The EU and the UN partner in the fight against organized crime in Eastern Europe

The European Union (EU) and the United Nations Interregional Crime and Justice Research Institute (UNICRI) launch an Eastern Partnership assistance program for Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine, to recover assets related to organized crime.

The EU-funded project is worth 1.5 million EUR and will try to deprive criminals of all their illicit acquisitions and improve inter-institutional and cross-border coordination in the bloc’s eastern neighbors. The project will focus on financial crime investigations.

UNICRI will assist staff in the six Eastern Partnership countries by providing “highly specialized training”, guidance and legal advice to deal with issues such as cross-border cooperation.

The fight against money laundering and organized crime is one of the new priorities of the European Commission (EC) vision for “responsible institutions, the rule of law and security” on the Eastern Partnership beyond 2020, which was presented last month.

The UN estimates that between 2% and 5% of world gross domestic product (GDP) is “laundered” each year by organized crime.

Current policies in the Eastern Partnership countries have led to the freezing or seizure of up to 1% of assets related to money laundering and other organized crime, said Bettina Tucci Bartsiotas, interim director of UNICRI.

The longstanding problems of rule of law and good governance in the Eastern countries are often highlighted by EU officials as the areas most in need of significant improvement.

Ukraine

Last week, the Ukrainian parliament voted to lift the long-standing ban on farmland sales. Lawmakers also gave the green light for the second reading of a bill that would prevent former bank owners from recovering their assets after bankruptcy.

Banking law is the latest major obstacle to securing an 8 billion USD loan from the International Monetary Fund (IMF), which is badly needed to help Ukraine’s developing economy amid the economic storm caused by the spread of the coronavirus.

Ukrainian President Volodymyr Zelensky has been scrutinized for his business ties with oligarch Igor Kolomoisky, and has repeatedly rejected allegations that he will help the oligarch regain control of PrivatBank, which was forcibly nationalized in 2016.

However, many remain skeptical as concerns over judicial reform have grown since the dismissal of the country’s chief prosecutor and a swift change of government last month.

New Attorney General Iryna Venediktova “does not look very reliable”, MEP Viola von Cramon-Taubadel of the Greens told Euractiv. “In addition to its lack of qualifications, its dubious contacts and lack of independence imply a slowdown in anti-corruption reforms”, said Viola von Cramon-Taubadel.

The appointment of Venediktov is considered by many in Ukraine as Volodymyr Zelensky’s attempt to move forward with a criminal investigation against former President Petro Poroshenko.

Another recent scandal with Andriy Yermak, Zelensky’s chief of staff, broke out after videos surfaced last week that allegedly show Yermak’s brother selling government posts.

A pandemic and a force that is concentrated in the hands of the executive government may further hamper justice reform, warns Viola von Cramon-Taubadel.

“However, given the positive role President Zelensky played in passing the land and bank bills, I hope he will remain cautious and not use the health crisis as a pretext for undemocratic decisions”, added the MEP.