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The European Business Association (EBA), the American Chamber of Commerce in Ukraine (ACC) and the Union of Ukrainian Entrepreneurs (SUP) welcomes and fully supports the Ukraine\u2019s President\u2019s and Government\u2019s statements on improving the investment\u00a0climate in Ukraine and the initial steps taken. Measures to fight corruption through the removal of blanket parliamentary immunity, passage of the new law on concessions, and legislation regarding privatization and property rights protection will indeed send\u00a0a strong signal to foreign investors that Ukraine is truly open for investment. Continued efforts by the President and Government to attract foreign investment will be vital to achieving the new administration\u2019s goal of 5-7% GDP growth year-on-year.<\/p>\n
A crucial pre-condition to inspiring investor confidence to put significant capital into Ukraine is the stability and predictability of the rule of law. It is vital to create an environment where investors and businesses feel secure\u00a0in the irrevocability of established rules and the even-handed protection of property rights adjudicated by an independent judicial system free from interference by executive authority.<\/p>\n
It is in this context that our three associations raise our concerns regarding the proposed changes to the selection of judges and composition of the Supreme Court of Ukraine set out in Draft Law #1008 \u201cOn Amendments to Certain Laws of Ukraine regarding the Functioning of Judicial Governance\u201d (Draft Law #1008). We fear that the proposals set out in these initiatives may serve to undermine\u00a0the trust and confidence of foreign investors necessary to encourage large-scale investments to achieve the administration\u2019s economic growth goals.<\/p>\n
Regarding the judicial reform proposals set out in Draft Law #1008, our associations have been following events since the Draft Law\u2019s introduction in early September for the first reading. We find quite worrying the concerns\u00a0of the international community expressed in the joint statement of the Canadian Embassy in Ukraine and the European Commission Delegation dated September 11, 2019, the letter from the Secretary-General of the Council of Europe dated\u00a0 October 1, 2019, and the Resolution\u00a0of Plenum of the Supreme Court of Ukraine dated September 16, 2019, Assessment of Draft Law by the Council of Europe dated September 2019, letter of the American Chamber of Commerce in Ukraine dated September 27 as well as the views of members of the Public Integrity Council of the Higher Qualification Commission of Judges, civil society and professional legal organizations regarding the potentially\u00a0deleterious impact of Draft Law #1008 on the independence of the judicial system. We cannot stress strongly enough the importance to business of an effective and independent court system that offers prompt access to justice and high-quality decisions resolving\u00a0disputes. Our concern is that Draft Law #1008 may serve to undermine principle of the rule of law, restrict access to justice, which is an imperative prerequisite to protecting the sanctity of property rights and the much-needed confidence among the business community to make further investments into Ukraine\u2019s economy.<\/p>\n