What are the risks for businesses that work with such companies?
10 May 2021
Ukrainian state officials must provide information about their companies in asset declarations. In the last five years, the number of such companies has increased by 3,000: in the declarations of 2016, their number was 16,117, while in 2020, it was 19,118.
The government composition is constantly changing, and the list of businesses associated with state officials is different every year too. The total number of companies mentioned in declarations for the past five years is 42,262.
The Laws of Ukraine do not forbid state officials to own a business or to be an ultimate beneficiary but require them to transfer equity rights to other persons who are not close relatives of an owner.
«Each entrepreneur decides whether to work with the companies owned by state officials. However, they should take into account the potential reputation risks and the fact that the cooperation might end after an election or government change»,
— said Fedir Safir, the Chief Product Officer at Opendatabot.
|Number of companies||16,117||17,289||18,223||19,994||19,118|
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