Corruption in Ukraine

The biggest recipients of bribery are the police, the health service and the education system.[21] In the late 2000s and early 2010s, around 67% of Ukrainians who had dealt with government said that they had been directly involved in corrupt transactions.[10][22] In a survey in 2010, 30–49.9% of respondents admitted paying a bribe to a service provider during the past year;[23] in a similar survey in 2007, 18–32% of respondents admitted paying a bribe.[23] A comparable figure for Great Britain for 2011 was 1.9%.[24] However, in a different survey in late 2008, only 21% responded that they or anyone living in their household had paid a bribe in any form in the previous 12 months; comparable figures for the U.S. and UK were 2% and 3% respectively.[25] In a GfK survey held in the summer of 2001 43% stated they never personally had given bribes.[11]

In 2013 74% would not report an incident of corruption; 24% were afraid of consequences, 63% believed it would not make any difference.[21]

In the years after Ukrainian independence, election fraud was widespread, mainly through the use of "administrative resources".[26] On the other hand, according to Taras Kuzio election fraud in Ukraine can only reach five percent of the total vote.[27] Outright vote rigging diminished after the 2004 presidential election. After this election, the Supreme Court of Ukraine ruled that due to the scale of the electoral fraud, it became impossible to establish the election results and ordered a revote.[28][29] Although politicians still claim(ed) election fraud and administrative tricks to get more votes for a particular party have not vanished.[30] The Ukrainian electorate remains highly skeptical about the honesty of the election process.[31] Any voter who engages in election fraud faces a maximum sentence of two years in jail, though activists say no one has been punished for voter fraud since Ukrainian independence.[32]

United States diplomats have claimed the privatization of several Ukrainian state enterprises were rigged in favor of political friends.[7] On a regional level, corruption has been discovered in connection with land allocation.[33]

Ukrainian politicians have regularly accused each other of corruption while claiming to fight it themselves.[34] After mockly joining the parliamentary faction Reforms for the Future in early 2012, Roman Zabzalyuk claimed this faction "bought" its members for "US$500,000 (for a "defection" from other parliamentary groups), and then they pay a monthly salary of $20,000-25,000"; according to Reforms for the Future, Zabzalyuk pretended he was "suffering a very serious disease" and the group had managed to raise some $100,000 for Zabzalyuk to undergo surgery in Israel.[35]

Since July 1, 2011, the President, Chairman of the Verkhovna Rada, Prime Minister, Prosecutor General, ministers and other Ukrainian top officials have been liable for prosecution for corruption.[36] Kost Bondarenko (chairman of the board of the Institute of Ukrainian Politics), claims that before 2010, there was an unwritten rule in Ukrainian politics, "No charges were brought against members of the outgoing government, and their successors never had to worry about what tomorrow might bring";[37] but in 2010 and 2011, "criminal charges were brought against 78 members of the former government; and more than 500 criminal cases have been opened against sitting officials.".[37] However, since 2010 the Ukrainian press brought up thousands of examples of criminal cases in which state officials, as well as politicians and businessmen linked to the ruling Party of Regions, were shown leniency unprecedented for the general population of suspects.[38]

Minister of Internal Affairs Vitaliy Zakharchenko stated in March 2012 that since 2010 about 400 politicians had faced criminal charges in connection with corruption; most of them from the Party of Regions, followed by Bloc Yulia Tymoshenko and Our Ukraine–People's Self-Defense Bloc members.[39] It is unclear how many of those charges have since been proved by the courts.

Ukrainian media, particularly the Ukrayinska Pravda, regularly unveil a millionaire lifestyle of Ukrainian politicians and publica servants,[40] utterly contradictive to their declared official incomes.[41]

According to historian Andrew Wilson, as of 2016 progress in reducing corruption was poor.[42] A 2015 survey showed that 72% of adults blamed "corruption of power" for the lack of progress in reform.[42]

A requirement upon MPs from October 2016 to declare their wealth led to the 413 MPs cumulatively declared wealth of about $460 million.[43] Reacting to public criticism, MPs cancelled a salary rise that would have doubled their monthly salary.[44] This measure was part of an Anti-Corruption Package passed into law in October 2014, which was a requirement of international financial support for Ukraine and a prerequisite to eligibility for visa-free travel within the European Union.[43][45]

Several Ukrainian mayors have been suspected of using their posts to serve their own business interests.[46]

The ex-mayor of Cherkasy Serhiy Odarych has been suspected of causing a hryvnia 600,000 loss to the city budget.[47]

Ukrainian politicians and analysts have described the system of justice in Ukraine as "rotten to the core"[49][50] and have complained about political pressure put on judges and corruption.[51] Independent lawyers and human rights activists have complained Ukrainian judges regularly come under pressure to hand down a certain verdict.[52] Ukraine's court system is widely regarded as corrupt.[53] A Ukrainian Justice Ministry survey in 2009 revealed that only 10% of respondents trusted the nation’s court system. Less than 30% believed that it was still possible to get a fair trial.[49]

Although judicial independence exists in principle, in practise there is little separation of juridical and political powers. Judges are subjected to pressure by political and business interests.[54]

A 2017 Reuters article quotes then-PM Volodomyr Groysman, saying that "the weakest link in our fight against corruption is the Ukrainian court"; giving an example of 30 judges "with annual salaries ranging from US$10,000-13,000" who own Porsches.[55] As another example, on May 22, 2012 Volodymyr Rokytskyi, Deputy Head of Ukraine's Security Service, was photographed in public wearing a US$32,000 luxury wristwatch -- despite the fact that its price amounts to his yearly official income -- at a joint Ukrainian-American event dedicated to fighting illegal drugs.[56] Ukrainian judges have been arrested while taking bribes.[57]

Critics have also complained that officials and their children (the latter ones are known as "mazhory"[58]) receive favourable sentences compared with common citizens.[59][60]

Kyiv Post reported in November 2018 that several candidates for a post in the new High Anti-Corruption Court of Ukraine where themselves suspected/associated with corruption.[61]

In 2015 corruption allegations were made against Energoatom, Ukraine's state nuclear power operator.[62] In March 2016, Energoatom's assets and bank accounts were frozen by Ukrainian courts over allegedly unpaid debts, against which Energoatom is appealing.[63][64]

As of 2016, many of Ukraine's major provincial highways are in very poor condition, with an Ukravtodor official stating that 97% of roads are in need of repair. The road repair budget was set at about 20 billion hryvnias, but corruption causes the budget to be poorly spent.[65]

Higher education in Ukraine is plagued with bribery.[66][67][68] In 2011 33% of all students claimed they have encountered corruption in their school, 29% heard about cases of corruption from other students, while 38% had not encountered corruption.[69] According to Transparency International research done in 2008, 47.3% of university students stated that a bribe had been demanded from them; of those, 29% had paid this bribe freely.[13] Students can "buy" a college entry, exam results, marking doctoral and/or master’s theses.[13][68]

Bribes range from US$10 to US$50 for an exam pass to several thousand for entry to a university.[13] According to government sources, bribes vary from US$80 to US$21,500.[13] Salaries of teachers and professors are low in Ukraine compared with other professions; this may cause them to be tempted to demand bribes.[13][68] According to Ararat Osipian entire corruption hierarchies have formed in Ukraine's colleges and universities.[70] These hierarchies evolved evolutionary since the 1990s as the result of uncontrolled and rampant corruption.[71] Ararat claims that corrupt ruling regimes control corrupt universities and force them into compliance,[72] including during the elections.[73] This was aided by universities largely remain Stalinist type bureaucracies, unable to transform.[74]

Until 2015 university autonomy was nonexistent.[75] In 2015 the Ukrainian parliament passed a new law on higher education to give universities more autonomy, including control over their own finances.[68] The aim was to encourage private investment, fundraising and the creation of endowments.[68]

Ukrainian government officials have been caught with fake university diplomas.[76]

Companies encounter corruption mainly in business licensing, taxation and customs.[77] The Organisation for Economic Co-operation and Development has stated corruption is a "significant obstacle" to doing business in Ukraine.[78]

Research conducted by Ernst & Young in 2011 and 2012 showed that the practice of top managers accepting bribes increased by 9 percent in 2011 and 15 percent in 2012.[4] Another 4 percent were ready to pay bribes in order to hide the details of their financial performance.[4]

Politician Natalia Korolevska has estimated that "Corruption has forced business to go in the shadow where now we have 45% of our economy”.[79]

The representative of one United Kingdom-based company has claimed non-Ukrainian companies often lose contracts if they will not pay bribes or fail to "out-bribe" their competitors.[52] Ukrainians and business representatives have claimed "Business ventures above a certain level require palm-greasing of some functionary at some level".[52]

In 2012 President Viktor Yanukovych reported that only about 23 percent of social service funds go to those who actually need it.[4] The Ukrainian media have featured many stories revealing that even parliamentarians illegally receive social benefits, fraudulently claiming to be war and Chernobyl veterans.[4]

Though medical care in state-run hospitals is theoretically free for Ukrainians, patients' paying money there to ensure they receive the treatment required is widespread.[80][81]

In June 2012 advocacy groups accused Health Ministry officials of embezzling money that should be used to treat AIDS patients by buying AIDS drugs at hugely inflated prices and then receiving kickbacks.[82]

Corruption Perceptions Index ratings in Ukraine 1998-2018

Transparency International produces an annual report listing each country's Corruption Perceptions Index score. This "score relates to perceptions of the degree of corruption as seen by business people and country analysts and, through 2011, ranged between 10 (highly clean) and 0 (highly corrupt)."[111] In the 2010 report, the least corrupt country listed was Denmark with a score of 9.3, and the most corrupt of the 178 countries listed was Somalia with a score of 1.1.[112] From 2012 on, the scores were presented on a 0-100 scale.[113] In the 2016 report, Denmark was still the least corrupt country listed with a score of 90, and Somalia was still the most corrupt of the 176 countries listed, with a score of 10. By comparison, Germany, Luxembourg and the United Kingdom tied as 10th least corrupt countries with a score of 81, and the United States was 18th least corrupt with a score of 74.[114]

The following table lists Ukraine's place in the Corruption Perceptions Index table, based on Transparency International's annual reports from 1999 onward. The methods used in assessing the Index change from year to year, so comparisons between years are difficult.

In 2014's Transparency International Corruption Perceptions Index Ukraine was ranked 142nd out of the 175 countries investigated (tied with Uganda and the Comoros).[137] Note: For 1999 and 2000, the data were listed as 1998 and 1999 respectively. From 2001, the data listed are stated to be for the year of the annual report. Up to 2005, the annual report included some measures of the uncertainty of the index scores; these data were omitted from the annual reports from 2006 onwards, but were contained in the CPI report.

The following table shows average scores from a survey of Ukrainian public perception of corruption in Ukraine's institutions. Comparable figures for the United Kingdom and the United States from surveys for 2009 (for British and American people's perception of corruption in their own countries) are shown at the bottom of the table.