Ukraine gov’t pursues anti-corruption measures amid accusations

Ukraine’s government approved numerous anti-corruption measures on Dec. 14. Prime Minister Arseniy Yatsenyuk signed a resolution creating a new payment system for managers of state enterprises, the Cabinet of Ministers website announced. Most notably, the system makes managers’ salaries competitive with market rates. “It’s more advantageous to pay market salaries to top managers than have state companies in which the managers earn low salaries but work in the interests of oligarchs or politicians,” Economy Minister Aivaras Abromavicius said.

A Donetsk regional economic court issued a ruling in late November ordering a firm owned by the Kliuyev brothers to return EUR 41 mln in debts and fines owed to state-owned Ukreximbank, the nashigroshi.org news site reported on Dec. 14. This company was used to borrow funds for the purchase of another firm that controlled the Mezhyhiria residence, a suburban mansion illegally privatized by former President Yanukovych.

Meanwhile, oil refining firm Ukrtatnafta, controlled by billionaire Igor Kolomoisky, has denied a request by state-owned Ukrtransnafta to return state oil to the system, reported on his Facebook page on Dec. 14 Andriy Pasishnyk, the executive director of Naftogaz of Ukraine. Instead, Ukrtatnafta is continuing to demand in court an alleged debt of UAH 375 mln owed by Ukrtransnafta for the alleged rent of reservoirs. Pasishnyk accused Kolomoisky of pursuing the lawsuits to continue reaping profit at state expense.

The Reforms Resuscitation Package and anti-corruption civic organizations accused the government in a Dec. 14 statement of sabotaging the launch of the National Corruption Prevention Agency, which is supposed to monitor the finances of politicians and parties. Its selection commission – dominated by Cabinet representatives – approved candidates to the agency’s leadership who are loyal to Prime Minister Yatsenyuk and rejected those nominated by civic organizations. At least two of the three agency heads were elected illegitimately, while the agency is supposed to have five heads, the statement said. “This makes it impossible to elect the agency’s head and delays the launch of the agency’s work for an undetermined period,” the statement said.

Zenon Zawada: “One step forward, two steps back” can describe the Ukrainian government’s anti-corruption efforts, which are not good enough amid Russian aggression. Little has changed since last year in the pace and manner of the government’s anti-corruption efforts, which are patchy and inconsistent. Measures are applied in piecemeal fashion, without an overarching long-term strategy that introduces permanent structural reforms ensuring equality before the law of all citizens.

The targets of anti-corruption measures are often political opponents to the current government, which continues to get accused of manipulating state bodies to serve their interests. Civic organizations that are critical to these efforts are alienated from the processes that they allege are corrupt. All these signs point to the likelihood of the coalition’s collapse in the next few months as the public’s patience has worn out.