The lobbying control, approved in February, had been in the pending tray for far too long and had prompted 260 civil society organizations to sign a statement reminding lawmakers of the EU’s emphasis on regulation as part of Ukraine’s efforts to suppress oligarch influence and win eventual accession to the bloc.
According to the Ukraine-EU Association Agreement, and in line with recommendations from the bloc’s anti-corruption group, the Organization for Economic Cooperation and Development (OECD), and the Council of Europe’s Venice Commission, lobbying legislation is a precondition for Ukraine to join the EU.
This has not been a quick process. Lobbying of public authorities has been actively discussed in Ukraine for more than 20 years, and numerous draft laws have been tabled in parliament, though without effect.
The importance of aligning with European standards was highlighted by a government decision to postpone the implementation of another law in the deoligarchization action plan in September, following criticism from the Venice Commission.
Regulating the work of government relations and lobbying specialists is crucial, not only to meet the EU’s membership requirements but to streamline restoration efforts, cut corruption, and provide oversight of foreign financial assistance to Ukraine.
The law is a top priority of the National Agency on Corruption Prevention, which sees transparent and legal lobbying as an important step towards its goals.
Oleksandr Novikov, head of the agency, says the main purpose of the draft law is to regulate the promotion of private interests in the legislative process. This would limit opportunities for corruption and provide citizens with more information about influence on decision-makers.
Due to a lack of legal oversight, illicit lobbying methods have often been used in Ukraine, providing illegal benefits, undeclared funding for politicians and civil servants, and backstage conspiracies.
Debates over land reform, for example, have been marred by allegations of illegal influence and corruption. Critics have accused vested interests, including oligarchs and wealthy landowners, of manipulating legislation and thwarting reform for personal gain.
Take military procurement. In February 2019, an investigative journalism team led by Bigus uncovered revelations regarding multimillion-dollar army procurement contracts orchestrated by the son of Oleh Hladkovsky, the Secretary of the National Security and Defense Council, who also happened to be a longstanding business associate of President Poroshenko.
There have been many such stories so it is no surprise that the absence of regulation has undermined public trust in government and anti-corruption agencies. A survey in January found that 75% of Ukrainians distrust state officials, while the Specialized Anti-Corruption Prosecutor’s Office, the National Agency for the Prevention of Corruption, and the National Anti-Corruption Bureau of Ukraine were distrusted by half the population.
A transparent system would also help with post-war rebuilding.
Ukraine will need tens of billions of dollars in additional financial assistance, which will have to be allocated to prioritize, sequence, and maximize effectiveness. This will hinge on cooperation between the public and private sectors, and people versed in government relations will need to serve as intermediaries.
Lobbying’s role will include articulating each party’s position, exploring legal avenues for implementing projects and prioritizing assets. This last task is particularly delicate, as it will involve the sequence and priority of reconstruction efforts based on clear criteria and stakeholder needs.
Grant programs and donor assistance, whether from governments or international financial institutions, will also need the involvement of government relations specialists to represent the interests of potential contractors to both the state and the donor.
The Biden administration and the US Congress have directed more than $75bn in assistance to Ukraine, which includes humanitarian, financial, and military support, according to the Kiel Institute for the World Economy, and adept government relations specialists have been needed to manage the work.
The lobbying law is a major step forward. It addresses longstanding legislative gaps, aligns with European standards, and would help build public trust in government institutions.
In managing the influx of foreign aid, loans, and grants, effective oversight requires a systematic and transparent approach, which is best facilitated by well-regulated government relations and lobbying sectors.
Kateryna Odarchenko is a political consultant, a partner of the SIC Group Ukraine, and president of the PolitA Institute for Democracy and Development. A specialist practicing in the field of political communication and projects, she has practical experience in the implementation of all-Ukrainian political campaigns and party-building projects.
Europe’s Edge is CEPA’s online journal covering critical topics on the foreign policy docket across Europe and North America. All opinions expressed on Europe’s Edge are those of the author alone and may not represent those of the institutions they represent or the Center for European Policy Analysis. CEPA maintains a strict intellectual independence policy across all its projects and publications.
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