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Russia will likely live with the panel decision. It is not clear yet if Ukraine will appeal the case – a decision is expected after the presidential elections in the coming weeks Kyiv. For all its frustrations about blocked exports to Central Asia: it will need to consider its broader relationships with Russia, as well as whether it wants to rock the boat with the WTO and potentially provoke the very United States.
2.4 Poroshenko rushes out special anti-corruption court
After fiercely resisting it for two years, President Petro Poroshenko has suddenly rushed through the establishment of anti-corruption court (ACC) in a desperate bid to improve his standing ahead of the second round of Ukraine’s presidential elections on April 21.
Ukraine’s international donors have insisted on the creation of the ACC as part of an attempt to stamp out endemic corruption in the country. However, asbne IntelliNews has argued “corruption is the system” as without functioning institutions “rewarding” minons with opportunities to enrich themselves is the easiest and most effective way for a president to bind officials to his cause and the ability to sack or jail officials is an effective cudgel to control them.
Poroshenko spent much of last autumn arguing that having the ACC imposed on Ukraine – Ukraine’s major donor tied the passage of the law underpinning the ACC to agreeing on a new downgraded Stand by agreement (SBA) from the previous more generous Extended Fund Facility (EFF) – violated Ukrainian sovereignty. However, desperate for cash to meet debt obligations, he finally caved.
Poroshenko announced on April 11 the launch of the special court to try corruption cases, as part of a flurry of activity to shore up his reform credentials ahead of a presidential election after recent polls show that he is trailing badly behind front-runner outsider and comic Volodymyr Zelenskiy.
The court is part of a new triumvirate of bodies to fight corruption. The National Anti-Corruption Bureau of Ukraine (NABU) is the investigative part that also includes the Special Anti-Corruption Prosecutor’s Office (SAPO), which carries out the prosecutions in parallel to the General Prosecutor’s Office, but is also entirely independent from the government’s control. What is missing is an independent court to hear the cases investigated by NABU and prosecuted by SAPO – the ACC.
Poroshenko said the selection process for the judges had taken seven months.
“Today we see the result: 38 new judges proceed to perform their duties in the new court,” he wrote on Twitter on April 11. “They have the levers and tools to be successful, judicial reform granted them independence from the legislative and executive branches and from the president as well.”
2.5 Bond market revolution looms as repayments soar
A revolution in the Ukrainian bond market is about to take place this month that should provide ample financing, raised on the domestic, not international, capital market to deal with a debt mountain Ukraine is facing this year.
In the next five years bond repayments will rise significantly and it was not clear whether the government could make its payments. A restructuring deal
11 UKRAINE Country Report May 2019 www.intellinews.com