Ukraine is currently in the final stages of obtaining membership in the European Union, which requires harmonization of national legislation with EU standards. One of such requirements is the legalization of the lobbying market, which the Verkhovna Rada adopted in the first reading of the draft law “On Fair Lobbying” on February 23, 2024 (hereinafter – the Draft Law) (registration No. 10337).
In addition, the President of Ukraine, Volodymyr Zelenskyy, has repeatedly stated the need to adopt the relevant law, arguing that its adoption is a necessary new step for the country’s accession to the European Union, along with the adoption of a law to expand the powers of the Specialized Anti-Corruption Prosecutor’s Office.
Lobbying is a purposeful legal or illegal influence on state and local authorities and their officials, directed at them on behalf of another person, organization or group. The purpose of lobbying is to secure one’s own interests or the interests of third parties (clients) in management decisions.
In general, lobbying is a part of democracy, where everyone has the right to defend their interests by all legal means. The two main goals of lobbying regulation are to ensure transparency of the political system and accountability of political actors. Transparency includes a clear understanding of who makes decisions, what the lobbying activities are, who benefits from them, and who pays for them.
Why legalize lobbying?
- Reducing corruption. The state will gain control and additional tax revenues to the budget. And businesses will be able to legally and professionally lobby for their interests;
- Promoting the creation of new jobs;
- Promotes the creation of a more transparent and regulated system of influence on political processes. When lobbying is legalized and regulated, it can be controlled, ensuring that influential groups act openly and in accordance with established rules;
- Legalization of lobbying can facilitate the participation of different groups in the political process. If the rules of lobbying are clear and accessible, NGOs, citizens and other parties can more effectively use their influence on political decision-making.
In other words, lobbyists are a kind of communication managers. They convey information to government officials about the need to address certain issues and offer options for their legislative regulation. The purpose of such communication is to influence the decision-making process.
In its draft law, the government defines this concept as follows: a lobbyist is an individual or legal entity and its employees who lobby in the interests of a client on the basis of a relevant agreement and whose information is entered in the Transparency Register. At the same time, the Cabinet of Ministers proposes to broadly limit the range of such persons.
They will be banned:
1) Top state officials, MPs of all levels, village heads and mayors, civil servants, local government officials, military officials, judges, prosecutors and other officials with special status, members of the Central Election Commission, police and other officials;
2) Former officials for whom the ban will be in effect for 2 years from the date of their dismissal;
3) Persons with unspent or unexpunged criminal record;
4) Persons who have been prosecuted for corruption offenses (or corruption-related offenses);
5) Persons who have been recognized as legally incapacitated or with limited legal capacity, as well as persons under the age of 18;
6) Citizens or residents of russia;
7) Legal entities under public law (government agencies, etc.);
8) Individuals and companies included in the list of persons associated with terrorist activities or subject to international and/or national sanctions;
9) Companies whose beneficiary or founder (participant) is, in particular, a public official;
10) Subjects of lawmaking support, which include persons performing scientific, legal, expert, advisory, technical and other types of lawmaking support;
11) Companies subject to criminal law measures by a court verdict.
Instead, the draft law does not require a relevant education, practical skills in interacting with various government agencies, experience in government agencies, etc.
A lawyer, law firm, or law association will not be able to lobby under a legal aid agreement.
Cannot be the subject of lobbying:
– a court decision;
– decision and opinion of the Constitutional Court of Ukraine;
– an act on the announcement of mobilization;
– an act on the introduction of martial law and a state of emergency;
– declaration of a state of war and conclusion of peace upon the proposal of the President;
– use of the Armed Forces of Ukraine and other military formations;
– declaration of environmental emergency zones;
– an individual act.
The provisions of this Law will not apply to the people’s initiative at the all-Ukrainian referendum and the initiative at local referendums.
The government proposes to grant lobbyists the following rights, among others:
– represent the interests of the client;
– participate in events during the development of a draft legal act;
– enter administrative buildings of public authorities during lobbying;
– participate in their meetings when considering lobbying issues;
– to be included in the list of authors of a regulatory legal act;
– organize public events and information campaigns.
A systematic analysis of these rights, according to the VRU’s Main Scientific and Expert Department, shows that most of the actual rights granted to lobbyists in the Government’s draft law are already provided for by current legislation and can be exercised without obtaining lobbyist status: “Under such conditions, there is a possibility that lobbyists (compared to others) will bear an additional burden of responsibilities and will have risks of sanctions imposed by the National Agency for the Prevention of Corruption, and will not be sufficiently interested in registering as lobbyists.”
The Law on Fair Lobbying defines the boundaries of ethical and legal activities of lobbyists, promoting transparency, openness and interaction between the public and the authorities. Its adoption is a step towards increasing public confidence in the political process and ensuring equal opportunities for participation in legislative decision-making. The law reflects the importance of ethical standards in lobbying and contributes to a more transparent and responsible political culture.
After the law is passed in the second reading, the Government will define rules of ethical behavior for lobbyists that will be binding on them. However, the draft law is not clear on what legal mechanisms these rules will be implemented.
copyright / draft law / intellectual property / lobbying / The Verkhovna Rada
