Update on drilling platform scam

'Dzerkalo Tyzhnya' is taking Minister of Energy Boyko to court over his allegations that DzT's articles on the purchase of a drilling platform at $150 million over market price via shady intermediaries, were "100%" planted in order to discredit him. [See previous two blogs]

DzT now claim President Yanukovych has requested the Security Service [SBU] investigate whether state company Chornomornaftohaz had indeed purchased the platform for $400 million dollars, $150 million over the proper price, and if so, who was behind the scheme.

Chornomornaftohaz have apparently already paid 80% advance 'up front' [presumably to the highly suspicious intermediary British 'name-plate' company - Highway Investment Processing LLP].

LEvko says only an untouchable 'top banana' could sanction such a huge scam. But you can buy a 'big roof' for $150 million..and it helps if the head of the SBU is one of Boyko's close business associates.

Some observers claim: "the intensified wave of high-level corruption since Yanukovich came to power last year is essentially a final fight over the spoils as part of a prelude to a new period of Ukraine making a concerted effort to deepen its relationship with the EU. This in turn will lead to enhanced domestic reform, a clampdown on corruption, and an unequivocal return to the path of democratization."

LEvko says kleptomania is a serious, incurable epidemic disease frequently observed amongst Ukraine's elites. Sufferers are driven by a creed of 'do unto others before others do unto you..' To suggest that closer ties with Europe will cure them is merely wishful thinking...

The story of Boyko's oil platform will run and run in the non official media - as will the story surrounding the scandalous 'sky's-the-limit' Mezhyhirya palace, which Yanukovych has built for himself, and about which I have written many postings over the last few years.

Exactly one year ago, in an off-the-cuff but on the record remark when he was being queried by journalists , Yanukovych offered them an invitation to visit the place. But soon after, the offer was postponed indefinitely.

Tomorrow the 'Stop Tsenzuri' journalists association were to picket its entrance and demand the president delivers on his offer, but permission to do so has been denied by the local village mayor, and by the Kyiv regional administrative court.

Reasons given? The demo would cause an obstruction - even though only 30 journalists were to attend - and the road outside Mezhyhirya is very wide and carries no through-traffic. The demo would, according to the presiding judge, apparently also violate Yanukovych's human right to a personal life, and his right to rest during his leisure time. More, including videos, here on this.

Yanukovych should look at the countless demonstrations outside the White House, 10 Downing St. etc. etc. over the years...and stop behaving like a pathetic petty tin-pot dictator..

This story will 'run and run' too..and journalists have an absolute right to keep on digging...

Boyko threatens journalists over drilling rig

Energy Minister Yuriy Boyko claims the recent article in 'Dzerkalo Tyzhnya' about "Chornomornaftohaz's" scandalous $400 million purchase of a jackup drilling rig [see previous blog] was "zakazukha -100%""- ordered and published in order to discredit him.

He has requested the Ukrainian Security Service [SBU] investigate who the 'shit-stirrers' are and suggests that the article was ordered in bad faith to disrupt the dates of commencement of production of oil and gas by Ukraine on the Black Sea shelf.

Boyko did not deny the installation could have cost $ 250 million, but claimed this did not include "additional costs".

"In fact the cost of installation may be 250 million, but that does not include the cost of any rescue helicopters, or ships, and this is extra money," he said.

"On the one hand, 400 million [paid to a 'name-plate' shell company with registered offices at a small bathroom and kitchen shop..LEvko], on the another 250, but they forgot to mention all the spare parts and accessories ... I have to conclude that this is "zakazuha". Nobody looked at the details, simply [everything was done] to create a scandal .." said Boyko.

LEvko wants to know why did he not provide any details where the additional $150 million went?

Why did he give a company whose offices lie between 'Tony's Italian and North Indian Cuisine Cafe', 'Chillies Take-Away', and 'Tattoo-U' tattoo parlour, $400 million?

Why was this company, who obviously now supply helicopters and ships, have a website written by Borat?

Why are the guys behind the two sole companies who submitted tenders linked?

Why was the drilling platform not purchased direct from SDRL - Seadrill? Is it because, in their own words, they endeavour to adhere to "stringent ethical requirements and the highest standards of corporate governance"? I.e. no chance of kickbacks?

By threatening 'DzT' with an SBU investigation over a perfectly sound piece of investigative journalism Boyko is merely providing more evidence of press harassment by the ruling authorities. His response sounds as phony as the 'copy' on the 'name-plate' company's website..

p.s. Boyko used this outfit to register it. They share the same premises as the plumbers..

Fuel and Energy minister linked to drilling rig scam?

On April 1 this year minister of fuel and energy Yuriy Boyko appeared on on the 'Velyka Polityka' tv programme. He announced: "Today we have purchased a most up-to-date drilling platform from Singapore. I have in mind 'Naftohaz Ukrainy'".

The current 'Dzerkalo Tyzhnya' exposes a massive scam surrounding its purchase. The drilling rig was bought for $ 400 million, supposedly via competitive tender, by the state company 'ChornomorNaftogaz' . However, only two companies - the New Zealand Falcona Systems Ltd, and the Cardiff UK-based Highway Investment Processing LLP submitted tenders.

The initial suppliers of the rig, the Norwegian SDRL-Seadrill, received almost $250 million for the rig, so the winners of the tendering process, Highway Investment Processing LLP, took a mind-numbing $ 150 million 'cut' on the deal.

Strangely, the images of the rig in question on the latter's website, are entitled 'tovar001' and 'tovar002', which means 'goods' or 'article of trade' in Ukrainian and Russian.The website's designers and owners are registered in Kyiv, and its name is also registered in Ukraine. The website, written in appalling sloppy English [almost certainly- google-translated -*see below] was set up two weeks before the 'winner' of the tender was announced.

Detective work by 'DzT' provides prima facie evidence that the two companies submitting tenders are linked - the bidding was, dare we say, "rigged"? The heads of the companies, Erik Vanahels and Stan Gorin were named in the US 'Trout Cacheris' report investigating alleged 'dodgy business' in Yulia Tymoshenko's goverment [page 151 of the report]

And, no surprise at all, Highway Investment Processing LLP is merely a 'name plate company' behind which are concealed two off-shore companies registered in the British Virgin Islands.

Highway Investment Processing LLP's registered address is 82 Whitchurch Road, Cardiff, CF14 3LX. A few minutes on Google street view shows this to be a nondescript street with small nondescript shops, in a distinctly average neighbourhood - hardly the location for a business trading in hundreds of millions. Number 82 is a small bathroom and kitchen installation company.

What LEvko finds amazing is how little effort the organisers of this scheme have made to cover their tracks..what arrogance..what sh*tbags..what two-bit shysters..

Meanwhile former Interior minister Yuriy Lutsenko has been 'banged up' in prison over half a year accused of overpaying his driver...[The current Prosecutor-General, in a recent tv interview added that former minister of the interior Lutsenko was detained after he had sent indecent written comments to his successor...he had been out on parole prior to this..]

*"e.g. "We organizes bizness on the sale of the borings settings and supplying with all necessary for high-quality research bottom exterminating. «HIGHWAY INVESTMENT PROCESSING LLP» is a global contractor, with the strong local being in strategic and appearing areas as for example Western Africa, North Africa, FSU, Central Asia, Middle East, and South East Asia."!?!?! - This is the company Yuriy Boyko paid $400 million ?! - Was this crap written by Borat?

EU Commissioners "very concerned" about Lutsenko

Click on image to read letter..

Tymoshenko's hubby

Yesterday Yulia Tymoshenko's husband Oleksandr, looking as if he had just climbed down from a prison roof, appeared outside the Prosecutor-General's office when it seemed his wife was about to be detained.

The normally camera-shy Oleksandr was wearing a $35K watch, and a $500 tee shirt - I have one that looks just the same - I wash my small Nissan with it every Sunday morning..

With a face like that it's dangerous to hang around the P-G's office. He'd get 6 months for looks alone..

Imagine if Tymoshenko had become president...

Danish Helsinki Committee on Lutsenko/Korniychuk

A 13 page preliminary report by the Danish Helsinki Committee for Human Rights , in English, on the trials against former Minister of Interior Yurij Lutsenko and former First Deputy Minister of Justice Yevhen Korniychuk, is available here

It clearly highlights the massive shortcomings in the Ukrainian legal system and the enormous shake-out that needs to take place in order that it can meet the commitments and obligations that it undertook when it joined the Council of Europe.

One would imagine that with such a high profile case being closely watched by outside observers, Ukrainian law enforcement agencies and judiciary would pay particular attention to ensure legal norms were strictly adhered to. But this report exposes their incompetence, sloppiness and indifference to the views of others.

Back-pedalling over Lutsenko?

Today former minister of Internal Affairs Yuriy Lutsenko appeared in court but his appeals to be released on bail were denied, and he is back behind bars again.

He has, however, ended his month-long hunger strike.

Deputy prime minister Boris Kolesnikov, who it is commonly believed to behind Lutsenko's arrest in revenge for Lutsenko's brief imprisonment of Kolesnikov just over six years ago, today sounded a conciliatory note: "I'm sure if [his] lawyers analyse in depth the crimes of which he is accused, he can achieve a positive outcome for himself. At the moment, in essence, no one is actually saying anything. Everyone [just] talks about politics. In any case I hope he will defend himself with dignity."

There may be reasons why the maltreatment of Lutensko may be now tempered.

It looks as if "all those who played a role" in the arrest and death in custody in 2009 of the prominent Russian lawyer Sergei Magnitsky, and in the alleged cover up of the corruption he exposed, will pay a price...About one hundred of them, Russian prosecutors, judges and law enforcers, may be subjects of visa and financial sanctions in the USA. [check out link for more info]

The European Court of Human Rights are looking into Lutsenko's case too and have asked the Ukrainian authorities to explain the circumstances surrounding his arrest and detention. Two European ambassadors reportedly attended today's court hearing and Lutsenko's treatment is being closely observed by high-ranking European Helsinki committee observers. Yulia Tymoshenko, who was also present, later met with other European ambassadors.

Magnitsky died from from pancreatitis and heart failure while in detention in jail - Lutsenko's hunger strike has caused him to suffer similar ailments. He is due in court at the end of the week.

Thugs in parliament

The depths to which Ukrainian so-called 'politicians' regularly descend never fails to astound me, even after many years observing their behaviour.

Today, during a plenary session, the 1st deputy speaker of Ukraine's parliament, Adam Martynyuk, assaulted and attempted to strangle parliamentary deputy Oleh Lyashko. [Check out video here ]

The maverick Lyashko apparently had called Martynyuk "a pharisee".

Will the deputy speaker be disciplined? Are you kidding?

Martynyuk and his ilk wear swanky Italian suits and drive around in the classiest of automobiles. They live in the most exclusive dachas around Kyiv procured by the most devious means...and yet behave like hoodlums..

Quite disgusting and macabre....

What really happened on Victory day in Lviv

A good 'Global Voices' report on recent Day of Victory clashes in Lviv, here.

After the Soviets annexed/liberated Western Ukraine in Autumn 1939, many hundreds of thousands of Poles and Ukrainians [including members of your blogger's family] were deported to Siberia and elsewhere, or were destroyed in the most terrible ways. However, a great number of Western Ukrainians [including other close members of your blogger's family] served loyally in the Soviet armed forces and made an important contribution in the defeat of Hitler's Germany, of which their families are proud. A lesser number may have joined Ukrainian Insurgents or volunteered for the SS Halychyna divisions.

Such a multi-strand narrative is common amongst the current population of this part of Ukraine. As a result, events such as those described in the 'Global Voices' link above have not occurred before to any significant degree. WW2 memorials are invariably well maintained and regularly adorned with flowers, and local veterans have always been free to parade in their Soviet regalia on Victory Day in Western Ukraine without being bothered.

As 'Global Voices' points out, the silent majority Ukrainians and Russians in Lviv have little time for the new big political game being played out by political technologists in Moscow and Kyiv...

Are ruling politicians in Kyiv wise enough and smart enough to deal with this kind of provocation? Sadly, I fear not - it's worse, because they helped set it up..

John Demjanjuk: The Last Nazi

"Funny thing is, he was never a Nazi, nor Ivan the Terrible, nor even German. So why now is he standing trial in Munich as accessory to 27,900 Nazi murders? Is this one last blow struck for justice for the Holocaust? Or is it a farce?"

LEvko says ignore the pompous editorials - and read more of last year's excellent extended 'Esquire' article, by Scott Raab, here

Ukraine runs into reversals [PBS video]

Watch this PBS video, with brief interview of several 'big-shots' here

"Pain, but no grain"

Good 'write-up' on the shady grain market in Ukraine by Anna Babinets here

"The Ukrainian Minister for Agrarian Policy Mykola Prysyazhnyuk drives a Maserati Quattroporte and makes no secret of the fact. This Italian car costs about 260,000 USD. The ministerial salary is about 2,000 USD per month." Very patriotic - the Maserati trident badge is a good selling point...

Yanukovych - a man of the oligarchs?

Check out this very good analysis from Olga Shumylo-Tapiola of the Carnegie Endowment for International piece, entitled: "Viktor Yanukovych - a man of the oligarchs", here

"Perceptions of Yanukovych vary. He is alternately seen as a tyrant-in-the-making or an effective strongman, a weak personality controlled by oligarchs or a politician trying to rise above them, a pro-Russian president or one afraid of a Russian takeover. The simple truth is that Yanukovych is neither one nor the other. While he is not ideological—and doesn’t have an evil plan to subvert Ukrainian democracy and turn the country into a police state—he also doesn’t seem to want to improve the lives of average Ukrainians.

His goal appears to be to create a system that will allow him and his network of oligarchs to gain and consolidate control over Ukraine and its assets, benefitting from them without external interference.

Staying in power is a matter of survival for Yanukovych and his entourage. They will do everything to establish their control over the different branches of government, putting their people in the right places, and silencing those who speak out against them."

Right on...

'Guardian' on Akhmetov's new London apartment..on a busy main road...

From Saturday's 'Guardian'

"Poor old Rinat Akhmetov. He coughs up £136m for the world's most expensive apartment, on a busy road in central London, then has to find another £60m for carpets and curtains. The Ukrainian billionaire has purchased two flats in the 1 Hyde Park development and will knock them into one 25,000 sq ft pad. The refit will cost another £60m, or so we're told. Perhaps the cutlery tray will be lined with a Persian rug.

Our Peter Beardsley-lookalike, listed by Forbes magazine as "self-made" (it seems he made lots of ties with the country's first post-Soviet prime minister), spends much of his time back in Donetsk, from where he runs a vast conglomerate of steel and mining businesses.

So we thought we'd help out a bit with the refit, and popped along to Peter Jones, down the road on Sloane Square. We looked for the most expensive everything. The priciest sofa; the most luxurious bed; the most absurdly priced pepper pot, that sort of thing.

We found a bedsheet for £160. A blender for £439. A fridge for £12,500. Yep, that's right, there are people, a few ice cubes short of a full tray, who will spend £12,500 on a fridge. But even after scouring the store, our work experience person reckoned she'd struggle to spend a hundred grand.

That left us with £59.9m burning a hole in our pocket, so we headed off to Harrods, perhaps more suitable for your average oligarch. It found us a bathtub, sculpted from flawless white rock crystal quarried in the Amazon and, hey, it's only £500,000. Now we're talking, we thought. But even Harrods admitted it might struggle to fit out a flat and spend £60m.

In Donetsk, the locals might not quite see the funny side. Ukraine is agriculturally rich, but its people are dirt poor. Male life expectancy is just 62. Its economy contracted 15% in 2009, among the worst performances in the world. GDP per head is just £1,485. Put it another way, the cost of that one apartment off Hyde Park represents the annual income of 135,000 Ukrainians. Still, I'm sure Rinat earned every penny of that "self-made" fortune."

Crumbs from the table

Just opened the 'Leviy Bereg' site and saw these two stories on the home page:

"Akhmetov buys penthouse in London for £136 million"

and

"Akhmetov will give $1 million for sarcophagous above Chernobyl atomic energy plant"

According to the British 'Telegraph' newspaper, "Mr Akhmetov, whose wealth is estimated at about $16bn, is said to be spending up to £60m on interior work on the three-storey penthouse"

Need to say any more?

p.s. Another one bites the dust..

Early Monday morning PoR parliamentary deputy Mykola Lisin was killed in a high speed crash whilst driving his $165k+ Lamborghini Gallardo. Police say he was travelling at 150km/hour - eye witnesses estimated the speed of the vehicle to be nearer 200km/hr. Skid marks over 200m long seem to support the latter figure. Two lamp posts were knocked over - one flew over 50 metres after it was struck, and the car came to rest against a garage fuel price sign.

Lisin, a big-shot businessman had close ties to the dubious Ecology and Natural Resources Minister Mykola Zlochevsky. The latter prefers Rolls Royces or Bentleys to get around..much safer...

Source: here

'Segodnya's' view of Yanuk's palace

There's a large article, complete with photographs and video entitled "A flight over Yanukovych's nest: waterfall, classical columns and club house," in today's 'Segodnya'.

The periodical hired a helicopter which flew the same route the president will be taking when flying to 'work?' and back, when the heliport in downtown Kyiv is completed. They had had some difficulty hiring a pilot because of possible security problems, but did find one who agreed to take them along for the short flight.

'Segodnya' calls Mezhyhirya, "the residence of the guarantor [of the Constitution] [is] a mini-town".

It includes a large aircraft hangar, a boating lake with bridges surrounded by parkland and a classical gazebo, all worthy of a 19th century Bavarian king. These can be seen in the photographs accompanying the article.

The 4-storey helipad currently under construction near the Verkhovna Rada is a major construction project in its own right - I'm not sure if any other European capital can boast such a feature for use of its 'top banana'.

The article does declare that: "according to official versions, only one house in the "Mezhyhirya" complex belongs to Yanukovych. Everything else is the property of certain companies. The opposition say that all these firms are in one way or other connected to the family of President and that all the residence is 'de facto' controlled by Yanukovych. The president's people deny any link with the owners of Mezhyhirya".

The article states that their helicopter was greeted enthusiastically by Kyivans as it flew over them, and ends: " It is interesting what conclusions Viktor Fedorovych will make watching for the joyfulness of his fellow countrymen. As a minimum, his mood will probably rise...Unless of course, the opposition, or 'Femen' create some kind of dirty little trick [pakost'] along the way."

Despite promising journalists, in an 'off the cuff' remark, to show them around the place, Yanukovych has prevaricated for many months and has now, most likely changed his mind.

The big-selling Akhmetov-owned 'Segodnya's' editorial position is normally pro-Party of Regions. but I'd bet most of its poorer readers, when they see this will think:..."Megalomaniac..or what?"

These sorts of articles are not published without much thought. LEvko's guess is that this may be a little warning to 'The Family' from other clans..

p.s. Last week Yanukovych's 'mouthpiece', Hanna Herman, said:

"We should make it so the gap between the rich and the poor is reduced in this state. The president is a sincere man, he understands he and his team should live the [same] life which his people live. The people will no longer go with us if we are somewhere on Mount Olympus, while the people rummage through rubbish heaps." She's breaking my heart...

Victimised for student prank

On December 16th last year, twenty-year-old arts and drama student Hanna Sinkova [see photo], together with some friends, as part of an artistic event /prank /demonstration, call it what you will, fried some eggs and sausages on the Eternal Flame Memorial in Kyiv's 'Park of Eternal Glory'.

According to some reports, the students were protesting about the wasteful consumption of gas at the memorial at a time when many WW2 veterans are receiving meagre pension and living on the 'bread line'.

Absolutely no damage was caused to the memorial, and it is debatable if the behaviour of the students, as recorded on this video, could be considered loutish or abusive.

On 29th March Sinkova was arrested, her apartment searched, and her computer and other personal belongings removed. She was questioned at great length and thrown into a cell together with prostitutes and other down and outs. On 1st April she was charged with 'mocking, or disrespecting [defiling, I suppose] a grave'. If found guilty she could face 5 years in prison.

Prosecutors privately admit that Sinkova, a member of the right-wing 'Svoboda' party, is being persecuted because of big pressure on law enforcement agencies by communists, Vintrenko-ites, anti-fascists, and Russian international organisations..

Ironically, the court in which her hearing was held was itself constructed in the mid-nineties on the site of a cemetery which was bulldozed and its human remains dumped, despite protests.

Last Monday an appeal court refused to release this poor girl on bail. A few days ago former president Kuchma was charged with crimes linking him to the murder of a journalist...but he is free to 'swan around' in a chauffeur-driven limo..

Today students in Lviv staged a protest against minister of Education Dmytro Tabachnyk. Some reports say 1000, others say 3,000 took part..History shows it is not a good idea for governments to radicalise students because, in the end, youth always wins out...and Ukraine will never be ruled by ayatollahs..

The case against Putin

Interesting op-ed piece on Radio Svoboda's site today by the the excellent, high profile journalist Vitaliy Portnykov.

I've loosely translated portions below:

On the eve of the arrival of the head of the Russian government Vladimir Putin in Kyiv today it was announced that a new criminal case was being opened against former Prime Minister of Ukraine, Yulia Tymoshenko.

On the face of it it would seem that these two events are not related, except that the criminal case against Tymoshenko concerns the signing of gas contracts with Putin in 2009.

The agreements were called 'the best in the history of Ukrainian-Russian energy co-operation' by Putin, but Viktor Yanukovych sternly criticised these contracts. Once in power, he has persistently fought for their abolition but attempts to revise the Tymoshenko-Putin formulas have invariably met with refusal from the Russian side.

In Kyiv it is suggested that Tymoshenko illegally gave directives which allowed her to sign the agreement. According to Inna Bohoslovska, chairman of the Temporary Parliamentary Commission investigating this matter, Tymoshenko had "personal, specific, secret relationships with the Russian side, which could have impacted on her behaviour". But the Russian side was not an abstraction - it was PM Putin...

The Russian prime minister is in the Ukrainian capital to discuss co-operation in the energy sector, but now negotiations will take place against the backdrop of this new criminal case, which casts doubt on the legitimacy of the 2009 gas agreements.

This statement about suspicion of the damage caused to the Ukrainian state by the former premier was announced by none other than Deputy Prosecutor General Renat Kuzmin - the same Kuzmin, who is not afraid to bring criminal charges against former President Leonid Kuchma. And Bohoslovska has announced her temporary committee of inquiry has requested the Prosecutor General of Ukraine turns to their Russian counterparts for help in the investigation.

Obviously Putin will not be questioned by the Ukrainian Prosecutor General's Office, but the mere fact of the opening of the investigation is a hint to the Russian Prime Minister that Ukrainian law enforcers may be accumulating 'kompromat' indicating the use of personal relations with Tymoshenko to create and sign a contract disadvantageous to Ukraine. It is possible that in Kyiv they believe that this hint will help president Viktor Yanukovych and Prime Minister Mykola Azarov gain a stronger position in their energy negotiations with Putin.

But it's more than a peculiar calculation as it is well known Putin does not like to be pressurised. [It is well known Putin personally despises Yanuk too..LEvko]

It is possible that Yanukovych may not be calculating not so much on instant success, but rather how to help his colleague Dmitry Medvedev, who is now entered into a competition with his predecessor in the 2012 Russian presidential elections.

And if Medvedev, who gave Yanukovych a gas discount in Kharkiv, wins, he will repay his helper.

p.s. Former president Kuchma was sensationally charged with criminal offences linked to the Gongadze murder on the eve of Tymoshenko's recent visit to Brussels...Additional charges are directed at Tymoshenko on the eve of Putin's visit...can the timing of the declaration of these charges be coincidental? Most unlikely. Ukrainian authorities just don't get it...the law enforcement system is not a tool of politicians. No progress has been made in 20 years...

One example why Ukrainian politicians are regarded with scorn

On April 7 2011 Ukrainian Parliament voted in a new law on the prevention and counteraction of corruption. The voting occurred in a half empty parliament.

From April 6 the official website of Ukrainian Parliament publishes a list of MPs who have signed in on the days parliamentary sittings are held. This site also publishes the results of votes cast by MPs using electronic key cards inserted into readers.

The Anti-Corruption Law was approved by 277 electronic votes deputies, even though only 158 of these MPs had signed in and registered their presence that day. There are 450 MPs in total in the Verkhovna Rada.

Source [in English] here

Proxy voting in parliament is strictly anti-consitutional.

Ukrainian politicians take note...

British prime minister David Cameron are taking an Easter holiday in Spain.

"It is their first foreign holiday since he became Prime Minister last May, and Cabinet colleagues have been urging him to take a break.

The couple aborted plans for a luxury family holiday in Thailand at Christmas amid fears it would appear excessive at a time when thousands were losing their jobs.

It is not known how much they paid for the [scheduled] Ryanair flights, but an equivalent return trip next week would cost £152 each.

They are staying in a three-star family-run hotel, where a double room costs 120 euros (£105) a night."

Source and more information and photos here

They received no special treatment: A fellow passenger took the photograph above of the couple in the departure lounge ahead of the Ryanair flight from Stansted airport to Malaga.

Ukrainian politicians will not believe this story...

Whipping boy Azarov.

PM Mykola Azarov is becoming president Yanukovych's chief whipping boy. This video was posted on the pres's official site.

"Tell me, what happened this year? Why has this work not been done on time? Why didn't we ask the agragrians what problems they face? Why didn't we invite representatives of the motor engineers? The owners or directors of chemical factories who supply fertilizers... fuel and lubricants?"

A miserable-looking, sighing Azarov mutters a few excuses...

Today, at a well-attended presentation on investment reforms, when speaking about a campaign to improve Ukraine's attractiveness to investors, Yanukovych again told off his hapless PM. In reply to Azarov's claims that a programme to attract such investors already exists, the pres. retorts: "...Don't tell me fairy tales. You can tell them to others. I know what I'm talking about."

Such crude heaping of blame and humiliation of subordinates in public looks like something from Mao Zedong's China..

And Azarov had a slanging match with deputy PM Boris Kolesnikov today too...nerves are getting a bit frayed..

Green demo in Kyiv

Blogger Olena Bilozerska reports on what looks like quite a big demo in the Spring sunshine in Kyiv today by what seemed to be a 'rainbow coalition' called 'The Defenders of Kyiv'.

Their main demands are:

• a stop to further development of the city's green areas,
• a moratorium on new building construction to protect historical buildings and monuments,
• a moratorium on the closures or privatisation of museums and libraries, and reassessment of such actions that took place over the last five years,
• the creation of a decent infrastructure in the city for cyclists,
• the provision of litter bins, a city 'clean-up', and introductions of fines for dropping litter,
• a freeze public transport costs and housing utility costs, etc.

Lots of photos at the link above. Unlike several recent 'rent-a-mob' demonstrations paid for by political sponsors, this one looks quite genuine..lots of young people, some with kids..normal folks..not the usual nasty skin-head 'mordati' louts...

People beginning to find their voice again?

p.s. "Boris Nemtsov has published the [must read] fifth instalment of his White Paper series reviewing the manifold failures of the Putin regime. This time, his focus is personal corruption by Vladimir Putin himself.."

"Corruption has ceased being a problem in Russia; it has become a system. Its metastases have paralysed the country’s social and economic life."

This is the system the folks in Kyiv were protesting against I guess...

More on Kuchma affair

Excellent article here on the Kuchma business:

http://www.opendemocracy.net/od-russia/valery-kalnysh/kevlar-kuchma-and-bullet-of-justice

However, such schemes frequently do not turn out the way they were planned...

More reasons for targetting Kuchma

Just over one month ago, when president Yanukovych had, what was by all reports, a cordial round-table meeting with Ukraine's three former presidents, he must have known, in true Soprano's style, of plans to 'shaft' Kuchma with charges connecting him to the 10 year old murder of journalist Georgy Gongadze. He lulled Leonid Danilovych into a false sense of security.

VR deputy speaker Mykola Tomenko, in Mykola Knyazhytsky's eponymous tv programme, claims one of the reasons for going after Kuchma is to press the former president's son-in-law Viktor Pinchuk, who owns three major television channels, into 'redistributing' his media empire. Kuchma's daughter Olena now personally escorts her dad when he is called in for questioning.

Tomenko adds that if Mykola Melnychenko's secret recordings [made in former president Kuchma's office] are fully accepted as material evidence, the current authorities could be opening a pandora's box because many of them, including PM Azarov and Yanukovych, are themselves allegedly heard planning and approving illegal deeds. [Kuchma's lawyers will try and turn the tables on Melnychenko - if the recordings are deemed by the court to be fake or doctored, it could be M.M. who finishes up in the dock.]

'Kommentarii', in an article entitled: "How much will they take away from Leonid Kuchma" also hints at possible mercantile reasons, amongst others, for the recent developments. The case against ex-President Leonid Kuchma "may be dictated by serious financial interest, together with personal resentment by the current head of state", they say.

The article concludes: "When considering the reasons for the persecution of Kuchma, it is not possible to avoid a personal motive. Yanukovych could well bear resentment against the former head of state because of his failure, and difficult five years following the orange revolution. Whatever else, the opening of a criminal case against someone at Kuchma's level suggests that Ukraine has entered a new era, where there are no longer any taboo, 'no-go' areas for the government. Now, even the firmly entrenched PoR political elite must understand that they have no immunity from prosecution by the authorities. Tomorrow any businessman could be invited to the prosecutor's office for tea, may have to "offer" to give up his business , and the day after could be writing a letter complaint from a solitary confinement cell.

The criminal prosecution of Kuchma could be the first warning bell, which may in future push the oligarchs to unite against "The [Yanukovych] Family". But it is hard to believe that all of Ukraine's billionaires would sit down at one table - more likely they will silently wait for the "slaughter" in the hope that it will pass them by. Furthermore, the current campaign against former president Kuchma, without [any perceived] fear of repercussion in the future, could be considered as the action of short-sighted head of state, or of a person convinced that he will be in power for life."

Others suggest Yanukovych's presidential nomination in 2004 by Kuchma was worthy of "400 million thank-yous"...[Does he, or his backers now want these back? Maybe Kuchma hasn't spent them all yet.. At the end of his second and final term in office there were several potentially more attractive candidates Kuchma could have given his blessing to.]

'Leviy Bereg's' Sonya Koshkina says the Gongadze affair is aways aired whenever any government wants to deflect attention from current [economic] problems. If anything, the charging of Kuchma with criminal offences has gained him sympathy in some quarters, despite his odious reputation.

p.s. Birthdays are a big deal amongst Ukraine's political elite - tasteless presents, parties, greetings cards, bouquets of flowers big enough to accommodate a troupe of monkeys are frequently given. Kuchma always got these and more from former colleagues of almost all political colours after leaving power. But not from Yanukovych...

Reasons for targetting Kuchma now

"Ukraine has opened a criminal investigation against the country's former president, Leonid Kuchma, on suspicion of involvement in the 2000 murder of an opposition journalist [Georgiy Gongadze]. Deputy Prosecutor-General Renat Kuzmin announced the probe Tuesday, after a decade of pressure from Mr. Kuchma's opponents."

Many observers are speculating over reasons why prosecutors are targetting Kuchma, now, more than ten years after Gongadze's death. Trust in the country's law enforcement agencies - the police, prosecutors, judges and courts, has always been very low, so most concur, with much cynicism, that pursuit of justice is hardly an explanation.

Diana Dutsyk in 'Glavred' lists possible motives for the recent developments:

1. To divert media attention in Europe and elsewhere from Yulia Tymoshenko who will be spending the next few days in Brussels 'bad-mouthing' the current Yanukovych-led Ukrainian administration.

2. The current authorities want to rehabilitate themselves in the eyes of the international community after much bad publicity and show that there is 'one law for all' in Ukraine.

3. The case against Kuchma may have been reactivated following pressure from the West, and the USA in particular. [Others speculate that the US may provide incriminating evidence linking the former PM Lazarenko, currently imprisoned in the USA, to Yulia Tymoshenko. But in exchange, Ukrainian law enforcement agencies have to 'nail' Kuchma.]

4. The ever more powerful 'Donetskiites' are 'muscling in' on other non Donetsk business groups, including those connected to Kuchma's son-in-law Viktor Pinchuk. The current push against Kuchma could be a signal that during this 'redistribution process' no-one is too big to avoid being 'gobbled up'.

5. Revenge for 2004. Yanukovych feels bitter that he was betrayed by Kuchma during the orange revolution, and he holds the former president responsible for 5 lost years between 2005 and 2010. [LEvko quite likes this version - in crime circles betrayal always has to be avenged - it is difficult to believe that this resonant action against Kuchma was sanctioned by any person other than the 'top banana' himself. Seemingly intelligent criminals frequently consider their vengeful and/or rapacious deeds to be completely self-justified. Righting wrongs of the past allegedly done to themselves is a principal justification. Such self-justification may also explain Yanukovych's current vengefulness to political enemies, and the 'compensatory' kleptocratic behaviour of 'The Family' which he heads. Needless to say, such attitudes frequently lead to downfall. ]

6. As a diversion tactic to deflect attention of Ukraine's citizens and others from serious economic problems. Significant demonstrations by teachers and industrial workers took place in several cities earlier this week. [Sonya Koshkina supports this theory and suggests US political advisors may have dreamt up the scheme. Yanukovych had a choice whether to throw the much hated minister of Education Dmytro Tabachnyk, or Kuchma to the lions..he chose the latter. The blackmailing of parliamentary speaker Lytvyn, who is allegedly linked to Gongadze's murder, could be a useful bonus for Yanukovych too.

7. To take the case against Kuchma to a logical conclusion: find him not guilty in a law court, and absolve him without a stain to his character. The current administration thus shows that 'true' justice is important for them - they cannot be accused of selective justice in the event that Tymoshenko and other opposition leaders will be jailed on the charges they are currently facing.

Other commentators claim current head of the SBU security service, Valeriy Khoroshkovsky, may be returning to the position of head of the customs service. Renat Kuzmin wishes to replace Khoroshkovsky [whom he dislikes] at the SBU - the current high profile PR action against Kuchma puts Kuzmin firmly in the media spotlight.

Because a statute of limitations applies on the charges directed against Kuchma, it is most unlikely he will ever be incarcerated, even if found guilty by a court of law. He did look worried though when he was interviews outside the P-G's office...it's probably all messing up his plans for a Spring cruise on his son-in-law's yacht in the Med.

The case against Kuchma can be 'fine tuned' or even 'kicked into the long grass' according to which individual, or which combination of the above motives become more or less important.

p.s . Ukraine's second president being charged of involvement with murder, Ukraine's third president lucky to survive near-fatal poisoning, Ukraine's current, fourth president served two terms in prison for violent crime...says something about the country?

Transparency International says VR's fight against corruption is "pi**ing in the wind"

Open letter from Transparency International to Speaker of the Verkhovna Rada of Ukraine, Volodymyr Lytvyn - 21st March 2011

Protection from prosecution

This story from Saturday's 'Segodnya'

Yanukovych greets his godson, Artem Pshonka, on his birthday

President Viktor Yanukovych wished Verkhovna Rada deputy Artem Pshonka good health on his birthday:"I wish you good health, good family relations, success and achievement in all your good endeavours," said the president's greeting.

Yanukovych also expressed confidence that Pshonka's businesslike qualities, professionalism and dedication would help him carry out his duties as VR deputy.

It was reported on February 17th, that Pshonka had been elected deputy chairman of the parliamentary committee on combating organized crime and corruption.

He is the son of the Prosecutor General Viktor Pshonka.

Pshonka Sr. has in the past denied that Yanukovych is godfather to his son, but "our families are friends." ['Segodnya' is regarded as pro-PoR....]

Their wives, (seen in this photo from link directly above) are very close..

Pshonka's wife allegedly uses the same hairdresser as US billionaire Donald Trump. When the 'NewYorkTimes' was asked to comment on the latter's hairstyle, they called it: "An elaborate structure best left to an architecture critic."

Trump's comment?: "No animals have been harmed in the creation of my hairstyle."

[This is not all true]

Media blackout on 'UkrTelecom' fix

Oleksandr Bondar, former head of Ukraine's State Property Fund, and journalist Tetyana Chornovil took part in the TVi channel's 'Vechir z Mykoloyu Knyazhytskym' programme tonight.

The topic under discussion was the shady, one bidder only, privatisation of the country's fixed line communications monopoly 'UkrTelecom'. [See my previous two blogs for background and more details].

The two studio guests complained of an almost total blackout on reporting or discussion of this massive privatisation in the Ukrainian mass media. TVi itself is a fringe channel, and Tetyana Chornovil's articles appear in 'Leviy Bereg' on the internet.

UkrTelecom, which employs over 30,000 personnel, is in debt. It may well be the loans were deliberately taken out and the money 'dark-holed' [as they say in England], with the intention of artificially depressing the value of the company. Now the sale has gone through, the money can be, allegedly, easily repaid.The CEO of Ukrtelecom, Heorgiy Dzekon, was in the past, according to Bondar, against any privatisation, even at a price of $2Bn. But now Yanukovych is president, he supports the company's sale at $1.3Bn.

Bondar, a parliamentary deputy, claims the talk in the VR's corridors is that UkrTelecom has been purchased by head of the presidential administration, Serhiy Lyovochkin, the entire deal being bankrolled by RosUkrEnergo's Dmytro Firtash..

Bondar adds that UkrTelecom's fixed line network is of strategic importance to the security of the country . It is used by the country's security services, police, by financial and governmental institutions etc. It is totally unacceptable that the owner of such a communications company is not officially known.

Karl Marx knew what he was on about when he said, in October 1917, "Our..forces must be so combined as to occupy without fail, and to hold at any cost, (a) the telephone exchange, (b) the telegraph office, (c) the railway stations, (d) the bridges.."

A request to investigate this privatisation further, in parliament, was declined today...The response of the president and government to this scandalous affair seems to indicate it took place with their blessing.

More on 'UkrTelecom' fix

Investigative journalist Tetyana Chornovil, in an article in "Leviy Bereg", provides more circumstantial evidence that the privatisation sale of 'UkrTelecom' to Epic Service Ukraine (ESU) for $1.3Bn [see previous blog] is, most likely, a fix*.

Summary:

The CEO of Ukrtelecom at the time of sale, Heorgiy Dzekon, and the director of ESU, Illya Solodovskiy, are neighbours in the posh, [what the British call stockbroker belt] village of Lisnyky, near Kyiv. This pair, together with one Ihor Zimin, the father of VR deputy Yevhen Zimin who is head of the parliamentary committee on telecommunications and postal communications, jointly own land together through their company 'Novi Lisnyky'.

The younger Zimin, even though he is a BYuT VR deputy, is considered to be close to Serhiy Lyovochkin, head of the president's administration.

In 2004, when Heorhiy Dzekon was appointed head of 'UkrTelecom', the company was making 759 Million hryven profit. Since then, Tetyana Chornovil alleges the company has been systematically run down and devalued, i.e. "prepared for privatisation", by Dzakon. It is now in debt and on the verge of bankruptcy.

Dzakon and Lyovochkin go back a long way. They can allegedly be heard on recordings, revealed by Oleh Rybachuk, plotting to tap into the electoral commission network to rig the 2004 presidential election results.

There is some hope though - questions are to be asked in parliament on Friday..

p.s. There are nine telecoms companies in the world bigger that Microsoft and bigger than ArcelorMittal, the biggest steel company in the world. Telecoms is a big deal all right, now and for the future.

*fix - Informal . to arrange or influence the outcome or action of,especially privately or dishonestly..

Another shady privatisation [updated]

"On 11 March the Ukrainian State Property Fund sold a 92.79 percent stake in Ukraine's telecom monopoly, Ukrtelecom, for 10.57 billion hryvnia (around $1.3 billion). The shares have been bought by Epic Services Ukraine (ESU), a daughter company of the Austrian EPIC group.

The opposition claims that the company was sold to a pre-agreed buyer (ESU was the only bidder submitting the final tender) and that in reality Ukrtelecom has been sold to Ukrainian businessmen, most probably closely linked to president Viktor Yanukovych. They also accuse the government of setting a far too low asking price for the company. Former prime minister Yulia Tymoshenko, claims that the transaction has caused the state to lose between $3 and $4 billion." [Source here.]

The long-running privatisation saga of this company has been a sorry tale indeed. There were times when it was valued at $25Bn. Companies having a state-owned portion greater than 25% were denied permission to bid, so giants Deutsche Telekom, FranceTelecom, Nortelecom and several Russian companies were shut out. Ukrainian mobile 'phone operators MTS and Kyivstar were also officially excluded.

The former head of the Ukrainian State Property Fund, Oleksandr Bondar was asked about the privatisation in an interview with the 'Nashi Hroshi' website on Monday. He claims the ownership of ESU was transferred to a Cyprus offshore company just prior to the sale - who the true end owners will be is therefore unknown. They could be Rinat Akmetov, head of presidential administration Serhiy Lyovochkin, members of the Yanukovych 'Family', or a combination of these and others.

Bondar estimates that in a fair contest, the state should have received at least $2Bn rather than $1.3Bn from the purchasers.

One websites speculates: "There remains uncertainty over EPIC due to persistent speculation that the fund is acting as a front for another, non-disclosed party, previously rumoured to be connected to cellular group MTS, part of Russian conglomerate Sistema, which operates in Russia, Ukraine and other CIS countries."

ESU's representative who signed the deal last Friday remained tight-lipped after the company had won this one-horse race.

However, what is clear is that the current State Property Fund and the Ukrainian Anti-Monopoly Committee have both failed in their duty to ascertain who the true owners of UkrTelekom will be.

Update From 'U.P. : EPIC Goldsheider and Wurmbuck (EPIC, Vienna, Austria) have claimed they remain the sole owner of EPIC Services Ukraine (ESU Ukraine, Kyiv) who gained a controlling packet of shares of 'UkrTelekom'.

EPIC is the exclusive owner of EPIC Advisors Ltd (EAL), which via its daughter company EAL is the sole owner of ESU, and has decided to optimise the structure of the holding, adapting it to the privatisation of 'UkrTelekom', by transferring the right of direct ownership to ESU, of the EPIC Telecom Investment Ltd (ETI).

ETI is the 100% owner of EAL. In this manner EPIC remains 100% owner of ESU.

Earlier two reputable Ukrainian newspapers 'Delo' and Dilova Slolytsya' reported that 100% of the statute fund of ESU were transferred from the fund of Epic Advisors Ltd, to the recently-formed Cypriot Epic Telecom Invest

'U.P. say that ETI have not even declared their registered legal address...this whole "alphabet soup" still smells fishy - are they good for the $1.3Bn? LEvko wonders...

They should be...when you consider what they are getting for the money.. the country's entire fixed cable telecom network...the exchanges...many many millions of subscribers...

Sport and politics should not mix

European Champions' League quarter finalists, Shakhtar Donetsk, were beaten 1-0 last Saturday in Lviv by Ukrainian premier league rivals, 'Karparty'.

Some of the home team fans displayed a huge portrait of Stepan Bandera and also a banner: "Nothing will hold back an idea whose time has come".

Oh dear....

[Ukraine's Euro-2102 co-hosts Poland, and UEFA will not be happy..]

Ukrainian obshchak

In recent months some of the activities of the current Ukrainian authorities, e.g. grain export quota machinations, selective application of customs control and import duty on petroleum products, etc., below-cost selling off of prime development sites and property to favoured buyers and so on, have been ever more frequently described by some commentators as the creation of an 'obshchak' set up for the benefit of 'those who now must be obeyed'.

The excerpt below from this academic paper provides an explanation of this term.

"Thieves and bandits

The legendary Soviet criminal underworld, the world of thieves (vorovskoi mir), has received a fair amount of scholarly attention. Formed in labor camps and prisons in the early-Soviet times, the world of thieves became a powerful informal organization that survived until the end of the Soviet system.

Thieves observe a complex set of mores and prohibitions that regulate their relations with one another, with authorities and with outsiders. Prohibitions are particularly strong with reference to having a legitimate job and a family, the cooperation with prison or any state authorities, the use of violence towards other thieves unless a collective decision is taken, and personal luxury.

The central element of the world of thieves is the so-called obshchak, the communal fund which accumulates the money acquired by theft and other illegal methods. Having donated the money to the obshchak, the thieve then receives from it his share that makes his living. But the bulk of obshchak is used to support those who serve their prison term. The elite of this underworld consists of the so-called "thieves-in-law" (vory v zakone), whose main function is obshchak management and exercise of criminal justice"

Fist fight on live TV over poet [updated]

Watch this funny Monty Pythonesque altercation on the 'Velyka Politika z Yevgeniyem Kiselovym' political discussion programme yesterday between two of Ukraine's most unpleasant provocative commentators..

I love the way the anchor man Kiselyov calls out in a strained voice, after assailant, Oles Buzyna, tries to grab his victim, Serhiy Poyarkov, by the testicles: "Okhrana.." - A stunned audience looks on.

The other speakers with concerned mutterings comically but pathetically try and retain a sense of decorum..

And after fighting starts again near the end of the clip Kiselyov declares: "Reklamnaya pauza.."

The theme of the discussion was Taras Shevchenko...

Buzyna, a 'special correspondent and writer' who works for 'Segodnya' is known for his provocative and frequently scandalous anti-orange, anti-Europe articles. Will he face criminal charges? The video evidence against him is clear. Will he be sacked by 'Segodnya'? He has undoubtedly breached the newspaper's defined terms of behaviour for staff. He is now saying he will only appear on Kiselyov's show again if he receives an apology from Kiselyov himself!?

Managers of other TV stations have already declared they would not be against Buzyna appearing on their programmes. They will show any crap as long as it gets them ratings. To slightly misquote H.L.Mencken, "No one ever went broke underestimating the taste of the Ukrainian public."

Grain export madness [updated]

This article from "Ukrainian Week" [in English] explains how the Ukrainian grain–export market is being monopolised by the Donetsk clan.

A company called Khlib Investbud Ltd. (KhIB) last year was granted a major portion of the country's grain export quotas, whilst other big grain export traders were shut out. Agriculture minister, Mykola Prysyazhnyuk, tried to convince the mass media that this was all OK and 'above board' because KhIB was 61% state-owned.

However, the Ukrainian version of 'Ukr.Week', 'Tyzhden' magazine, has documents revealing that the state no longer controls 'KhIB' - which is now Ukraine's main grain trader. It seems 'KhIB' is in the hands of a company linked to business spheres close to the minister himself - 'Kalasar Ltd'.

'Tyzhden' says 'Kalasar's joint owners are Oleksandr Kozyryev [connected to the Yenakiyiv business group], and also Genetechma Finance Limited, an offshore company registered in Cyprus [surprise, surprise]. The latter is a daughter company of the Luxembourg-registered Belevue Industries Sarl, who, in turn, are a daughter company of VEB-Leasing. They are a daughter company of the Russian VneshEkonomBank [VEB]....and the head of the supervisory council of VEB is PM of Russia, Vladimir Putin, no less.

'Tyzhden' calls this classic layering arrangement a new 'RosUkrEnergo', or 'RosUkrZerno'.

The periodical declares: Now Putin's bank has found easy money on the Ukrainian grain market. Last summer, the state lost control of 'KhIB' but nevertheless selected the company to be the state's chief grain trader. 'KhIB' received a contract to purchase 5 million tons of Ukrainian grain for 7 billion hryven [1,400 hryven/tonne], then received the lion's share of grain export quotas. As a result, other large transnational corporations who for years worked in Ukraine were squeezed out of the grain business. 'KhIB' monopolised the market and Ukrainian farmers have been forced to sell their grain to the company at a depressed price. Now the main state exporter sells the same grain inside Ukraine at a higher price. The activity of the 'KhIB' in the domestic grain market is one of the reasons why cheap flour has disappeared from store shelves, and the price of bread has increased.

Last month the Ukrainian Agrarian [strategic reserve] Fund decided to buy well over 2 million tons of grain from KhIB in three batches. It will have to pay 1.55 Bn hryven for each batch - providing a tidy profit the 'KhIB', basically for doing nothing..

Several weeks ago and article entitled: "Quotas threaten 'collapse' in Ukraine grain output" was posted on 'Agrimoney' site.

"The head of one of Ukraine's major farm operators has warned of a potential "collapse" in the country's grains production if it does not repeal quotas which could cost farmers up to $1.3bn.

Eugene Leng, the chief executive of Ukrzernoprom Agro warned that a fall in sowings of winter crops would herald an even greater drop in spring plantings unless the government lifts the quotas which are denying farmers the full benefit of high world crop prices."

Last week the respected Ukraine-watcher Anders Aslund, in a TV interview with Mykola Knyazytsky, stated he was very disturbed about the monopolisation of grain trade in the country -"There is no reason for it", [apart from the obvious.]

Agrobusiness is one of the great hopes for the future of Ukraine, but short-term greed is threatening its future development. In Ukraine export scams such as those described above are still then norm rather than the exception.

Update: A comment note in an article in Wednesday's 'Ekonomichna Pravda' which fleshes out this story], claims the above-mentioned Oleksandr Kozyryev has close business ties, via another company to the daughter's of agriculture minister Mykola Prysyazhnyuk and of head of the council of ministers of Crimea, Vasyl Dzarty,

More on the dapper Dzarty from a previous blog here

"50`year`old Prysyazhnyuk is considered to be a member of Yanukovych’s team. He met Yanukovych in Yenakiyevo in the 1980s and at that time Prysyazhnyuk was production manager at Ordzhonikidzevuhillya agrarian economy. Yanukovych was head of its motor pool.

They say Prysyazhnyuk was appointed first deputy head of Zhytomyr Oblast State Administration in 2002 under Yanukovych’s patronage. By that time he founded and became head of the PR oblast organization in Yenakiyevo. Prysyazhnyuk was elected MP from the PR in 2006. In the VR of next convocation he was promoted to the office of head of the agrarian committee.

Prysyazhnyuk’s main business is little related to agrarian sector, though. He mostly profits from extraction of quartzite (used for production of ferroalloys) and gravel. Mass media estimated his fortune as US $80 — 90 mn." source: Kyivweekly.com

Worst customs service in the world - but smartest uniforms..

Deputy head of the Ukrainian customs service, Serhiy Syomka, appeared in the Friday's 'Shuster live' show which focussed on the theme of corruption. He looked magnificent in his flashy royal-blue uniform, starry epaulettes and gold braid - not one crease on his well groomed, carefree schoolboy-complexion face.

He fended off challenges from other speakers in the studio, on massive scams at Ukraine's ports and customs clearance centres, with smug disdain.

I couldn't help compare his demeanour with this, from one US publication:

"The inventiveness of the [Ukrainian] Customs Service in finding new ways to collect money from companies and individuals trying to do business in Ukraine surpasses that of some of the worst kleptocracies in history. The issue finally boiled over in a July meeting between the U.S.-Ukraine Business Council—representatives of U.S. firms that have operations in Ukraine—and Deputy Prime Minister Sergei Tigipko.

The overall theme of the meeting was the irreparable harm done to the business environment by the Customs Service. But the specific focus was how their practices are a complete disaster for express mail and parcel services like FedEx, DHL, UPS, and others."

“There are only few countries in the world which ‘outperform’ Ukraine as the worst in the world. It is important to understand the impact of the shipments delayed at Customs which often result in lost revenues, additional costs for companies and the Customs Services itself. It generates numerous complaints from business community and private individuals. Last but not least it constantly deteriorates Ukraine attractiveness among potential investors,” said Vadim Sidoruk from DHL’s office here in Kiev.

“It has become common knowledge that Ukrainian Customs laws regulating express delivery are some of the most, if not the most, complicated in the world,” he complained.

“It is hard to imagine just what would lead the parliament and the Customs Committee to make the changes necessary to remove the roadblocks. However, I cannot help but think that if they understood the many development projects that have gone elsewhere in part because of the antiquated customs procedures, that alone would have a very strong impact on their thinking--and actions.”

In July, DHL moved into a new 8,000 square meter, $12 million package processing facility. It is one of the largest of its kind in the world for the simple reason that backlogs created by Ukrainian customs require this kind of capacity. Of all the packages held by customs in all of eastern and central Europe, 70 percent are being held in Ukraine, according to DHL."

[More at the link above]

Syomin's approval rating, which was constantly being assessed by Shuster's studio audience as he spoke, quickly dropped to percentage figures in the low teens..

Massive increase in anti-opposition TV air-time bias

This from the 'Telekritika' media watchdog website:

100% of video clips on the [state-run] First National Television Channel are on the ruling authorities - opposition is not represented at all

In February, an imbalance unprecedented since 2002 was recorded

In December 2010, the duration of time granted in news programme [political reports] on Ukrainian TV channels to representatives of the authorities was, on average, 70%. Only 26% was granted to the opposition. Other politicians received the remaining 4%.

These were the results of the Academy of Ukrainian Press [AUP] - "Monitoring of political News: December 2010, February 2011". In February the imbalance increased: 84% to the authorities; 14% to the opposition, and 2% to other politicians.

AUP President Valery Ivanov said that the situation at the First National Television Channel [NTU] was especially disturbing: in December, the news channel [political reporting] was 95% dedicated to politicians in power. In February no-one else apart from them was granted air-time.

He added that bias of this magnitude has not been recorded on any Ukrainian channel since [his organisation] started monitoring television news broadcasts in 2002.

Tymo's fate already pencilled in by 'vlast'...

US Vice President Biden yesterday joined the chorus of spokesmen of Western governments when he expressed concern, personally to Yanukovych, about the importance of "avoiding any selective prosecutions of opposition officials".

Although no names have been mentioned, all of these comments must primarily have in mind leaders of two of Ukraine's biggest opposition parties, former PM Yulia Tymoshenko, who has for many weeks been questioned by the prosecutor general's investigators, and former minister of Internal Affairs Yuriy Lutsenko, who has been imprisoned for over two months.

The current authorities recently staged a coordinated PR campaign in the US and Europe in an attempt to allay these concerns, revealing that they take all of this seriously because it damages their reputation.

The pro-Yanukovych 'Segodnya' newspaper speculates about what fate awaits the pair in an article entitled: "Tymoshenko could receive three years, and then be amnestied, adding, ex-PM to be tried next year, and her former minister by Summer."

In some countries this kind of speculation by serious observers would be regarded as highly prejudicial for cases that are 'sub judice', but it exposes the dilemma faced by the current authorities and the pathetic mess the country's law enforcement agencies find themselves in.

Apparently the case against Tymoshenko comprises 180 volumes of evidence of between 250 and 300 pages each. If she familiarises herself with 20-30 pages per day i.e. at a rate of about two volumes a month, as required by Ukrainian law, it would take over seven years to read all 180 volumes ....Lutsenko has 47 volumes to read...but he started last December...

[If a fair trial is to take place shouldn't the judges, prosecutors, defence councils all be forced to endure this nonsense too?]

Anyhow, a source told 'Segodnya' that the prosecutor general's office themselves admit 80% of the stuff is 'makulatura' [waste paper for recycling...(only 80%?)] allowing them to predict the dates for any possible trials to be timed as in the article's headline..[Lutsenko has been detained and arrested for failing to familiarise himself with 'makulatura'!?...LEvko]

Under a sub-heading "Two years for Yuriy, three for Yulia", the newspaper reveals their source in the P-G's office claims, that if found guilty, these are the sort of sentences they could expect. However, according to 'Segodnya' "this is where it gets interesting". All of the experts they questioned say that the pair will not 'serve time', "the reaction from the West would be too harsh" and their sentences will be suspended.

However, according to Ukraininan law, as convicted felons they would not be able to stand for political office in the Autumn 2012 parliamentary elections. This would again cause an uproar, and would provide a reason for some of Ukraine's neighbours to consider the elections illigitimate. The current authorities therefore face a dilemma - if they drop the cases against the pair, or if the cases collapse in court, it would mean that the authorities had been set on repression, but were scared off by Western pressure...quite a humiliation and a moral defeat for Yanukovych, according to one well-known observer, Vadym Karasyov.

[Quite why it would be a humiliation for the government if the case would be thrown out or the pair were found not guilty by truly independent judges is not made clear..]

Karasov surmises that Tymoshenko will be found guilty of the charges against her, will receive a suspended sentence, but will then receive an amnesty, perhaps on Independence Day 2012. "By showing clemency and letting her stand for election, the authorities could claim a moral victory," and resolve their dilemma.

The article declares in Tymoshenko's case, "Experts believe they [the charges] are completely provable, however they are flawed from a political point of view. Any previous prime minister could be prosecuted for the same reasons. They often allowed diversion of funds in order to plug holes in the budget, meeting the shortfall from other sources."

As for Lutsenko, "our sources in the police, say these sorts of things also happened under former ministers to increase the income of people close to them." [Lutsenko is charged with overpaying his driver and promoting him to a rank about his station.]

The Russian 'Nezavisimaya Gazeta' claims that the usual " source" has told them former president Yushchenko may soon be appointed prime minister. Introducing "a liberal, a marketeer, and a democrat" would be would be beneficial in terms of negotiations with the EU and the U.S. It would immediately neutralise the Tymoshenko factor in Ukrainian politics and would remove all suspicion of authoritarianism of the new government in the West". Would it really?

p.s. Latest opinion polls have Yanukovych at about 25%, and Tymoshenko at about 15%.

If recent trends in their respective popularity continue, it is not beyond the bounds of possibility these two heavyweights could be 'neck and neck' by next year - could a trial of Tymoshenko be considered anything but political in such circumstances?

p.p.s. 'Segodnya' posts a video of a rather sheepish and uncomfortable-looking Yanukovych making his latest slip of the tongue, confusing the Brazilian cosmodrome in Alkantara, with a fictional place called "Balkantavra"....the video is preceded by.... a beer advertisement. Could this not be regarded as disrespectful...making commercial capital out of the president's poor memory and inability to familiarise himself with his brief?

'Segonya' online readers unhappy with Yanuk..

Interesting straw poll on the big-selling Akhmetov-owned, pro-government "Segodnya" newspaper's website.

Online readers were asked: "February 25th was the first anniversary of president Viktor Yanukovych's inauguration. How would you assess his first year's work [out of a maximum 5 points] ?"

5 - excellent - 5%

4 - generally working well, but with some shortcomings - 15%

3 - mediocre - pluses and minuses in equal measure - 15%

2 - poor - few successes - 12%

1 - everything absolutely terrible - 54%

[Total votes cast, at time of writing: 2203]

Trouble is, the opposition would probably score no better right now...

On-line readers are by no means representative of the nation as a whole, but they will be younger, smarter, brighter, more dynamic and forward-looking...

p.s. some of the comments at the bottom of the 'Segodnya' article are quite amusing too..

e.g - Wrap the chandelier around his neck...and throw him in swamp..."

and "It's never been worse than now. In Egypt the average wage is $200 - the nation starts a revolution. Here it's $100 and 20% still vote for them...nonsense.."

[only a bit of fun...nothing to worry about..LEvko]

"The Family" - and a toe-rag

The 'Levyi Bereg' website frequently posts reviews of articles from the Ukrainian media. In its latest posting it quotes portions of an article from "Kommentarii" entitled: "The Family has finally secured the Tax Administration for itself"

L.B. says: The term "Family", in relation to top administrators appointed by, and close to the family of President Viktor Yanukovych, is now firmly entrenched in the mass media, even in newspapers.

"The Family" now has loyalists in the Prosecutor-General's office, at the highest levels of the judiciary, in the ministry of internal affairs, [see previous blogs on reasons for not believing the current authorities] and now, it seems, in the Tax Administration.

Below are some portions from 'Kommentarii":

"After the appointment just before the New Year, of Vitaly Zakharchenko as chairman of the State Tax Administration of Ukraine and Andriy Holovach, as his first deputy, [both of whom are linked to Alexander Yanukovych, eldest son of the President] Head of S.T.A.U. in Donetsk region, Olexander Klimenko was also promoted. The new deputy head of the Tax Administration is also considered to be a nominee of the presidential family. Together with Holovach, Klimenko will control V.A.T. refunds and the extraction of taxes from oligarchs at the national level. "

The 'Kommentarii' article includes a note surprisingly linking the appointments of Klimenko and the current head of the National Bank of Ukraine Serhiy Arbuzov, to former president Viktor Yushchenko, all in the context of the "Family".

"30-year-old Olexander Klimenko owes his swift career rise in the S.T.A.U. to his older brother Anton Klimenko, who is still head of the Donetsk regional organization of "Our Ukraine ".

According to rumours, it was he, that after the Orange victory in 2005 managed to set up his younger brother as deputy chief of the specialist state tax inspectorate appointed to concentrate on the major taxpayers of the city of Donetsk.

When the old long-time head of the National Bank of Ukraine, Volodymyr Stelmakh was replaced by Arbuzov, [who is close to the businesss of the Oleksandr Yanukovych], some observers recalled that the 34-year-old Arbuzov had had close ties to the 'Orange' team of Anton Klimenko. Arbuzov was not just an ordinary member of "Our Ukraine" through 2005 and 2006. He was No. 6 on the O.U. list of party candidates in the Donetsk regional council elections, but was not elected because the O.U. bloc failed to overcome the 3% barrier. "

The "Kommentarii" article also describes how some of the 'top bananas' at the S.T.A.U. who had "represented the interests" of PM Mykola Azarov, Rinat Akhmetov, and first VP Andriy Kluyev, including some who had overseen VAT refunds, have been replaced.

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On the first anniversary of being appointed president, Yanukovych last Friday invited the three previous presidents of the country for a cup of tea, and a cosy chat.

I wonder did Yushchenko, [and the other three] have a laugh about what mugs Ihor Lutsenko and Yulia Tymoshenko were. Without their massive support, and that of many, many more back in 2004, Yushchenko have never, ever have become president.

Now Ihor Lutsenko is 'banged up' in prison for a third month on the flimsiest of charges, even though nearly one hundred parliamentary deputies have signed a declaration, presented to the prosecutor-general, vouching for Lutsenko if he were to be released on bail before any court trial. Their appeal has been denied.

Tymoshenko is constantly required to present herself for questioning at the P-G's office several days a week since before Christmas.

Did Yushchenko laugh about the thousands and thousands of his fellow citizens who shouted themselves hoarse calling out his name while standing for hours and days in the freezing cold in 2004?

What a toe-rag..