EU-LEAP project

Project: Alignment of Corporate Governance Reform of State-Owned Enterprises with EU Requirements

The EU-LEAP team is implementing a project aimed at analyzing the effectiveness of corporate governance reform of state-owned enterprises in Ukraine and assessing its compliance with European Union and OECD standards.

As part of the project, a thorough analysis of Ukrainian legislation in the field of corporate governance is planned to identify which provisions require further refinement for the effective reform of state-owned enterprises. The main output of the study is a set
of practical recommendations for the Government and the Verkhovna Rada of Ukraine, which will help bridge the gaps between enacted laws and their actual implementation, as well as ensure that Ukrainian reforms meet EU criteria.

The initiative also involves aligning Ukrainian reforms with the updated 2024 OECD Guidelines and conducting a series of expert consultations and roundtables. These events will bring together representatives of government agencies, Parliament, and civil society in a common forum to enhance the quality of public dialogue on Ukraine’s European integration goals.

The project “Alignment of Corporate Governance Reforms in State-Owned Enterprises with EU Requirements” is being implemented as part of the “Europe and the World” program, with financial support from the International Renaissance Foundation, which
is co-financed by the European Union.

Project Materials

Analytical Review of the European Commission Report (2025)
Structured Analytical Section on Ukraine’s Plan under the Ukraine Facility (2024–2027)
Analytical Review of the OECD Guidelines on Corporate Governance of State-Owned Enterprises (2024)
A unified analytical framework for assessing compliance, including a matrix of compliance with European Commission requirements and OECD standards;
Legal analysis of Ukrainian Laws No. 3587-IX, No. 4196-IX, and relevant subordinate legislation
Analytical section (desk research) on the operational practices of management bodies and supervisory boards (and all key criteria?)
of state-owned enterprises
Comprehensive analytical report on the project’s findings, containing a list of bottlenecks in the implementation of corporate governance policies for state-owned enterprises
Results of a closed-door strategic session to discuss the draft recommendations
Results of an expert roundtable, including representatives from the Ministry of Economy, the Verkhovna Rada Committee on Economic Development, the National Securities and Stock Market Commission (NSSMC), the State Property Fund of Ukraine (SPFU), state-owned enterprises, and the expert community
Final report on the project’s results

Relevance:

The relevance of this project is directly linked to the results of the official screening of Ukrainian legislation and the European Commission’s assessments set out in the 2025 Enlargement Package (specifically, in the “Company Law” section). EU experts note that Ukraine currently has only a certain level of preparedness in the area of company law and has demonstrated limited progress in implementing effective corporate governance mechanisms—particularly with regard to transparency, accountability, and the clear roles of governing bodies.

Although Ukraine has already adopted basic laws, in particular, Law No. 3587-IX on Improving Corporate Governance and Law No. 4196-IX on the Specifics of Regulating the Activities of Legal Entities of Certain Organizational and Legal Forms During the Transition Period and Associations of Legal Entities, the actual implementation of these provisions requires significant acceleration and refinement, especially at the level of state-owned enterprises. That is why it is critically important today to develop a systematic and independent approach that will allow for an objective assessment of the extent to which the implemented changes comply with the European Commission’s recommendations and how these reforms are being implemented in practice.

Project goal:

To provide analytical and expert support for Ukraine’s fulfillment of its obligations in the area of corporate governance of state-owned enterprises in accordance with the European Commission’s recommendations, Ukraine’s Action Plan under the Ukraine Facility, and the OECD Guidelines on Corporate Governance of State-Owned Enterprises, through an independent analysis of current approaches and the preparation of practical recommendations for government authorities.

Project objectives:

Analyze the European Commission’s reports and recommendations regarding Ukraine.
Conduct an analysis of national legislation and subordinate legislation in the area of corporatization and corporate governance.
Assess the compliance of current Ukrainian mechanisms with the requirements of the EU acquis.
Identify key issues, discrepancies, and “bottlenecks” in the implementation of the reform.
Align national approaches with the updated international standard—the OECD Guidelines on Corporate Governance of State-Owned Enterprises (OECD Guidelines 2024)—which the EU systematically follows.
Prepare an analytical report and practical policy recommendations for the Government and the Verkhovna Rada of Ukraine
with the aim of revising current approaches to reform.
Conduct expert consultations and roundtables involving representatives of government agencies, Parliament, local self-government, and civil society to improve the quality of public dialogue on European integration.

Expected results:

An analysis was conducted of the compliance of state-owned enterprises’ corporate governance policies and practices
with the recommendations of the European Commission, Ukraine’s Action Plan under the Ukraine Facility, and OECD standards.
Key areas for improving and accelerating corporate governance reform were identified in the context of Ukraine’s preparation
for EU accession.
A comprehensive overview of the gaps between the adopted regulatory framework and its actual implementation in practice
has been developed.
Practical recommendations have been formulated, tailored to the needs of government agencies directly responsible for shaping corporate governance policy.
A structured dialogue has been facilitated between government agencies, Parliament, and civil society regarding the next steps
in the reform.
The Government and Ukraine’s negotiating team were provided with an analytical foundation for formulating Ukraine’s official positions in the dialogue with the European Commission regarding the implementation of the Enlargement Package recommendations.
The analytical framework developed was applied to monitor the implementation of the structural milestones and indicators
of Ukraine’s Plan within the Ukraine Facility.
The recommendations were used to update regulatory approaches in line with OECD standards, which will strengthen Ukraine’s readiness for membership in the organization.
The alignment of Ukrainian policy with the requirements of the EU acquis was strengthened, increasing transparency, accountability, and institutional capacity in the area of state asset management.