Ghost changes. Why Ukraine stalled reforms

Fiscal reform

Reform of fiscal authorities has become one of the key elements of the Coalition agreement. According to this document in the first quarter of 2015, the MPs promised to reconsider the size of the Single social contribution, reducing it to 18%. Deputies really ERUs decreased to 22%. For business it’s better than 35% which had been deducted for each employee until 2015, but obviously not enough to bring the economy out of the shadows.

We recall the estimates of the Ministry, in the first quarter of this year, the shadow economy accounted for 37% of GDP. This was 6% less in comparison with the similar period of 2016, but still unacceptably high. The Minister of social policy Andrei Reva in an interview with Focus openly admitted that the activities of the SFS are aimed primarily at plugging budget holes by raising taxes. So from a business point of view it is more profitable to stay in the “gray” zone. Without fundamental changes in government’s approach to fiscal policy is not going to change.

However, until the business got from the States only “cosmetic” changes such as the creation of a public register of VAT refunds. Although all in the same Coalition agreement stipulates the need to separate the service and enforcement functions of the fiscal service through the formation of a single financial investigation service. The government approved the bill in March this year, but still a new service and not earned. While the Cabinet and the Ministry of Finance cannot agree who will obey the new structure.

In fact the control over observance of legislation in the economic sphere controlled by the state fiscal service, the security service and Nicolicea. According to the Executive Director of the European Business Association Anna Derevyanko, this situation allows to prevent the “undesirables” of the company, and thus opens the way to corruption. In addition, the creation of a single financial investigation service is one of the requirements of the IMF. Failure to do so jeopardizes the cooperation with international creditors.

A new hope. The signing of the Coalition agreement on November 21, 2014. The members of five political parties, passed in Parliament, promised to reform the country

Many questions cause personnel policy of the government in relation to the SFS. After the removal in March of the Roman Nasirov in the status of acting fiscal office manages Miroslav Prodan, who at Yanukovych held senior positions in Vinnytsia customs. Since for him there is a trail of references in corruption scandals. The most remarkable of them are repeated reports in the media about the involvement of the current head of the SFS to the “nutty schemes” — export walnuts through company-pads at low prices. In particular, Sold associated with a certain Cheburashka, employee Vinnitsa customs Vyacheslav Tishkovskim, who allegedly gave a reward for the nuts personally sold. In the comments the Focus is not confirmed nor denied the information about personal relationships Sold Tishkovskim, and “nutty schemes” in General, citing a desire to operate with facts, not assumptions.

However, to understand the details of the biography of Miroslav Sold — the task of law enforcement. However, the fact that the actual head of the SFS appointed without consultation with the business — fact. And this, as mentioned above, the absence of reforms, suggests that the government of Vladimir Groisman, like its predecessors, refers to the fiscal authorities as a “hand” structure. So, hope for a real relief of conditions for doing business in Ukraine is not worth it.

Land reform

For land reform, in accordance with the Coalition agreement, it is necessary to give the land outside settlements to the management of territorial communities, as it was before 2002. The transfer of land to municipal property of local communities is needed for more effective use. “In Ukraine, the authorities control less than 10% of all non-privatized land. The rest is controlled by Central bodies of Executive power. Major steward — Gosgeokadastr. It is a powerful and corrupt hierarchy” — said the expert on land issues Andrew Martin.

On November 9 vote is to submit the draft law “On amendments to some legislative acts of Ukraine regarding management of land resources within the boundaries of territorial communities and the settlement of other issues in the sphere of land relations.”

In the case of the adoption of the document to dispose of land will be the local authority. For Gosgeokadastr will fix only function of state supervision. “Support of the bill in the relevant Committee is the part of all factions. Well, the vote depends on many factors, including from the fact that you prefer the MPs — work in the hall or going to the bar”, — commented the people’s Deputy from BPP Sergey Hlan.

Another issue — inventory of lands. The coalition has promised to hold it until 2016. But this mission failed. “The procedures of land registration and titling them is so bureaucratic and corrupt that many state and municipal enterprises try not to get involved in the rigmarole with the design of the used land. The total cost of its design, taking into account the corruption may reach several million hryvnia, and take more than one year,” explains Martyn.

Large-scale privatization

In 2015, Finance Minister Natalia Yaresko has estimated the potential revenues from the privatization of large state assets of 17 billion UAH. In reality, in 2015 and 2016, managed to gain only a few hundred million hryvnias at the expense of small-scale privatization. This year, the situation has improved. Due to the sale of the remaining state-owned blocking stake of power companies, the state property Fund gained about 3.5 billion UAH. Another 4.5 billion is going to get to the end of the year. But target figures is still far.

Large-scale privatization is delayed again. For example, FGI is trying once again to put the Odessa port up for auction in the spring of 2018. However, the plant listed debt of $250 million before Group DF of Dmitry Firtash. Should the government decide to restructure the debt or to include it in the starting price. But while this is not defined.

Among the big lots of privatization in the beginning of 2018, the state property Fund planned to sell the Zaporozhye aluminum plant and five power companies: ternopolyoblenergo, Zaporizhiaoblenergo, Kharkovoblenergo, Khmelnitskoblenergo, nikolayevoblenergo. But the question is, how successful the auction is open. The acting head of the state property Fund Vitaly Trebarov notes that potential investors just can’t understand the legislative framework for privatization. Privatization activities govern the seven laws, they prescribed a lot of regulations. The situation may fix a new law on privatization, however it is not yet adopted. That is, the interest of major investors to the Ukrainian M&A market in the near future, hope not.

Shock rates. Until October 2018, all residential and nonresidential premises must be equipped with meters for water and heat

Labor reform

The business expects the state and the adoption of the new Labour code, to vote for which was planned in the first half of 2015. Significant changes in this document were last made in the 60-ies. The new Code of labour laws designed to protect both the employer and the employee. For example, the first will have the right to conduct video surveillance of employees and the dismissal of the worker “overstayers” in hospital. In addition, the new version will be legitimized common in recent years, the practice of remote work. Employees will receive assurance of compliance with principles of gender equality and prohibition of dismissal of employees who left before retirement less than three years.

This fall, BP considered a document. The code has made more than 1,5 thousand edits, but the final verdict of deputies yet.

Reform of the coal industry

One of the key issues of the Ukrainian energy sector reform unprofitable state mines. Energy Minister Igor Nasalik has long been said about the intention to optimize the operation of 32 mines, energy. Eight promising enterprises, the Ministry plans to keep 14 to be privatized, 11 liquidated. As reported Focus in the Ministry, today the pre-privatization preparation of the five mines. Directly to privatization, the state will begin in 2020, after the restructuring of mining SOEs and their subordination to one business.

However, experts believe success is not enough. “Perhaps there would be a bona fide investors for several mines where there are large reserves of coal. But officials it is cheaper just to plunder until the end,” says the Chairman of the Independent trade Union of miners Mikhail Volynets, noting that enterprises continue to operate corruption schemes and “Institute looking”. Moreover, according to Volynets, the performance of the state mines fell by 30% compared to the previous year, while production figures for the mines of DTEK Rinat Akhmetov has grown by about 10%.

That the Ukrainian state mines hardly will interest investors, said the Director of the research Center of energy Alexander Kharchenko. “There is a problem with the lack of market indicators of the price of coal. When we have a monopoly DTEK, which controls coal production by 75%, not having an open market for the formation of coal prices, no investor on the privatization of such objects will not go”, — says the expert.

On the river. Barge with Kherson watermelons have become one of the main memes of the summer on social networks

Reform river transportation

River transport in Ukraine over the past few years, almost inextricably associated with the company “NIBULON” Alexey Vadatursky. This summer, he tried to draw attention to the problems of water transport tour “of the barge with watermelons” from Kherson to Kiev. However, beyond the social question has not moved.

In the Ministry of Infrastructure are sure that the potential of waterways in Ukraine is underestimated, while our country is a strategic player in the system of European inland navigation. “The challenge is not so much to increase revenues as to reorient transport by road and rail to the river,” — says the Deputy Minister of infrastructure Viktor Dovgan.

The office of Vladimir Omelyana emphasize that the interest in the Ukrainian waterways Europeans have. However, to become more active inland waterway transport can only after the adoption of the law “On internal water transport”. The battles over this bill to the Verkhovna Rada turned back in the summer. In fact, the question is, will I be able to get access to the Ukrainian river ships under foreign flags and what will be the river gathering. According to Robbins, the bill will bring to a vote in early December. However, whether it will be this year’s law — the big question.

Reform of the accounting utilities

Shock increase in tariffs from 2015 the government promised to compensate for the introduction of more effective integration of resources and services. The principle is simple: as necessary, for so much pay. It is for this principle in June and was adopted the Law “On commercial accounting of heat energy and water”. In accordance with him till October 2018, all residential and nonresidential premises shall be equipped with local meters metering of water and heat.

However, in the Office of effective regulation BRDO note that in this heating season, the law does not work. According to information posted on the official site minregionstroya, as of July this year, the level of equipment of houses of local heat meters is about 70%. Apartment heat meters are installed even less.

Along with the installation of meters, there are regulatory problems. According to the coordinator of housing and communal programs of the civil network OPORA Tetiana Boiko, the law has earned, Minregionstroy will develop about 20 of the bylaws. “It will be hard to prove which part must be paid by the consumer, in addition, showed his individual meter. Speaking of heat, here is a little simpler: it is computed on apartments. As for water, I do not imagine, what should be the reason to here is additional done” — sums up Tatiana Boyko.

The reform of social insurance

A separate section in the Coalition agreement is devoted to the development of a system of private social insurance and the termination of funding of the social insurance Fund expenses not directly related to insurance employees, such as Spa treatment, maternity leave or retraining in the event of unemployment. Will also establish a system of compulsory state health insurance, which would also include insurance upon accidents on manufacture, occupational diseases and work temporarily.

“The social insurance system in Ukraine is outdated. Ukraine still has not passed European standards of social insurance. We did not leave the Soviet foundations in this matter,” — said the head of the Institute of civil liberties Galina Tretyakov.

According to her, the principles of the updated system of social insurance I need to write from scratch, changing the governance structure of the funds, the approaches to the calculation and distribution of the single social contribution. To change the situation, it is necessary to carry out structural reforms and prepare system documents. This is no. “The Ministry is very reluctant to contact with deputies. Take the bill on pension reform. It was developed without discussion with the deputies, was registered just two days before the vote. Interaction with the Parliament, pressured by the Cabinet to push the decision” — explains the situation the people’s Deputy from “Samopomich” Natalia Veselova.

In short, examples of failed reforms can cause a lot. The impression that the government Volodymyr Groysman, most of the effort has focused on the “cosmetic repair” of the Ukrainian economy — the changes in a favorable light to submit to international lenders and to use it to improve Ukraine’s position in the influential rankings, which will be well received in the upcoming elections active part of the electorate.

• See also: not Yet Mature enough. Why business is not easier improve Ukraine’s position in the rankings

However, to turn built in the time of developed socialism wreck in comfortable homes, whitewashing the walls is clearly not enough. We need a major overhaul, and with it the builders of the country have problems.