Ukraine Country Profile

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Licences, Infrastructure and Public Utilities

Individual Corruption

Many citizens find the process of obtaining licences and permits to be plagued by corruption, as illustrated by Global Corruption Barometer 2013. Citizens frequently report offering or being compelled to pay a bribe in connection with obtaining various permits and licences. Citizens also perceive corruption in relation to getting utilities connected and repaired as widespread. The Ukrainian health system is also affected by corruption, with more than one-third of households who had contact with medical services in 2012 report having paid a bribe, according to the same source.

Business Corruption

The licences and permits regime is reportedly excessive, even after cutbacks, and constitutes an obstacle to doing business in the country, as reported in the Investment Climate Statement 2013. Companies doing business in Ukraine report extortion in the process of obtaining business licences and permits. Business executives surveyed in the Global Competitiveness Report 2013-2014 report that dealing with government administrative requirements can be relatively burdensome.

According to the Investment Climate Statement 2012, government officials responsible for issuing licenses often demand documents that are not compulsory, deliberately conceal information or try to confuse a potential business applying for a licensee. Officials may also delay the process of issuing documents in order to encourage businesses to offer a bribe in return for expedited processing.

Frequency

Doing Business 2014:
- On average, it requires 10 procedures and takes 73 days at a cost of approximately 607.1% of income per capita to build a warehouse.

The Global Competitiveness Report 2013-2014:
- Business executives give government administrative requirements (permits, regulations and reporting) in Ukraine a score of 2.6 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all').

Global Corruption Barometer 2013:
- Citizens give the medical and health services a score of 4.2 on 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').