You're reading: Reform Watch – July 10

Editor's Note: The Kyiv Post tracks the progress made by Ukraine's post-EuroMaidan Revolution leaders in making structural changes in the public interest in six key areas: economy & finance, security & defense, energy, rule of law, public administration and land. The following measures were in focus on July 2 - July 9.

Overview

Parliament cancelled an extraordinary session planned for July 9, during which it was supposed to vote on cancelling a loan conversion law passed on July 2. The measure, which allows borrowers to repay foreign-currency loans at the exchange rate at which they were initially taken, violates the current International Monetary Fund agreement, according to critics. It would also cost Ukraine’s banks Hr 100 billion or nearly $5 billion.

Parliament speaker Volodymyr Groysman said on July 8 the legislature would not go on its summer break, scheduled for July 17, until it adopts all of the important legislation on its agenda.

“I want to appease those concerned about the cancellation of the extraordinary session: We … will continue to work after July 17,” he said.

Rule of Law

On July 2, parliament passed key laws on public prosecution reform, a national police force and the structure of the Interior Ministry.

On July 3, Ukrainian President Petro Poroshenko approved a motion by parliament’s national security and defense committee to exempt ex-Kyiv Police Chief Oleksandr Tereshchuk from lustration. Oleksandra Drik, head of the non-governmental Public Lustration Committee, criticized Poroshenko’s order, saying he could just as easily reinstate Vitaly Zakharchenko, the fugitive former interior minister. “Why pretend he cares about EuroMaidan values, the people who were killed and wounded?” Drik asked rhetorically.

Tereshchuk headed the Volyn Oblast regional Interior Ministry in November 2012-February 2014, and was dismissed under the terms of the lustration law, meant to cleanse government of former Communists and officials who worked for the regime of ousted ex-President Viktor Yanukovych.

Security & Defense

Only charity funds and the Ministry of Defense are now allowed to collect money for Ukraine’s soldiers, according to a July 7 decree issued by the Cabinet of Ministers.

From July 7, applicants can file documents online to cross the demarcation line in the east, according to the Security Service of Ukraine. “After obtaining a permit, individuals are allowed to pass through checkpoints provided they identify themselves with a passport or other identification,” the SBU statement says.

Energy

On July 7, Prime Minister Arseniy Yatsenyuk proposed the testing of a new energy market model in September-October. It will introduce an exchange where direct contracts between consumers and energy producers can be traded. Yatsenyuk also ordered the Energy and Coal Industry Ministry to report in September on its readiness for the winter heating season.

Public Administration

Deputy General Prosecutor Davit Sakvarelidze announced competitive openings for 700 new prosecutors. The selection process starts on July 15.

“For the first time in Ukraine’s history, we will announce an open competition for the heads and deputy heads of local prosecutor’s offices,” Sakvarelidze said.

To support Ukraine’s woodworking and furniture industry and create new jobs, Poroshenko signed a law prohibiting the export of raw lumber and timber products for 10 years. The law was adopted on April 9. Furniture manufacturers and associations of woodworking organizations were insisting on the immediate signing of the law by Poroshenko. The head of the committee on ecological policy, Mykola Tomenko, said he would sue parliamentary speaker Groysman for delaying the signing of the law.

Starting from July 7, violators of road traffic rules are allowed to pay their fines online at gospay.com.ua

Austria will be removed from the list of countries subject to transfer pricing controls on Aug. 1. The decision was taken based on information received from an Austrian diplomatic envoy on June 18, according to Cabinet of Ministers. Austria, Turkmenistan, Hong Kong and Niue were included in the list on May 14, while Albania was excluded.

On June 3, parliament sent a draft of the public procurement bill to prepare for the first of two readings. If adopted, it would open up access for Ukraine to the world’s $1.7 trillion procurement market. Deputy Minister of Economic Development and Trade Maksym Nefedov said: “Besides the quality seal confirming Ukraine meets international standards, we will obtain access to the procurement markets of 43 members of this [World Trade Organization’s Government Procurement] agreement… that were previously closed to Ukraine.”

The State Fiscal Service has reduced the time it takes to register a business to 24 hours.

To extend the role of society in democratic governance, on July 2 parliament adopted the law on e-petitioning. If signed by a minimum of 25,000 citizens within three months on the website of a non-governmental organization or addressee – the president, parliament, or Cabinet of Ministers – a petition must be considered by the respective government body or agency.

If the petition is viable, the responsible body has to take action on the issues presented. Following an examination of the petition, authorities can introduce bills to address the questions raised in the petition.

On July 1, Ukraine’s Ecology Ministry introduced the first electronic declaration service in Dnipropetrovsk Oblast. Now businesses can declare production waste through an electronic form at menr.in.ua. This service will become available throughout Ukraine by the end of the year.