Draft Law №11443: a new way to put pressure on business?
3 December 2024 20:19
OPINION
The Verkhovna Rada is preparing to consider draft law No. 11443, which, in my opinion, poses serious risks to business. Its main innovation is the introduction of the mechanism of “temporary restriction of legal entities”. This provides for the possibility of prohibiting a company from carrying out certain activities or depriving it of its rights and benefits by a court decision.
What does the draft law provide for?
The draft law allows prosecutors and investigators to initiate restrictions on the activities of companies in cases where, in their opinion, there are “sufficient grounds to believe” that the company may obstruct criminal proceedings or is involved in corruption.
However, the main problem lies in the wording “reasonable grounds” itself.
The draft law does not provide a clear definition of what can be considered such grounds. Can such grounds be operational data that is not evidence in criminal proceedings? The lack of clear criteria creates risks of subjective application of this mechanism.
Why is it dangerous?
1.Insufficient protection of business rights. The lack of defined criteria for “reasonable grounds” opens up opportunities for abuse.
2.Lack of effective control. Currently, law enforcement officers already have tools to influence business – unreasonable searches, seizure of documents, blocking of accounts. However, the system of prosecutorial and judicial control over these actions remains imperfect. The introduction of a new mechanism will only exacerbate this problem.
3.New tools of pressure, not protection. Instead of creating a transparent and predictable system of interaction with business, the draft law introduces additional levers that can be used against entrepreneurs.
4.Inconsistency with the goals of the country’s recovery. At a time when the President is calling for the creation of an “internal Victory Plan” to support the economy, this draft law looks like a step in the opposite direction. Instead of stimulating business, it creates additional risks for its operation.
I am convinced that in no case should new ways of putting pressure on business be introduced, especially in the absence of proper control over existing mechanisms.
First of all, it is necessary to:
-Eliminate the existing problems, such as unjustified searches, seizures, and blocking of accounts. Prosecutorial and judicial control over the actions of law enforcement agencies should be transparent and effective.
-Create favorable conditions for business. War is not only a battlefield. It is also an economic field, where entrepreneurs provide stability, jobs, taxes, and assistance to the Armed Forces. Business needs support, not additional obstacles.
-Reject any initiatives that threaten entrepreneurs with unpredictable risks.
This draft law, in my opinion, does not correspond to the idea of creating an “internal plan of victory” announced by the President.
If we want to preserve our economic potential and ensure post-war reconstruction, we must build partnerships between the state and business.
I hope that lawmakers will reconsider this approach and opt for protecting business rather than creating new instruments of pressure.
Author – Vyacheslav Trunov, expert advisor on business protection at Amber Law Firm
