Despite the introduced moratorium on inspections, business continues to face systemic pressure: Andriy Pavlovsky
Despite the officially announced moratorium on inspections, Ukrainian business continues to experience systemic pressure from state authorities. Both entrepreneurs and experts in economic and tax policy speak about this. The announcement of the so-called “risk-based approach”, which allows inspections to be carried out under a new name, is accompanied by an increase in the number of business contacts with law enforcement agencies. Such a situation creates an environment in which entrepreneurship finds itself in constant legal and psychological risk, even in spite of the formal limitation of inspections. Andrii Pavlovskyi, a public figure, expert on social policy issues, People’s Deputy of the 6th and 7th convocations, talks about the essence of such approaches, mechanisms and political subtext.
Expert considers, that the moratorium on business inspections announced by the government has turned into a formality. Inspections have actually returned under the guise of a new mechanism — the so-called “risk-based approach.” This allows state authorities to determine at their own discretion which of the entrepreneurs constitutes a “risk” and, therefore, is subject to inspection, pressure, and in some cases, criminal prosecution. Such a situation is a deception of society: on the one hand, the government officially declares the protection of business, and on the other, it creates loopholes to strengthen administrative influence on it.
As Andrii Pavlovsky notes, the very term “risk-oriented approach” is a cover for a return to old practices. According to him, the fact that the Chairman of the Finance Committee of the Verkhovna Rada, Danylo Hetmantsev, openly admits the limitations of the moratorium only confirms the existence of an ambiguous policy: checks will not be carried out for everyone, but for those who will be called “risky”, with redoubled force. This principle violates the equality of all before the law, because some entrepreneurs automatically become objects of repression, while others become untouchable. This approach creates a field for selective pressure, corruption and manipulation.
Andrii Pavlovsky draws attention to the testimony of People’s Deputy Yaroslav Zheleznyak, who reported on the large-scale inspections carried out by the State Emergency Service of Ukraine. The expert notes that, according to Zheleznyak, by the end of September, the State Emergency Service should conduct an in-depth analysis of industrial facilities — primarily those where there was a change of owners or a change in the activity profile.
At the same time, inspections cover a wide range of issues: from the technical condition of facilities and the availability of fire-fighting equipment to compliance with documentation, evacuation schemes, and compliance with building regulations. If any violations are detected, the State Emergency Service has the right to apply sanctions — from fines to other forms of administrative pressure. Pavlovsky believes that such inspection activity on the part of the service, which previously was not among the main bodies of pressure on business, is a sign of the expansion of tools of state intervention in economic activity. Such steps actually dilute the meaning of the announced moratorium and create an atmosphere of increased suspicion towards any private enterprise.
The expert pays particular attention to the growing role of law enforcement agencies in putting pressure on business. Along with the tax office, the SBU, SBU, NABU, BEB are increasingly active, which have been given the opportunity to open criminal cases ostensibly to protect state interests, but in fact use these tools as levers of influence on business activity. A situation has developed in the country where any entrepreneur can potentially become the object of criminal prosecution on formal grounds, even if there is no fact of a crime.
“And although inspections have been formally limited, security forces continue to actively influence business.” – notes the expert.
According to Andrii Pavlovsky, the current situation shows a deep discrepancy between the declarative policy of the state and the real actions of the power structures. The moratorium was needed primarily for a public demonstration of loyalty to business, especially considering the start of the new government. However, in practice, this moratorium does not work, but is only a political figure of speech that does not change the essence of the matter. Business continues to be in the zone of increased risk, which undermines the investment climate and forces entrepreneurs to work in an atmosphere of fear and mistrust.
In conclusion, Pavlovsky emphasizes: the real conditions of doing business in Ukraine today remain extremely difficult. Instead of systematic support of entrepreneurship, the state, through various bodies — tax, law enforcement, supervision — returns to the repressive logic that was characteristic of the pre-war period. So a moratorium is nothing more than a fancy figure of speech for the start of a new government.
