Brussels Warns Ukraine About Consequences of Reducing PEP Status to Three Years

The European Commission (EC) has sent an official note to the Ukrainian government, warning of possible negative consequences stemming from its plans to reduce the status of politically exposed persons (PEP) to three years. This action, the EC believes, contradicts Ukraine's obligations under the framework of European integration. The publication "European Truth" has reported that the relevant letter was received from one of the EC's departments.

Specifically, the letter addresses the legislative bill No. 15112-1, which pertains to the taxation of international parcels, and includes a provision stating that the PEP status, granted to individuals who hold or have held significant public positions, will only be valid for three years after the end of their terms. This has raised concerns in Brussels, as such changes could be perceived as a regression in the context of the so-called "seven steps"—key requirements that Ukraine must fulfill to maintain its candidate status for EU membership and to initiate membership negotiations.

The European Commission emphasized that bill No. 15112-1 fulfills a condition set by the International Monetary Fund (IMF) regarding the cancellation of VAT exemptions for international parcels; however, the provisions concerning PEPs are unrelated to IMF requirements. This indicates that legislative changes could negatively impact Ukraine's image in the eyes of international partners.

Moreover, the draft law includes an addition that classifies employees of state banks responsible for financial monitoring as PEPs, obliging them to declare their assets. The EC considers this step unwarranted and has urged Ukraine to take their comments into account.

In light of this, the European Commission recommends that Ukraine conduct additional consultations to ensure that all EU remarks are considered. "I recommend holding further consultations with us regarding this bill before its adoption," the letter states.

Ukrainian Deputy Prime Minister Taras Kachka confirmed that discussions are indeed ongoing with Brussels regarding this matter. "On Tuesday morning, the parliamentary committee already amended the three-year provision. We are currently in discussions on how to resolve this legislative issue, and I am confident that as a result of these consultations, we will find an acceptable solution," Kachka noted.

This situation underscores the importance of adhering to international standards and recommendations, which can significantly impact Ukraine's further integration into European structures. In a context where the country is striving for European integration, such decisions could have far-reaching consequences for its political and economic stability.

It is worth recalling that legislative bill No. 15112-1 also addresses the cancellation of exemptions for international parcels valued at up to 150 euros, which has sparked discussion among experts and business representatives. Whether Ukraine can find a compromise that satisfies both European partners and internal needs remains an open question.

The situation surrounding legislative bill No. 15112-1 represents a crucial stage in the reform of Ukrainian legislation, which must align with European standards. The manner in which Ukraine resolves this issue will not only affect its image but also its subsequent steps toward European integration.