI) is being prepared and is expected to be passedlater in 2015; the law will replace the Council with the BOI; the legislationwill strengthen and entrench the institution’s functions in fighting corruptionand preventing unfair treatment by government bodies of businesses in Ukraine.
CMS acted as legal advisor to the EBRD regarding the developmentof the legal concept and structure of the Council, as well as drafting andnegotiating the Resolution with the government and business associations. Wecontinue to work closely with the EBRD and other parties to the MoU indeveloping the Business Ombudsman Institution law and in trying to create aninstitution that can become a key instrument to enhancing the transparency ofdoing business in Ukraine and attracting new investment into this market.
Regulations: Resolution No. 691 OnEstablishment of the Business Ombudsman Council adopted on 26 November 2014 andeffective as of 12 December 2014.
Authors:
Daniel Bilak, Managing Partner, Daniel.Bilak@cms-cmck.com
Nataliya Nakonechna,Senior Associate, Nataliya.Nakonechna@cms-cmck.com
