The Government of Ukraine and European Bank for Reconstruction and Development (EBRD) inked an agreement on strengthening corporate governance.

Wednesday, October 7, Prime Minister of Ukraine Denys Shmyhal and EBRD Managing Director, Eastern Europe and the Caucasus Matteo Patrone signed a Memorandum of Understanding between the Government of Ukraine and the European Bank for Reconstruction and Development to prevent corruption and promote transparent and effective governance.

"Cooperation with the EBRD encapsulates not only financing, but also effective implementation of reforms, innovations and development for Ukraine and for every business that cooperates with it. And the signing of today's Memorandum is one example of a strong partnership," said the Prime Minister.

According to the document, the Government of Ukraine and the EBRD are establishing a strategic partnership to strengthen coordination of efforts and cooperation to achieve common goals in the field of preventing corruption and ensuring transparent and professional governance in the public sector.

The Memorandum also stipulates for the implementation of a pilot project in the State Agency for Motor Roads of Ukraine (Ukravtodor), within which Ukravtodor undertakes to carry out anti-corruption reform. The Government of Ukraine and the EBRD stand ready to develop a detailed Anti-Corruption Action Plan for the agency, which will identify priority areas for reform and a full implementation schedule.

"The partnership between Ukravtodor and the EBRD on corporate governance and anti-corruption practices is another indication that Ukraine has the political will to eradicate any corruption roots. In addition, such cooperation with our partners will increase the efficiency of public investment in infrastructure projects," the Head of Government stressed.

Denys Shmyhal dwelled on that the Government is continuing the reform of corporate governance in accordance with OECD guidelines and will determine the state-owned enterprises where corporatization is planned in the near future.

The Government of Ukraine and the EBRD as encompassed in the Memorandum agree to establish a High-Level Steering Committee, which composition will includerepresentatives of the Office of the President of Ukraine, the Government, the EBRD and the relevant state enterprise or state agency. The Steering Committee will review the progress of the joint work under the agreement and coordinate further action on a broader anti-corruption program.

In turn, EBRD Managing Director, Eastern Europe and the Caucasus Matteo Patrone stressed that this cooperation in strengthening anti-corruption measures in the road sector will be a pilot project and a litmus test to implement a broader program to prevent corruption and improve governance for all Ukrainian state-owned enterprises and organizations, which will be supported by the EBRD.