Ukraine

OECD warns of negative consequences for defense investments in Ukraine due to NABU/SAP law: media

Organization for Economic Cooperation and Development (OECD) warned Kyiv, that an attack on anti-corruption bodies may have negative consequences for defense investments in Ukraine and for international financing of its reconstruction. Also, the letter addressed to the deputy head of the Office of the President, Iryna Mudroi, provides recommendations on how Ukraine can get out of this situation.

In a letter dated July 22, the Head of the Anti-Corruption Department of the OECD, Julia Fromholz, expressed “deep concern about recent events” related to NABU and SAP, in particular, the adoption of draft law No. 12414.

She emphasized that this law, which was subsequently signed by President Volodymyr Zelenskyi, significantly undermines the independence of specialized anti-corruption bodies in Ukraine. Fromholts warned that these legislative changes may be perceived by the OECP working group as a signal of a weakening of Ukraine’s obligations.

In addition, she stated that this law jeopardizes Ukraine’s future aspirations to join the OECD, and appealed to Kyiv and the president to promise the draft law.

“In the event that this letter reaches you after the signing of the bill, we call for further legislative changes to preserve the independence of specialized anti-corruption bodies. I urge you to consider this matter with the utmost seriousness.” – says the letter.

Fromholz also warned that if Ukraine does not take measures to correct the situation, it will have significant negative consequences.

“If the issue that arose due to the adoption of the law remains unresolved, it will not only jeopardize the prospects of Ukraine joining the OECD Anti-Bribery Convention, and its efforts to join the OECD, but will also undermine its authority among international partners, in particular those who are considering the possibility of investing in Ukraine’s defense sector and its long-term reconstruction.”, she concluded.

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