On air and behind the scenes at Shuster LIVE: What's next for Ukraine's IT industry?
Since the seizure of NIC.UA's servers in April, the problem of government pressure on IT companies has become a nationwide one. Under these circumstances, it's hard to believepromo video, which promotes the country's investment attractiveness. This video kicked off a Shuster LIVE broadcast about problems in Ukraine's IT sector. One of the program's guests was NIC.UA Director Andriy Khvetkevich. In this article, we share his impressions of the program and express hope that the Ukrainian authorities have heard about the problem—if not in the studio, then at least on television.
Sometimes the most interesting thing about a political show is what's left unsaid and what happens off-air. One of the most enjoyable experiences of participating in the program was Shuster's professional team, who, in just three days, were able to grasp the situation, ask the right questions of the guests, and craft a well-written program. Kudos to them for that.
The program states that over the past six months, more than 10 IT companies have suffered from pressure from government agencies. According to our data, another 40 companies have not reported this. Some entrepreneurs are afraid of publicity, afraid of damaging their image, and are trying to "solve" the problem quietly. Had we remained silent in April, even more IT companies would have likely suffered.
Possible reasons for what is happening
Why is this happening? Lack of understanding on the part of law enforcement agencies and a lack of dialogue are just one reason. For example, representatives from the Ministry of Internal Affairs, the Security Service of Ukraine, and the tax service were invited to Shuster's studio. Ultimately, only MP Anton Gerashchenko showed up. According to Yanika Merilo (Executive Director of the Ukrainian Venture Capital Association), the government is doing nothing to change the situation because it either cannot control law enforcement or is uninterested in doing so.
Another possible motive is an attempt to exert pressure on the entire market. Unfortunately, this can only be speculated about, as no logical or understandable explanation has yet been provided by government agencies. Oleksandr Olshansky, speaking on Shuster LIVE, put it this way: "What happened at your place (NIC.UA) wasn't a search. It was robbery." He explains that if it had been a search, they should have at least explained what they were looking for. In reality, however, the judge simply did his job poorly.In the decision to seize the equipmentNIC.UAIt is written that the websites that the SBU wanted to "shut down" are located outside of Ukraine. Why the judge allowed the seizure of equipment that is unrelated to the case remains unclear to us.Why are judges doing their jobs so poorly in Ukraine? It's nothing less than state racketeering. "Nothing has changed since 2013," said Andrey Khorsev, director of 908, which recently relocated its entire staff to Poland.
What will this lead to?
Just 15 years ago, the IT industry in Ukraine was nonexistent. But by 2020, it could become the second-largest sector of the economy. Today, Ukraine is the third-largest exporter of IT services in the world. Ukraine has many promising startups and startups that have already established themselves. This is not only an economic sector, it is also the foundation of information security, the future of a new country. Ukraine is a country of IT professionals, and it must remain so.
But what do we see as a result? Companies that could truly become a pillar of the Ukrainian economy, whose employees love their country, are now forced to leave. Investments that could have come to Ukraine will be lost. At the same time, we believe the situation can be corrected. The problem can be solved fundamentally—by completely rebooting law enforcement agencies, banning searches and equipment seizures not just on paper, but in practice.
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