EU points out Ukrainian reform weaknesses

This is stated in the annual report on Ukraine's implementation of the Association Agreement.

The report describes the state of implementation of reforms within the framework of the Association Agreement between Ukraine and the EU for the period from the publication of the previous report on December 1, 2020 to February 24, 2022.

"Despite the challenges, including from Russia, Ukraine has taken important steps regarding the implementation of the Association Agreement. The reforms implemented today in this context allow Ukraine to confidently start a new phase of relations with the EU following the decision of the European Council to grant Ukraine the status of a country-candidate. Russia's illegal and unprovoked military aggression against Ukraine cannot distract the European Union from supporting the reform program in Ukraine," said Josep Borrell, Vice President of the European Commission and High Representative of the EU for Foreign and Security Policy.

EU Commissioner for Neighborhood and Enlargement Oliver Vargei added that after the decision of the European Council to grant Ukraine the prospect of EU membership and the status of a candidate country, Ukraine needs to continue reforms, especially in the sphere of justice, the rule of law, the fight against corruption and fundamental rights.

"This includes the adoption and implementation of legislation on the procedure for the selection of judges to the Constitutional Court of Ukraine, the adoption of a general strategic plan for the reform of the law enforcement sector, as well as the completion of the reform of the legislative framework regarding national minorities and the introduction of effective mechanisms for its implementation. The EU will continue to support Ukraine on its European path and,  accordingly, to combine this support with the efforts of Ukraine during its post-war reconstruction," Vargei emphasized.

A number of positive developments have taken place in the sphere of justice, the rule of law and the fight against corruption, including the adoption of key laws aimed at reforming the High Council of Justice (HCJ) and restoring the work of the High Qualification Commission of Judges (HCJC).  At the same time, there is an urgent need to reform the Constitutional Court among significant unresolved issues. It is also reminded that the process of selecting candidates for the position of the new head of the SAP has not been completed, the document states.

Separately, it was said that the government's intervention in the management of Naftogaz of Ukraine caused concern about the effectiveness of the reform of the corporate management of state-owned enterprises (SOEs).  However, in July 2021, the Verkhovna Rada adopted in the first reading a new draft law on corporate management of state-owned enterprises. It aims to bring Ukrainian legislation into line with OECD recommendations.

It is noted that the financial sector of Ukraine remained in surplus, despite the consequences of the covid-19 crisis.  However, developments in the National Bank of Ukraine continued to raise concerns about the independence of the National Bank and the banking supervision system.