Venice Commission calls on Kiev to use systemic approach to anti-oligarch policy

MOSCOW. June 13 (Interfax) - The Venice Commission has concluded that the so-called "law on oligarchs" cannot be used in its current state and has recommended that Ukraine use a systemic approach, Ukrainian media reported, citing the commission's statement released on Tuesday.

The commission said that the systemic approach to eliminating the factors facilitating oligarchization is typical for most countries.

"Ukraine has [...] chosen to tackle the destructive influence of oligarchization through a different 'personal approach', by adopting a law on oligarchs. While recognizing [...] that in exceptional, extremely critical situations, for example a situation of state capture, radical solutions [...] could appear to be justified, [...] the undeniably punitive character of the 'personal approach' raises a series of questions regarding its compatibility with the guarantees of the European Convention on Human Rights and the principle of political pluralism [...] and the rule of law," the commission's statement said.

The commission recommended postponing the implementation of the law on oligarchs and implementing a number of recommendations. These recommendations include conducting a comprehensive analysis of the existing systemic measures and their flaws in terms of powers and coordination, developing and introducing an efficient competition policy, strengthening the fight against high-level corruption and preventing corruption in accordance with GRECO's recommendations and by implementing measures envisaged in the State Anti-Corruption Program adopted in March 2023, increasing the transparency and accountability in public procurement, reinforcing pluralism in media and the transparency of media ownership.

The commission also insisted on the need to enhance the implementation of anti-money laundering measures, including the transparency of legal entities and arrangements and timely and effective access to accurate up-to-date beneficial ownership information, in line with MONEYVAL and FATF recommendations.

In addition, the commission recommended tightening the regulations on the financing of political parties and election campaigns and existing control mechanisms, amending tax legislation, strengthening the independence and effectiveness of the key regulatory and controlling authorities and evaluating the impact of such measures regularly.

"The Venice Commission underlines that, in order for the abovementioned system to function effectively, the reform of the judicial system aimed at ensuring its independence, integrity and impartiality in line with European standards, should be relentlessly pursued," the commission said.