Ukraine’s answer to the challenge of better business environment


The ‘Better Regulation Delivery Office’ (BRDO) of Ukraine has been truly living up to its name – with its expert, dynamic approach, it has proven to be a catalyst for improving the business environment and delivering concrete regulatory results that has helped to stimulate economic growth and boost the investment climate.

As an independent regulatory policy advising and delivery institution, supported by the EU under the FORBIZ project and within the framework of EU4Business Initiative, during the past two years, the BRDO has become a key player in providing expertise on the key regulatory reform issues aimed to ensure a level playing field for businesses in Ukraine.

The BRDO’s highly competent legal experts and sectoral analysts in the priority sectors of Agriculture, Construction, Energy, Transport and Infrastructure, Market Surveillance and IT & Telecom have been instrumental in addressing ambitious regulatory challenges and delivering tangible results, recognised by the Government and the business community.

Less administrative burden on SMEs

By employing a sophisticated Rolling Review methodology, that has also been acknowledged by the OECD, the BRDO has reviewed the Association Agreement (AA) compliance of over 2,250 regulatory acts. The review accounts for 33% of all the acts governing the business conduct in Ukraine in priority segments of Agriculture, Construction, Energy, Transport, IT & Telecommunications and Market Surveillance. More than 700 obsolete regulatory acts have been abolished by the Ukrainian Government with support of the BRDO, marking another big step towards reduction of administrative burdens for entrepreneurs in Ukraine, improved and more transparent business environment.

Clear rules of the game for entrepreneurs

To stimulate equal access to market and transparent business environment in compliance with the AA, the BRDO has played a crucial role in assisting the ministries and other regulatory agencies in developing over 127 draft laws and regulatory acts in priority segments, in compliance with the AA and in close consultation with the Ukrainian business community. This includes some of the most critical issues affecting businesses in Ukraine, such as the launch of the market for mobile payments, public access to urban planning documentation, protection from real estate frauds and other. Around 20 legal acts already have been adopted by the Ukrainian Government, ranging from deregulation in migration and employment regulation, cutting bureaucracy on food pricing, improved regulation for the provision of mobile financial services, to public access for city planning documentation.

Consultations with the business community

The consultations, and discussions of policy options and their impact, are still more the exception that the rule in Ukraine, according to Chatham House. The ‘PRO Dialogue’, facilitated by the BRDO, however, is the first systemic effort to engage the business community into the regulatory policy- and decision-making in the country. The high relevance of the reform issues proposed within the ‘PRO Dialogue’ consultation outreach in six priority sectors is confirmed by more than 80% of stakeholders. Furthermore, the extensive engagement of over 1,500 stakeholders throughout the country shows that the Ukrainian business community is ready to take an active role in shaping a business-friendly environment. The results of the ‘PRO Dialogue’ confirm the business community’s capacity to be a vital driving force of the regulatory reform process. Jointly with the regulators and policy-makers, the business community can play a vital role in addressing regulatory problems as well as stimulating economic development, a favourable investment climate and economic growth. To sustain reform momentum and drive stakeholder interest and engagement, the key problems and potential solutions of each priority segment have been widely covered in national and social media – the reform messages have reached almost 4 million people, providing additional impetus to growing awareness and support.  

One-stop info on business regulations

A new, comprehensive, innovative and user-friendly PRO - Platform for Effective Regulation has been launched by the Better Regulation Delivery Office within the framework of EU4Business|FORBIZ project and the under auspices of the Ministry of Economic Development and Trade of Ukraine, targeting regulators, policy makers and Ukrainian business community. By helping the SMEs navigate the maze of governmental procedures, the portal is meant to simplify starting and operating a business in Ukraine. It is also recognised as the most advanced and analytical platform for businesses in the regulatory realm in Ukraine – the portal has on average of more than 20,000 unique monthly users.

Stimulating entrepreneurship and small businesses

Service-oriented small businesses act as a key indicator and barometer of the presence of a healthy and vibrant economy in the country. By aggregating the legal norms and regulations governing SMEs, the Portal’s business pillar provides an efficient and clear roadmap on how, with minimal regulatory headaches, to open and operate over 25 different small businesses in Ukraine’s service sector. The cases include kindergarten, taxi services, bakery, EV charging station, hairdressers, family doctor’s office and others. Recognised by the slogan #StartBusinessChallenge and widely communicated in media, the business roadmap tool is a yet another practical example of empowering businesses in Ukraine. 

Transparent business inspections  

A transparent inspection system is one of the key indicators of the business-friendly environment of a country. Due to inspections’ reoccurring and non-transparent nature, alleviation of the present regime is seen by businesses as particularly important. The BRDO, in close cooperation with the Cabinet of Ministers, the Ministry of Economic Development and Trade, State Regulatory Service and relevant line ministries has embarked on a comprehensive modernisation of the currently erratic system.  This new, multifaced approach spearheaded by the BRDO, includes reliance on risk-based methodology, and creation and utilisation of a transparent inspection check-list. The comprehensive pilot of the Inspection Portal Web Service (IAS) featuring all inspection plans, inspection requirements and results has been launched and is already being used by over 200,000 business users during the past months. The inspection reform aims to enhance the predictability and assure the transparency of the new inspection system, thus providing the business community with a vastly improved business inspection environment.

More information regarding BRDO activities can be found in their activity report online