AntAC Newsletter

Dear friends!

Your are interested in Ukraine and willing to follow the most recent anti-corruption developments in the country?

Then subscribe to our regular (weekly) updates.

We are covering:

1. The most burning successes and challenges of the anti-corruption reform in Ukraine

2. State of implementation by Ukraine of international obligations and commitments in the area of the anti-corruption

3. The most crucial and fresh cases of corruption investigations and revelations from journalists and law enforcement agencies of Ukraine

More news and publications in English are available at our webpage; the most recent and burning anti-corruption news in English we tweet here.

Yours, Anti-corruption Action Centre

  1. Subscribe to our weekly updates

Holding those responsible for syphoning money from procurements.

Watchdogging for public procurement of drugs.

Map Ukrainian Politically Exposed Persons (PEPs)

Foreign partners condition Ukraine to fight corruption. We are monitoring how Ukraine implements these obligations.

Exploring corruption and learn to fight it.

Helping to return the money stolen by corrupt officials back to Ukraine.

NOT TO BE ADOPTED: Draft law on the confiscation of Yanukovych’s assets No. 4057 contradicts European standards and violates private property rights

Draft law No.4057, adopted by the Verkhovna Rada of Ukraine in the first reading and, allegedly, aimed at the confiscation of assets of Yanukovych and his associates, poses a serious threat to the fundamental property rights of all the citizens of Ukraine, not only to the property of the ‘criminal officials’, so it shall be rejected.

Instead of addressing the declared issue, the draft law will make it more difficult to recover the property seized in the course of criminal proceedings against Ukrainian ex-officials subject to the EU sanctions.

The draft law amends the Code of Criminal Procedure of Ukraine with a procedure of recovering monetary funds, valuables, and income from them to the state budget before the court conviction. According to the draft law, this procedure can be used with regard to any individual or legal entity who will have no actual possibility to protect their property rights guaranteed by the Constitution. The draft law suggests a sort of extended confiscation, which meansconfiscation of all property of a person if its legitimate origin cannot be proven.

The novelties of the draft law that de facto introduce the procedure of confiscating property from the third parties without  conviction  might contradict the Constitution of Ukraine, as they offer neither safeguards, nor tools to protect private property of the citizens and legal entities. Thus, the draft law shifts the burden of proving the legitimate origin of the assets onto the property owner. In the international practice, it is an exception, rather than a general rule. It is dangerous to adopt this approach in such a flawed legal form in the Ukrainian laws without a reformed judiciary and prosecution.

The authors of the draft law on confiscation without conviction (when a crime has not been proven in court) have intentionally distorted the international standards related to the confiscation of assets with an evident purpose – to justify passivity and professional incapability of the law enforcement bodies to recover the seized assets of Yanukovych and his associates to the state budget by using the legislative instruments already provided by the national law.

The draft law is a temporary solution to this problem and, should it be implemented, may have fatal consequences for the entire country, as it might serves as evidence that the persons subject to EU sanctions are persecuted in Ukraine for political reasons, which can be used as an argument by their lawyers to contest against the sanctions in the European courts.

Thus, the RPR warns that any confiscation of assets of Yanukovych and his associates or any other person according to the procedure suggested by the draft law No. 4057 might be successfully contested in the European Court of Human Rights which, in a few years, will oblige the state of Ukraine return the illegally confiscated property to its owners. Ultimately, it will allow Yanukovych and his associates to legalize their illegally acquired assets.

Moreover, should the draft law No. 4057 be adopted, it will signify Ukraine’s rollback in the sphere of progressive laws on the recovery of assets, which had been adopted by the parliament in February 2016 to meet the EU requirements within the visa liberalization action plan. In particular, the draft law contradicts EU Directive of 2014 on confiscation that allows confiscation without conviction only with regard to the property directly connected with the crime, while extended confiscation – only after the conviction.

Any similar amendments to the laws on asset recovery without thorough analysis conducted by the EU experts or the Council of Europe are unacceptable.

Taking into account the risks described above, the RPR considers it impossible and unacceptable to make any attempts to adopt and/or improve the text of the draft law and calls on the MPs to reject the draft law No. 4057.

Reanimation Package of Reforns