Editor's Note: The Kyiv Post will be tracking the progress made by Ukraine's new, post-EuroMaidan Revolution leaders in making deep structural changes in the national interest. The Reform Watch project is supported by the International Renaissance Foundation. Content is independent of the financial donor.
Security & Defense
Ukraine aims to boost its armed forces by 68,000 to 250,000 soldiers. It also plans to introduce a judicial procedure on how to recognize organizations as terrorist, following suspected Kremlin-backed attacks in eastern Ukraine. Ukroboronprom, a state-owned defense firm, started manufacturing new armored patrol vehicles. The Ukrainian army is supposed to receive the first units this month.
Energy
On Jan.19 national gas provider Naftogaz Ukraine inked an agreement with Polish company Gaz-System to construct a gas pipeline between the two countries. It will provide access to gas from LNG terminals built in Klaipeda, Lithuania, and allow for transit of about 10 billion cubic meters of gas from the European Union, according to Prime Minister Arseniy Yatsenyuk. Naftogaz also announced a public tender for an independent assessment of oil and gas resources in Russian-annexed Crimea.
Rule of law
The Interior Ministry started recruiting candidates for a new patrol service on Jan.19. to replace the notoriously corrupt traffic police. More than 11,000 candidates have applied. Deputy Interior Minister Eka Zguladze expects 2,000 patrol officers to start working in Kyiv by July. On Jan.13, parliament advanced two conflicting bills – one to ensure a fair trial, drafted by President Petro Poroshenko’s advisers, and another on judges, authored by lawmakers and experts. Commercial courts, which hear business disputes and have the reputation for being the most corrupt venue, remain in place in the presidential bill. The presidential bill also allows the president and parliament to reassign judges. Parliament’s justice committee is expected to prepare compromise legislation soon.
Public Administration
The Justice Ministry prepared is making big staff cutbacks, First Deputy Justice Minister Natalia Sevostianova said on Jan. 20. Global auditor Ernst & Young will study the personnel structure. Kyiv Mayor Vitali Klitschko, meanwhile, wants to ensure the professional accountability of medical workers by creating an electronic registry and other steps.
Land/Agriculture
The state-owned ethyl distillery Ukspyrt underpaid some Hr 400 million ($25 million) in taxes. The employees also illegally received Hr 198,000 ($12,375) while its general director illicitly got Hr 287,000 ($179,375), the head of the ministry’s legal department Ihor Chudnovsky said on Jan.19. The sales of liquor at unreasonably low prices, meanwhile, combined with overpriced raw materials cost the state Hr 13 million ($822,000). On Jan.20, the ministry announced recruitment for the heads of 10 state enterprises.
