1. Bribery in the home (private to public)
1.1 The Legal Environment
Bribery of public officials is prohibited under Ukraine’s Criminal Code (Chapter XVII) and the 2014 Law of Ukraine “On Corruption Prevention.” Chapter XIV-1 of Ukraine’s Criminal Code, which establishes private legal companies’ criminal liability for corrupt actions, went into force on September 1, 2014.
1.2 What is the definition of bribery?
Rather than using the phrase “bribe,” Ukrainian law uses the word “unlawful benefit.” Thus, an unlawful benefit may comprise dollars or other assets, benefits, rights, services, or non-material treasures that are promised, suggested, delivered, or received without legal grounds, according to the applicable rules.
This offence (proposing or providing an illicit benefit) can be committed by both public officials and private individuals who attempt or have attempted to bribe a public official. Commercial bribery (unlawful benefits to private company employees) is likewise illegal.
1.3 What is a public official?
The term “public official” is defined broadly under the Ukrainian Criminal Code, and encompasses anyone who performs public managerial tasks on behalf of the state. However, the Law of Ukraine “On Prevention of Corruption” includes a list of specific types of public officials, which includes not only state-level officials, but also municipal officers, managers of public companies, notaries, auditors, experts, receivers, arbitrators of arbitration tribunals, and others who perform similar public functions.
1.4 Bribery Consequences
(a) For those involved in providing illicit benefits (bribes) The Criminal Code of Ukraine specifies sanctions for both public officials and those who corrupt public officials.
The consequences for bribing officials vary depending on the specific facts and aggravating circumstances (if any) of a given situation:
A fine of up to EUR 56,696 may be imposed.
Up to four years of restricted liberty
Property confiscation
The following are the consequences for officials who take unlawful benefits:
A fine of up to EUR 850 may be imposed.
Disqualification from certain employment for up to three years
a sentence of up to 12 years in prison
Property confiscation
(b) However, the Criminal Code of Ukraine (as amended) has provided for the criminal culpability of private legal companies since September 1, 2014. A fine is imposed for corrupt practices. The fine should, on average, be double the advantage gained by the entity. If no benefit was received or the amount could not be determined, the fine should be set by the judge and should be in the range of EUR 2,833 to EUR 42,500.
1.5 Contributions from politics
Since 2015, applicable Ukrainian legislation has restricted contributions to political parties in great detail. Certain individuals, in particular, are not permitted to contribute (including foreigners or companies the ultimate beneficiaries of which are foreigners). A legal entity may not contribute more than EUR 41,333 to a single recipient in a calendar year. Individuals can donate up to EUR 20,667 per year to a single recipient. Contributions might be in the form of cash, commodities, services, or any other non-monetary benefit (e.g., intellectual property or free labour of volunteers).
1.6 Hospitality expenses are subject to a limit (gifts, travel, meals, entertainment, amongst others)
Hospitalities (including, but not limited to, travels, hosted dinners, and entertainment) that may be lawfully supplied to public officials are not regulated separately and specifically in Ukrainian law. At the same time, Ukraine’s “On Prevention of Corruption” Law imposes limits on the value of gifts that can be given to public officials.
Ukrainian law, in particular, prohibits public officials from accepting any presents other than those that correspond to commonly accepted hospitality and are within specifically approved limitations. A gift (contribution) cannot be worth more than the statutory minimum monthly pay in effect at the time it is given. An official is not authorized to receive more than one statutory subsistence allowance for a working person legally applicable as of 1 January of the relevant year from a single source during a calendar year. At the moment, the value of presents per occasion, as well as the overall value of such presents (donations) from one source throughout a calendar year, should not exceed EUR 51.
Any present (donation) made with the intent of influencing, in any way, the performance by a public official of his or her duties (e.g., performance or non-performance of any activities), or provided by a subordinate, is forbidden, regardless of its value.
2. Bribery in the home (private to private)
2.1 The Legal Environment
The Criminal Code of Ukraine (Chapter XVII) and the Law of Ukraine “On Prevention of Corruption” regulate private bribery. The Criminal Code of Ukraine was amended on September 1, 2014, to include Chapter XIV-1, which makes private legal entities liable for corrupt practices.
2.2 Bribery in the private sector
In the case of private bribery, Ukrainian law uses the phrase “unlawful advantage” rather than “bribery.” Thus, an unlawful benefit can include dollars or other assets, benefits, privileges, services, and non-material assets that are promised, suggested, delivered, or acquired without legal basis, according to current rules.
This offense (proposition, offer, acceptance, or provision of an illicit advantage) can be committed by both public authorities and private individuals who attempt or have attempted to corrupt a private corporation official, employee, or contractor.
2.3 Private bribery’s Consequences
(a) Individuals involved in the provision of illicit benefits (bribes) face a penalty of up to EUR 397 in addition to the confiscation of the unlawful benefit under Ukraine’s Criminal Code. In addition, the bribe-giver might face a four-year prison sentence.
The corporate officer who received the illicit benefit or who accepted the offer can be imprisoned for up to seven years, have the unlawful benefit or any other property confiscated, and be barred from holding certain posts for up to three years.
(a) The Criminal Code of Ukraine (as modified) has provided for the criminal liability of private legal entities from September 1, 2014. A fine is imposed for corrupt practices. The fine should, on average, be double the advantage gained by the entity. If no benefit was received or the amount could not be determined, the fine should be set by the judge and should fall somewhere between EUR 2,833 and EUR 42,500.
2.4 Hospitality expenses are subject to a limit (gifts, travel, meals, entertainment, amongst others)
Hospitalities (including, but not limited to, travels, hosted dinners, and entertainment) that may be legitimately supplied to officials of private firms are not regulated separately and specifically in Ukrainian law. However, it is strongly advised that when providing such hospitality, the actions adhere to widely accepted reasonability and modesty in order to avoid the potential treatment of such hospitality as “unlawful benefit,” as defined by the Criminal Code of Ukraine.
3. Foreign public officials’ corruption
3.1 The Legal Environment
The Criminal Code of Ukraine regulates foreign public officials’ corruption (Chapter XVII).
3.2 Definition of foreign public officials’ corruption
Ukrainian law uses the phrase “unlawful advantage” instead of “bribe” to describe corruption of foreign public officials. Thus, an unlawful benefit may comprise monies or other assets, benefits, privileges, services, and non-material values that are promised, suggested, offered, delivered, or received without legal basis, according to the applicable rules.
3.3 Explanation of the term “foreign public official”
A foreign public official may refer to any of the following for the purpose of bribery:
A person who serves in a foreign country’s legislature, administration, or judiciary.
A member of a tribunal of international (alternative) commercial arbitration.
Members of an international parliamentary assembly, as well as officials from public international organizations
3.4 Consequences of Foreign Public Official Corruption
The articles of the Criminal Code of Ukraine that apply to domestic corruption of public officials apply to international public officials as well. Please visit Section 1.3 for more information.
3.5 Hospitality expenses are subject to a cap (gifts, travel, meals, entertainment, amongst others)
Hospitalities (including, but not limited to, travels, hosted dinners, and entertainments) that may be legitimately supplied to foreign public officials are not regulated separately and specifically in applicable Ukrainian legislation. However, it is strongly advised that when providing such hospitality, they guarantee that their activities are consistent with widely accepted reasonability and modesty in order to avoid the potential designation of such hospitality as “unlawful benefit,” as defined by the Criminal Code of Ukraine.