You're reading: Reform Watch – 11

Editor's Note: The Kyiv Post will be tracking the progress made by Ukraine's post-EuroMaidan Revolution leaders in making deep structural changes in the public interest. The Reform Watch project is supported by the International Renaissance Foundation. Content is independent of the financial donor.

Security & Defense

President Petro Poroshenko signed a law determining the responsibilities and agenda of the military and civil administrations operating as a part of the Security Service of Ukraine’s anti-terrorist center in the war-torn Donetsk and Luhansk oblasts. The administrations are authorized to secure safety, the rule of law and to prevent a humanitarian disaster on that territory, until Russia’s war against Ukraine is over.

Energy

The National Commission for Energy Regulation is planning to hike electricity tariffs for residents. The tariffs will be increased gradually, in five stages, with the first one starting in April. By 2017, the price will be raised 3.5 times to Hr 1.2 per kilowatt hour. The gas price ceiling for industrial consumers and state nstituttions will be also raised already in March by 56 percent, from Hr 5,700 to Hr 8,900 per 1,000 cubic meters. Increased tariffs for gas, heating and electricity are required by the International Monetary Fund.

Rule of law

Poroshenko signed a law on fair trials which was developed by his Council on Judicial Reform. The law received mixed reviews as it leaves the right of the president to liquidate and reorganize courts and appoint judges, which raises fears of continued political influence on the courts. Among other changes, the bill introduces a more competitive procedure for hiring of judges and selecting candidates for the High Council of Justice, the body which controls the quality of judges work and holds the right to dismiss them, which experts consider as positive.

Public administration

Ukraine finally made a significant step towards introducing a 3G mobile internet connection. At the auction held on Feb. 23 the three biggest telecom operators – MTS Ukraine, Kyivstar and Life bought licenses that will be valid for 15 years.

Parliament postponed a planned revision of the state budget until next week, citing the need for additional consultation. Amending the budget is crucial to secure the disbursement of an already agreed $17.5 billion loan from the International Monetary Fund, which still has to be approved by its board of directors.

Several bills conflicting with the legislative initiatives of health minister Alexander Kvitashvili aimed to transfer procurement of drugs from the ministry to the World Health Organization and UNICEF were registered in parliament. Civic activists view this move as an attempt to delay voting on ministry bills aimed at preventing corruption in medical tenders. Prime minister Arseniy Yatsenyuk launched investigation into corruption of the state tax service and suspended its chief Igor Bilous and two of his deputies.

Land

The Ministry of Agriculture launched internal checks and financial audits on 30 state enterprises. International companies BDO, Deloitte, KPMG, EY, PWC, Baker Tilly, Avellum are all engaged in the process.