Revista
de la
Universidad
del Zulia
Fundada en 1947
por el Dr. Jesús Enrique Lossada
75
ANIVERSARIO
DEPÓSITO LEGAL ZU2020000153
ISSN 0041-8811
E-ISSN 2665-0428
Ciencias
Exactas,
Naturales
y de la Salud
Año 13 N° 37
Mayo - Agosto 2022
Tercera Época
Maracaibo-Venezuela
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Public-Private Partnership in the Security Sector: Updating in the
Conditions of Counteracting the COVID-19 and Armed Aggression
in Eastern Ukraine
Yuliia Mekh *
Iurii Georgiievskyi **
Iryna Ignatchenko ***
Iana Maslova ****
Inesa Kostenko *****
ABSTRACT
The subject under consideration is relevant since there are no definitions or selected forms of
intersection between the public-private sector in the sense of safety and security. It acquires special
significance given unforeseen situations such as Covid-19 in synthesis with hostilities. The purpose
of the study is to identify possible ways to implement the idea of public-private partnership in the
security sector by solving such research problems as highlighting the forms of public-private
partnership in the security sector and characteristics of their application; identification of objects of
a public-private partnership with the security sector; outlining the directions for resolving disputes
arising from public-private partnerships in the security sector. In the implementation of this study,
general and specialized methods of scientific cognition were applied: the system analysis method,
the dialectical method, the formal-logical method, and the structural-functional method, as well as a
number of empirical methods. The results of the research are interesting and useful for Ukrainian
legislators and subjects of public administration.
KEYWORDS: agreement, armed conflicts, pandemic, public administration, public-private
partnership, security measures.
*Department of Administrative Law and Administrative Activities Yaroslav Mudryi National Law University
61023, 4 Dynamivska Street, Kharkiv, Ukraine. ORCID: https://orcid.org/0000-0001-7990-0519. E-mail: yuliia-
mekh@acu-edu.cc
**Scientific Department of Legal Support of Sectoral Innovative Development Scientific Research Institute of
Innovative Development of Legal Support National Academy of Legal Sciences of Ukraine 61024, 77 Pushkinska
Street, Kharkiv, Ukraine. ORCID: https://orcid.org/0000-0002-5685-2603. E-mail: georgiievskyi8236@edu-
knu.com
***Department of Administrative Law Yaroslav Mudryi National Law University 61024, 77 Pushkinska Street,
Kharkiv, Ukraine. ORCID: https://orcid.org/0000-0001-8587-9509. E-mail: ignatchenko8236@neu.com.de
****Department of Administrative and Financial Law National University "Odessa Law Academy" 65009, 23
Fontanska Doroha Str., Odesa, Ukraine. ORCID: https://orcid.org/0000-0002-5654-6964. E-mail:
maslova8236@sci-univ.com
*****Department of Administrative Law and Administrative Activities Yaroslav Mudryi National Law University
61023, 4 Dynamivska Street, Kharkiv, Ukraine. ORCID: https://orcid.org/0000-0002-9725-4642. E-mail:
kostenko8236@edu.cn.ua
Recibido: 08/02/2022 Aceptado: 01/04/2022
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Asociación público-privada en el sector de la seguridad:
actualización en las condiciones de contrarrestar la COVID-19 y la
agresión armada en el Este de Ucrania
RESUMEN
El tema en consideración es relevante ya que no existen definiciones ni formas seleccionadas
de intersección entre el sector público-privado en el sentido de la seguridad. Adquiere
especial trascendencia ante situaciones imprevistas como la COVID-19 en síntesis con las
hostilidades. El propósito del estudio es identificar posibles formas de implementar la idea
de asociación público-privada en el sector de la seguridad resolviendo problemas de
investigación tales como destacar las formas de asociación público-privada en el sector de la
seguridad y las características de su aplicación; identificación de objetos de una asociación
público-privada con el sector de la seguridad; esbozar las direcciones para resolver disputas
que surjan de asociaciones público-privadas en el sector de la seguridad. En la
implementación de este estudio, se aplicaron métodos generales y especializados de
cognición científica: el método de análisis de sistemas, el método dialéctico, el método lógico-
formal y el método estructural-funcional, así como una serie de métodos empíricos. Los
resultados de la investigación son interesantes y útiles para los legisladores ucranianos y los
sujetos de la administración pública.
PALABRAS CLAVE: acuerdo, conflictos armados, pandemia, administración pública,
asociación público-privada, medidas de seguridad.
Introduction
The urgent need to introduce public-private partnership in the security sector in
Ukraine is stipulated by two determining factors: 1) hostilities in Eastern Ukraine as a result
of the armed aggression of the Russian Federation; 2) the application of restrictive measures
to counter the spread of the Covid-19 pandemic. At the same time, a unified normative legal
act regulating the conditions of public-private partnership in the security sector has not been
adopted.
Accordingly, with the beginning of the hostilities in Eastern Ukraine as a result of the
armed aggression of the Russian Federation, almost for the first time since Ukraine’s
independence, the need for effective state security has become acute, requiring proper
equipment of the Armed Forces of Ukraine and other military formations. Achieving this goal
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requires the transformation of the national economy, the concentration of available
resources, and the efforts of each (Bilous-Osin et al., 2020; Slinko & Uvarova, 2019; Boiko et
al., 2020). Involving private entities in resolving these issues through public-private
partnerships is a necessary step that can qualitatively increase the readiness of national
military formations to carry out their tasks, to ensure the rebuff and deterrence of armed
aggression.
The need for public-private partnership in the field of state security in the face of
armed aggression is also justified on the one hand by the need to diversify weapons, military
and special equipment, military machinery and devices, etc., which requires appropriate
investment (scientific, research and financial, etc.), and on the other refusal to import
military equipment, components, resources and technologies from the Russian Federation.
In such conditions, the scope of volunteer activity is expanded, in particular, one of the areas
is to provide assistance to citizens affected by the armed aggression of the Russian Federation
in Donetsk and Luhansk regions (Verkhovna Rada of Ukraine, 2011).
At the same time, the Covid-19 pandemic proved to be a threat to national security,
the effective overcoming of which is currently a priority for the state and society (Kivalov,
2020; Luchenko & Georgiievskyi, 2021; Zyma et al., 2021). In the conditions of the next wave
of Covid-19, the need to concentrate efforts on all resources, both public and private, is
obvious (United Nations General Assembly, 2020). It should be noted that at the beginning
of the Covid-19 pandemic, the interaction between public institutions and private entities
was spontaneous, without proper regulation and legalization, in particular through
charitable assistance in providing humanitarian and volunteer assistance. Such interaction
can be effective and predictable through a public-private partnership, which allows
determining on a contractual basis the priority areas, the implementation of which will take
place in a timely manner (Novikovas et al., 2017). The advantage of public-private
partnership is also the preservation of organizational control by the state and the
improvement of relevant activities. Within the framework of public-private partnership,
activities for the production of necessary goods, medical equipment, production of medical
oxygen, etc. can be carried out.
There is a need to identify possible ways to implement the idea of public-private
partnerships in the security sector. Thus, the study aims to solve the following research
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problems: highlight the forms of public-private partnership in the security sector and
characteristics of their application; identify objects of a public-private partnership with the
security sector; outline the directions for resolving disputes arising from public-private
partnerships in the security sector while fighting against Covid-19 in the areas under
hostility.
1. Scientific approach to the issue of public-private partnership
The sphere of state security is determined by its special significance for the state and
society. The tasks and goals achieved in this area determine the composition and number of
actors involved in their implementation, require the use of all available tools, recognized
world practices. One of these, until recently little-developed areas in Ukraine remained
public-private partnerships, especially in the field of state security. The issue of public-
private partnership in the security sector is relevant, but currently, there is no comprehensive
study of the implementation of this idea. In order to ensure high-quality and dynamic
development of the state, to achieve the strategic goals of state power, to solve urgent
problems, public-private partnership is increasingly used as a form of cooperation between
the state and the private partner (Kozlovskyi et al., 2019). This form of interaction is an
effective way to increase the efficiency of state property. Studying the issue of public-private
partnership, there is a need for a clear interpretation of this model of interaction between
public authorities and the private sector.
Scientific approaches to the understanding of public-private partnership can be
grouped depending on the chosen main feature that characterizes this concept: as a form of
interaction, which is aimed at solving socially significant problems on mutually beneficial
terms (Ivanishkina, 2010; Neykova, 2010); as cooperation of the state and business entities
for the implementation of socially significant projects (Pavlyuk, 2010; Yakunin, 2007), as
formal and informal rules, which to meet the needs of society (Polyakova, 2009). Thus, it is
possible to distinguish the general features of public-private partnership:
1) the participants are public and private entities;
2) the relationship between the parties in the partnership is determined by official
documents (agreements);
3) the relationship has a partnership (equal) nature;
4) partners have common goals in a specific state interest;
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5) to achieve the goals, all types of assets (contributions and resources) of partners are
combined;
6) costs and risks are shared between the partners involved in the use of the results
obtained, under mutual agreements.
Of considerable interest are the conclusions on public-private partnership in certain
areas of public relations (Paoletto, 2000; Lenk
, 2011; Savas, 2000; Torres & Pina, 2001) and
in some regions of Ukraine. The latter concerns, for example, G.O. Komarnitska and I.M.
Komarnytskyy (2018), who described the possibility of realizing the innovative potential of
the development of the mountainous areas of Lviv region using the tools of public-private
partnership.
This article examines for the first time aspects of the introduction of public-private
partnership in the security sector as a systemic tool for democratization processes in
Ukraine. To consistently cover the problem, meaningful blocks are identified that
characterize a homogeneous group of public relations, relating to the definition of the
separation of forms of public-private partnership in the security sector and the
characteristics of their application; identification of objects of a public-private partnership
with the security sector; outlining areas for resolving disputes arising from public-private
partnerships in the security sector. Despite the obvious relevance of practical rather than
formal involvement of private entities in public administration in the security sector, it is
insufficient to study the deep foundations of effective participation of the private sector in
the improvement of the organization of security issues in public administration.
The spread of COVID-19 has become another challenge for regions that are already
suffering from ongoing conflicts. However, local authorities are trying to take measures to
contain the disease even under such conditions. The introduction of public-private
cooperation in the direction of security and the fight against coronavirus infection, subject
to military aggression, have already implied certain difficulties but elicited discussion and
innovations. Since there are neither particular examples nor experiences of such cooperation
in the world, Ukraine is the first to provide a theoretical and practical basis for developing
legal cooperation between the state and the private sector. Quarantine restrictions during
the pandemic have a specific nature, and the authors assume that various kinds of delays are
possible for the partnership, which suspends the process.
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2. Legal determination and forms of public-private partnership
The need to introduce public-private partnerships in the security sector has been
repeatedly demonstrated at the highest state level. For example, the National Security
Strategy of Ukraine “Human Security – Country Security” identifies the main priorities for
the development of public-private partnership (paragraph 6), the creation of an effective
system of security, and resistance of critical infrastructure based on a clear division of
responsibilities between public and private partnership (The President of Ukraine, 2020).
The strategy of development of the defense-industrial complex of Ukraine is one of
the directions of realization of the state military-industrial policy proclaimed to provide
access of economic entities of all forms of ownership to participation in projects on creation
and production of defense products, introduction and realization of public-private
partnership, promoting investments in domestic and foreign markets (The President of
Ukraine, 2021). Practical implementation of this area is possible only through a public-
private partnership. This in turn requires a significant review of the role of public-private
partnerships in the field of security, the development of relevant legislation, and active law
enforcement. A significant step in this direction is the reform of enterprises of the defense-
industrial complex of state ownership, especially the State Concern “Ukroboronprom” by
transforming them into companies, management, and disposal of their property, and aimed
at ensuring defense, economic security, and protection of state interests (Kopytin, 2020).
A similar meaning for the normative determination of public-private partnership in
the security sector have national regulations governing public-private partnership in
Ukraine as a whole, namely: organizational and legal framework for interaction of public
partners with private partners (Verkhovna Rada of Ukraine, 2010; Verkhovna Rada of
Ukraine, 2003a); principles of relations arising in the process of organization and
implementation of economic activity between business entities, as well as between these
entities and other participants in relations in the field of business (Verkhovna Rada of
Ukraine, 2003b); the procedure for consideration of cases arising from the conclusion,
amendment, termination and execution of agreements concluded in the framework of public-
private partnership, including concession agreements, except for disputes which are
considered in other proceedings (Verkhovna Rada of Ukraine, 1991); the mechanism of
preparation and carrying out with application of principles of openness, equality, objectivity,
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and non-discrimination of competition on choosing of the private partner for the realization
of public-private partnership concerning objects of the state, municipal property, and objects
belonging to the Autonomous Republic of Crimea, determination of the winner of the
competition and concluding relevant agreements within the framework of public-private
partnership, except for the concession agreement (Cabinet of Ministers of Ukraine, 2011); a
set of legal, financial and organizational principles for the implementation of projects carried
out on the terms of the concession (Verkhovna Rada of Ukraine, 2019) and so on.
The form of public-private partnership is an external demonstration of cooperation
between the state and the private sector. In the legislation, the public-private partnership
form is defined depending on the contract made for its implementation. So, the following can
be concluded: concession agreement; property management agreement; agreement on joint
activities; other agreements (Verkhovna Rada of Ukraine, 2010). It is also assumed that an
agreement concluded within the framework of a public-private partnership may contain
elements of various agreements (mixed agreement), the terms of which are determined under
the civil legislation of Ukraine. Consequently, in general, it is allowed to combine at the same
time several types of these agreements to implement a public-private partnership, but this
should be provided by current legislation.
The current legislation of Ukraine defines an administrative agreement in paragraph
16 of Part 1 of Article 1 of Code of Administrative Proceedings of Ukraine (Verkhovna Rada
of Ukraine, 2005). The distinguishing features are not exhaustive and do not give a concept
of all its aspects (Tymchyshyn, 2018). When differentiating between an administrative
agreement and agreements concluded within a public-private partnership, the key
characteristic is the subject of the agreement: for administrative agreement – the definition
of rights and obligations in the public sphere to implement public administration functions,
and for agreements which are concluded for the purpose of public-private partnership – this
is not typical (Levchenko et al., 2021). During the implementation of public-private
partnership, the authorized subjects of public administration act as holders of public-
administrative management functions until the determination of the private partner, and
when concluding the relevant agreement and determining its provisions, the parties are
already guided by the provision of private law (civil, economic), which determines the
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equality of the parties a public-private partnership, mutual responsibility and fair and mutual
distribution of risks.
Considering that the most common form of public-private partnership is a concession,
we will consider the features of its application in the field of state security. Concession (from
the Latin concession – permission, assignment) in the theory of law is defined as the transfer
to the management of a particular property for a specified period.
3. Concession in the field of state security: analysis of the Ukrainian legislation
In the current legislation, the concession is defined as a form of public-private
partnership, which provides for the grantor of the concessionaire to the concessionaire the
right to create and /or build (new construction, reconstruction, restoration, overhaul, and
technical re-equipment), and/or management (use, operation, technical maintenance) of the
concession object, and/or provision of socially significant services in the manner and under
the conditions specified in the concession agreement, and also provides for the transfer to the
concessionaire of most of the operational risk, including demand risk and/or supply risk
(Verkhovna Rada of Ukraine, 2019). Thus, a concession is a transfer to a private entity
(concessionaire) of the right to create and/or build, and/or manage the relevant facilities,
which continue to remain in state ownership or ownership of the territorial community. The
characteristics of a concession determine the broad possibilities of its use in various spheres
of the economy and concerning any objects (Britchenko & Saienko, 2017).
An analysis of the international experience of public-private partnership in countries
with different levels of socio-economic development, implemented through the concession
form of public-private partnership, shows that such partnerships are successfully used in
transport (roads, railways, airports, ports, pipeline transport) and social infrastructure
(health, education, entertainment, tourism), housing and communal services (water supply,
electricity, water treatment, gas supply, etc.), in other areas (prisons, defense, military
facilities) (Cherchata, 2020).
In Ukraine, the concession is used mainly in the field of infrastructure. Over the last
few years, seaports (for example, Kherson Sea Commercial Port) have been transferred to
concession, and the work on the preparation of concession projects for other seaports of
Ukraine has been intensified, which corresponds to Ukraine’s National Transport Strategy
until 2030 (Cabinet of Ministers of Ukraine, 2018) and Ukraine’s Seaports Development
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Strategy until 2038 (Cabinet of Ministers of Ukraine, 2013). The Ministry of Infrastructure
(2015) established the Project Office for the Development of Public-Private Partnership to
ensure the rapid and effective development of the public-private partnership mechanism. The
Project Office is responsible for preparing the relevant concession facilities.
In the field of state security, the concession is not used, which is a consequence of both
the generally low level of development of public-private partnership in this area and the
disorganization of the authorized state bodies' activities for the preparation of concession
projects. In addition, it should be noted that the law prohibits the implementation of public-
private partnership in the field of state security. For example, it is established that the object
of concession may not be state property used in the manufacture and repair of all types of
weapons in service with the Armed Forces of Ukraine, other military formations formed
under the law, the Security Service of Ukraine (Verkhovna Rada of Ukraine, 2019).
Thus, the concession as a form of public-private partnership allows attracting
investment, thereby improving the quality and competitiveness of the relevant products in
the short term and significantly improving the effectiveness of public security in the long
term. As for the objects of public-private partnership, this is what the public-private
partnership is aimed at or in relation to. In this case, the object of public-private partnership
must be owned by the state or local community. Objects of public-private partnership are:
existing, in particular reproducible (through reconstruction, restoration, overhaul, and
technical re-equipment) objects that are in state or communal ownership or belong to the
Autonomous Republic of Crimea, or property of companies, 100 percent of actions (shares)
which belongs to the state, territorial community or the Autonomous Republic of Crimea;
created or newly built objects under the agreement concluded within the framework of
public-private partnership (Verkhovna Rada of Ukraine, 2010). This list of objects is typical
and not especially focused on the sphere of state security since specifics of this sphere require
the inclusion of military weapons, equipment, and other objects intended for ensuring state
security.
In turn, in one of the drafts it was proposed to determine under the objects of public-
private partnership in the field of national security and defense of Ukraine:
1) created (acquired) or existing (restoration) objects, including houses, structures
(integral property complexes), social infrastructure, non-residential premises, construction
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in progress, mothballed objects and other real estates), and land plots on which the objects
are located;
2) weapons, military, and special equipment; systems of military machinery,
equipment, and devices, automated systems, dual-use products, and technologies;
3) facilities for production, deployment, modernization, repair, operation or disposal
of weapons, military and special equipment, as well as ensuring the functioning of such
facilities;
4) property rights belonging to the state;
5) objects of intellectual property rights;
6) special software (Markevych, 2015).
At the same time, it is clear that the implementation of public-private partnership in
the field of national security and defense of Ukraine takes into account the peculiarities of
the legal regime of particular objects established by the laws of Ukraine. It should also be
noted that the public-private partnership for some of these facilities will be carried out in
certain forms of public-private partnership.
Regarding the secrecy of public-private partnership in the security sector, the
specifics of public security and the composition of public-private partnership in this area also
determines the extension of the secrecy regime in connection with their classification as a
state secret, which is defined as a type of secret information covering data (for example, in
the field of defense, economics, science and technology, foreign relations, state security, and
law enforcement), the disclosure of which may harm the national security of Ukraine and
which recognized as a state secret and subject to state protection (On State Secret, 1994).
This applies to all stages of a public-private partnership, from the list of facilities being
prepared for a public-private partnership, proposals for a public-private partnership, the
identification of a private partner, and the making of a contract. The secrecy regime inherent
in public-private partnerships in the field of public security also affects the requirements for
private entities involved in public-private partnerships (Yaroshenko et al., 2018).
In addition to the general requirements for private partners, there are also
requirements for ensuring and maintaining the regime of secrecy (state secret). Also, a private
partner in the implementation of public-private partnership in the field of security can be
only legal entities formed under the laws of Ukraine or even founded by citizens of Ukraine.
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For the implementation of public-private partnership in the sphere of state security, joint
ventures, institutions, organizations can also be formed, in the authorized capital of which
property, property rights, and other assets are transferred, which are state property and are
the object of public-private partnership (Markevych, 2015).
The issue of resolving disputes during the implementation of public-private
partnership, including in the field of state security is also unresolved. These are: 1) disputes
over the choice of private partner for the implementation of public-private partnership; 2)
the fulfilment of obligations stipulated by the agreement concluded within the framework of
public-private partnership. Disputes arising from public-private partnership relations in
court are carried out taking into account the provisions of agreements concluded within the
framework of public-private partnership. Thus, the parties to a public-private partnership
agreement are free to choose the dispute settlement mechanism, including mediation, non-
binding expert assessment, national or international commercial or investment arbitration,
including arbitration located abroad (if the founder of a private partner is an enterprise with
foreign financing (Verkhovna Rada of Ukraine, 1996), as well as procedural rules for resolving
disputes (Verkhovna Rada of Ukraine, 2010). In court, disputes arising from the conclusion,
amendment, termination and execution of agreements concluded in the framework of public-
private partnership, including concession agreements are resolved in commercial
proceedings (Verkhovna Rada of Ukraine, 1991).
In the current situation, it is difficult to say how the pandemic has affected
international security in general, especially in Ukraine. Since the coronavirus infection has
not yet ceased to rage, and the hostilities have been going on for several years and increasing
in strength, it is difficult but possible to draw a defined conclusion.
Conclusions
As a result of the study, the authors concluded that there is no normatively determined
procedure for cooperation between public and private entities in the security sector. Public-
private partnership in the field of security is carried out by concluding the same types of
agreements, with the possibility of combining them, at the same time, the specificity inherent
in this area reveals in the specific conditions of each of these types of agreements.
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In order to increase the positive effect of the introduction of new forms of involvement
of private entities in the administration of the security sector, it is necessary to: separate the
administrative agreement as a form of interaction from the agreements that are forms of
public-private partnership (substantiated by the peculiarities of the conclusion and legal
action inherent in administrative agreements, as well as their appeal in court); introduction
of a regime of secrecy regarding public-private partnership in the security sector
(substantiated by the specifics of the security sector as a sphere of public relations, which
should initially be streamlined in order to protect the national security of Ukraine);
comparing the positive effect of the possibility of involving foreign partners in public-private
partnerships in the security sector and preserving the national interests of Ukraine
(substantiated by the increased risk of possible abuse by private entities that are not
residents of Ukraine).
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