Proportionality in countering corruption in Ukraine in the context of war

Timofieieva, Liliia Article Proportionality in countering corruption in Ukraine in the context of war Journal of Illicit Economies and Development (JIED) Provided in Cooperation with: LSE Press, London School of Economics and Political Science (LSE) Suggested Citation: Timofieieva, Liliia (2024) : Proportionality in countering corruption in Ukraine in the context of war, Journal of Illicit Economies and Development (JIED), ISSN 2516-7227, LSE Press, London, Vol. 6, Iss. 2, pp. 73-88, https://doi.org/10.31389/jied.234 This Version is available at: https://hdl.handle.net/10419/320694 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ RESEARCH CORRESPONDING AUTHOR: Liliia Timofieieva Criminal Law Department, National University “Odesa Law Academy”, Ukraine [email protected] KEYWORDS: fraud; criminal organizations; eurointegration; prevention; corruption; post-war period TO CITE THIS ARTICLE: Timofieieva, L. 2025. Proportionality in Countering Corruption in Ukraine in the Context of War. Journal of Illicit Economies and Development, 6(2): pp. 73–88. DOI: https://doi.org/10.31389/ jied.234 Proportionality in Countering Corruption in Ukraine in the Context of War LILIIA TIMOFIEIEVA ABSTRACT Corruption adversely affects all spheres of life, posing a significant threat as an enabler of other crimes. These include terrorism, organized crime, human trafficking, and illegal migration, all of which undermine the European integration process and pose risks not only to Ukraine but also to global security. On 23 June 2022, the European Council issued an opinion on Ukraine’s candidate status. Retaining this status and implementing the Association Agreement require substantial changes to Ukrainian legislation, particularly in criminal law. Key requirements include the actual implementation of the rule of law (of which the principle of proportionality is a core component), enhanced anti-corruption measures that target high-level corruption, greater government transparency, and adherence to anti-money laundering standards as set by the Financial Action Task Force on Money Laundering (FATF). Further, an anti-oligarchic law must be introduced to curb the excessive influence of oligarchs in Ukraine’s economic, political and social spheres. Progress in these areas will be monitored and assessed by the European Commission. Addressing corruption gaps is critical, but such efforts must adhere to criminal law principles, with proportionality being of particular importance. This study focuses on the principle of proportionality in countering corruption during the post-war period, using Odesa as a case study. As a port city with significant transport links to Moldova and Poland, Odesa faces unique challenges. Simplified procedures for shipping humanitarian aid and ammunition, such as bulletproof vests, have created opportunities for criminals to exploit the system, escalating corruption risks. Recent empirical contributions by Ukrainian scholars highlight several aspects of corruption. Driomin (2018) views corruption as a social institution. Dudorov (2022) explored criminal offenses related to public services, abuse of influence, and illicit enrichment. Kolomoyets and Kushnir (2019) examined lifestyle monitoring as an anti-corruption tool, while Melnychuk (2023) studied organized crime in Ukraine during its transition period. Mykhailenko (2017) introduced the proportionality test as a tool for combating corruption, and Khavroniuk (2020) critiqued laws on illicit enrichment (Article 368-2 of the Criminal Code in the previous version) and unjust judgments (Article 375 of the Criminal Code) for violating legal certainty. Tuliakov (2023) discussed the principles of equality, proportionality, and fairness in corruption-related justice, arguing for a distinct regime for such offenses. Despite these advances, countering corruption in alignment with the principle of proportionality remains a critical issue, particularly in light of Ukraine’s EU candidacy. 74Timofieieva Journal of Illicit Economies and Development DOI: 10.31389/jied.234 THE PURPOSE AND OBJECTIVES OF THE ARTICLE The article aims to contribute to strengthening Ukraine’s criminal legislation to ensure the proportionality of responses to corruption-related offenses. To achieve this, the study sets the following objectives: 1. To define the concept of proportionality in countering corruption in the Ukrainian context. 2. To monitor the dynamics of corruption offenses and organized crime involving corruption components under martial law. 3. To develop methods to combat corruption that align with the principle of proportionality. 4. To propose amendments to the Ukrainian Criminal Code to address legislative shortcomings related to corruption. 5. To anticipate the evolution of corruption in the post-war period while emphasizing the principle of proportionality. METHODOLOGY The methodological basis of the article is built upon both general and special methods. Specifically, the dogmatic method clarifies the provisions regarding proportionate countermeasures at both national and international levels. This approach is complemented by an exploration of international legal instruments aimed at combating corruption. The analysis of national and international legislation in this domain is facilitated through the dialectical method. The study further employs dialectical, dogmatic, and system-functional methods to analyze doctrinal contributions from Ukrainian scholars. These methods enable a comprehensive evaluation of existing research on countering corruption and the proportionality of such interventions. The article synthesizes insights from studies conducted during and prior to the full-scale war that began in 2022. To deepen the examination of doctrinal provisions, methods of deduction, analysis, and generalization are applied. Statistical data from Ukraine’s Ministry of Internal Affairs is analyzed and summarized to identify trends in corruption-related offenses between 2022 and 2023, including those involving organized groups. Using the statistical method, the author evaluates official statistics of corruption offenses for 2021, 2022, and 2023. Data from the Unified State Register—of individuals who committed corruption-related offenses between January 1, 2022, and December 31, 2023—is also analyzed. A content analysis method is employed to search for verdicts containing keywords such as ‘corruption-related offenses’ within the Unified State Register of Court Decisions in the Odesa region for the same period. In 2023, the Unified State Register recorded 1,929 entries for criminal offenses, 861 for administrative offenses, 284 for disciplinary offenses, and one case without a specific category. In 2022, the Register documented 1,179 criminal offenses, 1,529 administrative offenses, and 113 disciplinary offenses (Unified State Register, 2024). Further, reports from Ukraine’s Ministry of Internal Affairs were examined to determine trends in corruption offenses across 2021, 2022 and 2023. This analysis included an assessment of case closures, the nature of penalties imposed, grounds for closing criminal proceedings, the number of completed criminal proceedings, as well as the material damage, compensation, and seizure of assets in relation to corruption-related offenses. The analysis of the Prosecutor General’s Office report ‘On the Results of Countering Organized Criminal Groups and Organizations’ for 2021, 2022, and 2023, allowed for a review of the number of criminal offenses committed by organized groups and criminal organizations, including those with corruption ties, criminal proceedings in which the investigation was completed, as well as to determine the percentage of their increase. Additionally, a content analysis of 49 verdicts from the Unified State Register of Court Decisions in 2022 in the Odesa region identified patterns in public service-related offenses. In 2023, this number increased to 94. Broader searches for ‘corruption-related criminal offenses’ revealed 160 verdicts in 2022 and 184 verdicts in 2023. 75Timofieieva Journal of Illicit Economies and Development DOI: 10.31389/jied.234 The article incorporates findings from the I. Kucheriv Democratic Initiative Foundation’s survey ‘Democracy, Security and Social Situation: Public Opinion in Odesa Region in 2023’, which highlighted public distrust in authorities and identified corruption as a major concern (see Table 1, Appendix, Survey. I. Kucheriv “Democratic Initiative” Foundation, 2023). Field research conducted by the Global Initiative Against Transnational Organized Crime (GI-TOC), also informed this study. Its report, ‘Port in a storm Organized crime in Odesa since the Russian invasion’ (2023), details the nexus between organized crime and corruption in Odesa, based on perspectives of law enforcement officials, journalists, and members of the ‘underworld’. The study further benefits from the author’s observations during 15 years of living in Odesa, including their work as a lawyer since 2019. These observations span pre-war and martial law periods and provide firsthand insights into law enforcement, judicial performance, and corruption-related practices. PROPORTIONALITY IN COUNTERING CORRUPTION Corruption is a dangerous phenomenon, not only because of its direct effects but also because it facilitates other crimes, such as those contained in Article 83 of the Lisbon Treaty. Crossborder offenses are frequently intertwined with corruption, making it a critical issue for national and international security. In his doctoral thesis and other scholarly works, Driomin (2018) identifies corruption and organized crime as social institutions. According to Driomin, these practices are so embedded in social structures that they are inseparable from broader societal interactions. While these findings predate the full-scale war, they remain fundamental to understanding the structural integration of corruption into daily life. The speed and scale of corruption-related offenses, compounded by a lack of public recognition of their severity, pose a dual threat to national and international security. The criminalization of corruption-related offenses is mandated by international legal instruments, such as the United Nations Convention against Transnational Organized Crime (UNTOC) of 2000 (Part 1 of Article 8) and UN Convention against Corruption (UNCAC) of 2003 (Article 18). Both conventions require ratifying states to take legislative measures to criminalize corruption-related acts. Ukraine ratified the UNTOC and its supplementary protocols with specific reservations, particularly concerning terminology and definitions of serious offenses. The subsequent amendments of the Ukrainian Criminal Code reflect these international obligations. In addition, Article 369-2 on ‘Abuse of Influence’ of the Criminal Code resulted from the implementation of Article 18 of UNCAC and Article 12 of the Council of Europe Criminal Convention on Corruption. Economic losses resulting from corruption and organized crime in the EU are significant. Such losses range from 218 to 282 billion euros annually (Tuliakov, 2022). It is estimated that corruption alone costs the EU economy 120 billion euros annually (Orhanizovana ta ekonomichna zlochynnist’, 2022). Although equivalent estimates for Ukraine are not available, the economic impact of corruption in the country is likely substantial. The ongoing war complicates anti-corruption efforts due to limited resources and security challenges. Corruption undermines military effectiveness and exacerbates public distrust in government institutions. Furthermore, disproportionate or ineffective responses to corruption magnify the problem, allowing it to become more pervasive. For instance, the influx of foreign aid and humanitarian assistance has created new opportunities for corruption, as existing corruption schemes adapt and new ones emerge to exploit these resources. The economic context also plays a significant role in corruption and may function as an obstacle for promoting transparent and proportionate anti-corruption measures. In the first three months of the full-scale invasion, food prices rose dramatically, and inflation outpaced wage increases. In 2022, wages were not increased. While official statistics for 2023 report a nominal wage increase of thirteen percent, this translates to only six percent in real terms as a result of inflation. Utility prices have also skyrocketed, widening the disparity between wealthy and poor populations. The perception of government inefficiency and lack of transparency in the allocation of taxes, payments, and international aid further fuels distrust and normalizes organized crime as an alternative means of financial gain. 76Timofieieva Journal of Illicit Economies and Development DOI: 10.31389/jied.234 At the same time, a critical question arises: can fundamental rights be sacrificed in the fight against corruption and organized crime? Scholars, such as de Londras and Davies (2010), argue that state actions aimed at ensuring security must adhere to the principles of necessity and proportionality, achieving a balance between security needs and individual rights. Consequently, anti-corruption measures must avoid selective enforcement and demonstration cases, especially in the conditions of martial law. Instead, they should prioritize systematic and transparent strategies that uphold fundamental rights and the principles of proportionality. The European Court of Human Rights (ECHR) frequently applies the proportionality test to assess potential violation of human rights. This test involves three elements: 1. Restrictions on rights must be provided for by national law. 2. Such restrictions must serve a legitimate aim. 3. Interference with rights must adhere to proportionality requirements. Legislation targeting corruption, along with associated prosecutions and judicial practices, must undergo scrutiny through the proportionality test to ensure its relevance, necessity, and alignment with public and private interests. A proportionate response encompasses all subjects of criminal law, including offenders, victims, the state, and the society at large. For the purpose of this study, proportionality in combating corruption is defined as follows: 1. Anti-corruption measures, including criminalization, must be enshrined in a law that is clear and predictable. 2. Such measures must align with legitimate goals, protecting state values and principles without infringing fundamental human rights. 3. The state’s response (whether through punishment, other criminal law measures, or exemption from criminal liability) must correspond to the severity of the offense and take into consideration the offender’s identity and the circumstances surrounding the offense. Responses must also respect fundamental human rights and internationally recognized principles. In the subsequent sections, the proportionality and disproportionality of Ukraine’s responses to corruption will be examined using the elements of the proportionality test outlined above. Special consideration will be given to the challenges of combating corruption during periods of martial law and the implications for Ukraine’s European integration. THE DYNAMICS OF CORRUPTION DURING A FULL-SCALE INVASION The unique characteristics of Odesa, a multicultural port city, influence the nature of crimes, including corruption-related offenses. These specific features must be considered when designing effective anti-corruption interventions. As highlighted in the GI-TOC report, ‘solving problems’ through unofficial channels without drawing attention from the public or law enforcement is a common practice in Odesa’s criminal underworld (Global Initiative Against Transnational Organized Crime, 2023). Based on observations during 15 years of living in Odesa, the city operates under a self-regulated crime model that relies on negotiation and mutual favors. These dynamics normalize corruption: it is no longer perceived as a crime but as a tool of ‘doing business’, which extends to illegal operations. For example, the smuggling of conscripts along the border with Moldova (in proximity to the Tysa, Palanka, and other border crossings) has become a lucrative illegal business (State Border Guard Service of Ukraine, 2023). Cases include men who were transported in the backs of cars, claimed to accompany parents or wives with disabilities, or were falsely registered as humanitarian aid drivers in the ‘Shlyakh’ system of non-governmental organizations (NGOs) and volunteer organizations (Ministry of Internal Affairs, 2023). High-profile cases, such as the misappropriation of millions of hryvnias from Ukrainian grain exports, illustrate the scale of corruption. Over 370 commercial entities were involved in fraudulent schemes to inflate costs and siphon profits through Odesa’s ports (Zubar, 2023). 77Timofieieva Journal of Illicit Economies and Development DOI: 10.31389/jied.234 Similarly, the smuggling of tobacco and counterfeit goods continues to thrive. According to Forbes, Ukrainians consumed approximately 7 billion black-market cigarettes in 2022, costing the national budget UAH 19.1 billion in unpaid excise taxes (Kalashnik and Prasad, 2023). According to the Prosecutor General’s Office, underground caches of counterfeit cigarettes worth UAH 89 million were uncovered in the suburbs of Odesa. During searches, law enforcement officers seized 742,208 packs of cigarettes, 990,300 loose cigarettes, 660 e-cigarettes, 75 kilograms of hookah tobacco, 328 liters of counterfeit alcohol, and equipment for cigarette production (Volkova, 2023). While such practices pre-dated the full-scale invasion, wartime economic disparities have exacerbated corruption risks. Rising prices for basic goods and utilities during the war, combined with stagnating wages, push individuals toward corrupt practices. As pointed out by Kupatadze (2021), demand for cheaper goods, coupled with weak law enforcement capacity and porous borders, perpetuates the illicit tobacco trade and similar crimes. These trends are further fueled by a lack of political will and systemic corruption within law enforcement agencies, as evidenced by ongoing protection rackets and selective enforcement efforts. Furthermore, unequal enforcement and double standards exacerbate the problem, resulting in responses that are disproportionate to the actual damage caused. Such responses are particularly concerning during wartime when resources and public trust are stretched thin. To address this issue, the chairman of the parliamentary financial committee, D. Hetmantsev, proposed holding regional National Police heads personally accountable for the continued operation of illegal cigarette outlets. Hetmantsev criticized the lack of progress in fighting the illegal cigarette market, stating: ‘There are great reports about a bunch of seized cigarettes, opened cases, and “work” done. But the illegal kiosks are still there, the Telegram channels are working. It is clear that every Telegram channel and every kiosk has a name – the name of the law enforcement officer who turns a blind eye (intentionally or not) to the theft of excise from the budget.’ Hetmantsev noted that personal responsibility is a missing component in enforcement (Interfax, 2023). However, as of September 2024, no such accountability measures have been implemented. While several raids were carried out in Odesa, signaling enhanced enforcement, these efforts were temporary. Several outlets were closed, while others raised their prices for counterfeit cigarettes and continued operations. This ongoing activity indirectly confirms collusion between law enforcement and criminal networks. Corruption and organized crime are closely linked, as evidenced by the persistent flow of counterfeit goods. While records indicate cases where individuals were held criminally responsible, many officials involved in such schemes retained their positions. This lack of accountability poses significant risks, including the misuse of budgetary funds, foreign investments, and humanitarian aid. Corrupt practices also extend to humanitarian aid provided by foreign partners. In Odesa, aid has been resold, replaced with expired products, or funneled into organized crime schemes. Rather than serving those in need, these resources have been exploited for criminal profits. One contributing factor is inadequate legislation, particularly within customs regulations. Humanitarian aid is exempt from inspection by customs officers, creating opportunities for misuse. Studies by Melnychuk (2023) shed light on these issues, particularly regarding organized schemes involving humanitarian aid. To address the problem of the smuggling of goods across the customs border under the guise of humanitarian aid, a draft resolution ‘Some issues of humanitarian aid clearance and accounting under martial law’ was introduced on August 29, 2023. According to Ukraine’s Ministry of Social Policy, the resolution aims to digitize the process for importing and tracking humanitarian aid within an automated system. This reform will improve oversight, enabling authorities to monitor both the quantity of aid entering Ukraine and its intended recipients (Ministry of Social Policy of Ukraine, 2023). Public trust in government institutions remains a critical factor in combating corruption. A 2023 survey conducted by the I. Kucheriv Democratic Initiative Foundation found that 81 percent of respondents trusted the Armed Forces of Ukraine and 66 percent trusted the President of Ukraine, while the numbers were significantly lower for territorial recruitment centers 78Timofieieva Journal of Illicit Economies and Development DOI: 10.31389/jied.234 (21 percent) and heads of regional military-civilian administrations (30 percent). Corruption scandals, especially those involving recruitment centers and regional administrations since 2022, have further eroded public confidence. For instance, in May 2023, the head of the Odesa Regional Territorial Recruitment Center faced accusations of illicit enrichment. This case underscores the pressing need for greater transparency and proportional accountability in handling corruption-related offenses. Ukraine’s Ministry of Internal Affairs’ official report on anti-corruption efforts in 2023 reveals that 3,373 individuals committed corruption-related offenses—a 23.8 percent increase compared to 2022 (see Table 2, Appendix, Ministry of Internal Affairs of Ukraine official portal). The percentage of closed cases was 6.37 percent in 2023, slightly lower than the 6.58 percent in 2022. While this trend may indicate improved evidence analysis during investigations, it also underscores issues of transparency. High-profile cases, often accompanied by media coverage of seized money or assets, rarely include follow-up on criminal proceedings. This makes it difficult to assess the proportionality of responses to these offenses. Comparing data from 2022 and 2023, corruption-related offenses increased overall, with most cases involving executives of legal entities or private individuals receiving unlawful benefits from those parties. No cases involving high-ranking civil servants or members of the Parliament were officially recorded in either year, though this absence likely reflects underreporting rather than the absence of offenses. Figure 1 visualizes these findings using statistical tools. It shows a slow but steady upward trend in corruption-related crimes. Additionally, future trends in corruption-related offenses were projected with approximation regression. The forecast predicts 3,198 cases in 2024, 3,268 in 2025, and 3,338 in 2026, with a statistical error margin of ±423.76, considering the limited availability of official data. The most common penalty for corruption-related offenses is fines, which are often viewed negatively by the public. In 2023, deprivation of the right to hold certain positions was imposed as an additional punishment on 67 people, but not as a primary sanction (see Table 3, Appendix). Probation was granted to 15 offenders in 2023, compared to 17 in 2022 and 15 in 2021. The number of exonerations has increased from 31 in 2022 to 46 in 2023, following a downward trend from 72 in 2021. Analyzing grounds for closing criminal proceedings reveals troubling trends (see Table 4, Appendix). In 2023, 215 cases were closed, 146 of which were due to the expiration of the statute of limitations. This pattern has steadily increased since 2021, when 90 cases were closed on similar grounds out of a total of 168 cases. Both objective factors (such as a large number of proceedings and challenges in obtaining evidence) and subjective reasons (such as corruption and inaction by law enforcement) contribute to this issue. Figure 1 Trend of corruption related offenses, 2021–2023. 79Timofieieva Journal of Illicit Economies and Development DOI: 10.31389/jied.234 The Prosecutor General’s Office reports an increase of 26.35 percent in completed investigations in 2023 compared to 2022 (see Table 5, Appendix, Office of the Prosecutor General). Offenses committed as part of an organized group or criminal organization saw an even sharper rise of 58.35 percent during this period. These statistics suggest progress in addressing organized crime, but the lack of accountability for high-ranking officials tempers these results. Despite efforts to prosecute corruption, few cases involve high level officials (see Table 6, Appendix). Data from 2023 indicates a significant percentage of individuals were either exempted from criminal liability or had their cases dismissed. Frequently, initial evidence suggesting grounds for prosecution is later refuted. Greater transparency in tracking such cases through the Unified Register of Pre-trial Investigations could improve accountability. Sociological surveys reveal high tolerance to corruption: for example, such perceived positive aspects of corruption as the ability to accelerate the provision of legal services are highlighted, exacerbating the perception of corruption as a victimless crime. However, from a victimology perspective, corruption-related offenses harm society at large. Every citizen is a victim of these crimes, yet mechanisms for compensating victims remain underdeveloped. For example, while the Civil Code of Ukraine (Article 1177) provides for victim compensation, no dedicated fund exists for this purpose. Establishing such a mechanism could incentivize preventive measures and ensure that recovered funds are used to address societal needs. In 2023, the financial impact of corruption-related offenses increased significantly (see Table 7, Appendix). Material damage was 35.4 percent higher than in 2022, 45.8 percent higher than in 2023, and 65 percent higher than in 2021. Material damage caused by the crimes committed as part of an organized group or criminal organization (representing 8.2 percent of all corruption-related offenses) was 62.2 percent higher in 2023 than in 2022. In 2021, losses were 73 percent higher than in 2022 and by 28.7 percent higher than in 2023. Although compensation for these losses improved—rising 71.3 percent in 2023 compared to 2022—the lack of targeted use of recovered funds diminishes public trust. Allocating these funds toward reducing inflation or stabilizing utility prices or prices of essential goods would provide tangible benefits and demonstrate the proportionality of the government’s response to corruption. The absence of a compensation mechanism hampers efforts to address the broader societal impact of criminal offenses, including corruption. Implementing such a fund would not only provide justice to victims but also resolve the issue of allocating excess budget funds effectively. This would contribute toward resolving a paradoxical situation observed in 2023, when, despite frequent discussions about budget deficits, several Ukrainian cities, including Odesa, reported surplus funds in their local budgets. Public protests sought to redirect these funds to critical wartime needs. Yet, in 2024, the electricity tariff nearly doubled (from UAH 1.68 per 1 kWh to UAH 2.64 per 1 kWh, irrespective of consumption levels), placing additional financial strain on citizens. To address these disparities, local authorities should be obligated to allocate recovered funds transparently and responsibly, prioritizing essential needs such as stabilizing utility costs. Decentralization, alongside clear accountability measures, could play a critical role in ensuring these funds are used effectively, fostering a sense of responsibility among local governments and enhancing public trust in their administration. CORRUPTION-RELATED CASES As expressed in the note to Article 45 of the Criminal Code of Ukraine, corruption-related criminal offenses encompass crimes committed through abuse of office under Articles 191, 262, 308, 312, 313, 320, 357, and 410. Additionally, they include offenses outlined in Articles 210, 354, 364, 364-1, 365-2, and 368-369-2 of the Criminal Code of Ukraine. Corruption-related offenses often serve as a backdrop to broader criminal activity, significantly influencing general and organized crime trends. For instance, a review of the Unified State Register of Court Decisions from February 22, 2022 to September 12, 2024, revealed 457 verdicts associated with corruption-related offenses in the Odesa region. Of these, 28 pertained to ‘criminal offenses in the field of public service and professional activities related to the provision of public services’. Notably, 12 of these cases occurred before 2022 (including one case under Article 367, three sentences under Article 368, three sentences under Article 369, 80Timofieieva Journal of Illicit Economies and Development DOI: 10.31389/jied.234 and nine sentences under Article 369-2 of the Criminal Code of Ukraine, according to Law No. 263-IX of 31.10.2019). Among these cases, fines were the most frequently imposed penalty (in 15 cases), with imprisonment applied in only one case, underscoring the limited use of more severe sanctions. The enforcement of martial law provisions has seen a significant number of cases linked to corruption schemes involving conscription evasion and mobilization violations. For instance, in March 2022 and throughout 2023, an inspector of enlistment records accepted illegal benefits, ranging from US $2,000 to $3,000, to influence decisions by military medical commissions regarding exemptions from military service. These actions resulted in fines under Article 369-2 of the Criminal Code of Ukraine (the verdict by the Saratskyi District Court of Odesa Region of 20.03.2024. Case No. 513/398/24). Similar fines were imposed in other cases (see the verdict by the Prymorskyi District Court of Odesa of 10.11.2023, Case No. 522/20913/23). Corruption among military personnel is also widespread, highlighting a systemic vulnerability within the armed forces. In one case, one military officer offered to prolong a serviceman’s leave in exchange for monetary compensation. The serviceman was sentenced under Part 1 of Article 368 of the Criminal Code of Ukraine to four months of arrest with detention in the guardhouse (sentence by the Kominternivskyi District Court of Odesa Region of 06.02.2024. Case No. 504/63/24). Additional cases demonstrate the prevalence of illicit payments in the military. For instance, some offenses involved transferring personnel between units for a ‘fee’ (sentence by the Sovorovskyi District Court of Odesa. Case No. 523/13361/24). Another notable case involved a unit commander influencing the Security Service of Ukraine to bypass in-depth verification processes for a subordinate (sentence by the Sovorovskyi District Court of Odesa of 22.04.2024. Case No. 523/6166/24). In both instances, fines were imposed as penalties. However, given the hierarchical and closed nature of the military system, there is speculation that these offenses might have been coordinated with higher-ranking officials, suggesting a structured network for obtaining unlawful benefits. This pattern of leniency is further reflected in cases where fines are imposed broadly for corruption offenses. For instance, in May 2024, the Kominternivskyi District Court of Odesa Oblast convicted the head of a village council in the Odesa region for soliciting a 10 percent kickback from a contractor working on project to repair a school shelter, worth UAH 985,943.86. The official’s actions were categorized as under Article 369-2 of the Criminal Code of Ukraine, resulting in a plea agreement and a fine (the verdict by the Kominternivskyi District Court of Odesa Region of 22.05.2024. Case No. 504/4953/23). This incident underscores the challenges businesses face when operating in a legal yet heavily bureaucratic corruption-prone environment. Entrepreneurs often encounter demands for bribes at various stages, from tender procurement to permit approvals. Simplifying and standardizing these processes could alleviate corruption risks and bolster economic activity. Survey data, presented in Table 8 (Appendix), underscores the urgency of these measures. According to respondents in the Odesa region, corruption is the leading obstacle to business activity. State support for businesses should be tangible and targeted, addressing these systemic barriers to create a fair, competitive landscape. Despite the wartime context, protection rackets targeting entrepreneurs remain pervasive. In some cases, more severe penalties than recommended by prosecution were imposed on individuals convicted for extorting monthly payments to allow uninterrupted trade and parking operations, citing the officials’ betrayal of public trust and systematic corruption (the verdict by the Malynovskyi District Court of Odesa of May 31, 2024. Case No. 521/4649/24). Such examples highlight the judiciary’s occasional acknowledgment of the societal damage caused by such offenses. However, imprisonment remains rare, and sentences, such as two years of incarceration for systematic offenses, appear disproportionately mild. Cases involving misappropriation and embezzlement of funds through abuse of office further reveal systemic issues. In one case, an official from the Department of Labor and Social Policy was convicted for falsifying applications for social assistance between 2013 and 2017, leading to state budget losses of UAH 66,623.86. 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The verdict by the Saratskyi District Court of Odesa Region of March 20th, 2024. Case number 513/398/24. Court proceedings register number 1-кп/513/86/24. Available at: https://reyestr.court.gov.ua/ Review/117782874. 88Timofieieva Journal of Illicit Economies and Development DOI: 10.31389/jied.234 TO CITE THIS ARTICLE: Timofieieva, L. 2025. Proportionality in Countering Corruption in Ukraine in the Context of War. Journal of Illicit Economies and Development, 6(2): pp. 73–88. DOI: https://doi.org/10.31389/ jied.234 Submitted: 26 November 2023 Accepted: 03 April 2025 Published: 24 June 2025 COPYRIGHT: © 2025 The Author(s). This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC-BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. See http://creativecommons.org/ licenses/by/4.0/. 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