A number of business associations have criticized all four bills submitted to the Verkhovna Rada regarding amendments to the Criminal Procedure Code and the law "On the Prosecutor's Office" (No. 12367 and three alternatives), which propose the repeal of the so-called "Lozovoy amendments" that limit the statute of limitations for criminal cases, and call for their consideration to be postponed until consultations with the business community are conducted.
"The proposed changes pose risks of violating the principle of presumption of innocence, the principle of adversarial proceedings, and shifting the burden of proof onto the defense, which significantly impacts the business environment in Ukraine," the joint statement notes.
It was signed by the Federation of Employers of Ukraine, the Association of Entrepreneurs-Veterans of ATO, the Union of Ukrainian Entrepreneurs, the Diia.City United Union, "Manifest 42", the Coalition of Business Communities for the Modernization of Ukraine, the Ukrainian Union of Industrialists and Entrepreneurs, the International Business Community Board, and the Chamber of Commerce and Industry of Ukraine.
The adoption of the specified law by the end of 2024 was one of the structural benchmarks of the Extended Fund Facility (EFF) program of the International Monetary Fund. If the law is not passed by the next program review in February-March 2025, this could jeopardize the allocation of the next tranche.
The authors of the statement believe that the passage of these bills would de facto mean an automatic extension of pre-trial investigation periods. It is noted that the decision to extend will be transferred to the competence of the heads of territorial units of the prosecutor's office and SAP, rather than investigative judges, as is currently provided (except for bill No. 12367-2). This will undermine the principle of adversarial proceedings in the process and lead to unjustified delays, resulting in pre-trial investigations lasting the maximum time allowed by law.
The authors of the statement also criticize the repeal of the existing provision on the automatic closure of criminal proceedings (except in cases where a person is notified of suspicion of committing a serious or particularly serious crime against life and health), if the pre-trial investigation period has expired after the notification of suspicion.
"In other words, the burden of proving the necessity of closing the case is shifted to the defense through filing a motion in court, which will require overcoming a lengthy process of consideration and appeal regarding possible abuses of deadlines and inaction by the prosecutor's office," the appeal states.
Business associations add that due to such uncertainty and the potential for abuse, law enforcement will send indictments to the courts, and at the stage of preparatory proceedings, nothing can be done, forcing the defense to go through the entire judicial process.
"Thus, the proposed changes introduce even greater uncertainty within criminal proceedings, paralyzing and blocking economic and commercial activities due to investigative actions and prolonged deadlines. Such changes may create additional leverage over entrepreneurs and potential pressure on businesses, as well as grounds for the arbitrariness of law enforcement agencies," the statement concludes.
The associations urge the Verkhovna Rada to initiate broad discussions with business representatives, experts, and the public to develop balanced changes that will enhance access to justice without creating additional risks for businesses.
At the same time, the head of the Anti-Corruption Center (ACC), Vitaliy Shabunin, who engaged in a discussion with entrepreneurs on this issue on Facebook, believes that bill No. 12367-3 addresses the issue of the "Lozovoy amendments" without harming businesses while maintaining a 12-month investigation period, whereas the aim of others is to "deceive Ukrainians with a pseudo-repeal of the cursed amendments."
Shabunin emphasized that the bill he mentioned complies with Ukraine's obligations to the EU under the Ukraine Facility, and its adoption will bring Ukraine EUR 350 million.
"If the bill is passed, it will become profitable for perpetrators of crimes to betray the organizers of schemes to NABU and SAP... It was explained in very simple terms – literally on fingers – that it concerns closing a loophole to save top-corruptionists," the head of the ACC stressed.