Ukraine's Anticorruption Breakthrough: The New Law Introduces Compulsory Income and Expense Declaration for Government Officials

KYIV, Ukraine, April 11, 2011 - The new law On Principles of Prevention and Combating
Corruption in Ukraine, adopted by the Verkhovna Rada (the Ukrainian
parliament), stipulates that government officials and their close relatives
now are obliged to declare their income and, what is more important, any
expenses that exceed their income and publish such financial declarations in
the official press.

The draft of anticorruption law was submitted by Ukrainian
president last year and prepared in accordance with the requirements of the
United Nations Convention against Corruption, Council of Europe Criminal Law
Convention on Corruption, and Council of Europe Civil Law Convention on
Corruption.

Now government officials will have to declare their monthly
salary as well as an overall annual income including income received from
abroad. In addition members of state and regional government as well as their
close relatives, identified as spouses, children, parents, siblings,
grandparents, grandchildren, adoptive parents, adopted children, etc., will
have to disclose their assets including real estate, bank assets, equity,
information on existing loans, etc.

The groundbreaking innovation of this law is an unprecedented
for Ukrainian legislation obligation of public servants to declare their
expenses. Such practice is adopted in most developed countries as key element
in fighting corruption. Many countries scrupulously track incomes and
expenses of their public servants. For example, in Singapore, if an owner
cannot prove the legitimate origins of property, it is confiscated. In the US
and EU a civil servant may be visited by the tax authorities if discrepancy
is found between income and expenses.

Mykola Azarov, Ukrainian Prime Minister, said that the most
effective anti-corruption measure is to oblige Ukrainian officials to declare
all their spending and expenses.

The adopted law will take effect on July 1, 2011, except for the
article on financial control, which will be in force as of Jan. 1, 2012. The
new law requires all government officials including head of the state and
members of the parliament to bear criminal and/or administrative
responsibility for acts of corruption.

The new law would require no additional financial costs from
the state budget but will significantly contribute to the improvement of
Ukrainian legislation on combating corruption.

For more information, please contact Maryna Khorunzha, +380443324784
news at wnu-ukraine.com, Project Manager at Worldwide News Ukraine