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2007 Assessment

Ukraine: Integrity Indicators Scorecard

Ukraine: Integrity Scorecard Report > Sub-Category: Political Financing
Indicators		Score
20	Are there regulations governing political financing?	57
21	Are the regulations governing political financing effective?	17
22	Can citizens access records related to political financing?	50

Indicator and sub-Indicator Details

Are there regulations governing political financing?

20a: In law, there are regulations governing private contributions to political parties.

Score:

YES

Comments: Donations to political parties may not be made by charities, religious associations or organizations.

According to the same law, bodies of state power, governmental agencies, public institutions and local self-governance bodies may not make donations to political parties. The state, however, provides some funding for purposes of election campaigns (as provided for by the presidential, parliamentary and local election laws).

No donations may be made by foreign states or institutions. Donations to political parties may not be made by other political parties that are not members of the same electoral block.

References: Law "On Political Parties in Ukraine" (approved April 5, 2001)

20b: In law, there are limits on individual donations to candidates and political parties.

Score:

YES

Comments: Foreign nationals and stateless persons may not donate to political parties and/or candidates. The amount of a donation by individual - a citizen of Ukraine during an election campaign is limited to the equivalent of US$3,207.50 (i.e. 1,000 of non-taxed minimum income of an individual). No donations to political parties may be made anonymously or by individuals using pseudonyms.

References: Law "On Political Parties in Ukraine" (approved on April 5, 2001) Art. 36, Law "On Election of People's Deputies of Ukraine"

20c: In law, there are limits on corporate donations to candidates and political parties.

Score:

YES

Comments: State-owned and communal enterprises, as well as enterprises and institutions, shares of which are owned by non-residents; and corporations owned by foreign nationals may not donate to political parties and/or candidates. The cap is on the total amount that can be spent by a party or candidate on a campaign through a special election fund (up to UAH 2,255,000 or about US$425,472); there is also a limit on the size of a personal (individual) donation to a campaign account of a political party (block) or candidate (17,000 UAH, or about US$3,210).

Funds that may be used by a party (block) or candidate for an election campaign are limited to the party's (candidate's) own funds and donations by private individuals. Financial contributions to political parties by corporate donors beyond the election periods are not prohibited and are not limited.

References: Law "On Political Parties in Ukraine" (approved on April 5, 2001)

20d: In law, there are limits on total political party expenditures.

Score:

YES

Comments: According to estimates of the Central Election Commission, early election of national deputy will cost UAH 340 million. The Law on Election stipulates that required funds shall be paid from the State Budget of Ukraine. UAH 156 million is allocated for the Central Election Commission in the 2007 Budget. Such a sum may cover initial arrangements of the campaign, but utilization of such fund for needs of the early election should be authorized by the Verkhovna Rada, in order to prevent any future accusations in misapplication of budgetary funds.

References: Art. 36, Law "On Election of People's Deputies of Ukraine"

Peer Review Comments: There is a cap on how much a party is allowed to spend on the election campaign.

20e: In law, there are requirements for disclosure of donations to political candidates and parties.

Score:

YES

$Scoring Criteria :: YES: A YES score is earned if there are any requirements mandating the disclosure of financial contributions to political parties or candidates. NO: A NO score is earned if there are no requirements mandating the disclosure of contributions to political parties or candidates, existing regulations do not require a donor\'s name or amount given, or the regulations allow for anonymous donations.$

Comments:

References: Law "On Political Parties in Ukraine" Art. 15

20f: In law, there are requirements for the independent auditing of the finances of political parties and candidates.

Score:

YES

Comments:

References: Interview with MP Levchenko

20g: In law, there is an agency or entity that monitors the political financing process.

Score:

YES

Comments:

References: Interview with MP Levchenko

Are the regulations governing political financing effective?

21a: In practice, the limits on individual donations to candidates and political parties are effective in regulating an individual's ability to financially support a candidate or political party.

Score:

100

Comments:

References: Interview with politicians

Peer Review Comments: The practice of parties effectively selling places on their lists is widely acknowledged by deputies and in the media, with the regular publication of price-lists. No parties seem immune from this process, although clearly the more successful parties have the greatest opportunities to generate campaign funding this way.

Peer Review Comments: There is open discussion of which of Ukrainian oligarchs finance which party or campaign - they often run counter to the demands of the law.

21b: In practice, the limits on corporate donations to candidates and political parties are effective in regulating a company's ability to financially support a candidate or political party.

Score:

100

Comments:

References: Assessing Ukraine's Competitiveness Amid Political Change # 25 (553) 2 8 July 2005 Zerkalo Nedeli See: [ LINK ]

21c: In practice, the limits on total party expenditures are effective in regulating a political party's ability to fund campaigns or politically-related activities.

Score:

100

Comments: The total party expenditures are not transparent according to an interview with the head of the Central Election Committee.

References: [ LINK ]

21d: In practice, when necessary, an agency or entity monitoring political financing independently initiates investigations.

Score:

100

Comments:

References: Interviews with the leader of human rights protection NGO

21e: In practice, when necessary, an agency or entity monitoring political financing imposes penalties on offenders.

Score:

100

Comments:

References: Interviews with the leader of human rights protection NGO

21f: In practice, contributions to political parties and candidates are audited.

Score:

100

Comments:

References: Interview with MP Levchenko Katerina

Can citizens access records related to political financing?

22a: In practice, political parties and candidates disclose data relating to financial support and expenditures within a reasonable time period.

Score:

100

Comments:

References: Interview with MP

Peer Review Comments: It is not a usual practice for a party to disclose any information about campaign financing.

22b: In practice, citizens can access the financial records of political parties and candidates within a reasonable time period.

Score:

100

Comments:

References: Interviews with MP

22c: In practice, citizens can access the financial records of political parties and candidates at a reasonable cost.

Score:

100

Comments: Records are free but not available.

References: Interview with MP