Zelensky pushes judicial reform and investment nannies through parliament

President Volodymyr Zelensky held a meeting with the
parliament’s chairman Dmytro Razumkov and Prime Minister Denys Shmyhal to push
his draft laws on a new judicial reform to be considered by MPs next week, the
presidential press service reported. “The judicial system in its current
format has proved its unsuitability. Ukrainians do not trust the courts, this
institution is too corrupt and too shaky,” Zelensky said, adding that the
changes in the judiciary are the key to a strong Ukraine and a step forward on
the path of Ukraine’s European integration.

“Zelensky is once again trying to deceive
international partners by giving them a fake renovation of the High Council of
Justice,” pravda.com.ua news site wrote on Feb. 26 referring to the conclusions
of NGOs Anti-corruption Action Center, DEJURE foundation and Avtomaidan which
have criticized the proposed amendments.

At the meeting, economic legislative initiatives were
also considered. The parliament will be suggested to complete the vote on a
package of bills to support projects with significant investments, or the
so-called investment nannies. “This package will help the ‘investment nannies’
project start working in full The law will provide state protection and legal
assistance to foreign investors who will initiate investment projects worth EUR
20 mln and more,” Zelensky’s press service reported.

Yuri Svirko: The
proposed two pieces of legislation clearly contradict each other. Ukraine should
not have two different legal systems for an investment project worth USD 20 mln
and a similar project worth EUR 20 mln. Each and every investor, like each and
every citizen of Ukraine, must have equal legal protection under the guaranteed
rule of law. While Zelensky is absolutely right in assessing Ukraine’s current
judicial system as unsuitable, he misses the main point which is the need to
reload the whole system completely. New judges who can be trusted are badly
needed foremost for the Ukrainian people, including Zelensky himself as the
president, and not for the IMF nor for some privileged investors. However, it
could happen that the IMF welcomes any move to reform the judiciary, even in
the way which has been criticized by Ukrainian NGOs.

Amendments to the Law on the High Council of Justice
to enhance its selection process and ensure that its members have impeccable
reputation are among the key prerequisites to the next IMF tranche. The tricky
thing is that the future amendments could ensure this on paper, but some future
members of the Council still might have no integrity.

The key question is whether such paper amendments will
be enough to address the IMF’s concerns. As Zelensky recently complained,
the IMF is listening not only to the government’s official position, but also
to NGO representatives (he called them lobbyists). That leaves a risk that the
new legislative initiatives will not be enough for Ukraine to qualify for the
next review under the IMF program.