Ukraine is expected to resolve disorder in its business inspection system by the end of 2016 – Deputy Minister for Economic Development and Trade of Ukraine


Kyiv, July 16, 2015. The Ministry for Economic Development and Trade of Ukraine (MEDT) plans to complete the reform of business inspection agencies by the end of 2016, as well as introduce a new approach to business inspection based on transparency that will make things easier for companies, said Yuliya Klymenko, Deputy Minister for Economic Development and Trade of Ukraine, at a press briefing at Ukraine Crisis Media Center as part of the Ukraine Reforms Communications Taskforce project.

“Due to the lack of coordination among various control agencies, inspections of some companies last from 6-8 months. This is unacceptable. It’s chaos. We have to correct the situation. Checks need to be all-inclusive and last no more than 10-20 days, while the work of inspectors should not be duplicated. There also needs to be a clear, exhaustive list of documents that controllers have the right to demand from business owners, of course having let them know beforehand,” noted Klymenko.

According to Klymenko, control systems have to be structured in such a way as to stimulate management quality and help businesses develop. “If companies outsource quality audits according to international standards, then inspection agencies should consider these companies as inspected. By doing so, on the one hand, we will encourage businesses to invest in their own development, and on the other create a market of quality services,” explained Klymenko.

She went on to emphasize that the effective reform of inspection agencies needs to prepare for united approaches without exceptions, as currently agencies of the State Fiscal Service exercise business inspection according to several separate laws, leading to inconsistency.

To eliminate drawbacks in the control system, Ministry of the Economy prepared a package of bills to be submitted to the Cabinet of Ministers, which then is expected to be sent to the Parliament by the end of 2015. In the case of the package’s quick adoption, the Ministry will be able to develop the necessary legal framework throughout 2016 so as to introduce new approaches in business monitoring by the end of next year. According to Klymenko until then the moratorium for businesses inspections has to stay in full force in the country. Thus, the state officials addressed the Verkhovna Rada, suggesting that the Cabinet of Ministers support the bill No.2230a, and extend the aforementioned moratorium until January 1, 2017.

“The decision to extend the moratorium on business inspection, which was earlier scheduled to end on July 1st of this year, is not just an extension, but also a small part of the integrated reform to the business inspection and monitoring system. The European principles that we are trying to follow require a change not only of the rules, but of the behavior of inspection agencies as well,” stressed Taras Kachka, head of the Ukraine Reforms Communications Taskforce project.