Ukraine and EBRD launch anti-corruption initiative

Ukraine and the European Bank of Reconstruction and Development (EBRD) signed a memorandum of understanding on May 12, launching an initiative aimed at combating “endemic” corruption in Ukraine, according to an EBRD press release.

“Ukrainian Prime Minister Arseniy Yatsenyuk and EBDR President Suma Chakrabarti signed a Memorandum of Understanding that establishes the position of Business Ombudsman, who will be able to detect facts of corruption and publicly contact the government if any of them occur in customs houses, tax offices or state regulatory bodies,” the media wrote.

The memorandum of understanding was co-signed by the Organisation of Economic Co-operation and Development (OECD), as well as Ukrainian business associations. Among the initiative’s proposals are the creation of an independent business ombudsman and new rules encouraging firms to disclose their internal anti-corruption procedures.

The business ombudsman will be elected based on consensus between relevant Ukrainian business associations and the government, Yatsenyuk said.

Widespread corruption at all levels of the Ukraine economy is seen as one of the main barriers to increased investment in the country over the long term.

“Corruption is a scourge, hollowing out the economy, eating away at political life and undermining democracy,” said Chakrabarti. “Just signing this anti-corruption initiative will not eradicate corruption in Ukraine. It is an important step, but just the very first step, down a very long road.”