Stepan Kubiv: Effective regulation must guarantee the safety of citizens while preventing the excessive pressure on business


The state must simultaneously fulfil two important tasks: to guarantee the safety and not allow the excessive regulatory pressure on businesses. The First Deputy Prime Minister Stepan Kubiv said about that during the briefing “From Deregulation to the Effective Regulation”.

 He also mentioned that some regulatory acts have been in force since the Soviet period, but the efficiency of most of them is doubtful or not measured at all. This situation interferes with the business, hampers the economic development and creates the possibilities for corruption and abuses.

According to Stepan Kubiv, the situation will change to the better if they make the system review of the regulatory framework. In other words, when they analyze the need and the benefit of a particular type of regulation and assess the effect of each process or decision.

“The processes that cannot be fully released from the regulation, as we speak about the safety, and here the deliberateness and caution are needed,” Stepan Kubiv stated.

He reminded that working groups with the task to review a particular sector in terms of effective regulation were created in 4 Ministers by his order. The work of these groups will include the contact with certain businesses or business process.

“The task is to assess the efficiency of regulation through the regulatory processes and aims instead of the documents correctly and accurately,” Stepan Kubiv stated. He added that the Better Regulation Delivery Office (BRDO) created by the Ministry of Economic Development and with the assistance of European specialists and experts was involved in the systematic review of the regulatory environment.

The Deputy Minister of Economic Development and Trade of Ukraine Maxim Nefyodov said that the systematic review of regulatory framework had to rely upon the real necessity instead of being carried out because of momentum. “We want to analyze the practicability of state regulation and decide what kind of regulation is needed, for what it is and what effect it has.”

He also added that European experts were involved for this purpose, and they would review more than 70 markets together with the Better Regulation Delivery Office (BRDO) specialists to assess the effective regulation during next year.

“We will report not on the amount of abolished papers, but on the quality of deregulation work. First of all, how we have reduced the costs and saved the business money for reinvestment,” Maxim Nefyodov explained the expected effect of the regulatory framework review.

The Head of the State Regulatory Service Ksenia Lyapina also mentioned the inexpediency of the deregulation effect’s measurement by the amount of abolished documents. According to her, the effect of such an approach is very doubtful, as it does not provide notable savings for the real business.

“Deregulation and effective regulation is when it is cheaper to conduct entrepreneurial activities and when the biggest business effect can be achieved with the minimal costs,” Ksenia Lyapina explained.

The Head of the Better Regulation Delivery Office (BRDO) Oleksiy Honcharuk reminded that over the past 25 years of independence, the regulatory rules have been far from business interests while having been written “to order” stimulating the corruption.

“That is why it is necessary to shift to new standards and approaches in relations between businesses and the state, where the both sides will seek the understanding. Now we are proposing not only the review tactics, but also are going to make a kind of “measurement” for the further strategic planning for the next 2-3 years,” Oleksiy Honcharuk added and focused on the existence of political will for this including the active support of the Ministry of Economic Development in the process of implementing the effective regulation.

The Head of the Better Regulation Delivery Office (BRDO) added that business should learn to trust the regulator and actively participate in the improvement of regulatory environment and implementation of new rules.