The OECD has worked with Ukraine for a quarter-century, supporting the country's efforts to transform its economy and integrate more deeply into international markets and institutions. The OECD's co-operation with Ukraine has been greatly intensified since 2014, under a Memorandum of Understanding between the OECD and the Government of Ukraine signed in the wake of the "Euromaidan Revolution". Under the Action Plan agreed for the implementation of the Memorandum, the OECD works to support reforms in Ukraine in three key areas identified as priorities by the government: anti-corruption; governance and rule of law, and investment and business climate.
On 15 June 2018, the OECD Deputy Secretary-General Mari Kiviniemi and the First Deputy Prime Minister of Ukraine Mr Stepan Kubiv signed the renewal of the OECD-Ukraine MoU until 2020. The renewal reflects their determination to continue working together in support of Ukraine’s reforms.
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Areas of co-operation
Work under the Action Plan is financed by OECD members in close co-operation with other international organisations. The Plan provides for over 30 OECD reviews and projects in Ukraine and also sets explicit goals with respect to Ukraine's participation in major OECD Committees and other bodies, as well as its adoption of OECD principles and standards in such areas as corporate governance, tax administration, investment policy and competition. The current work of the OECD in Ukraine encompasses a wide range of policy areas, including:
- Agriculture: In June, the OECD launched the 2017 Agricultural Policy Monitoring and Evaluation report which includes a chapter on Ukraine. The report confirms that agriculture remains one of the most important economic sectors in Ukraine and highlights the need to develop a modern land cadastre as a condition for agricultural land market reform.
- Competition: In March 2017, the OECD launched Ukraine’s Competition Peer Review, which reviews the Antimonopoly Committee’s (AMC) progress in implementing the recommendations found in the peer reviews of the OECD (2008) and UNCTAD (2013) with a particular emphasis on post-Euromaidan developments regarding the competition regime, institutional arrangements and the work product. Relevant recommendations from the peer reviews are reiterated.
- Corporate affairs: The government has undertaken a reform of the corporate governance of state-owned enterprises on the basis of the OECD Guidelines for the Corporate Governance of SOEs, including mandatory independent audit and information disclosure requirements building on an OECD review of Antonov. This has already led to major changes in the governance of some of Ukraine's largest companies, including the railway monopoly and Naftohaz, the state oil and gas company.
- Education: In March 2017, the OECD launched the review of Integrity in Ukraine’s education system that addresses the challenges posed by integrity weaknesses in Ukraine's education system and provides recommendations to eliminate risks and restore public trust in a merit-based education system. In 2018, Ukraine will participate in the Programme for International Student Assessment (PISA) for the first time. The OECD is reviewing Ukraine’s capacity to help prepare the country to successfully implement this large-scale assessment.
- Environment: The OECD is working with Ukraine to help "green" SMEs, exploring ways to mobilise commercial credit for green investments, as well as analysing instruments for financing water supply and sanitation. In March 2017, the OECD launched the first National Policy Dialogue on Water in Kyiv in collaboration with the Ministry of Ecology of Ukraine. Also, Ukraine is part of the EaP GREEN Programme which assists the six countries of the European Union Eastern Neighbourhood Partnership in progressing faster towards a green economy framework.
- Integrity: Since 2014, the OECD has been directly involved in supporting some of Ukraine's most important anti-corruption reforms, including the creation of the Business Ombudsman Council and the National Anti-Corruption Bureau of Ukraine (NABU). Through the Anti-Corruption Project, the OECD is also involved in a diverse range of capacity-building activities, assistance in the drafting of legislation, and in the establishment and development of the National Asset Recovery and Management Office.
- Public governance: The OECD contributed to the elaboration of the draft Public Administration Reform Strategy and the preparation of the new civil service law adopted in 2015. Further work includes support for measures to strengthen policy making, accountability, service delivery, public finance management and public procurement. The OECD is also involved in supporting Ukraine's decentralisation reform Supporting Decentralisation in Ukraine, which is unfolding broadly in line with the recommendations of the 2014 OECD Territorial Review of Ukraine.
Participation in OECD thematic programmes
- Eurasia Competitiveness Programme: Ukraine has been part of the Programme since its inception. The ECP carries out country-specific projects, and also involves Ukraine in its regional work through peer reviews and in the regular assessment of SME policies in Ukraine.
- GREEN Action Programme: For more than 20 years, Ukraine has been part of this Programme, which promotes the integration of environmental considerations into economic, social and political reforms of countries in the ECCA region.
- SIGMA Programme: Ukraine has been a part of the EU-OECD Support for the Improvement of Governance and Management (SIGMA) programme since 2008. Ukraine relies on SIGMA’s assistance in priority areas such as financial control, civil service legislation, public administration reform and public financial management.
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