20/12/2021 - Despite Ukraine’s efforts, data strongly suggests that the energy sector remains one of the areas most vulnerable to corruption and related irregularities in Ukraine. To ensure a sustainable reform process in line with international standards, a set of recommendations to reduce corruption-related challenges and eliminate opportunities for corrupt practices must be implemented, according to the new OECD review.
Anti-Corruption Review of the Energy Sector in Ukraine provides an overview of corruption risks, anti-corruption measures implemented by the government, and the investigation and prosecution of corruption in the energy sector. The report is aimed to help policymakers, energy sector stakeholders, anti-corruption bodies, state-owned enterprises (SOEs) and law enforcement bodies identify trends and good practices, and common problems in the energy sector and make informed decisions to eliminate corruption.
Ukraine has made some efforts by signing the Association Agreement with the European Union and adhering to other international commitments, including the Paris Agreement, Ukraine has made the transformation of the energy sector one of its main reform priorities. In recent years, bold strategic steps have been taken to shape a policy reform agenda, build a sound legal and institutional framework, and enhance transparency and integrity in various energy sub-sectors.
More must be done, however, to entrench these reforms in robust legislative and policy frameworks to reduce common factors contributing to corruption across sub-sectors of the energy sector. Key challenges relate to a range of embezzlement schemes; abuse of monopoly status and of public procurement; lack of transparency related to public obligations; undue influence of private interest groups; and unwarranted and ad hoc interventions towards SOEs. To address these concerns, the Review identities several key recommendations to prevent corruption and key anti-corruption prevention and punitive measures, both as a point of departure and as a roadmap for reform going forward.
The OECD and Ukraine have worked together since 1991 to improve governance and stimulate economic development. In 2014, the two parties signed a Memorandum of Understanding and developed a joint Action Plan to identify the priority areas for OECD work in Ukraine. This work has helped build capacity, strengthen institutions, and support reforms in many areas of public policy, including investment, anti-corruption, competition, public administration and corporate governance. The OECD is supporting Ukraine’s energy sector reform with the financial support of the Government of Norway.
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