Business Corruption in Ukraine
A combination of rampant corruption, market volatility and political instability in Ukraine represents major business risks for foreign investors. Bribery and facilitation payments are widespread among Ukrainian public officials, severely complicating business registration and trade procedures for international companies. Burdensome regulations and favouritism impede fair competition. Ukraine's public procurement lacks transparency due to vague regulations, monopolistic practices and the exemption of state actors from transparency and competition requirements. Ukraine's Constitution states the president is not allowed to perform any kind of paid professional activity or to be a member of a board of directors at any corporation that aims to generate profit, but President Poroshenko owns a chocolate corporation that saw profits grow by 900% from 2013 to 2014 (Information, Mar. 2015), suggesting extensive corruption and embezzlement by top-level Ukrainian officials. Corruption, extortion, bribery of foreign public officials, abuse of office and facilitation payments are criminalised under the Criminal Code, and official corruption - including conflicts of interest, asset disclosure and gifts and hospitality - is also covered under Ukraine's legislative framework. Legislation applies to foreign persons and corrupt misconduct in the private and public sectors. The Law On the Fundamentals of Anticorruption Policy in Ukraine to Be Effective within 2014-2017 introduces measures for monitoring and effective implementation of anti-corruption provisions. However, a weak judicial system limits the enforcement of Ukraine's extensive anti-corruption laws.
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