Ukraine Reform Monitor No. 14

WHAT UKRAINIANS THINK MATTERS MOST
The ongoing war with Russia has wrought massive changes to Ukrainian society, and at long last put the country on the path of meaningful reform. That process, however, is still ongoing. And as the conflict nears its third anniversary, a new poll has taken the temperature of ordinary Ukrainians regarding the changes they think are most important for the country to accomplish. "At the top, with a huge margin of 74%, Ukrainians put the fight against corruption as the most important reform in Ukraine," outlines Oleksiy Antypovych, director of Sociological Group Rating, of his institute's most recent survey of Ukrainian opinion. "Of course, they spoke about the reform of national security and defense, and that of the judicial system - both received 36% support. The rest of the reforms were scored much lower because, in principle, all our reforms have or can be reduced to fighting against corruption."

Here, Ukrainians posit, more work still needs to be done. "We say the same thing about the reform of the judicial system and prosecutor's office - more than 70% are not satisfied. The national security and defense reform... is in third place with very equal indicators, that is, as much as a Ukrainian is satisfied, they are just as dissatisfied with its implementation," Antypovych notes. The survey, carried out by Sociological Group Rating in late September at the request of the EU Consultative Mission in Ukraine, tallied some 2,000 respondents from across the country. (UKRINFORM, October 29, 2024)

NEW WORLD BANK, EU FUNDS HEADED FOR KYIV
In mid-October, the World Bank executive board greenlit the creation of a financial intermediary fund for Ukraine. The new mechanism is designed to help the G7 fulfill its goal of providing Kyiv with $50 billion in aid. The fund will feature as yet undetermined contributions from the United States, Canada, and Japan. However, a significant portion of the fund will be drawn from a different source: revenue generated from the frozen assets of the Russian government. Nor is the World Bank alone. Nearly concurrently, the EU has passed a similar measure worth over $38 billion, likewise financed with the help of interest from frozen Russian assets.

Cumulatively, the contributions promise to be crucial for Kyiv. "This is a game-changing amount of money," says Josh Lipsky of the Atlantic Council's GeoEconomics Center. "It's real resources on the ground that can make a difference." They are also a tangible sign of Europe's ongoing commitment to Ukraine, which is estimated to have spent between $80 and $90 billion to fight back against Russia's war of aggression last year. (Reuters, October 10, 2024)

TOKYO BACKS KYIV'S JUDICIARY REFORM BID
Back in August, Japan signed a deal with Ukraine to support of Kyiv's reform of its judiciary. The agreement, inked during Japanese Justice Minister Ryuji Koizumi's visit to Kyiv, will see Japan assist in the cultivation of "human talent" for judicial positions throughout Ukraine. Tokyo has been a leading force for anti-corruption measures in Ukraine, and headed a cohort of G7 justice ministers to create a task force on the subject back in February of 2022. The August deal, moreover, builds on an earlier June 2024 agreement under which Japan agreed to provide Ukraine long-term assistance on anti-corruption matters. (Kyodo News, August 5, 2024)

A FIRE SALE IN KYIV
The Ukrainian government has launched a new campaign to sell off state-owned businesses to private entities. The impetus behind the effort is twofold. First, revenues from the sale of the enterprises will help support Ukraine's ongoing fight against Russia, and be used both to bolster the country's military and to shore up its badly-depleted state reserves. Second, by privatizing, Ukrainian officials are hopeful they can incentivize organizations like the World Bank's Multilateral Investment Guarantee Agency to provide insurance to entities situated near the battle lines with Russia. To this end, the State Property Fund of Ukraine is hosting the auctions, and plans to use the "Prozorro.Prodazhi" platform to provide transparency and enable a wider swath of the population to participate. Included in auctions upcoming are the Ukraine Hotel (being offered for $36 million) and titanium producer UMCC Titanium (valued at $94 million). (Kyiv Post, August 28, 2024)