OECD warns Kyiv about consequences for defence investments in Ukraine due to anti-corruption agencies issue
The Organisation for Economic Co-operation and Development (OECD) has warned Kyiv that undermining anti-corruption agencies will negatively affect defence investments in Ukraine and the financing of its reconstruction. The OECD has also explained what steps Kyiv must take to resolve the crisis.
Source: a letter addressed to Iryna Mudra, Deputy Head of the President’s Office, as reported by European Pravda
Details: In the letter dated 22 July, Julia Fromholz, Head of the OECD Anti-Corruption Division, expressed deep concern about recent developments related to the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAPO), namely the adoption of draft law No. 12414.
She stated that this law (which was enacted shortly after Kyiv received the letter, as President Volodymyr Zelenskyy signed it on the evening of 22 July) significantly undermines the independence of Ukraine’s specialised anti-corruption agencies. Fromholz also said that these legislative changes could be perceived by the OECD working group as a weakening of Ukraine’s compliance with its commitments.
Fromholz wrote that the law threatens Ukraine’s aspiration to join the OECD in the future. She therefore called on Ukraine and Zelenskyy to veto the bill.
"In case this letter reaches you after the draft is signed into law, we call for further legislative amendments to preserve the independence of specialised anti-corruption bodies. I respectfully urge that this issue is treated with the utmost seriousness," the letter reads.
Fromholz also warned of consequences for Ukraine if Kyiv fails to take action to address the issue.
Quote: "If [the issue] left unresolved it would not only risk undermining Ukraine’s OECD Anti-Bribery Convention accession prospects and its efforts to join the OECD, but also damage its credibility among international partners, particularly those considering investment in Ukraine’s defence sector and long-term reconstruction."
Background:
- Even before the vote in the Verkhovna Rada (Ukrainian parliament), the European Commission expressed concern about the situation surrounding NABU and SAPO. The Commission stated that these bodies are essential for Ukraine’s reform agenda and must operate independently in order to fight corruption and maintain public trust.
- The adoption of the law caused concern for EU Enlargement Commissioner Marta Kos.
- Taras Kachka, Ukraine’s newly appointed Deputy Prime Minister for European Integration, assured Kos that the Ukrainian authorities remain committed to their anti-corruption obligations.
- After signing law No. 12414, President Volodymyr Zelenskyy stated that the anti-corruption agencies would continue to function, but without Russian influence.
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