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Standart version

Conflict of Interest

The Law of Ukraine on Prevention of Corruption determines two types of conflicts of interest:

  • Potential conflict of interest – a person has a private interest in the sector where he/she performs official or representative powers, which may affect the objectivity or impartiality of decision-making, or action and inaction in the exercise of these powers.
  • Actual conflict of interest – a conflict between the private interest of a person and his/her official or representative powers, which affects the objectivity or impartiality of decision-making, or action and inaction in the exercise of these powers.

Private interest is any property or non-property interest of a person. Such interest may be based on personal, family, friendship or other off-duty relationships with individuals or legal entities, as well as other circumstances.

An integral part of the conflict of interest is the official/representative powers and the influence (possibility of influence) of the private interest on the objectivity or impartiality of decision-making, action or inaction in the exercise of these powers.

Private interest can influence the objectivity or impartiality of decision-making, action or inaction only in the exercise of discretionary official or representative powers.

The contradiction is that, on the one hand, a person has a private interest (property or non-property), and on the other – a person authorized to perform the functions of the state or local government is to perform official duties in the interests of the state, territorial community, excluding the possibility of any influence of private interest.

The Law on Prevention of Corruption stipulates that certain persons are obliged, in particular, to notify the immediate supervisor no later than the next working day from the moment when the person learned or should have learned about the existence of an actual or potential conflict of interest. If a person holds a position that does not envisage the existence of an immediate supervisor or that in a collegial body, he/she shall notify the National Agency or another statutory or collegial body in the exercise of his/her powers in which the conflict of interest arose, respectively.

The immediate supervisor of the person or the head of the body that may dismiss or initiate the dismissal of an employee within two working days after receiving notification of the employee’s conflict of interest, shall decide on the settlement of the conflict of interest, notifying the person concerned.
The measures of external settlement of the conflict of interest and the procedure for their implementation are defined in Articles 29-34 of the Law on Prevention of Corruption.

If the National Agency receives a notification from a person in a position without a direct supervisor of the existence of a conflict of interest, it shall, within seven working days, explain to the person the procedure for settlement of the conflict of interest.

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