GR Manager in Ukraine: The Next Stage in the Development of Business-Government Relations

Author: Viktor Shcherbina, member of the Ethics Council of the Ukrainian National Lobbyists Association

Ukrainian businesses operate in an environment where regulatory decisions directly impact investment, competitiveness, and companies’ growth opportunities. Tax changes, sector-specific regulations, government support programs, environmental requirements, or the implementation of EU law can affect business models just as much as market conditions.

That is precisely why the role of Government Relations (GR) professionals—or specialists in relations with government agencies—is growing in importance worldwide. For Ukraine, which is preparing for postwar reconstruction, the harmonization of its legislation with that of the European Union, and the reform of public administration, the issue of professionalizing this field is becoming particularly relevant.

The professional standard “Government Relations Specialist,” developed by NALU, proposes the creation of a clear model of professional practice in Ukraine for specialists working at the intersection of business, public policy, and public interests.

Why has this issue become relevant right now?

Ukraine is gradually shifting from a model of ad hoc responses to regulatory changes to a systematic approach to managing regulatory risks. This is part of the process of the state’s institutional development under new historical conditions.

In recent years, Ukrainian businesses have faced an unprecedented volume of regulatory changes. European integration is an additional factor, as the alignment of legislation with EU law is increasingly encompassing virtually all sectors of the economy: from energy and finance to the digital economy, the environment, and the agricultural sector.

Under these circumstances, companies increasingly need specialists who can analyze legislative initiatives, assess regulatory risks, participate in public consultations, formulate the business’s position on new regulatory requirements, ensure constructive dialogue with government agencies, and operate in accordance with anti-corruption and compliance requirements.

It is precisely these functions that form the foundation of the modern profession of a GR manager.

Global Experience: Why Developed Economies Invest in GR

The professionalization of government relations is a global trend.

The European Union maintains a common Transparency Register, which lists more than 17,700 organizations from 140 countries around the world that officially interact with European institutions. Registration is a prerequisite for many forms of official interaction with EU bodies. In 2025 alone, more than 4, 100 new organizations joined the registry, reflecting a growing focus on transparency in lobbying in Brussels.

In the United States, the market is even larger. According to OpenSecrets, in 2024, official lobbying expenditures at the federal level reached a record $4.4 billion, and more than 13,000 registered lobbyists were active in the market. It is particularly telling that the highest spending on government relations occurs in heavily regulated industries. For example, the healthcare and pharmaceutical sector spent over $562 million on lobbying in just one year.

From “Connections” to Regulatory Risk Management

One of the key changes in the modern understanding of a profession is the transformation of the very nature of the work itself.

The traditional view of business-government relations has often been limited to personal contacts or ad hoc solutions to specific problems. In the past, this sphere combined informal lobbying practices with institutional engagement through business associations and civil society representatives. Today, Ukraine is gradually transitioning to a modern model in which, in developed countries, GR increasingly resembles the function of strategic risk management.

Today, large companies use GR to anticipate changes in legislation, protect investments, shape industry policy, assess the economic impact of future regulations, and foster dialogue between the business community and the government.

That is precisely why the professional standard should place significant emphasis on analytics, evidence-based practice, regulatory analysis, and the assessment of the consequences of management decisions.

What benefits will a professional standard bring to a business?

For employers, the introduction of a professional standard offers several important benefits.

First, the market gains a clear understanding of who can be considered a GR professional.

Second, businesses gain a framework for evaluating candidates and building professional teams.

Third, this lays the groundwork for the development of educational programs, professional certification, and continuing education.

The standard should include a separate section on competencies related to integrity, compliance, the prevention of conflicts of interest, the documentation of interactions, and anti-corruption procedures. In essence, this involves implementing in the field of GR the same professional requirements that have long been applied in the legal, auditing, and compliance sectors.

Critical arguments have also been raised during discussions about the prospects for developing a new professional standard. This is only natural, since any innovation requires careful consideration and justification.

“It’s just a new name for existing professions.”

Indeed, certain aspects of a GR specialist’s work are currently handled by lawyers, PR specialists, political scientists, or regulatory policy experts. However, modern Government Relations combines these competencies into a single professional role. That is why, in many developed countries, Public Affairs and Government Relations are viewed as distinct areas of professional practice.

“The profession will strengthen the influence of big business”

This argument is often raised during discussions about mechanisms for representing business interests. At the same time, international practice shows that formalizing engagement procedures can create opportunities not only for large businesses but also for medium-sized businesses, industry associations, professional communities, and civil society organizations. They gain access to more transparent and understandable mechanisms for participating in the formulation of public policy.

“Regulation will create additional red tape”

The professional standard does not impose new regulatory barriers on businesses. Its purpose is to define the competencies and qualification requirements for professionals. In essence, it is about standardizing the profession, not about increasing government oversight.

GR Management and Lobbying: What’s the Difference?

When discussing professional standards, the question often arises: Are GR management and lobbying the same thing? Although these terms are closely related, they are not synonyms.

The simplest explanation is that lobbying is one of the possible tools of GR activities, but it does not encompass the full scope of those activities.

GR (Government Relations) encompasses the full range of an organization’s interactions with state and local government authorities. This includes monitoring legislation, analyzing public policy, assessing regulatory risks, participating in consultations, formulating the organization’s position, engaging with stakeholders, crisis communications, and compliance.

Lobbying is a narrower concept. Its purpose is to influence the content of a specific government decision, regulatory act, or policy by representing and defending the legitimate interests of a particular individual, company, industry, or social group.

In other words, while lobbying answers the question “How can we influence decisions?”, GR addresses the broader question: “How can organizations establish systematic, transparent, and effective engagement with the government?”

A Comparison of GR Management and Lobbying

Why is this distinction important for Ukraine?

In Ukrainian practice, the term “lobbying” is often viewed through the lens of political debates and is frequently associated exclusively with influencing the government. At the same time, modern GR is largely about managing knowledge, expertise, and communication.

For example, if a company analyzes the impact of future environmental regulations on its industry, prepares economic analyses, consults with experts, and participates in public discussions on a draft regulatory act, then most of this work falls specifically under the GR function.

Why is this important for the investment climate?

In its recommendations, the OECD emphasizes that transparent mechanisms for representing interests contribute to better public governance, as they provide government agencies with the necessary data, expertise, and analysis to make balanced decisions. At the same time, a lack of transparency increases the risk of unequal access to the decision-making process and erodes trust in institutions.

For investors, it is not only taxes or the cost of resources that matter, but also the predictability of the regulatory environment. That is why the development of a professional and transparent government relations market can be viewed as one of the factors contributing to Ukraine’s investment attractiveness.

The discussion regarding the professional standard for “Government Relations Professionals” actually addresses a much broader issue than the emergence of a new profession. In fact, the question is what the model of interaction between the government, business, and civil society will look like in the coming decades and whether it will meet current institutional requirements.

Global trends show that as the economy and legislation become more complex, the demand for professionals in the field of government relations is increasing. In the European Union and the United States, this field is developing within the framework of established rules, transparency mechanisms, and professional training systems.

For Ukraine, the professionalization of GR could be not only a step toward developing human capital, but also a key component in shaping a more mature, open, and predictable system for formulating public policy that meets the needs of business, society, and European integration.