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2.2 ​European parliament slates Ukraine for failing to reform
The European Parliament (EP) adopted a resolution on February 10, criticizing Ukraine’s implementation of the EU Association Agreement​. The EP reiterated that delivering tangible results in the fight against corruption is essential in order to maintain a high level of support for the reform process among citizens, as well as to improve the business environment and attract foreign direct investments.
“Fighting corruption and reforming the judicial system seem to be the eternal points on the EU-Ukraine agenda. While other reforms, such as decentralization or deregulation, are welcomed by the EU, European policymakers remain disappointed with the permanent reform of Ukraine’s courts that continue to undermine the essence of the rule of law. As many Ukrainian and foreign bankers and business people say, Ukraine’s courts have always been the biggest problem for investment and development. Although President Zelenskiy vows to launch a new reform of the judiciary, the EU and the West in general would like to get “visible effects” – the sooner the better,” Yuri Svirko. “While the EP resolution will have no immediate effect on the EU-Ukraine relations, including the visa-free travel regime or further trade liberalization, it is still an early warning signal for Kyiv.”
The resolution reads that the EP “is deeply concerned by the high degree of systematic political pressure and by the acts of intimidation perpetrated against the Chairman of the National Bank of Ukraine, unfortunately not for the first time, which led to his resignation in July 2020” and urges the Ukrainian authorities to refrain from exerting political pressure on independent economic institutions and enforcement authorities, and to ensure that their independence is preserved as a guarantee for the correct functioning of the market.
The EP regrets that the judiciary is still one of the least-trusted institutions in Ukraine and is seriously concerned by the state it has been in since the October 2019 reform, urging the Ukrainian authorities to continue and accelerate the reform of the judiciary. “No visible effects have been achieved in the de-oligarchisation of the country, as oligarchs still have a strong impact on the Ukrainian economy and politics, in particular in media ownership and influence over the judiciary and the law enforcement system,” emphasizes the EP resolution.
The EP calls on the Ukrainian authorities to speed up the process of de-oligarchisation and regrets the increasing number of state-owned enterprises, urging to further advance their privatisation in order to modernise and improve the functioning of its economy and avoid oligarchisation. It welcomed the completion of the unbundling of Naftogaz in 2019 and the creation of a legally independent gas transmission system operator but requested that the European Commission screen Ukraine’s compliance with European Union acquis in the energy sphere with a view to the further integration of energy markets.
The EP also regrets that the new wholesale electricity market, that started operating in Ukraine since July 2019, is still not competitive by EU standards and urges Ukraine to complete its reform and improve the level of compliance
7​ UKRAINE Country Report​ March 2021 ​ ​www.intellinews.com