Reform Index 172: The Law On Oligarchs

Reform Index 172: The Law On Oligarchs

Photo: depositphotos / welcomia
30 November 2021

Reform Index is +0.1 points for the period from October 25 to November 7, 2021, with possible values ranging from -5.0 to +5.0. In the previous round, the index was +0.4 points. 

Chart 1. Reform Index Dynamics

Chart 2. Reform Index and its components in the current round

Law on preventing the undue influence of oligarchs, 0.0 points

The oligarchs in Ukraine have a significant influence on the country’s economy and political life. Law 1780-IX is intended to limit this influence and make it more transparent.

It provides for the creation of an oligarch register and requires that the businessmen listed in the register submit electronic declarations. The same declarations are submitted by officials. The registered oligarchs will not be able to finance parties or participate in large-scale privatization. Civil servants will be obligated to report contacts with the businessmen listed in the register.

Individuals can be registered as oligarchs based on a decision by the National Security and Defense Council if they participate in political life, have a significant influence on the media, are the ultimate beneficial owners of monopolies, or own assets exceeding 1 million minimum wages (about UAH 2.3 billion). To be included in the register, three of the four criteria need to be met.

Expert opinions on this law differ. Half gave the law negative reviews, and the other half review it positively.

Information about Reforms Index project, the list of Index experts and the database of the regulations assessed are available here.

Chart 3. Value of Reform Index components and number of events

Reform Index 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 five areas: Governance, Public Finance, Monetary system, Business Environment, Energy.



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