Policy paper

Ukraine Reform Conference: communiqué

Published 7 July 2017

This was published under the 2016 to 2019 May Conservative government

The Government of Ukraine, the Ministers and representatives of the participating states and international organisations listed below, met in London on 6 July 2017 and jointly decided that:

1. We remain fully committed to supporting Ukraine’s continued delivery of the reforms needed to build a secure, stable and prosperous future. Through sustained support and its own commitment to reforms and tackling corruption Ukraine has the potential to flourish and realise the full potential of its people. Through our collective efforts, we remain fully committed to supporting Ukrainians’ desire for change and a future of their own choosing. They demand and deserve a country which is secure, accountably and transparently governed, free of corruption, and which provides attractive and prosperous economic opportunities for all. Ukraine’s reform efforts are central to this transition and require the backing of all interests in the country and meaningful constructive engagement with civil society and independent media. It is in all our long-term interests that Ukraine succeeds on this path.

2. We welcome the progress Ukraine has made on a number of key areas of reform following the 2014 Revolution of Dignity, noting in particular key achievements in stabilising the economy; fighting corruption through the creation of three new anti-corruption institutions and the launch of the ground-breaking e-declarations system; increased transparency in public procurement including the new ProZorro system; clean-up of the banking sector; and beginning important reforms in the energy sector to increase market transparency, encourage energy efficiency and diversify its gas supply.

3. Ukraine’s commitment to increased integration with the global economy and greater adherence to international norms through the Free Trade Agreements it has negotiated, including the Association Agreement/DCFTA with the EU and the Canada-Ukraine Free Trade Agreement, will help create the conditions for it to attract high quality foreign investment and will support economic growth. We look forward to the EU-Ukraine Association Agreement’s entry into force and Ukraine’s implementation of the necessary measures in order to take full advantage of it.

4. We commend the Government of Ukraine for its launch of the reform Action Plan 2017-2020. We welcome the Plan for its ambitious and wide-ranging objectives and for the Ukrainian Government’s commitment to its effective execution through coordination and cooperation with donors, international partners and civil society. We affirm the strong partnership between us and the Government of Ukraine in supporting delivery of reform, while noting that this partnership depends on a long-term commitment to tangible, sustainable and irreversible progress on the part of the Government of Ukraine, its partners and international donors. We affirm our support for civil society’s role in shaping these reforms as well as its indispensable role in the implementation of these reforms.

5. We stress the importance of keeping up the momentum on reform, including through the full implementation of the reforms adopted so far, and meeting the conditions attached to the International Monetary Fund’s Extended Fund Facility and the EU Macro-Financial Assistance. Ukraine has achieved more on reforms in the last three years than in the preceding two decades. Further challenging yet essential reforms lie ahead and tackling corruption in Ukraine will be key to the success of the rest of the reform agenda. In addition to the financial support already pledged we, the donors and international partners, commit to participating fully in coordination and follow up actions as appropriate after this Conference and, according to relevant expertise and experience, continuing to provide technical advice on design and delivery of reforms. For its part, Ukraine commits to the full implementation of its Action Plan and close coordination with its partners, civil society and the Ukrainian public.

6. Key priorities under the economic growth pillar include: a better investment climate, land reform, privatisation, energy sector reform and infrastructure development. Comprehensive reform of state owned enterprises including improved corporate governance, together with privatisation or liquidation, will help to set Ukraine firmly on a more sustainable economic path. Reform of the State Property Fund will be essential for this.

7. Under the good governance pillar, priorities include: public administration reform, public finance management reform, electoral reform, decentralisation and e-governance. The Government of Ukraine will focus in particular on improving its policy development and strategic planning function for the removal of redundant functions of state bodies, increasing the effectiveness of public service, ensuring the Cabinet of Ministers plays a central coordinating role and ensuring transparent recruitment and promotion processes for professional civil servants.

8. Priorities under the human capital pillar include: healthcare reform (covering procurement of medications, locking in the funding formula for provision of healthcare to prioritise citizens and outcomes, fixing the contract between the state and the citizen with respect to access to healthcare); education reform; and pension and social welfare reform, in particular including social protection for the vulnerable, conflict-affected population.

9. In the area of rule of law and anti-corruption, priority actions include: judicial reform; ensuring the independence and integrity of the anti-corruption bodies; applying a zero-tolerance approach to corruption; continued implementation and verification of the electronic asset/income declaration system; and increasing the risks and costs for those attempting to engage in corrupt practices. The Government of Ukraine expressed its full commitment to building trust in and increasing the authority and independence of the new anti-corruption institutions and processes, particularly the associated prosecutorial and judicial organs that are essential for Ukraine’s long-term future and prospects.

10. Under the security and defence pillar, Ukraine’s Strategic Defence Bulletin (SDB) provides a comprehensive roadmap for security and defence sector reform. Reforms to promote agility and innovation in the defence sector are key and will assist Ukraine in meeting its commitment to Euro-Atlantic standards and principles, including establishing democratically accountable armed forces. Priorities include: fostering a culture of change, drawing on Ukraine’s rich human capital; building professional institutional capacity inside the Ministry of Defence and in other relevant ministries; promoting effective civilian oversight and good governance; and engaging with civil society, the Verkhovna Rada, national and international stakeholders and partners to build trust and confidence and to ensure transparency and accountability in decision making and implementation.

11. We will meet again to review progress and reaffirm our shared commitment to further assisting Ukraine with its positive progress on reform. We welcome the Government of Denmark’s offer to host the 2018 meeting in Copenhagen.

Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, the European Union, Finland, France, Germany, Greece, Ireland, Iceland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Norway, the Organisation for Economic Cooperation and Development (OECD), Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, United States of America.