Business news from Ukraine

For the full implementation of lobbying legislation at the local level, Ukraine needs unified practical rules for interaction between lobbyists, deputies and officials, as well as a clear distinction between lobbying, advocacy and the representation of private interests, experts believe.

As Vitaliia Hloba, a representative of the National Association of Lobbyists of Ukraine, reported, the association has prepared a roadmap for interaction between lobbyists and local self-government bodies and intends to send recommendations to regional councils.

“A lobbyist must openly identify themselves, the client or beneficiary, clearly define the subject of lobbying and act exclusively within the law. At the same time, deputies and officials must understand how to properly record contacts, verify the status of a lobbyist and prevent the risks of unlawful influence. It is precisely such a clear procedure that should become the basis for professional dialogue between business, the community and the authorities,” Hloba emphasized at a press conference at the Interfax-Ukraine agency on Wednesday.

In turn, expert and Kyiv City Council deputy Volodymyr Bondarenko noted that the law on lobbying created a general framework for transparent interaction between business and the authorities, but left a number of gaps that are particularly noticeable at the local level. According to him, one of the key problems concerns the definition of the object of lobbying, since the relevant law refers to the law on law-making activity, which has not yet fully entered into force.

“The law created a framework for regulation, but at the same time did not provide sufficiently clear rules of operation, particularly at the level of local self-government bodies, where today we feel the greatest number of gaps. These issues cannot be resolved solely through clarifications by the NACP, which do not have the force of law and cannot change legislative provisions. The relevant gaps must be eliminated directly at the legislative level,” Bondarenko emphasized.

He also drew attention to the problems of distinguishing between commercial and public interest, lobbying and advocacy, which, in his opinion, should be more clearly regulated by law.

Lawyer, lobbyist, head of the A.Dva.Ka.T Law Association and member of the Lobbying Committee of the Ukrainian National Bar Association Yaroslav Kuts presented a step-by-step algorithm for interaction between a lobbyist and a local council.

According to him, the procedure should consist of seven stages: verification of the lobbyist’s status, their identification, initial contact, submission of analytical justification, preliminary assessment of proposals, completion of council procedures and monitoring of results.

“Any contact must begin with identification. A lobbyist must state that they are a lobbyist, whom they represent, in whose interests they act, which regulatory legal act is the subject of lobbying and in what format the interaction is expected to take place. After that, the official or deputy can verify their status in the Transparency Register and continue communication on that basis,” Kuts explained.

He emphasized that not every appeal by a citizen or business representative to local authorities constitutes lobbying.

“There is no need for a local council employee to report a lobbying meeting after every appeal by a resident requesting the allocation or privatization of a land plot. The subject of lobbying is a regulatory legal act, meaning rules that are applied repeatedly and to an indefinite number of persons. It is precisely this distinction that should be fundamental for the practical application of the law,” Kuts emphasized.

Vice President of the Congress of Local and Regional Authorities of Ukraine Ivan Fursenko noted that the new rules should move relations between lobbyists and local authorities from an informal model to an open procedure in which each side understands its rights, duties and responsibilities.

“We are moving from an informal model of communication to a model in which each side knows its rights, its duties and its own responsibility. The law does not restrict a lobbyist’s right to convey the client’s position, but merely makes this process open, transparent and understandable. Likewise, it protects a deputy, who no longer has to guess whose interests exactly their interlocutor represents,” Fursenko noted.

“Many people are concerned that any meeting with the public or business will now become a problem, but that is not the case. The law does not prohibit communication; it only requires transparency. If a deputy follows the established procedure, recording the contact protects the deputy themselves from accusations of hidden influence,” Fursenko emphasized.

Member of the Ethics Council of the National Association of Lobbyists of Ukraine and Sumy Regional Council deputy Vadym Vashchenko stated that transparency of lobbying contacts is particularly important at the local level, since communities make decisions regarding infrastructure, entrepreneurship, jobs, investment projects and reconstruction.

“A local council should be not only a body that makes decisions, but also an open platform for professional dialogue between the community, business, investors and the expert community. When every meeting is recorded and it is clear who represents the interests, what issue is being discussed and what result is expected, a deputy or official can work openly and without the risk of accusations of hidden influence. This is protection both for business and for local self-government bodies,” Vashchenko said.

According to him, after the end of the war, communities themselves will become the main centres for attracting investment and donor assistance, and therefore the quality and transparency of procedures will directly affect businesses’ willingness to invest funds.

“Transparency today is a factor of investment attractiveness. Communities that are the first to introduce modern standards of open interaction will gain an advantage in working with investors, donors and international organisations. A strong community is not one where there is no lobbying, but one where lobbying is open, lawful and works in the interests of the community’s development,” Vashchenko emphasized.

Lobbyist and member of the Ethics Council of the National Association of Lobbyists of Ukraine Violetta Sukhanova noted that the roadmap should provide deputies and officials with a simple algorithm of actions in the event of contact with a lobbyist.

“There is no need to be afraid of communicating with a registered lobbyist – the law has legalised such interaction, and the fact of a meeting itself is not a violation. It is important that it take place openly, transparently and within the law. If a deputy has not received answers to the questions of who approached them, whom that person represents and which regulatory legal act is the subject of lobbying, they have the right to suspend such interaction until all the circumstances are clarified,” Sukhanova explained.

She emphasized that, for interaction to be defined as lobbying, three elements must be present simultaneously: a registered lobbying entity, a specific regulatory legal act as the subject of lobbying, and a commercial interest.

“Public hearings, electronic petitions, citizens’ appeals, the protection of one’s own rights or participation in open consultations are not in themselves lobbying. Likewise, a professional meeting with a registered lobbyist is not in itself subject to separate declaration. The task of the roadmap is to enable a deputy, within a few minutes, to understand who has approached them, whether this interaction is lawful and how to act correctly from that point onward,” Sukhanova noted.

Lobbyist and member of the Council of Entrepreneurs under the Sumy City Council Valeriia Holovanova presented practical recommendations on maintaining a contact log and meeting minutes.

“A contact log is not a bureaucratic formality, but one of the levels of protection for a deputy. It should record the date and format of the meeting, the status of the person, the client or beneficiary, the specific subject of discussion and the list of materials transferred. At the same time, there should be no evaluative judgments whatsoever — only facts confirming that the contact took place,” Holovanova said.

According to her, the meeting minutes should contain the arguments of the lobbying side, the deputy’s position and information about the materials transferred and the agreements reached.

“If materials were transferred or specific commitments were undertaken, this must be recorded. If no specific commitments were made, this should also be stated directly in order to avoid future speculation about who allegedly promised what. A unified practice across all local, district and regional councils will make such interaction clearer both for deputies and for lobbyists,” Holovanova emphasized.

Summing up the discussion, Bondarenko noted that the legalisation of lobbying is an important element of Ukraine’s European integration, but the regulatory framework will continue to develop.

“It is impossible to solve all problems in nine months of practical application of the law. The culture of regulatory oversight of lobbying in Europe was formed over decades, so the Ukrainian legislative framework will also continue to develop. The main thing now is not to be afraid to apply the law, while at the same time clearly taking into account the restrictions it provides for and working to eliminate the gaps,” Bondarenko concluded.

Representatives of the National Association of Lobbyists of Ukraine also reported that the roadmap would be published on the organisation’s website and sent to regional councils for use in their work.