The 250th issue of the Reforms Index, covering the period from October 21 to November 3, includes four regulations, with the Index scoring +0.8 points. In the previous issue, the Index stood at +1 point. The main reform of this issue is the law on transparent construction procurement. Other notable regulations include laws on state climate policy and plea agreements in cases of corruption offenses.
Graph 1. Dynamics of the Reform Index
Graph 2. Values of the Reform Index and its Components in the Current Assessment Round
Law on transparent construction procurement, +2 points
Law 3988-ІХ requires procurement authorities to publish information about the prices of construction materials on Prozorro. Now, along with the construction work contract, the procuring party must disclose data on the cost of construction materials, their country of origin, the quantity of materials, and prices for related services (such as material preparation, storage, and transportation). This information must be made public within three days of signing the contract. Any changes made to the contract must also be disclosed.
For purchases related to fortification structures, information must be published within 10 days of signing the contract. However, only the name of the procuring authority and the prices of construction materials will be made public, while details such as the contractor’s name, construction location, and other specifics will remain confidential.
Information about the Reforms Index project, the list of Index experts and the database of the regulations assessed are available here.
Expert commentary
Olha Melnyk, Lawyer at the Anti-Corruption Action Center:
“Law 3988-IX closes major corruption loopholes in construction. Journalists have repeatedly uncovered cases where officials inflated prices for construction materials on public projects, pocketing the difference. As much as 80% of clients for high-cost construction projects never disclosed the prices of materials, even when enormous sums were involved. In 2022–2023, the state spent over UAH 500 billion on construction procurements, yet due to a lack of public access to information, journalists could only uncover corruption in tenders through requests or whistleblower reports.
Now, all construction pricing information will be made public, making it easier to identify attempts by state bodies to inflate prices for corrupt purposes. Data on pricing for most construction projects (e.g., kindergartens, schools, hospitals) became open immediately upon the law’s enactment. For fortification projects, pricing transparency will follow 60 days after the law comes into force, with only the procuring authority’s name and material prices being disclosed.
Adopting the law has several positive aspects. From now on, identifying signs of corruption in construction will become easier by analyzing documents with prices on Prozorro. Additionally, international partners providing financial aid will have evidence that their funds are being spent transparently.”
Law on the fundamental principles of state climate policy, +1 point
Law 3991-IX defines the key goals of state climate policy. The primary long-term goal outlined in the law is achieving climate neutrality. This requires reducing greenhouse gas emissions by 65% by 2030 compared to 1990 levels, including through the development of renewable energy sources, as well as the advancement of environmentally friendly and low-carbon technologies and infrastructure.
Climate Neutrality refers to the neutral impact of human activities on the climate, meaning net-zero greenhouse gas emissions. This is achieved when the amount of emissions released into the atmosphere does not exceed (or is even less than) what can be naturally absorbed.
The government plans to stimulate low-carbon development through the introduction of a carbon (environmental) tax for domestic producers, the establishment of an emissions trading system (ETS) for greenhouse gases, financial support for business efforts aimed at reducing greenhouse gas emissions, and the reduction of support for enterprises whose activities do not meet low-carbon development requirements (enterprises involved in the extraction, transportation, processing, and consumption of fossil fuels).
The Ministry of Environmental Protection and Natural Resources of Ukraine will monitor measures aimed at achieving the goals of state climate policy. The Scientific and Expert Council on Climate Change will evaluate state policies on climate change mitigation and adaptation.
Expert commentary
Roman Nitsovych, Director of Research at the DiXi Group think tank:
“The framework climate law serves as a critical foundation for the green recovery of the economy, as it enables the integration of state climate policy into all sectors of the economy and all areas of public policy. Among other provisions, the law establishes the achievement of climate neutrality by 2050 as a strategic goal and formalizes the implementation of the National Energy and Climate Plan. The law’s enactment was one of the reform indicators under the EURO 50 billion Ukraine Facility support program. Additionally, the Climate Law will undoubtedly facilitate the process of Ukraine’s EU membership negotiations, with its adoption highlighted in the corresponding European Commission report.”
Law on plea agreements in corruption offense proceedings, +1 point
The President has signed a law allowing reduced sentences for individuals accused of corruption who cooperate with investigators. A court may impose a shorter prison term than prescribed by law if the accused exposes their accomplices or compensates for the damages caused (provided the crime is not of a particularly grave nature). Compensation is an option only if no accomplices are involved in the crime. For the organizer of a crime, this option is available only if they expose another organizer.
As an additional penalty, the court may confiscate the property of the accused or impose a fine, even if this is not stipulated in the relevant article’s sanctions. The fines may be as follows:
- UAH 340,000 — UAH 2,040,000 for a minor offense
- UAH 2,040,000 – UAH 102,000,000 for a serious offense.
- UAH 4,590,000 – UAH 204,000,000 for a particularly grave offense
Expert commentary
Pavlo Demchuk, Legal Advisor at Transparency International Ukraine:
“The law includes both positive and negative aspects. On the positive side, it expands the range of penalties that can be realistically applied in plea agreements, eliminates legislative uncertainty regarding the possibility of such agreements, and ensures the confiscation of property when an agreement is reached. Notably, confiscation as a type of punishment was unexpectedly removed from the Criminal Code of Ukraine by a law stripping collaborators of state awards. However, this provision has now been reinstated in the Criminal Code.
On the negative side, the law does not mandate the application of special confiscation in plea agreements for corruption cases, even when grounds for it exist. Furthermore, it does not specify whether agreements can be concluded in criminal proceedings where damages are not involved. Additionally, courts are not granted the authority to request materials collected during pre-trial investigations.”
Chart 3. Value of Reform Index components and number of events
Reform Index from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in six areas: Governance, Public Finance, Monetary system, Business Environment, Energy, Human Capital. Information about the Reforms Index project, the list of Index experts and the database of the regulations assessed are available here.
Photo: depositphotos.com/ua
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