A decision by Ukraine's constitutional court to row back on a key anti-corruption law may have repercussions for the country's relationship with the International Monetary Fund (IMF).
This week, Ukraine's constitutional court rejected an anti-corruption law that would have made the illegal enrichment of officials a criminal act, according to a state news agency. And the decision cannot be appealed.
Introducing anti-corruption laws is a key component of the international aid for Ukraine, and crucially was one of the conditions that it had to meet as part of its $17.5 billion bailout package from the IMF.
"Any about-turn in the anti-corruption reform would be a huge blow to Ukraine's relationship with the IMF and other Western partners — indeed, the EU has already expressed their concerns about the latest development," Liza Ermolenko, an emerging Europe economist at Barclays, told CNBC Thursday.
The court ruled that provisions of the article within the country's criminal code failed to comply with the principles of law and the presumption of innocence until proven guilty, according to state news. Critics of the law reportedly said that "the article on illegal enrichment obliges the suspect to prove (the) legitimacy of his revenues' origin, whereas the law places the burden of proving wrongdoing solely on the side of prosecution."