After scandal delays, Tsyvinskyy appointed to lead Economic Security Bureau of Ukraine. Why it matters

The winner of the competition for the position of Head of the Economic Security Bureau, Oleksandr Tsyvinskyy, was appointed – but with a delay. The Cabinet made the decision after the deadline of July 31 had already passed, a deadline that was crucial for Ukraine to receive the next tranche from the IMF.

Earlier, Oleksandr Tsyvinskyy met with Prime Minister Yuliia Svyrydenko, and they agreed that he would undergo a polygraph test. Although the law does not require such an additional check, the Prime Minister stated that it “eliminates any room for manipulation and allows us to move forward.”

On Tuesday, August 5, Oleksandr Tsyvinskyy successfully passed the polygraph test. This was reported by MP Yaroslav Zhelezniak from the “Holos” party.

And finally, on August 6, the government made the decision to appoint Tsyvinskyi as Director of the Economic Security Bureau of Ukraine.

“After the decision of the selection commission, all necessary checks, and the polygraph—there are no objections to his candidacy,” said Prime Minister Yuliia Svyrydenko.

The head of the government also noted that she expects the Bureau’s work to be renewed, the institution to be strengthened, and trust to be built between the Bureau and Ukrainian entrepreneurs.

“It is important that economic relations in Ukraine are not distorted by shadow schemes and that businesses can count on respect from the state,” Svyrydenko added.

On August 6, a meeting was held during which the government appointed Oleksandr Tsyvinskyy as Director of the Economic Security Bureau (ESB).

Why the Government Rejected Tsyvinskyy’s Candidacy

On June 24, NABU detective Oleksandr Tsyvinskyy won the competition for the position of Head of the Economic Security Bureau, having led several high-profile investigations, including the case against Serhiy Pashynskyi and the “Clean City” operation within the Kyiv City State Administration.

Despite the decision of the independent selection commission and the government’s obligation to appoint the winner, the Cabinet did not support Tsyvinskyy’s candidacy. The reason cited was a security assessment by the Security Service of Ukraine (SBU), particularly concerning family ties with Russian citizens.

Tsyvinskyy himself stated that he had undergone all necessary checks over the past 10 years and called the decision unlawful. On July 31, he announced on his Facebook page that the SBU had officially confirmed there were no grounds to deny his appointment as Director of the Economic Security Bureau of Ukraine.

During the protests in support of the independence of NABU and the SAPO, Ukrainians also demanded the appointment of a director for the Economic Security Bureau (ESB).

Filling the position of ESB director by July 31 was a condition for continuing financial assistance from the International Monetary Fund under a four-year, $15.6 billion program launched in 2023.

Political insiders told BBC Ukraine they are confident the IMF will unblock the next tranche following the appointment of the ESB director.

At the same time, the reform of the Economic Security Bureau is part of Ukraine’s commitments within the EU integration process.

Specifically, the EU Enlargement Report for 2024 highlights the need for transparent implementation of the ESB law, including a merit- and integrity-based selection process.

What’s Next

One of the authors of the law to reboot the Economic Security Bureau was MP Yaroslav Zhelezniak from the “Holos” party. On his social media, the politician emphasized that the appointment of the ESB director was an important step—but not the final one.

According to the law on the Economic Security Bureau, within 18 months after the appointment of the director, an evaluation (attestation) of ESB employees must take place—excluding those hired through a competitive process. Refusing to undergo attestation is grounds for dismissal.

The evaluation will be conducted in two stages: first, the leadership of the central office and regional branches must be re-evaluated, followed later by all other ESB employees.

To carry out the attestation and recruit new staff, Oleksandr Tsyvinskyy must form two commissions.

Each commission must consist of 12 members: half of them are appointed by the director of the Bureau, while the other half must include representatives of business, civil society, and experts nominated by international and foreign organizations via embassies.

What is the Economic Security Bureau (ESB)?

The Economic Security Bureau is theoretically meant to work for Ukraine’s economic security and to promote its investment attractiveness. Established in 2021, it became the sole specialized agency investigating economic crimes. In practice, the ESB replaced the tax police and economic units within the Security Service of Ukraine (SBU) and the National Police.

The purpose of creating the ESB was to reduce pressure on businesses and to monitor the use of international aid. This agency was intended to be independent of political influence.

However, from the very beginning, the concept behind the ESB’s creation did not work as intended.

In 2021, the first competition was held to select the head of the ESB. At that time, the selection commission was headed by Timofiy Milovanov, adviser to the Head of the Office of the President. The competition ended in scandal: several independent candidates were not allowed to participate, and experts and Western partners of Ukraine doubted the independence of the appointed director.

Western partners of Ukraine began to speak about the inefficiency of the ESB reform and demanded Kyiv conduct an open competition with decisive participation of Western experts, similar to the selection of heads for NABU and SAPO.

Ultimately, in order to receive Western aid, the authorities agreed to reform the ESB and introduced a new procedure for selecting its director.

EMPR