Title

Title

The Internal Enemy
A Helsinki Commission Staff Report on Corruption in Ukraine
Monday, October 16, 2017

Ukraine’s struggle with corruption has prevented it from becoming a full, prosperous democracy and hinders its ability to respond effectively to Russian violations of its sovereignty. This Helsinki Commission staff report examines why corruption has been so persistent in Ukraine. It provides a historical analysis of corruption in Ukraine from its break with the Soviet system to today, reviewing the current state of reforms and providing recommendations in context.

The resilience and influence of Ukraine’s oligarchs are at the heart of the country’s persistent corruption. Oligarchs have captured the Ukrainian state, crowding out non-corrupt political parties and competing with one another to steal Ukraine’s wealth. They are not so much businesspeople as courtiers, who transform political and personal connections into monopolies supported by the state.

Two phenomena in particular have given rise to this system of oligarchic competition: (1) the lack of reforms in the early years of independent Ukraine, which resulted in incomplete economic liberalization, and (2) gas arbitrage, which has been uniquely devastating to reform attempts due to building so many oligarchic fortunes and providing a backdoor for Russia to influence Ukrainian politics for decades.

Today’s Ukraine has implemented many important reforms that have helped to counter corruption, specifically in energy, finance, and economics. However, judicial reforms continue to lag behind. Commentators have observed that progress has slowed and frustration among civil society and the international community has increased.

This report recommends that Ukraine move forward with remaining reforms, supported by both civil society and the international community. Most important is that Ukraine not allow backsliding to occur.  Ultimately, the oligarchs must be transformed from courtiers into entrepreneurs and businesspeople so as to finally end the pervasive institutionalized corruption. An empowered Ukrainian civil society—including independent media—will be paramount to such reforms, and has proven time and again that it is world class in its engagement. Key here is to condemn any attempt to hinder or harm civil society.

The report makes numerous recommendations by sector, with an emphasis on the importance of reforming the judiciary. In particular, Ukraine should establish an anticorruption court as soon as possible, so as to provide the final necessary piece of Ukraine’s anticorruption architecture.

Additional reform areas discussed include the safeguarding and further empowering of the anticorruption architecture; implementing privatization and additional regulatory and corporate governance reform as the next step for energy sector reform; pursuing consolidation and transparency as ideas for banking sector reform; and limiting parliamentary immunity.

This report also discusses greater e-government and press freedom as mechanisms to empower Ukrainian civil society, including independent media, to monitor the reform process and prevent backsliding. Finally, it encourages the international community to continue its support for Ukraine and dig in for the long haul.

Download the full report.

This report was drafted by Helsinki Commission staff. Paul Massaro, Policy Advisor, served as lead author.

 

Relevant issues: 
Relevant countries: 
  • Related content
  • Related content
Filter Topics Open Close
  • Chernobyl: Five Years Later

    Held as a fifth anniversary commemoration of the disaster at Chernobyl, the briefing featured a short film that was produced by an Australian film company on Chernobyl’s progress in the five years after the crisis. Afterward, Samuel Wise, staff director at the Commission, led the discussion on the damage Chernobyl continued to have on surrounding regions in 1991. Witnesses Dr. David Marples and Dr. Natalia Preobrazhensk addressed the environmental concerns and political authority over Chernobyl, along with how Ukraine’s judicial system had dealt with the situation. They also acknowledged the situation of Soviet nuclear power at the time.

  • Vienna Review Meeting of the CSCE - Phase III and IV

    The main activity of the Vienna Meeting throughout Phases III and IV was the presentation and negotiation of proposals for inclu sion in the concluding document of the meeting. The number (more than 160), complexity and controversial nature of many of these propos­als led to the extension of the Vienna Meeting well beyond its target closing date of July 31. These factors, along with other ele­ments such as continuing major shortcomings in the implementa­ tion of existing commitments, are largely responsible for the con­tinuation of the Vienna Meeting into 1988. The slow pace of progress already evident in Phase II continued through the next phase. Each side defended its own proposals but showed little disposition to begin the process of compromise which could lead to the conclusion of the meeting. The main procedural development during this phase was the appointment of coordina­tors from the neutral and non-aligned states to guide the work of the drafting groups. This development provided greater order and structure for the proceedings but did little to advance the drafting work or to induce compromises. Other major developments during this phase were the introduc­tion of the long-awaited Western proposal on military security and the tabling of a comprehensive compromise proposed in Basket III by two neutral delegations, Austria and Switzerland. Both propos­als were put forth at the very end of the phase and thus did not have much impact until the next phase. The Western (NATO) proposal on military security questions was designed as a response to the Eastern proposal which envisioned two main objectives: another round of negotiations on confidence­ and security-building measures (CSBMs) to build upon the success­ful Stockholm meeting and the initiation of negotiations on conven­tional disarmament, both within the same CSCE forum. The West­ern response to this proposal was delayed primarily because of United States and French differences over the connection between the conventional arms negotiations and the CSCE process, the French arguing that the negotiations should be an integral part of the process and the U.S. insisting that they be independent. The issue was resolved by agreement that the negotiations would be "within the framework of the CSCE," but should remain autono­mous.

  • Documents of the Helsinki Monitoring Groups in the U.S.S.R. and Lithuania (1976-1986), Vol. 3 - Ukraine

    November 9, 1986, marked the 10th anniversary of the largest and, in terms of prison sentences, the most repressed of the Soviet Helsinki Groups--the Ukrainian Helsinki Group. Founded by Ukrainian writer and World War II veteran Mykola Rudenko, the group produced extensive documentation on violations of the Helsinki Accords in Ukraine, such as persecution of individual dissent, suppression of the Ukrainian language and culture, and religious persecution. The Soviet Government was determined to deny this group any public voice. Of the 38 members of the Ukrainian Helsinki Group, all but one have been imprisoned at one time or another. Fourteen Ukrainian Helsinki Monitors and one Estonian human rights activist who joined the group while in a labor camp, are currently serving lengthly sentences. Since May 1984, three members have died in camps. All three men had been ill and denied adequate medical care. Oleksa Tykhy, Yuriy Lytvyn and Vasyl Stus all died for their beliefs. Prior to his death, Stus had written "Moscow has given the camp authorities complete power, and anyone harboring the illusion that our relations with /the camp authorities/ are regulated by some sort of law is sadly mistaken." His words were tragically prophetic. We are concerned that the same fate awaits others, including Lev Lukianenko, Mykola Horbal, Ivan Kandyba, Vasyl Ovsienko and Vitaly Kalynychenko. It is vital that we remember the courageous members of the Ukrainian Monitoring Group and their eloquent call for compliance with the ideals of Helsinki. In fact, the Congress recently passed a resolution commemorating the anniversary of the founding of the Ukrainian Helsinki group and honoring the members of all the Soviet Helsinki Monitoring Groups. At the ongoing Vienna CSCE Follow-up Meeting, the United States and other Western delegations are speaking out on behalf of the imprisoned members of the Ukrainian and other Helsinki Groups. We hope that the documents contained in this volume will help to ensure that the Ukrainian Group and its message are not forgotten.

  • List of Organizations Involved in Exchange Programs with the Soviet Union and Eastern Europe

    The Commission developed this report to help in­terested persons and organizations participate in exchange pro­grams with the Soviet Union and the countries of Eastern Europe: Poland, East Germany, Czechoslovakia, Hungary, Romania, and Bulgaria. It lists organizations which conduct exchange programs and other contacts with these countries. The parties to the Final Act of the Conference on Security and Cooperation in Europe declared their intention to expand cooperation in security, economic, humanitarian, information, culture, and education affairs and to respect and put into practice certain basic principles, including those of human rights. The Final Act was signed in Helsinki on August 1, 1975, by 35 heads of state or govern­ment, including the United States, Canada, and every state in Europe except Albania. The Commission on Security and Cooperation in Europe (Helsin­ki Commission) was created as an independent government agency in 1976 to monitor compliance with the Final Act and to encourage U.S. governmental and private programs to expand East-West eco­nomic and cultural cooperation and exchange of people and ideas. In the Final Act, the signatories express the view that cultural exchanges and development of relations in education and science contribute to the strengthening of peace, better mutual under­ standing, and enrichment of the human personality. In the Com­ mission's view, exchange programs with the Soviet bloc countries break down barriers and lessen distrust. They help Americans learn about the views and goals of these societies. Such programs help expose the peoples of these countries to the values and goals of our pluralistic society. Critical to such programs is that Americans are given the opportunity to tell the Soviets and their allies on a personal level about their concern for human rights and fundamental freedoms.

  • Fifth Anniversary of the Formation of the Ukrainian Helsinki Group

    On November 9, 1976, 10 brave men and women in Kiev organized a citizens' group to examine how the Soviet Government was living up to its Helsinki human rights pledges. Tragically, however, far from greeting this new civic endeavor, the Kremlin, in a savage campaign of official reprisal, singled out the Ukrainian Helsinki Group for especially harsh treatment. By 1981, 30 group activists were in Soviet camps, prisons, and places of exile. The four witnesses at the Helsinki Commission hearing provided expert testimony on Ukraine and the Helsinki process, and their fates gave an insight into the radically different ways in which our Government and that of the Soviet Union reacted to citizen interest in the Helsinki process.

  • Profiles: Helsinki Monitors

    In May of 1976, a group of Soviet citizens dedicated themselves to promoting compliance by their government with the humanitarian provisions of the Helsinki Final Act. Collecting and disseminating information on violations of those provisions, these human rights activists thereby expressed their stated conviction that "the issues of humanitarianism and free information have a direct relationship to the problem of international security." Respect for human rights in the USSR, they held, is a precondition for the development of a solid East-West detente. After hearing about the work of the Helsinki Groups on foreign radio broadcasts, many ordinary Soviet citizens began sending the Group information on human rights violations in various areas of the USSR. In this way, the Groups became catalysts, drawing together the disparate strands of Soviet dissent. Group reports reflect these varied concerns: conditions in labor camps and psychiatric hospitals; the problems of religious and ethnic minorities; emigration difficulties; and denials of economic rights. The CSCE Commission translates and compiles these Group documents in its series of "Reports of the Helsinki Accord Monitors in the Soviet Union." Encouraged by the success of the first Helsinki Group in Moscow, other such groups were organized in the Ukraine, Lithuania, Armenia, and Georgia. In Moscow, two allied groups were formed to deal with more specific issues: the Working Commission on the Use of Psychiatry for Political Purposes, and the Christian Committee to Defend the Rights of Believers. In recognition of the sacrifice, dedication, and successful work of all these groups, the Commission on Security and Cooperation in Europe nominated all their members for the Nobel Peace Prize in 1978 and 1979. During the past two years, other allied groups have emerged: the Initiative Group for the Defense of the Rights of Invalids in the USSR; the Group for the Legal Struggle and Investigation of Facts about the Persecution of Believers in the USSR of the All-Union Church of the Faithful and Free Seventh-Day Adventists; and the Catholic Committee to Defense the Rights of Believers in the USSR. With the addition of these new committees, an even broader spectrum of human rights issues and interests in the Soviet Union is now represented.  At the present time, there are 66 men and women in the Helsinki Monitoring Groups in Moscow, Ukraine, Lithuania, Georgia and Armenia. Currently, 26 people have joined the Christian, Catholic and Adventist Committees, the Working Con-miission on Psychiatric Abuse and the Initiative Group for Invalids. For this compilation of biographical information on the present members, the Commission is indebted to the following for their assistance: ORGANIZATIONS AND PUBLICATIONS Amnesty International, Bulletin d'Information, Comite pour I'application des accords d'Helsinki en Georgie, Committee for the Defense of Soviet Political Prisoners, ELTA Information Service, Helsinki Guarantees for Ukraine Committee, Keston College, Khronika Press, Lithuanian-American Community of the U.S.A., Inc., Lithuanian Catholic Religious Aid, National Conference on Soviet Jewry, Radio Free Europe/Radio Liberty, Smoloskyp, Student Struggle for Soviet Jewry, the Ukrainian National Information Service, the Union of Councils for Soviet Jews, Washington Street Research Center. INDIVIDUALS Mr. Victor Abdalov, Mrs. Lyudmila Alekseeva, Gen. and Mrs. Pyotr Grigorenko, Ms. Dina Kaminskaya, Mr. Ambartsum Khlagatyan, Mr. Michael Meerson, Rev. Aleksandr Shmeiman, Mr. Konstantin Simis, Ms. Veronika Stein, Mr. Valentin Turchin, and Ms. Lydia Voronina, Ms. Yulya Zaks.

  • Implementation of The Helsinki Accords Vol. XI – Religious Persecution In U.S.S.R. & HR Violations in Ukraine

    The first part of this hearing, led by Commissioner Dante B. Fascell, focused largely on the imprisonment of Russian Pastor Georgi  Vins, who had spent eight of the last thirteen years in prison simply due to his occupation. Repression of this Baptist minister exemplified such repression of other Baptist clergymen by the U.S.S.R., whose denomination in the country dated back to the early 1900s. However, in 1965, the Soviet Baptist movement split into the recognized and legitimated all-union Council of Evangelical Christians, and the dissident reform Baptists, making the latter the first Soviet dissident human rights group. The second portion of the hearing discussed Ukrainian political retribution and dissidents, exemplified by the cases of witnesses who had all been political prisoners in the Eastern European country.

  • IMPLEMENTATION OF THE HELSINKI ACCORDS VOL. IV - REPORTS ON SOVIET REPRESSION AND THE BELGRADE CONFERENCE

    In light of first anniversary of the creation of the Commission on Security and Cooperation in Europe, this hearing focused on the work and the plight of courageous individuals who utilized the Helsinki accords as instruments for advancing international respect for human rights. In particular, the hearing delved into the case of Anatoly Shcharansky, one of the most courageous spokesmen of human rights in the U.S.S.R., faces treason charges as groundless as they are ominous. The Soviet decision to hold a show trial for Shcharansky with phony evidence and counterfeit witnesses combined with the earlier arrest of members of Helsinki monitoring groups in Russia, Ukraine, and most recently, in Georgia, were in violation of the Helsinki accords.

  • Podcast: Russia's Arsenal of Aggression

    One particularly insidious tool in Russia’s arsenal of aggression is the Kremlin’s use of mercenaries, in particular against Ukraine. In this episode, experts Candace Rondeaux and Col. Chris Mayer (Ret.) discuss how Russia draws on mercenary networks such the Wagner Group, which has been linked to human rights and other atrocities including the horrific massacre at Bucha. "Helsinki on the Hill" is series of conversations hosted by the U.S. Helsinki Commission on human rights and comprehensive security in Europe and beyond. The Helsinki Commission, formally known as the Commission on Security and Cooperation in Europe, promotes human rights, military security, and economic cooperation in 57 countries in Europe, Eurasia, and North America. Transcript | Episode 22 | Russia's Arsenal of Aggression

  • Podcast: Russian Intention, Russian Aggression

    From September 10 – 16, ZAPAD 2021—a major Russian military exercise that includes thousands of troops—will take place in and around Belarus. The exercise follows months of reports that the Russian military has been involved in actions that potentially could spark a major and violent confrontation between Russia and other countries, including a March deployment by Moscow of some 100,000 new troops in and around Ukraine and a June incident in the Black Sea in which Russian forces seemingly faced off against the British destroyer HMS Defender.  In this episode, Lt. General Ben Hodges (Ret.) analyzes whether these developments represent a major escalation and imminent conflict with Russia; whether they are part of a deliberate, coordinated strategy by the Kremlin; and what, if any, guardrails could prevent Russian aggression against its neighbors or a direct conflict with NATO. "Helsinki on the Hill" is series of conversations hosted by the U.S. Helsinki Commission on human rights and comprehensive security in Europe and beyond. The Helsinki Commission, formally known as the Commission on Security and Cooperation in Europe, promotes human rights, military security, and economic cooperation in 57 countries in Europe, Eurasia, and North America. Transcript | Episode 18 | Russian Intention, Russian Aggression

  • Podcast: Brothers in Arms

    Since February 2022, thousands of non-Ukrainians have signed up to help defend Ukraine from Russian aggression. In this episode, two former members of the U.S. military—former U.S. Army Staff Sergeant James Vasquez and retired U.S. Marine Corps Lt. Col. Rip Rawlings—discuss their own efforts, one fighting on the ground, and the other mobilizing and coordinating support to the Ukrainian armed forces through his foundation. "Helsinki on the Hill" is series of conversations hosted by the U.S. Helsinki Commission on human rights and comprehensive security in Europe and beyond. The Helsinki Commission, formally known as the Commission on Security and Cooperation in Europe, promotes human rights, military security, and economic cooperation in 57 countries in Europe, Eurasia, and North America. Transcript | Episode 23 | Brothers in Arms

  • Podcast: On the Precipice

    The OSCE has been central to diplomatic efforts around Russia’s war against Ukraine.  In this episode, Ambassador Michael Carpenter, U.S. Permanent Representative to the OSCE, discusses the ultimately unsuccessful diplomatic efforts to forestall Russia’s full-scale invasion; the role of the OSCE in ensuring accountability for war crimes and atrocities; and the need to ensure Ukraine’s victory and Russia’s defeat.     "Helsinki on the Hill" is series of conversations hosted by the U.S. Helsinki Commission on human rights and comprehensive security in Europe and beyond. The Helsinki Commission, formally known as the Commission on Security and Cooperation in Europe, promotes human rights, military security, and economic cooperation in 57 countries in Europe, Eurasia, and North America.   Transcript | Episode 24 | On the Precipice

  • Podcast: Nobody Cheers for Goliath

    The physical battle of tanks and bombs or territory gained and lost is only one terrible part of Russian dictator Vladimir Putin’s war against the people of Ukraine. The unprovoked war is also taking place in the media, on computer keyboards, and in the hearts and mind of people in Ukraine, in Russia, and worldwide. Just as Ukraine has won important battlefield successes in the face of what appeared to be an overwhelming Russian force, Ukraine has also waged a highly sophisticated public diplomacy campaign to counter what many thought was a Russian strength. Dr. Nicholas J. Cull, a pioneering scholar and educator in the field of public diplomacy and mass communication in foreign policy, joins "Helsinki on the Hill" to examine the fight over narratives around Russia’s unprovoked war against Ukraine, how it shapes how different audiences understand the war, and the ultimate real-world impact of information warfare. "Helsinki on the Hill" is series of conversations hosted by the U.S. Helsinki Commission on human rights and comprehensive security in Europe and beyond. The Helsinki Commission, formally known as the Commission on Security and Cooperation in Europe, promotes human rights, military security, and economic cooperation in 57 countries in Europe, Eurasia, and North America. Transcript | Episode 21 | Nobody Cheers for Goliath: How Ukraine Is Winning the Information War Against Russia

  • Podcast: Russia Hates the Truth

    Transgender journalist Sarah Ashton-Cirillo, a U.S. citizen, joins host Alex Tiersky to describe her journey, first to Ukraine as a war correspondent, then her decision to enlist in the Ukrainian Armed Forces as a combat medic on the front lines, as well as becoming a high-value target for Russian propaganda, and the importance of pursuing the truth against a regime that thrives on lies. "Helsinki on the Hill" is series of conversations hosted by the U.S. Helsinki Commission on human rights and comprehensive security in Europe and beyond. The Helsinki Commission, formally known as the Commission on Security and Cooperation in Europe, promotes human rights, military security, and economic cooperation in 57 countries in Europe, Eurasia, and North America. Transcript | Episode 25 | Russia Hates the Truth  

  • Podcast: Damocles' Sword

    The upcoming Tokyo Olympics, slated to take place late July after a one-year postponement, will be the first international athletic event since the passage of the Rodchenkov Anti-Doping Act (RADA) in December 2020, which established criminal penalties on individuals involved in doping fraud conspiracies affecting major international competition. The law, named after Russian doping whistleblower Dr. Grigory Rodchenkov, empowers the U.S. Department of Justice for the first time to investigate and prosecute these rogue agents who engage in doping fraud, provide restitution to victims, and protect whistleblowers from retaliation. In his first public interview since RADA became law, Dr. Rodchenkov speaks about the impact of the legislation that bears his name, as well as the blatant corruption that exists in the world of international sport, the vital role of whistleblowers, and more. He is joined by Helsinki Commission policy advisor Paul Massaro, who sheds light on the game-changing new tools created by the legislation and its importance to the U.S. fight against corruption worldwide. "Helsinki on the Hill" is series of conversations hosted by the U.S. Helsinki Commission on human rights and comprehensive security in Europe and beyond. The Helsinki Commission, formally known as the Commission on Security and Cooperation in Europe, promotes human rights, military security, and economic cooperation in 57 countries in Europe, Eurasia, and North America. Transcript | Episode 15 | Damocles’ Sword: The Impact of the Rodchenkov Anti-Doping Act

  • Justice at Home

    Promoting human rights, good governance, and anti-corruption abroad can only be possible if the United States lives up to its values at home. By signing the Helsinki Final Act, the United States committed to respecting human rights and fundamental freedoms, even under the most challenging circumstances. However, like other OSCE participating States, the United States sometimes struggles to foster racial and religious equity, counter hate and discrimination, defend fundamental freedoms, and hold those in positions of authority accountable for their actions. The Helsinki Commission works to ensure that U.S. practices align with the country’s international commitments and that the United States remains responsive to legitimate concerns raised in the OSCE context, including about the death penalty, use of force by law enforcement, racial and religious profiling, and other criminal justice practices; the conduct of elections; and the status and treatment of detainees at Guantanamo Bay and elsewhere.

  • Justice Overseas

    Human rights within states are crucial to security among states. Prioritizing respect for human rights and fundamental freedoms, defending the principles of liberty, and encouraging tolerance within societies must be at the forefront of America's foreign policy agenda. Peace, security, and prosperity cannot be sustained if national governments repress their citizens, stifle their media, or imprison members of the political opposition. Authoritarian regimes become increasingly unstable as citizens chafe under the bonds of persecution and violence, and pose a danger not only to their citizens, but also to neighboring nations. The Helsinki Commission strives to ensure that the protection of human rights and defense of democratic values are central to U.S. foreign policy; that they are applied consistently in U.S. relations with other countries; that violations of Helsinki provisions are given full consideration in U.S. policymaking; and that the United States holds those who repress their citizens accountable for their actions. This includes battling corruption;  protecting the fundamental freedoms of all people, especially those who historically have been persecuted and marginalized; promoting the sustainable management of resources; and balancing national security interests with respect for human rights to achieve long-term positive outcomes rather than short-term gains.

  • Our Impact by Country

Pages