If you have EU funding, get ready for inspections: a law has been signed
13 September 2024 13:08
President of Ukraine Volodymyr Zelenskyy has signed Law 3904-IX ratifying the agreement between Ukraine and the European Union on Ukraine’s participation in the EU’s anti-fraud programme. This law allows EU representatives to conduct technical, scientific, financial and other types of inspections at the premises of individuals and legal entities in Ukraine that receive EU funding or are involved in the use of such funds, reports "Komersant Ukrainian".
The European Commission and the European Court of Auditors, as well as other authorised persons, have the right to carry out these inspections and audits, including access to documents in electronic and written forms. Ukraine is obliged to provide unimpeded access for EU representatives, not to impede their entry and to facilitate the conduct of inspections.
The agreement also stipulates that the European Commission and the European Anti-Fraud Office (OLAF) may conduct administrative investigations in Ukraine, including on-site inspections.
Follow us on Telegram: the main news in a nutshell
These investigations can be carried out on the premises of any person or organisation receiving or participating in EU funding.
Importantly, the European Commission has the right to impose administrative sanctions on Ukrainian legal entities and individuals involved in the implementation of EU programmes. Also, any decisions to impose fines can be enforced in Ukraine.
In addition, Ukraine is obliged to make financial contributions to the EU programme budget, including an annual payment based on the ratio of Ukraine’s GDP to the EU’s GDP. In the event of a delay in payments, Ukraine must pay interest on the overdue debt. However, due to the armed aggression, the Agreement contains a Protocol on the temporary suspension of payments to the EU budget.
Follow us on Telegram: the main news in a nutshell
