L&M Finance Group

Amendments to the Code of Ukraine on Administrative Offenses Regarding Violation of Legislation in the Field of Lobbying

On April 16, the President of Ukraine signed draft law No. 10373 on administrative offenses in the sphere of lobbying.

This bill is an addition to the Law on Lobbying, in terms of liability for illegal lobbying.

With analysis of the Law on Lobbying from the Team of the Law & Management Finance Group, you can learn more about it at the following link: https://lmfgr.com/tpost/3s7raazbc1-zakon-pro-lobyuvannya-priinyato.

The purpose of the draft law is to establish legal regulation of lobbying in Ukraine by international practices and standards by introducing administrative responsibility for lobbying, among which amendments were made to the Code of Administrative Offenses in the Lobbying Sector. The draft law provides for administrative liability for lobbying without registration, failure to submit, or untimely submission of a report, as well as for actions in conditions of conflict of interests.

In this connection, the employees of the National Agency for the Prevention of Corruption received more powers in this area. This step is important for ensuring the transparency of the authorities and the implementation of the Anti-Corruption Strategy for 2021-2025, is one of the requirements of the European Commission for Ukraine's accession to the EU and a key requirement for the recommendations of the Group of States against Corruption (GRECO). It is about reducing corruption and the shadowy influence of oligarchs on state management. Transparency and openness to society of the rules for exercising legal influence on the formation of Ukrainian state policy, and adoption of normative legal acts by the Ukrainian authorities will be introduced.

In addition, the draft law defines offenses committed in the sphere of lobbying by the subjects of the offense (individuals or managers of legal entities), in particular:

1. lobbying without registration in the special Register of "lobbyists" (transparency) is punishable as an administrative offense in the amount of 50 to 100 tax-free minimums (from 850 to 1,700 hryvnias);

1.1. repeated lobbying by a person who has already been fined for such offenses within a year is punishable by a fine in the amount of 200 to 500 tax-free minimums (from 3,400 to 8,500 hryvnias);

2. the implementation of lobbying by a person who, upon acquiring the status of a lobbying subject, did not report the existence of circumstances that exclude the possibility of such a person being a subject of lobbying by the Law is punishable as an administrative offense in the amount of 500 to 1,000 tax-free minimums (from 8,500 to 17,000 hryvnias);

3. submitting false information in a report to the Transparency Register entails the imposition of a fine in the amount of 50 to 100 non-taxable minimums (from 850 to 1,700 hryvnias).

3.1. repeated offenses entail the imposition of a fine in the amount of 300 to 400 tax-free minimums (from 5100 to 6800 hryvnias) with a ban on future lobbying activities within one year ;

4. failure to submit or untimely submission of an application to the NAKC to stop lobbying due to the incompatibility of representation as a lobbyist is punishable by a fine in the amount of 100 to 300 tax-free minimums (from 1,700 to 5,100 hryvnias);

5. violation of restrictions on the subject of lobbying, or carrying out lobbying in the commercial interests of a person who cannot be a beneficiary, or on the order of a person who cannot be a client, or financing lobbying at the expense of funds (means) that cannot be a source of financing lobbying according to requirements of the law on lobbying is punished by imposing a fine in the amount of 1,000 to 2,000 tax-free minimums (from 17,000 to 34,000 hryvnias) with a ban on future lobbying activities for one year.

The Law on Administrative Offenses in the Field of Lobbying shall enter into force at the same time as the Law on Lobbying, namely after two months from the date of the start of operation of the Transparency Register, but no later than January 1, 2025.