Corruption: There were multiple reports of systemic rampant corruption among Crimean “officeholders,” including through embezzlement of Russian state funds allocated to support the occupation. For example, on March 28, a “district court” found the former head of the Feodosiya city administration, Dmitri Shchepetkov, guilty of abuse of office and attempted bribe taking. He was sentenced to eight years in prison and fined 42 million rubles ($560,000).

The law provides criminal penalties for corruption. Authorities did not effectively implement the law, and many officials engaged in corrupt practices with impunity. While the number of reports of government corruption was low, corruption remained pervasive at all levels in the executive, legislative, and judicial branches of government.

The High Anticorruption Court started its work in September 2019. The court’s creation completed the country’s system of bodies to fight high-level corruption, complementing two previously created anticorruption agencies, the National Anticorruption Bureau and the Special Anticorruption Prosecutor’s Office. During the first year of its operations, the High Anticorruption Court issued 20 sentences, including 19 convictions (nine of which resulted in imprisonment) and one acquittal. Prior to the court’s establishment, general jurisdiction courts considering cases brought by the National Anticorruption Bureau and the Special Anticorruption Prosecutor’s Office issued 34 sentences, only two of which resulted in imprisonment. Although the hearing continued, on April 3, the High Anticorruption Court issued its first decision on the measure of “restraint for officials charged with top corruption,” setting bail at 80 million hryvnias ($2.8 million) for former member of parliament Maksym Mikitas. As new cases were opened, the court also set bails in the amount of 100 million hryvnias ($3.5 million) for Member of Parliament Yaroslav Dubnevych, and 120 million hryvnias ($4.3 million) for former member of parliament Olena Mazurova. It enforced penalties for violating bail terms, charging Mikitas 30 million hryvnias ($1.1 million) and former member of parliament Vadim Alperin 35 million hryvnias ($1.3 million). As of September the court’s account had 756 million hryvnias ($27 million) in bail money, more than twice its annual budget.

Despite their successes, the new independent anticorruption bodies faced political pressure from antireform elites and oligarchs that undermined public trust, raised concern about the government’s commitment to fighting corruption, and threatened the viability of the institutions. Since the inception of the anticorruption infrastructure, various political actors attempted to embed loyal agents in the institutions through legislative changes and political leverage over selection procedures or to dissolve them altogether. In this regard, human rights groups called for more transparency and impartiality respecting procedures for appointing the heads of the bodies. Current selection procedures of the new head of the Special Anticorruption Prosecutor’s Office continued at year’s end.

Human rights groups claimed another threat to the anticorruption infrastructure came from the Constitutional Court, where antireform interests exercised undue influence on judges. From August to October, the Constitutional Court ruled unconstitutional certain provisions of the National Anticorruption Bureau law, a presidential decree to appoint the bureau’s director, and certain provisions of the anticorruption legislation that established the country’s asset declaration system for public officials. The court was also reviewing the constitutionality of the High Anticorruption Court law and several other reform laws.

Corruption: While the government publicized several attempts to combat corruption, it remained a serious problem for citizens and businesses alike.

In July the former acting head of Ukravtodor, the state agency for road maintenance, Slawomir Novak, was detained in his native Poland on suspicion of corruption based on a joint investigation by the National Anticorruption Bureau and Polish authorities. According to the bureau, Novak’s activities while heading Ukravtodor during 2016-19 “were aimed at embezzling funds from international organizations that allocated money for road repairs.”

As of November the National Anticorruption Bureau had investigated 986 criminal cases with 261 billion hryvnias ($9.6 billion) of losses and 390 suspects since its inception in 2015.

Financial Disclosure: The law mandates filing of income and expenditure declarations by public officials and allows for public access to declarations and sets penalties for either not filing or filing a false declaration. By law the National Agency for the Prevention of Corruption is responsible for reviewing financial declarations, monitoring the income and expenditures of high-level officials, and checking party finances. Observers increasingly questioned, however, whether the agency had the capacity and independence to fulfill this function. On October 27, the Constitutional Court ruled certain provisions of the financial disclosure law unconstitutional and deprived the agency of most of its powers. The controversial ruling reversed a key anticorruption reform and led the president and parliament to call for the dissolution of the Constitutional Court, describing it as a threat to the country’s sovereignty and national security. In response to the ruling, the National Anticorruption Bureau closed 110 proceedings on false declarations and the High Anticorruption Court stopped 17 court cases in process. In December parliament passed legislation reinstating the asset declaration system, and President Zelenskyy later endorsed it.

On July 7, President Zelenskyy informed the National Agency for the Prevention of Corruption that he had not submitted notifications of significant changes in property status, prompting the agency to initiate administrative proceedings against him. In July 2019 President Zelenskyy bought and sold government bonds with a total value that exceeded the reporting threshold. According to the law, public officials must submit notifications of significant changes in property status to the Register of Declarations within 10 days from the time of the transaction. No such notification was received by the Register. On July 24, a court in Kyiv closed the administrative case against President Zelenskyy, noting that under the constitution, the president enjoys immunity from prosecution while in office.