Last week, the Kyiv Post reported on raider attacks at such major businesses as McDonald’s, Horizon Capital, Swissport and Globus shopping mall, as well as fears in the telecoms sector.

This week, we follow up with the story of a police raid on Ukrsotsbank, a case involving 18 major retailers who are accused of forming a price-fixing cartel and who could face collective fines of up to Hr 20 billion. We are also report on the hacking of all databases run by the Justice Ministry and the investigation into whether personal records of millions of people involving real estate, marriage, power of attorney and other normal transactions have been stolen.

All these stories are a manifestation of the same malaise: poor state governance, poor institutional development and absence of rule of law. 

It is all the more important for Ukraine to sign an Association Agreement with the European Union on Nov. 28-29 in Vilnius, Lithuania. It will make the nation commit to institutional changes and adopt a style of governance and economy that more closely resembles the far richer and much more advanced EU.

Ukraine will have to approve some 350 legal acts if it signs on to the EU conditions. Economic studies show that Ukraine could benefit tremendously if it chooses to reconstruct its economy along Western lines of transparency, regulation and accountability. People will eventually see boosts in personal income as Ukraine’s economy is forced to compete more vigorously, lower its trade barriers and modernize. Such a turn of events will help Ukraine  break the grip of oligarchs, bureaucrats and political hacks.

As Igor Burakovskiy, head of the Institute for Economic Research and Political Consultations, says, Ukraine is a sick patient at the moment. It can take a pill and forget about its headache for awhile, but the relief will only be temporary. Or Ukraine can choose to start exercising, watch its diet and live a better and more fulfilling life. It will reap much greater and longer-lasting benefits – and not just for business.

Investors are watching and voting with their wallets. Lately, the sounds we’re hearing is of those wallets snapping shut.