Overview

Ukraine’s Business Ombudsman Council (BOC) is now the primary channel for companies to report unfair business practices. It was formally established in May 2015 as a result of discussions with various stakeholders and its development was overseen by the European Bank for Reconstruction and Development and Basel Institute on Governance.

A variation on the HLRM, the BOC operates as an independent institution. Its multi-stakeholder Supervisory Board includes representatives from the Ukrainian Cabinet of Ministers, international organisations (EBRD, OECD) and independent business associations.

The BOC is already helping to boost transparency and trust in business practices in Ukraine. Between May 2015 and December 2017, the BOC received more than 2,900 complaints. More and more cases are being submitted, mostly by SMEs, with a satisfaction rate of around 95%.

The direct financial impact on businesses in Ukraine is regularly updated on the BOC website and already runs into hundreds of millions of US dollars.

How the Ukrainian BOC Works

Ukraine’s Business Ombudsman Council shares many of the HLRM’s defining features. Alerts are received, assessed and, if appropriate, brought to the attention of the relevant authorities during regular or on-demand meetings. It takes around three months to process a complaint. As an independent body, businesses and individuals regard the BOC as trustworthy.

The system benefits all parties. For example, the BOC can gain clarifications for businesses about laws and regulations, as well as inform authorities about their potential misinterpretation. The Council can also make recommendations to authorities and agree on how to rectify wrongdoings within a specified timeframe. The implementation of BOC recommendations by authorities is currently around 87% – significant considering it does not have official enforcement powers.