Verhovna Rada of Ukraine has adopted new basic anti-corruption law

day before yesterday, on October 14, 2014 Verhovna Rada of Ukraine has adopted a few new laws on prevention and counteraction to corruption. These include, inter alia, a new basic anti-corruption law – the Law of Ukraine “On prevention of corruption”.

The main innovations under the new Law are as follows:

1. Basic terminology was expanded, now it includes definitions of the new terms such as “gift” (a category different from “illegal benefit”), “potentialconflictofinterests”and “real conflict of interests”, “breachrelatedtocorruption” (a category different from “corruption offence”).
2. New approaches on identification of persons whom the provisions of the Law apply to were implemented.
3. Limitofthe total value of the gifts, allowed to obtain from a single source within the year, was changed. It was stated a specific list of actions for a person to whom restrictions regarding obtaining the gifts apply, if such a person receives an offer of a gift or if a gift was left in an office, as well as the consequences of making any decisions by such a person, who receives a gift, in favor of a donor.
4. Requirements to anti-corruption measures, which are mandatory forany and alllegalentities, as well as special requirements related to the actions of the legal entities which are participants of the procedure of the state procurements according to the Law of Ukraine “On state procurements” (in particular, requirements on approval and coordination with the National commission on prevention of corruption of an anti-corruption program, introduction of a position of the Commissioner of the anti-corruption program etc.) were stipulated.

According to the Final and Transitional provisions the Law of Ukraine “On prevention of corruption” will enter into force from the date next to the date of its publication. On the same date currently effective Law of Ukraine “On principles of preventing and counteracting corruption” and Law of Ukraine “On principles of ethical behavior” will become invalid.

Herewith, Cabinet of Ministers of Ukraine will be obliged within 6-month-period from the date of entrance into force of the mentioned Law to carry out actions in order to ensure adoption and bring the relevant legal acts in line with the requirements of this Law, and to establish the National commission on prevention of corruption. Prior to the bringing the legal and other acts in line with the Law of Ukraine “On prevention of corruption” provision of such acts will be deemed valid unless they contradict with the Law.

Without any doubts the new Law will affect the activities of any and all pharmaceutical companies in Ukraine. In particular, pharmaceutical companies must adapt their inner politics, regulations and business-processes to the new legal requirements and rules. As far as Legal Alliance has profound practical skills within the sphere of complianceinpharmbusiness, we are ready to assist you to carry out all the required actions.