The Venice Commission has come to the conclusion that the so-called "Anti-Oligarch law" cannot be applied in its current form and recommends Ukraine to apply a systematic approach, according to the commission's conclusion released on Tuesday.

The commission said a systematic approach to eliminating the factors contributing to oligarchization is typical for most countries.

"Ukraine has however chosen to tackle the destructive influence of oligarchisation through a different 'personal approach', by adopting a Law on Oligarchs. While recognising that in the fight against oligarchic influence there is no one-size-fits-all and that in exceptional, extremely critical situations, for example a situation of state capture, radical solutions – such as some measures of a personal nature – could appear to be justified, as a measure of last resort, on a temporary and exceptional basis. The Law on Oligarchs would have to be designed with full respect for the standards of political pluralism and the rule of law," according to the commission's conclusion.

The commission recommended to postpone the implementation of the "law on oligarchs," as well as to implement a number of recommendations: comprehensive analysis of the existing systemic measures, of their shortcomings in terms of structure, powers and coordination; establishing and implementing an effective competition policy; strengthening the fight against high-level corruption and the prevention of corruption, in line with GRECO’s recommendations and through implementation of the actions foreseen in the State Anti-Corruption Programme adopted in March 2023; increasing the transparency of and accountability in public procurement; reinforcing media pluralism, as well as transparency of media ownership.

The commission also insists on the need to enhancing the implementation of relevant anti-money laundering measures policy, including the transparency of legal persons and arrangements and timely and effective access to accurate up-to-date beneficial ownership information, in line with MONEYVAL and FATF recommendations and improvements of the legal regime regarding politically exposed persons.

In addition, it is recommended to tighten political party and campaign finance rules and existing control mechanisms, amend tax laws, strengthen the independence and effectiveness of the key regulatory and controlling authorities, and regularly assess the impact of such measures.

"In order for the above-mentioned system to function effectively, the reform of the judicial system aimed at ensuring its independence, integrity and impartiality in line with European standards, should be relentlessly pursued," the commission said.