Corporate governance reform, privatization, digitalization are the measures taken by the Government to combat the shadow economy, says Denys Shmyhal

Reform of corporate governance, privatization of inefficient state-owned enterprises and digitalization are among the critical steps taken within the state to combat the shadow economy. This was stated by Prime Minister Denys Shmyhal, answering questions from journalists during a press conference following the Fourth Ukraine Reform Conference.

"To overcome the problems of the shadow economy, we are implementing corporate reform and privatization, transferring inefficient state-owned enterprises to joint-stock and private companies, respectively. This year, Parliament unblocked the large privatization. "Last year we had a successful experience of "small" privatization, exceeding, despite the pandemic, plans and expectations," said Denys Shmyhal.

The second important step, according to the Head of Government, is the maximum digitalization of relations between the state and business, the state and citizens.

"We have the ambition to switch to paperless mode by the end of year. In other words, all state and public services must be digitized in a format that prevents corruption," the Prime Minister stressed.

Denys Shmyhal noted that registration of business is facilitated (in particular, today it can be done in less than a minute through the Diia application), the procedure for obtaining permits is simplified or permitting procedures are abolished altogether, for example in the field of construction.

The Prime Minister added that the reform of the judiciary and the development of the infrastructure of anti-corruption bodies play an important role in overcoming the shadow economy.

"In addition, there are a number of measures being taken by Ukraine. Those include a bill on the reform of the Security Service of Ukraine, the separation of tax and customs services and transferring them into two different legal entities, the introduction of risk-oriented systems, as well as a significant list of reforms and measures to help curb the shadow economy," summed up the Prime Minister.