Lobbying as a Tool of Transparent Policy: The New Law and Challenges for Ukraine

On 1 September, the Law of Ukraine «On Lobbying» came into force. This is an important step towards European standards of transparency and accountability of government. The law brings the process by which business and the public influence state decisions into the legal field, creating clear rules for all participants and forming a civilised mechanism of dialogue.

Anna Fedorenko, Director of the Ukrainian Centre for Professional Certification and a partner of our organisation, has prepared a detailed analysis of the key aspects of the new legislation and explained how it may change Ukrainian practice in political decision-making. With the author’s permission, we are also publishing this material on our website.

For a long time in Ukraine, political decisions were made under the influence of informal groups and oligarchs. Lobbying took place in the shadows, often accompanied by corruption risks and opaque agreements, which undermined trust in government and the effectiveness of public administration.

Now the situation is changing: on 1 September, the new Law «On Lobbying» came into force in Ukraine. It brings this process into the legal field, making the influence of business and the public on the authorities open and controlled, and therefore more transparent and closer to European standards.

What is lobbying?

The word “lobby” comes from the English word lobby, meaning “corridor”. In the 19th century in Great Britain and the United States, this was the name given to people who waited in the corridors of parliaments to persuade politicians to support their ideas. Hence the concept of “lobbying” — influencing the decisions of the authorities in someone’s interests.

Today lobbying is defined as follows: it is an activity in which a person or organisation lawfully attempts to influence a state decision.

There are several participants in this process:

• Object: government officials or authorities who make decisions.
• Subject: a law or other document that someone wants to influence.
• Lobbyist: a person or company representing a client’s interests.
• Client: a business or organisation that hires a lobbyist.

In the film «Legally Blonde 2», the main character, Elle Woods, decides to change legislation to protect animals from cosmetics testing. She faces bureaucracy and the interests of large companies, but instead of negotiating “quietly” or bribing someone, Elle officially registers, finds allies in Congress, and publicly advocates for her idea.

Why is this beneficial for Ukraine?

In Ukraine, lobbying is often confused with corruption, since both phenomena influence government decisions. The difference is clear: lobbying is legal and open communication, in which businesses or civil-society organisations can officially promote their interests; corruption is shadow schemes based on bribes, pressure or blackmail.

The new Law «On Lobbying» puts an end to this. It regulates fair interaction between the authorities, business and the public, and defines exactly what falls within the scope of lobbying and what does not.

For example, diplomatic activity, popular initiatives in referendums, the work of the media, or scientific work — these are not lobbying. The law establishes key principles: legality, transparency, accountability, professionalism and ethics. It also introduces a Transparency Register, which will collect information on all subjects of lobbying, making it possible to track who is influencing decision-making and for what purpose.

The advantages of this approach are obvious:

• legality and openness: decision-making becomes transparent and understandable;
• support for business: companies can officially defend their interests;
• less corruption: an honest alternative to “grey schemes” emerges;
• greater trust in government: citizens see a clear mechanism of influence;
• European standards: the law meets EU requirements and international recommendations.

In other words, instead of “grey schemes,” lobbying forms a civilised mechanism of dialogue between government and society.

How does this work in other countries?

Lobbying as an official tool for influencing policy was first established in the United States. Even the Bill of Rights enshrined citizens’ right to petition the government, and as early as 1946 the first Law on the Regulation of Lobbying (Federal Regulation of Lobbying Act) was adopted.

It defined the basic rules: who can be considered a lobbyist, what obligations they have, and what liability arises for violations. In particular, in the US it was established that a person who spends more than 20% of their working time on lobbying activity is required to officially register and regularly report on their activity.

International experience shows that the institution of lobbying has gradually spread to other countries. Following the US example, systems were created by: Germany (1951), Georgia (1998), Lithuania (2001), Poland (2005), North Macedonia (2008), Slovenia (2010), France (2010), Austria (2011).

In different countries, the registration of lobbying activity has a different character: in Germany and France it is voluntary, while in Poland, Lithuania and Georgia it is mandatory. This shows that, despite a shared idea of transparent influence on government, each country adapts the mechanism to its own political and legal context.

At the same time, the scope of lobbying varies around the world. For example, in Canada it covers not only influence on laws but also activity related to obtaining grants or other financial support from the state. In France, lobbyists can influence decisions on public procurement and concession contracts; in Ireland, the drafting of bills as well as the allocation of grants, loans or state contracts. In the United Kingdom, lobbying covers government decisions on any agreements, grants, licences or financial assistance.

Thus, lobbying has become an integral part of democratic processes in many countries of the world. Despite differences in regulation, all of them adhere to one principle — influence on government must take place openly and transparently. For Ukraine, this experience is an important benchmark: by introducing the institution of lobbying, the state is taking a step towards greater transparency, reducing corruption risks, and harmonising its legislation with European standards.

What risks exist?

Since this Law has only recently been introduced, it is difficult to determine the risks that may arise in establishing the institution of lobbying in Ukraine. Time is needed to test it.

However, given the many years of experience with this institution in other countries, there are views on the problems and risks of its implementation:

• Difficulties in maintaining the Transparency Register — possible technical failures, failure to account for all details when entering data, delays in updating information, or difficulties with public access.
• Lack of clearly defined penalties for violating the law — currently the law contains only a general phrase about “holding a lobbying subject liable as established by law,” without specific mechanisms and sanctions.
• Confusion in society — many people continue to perceive lobbying as corruption, which may cause distrust of the process and of state bodies.
• Lack of practical experience — a new institution for Ukraine, so there are not yet clear working algorithms and rules, which may complicate implementation in the initial stage.
• Risk of abuse at the outset — due to the absence of established practices and a clear regulatory framework, there is a possibility of misinterpreting the rules or attempts to use the system for hidden influence.
• Ambiguity of definitions — it is difficult to determine exactly what constitutes lobbying and what is an exception (for example, the activity of the media, scientific work or popular initiatives), which may lead to legal conflicts.

But without a start and practice, this institution will not be able to develop.

Lobbying is not “cunning schemes for the chosen few.” It is a civilised way for business, experts or civil-society organisations to influence government decisions openly and honestly. For Ukraine, this is a chance to simultaneously reduce the level of corruption, increase trust in government, and take a step towards European standards of governance

Now it is important that both the authorities and society learn to use this tool correctly, because the future of transparent policy depends not only on the laws, but also on how we apply them.