REUTERS
Part of EU funding would be in grant form.
Commissioner for European Neighborhood Policy and Enlargement Negotiations Johannes Hahn says the European Union is developing a new investment program for Ukraine, a 'Reform Contract for Investment.'
"Our proposal is that in the context of the new EU External Investment Plan, a total of UAH 1.6 billion (EUR 50 million) could be specifically earmarked for Ukraine this year, inter alia for on-lending by the banks and therefore investment in the real economy. For a country the size of Ukraine, this may not sound much. Yet if used wisely, it could leverage up to UAH 16 billion (EUR 500 million) in private investment," Hahn wrote in his latest op-ed on Facebook on April 25.
Yet, although this part of EU funding would be in grant form, there will be concrete actions that need to be taken in order to ensure the trust of investors, Hahn said. In his words, Ukraine needs to introduce independent regulation in the energy sector and launch the full-fledged work of members of the National Energy and Utilities Regulation Commission (NEURC), finally endorse a business ombudsperson and cancel e-declaration of anti-corruption activists' assets.
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"The allocation of the initial UAH 1.6 billion (EUR 50 million) for this year will only happen if Ukraine is taking the following [three] actions before the Rada Verkhovna starts its summer recess," Hahn wrote.
The first action relates to the energy regulator. In order for the energy market to function properly and minimize opportunities for corruption, there must be independent regulation. "We attach particular importance to seeing that the new members of the Energy Regulator are allowed to take up and to fully exercise their functions, in compliance with the law passed in the Rada and approved by the President nearly 18 months ago," Hahn said.
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The second action relates to the business ombudsman. The current ombudsman is already working to create a better business environment. Yet he is operating on a provisional basis only. "We believe that it would send out exactly the right signal were the autonomy and independence of the Business Ombudsman to be set in stone, just as proposed under the draft law currently before the Rada," Hahn wrote.
The third action relates to the current requirement on anti-corruption activists to submit e-declarations and declare their assets.
Declarations of assets are made by public officials in order to rule out misuse of the state positions to which they have been appointed, not by private citizens dedicated to exposing corruption. "By imposing this requirement Ukraine shoots itself in the foot, lending credence to those who argue that the Ukrainian authorities are more concerned to fight those who expose malpractice than they are to truly tackle corruption itself," Hahn said.
"All three actions relate to the establishment of trust in the new Ukraine. If the state can demonstrate that it is capable of respecting the independence of the Energy Regulator and of the Business Ombudsman and the unconditional right of ordinary Ukrainian citizens to go after corruption, then there is a better chance that investors, international and domestic alike, will return to Ukraine, driving the economic growth necessary to raising living standards across the country," he added.