EUROPEAN
COMMISSION

Brussels, 17.6.2022
COM(2022) 407 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT, THE EUROPEAN COUNCIL AND THE COUNCIL
Commission Opinion on Ukraine’s application for membership of the European Union

EN

EN

A.

INTRODUCTION

The aspiration to belong to the European Union has for many years been an important priority
for Ukraine, its governments and citizens. It has been an underlying motive for democratic
changes over the past decade and a driver of a number of key reforms founded on European
values. The decision in late 2013, of the then-President not to sign, the EU-Ukraine
Association Agreement, which symbolised for many Ukrainians a path towards the European
Union, led to large-scale protests against the authorities. Subsequently, the Russian Federation
moved against Ukraine, not accepting the independent choice of the Ukrainian people. While
losing control over part of its territory and suffering human and economic losses because of
the conflict in the eastern part of the country, Ukraine continued throughout the years as a
resilient democracy moving closer to the European Union and gradually aligning with the
acquis.
a) Application for membership
On 28 February 2022, five days after Russia launched its full-scale unprovoked and
unjustified aggression, Ukraine presented its application for membership of the European
Union. On 7 March 2022 the Council of the European Union requested the Commission to
submit its Opinion on this application. EU Heads of State and Government endorsed this
decision at the informal leaders meeting in Versailles 1.
Article 49 of the Treaty on European Union states that ‘Any European State which respects
the values referred to in Article 2 and is committed to promoting them may apply to become a
member of the Union. The European Parliament and national parliaments shall be notified of
this application. The applicant state shall address its application to the Council, which shall
act unanimously after consulting the Commission and after receiving the consent of the
European Parliament, which shall act by a majority of its component members. The
conditions of eligibility agreed upon by the European Council shall be taken into account.’
Article 2 states that ‘the Union is founded on the values of respect for human dignity,
freedom, democracy, equality, the rule of law and respect for human rights, including the
rights of persons belonging to minorities. These values are common to the Member States in a
society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality
between women and men prevail.’
This is the legal framework within which the Commission submits the present Opinion.
In June 1993 in Copenhagen the European Council concluded that:
"Accession will take place as soon as a country is able to assume the obligations of
membership by satisfying the economic and political conditions required.
Membership requires:
-

1

that the candidate country has achieved stability of institutions guaranteeing
democracy, the rule of law, human rights and respect for and protection of minorities;
the existence of a functioning market economy, as well as the capacity to cope with
competitive pressure and market forces within the Union;
the ability to take on the obligations of membership including adherence to the aims of
political, economic and monetary union".

20220311-versailles-declaration-en.pdf (europa.eu)
1

In December 1995, in Madrid, the European Council referred to the need ‘to create the
conditions for the gradual, harmonious integration of [the applicant] countries, particularly
through the development of the market economy, the adjustment of their administrative
structures and the creation of a stable economic and monetary environment’.
In December 2006, the European Council agreed that ‘the enlargement strategy based on
consolidation, conditionality and communication, combined with the EU's capacity to
integrate new members, forms the basis for a renewed consensus on enlargement’.
In this Opinion, the Commission assesses Ukraine’s application on the basis of its capacity to
meet the criteria set by the European Council in Copenhagen in 1993, as well as in Madrid in
1995, notably regarding the country’s administrative capacity. The Opinion also takes into
account Ukraine’s efforts in implementing its obligations under the Association Agreement
(AA) and Deep and Comprehensive Free Trade Area (DCFTA), which entered into force on 1
September 2017. The Commission will assess the impact of Ukraine’s accession on the EU
policy areas at a later stage.
This Opinion has been prepared following a methodology similar to that used in previous
Commission Opinions. Ukraine received questionnaires on 8 April 2022 on the political and
economic criteria and on 13 April on the EU acquis chapters and provided its replies on 17
April and on 9 May respectively. This Opinion is a structural assessment against established
criteria and builds on knowledge and experience gained through many years of close
cooperation of the EU with Ukraine.
b) Relations between the European Union and Ukraine
Eight years after the illegal annexation of Crimea and the destabilisation of eastern Ukraine in
2014, on 24 February 2022 Russia launched a large-scale military invasion against the whole
country. More than seven million people have fled to other countries, particularly to EU
Member States and the Republic of Moldova, and there are almost eight million of internally
displaced persons within Ukraine. The EU adopted several packages of unprecedented
sanctions against Russia 2. It has also stepped up significantly its political, financial,
humanitarian and military support. European citizens have displayed unprecedented solidarity
through countless private initiatives. During the war, the Ukrainian government has shown a
remarkable level of institutional strength, determination and ability to function. It mobilised
itself to respond quickly to the EU questionnaire on its membership application.
The beginning of the EU-Ukraine relations dates back to the period following the
proclamation of Ukraine’s independence in 1991. In June 1994 the EU signed a Partnership
and Cooperation Agreement with Ukraine, which entered into force in March 1998. Political
and economic cooperation was enhanced in 2004 when Ukraine became EU priority partner
within the European Neighbourhood Policy and further strengthened with the launch of the
Eastern Partnership Initiative in 2009.
Integration with the European Union has been an important foreign and internal policy
dimension of Ukraine for many years. The Orange Revolution in 2004 against electoral fraud
and corruption was also about the orientation towards the West and integration with the EU.
Following the parliamentary elections in March 2006, the EU decided to start consultations
with a view to negotiate a new enhanced agreement with Ukraine. Negotiations started in
March 2007. The draft Association Agreement was initialled in March 2012. The Revolution

2

EU sanctions map - https://www.sanctionsmap.eu/#/main

2

of Dignity, in 2014 was triggered by the refusal by the then President of Ukraine to sign the
Association Agreement/Deep and Comprehensive Free Trade Area (AA/DCFTA).
In the aftermath of the Revolution of Dignity, Russia illegally annexed Crimea and backed
illegal armed groups in east Ukraine. The EU and the international community condemned
these grave breaches of international law, and subsequently the EU imposed sanctions against
the Russian Federation.
Ukraine’s new government, in place after the Revolution of Dignity, signed the political part
of the AA in March 2014. The economic part of AA/DFCTA was signed after the presidential
election in May 2014. Major parts of the agreement have been provisionally applied since
2014. In September 2017, the AA/DCFTA fully entered into force.
The AA/DCFTA provides the foundations for political association and economic integration
between the European Union and Ukraine. In its preamble, the EU acknowledged the
European aspirations of Ukraine and welcomed its European choice including its commitment
to building a deep and sustainable democracy and a market economy. Currently, the
agreement is the key bilateral legal instrument serving as basis for deepening political ties,
stronger economic linkages, promotion of common values and enhanced cooperation in areas
of mutual interest. Based on the AA/DCFTA, Ukraine has carried out number of challenging
reforms and successfully aligned its legislation with the EU in many areas.
The EU-Ukraine Civil Society Platform (CSP) is one of the bodies set up under the
Association Agreement between the European Union and Ukraine. It enables civil society
organisations on both sides to monitor the implementation process and prepare
recommendations to the relevant authorities.
In 2019, a constitutional amendment supported by 335 out of 450 Members of the Ukrainian
Parliament defined as the state’s strategic course the “full membership of Ukraine in the
European Union and the North Atlantic Treaty Organization”.
Ukraine is a contracting Party to the Energy Community Treaty and the Agreement on the
Common Aviation Area, which assist in approximating Ukrainian legislation to the EU
acquis. Ukraine is part of the extended TEN-T network.
Citizens of Ukraine enjoy visa-free travel to the Schengen area as of 11 June 2017. An
agreement on readmission between the European Union and Ukraine is in force since 2007.
Since 1997, the EU and Ukraine have been meeting at high level. In total, twenty-three EUUkraine Summits at presidential level have taken place up to date. Relations have developed,
with increased engagement and momentum since then. The new EU-Ukraine dialogues on the
Green Deal and cyber security launched in 2021 are good examples of expanding cooperation
in areas of joint strategic interest. The EU together with many other international partners
joined a Ukraine established International Crimea Platform in 2021 as a consultative
coordination format with the aim of peacefully ending Russia’s illegal annexation of the
peninsula.
Ukraine is a full member of the United Nations, the Council of Europe and a participating
state of the Organisation for Security and Cooperation in Europe (OSCE).
The EU has provided significant financial assistance to Ukraine, which over the years 2014
to 2021 amounted to EUR 1.7 billion in grants under the European Neighbourhood
Instrument, EUR 5.6 billion under five macro-financial assistance programmes in the form of
loans, EUR 194 million in humanitarian aid and EUR 355 million from foreign policy
3

instruments. The EU provides its support to Ukraine for policy development and
comprehensive reforms, with strong involvement from EU Member States in a Team Europe
spirit. For the current multi-annual programming, the Commission has increased its focus on
flagship investments and priorities under an Economic and Investment Plan (EIP) 3, which
seeks to unlock up to EUR 6.5 billion in public and private investments for the country and
will provide a basis for future reconstruction. The approach developed under the EIP will
serve as a good basis for any future reconstruction plans.
Since the Russian invasion, the EU has stepped up its support, mobilising around EUR 4.1
billion for Ukraine’s overall economic, social and financial resilience in the form of
emergency macro-financial assistance, budget support, emergency assistance, crisis response
and humanitarian aid. This also includes military assistance measures to support Ukraine
under the European Peace Facility, amounting to EUR 2 billion that will be used to reimburse
EU Member States for their in-kind military support to Ukraine.
Before and during Russia’s war of aggression, the EU has worked hand in hand with financial
institutions to support Ukraine. Since 2014, the European Investment Bank and the European
Bank for Reconstruction and Development have mobilised EUR 9.5 billion in loans to
Ukraine. Of this EIB has disbursed EUR 668 million to the Ukrainian budget in recent weeks.
The EU is also working in close cooperation with the World Bank and the International
Monetary Fund, which have been key partners in the Ukrainian efforts since 2014.
As of 2014, with the establishment of the Support Group for Ukraine, the EU transformed its
assistance programmes. It moved away from individual projects into larger coherent support
packages for key reforms and building of state institutions. This important shift will be very
relevant in the post war rebuilding and reforming of Ukraine.
Since 2016 Ukraine has progressively extended its participation in EU programmes, which
has been partly co-financed by the EU. In particular, Ukraine participates in Horizon 2020
and Horizon Europe, Euratom Research and Training Programme, COSME, Creative Europe
and EU4 Youth programmes. Organisations and individuals from Ukraine can also benefit
from certain actions of the Erasmus+ and European Solidarity Corps Programme. In some
other programmes such as, the European Maritime and Fisheries Fund. Ukraine is
participating in several Interreg programmes and is a member of the EU macro-regional
Strategy for the Danube region.
Ukraine has concluded working arrangements, cooperation agreements or memoranda of
understandings with a number of EU agencies such the European Border and Coast Guard
Agency (Frontex), the European Union Agency for Law Enforcement Training (CEPOL), the
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), the European Union
Agency for Criminal Justice Cooperation (EUROJUST), the European Police Office
(Europol), the European Anti-Fraud Office (OLAF), the European Union Aviation Safety
Agency (EASA), the European Maritime Safety Agency (EMSA), the European Union
Agency for Railways (ERA), the European Training Foundation (ETF), the European
Medicines Agency (EMA), the European Agency for Safety and Health at Work (EU-OSHA),
the European Centre for Disease Prevention and Control (ECDC) and others. Ukraine is
participating, without voting rights, in the Office of the Body of European Regulators for
Electronic Communications (BEREC). Procedural arrangements for Ukraine joining the LIFE
programme have been completed.
3

SWD(2021) 186 final

4

Ukraine is a participant in the Eastern Partnership (EaP). The EaP is based on the principle of
inclusivity and differentiation. Russia’s war in Ukraine has shown that multilateral
cooperation and cohesion is now more important than ever, as is strengthening the resilience
of the region. A focus on bilateral relations will also be important going forward, to allow
Ukraine to implement key reforms, including in the field of governance, justice and rule of
law.
B.

CRITERIA FOR MEMBERSHIP

1. POLITICAL CRITERIA
This assessment is based on the Copenhagen criteria relating to the stability of institutions
guaranteeing democracy, the rule of law, human rights and respect for and protection of
minorities.
1.1 Democracy
As established by its Constitution, Ukraine is a parliamentary-presidential democracy in
which the legislative powers are exercised by the Parliamentary Assembly (Verkhovna Rada)
and the executive powers by the Government, while the President retains important executive
powers.
The Constitution provides for the fundamental principles of a democratic state, including the
rule of law, free elections and the protection of human rights. Primacy of international law is
explicitly determined by the Constitution rendering the international treaties in force as
binding and an integral part of the national legislation of Ukraine.
The only body that may interpret the Constitution and determine whether legislation conforms
to it is the Constitutional Court of Ukraine (CCU), which is still in urgent need of reform in
line with the recommendations of the Venice Commission. Central to such reform is the
introduction of a credible and transparent selection procedure for appointments of judges to
the CCU, including an integrity check. Relevant legislation is pending in the Parliament.
Under its Constitution, the President of Ukraine is the head of State, directly elected by the
citizens for a five-year term of office. Foreign policy is formally the responsibility of the
President, who is also the Army Supreme Commander-in-Chief. The President has the right to
choose the ministers of defence and foreign affairs and appoint local governors. The
executive power is exercised by the Government, consisting of a Prime Minister, a First
Deputy Prime Minister, three Deputy Prime Ministers and 18 ministers. The government has
overall adequate capacities for policy planning. During the war, the Ukrainian government
has shown institutional resilience and ability to function and remained a reliable international
partner.
The Parliament, named Verkhovna Rada, is the legislative body of Ukraine, which exercises
effective democratic control over the executive branch. The Parliament plays a key role in
appointing and dismissing the Government, and heads and members of a number of other
public institutions. It is composed of 450 deputies elected for a five-year term. There remain
26 vacant seats in the Verkhovna Rada, elections for those seats not having been being held in
the Autonomous Republic of Crimea and the City of Sevastopol (Crimea) illegally annexed
by the Russian Federation and in the parts of Donetsk and Luhansk oblasts beyond the
government’s control. The Parliament endorsed the President’s decision to introduce martial
5

law due to the full-scale Russian military aggression in February 2022, but legislative work
continues during this period.
Political developments in Ukraine and recommendations by relevant international
organisations have led to repeated changes in the electoral system used for parliamentary
elections. A new Electoral Code, which regulates all types of elections, was adopted in 2019,
to bring the law overall in line with relevant international standards. The Code introduced
inter alia an open-list proportional representation system, enfranchised internally displaced
persons, and strengthened gender quotas. It was first tested during the local elections in 2020
revealing the need for some further amendments related to the transparency of campaign
financing, on balanced and impartial media coverage, and certain aspects of the procedures of
handling of electoral complaints and appeals. The law on national referenda was adopted in
January 2021 and the work on the law on local referenda is underway. The OSCE Office for
Democratic Institutions and Human Rights (ODIHR) assessed the most recent two-round
presidential elections and early parliamentary elections in 2019 as competitive and both
overall in respect of fundamental rights and freedoms. Some recommendations were issued
which are being followed-up.
The use of urgent procedures to pass legislation, including in areas relevant to the EU acquis,
is relatively limited. Comprehensive impact assessments of proposed legislation and
legislative oversight of the executive, including monitoring the implementation of legislation,
need to be strengthened.
Public funding of political parties was introduced in 2016 as an instrument to strengthen their
financial and institutional capabilities. Full restoration of financial reporting obligations of
political parties, suspended during COVID-19 pandemic, is pending Parliament’s approval.
After the beginning of the full-scale Russian military aggression in February 2022, the
Ukrainian authorities decided to ban 11 political parties considered to be promoting Russian
interests.
Ukraine has a vibrant civil society that plays an active role in the promotion and oversight of
reforms. The expertise of Ukrainian civil society organisations on key sector reforms makes
them a valuable partner for the government and an important actor for local service provision.
The legal framework ensures protection of freedom of association, expression and peaceful
assembly. Measures have been taken to support the registration of civil society organisations,
and simplify rules on reporting and taxation. While there is a very open civic space, there has
been pressure and threats against civic activists from local vested interests, in some cases
leading to violence. The authorities condemn such attacks and investigations have been
stepped up, however, additional efforts are needed to ensure that there is no impunity for such
crimes.
1.2. Public administration reform
Ukraine has progressed in improving its public administration since 2014. The legal
framework for a modern public administration is mostly in place. However, it is not yet fully
implemented.
Ukraine has a well-developed strategic framework for public administration reform
(PAR) and has prepared and implemented PAR strategies, following the standards of the
European principles of public administration, since 2016. Achieving further progress will
require more intensive engagement at the highest political level. Further efforts by Ukraine
6

are needed to ensure adequate administrative capacity to implement and enforce legislation,
especially regarding inspection.
Effective and efficient public service delivery has been a distinct policy imperative since
2014. Since 2019, the government introduced measures inter alia to: simplify and monitor
service delivery; eliminate duplication of front offices; and improve feedback. Furthermore, it
has drafted a law on streamlining the administrative fee, put in place the conditions for eservices (web-portals, putting administrative services online, and interoperability); and define
by law the specificities of delivering public (electronic) services. Ukraine has an advanced egovernment, where its citizens have an easy access to public services through online platform
and application on the mobile phone that has grown in less than two years to 14 million users.
Digital governance has increased the efficiency and the transparency of the government, and
facilitated the government-citizen dialogue.
Ukraine has improved significantly Public Financial management (PFM) since its first PFM
strategy in 2013. The 2022-2025 PFM Strategy and Action Plan were adopted in December
2021. This new strategy is in line with the Public Expenditure and Financial Accountability
(PEFA) methodology, EU and international standards. The Government introduced mediumterm budget planning in 2018. The three-year budget declaration for 2022-2024 was approved
for the first time in 2021 and applied to the 2022 budget. The 2020 budget was executed
according to the indicators proposed by the Budget Law. Ukraine has continued to increase
budget transparency since 2017. The legislature and supreme audit institution, together,
provide more than adequate oversight during the budget process. Budget documents provide a
good overview on budget revenues and expenditure. Progress was made in enhancing
domestic revenues mobilisation in both tax and customs areas in line with the commitments of
the Association Agreement. Oversight of the off-budget accounts and the use of international
standards in the Accounting Chamber of Ukraine needs further improvement.
With respect to multi-level governance, Ukraine’s decentralisation has advanced since
2014. This is one of the most impactful and successful reforms implemented in the country. It
has become a crucial enabler of the social and economic development. A key aspect of the
reform was a merger (amalgamation) of over 10 000 small and dispersed local entities into 1
470 larger municipalities (‘hromadas’) with increased administrative and economic capacity
to manage their responsibilities more effectively. A country-wide network of local “one-stopshop” administrative service centres provides quality services to citizens and businesses. The
reform was underpinned by fiscal decentralisation (including 64% share of personal income
tax currently allocated to municipalities) with the aim of securing stable resources necessary
for the exercise of the new tasks of local self-government. Municipalities also benefited from
transfer of property and gained opportunities to regulate land trade on their territory. Sectorial
decentralisation advanced in health and education.
With respect to Public Service and Human Resources Management, a new law on civil
service entered into force in 2016. The law lays the foundation for a modern civil service.
Building a professional and merit-based civil service would require a refinement of both the
legal framework and operational practice, however. A reform of the civil service
remuneration system needs to be finalised to allow retaining qualified professionals and to
attract new talent. Right before the war broke out, Ukraine was on the verge of adopting a key
law on administrative procedures. The institutional architecture of the state administration is
comprehensively regulated, but its organisational design and steering mechanisms should be
improved to ensure effective, results-oriented and efficient governance.
Policy development and coordination has reached a good level in a number of ministries
while in others this needs to be improved. The regulatory framework for policy development
7

needs to be updated, in order to improve analytical capacity and to make planning documents
more realistic, especially by better aligning with available budgets. The mechanism for public
and inter-ministerial consultations needs to be further improved.
Accountability management has improved across the board, for instance by introducing
performance indicators in all ministries. The legal framework does not always establish
coherent accountability lines and governance arrangements between supervisory and
subordinated bodies. The autonomy granted to non-ministerial bodies does not focus on
holding agencies accountable for results.
1.3. Rule of law
Since the Revolution of Dignity in 2014, Ukraine undertook two rounds of judicial and anticorruption reforms (in 2014-2016 and in 2020-21) to align the judicial system with the
principles of the rule of law, to strengthen judicial independence and accountability and to set
up independent anti-corruption bodies. These reforms also had the aim of making the system
more efficient and transparent. This need for reforms arose against the background of
insufficient independence of the judiciary from the executive and legislative branches, low
accountability, high levels of corruption and strong influence of oligarchic interests.
a) Judiciary
Ukraine has embarked on the reform of the justice sector and the relevant strategic approach
is in place.
The High Judicial Council is the main body responsible for the self-government of the
judiciary. The constitutional and legislative framework guarantees the independence of the
judiciary and its impartiality. Codes of ethics for judges and prosecutors are in place, as well
as an integrated case management system with automated allocation of cases. The
appointment of judges and prosecutors is in principle based on merit and objective criteria,
following public competitions. However, attempts of undue internal and external interference
on the judiciary remain an issue of concern.
The first round of justice reforms culminating in constitutional amendments in 2016
succeeded in streamlining the court system from a four to a three-tier one. It also imposed
new examinations and integrity checks for all sitting judges, which led to the resignation of
more than one quarter of the judicial corps, about 2000 judges. The judiciary is currently
seriously understaffed, given that the body responsible for selection procedures was dissolved
at the end of 2019. New Supreme Court members were nominated in a transparent manner,
however some judges with questionable integrity were also appointed. Judicial appointments
were opened to the entire legal profession and a more transparent judicial selection system
was introduced. An important addition to the judicial system was the establishment in 2019 of
the High Anti-Corruption Court, facilitated by a strong engagement of Ukrainian civil society
and the international community.
At present, the judiciary continues to be regarded as one of the least trusted and credible
institutions. At the time the war erupted, Ukraine was on the verge of finalising the
implementation of a fundamental judicial reform (2020-2022) that would lead to systemic
changes, if fully implemented. The key aspects of the new reforms are embedded in a new
comprehensive Strategy for the Development of the Justice System and Constitutional
Judiciary for 2021-2023.
Regarding the efficiency of the justice system the picture is mixed, with a positive trend in
civil and commercial proceedings and a negative trend in administrative proceedings. The
biggest issue is the backlog of overall 578.750 cases (in 2018), which is particularly a
8

problem with regard to the Supreme Court (currently backlog of 24.000 cases). The
disposition time in civil and commercial litigious cases decreased to 122 days in 2020,
compared to 129 days in 2018 which corresponds to a standard level of efficiency. The
clearance rate increased to 98 % (97 % in 2018)
The 2018 overall budget was 632.1 million (0.56 % of GDP). Although 78 % of courts budget
is spent on salaries and compensations, very limited funds were allocated to investment needs
(0.2 %) and training (0.004 %). Ukraine has 13 judges and 21 prosecutors per 100 000
inhabitants, compared with a European average of 21 judges and 12 prosecutors per 100 000
inhabitants 4.
New legislation introducing integrity and professional ethics checks for the key judicial
governance bodies (the High Council of Justice, whose main responsibilities include
appointments and dismissals of judges, and the High Qualification Commission of Judges
which conducts the selection procedures for new judges) was adopted in July 2021, fully in
line with Venice Commission recommendations. The bodies tasked with doing the integrity
checks had been established and started their work. After a suspension of works as of 24
February 2022, with the war ongoing, the integrity check of current HCJ members was
finalised on 7 May 2022; out of 21 HCJ members, only three remain. These reforms have the
potential not only to build an independent and accountable judiciary, but also to reduce the
influence of vested interests who used the current judicial governance system to undermine
the rule of law in Ukraine.
To deal with the systemic problem of non-enforcement of domestic court decisions, in 2020,
the Government adopted a Strategy on the resolution of non-enforcement of court decisions
where a state entity or state owned enterprise is a debtor. In 2021, the Parliament adopted the
draft law reforming the enforcement of court decisions in first reading.
At the end of 2019, an ambitious reform of the prosecution service was launched. Its core
element was the vetting of all 11 700 prosecutors at the central, regional and local level based
on professionalism and integrity criteria. 30% of prosecutors failed the attestation and had to
leave the service. Some 2000 court cases challenging the outcome of the individual attestation
were opened and court proceedings in most of these cases are pending. In 2021, the
Prosecutor General successfully piloted a new procedure for a transparent and merit-based
selection of management-level prosecutors. In 2022, work has started on turning this interim
procedure into a permanent one, and on improving the disciplinary system for prosecutors.
b) Fight against corruption
Preventing and combatting corruption has been particularly high on the Ukrainian reform
agenda since the Revolution of Dignity. Increased transparency and preventive measures have
brought tangible results in reducing the space for corruption across various sectors.
Nevertheless, many challenges persist. Corruption remains a serious challenge that requires
continued attention as it imposes significant costs on the state budget, businesses and the
population, discourages domestic and foreign investment and undermines the rule of law.
The country is a party to all key international anti-corruption conventions, including the
United Nations Convention against Corruption (UNCAC). A number of recommendations
from relevant international anti-corruption monitoring mechanisms, including GRECO,
remain outstanding. All forms of corruption are criminalized, including illicit enrichment, and
the laws regulate conflict of interests, protecting whistle-blowers and ensuring transparent
public party financing. Following an inclusive drafting process, a new national anti4

As reported by the Council of Europe European Commission for the Efficiency of Justice.

9

corruption strategy with a focus on relevant sectors was elaborated, although its final
adoption by the Verkhovna Rada is still pending. Integrity plans and code of ethics are in
place in key parts of the public administration and judiciary with their enforcement being
gradually ensured through internal control units and respective disciplinary bodies.
Ukraine successfully pursued major reforms to prevent corruption and protect the state
budget, particularly in relation to public procurement, public service delivery, energy,
banking and the health sector. Studies have assessed the actual saving of these measures in the
order of six percent of GDP annually. Transparent and comprehensive electronic systems for
asset declarations for public officials was put into operation in 2016. It allows for automatic
verifications and public access to the declarations filed. Similarly, a new international awardwinning electronic system for public procurement Pro-Zorro (and its spin off Pro-Zorro Sale)
were introduced to boost transparency in previously opaque procurement processes. Annually,
according to reliable sources, these systems have produced real savings of one percent of
GDP and will continue to do so.
After 2014, the Ukrainian civil society and the international community played a key enabling
role in the establishment of specialised anti-corruption institutions, namely the National
Anti-Corruption Bureau (NABU), the Specialised Anti-Corruption Prosecution Office
(SAPO), the National Agency for Prevention of Corruption (NAPC), the Asset Recovery and
Management Agency (ARMA) and the High Anti-Corruption Court (HACC). These
institutions have comprehensive mandates in line with international standards and operate
increasingly independently, with required resources largely in place, while inter-agency
coordination could be improved. Some of these agencies started successful operations earlier
(e.g. NABU, HAAC) than others (eg. SAPO, NAPC). The independence of all anti-corruption
institutions remains crucial. Their heads should be selected in transparent and competence
based competitions where also the integrity of potential candidates is being checked. It is
particularly important to urgently complete the appointment of a new head of SAPO through
certifying the identified winner of the competition and carry out the selection and
appointment of the NABU director.
On the preventive side, NAPC is mandated with conflicts of interest, verification of declared
assets, auditing the spending of political parties and whistle-blowers protection. As regards
the law enforcement side, NABU is among the most trusted institutions and has increasingly
developed its institutional capacities and a pro-active attitude to address allegations of
corruption involving high-level officials. A modern e-case management system has been
deployed by NABU, SAPO and HACC for facilitating investigations and adjudication of
high-level corruption cases. The establishment of HACC in 2019 through a transparent, merit
based recruitment of judges and staff has greatly facilitated the work of the anti-corruption
institutions and led to an overall more effective adjudication of corruption cases.
While Ukraine has made notable achievements in the preventive side of addressing
corruption, the repressive side needs to be considerably strengthened. The number of highlevel officials brought to justice for corruption remains limited. Investigations of corruption
sometimes lack impartiality and law enforcement agencies experience political interferences.
As regards track record of high level corruption cases, a total of 72 verdicts have been issued
by the HACC since 2019, out of which 39 are final convictions, including against members of
parliament, judges, prosecutors, members of local councils and heads of state-owned
enterprises.

10

A so-called “Anti-Oligarch law” was signed into law in November 2021, with the strategic
objective to limit the excessive influence of oligarchs, by reducing their role in Ukraine’s
economic, political, and public life. Implementation of relevant legislation is key.
c) Organised crime
A major reform of the police was conducted in 2019. It was aimed at increasing public trust in
the police and strengthening their ability to deal with organised crime. Specialised police units
were put in place to deal with terrorism, cybercrime and drugs. The Ministry of Interior acts
as a national coordinator on organised crime. The police, however, continues to suffer from
low level of equipment and expertise to conduct complex financial investigations. Police
reform has to be continued, including the introduction of a truly professional management
system.
Ukraine ratified the United Nations Convention against Transnational Organized Crime, as
well as its protocols on Trafficking in Persons and on Smuggling of Migrants. The country's
anti-money laundering legislation partially reflects the Financial Action Task Force (FATF)
standards and relevant international legislation but there are still outstanding
recommendations from the Council of Europe’s Committee of Experts on the Evaluation of
Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), which is
why Ukraine has been reporting to MONEYVAL under an enhanced follow-up procedure.
Further reforms are needed to improve Ukraine’s compliance with FATF standards, in
particular those related to virtual assets, ultimate beneficial ownership, and supervision of
non-banking businesses and professions. Investigation and prosecution of major moneylaundering schemes should progress. Putting in place a comprehensive framework for the
fight against financial crime and money laundering, and ensuring its effective
implementation, are crucial to address the significant risks they pose. An Asset Recovery and
Management Agency (ARMA) is in place, however, the Agency does not have a permanent
Head since the end of 2019. Legislation related to the management of seized assets should be
improved and a relevant national strategy on asset recovery adopted.
On the national level, Ukraine has approved a Strategy on Combating Organised Crime in
2020; the Action Plan for the Strategy is under development and further approval. A
government regulation on Serious and Organised Crime Threat Assessments (SOCTA) was
adopted in 2022 and Regional Organized Crime Threat Assessment Task Forces (ROCTAFs)
were launched nation-wide.
Ukraine has a working arrangement in place with European Union Agency for Law
Enforcement Training (CEPOL), an operational and strategic agreement with European
Union's law enforcement Agency (Europol) and a Memorandum of Understanding with the
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA). Ukraine is an active
participant in the European Multidisciplinary Platform Against Criminal Threats (EMPACT)
and a member of Interpol. It participates in Joint Investigation Teams facilitated by
EUROJUST.
The country is located at an important crossroad of smuggling illegal goods to the EU,
including arms and drugs. Illegal logging has been wide-spread and despite efforts made in
recent years, illegal trade in timber persists. Ukraine is also a source, transit and destination
country for trafficking in human beings. The number of completed criminal investigations
related to crimes committed by organised groups and criminal organizations slowly increased
in recent years but remains still relatively low (2021 –499 cases; 2020 – 377 cases; 2019 –
293 cases), particularly related to allegations of trafficking in human beings (2021 – 45 cases;
2020 – 57 cases; 2019 – 10 cases).
11

Overall, reform of the law enforcement environment has to be continued on the basis of an
overarching strategic plan.
1.4. Fundamental rights
a) International framework
Ukraine has ratified the main international human rights instruments and its domestic legal
and institutional framework regulating fundamental rights broadly follows European and
international standards. The country has not ratified the Convention on preventing and
combating violence against women and domestic violence (Istanbul Convention).
b) Legal and institutional setup
The legal and institutional framework regulating fundamental rights is in place and laws
generally follow European and international standards. However implementation should be
improved and the capacity of the institutions in charge of protection and enforcement of
human rights as well as the implementation of existing strategies and action plans remain
limited. This sometimes impedes the effective enforcement of human rights.
In 2021, Ukraine adopted a new National Human Rights Strategy 2021-2023 and an Action
Plan to strengthen efforts to align structures and procedures of its public administration with
the international framework.
The Ombudsperson institution – the Ukrainian Parliament Commissioner for Human Rights –
is designated as the National Human Rights Institution and accredited with “A” status by
Global Alliance of National Human Rights Institutions as largely complying with the Paris
Principles.
c) Key fundamental rights issues
The country has 501 judgements of the European Court of Human Rights under enhanced
supervision procedure pending their enforcement. The majority of the cases are repetitive and
relate to violations of the right to an effective remedy, length of criminal proceedings, illtreatment including poor detention conditions, length of pre-trial detention and right to liberty
and security.
Ukrainian citizens benefit from freedom of expression and there is a vibrant public civic
space. Media freedom has also improved significantly in recent years, especially thanks to
online media. Media controlled by oligarchs have disproportionate influence, notably in the
segment of television. Ukraine has found an overall good balance between the preservation of
media freedom and measures against pervasive Russian hybrid and massive disinformation
attacks, being multiplied by some local media outlets.
The Ukrainian Constitution guarantees protection against discrimination, and the Criminal
Code and several criminal laws contain stand-alone provisions on hate crimes. However,
sexual orientation and gender identity are not acknowledged as protected grounds in antidiscrimination legislation. Legislation required in order to align with the EU acquis is
identified in the National Human Rights Strategy 2021-2023, but remains to be implemented.
Ukraine is gradually progressing on its gender equality agenda, with increased political
representation of women (20.5% of parliamentarians elected in 2019 are women) although the
gender pay-gap persists with women overall earning 23% less than men on average in 2019.
Ukraine has not ratified the Istanbul Convention, while gender-based violence remains an
issue. There is increasing tolerance and acceptance of lesbian, gay, bisexual, transgender,
12

intersex or queer (LGBTIQ) persons in the Ukrainian society and law enforcement is
supportive in protecting LGBTIQ events.
Ukraine has undertaken various legal initiatives to improve the rights of the child and ratified
the UN Convention on the Rights of the Child as well as acceded to the three Optional
Protocols to the Convention. It also endorsed the Paris Commitments to protect children from
unlawful recruitment or use by armed groups. At the same time, Ukraine has one of the
highest rates of child institutionalisation in the world (ca. 1.5% of all children), which is a
serious concern and needs to be tackled as a matter of urgency. Likewise, the support for
persons with disabilities (approx. 6% of the population) remains under-resourced and a deinstitutionalisation process needs to be implemented to transition towards community based
care of persons with disabilities.
The rights of persons belonging to minorities are constitutionally guaranteed in Ukraine. The
respect for rights of persons belonging to national minorities in the field of education and
language and their representation in elected bodies in all levels of public life needs to be
ensured by fully implementing the recommendations of the Council of Europe’s Venice
Commission on the education law, implementing those on the State language law and taking
into account the last monitoring cycle of the Framework Convention on National Minorities.
While Ukraine has taken steps to implement the recommendations of the Venice Commission,
it needs to finalise its reform of the legal framework for national minorities and to adopt
effective implementation mechanisms.
Previous shortcomings in investigating and prosecuting of torture and ill-treatment by law
enforcement officials are being addressed by the creation of the Department for Procedural
Oversight of Criminal Cases of Torture and Other Serious Violations by Law Enforcement at
the Prosecutor-General's Office in October 2019. The judiciary in Ukraine is under-staffed,
which prevents trials from concluding within a reasonable time and leads to a lack of effective
remedy for victims of serious crimes. Also the penitentiary system is under-resourced and
conditions in places of deprivation of liberty are poor.
2. ECONOMIC CRITERIA
This assessment is based on the Copenhagen criteria related to the existence of a functioning
market economy and the capacity to cope with the competitive pressure and market forces
within the Union. 5
2.1. Functioning market economy
GDP per capita in Ukraine represented 29.8% of the EU average in 2020. The government
has a satisfactory record in carrying out broadly sound macroeconomic policies, against the
backdrop of successful mid-term cooperation with international partners and strong resilience
since the Russia war of aggression (and it is noteworthy how the government has continued to
ensure macroeconomic stability also during the war). However, economic and policy
developments have been held back by a somewhat uneven implementation of structural
reforms, often reflecting lack of political consensus and regular interference from vested
interests, which have delayed reforms, e.g. aiming to improve the business environment,
strengthening the accountability of public finances or legislation on environment and climate
action.
It should be borne in mind that the high degree of uncertainty related to the ongoing war and its evolving
impact affect the predictive power of this assessment, which is largely based on available (pre-war) data.

5

13

Indeed, the authorities of Ukraine have demonstrated strong commitment to pursue stabilityoriented macroeconomic policies since the Maidan revolution. The government has followed
an ambitious fiscal consolidation that halved public deficit to around 2% of GDP on average
since 2015 and managed to contain the adverse effect of the COVID-19-driven recession on
the public finances. Supported by strong nominal GDP growth, the sustainability of public
debt improved notably, as the debt ratio declined by more than 30 percentage points to below
50% of GDP in 2021. The National Bank of Ukraine introduced in 2016 and subsequently
successfully managed its inflation-targeting framework, thereby preserving the stability of the
flexible exchange rate regime and improving confidence in the national currency. However,
the war context raises new challenges in relation to inflation, which had been reduced
markedly over the last five years to 2.7% in 2020 before reaching 9.4% in 2021. Chronically
low levels of domestic and foreign investment account for the rather subdued real economic
growth of around 3% per year in the four years before the pandemic and the subsequently
persistent relative gap to the standards of living in the EU.
Persistent major weaknesses in the business environment are the main cause for the lack of
investment. In 2019, Ukraine ranked 85th in the global competitiveness index of the World
Economic Forum, primarily due to weak institutions, the high prevalence of market
dominance and an ineffective anti-monopoly policy. Nevertheless, the cancellation of almost
one fifth of the regulatory acts under review in the period 2016-2020 led to some progress
with deregulation. Despite a moderate regulatory burden and no significant legal barriers to
market entry, corruption is widespread and, combined with a still not fully reformed court
system, results in a low degree of contract enforcement, which discourages entrepreneurship
and cross-border business relations. Despite much uncertainty in estimates and improvements
in last years, the share of the informal economy remains significant and could reach as much
as one third of economic activity in Ukraine.
With more than 3 500 state-owned enterprises (SOEs) at central government level, accounting
for one tenth of output and about 18% of employment, the State footprint in Ukraine is
considerable, while SOEs are also recipients of State aid. The SOEs corporate governance
reform has progressed well in view of aligning it with international standards to ensure
independent, professional and transparent profit-oriented management. In this context,
Privatbank was nationalised in 2016 as a result of massive fraud. However, the average return
on equity in SOEs remained at 0.3% in 2019 6, in comparison to 8% in the private sector. The
rather successful privatisation of small property and production assets, notably through
electronic auctions, still needs to become a catalyst for large-scale privatisation.
Financial sector stability has been strengthened by the regulatory and supervisory reform
since the 2014-2016 banking crisis, supported by a sizable reduction in non-performing loans
from 58% in 2017 to 30% in 2021 and the recapitalisation of banks to comfortable levels.
With a market share of close to 50% over the last five years, the four state-owned banks
dominate the banking sector. Yet, financial intermediation is still low, with bank loans to the
private sector amounting to only 19% of GDP in 2021. Capital markets and non-bank
financial intermediation are in a very early stage of development and do not offer viable
financing options to companies. Following Russia’s war of aggression, the National Bank of
Ukraine took appropriate steps to safeguard banks’ liquidity and the confidence in the system.

Excluding highly profitable Naftogaz (the largest SOE in Ukraine, with a national monopoly in the oil and gas
business).

6

14

An inherited unreformed legislation that lacks flexibility has been hindering the functioning
of the labour market. About 3 million people, or almost 20% of all employed, were in
informal employment in 2021. The unemployment rate remained relatively low at around 9%
in the last years and the economic cycle has had no major impact on it. The economic activity
rate was well above some regional peers and remained relatively unchanged at around 62%
(56% for women) since 2014, in the context of significant labour emigration. Indeed,
according to 2019 estimates, around 2.5 million Ukrainians, or almost 15% of total
employment, were living and working abroad. This labour emigration drove the sizable flows
of remittances, which persistently exceeded the flows of foreign direct investment almost four
times.
2.2. Ability to cope with the competitive pressure and market forces within the EU
A well-developed educational system accounted for a literacy rate of close to 100% and a
rather satisfactory average 2018 PISA assessment where Ukraine scored at rank 40 out of 78
countries. Despite the sizable government spending in the sector (5.7% of GDP in 2021) and a
ratio of gross enrolment in tertiary education of above 80%, the curricula and overall quality
could be better aligned with labour market needs. Expenditure on research and development,
which is mostly concentrated in the public sector and had been declining over the last ten
years to below 0.5% in 2020, remained insufficient to heighten human capital in a sustainable
way.
Already prior to the significant damage inflicted by the Russian war of aggression, the state of
the physical infrastructure in Ukraine reflected a persistently low level of general capital
accumulation, with the investment ratio averaging around 17% of GDP since the Maidan
revolution. The destruction caused by the war is immense and amounts to hundreds of billions
of Euro. After the war, it will be critical not just to restore what existed, but also to ‘build
back better’ with a clear link to the broad reform agenda on Ukraine’s European path, in order
to enable Ukraine’s green and digital transition. Road length and electricity production per
capita represented, respectively, 48% and 57% of the EU average in 2020. The degree of
wear of the electricity distribution networks was estimated at close to 50%. Despite the
noticeable growth of the ICT sector in the last years, most companies use only basic digital
tools and technologies.
At a moderate level of diversification, the structure of the Ukrainian economy had changed
little since 2014 and remained concentrated in sectors with low added value. The share of
manufacturing in GDP declined from 12.2% in 2014 to 10.3% in 2021. Trade (13.8% of
GDP), agriculture (10.8% of GDP) and mining (6.7% of GDP) were the other three most
important sectors in 2021. At the same time, the sectors of trade, agriculture and industry
accounted for almost 60% of employment, thereby suggesting a lower labour productivity
relative to the other parts of the economy.
The overall openness of the economy has been shrinking over the last years, with foreign
trade in goods and services as a share of GDP contracting by almost a quarter since 2015 to
82.6 % of GDP in 2021. Yet, economic integration with the EU progressed further thanks to
the implementation of the AA/DCFTA. Ukrainian exports to the EU had broadened in scope
since 2015, also in terms of the number of exporting firms (14 238 exporting companies in
2021, i.e. 22% more than in 2015). The share of exports to the EU, which consisted mostly of
agricultural products, metals and minerals, increased from 28% in 2015 to 36% in 2021. The
share of imports from the EU, which comprised primarily machines, chemicals and minerals,
also strengthened from 36% in 2015 to 41% in 2021. As a WTO member since 2008, Ukraine
has a relatively open trade policy.
15

3. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP
The ability of Ukraine to assume the obligations of membership has been evaluated based on
the following indicators:
-

The commitments in the Association Agreement and the Deep and Comprehensive
Free Trade Area and their implementation;

-

The level of adoption, implementation and enforcement of the acquis outside the
AA/DCFTA.

The EU-Ukraine Association Agreement, including a Deep and Comprehensive Free
Trade Area (AA/DFCTA), belongs to a new generation of association agreements between
the EU and partner countries. 21 of its annexes/appendixes contain lists of specific pieces of
the acquis with detailed timetable of implementation varying from 2-10 years. The
Agreement captures thus a substantial part of the EU acquis. Strong commitment by Ukraine
to the implementation of the AA/DCFTA has led to enhanced bilateral cooperation and
gradual economic integration with the European Union across a wide range of sectors. The
dynamic nature of the Agreement has been exploited through the update of annexes, to cover
also more recent EU acquis than initially included in the Agreement. The following annexes
have been recently updated: Annex XXVII on energy, Annex XXI on public procurement,
Annex V on sanitary and phytosanitary measures and Annex XVII on services in 3 sectors:
telecommunication, postal and courier services, and international maritime transport services.
Preliminary agreement has been reached on Annex XXXI on climate action, Annex XV on
approximation of customs legislation and Annex XLIV on financial cooperation with antifraud provisions.
In 2020, the EU and Ukraine launched the Comprehensive Review of the Achievements of
the Agreement’s Objectives under the Article 481 of the AA in order to take full advantage of
the potential of the AA/DCFTA.
The EU-Ukraine Association Agreement provides a comprehensive institutional set-up for
bilateral dialogue and monitoring of the process of gradual approximation and
implementation of Ukraine’s legislation with the EU acquis. This encompasses annual
Summit meetings at the highest political level, Association Council, Association Committee
and Association Committee in Trade Configuration, dedicated Sub-Committees in five areas,
as well as six dedicated Cluster Sub-committees covering almost all chapters of the EU
acquis. The steps that Ukrainian government has taken in implementing the Agreement also
confirms its ability to implement the relevant EU acquis including putting in place an
adequate inter-institutional coordination framework. A post of Deputy Prime Minister for EU
and Euro-Atlantic Integration was created in 2016, combined with a reformed Government
Office for the Coordination of European and Euro-Atlantic Integration within the Cabinet of
Ministers. Deputy Ministers responsible for European-integration issues have been appointed
across successive governments in all ministries.
Ukraine’s implementation of the EU acquis is documented in the EU’s annual ‘Association
Implementation Reports’ annually since 2016 7. Ukraine is also issuing its own report.
EU Member States are closely involved in the implementation of the AA/DCFTA through the
Association Council and the Association Committee. Common Positions are adopted for the
7

SWD(2020) 329 final

16

Association Council and a detailed Annotated Agenda is agreed for the Association
Committee. The EU-Ukraine Parliamentary Association Committee involves the European
Parliament and the Ukrainian Parliament into the implementation of the agreement. Civil
society is also monitoring the implementation through the EU – Ukrainian Civil Society
Platform.
Following the adoption of the revised enlargement methodology 8 for the purpose of the EU’s
Enlargement policy, the EU acquis is structured around six thematic clusters. The acquis in
these clusters is substantially covered by the AA/DFCTA. Ukraine has gradually
approximated with the EU acquis included in the AA/DCFTA and has an overall satisfactory
track record of implementation, though progress is uneven and delays in meeting the
ambitious times lines in the AA/DCFTA have been frequent. Pending a fully-fledged analysis
of all chapters to be carried out at a later stage in the process, the analysis provides examples
of chapters in the clusters in which Ukraine has achieved particularly good results and
highlights areas where there has been a limited approximation to the acquis.
The Fundamentals cluster includes the chapters of the EU acquis on Judiciary &
fundamental rights, Justice, freedom and security, Public procurement, Statistics, and
Financial control. This cluster has been mainly assessed under the Political and Economic
criteria sections.
The Internal market cluster includes the chapters of the EU acquis on Free movement of
goods, Free movement for workers, Right of establishment and freedom to provide services,
Free movement of capital, Company law, Intellectual property law, Competition policy,
Financial services, Consumer and health protection. In this cluster particularly good results
were reached, for example, in the area of free movement of goods. Ukraine made good
progress in alignment of the EU acquis on Technical Barriers to Trade aiming to comply with
EU standards on product safety. This allowed to start preparations for a future Agreement on
Conformity Assessment and Acceptance of Industrial Products (ACAA) in three sectors for
which a pre-assessment is ongoing.
Good results were also achieved in the area of competition. Ukraine has in place a law on
competition, which contains a standard set of rules comparable to most antitrust acts in the
EU. Moreover, during the last years the Ukrainian competition control authority has
significantly improved its case-handling practices aiming to align with the EU laws and
practices on competition. The current State Aids law provides a basis to control State Aid but
needs to be further aligned.
There are other areas in the cluster where the approximation to the EU acquis is still limited;
this applies, for example, to the area on Intellectual Property Rights (IPR). A number of new
laws were adopted in 2019 and 2020: on trademarks and designs, on patents, on Geographic
Indicators and on IPR border measures. More efforts are needed notably on implementation
and enforcement.
The Competitiveness and inclusive growth cluster includes the chapters of the EU acquis on
Information society and media, Taxation, Economic and monetary policy, Social policy and
employment, Enterprise and industrial policy, Science and research, Education and culture,
Customs union. In this cluster particularly good results were reached, for example, in the area
of information society and media where Ukraine carried out an in-depth sectoral reform and
8

COM (2020) 57 final

17

approximation with the EU Digital Single Market acquis. Ukraine has adopted the laws on
electronic communications and telecommunications regulator, and has been enforcing those
laws as of the beginning of 2022. The alignment with EU audio-visual media legislation
remains to be completed, particularly as regards the role of media regulator, transparency of
media ownership, and equal market conditions.
Good results were also achieved in the area of customs. Ukraine has adopted the necessary
legislation to comply with the requirements and join the conventions on the Common Transit
Procedure and on the simplification of formalities in trade in goods, and to implement the
Authorised Economic Operators Programme, unlocking advantages in customs clearance
procedures and facilitation of trade in goods. Negotiations on the update of the Annex XV
related to the implementation of the legislation of the new Union Customs Code were
successfully finalised. Ukraine’s association to Horizon Europe and the Euratom Research
and Training Programme is a successful instrument for integration with the EU’s practices in
the field of research and innovation.
There are other areas in the cluster where the approximation to the acquis is still limited, for
example in the area on social policy and employment.
The cluster on the Green agenda and sustainable connectivity includes the chapters of the
acquis on Transport policy, Energy, Trans-European networks, and Environment and climate
change. In this cluster particularly good results were reached in the area of energy as regards
the set-up of its electricity and gas markets, including the unbundling and certification of the
gas- and electricity transmission network operators. Ukraine has also carried out structural
transformation of its electricity and gas market design, based on the EU rules. Ukraine’s
membership in the Energy Community has given a boost to the process of approximation of
legislation. Energy Efficiency framework legislation is covering substantial parts of the EU
acquis. The good work in this area allowed Ukraine to be connected to the EU’s electricity
grid in March 2022 and to agree on a gradual increase of electricity exports under clear
technical conditions to be fulfilled. Ukraine has a huge potential for producing renewable
energy and develop a clean hydrogen economy. All these would help reducing energy
dependence on Russian fossil fuels in line with REPowerEU plan and mitigating liquidity
issues in the energy sector. The High Level Working Group on energy market will further
accelerate needed reforms while ensuring regional security of supply, and paving the way for
future electricity and renewable hydrogen trade, as well as rebuilding the energy system under
the REPowerUkraine initiative. For this cluster, the strategic high level dialogue with Ukraine
on the European Green Deal 9 and the Ukrainian green transition, which was launched in 2021
has demonstrated high level interest and dedication to the green agenda on the side of the
Ukrainian government. This is necessary to enable the country’s green transition and to reach
its new climate targets in line with the objectives of the Paris Agreement. The dialogue has
also shown that considerable efforts are needed to ensure legislative alignment for instance
with the EU climate and environmental acquis, as well as to secure the adequate
administrative, financial and organisational capacities to implement and enforce it.
There are other areas in the cluster where the approximation to the acquis is still limited, for
example, in the area on transport, where only around a third of the relevant EU acquis has
been implemented. Significant results have been achieved only in some areas of essential
importance for the reform of the transport sector, such as through the adoption of legislation
on inland waterways and on multimodal transport. Since 2018, the Transport Dialogue helps
9

COM(2019) 640 final

18

deepen connectivity and supporting approximation. The implementation of the EU-Ukraine
Common Area Aviation Agreement signed in October 2021 will lead to the progressive
harmonisation of Ukrainian legislation with EU aviation rules and standards.
The cluster Resources, agriculture and cohesion includes the chapters of the EU acquis on
Agriculture and rural development, Food safety, veterinary and phytosanitary policy,
Fisheries, Regional policy and coordination of structural instruments, and Financial and
budgetary provisions. In this cluster particularly good results were reached, for example, in
the area of Food safety, veterinary and phytosanitary policy. The sanitary and phytosanitary
sector stands out as the single most comprehensive and complex area in the AA/DCFTA.
Ukraine has a particular high alignment rate of legislation in the area of food safety, animal
and plant health. Responsibilities deriving from the updated legislation are clearly shared
between the public and the private sectors to ensure products of appropriate safety are put on
the market, both domestically – thereby improving the confidence of Ukrainian consumers in
Ukrainian products – but also for exports, including to the EU. Ukraine is working in close
cooperation with regional fisheries management organisations to align its relevant legislation
to the EU acquis and international standards. The country has started to implement some key
mechanisms for regional policy.
The approximation to the EU acquis in the area of Agriculture and rural development is
limited.
The cluster external relations includes External relations and Foreign, security and defence
policy. Ukraine has an overall good record of alignment with the EU Common Foreign and
Security Policy positions. The alignment rate with relevant High Representative statements on
behalf of the EU and Council Decisions was 79% in 2021 (2020: 81%; 2019: 63%; 2018:
46%, 2017: 80%). Ukraine was an active contributor to EUNAVFOR ATALANTA between
November 2010 and November 2011 (provision of a naval officer) and in January-February
2014 (provision of a frigate). Ukraine has also contributed to the EU Battle Groups on
various occasions between 2011 and 2020 and was preparing to participate in the EUFOR
Althea mission which was eventually not possible due to Russia’s war against Ukraine. There
is scope to further enhance cooperation in the area of Common Security and Defence Policy
(CSDP) and to achieve increased convergence with the Common Foreign and Security Policy
(CFSP) including on EU positions. Ukraine has still to fulfil its commitment under Article 8
of the Association Agreement to ratify the Rome Statute of the International Criminal Court.
4. CONCLUSIONS AND RECOMMENDATIONS
Ukraine is a vital parliamentary-presidential democracy with competitive elections at national
and local level, based on a comprehensive constitutional, legislative and institutional
framework which overall corresponds to European and international standards. The legal
framework for a modern public administration is in place but is not yet fully implemented.
Ukraine has undertaken a successful decentralisation reform, including fiscal decentralisation.
Judicial independence has been strengthened and independent anti-corruption bodies have
been set up, including a well-functioning High Anti-Corruption Court. The independence of
all anti-corruption institutions remains crucial. Accountability and efficiency of the judiciary
need to be strengthened and shortcomings in the functioning of law enforcement institutions
addressed, in particular in fighting corruption, which remains a serious challenge across the
country. The legal and institutional framework ensuring the respect for fundamental rights is
19

in place and overall complied with but implementation should be further improved. An active
and empowered civil society is a defining feature of Ukrainian democracy. The resilience of
Ukrainian institutions has been on full display since the Russian invasion, with the
government continuing to function at all levels. Overall, as regards the political criteria,
Ukraine is well advanced in reaching the stability of institutions guaranteeing democracy, the
rule of law, human rights and respect for and protection of minorities.
Concerning the economic criteria, Ukraine has continued its strong macro-economic record,
demonstrating a noteworthy resilience with macroeconomic and financial stability ensured
also after Russia’s invasion in February 2022. This reflects not only a very strong political
determination, but also relatively well-functioning institutions. At the same time, ambitious
structural reforms to remove corruption, reduce the State footprint and the persistent influence
of oligarchs, strengthen private property rights and enhance labour market flexibility need to
continue in Ukraine to improve the functioning of its market economy. The capacity of the
country to cope with the competitive pressure in the EU will depend crucially on how postwar investments in Ukraine are designed and sequenced in order to upgrade its physical
capital, improve educational outcomes and spur innovation.
As regards the capacity to fulfil the obligations of membership, Ukraine has worked since
2016 on the implementation of the EU-Ukraine Association Agreement, including a Deep and
Comprehensive Free Trade Area (AA/DFCTA). These agreements already capture an
unprecedented amount of the EU acquis. Ukraine has gradually approximated to substantial
elements of the EU acquis across many chapters. It has an overall satisfactory track record of
implementation, while in some sectors the country is more advanced than in others.

Ukraine is a European State which has given ample proof of its adherence to the values on
which the European Union is founded. The Commission therefore recommends to the Council
that Ukraine should be given the perspective to become a member of the European Union.
Ukraine has demonstrated the resilience of its institutions guaranteeing democracy, rule of
law, human rights and respect for and protection of minorities.
The Commission, therefore, recommends that Ukraine be granted candidate status, on the
understanding that the following steps are taken:
- enact and implement legislation on a selection procedure for judges of the Constitutional
Court of Ukraine, including a pre-selection process based on evaluation of their integrity
and professional skills, in line with Venice Commission recommendations;
- finalise the integrity vetting of the candidates for the High Council of Justice members by
the Ethics Council and the selection of candidate to establish the High Qualification
Commission of Judges of Ukraine;
- further strengthen the fight against corruption, in particular at high level, through proactive
and efficient investigations, and a credible track record of prosecutions and convictions;
complete the appointment of a new head of the Specialised Anti-Corruption Prosecutor’s
Office through certifying the identified winner of the competition and launch and complete
20

the selection process and appointment for a new Director of the National Anti-Corruption
Bureau of Ukraine;
- ensure that anti-money laundering legislation is in compliance with the standards of the
Financial Action Task Force (FATF); adopt an overarching strategic plan for the reform of
the entire law enforcement sector as part of Ukraine’s security environment;
- implement the Anti-Oligarch law to limit the excessive influence of oligarchs in economic,
political, and public life; this should be done in a legally sound manner, taking into account
the forthcoming opinion of the Venice Commission on the relevant legislation;
- tackle the influence of vested interests by adopting a media law that aligns Ukraine’s
legislation with the EU audio-visual media services directive and empowers the
independent media regulator;
- finalise the reform of the legal framework for national minorities currently under
preparation as recommended by the Venice Commission, and adopt immediate and
effective implementation mechanisms
The Commission will monitor Ukraine’s progress in fulfilling these steps and report on them,
together with a detailed assessment of the country, by the end of 2022.
The accession process remains based on established criteria and conditions. This allows
any country in the process to progress based on own merits but also means that steps towards
the EU can be reversed if the underlying conditions are not met anymore.

21