Recently, a Ukrainian delegation participated in the 98th plenary meeting of the Group of States against Corruption (GRECO) in Strasbourg, where they reported on the implementation of recommendations for preventing corruption among Members of Parliament, judges, and prosecutors.
Notably, asset declarations were reinstated, automated verification of declarations was introduced, lobbying activities were regulated, and judicial integrity was strengthened. These steps are presented as significant progress on the path toward European integration. However, from a business perspective, the reality looks somewhat different.
In fact, abuse of power within law enforcement and judicial bodies has not disappeared. It continues to erode the remnants of citizens’ trust in the state, deter investors, and create chaos in the legal system of a country at war. An economy already experiencing difficulties is suffering even greater capital outflows due to this, creating unequal conditions for business, increasing the shadow sector, and forcing enterprises under constant pressure to spend resources on bribes or self-defence.
All this hinders the country’s development and threatens its future.
Draft law No. 11443, which the Verkhovna Rada plans to consider in the second reading, provides for a significant expansion of the powers of law enforcement agencies regarding the temporary restriction of legal entities’ activities. Specifically, companies may be prohibited from participating in public procurements, using licenses, engaging in privatisation or leasing state property, obtaining permits for subsoil use, as well as providing advertising, engaging in sponsorship, and participating in public-private partnerships.
Additionally, the document envisages a ban on receiving benefits, state aid, access to international financial resources, and even acquiring the status of a Diia City resident. All these measures can be initiated by a prosecutor or investigator based on “sufficient grounds to believe,” without summoning representatives of the legal entity to court.
What “sufficient grounds” mean in the minds of law enforcement agencies—business can describe in a collection of works spanning many volumes. In practice, this is any fabricated reason that can serve as a basis for stopping business operations, asset seizure, and other manipulations widely used by unscrupulous competitors, raiders, and other wrongdoers.
The consequences of implementing this draft law could be catastrophic for the economy and society. Specifically, it interferes with the economic activities of enterprises, leads to job cuts, and disrupts the supply of critically important goods such as ammunition or equipment during wartime.
The law creates grounds for pressure on business and the emergence of new corruption schemes that undermine the already shaky trust in state institutions.
Systemic Pressure on Business: Statistics and Realities
According to court registry data, in 2023, a record 43,138 criminal proceedings were initiated against businesses, the highest figure since 2012. Over 5,000 Ukrainian companies became subjects of these cases.
Analysts note that up to 80% of criminal cases against businesses do not result in convictions or do not reach court at all, which may indicate their groundlessness or use as a tool of pressure. Entrepreneurs are forced to spend resources on defending against unfounded accusations instead of investing in the development of their companies.
We should also not forget about raiding, which remains a serious problem that worsens investment attractiveness and complicates doing business.
In the period from January to October 2022, 120 criminal cases related to raiding were registered, which is more than five times less compared to the same period of the previous year. However, in the first five months of 2024, 188 criminal proceedings on raiding were recorded, which is 1.3 times more than the indicators of the corresponding period in 2023.
This indicates that most raider attacks remain without proper investigation and punishment of the guilty. Entrepreneurs often face aggressive, and sometimes forceful, attacks on their enterprises, accompanied by document forgery and illegal court decisions. These actions not only cause material damage but also undermine the already shaky trust in the law enforcement and judicial systems.
Laws that should protect business, including amendments to the Criminal Procedural and Civil Codes, are still under discussion. The registry of unscrupulous law enforcement officers and judges, which was supposed to become a tool for punishment for abuses, practically does not work.
This indicates a lack of real political will for changes. Entrepreneurs continue to face corruption and bureaucratic obstacles that hinder the development of business and the economy as a whole. Without proper legislative protection and effective work of law enforcement agencies, business remains vulnerable to abuses and unlawful actions.
When Reforms Remain on Paper
As a business owner with many years of experience, I have repeatedly faced situations where declared reforms had no impact on real life. Unjustified inspections, delays in issuing permits, raiding, unfounded sanctions, and extortion of bribes—all this remains part of the everyday life of a Ukrainian entrepreneur.
Despite official statements about fighting corruption, in practice, the situation changes little. Although if desired, one can simply look at how others have done it. For example, at Latvia, which has achieved significant success in combating corruption and creating a favorable environment for business.
After joining the European Union in 2004, Latvia implemented a series of reforms aimed at increasing transparency and accountability in the public sector. The Corruption Prevention and Combating Bureau was established, which actively prosecutes corruption offenses at all levels.
Thanks to these measures, Latvia has improved its positions in international rankings and created more favorable conditions for doing business. This experience demonstrates that political will and decisive actions can lead to real changes in the fight against corruption.
The Voice of Business Must Be Heard
A positive development is that businesses have begun to speak openly about their problems. This is already a small victory. In June 2023, 42 entrepreneurs united in the public movement “Manifesto 42” to protect against unlawful actions. Among the founders of the movement are the Federation of Employers of Ukraine, CEO Club Ukraine, “Ukrlegprom,” the Anti-Raider Union of Entrepreneurs of Ukraine, the Association of Entrepreneurs-Veterans of the ATO, and others.
However, pressure from law enforcement remains. Unjustified searches, account arrests, property seizures, and the opening of numerous criminal proceedings that often do not reach court—all this continues to be a reality for Ukrainian entrepreneurs.
Especially alarming in this context is draft law No. 11443, which creates new opportunities for “manual control” of business by law enforcement officers.
The public movement “Manifesto 42” has already appealed to the Verkhovna Rada with a call to remove this project from consideration, as it allows, at one’s own discretion, to restrict the activities of enterprises through broad powers of investigators and prosecutors.
As a business owner, I share these concerns: in the current conditions, such a draft law will not only increase corruption pressure but also threaten even greater chaos in the business environment.
Ukrainian entrepreneurs are ready to work and develop the economy, but for this, they need state support, not obstacles. If the authorities do not provide real protection for business from corruption, raiding, and unlawful actions of law enforcement officers, this will not only push entrepreneurs to seek opportunities outside the country but also seriously undermine Ukraine’s economic potential.
It’s time to stop creating barriers for business and instead ensure fair conditions that will allow the country to move forward. Either we create fair conditions for business development now, or we lose the future of the economy forever.