Development Partnership Forum Joint Statement 8 October 2020

Ukrainian Prime Minister Denys Shmyhal and Heads of Missions and Heads of Cooperation met 8 October 2020, in Kyiv, Ukraine, in the framework of the Development Partnership Forum, which was established as a part of the three-tier coordination mechanism between the Government of Ukraine (GOU) and the international Development Partners (DPs) in line with the Paris Declaration on Improving the Effectiveness of External Assistance. This meeting builds upon the successful Development Partnership Forum held in January 2020 and the Ukraine Reform Conferences (URC) held in London, Copenhagen, and Toronto. It is also a key milestone in preparing for the next URC expected to be held in Vilnius, Lithuania in 2021.

Development cooperation takes place in Ukraine across multiple sectors and areas and is being provided by 24 countries, IFIs and the EU with total grant assistance of roughly USD 5.7 billion since the Revolution of Dignity.

Cooperation between Ukraine and DPs is based on common interests and shared values and aims to support national reforms promoting an inclusive, independent, democratic, prosperous, and healthy Ukraine united around core European values. Both sides underscored that their shared aim is to achieve a tangible impact for all Ukrainian citizens, including its most vulnerable, based on the EU-Ukraine Association Agreement, 2030 Agenda for Sustainable Development and the Paris Agreement on Climate Change.

The GOU continues to be committed to reforms aimed at restoring economic growth and bringing the country closer to the European future. Development Partners stand ready to support the GOU to realise the potential of the Ukrainian economy through systemic changes to improve its business climate, increase investment attractiveness and to develop trade and human capital.

Participants commended the GOU on its leadership and progress in 2020 despite the COVID-19 pandemic and the continued armed conflict in eastern Ukraine. The discussion focused on key reforms that are being championed by the GOU and supported by DPs. They also emphasized the continued need for strong political leadership in Ukraine to advance and implement priority reforms, ensuring that they are adequately financed and that they become irreversible. At the meeting, the GOU and DPs agreed to the following:

1. Responding to the Pandemic. The COVID-19 situation is challenging and unprecedented. Building on the GOU’s efforts to develop and regularly update COVID preparedness, DPs reiterated support to enable the GOU to achieve its

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ambitions to further strengthen testing and contact tracing; and ensure a focus on the most vulnerable in their response plans.

2. Key Reforms. The GOU has made important commitments to implement the ambitious reform agenda and DPs are strongly committed to continue their support. The coming year will be pivotal to continue progress regarding:

a. Sustainable and Inclusive Economic Growth. Respecting the implementation of agreed corporate governance reforms for State Owned Banks and Enterprises in line with Organisation for Economic Cooperation and Development (OECD) principles. Creation of stock market; pursuing transparent privatizations and implementation of public private partnership in infrastructure sector; continuing customs, energy and electricity sector reform taking into account the EU Green Deal; reform of waste management; and not least, to adopt and implement the full package of laws on land reform to increase productivity, to ensure small and medium farmers benefit from the reform and to contribute to the improvement of livelihoods in rural areas.

b. Good Governance. Addressing critical issues in the country’s electoral environment to ensure effective, peaceful and credible upcoming local elections. Creating a durable decentralization framework that complies with the European Charter of Local Self Government principles. Continuing the implementation of Public Administration Reform based on the European Principles for Public Administration, in particular, quickly restoring competitive selection procedures for all civil servants and rapidly re- advertising the positions that were temporarily filled over the past six months. Further digitalization of public administration and introduction of paper-less government.

c. Human Capital Development. Finalizing a unified roadmap for healthcare reform, in consultation with stakeholders, including the National Health Service of Ukraine; ensuring a strong, independent central procurement entity and Center for Public Health; and continuing education and pension reform.

d. Rule of Law and Anticorruption. Creating a strategic anti-corruption reform framework and unified GOU vision for irreversible judicial, prosecutorial, and enforcement reforms; and ensuring the independence and effectiveness of key anti-corruption agencies. This requires, among other things, a transparent selection of the heads of these agencies and re-establishing the High Qualification Commission of Judges.

e. Security and Safety. Maintaining a strategic course towards deepening integration to EU and NATO as well as intensifying cooperation to counter disinformation.

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3. International Technical Assistance (ITA) Management Streamlining. The GOU and DPs agree to further strengthening cooperation for delivery of key reforms by augmenting the newly established three-tier coordination mechanism with Sectoral Working Groups and integrating the issues of anti-corruption, digitalization and gender equality across all sectors. The above mentioned reform priorities should be the primary focus for relevant sector working groups at the third tier of coordination to be reported at the level of Strategic Platform for coordination (second tier). Through an Amendment to Government Resolution #153 and relevant regulations, DPs and the GOU will further streamline the process of ITA, and will continue to address ITA management along the principles of transparency, efficiency and digitalization.

Prime Minister Denys Shmyhal and DPs look forward to further strengthening the partnership with Ukraine over the coming year and commit to continued dialogue across all three tiers.

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