Revenge of the oligarchs

A recent detailed article in the prestigious 'Frankfurter Allgemeine Zeitung' entitled "Revenge of the oligarchs" describes how two of the top three leading lights of the Orange Revolution, Yulia Tymoshenko and Yuriy Lutsenko, are now subjects of political repression. [The third, Viktor Yushchenko sold his soul years ago.]

Lutsenko, who has been in jail for over half a year, is paying a particularly high price for 'crossing' two of Ukraine's biggest oligarchs when he was minister of the interior.

According to Konrad Schuller, the author of the the article, the current leadership of Ukraine wants to intimidate the opposition in the country and create a climate of fear.

Schuller writes that shortly after the Orange Revolution, oligarchs who came to dominate the Ukrainian economy following battles over the redistribution of property and assets in the 1990's, frequently with the help of guns and explosives, were terrified that they would be brought to justice for their alleged criminal behaviour. One of them, the current Deputy Prime Minister, Boris Kolesnikov, spent several months behind bars, and Ukraine's richest man, Rinat Akhmetov, one of the president's main sponsors, was forced to watch as armoured vehicles enter the grounds of his residence while police searched the premises.

Without doubt, articles such as this one and this one in western media, and the ever more strident concern expressed by leading European and North American politicians about the criminal cases against Tymoshenko and Lutsenko are causing significant harm to Ukraine's image; but by naming the two oligarchs, the FAZ article could potentially harm their individual businesses too.

It would be reasonable to surmise it is the 'gas people' in Yanukovych's circle that are driving the prosecution cases against Tymoshenko rather that the 'metallurgist' faction; but it could be the latter who could suffer most if free trade agreements are delayed/cancelled, or foreign direct investments curtailed.

Last Friday the German ambassador Dr. Hans-Jürgen Heimsoeth attended the 'Alice in Wonderland' pre-trial hearing of the case against Yulia Tymoshenko in person. He listened in bafflement as the judge and defendant argued for over an hour as to whether Tymoshenko should stand when addressing the court, as demanded by the young judge. Eventually Tymoshenko was thrown out of the courtroom for refusing to do so.

Yanukovych and his team must have weighted up the benefits and possible damage that would be caused when they made the decision to embark on these criminal cases against Tymoshenko and Lutsenko, but once started there is no turning back..and rifts inside the ruling party could be widening too. Maybe it seemed a good idea at the time, but most likely they were just following the gangsters' iron rule: never give your enemies a second chance...

p.s. French newspapers are asking questions about Yanukovych's palatial Mezhyhirya residence with its 70 vehicle garage, 350,000 Euro bathroom, helicopter hangar, etc. etc.

Ukrainians consider trials against opposition leaders unjust

Last Friday's 'Shuster Live' programme was particularly bad-tempered - opposition parliamentary deputies eventually walked out in protest because of constant interruptions and harassment by Party of Regions' spokesmen.

Despite the PoR attack-dogs' vociferous protests, and their attempts to 'talk-down' former president Leonid Kravchuk, the latter, with the support of a visibly-annoyed Shuster, managed to conduct a straw poll among the supposedly representative studio audience.

Responding to the question, "Is that which is taking place in the Pechersk courthouse [where former PM Yulia Tymoshenko and former minister of Internal Affairs, Yuriy Lutsenko are being tried] justice?" 84% of the studio audience said 'No', 16% said 'Yes'.

Responding to the question, "Is Tymoshenko's behaviour in the court correct?" 60% said 'No', 40% said 'Yes', i.e. a majority do not like the courtroom being turned into a zoo.

Nevertheless, as I mentioned in a previous blog, a majority of Ukrainians, as well as Western observers have probably already made up their mind and decided these criminal cases are politically motivated.

The voting results in the studio would seem to support the notion that many 'undecideds', and many Yanukovych supporters, also perceive these criminal cases as being politically motivated.

My guess is Ukrainians are getting rather scared that too much power is being accumulated by the current Yanukovych-led power 'vertikal'.

Breathaking arrogance of Yanukovych and PoR deputies

Today, [Friday] laws on pension reforms which will directly affect the lives of every Ukrainian citizen, were passed in parliament. Now every Ukrainian will have to work several years longer before achieving retirement.

248 deputies voted in support of the motion even though it seems only 143 deputies were actually registered to vote in the parliament building.

Multiple voting by deputies is a blantant contravention of the country's Constitution, but takes place with numbing regularity.

Today the majority of deputies were not even bothered to turn up to work for a few hours to discuss such a vital issue, probably because it was the last day of the session before the summer recess. Their decision means Ukrainians now have to work many hundreds of days longer. I guess many of the missing deputies were just too busy packing their suitcases and checking their flight tickets, or maybe had flown out already.

Also today, President Yanukovych, who is 'Guarantor of the Constitution', was asked at a press conference why his younger, parliamentary deputy son, Viktor, had voted in the past in parliament for other deputies in their absence, thus contravening to the Constitution.

His reply? - "When children are picked on - this is something else. I assure you I am not ashamed of my children, my family....When children are dragged into this dirt into which you are trying to drag my children, my family. You could pick on my grandchildren, the oldest is 11 years old - come on, let's go after them too."

[Video of Yanuk jr. voting for four deputies here]

LEvko says: What toe-rags these people are - bloated and drunk with power...there can be no better example of the disregard they have to those they are supposed to serve...half of Ukrainian men will now will probably die before they retire, at the new retirement age of 63. [Male life expectancy in Ukraine is just under 63...]

Reminder: Yanukovych's nickname at the time he was serving his two prison sentences in a young offenders' prison was 'kham' - means boor or lout. I can see why..

Judge in Lutsenko case compromised

Serious doubts have been cast on the impartiality of judge Serhiy Vovk, who is presiding over the trial of former Interior Minister Yuriy Lutsenko.

Documents have been published revealing a criminal case had been opened against Vovk in 2007 concerning the illegal appropriation of land belonging to 'UkrProfOzdorovnutsya'. The judge had allegedly intentionally altered the designation of this land, but in 2009, a Kyiv Appeal Court annulled Vovk's rulings in these matters.

Yesterday, in court, Lytsenko demanded Vovk stand-down because he could not be considered impartial, but Vovk refused to go.

Lutsenko added that the criminal case against Vovk was initiated after an audit by the Ministry of Internal Affairs audit which took place at a time when he himself headed the ministry, in other words Vovk could use the trial to settle old scores and 'get even'.

Lutsenko claimed he informed the Prosecutor's Office during the investigation of his own case that Vovk was 'dirty', but was told that no case against the judge existed.

The press service of the Prosecutor General's Office have now officially denied the existence of any criminal case against Vovk. "We have to report that a decision by a college of judges of the Chamber of Criminal Cases of the Supreme Court on February 23, 2010 upheld the decision of the district court of Kyiv Holosiyivski court two years ago (16 July 2009) to rule as unlawful the decision to institute criminal proceedings against Serhiy Vovk ".

Lutsenko claimed the case against Vovk could be reopened in the event the court "makes the wrong decision..", in other words 'vlasti' have Vovk by the 'short and curlies'..

All sound very grubby...You would think that because Lutsenko's trial is being closely scrutinised and because Ukraine's judicial system has such a terrible reputation everything possible would be done to ensure everything was as clean and above board as possible, so why not change the judge? But this trial not about justice, it's about macho posturing and revenge ..

p.s. More 'dirt' on Vovk to follow?

Novice judging 'trial of the century'

Astonishingly, the 31-year old judge, Rodion Kireyev [see above], who is presiding over Yulia Tymoshenko's shambolic pre-trial hearing in Ukraine's 'trial of the century', has, until now, has only been involved in petty crime cases e.g. thefts of 1000 hryven, and everyday hooliganism. The hapless Kireyev, nicknamed "Harry Potter" in the media, was selected at random from a pool of judges..

His experience of multimillion-dollar fraud cases seems to be....er.. nil..

Looks like someone really "dropped him in the sh*t"...sent a boy to do a man's job..

Why the gas charges against Tymoshenko cannot be proven

So, "Tymoshenko is accused of causing a loss of some $190 million to the Ukrainian state because of a 2009 energy deal she signed with Russian Prime Minister Vladimir Putin."

How can anyone be so sure of this figure?

Has Putin or Gazprom ever admitted on the record that they would have sold the gas in question for $190 million less to NaftoHaz Ukrainy in the event that, in 2009, the Ukrainian side had been represented by anyone else? Not very likely...

So to claim anyone else would have got a better deal is pure conjecture..

Or does the prosecutor intend to prove Tymoshenko received a kick-back from Putin, as PM Azarov recently intimated? If the prosecutor intends to 'go down this route' what is Putin's reaction likely to be?

Yanukovych hastily cobbled together a subsequent gas deal and received a 30% discount on gas from Russia in the notorious Kharkiv agreement last year...but as the 'Kyiv Post' said at the time, the “discount” only gives shady gas-trading intermediaries fatter profit margins along the change from import to end consumer; the industrial-baron oligarchs are sure to benefit in all this murkiness.."

And recently PM Azarov received short shrift from Putin when he tried to renegotiate a better price one year later...so perhaps Yanukovych could be accused of selling the country short when he handed over Sevastopol to the Russian Black Sea Fleet in exchange for the 30% discount too. Maybe he could have got 35%? Or 40%? Who knows?

Yanukovych's Mezhyhirya interview

President Yanukovych has finally shown a select few journalists around his Mezyhirya home. Not one of them were amongst the 'troublemakers' who had initially requested such a visit over a year ago.

The interior of the building is decorated in the usual hideous/cheapo, tacky central European '60's communist dictator style - and does not give the impression that it is actually lived in..But the building itself is very grand, and the extensive forested grounds are palatial. They include fountains, lots of marble, waterfalls, a large swimming pool etc. The journalists behaved as if they were impressed.

Afterwards, they interviewed the president at length under a rather grand gazebo, fountain playing in the sylvan background. The president answered the soft-ball questions put to him in his usual bumbling style, but looked quite relaxed and confident inside his botoxed and buffed face.

One passage that struck me was almost at the end of reel 4 of the interview.

With a fancy swimming pool, fountain an exotic trees and flowers behind his shoulder, he said rather inarticulately: "Life has not been simple for me and has taught me to suffer/endure..[terpity]. In order to do this for people that have already suffered much. I cannot look at this when poor people are still suffering...the government should apply just policies for people..we need to reduce the distance between rich and poor.."

Somehow I don't think he would have convinced many viewers...

Naturally, he was not asked the obvious question: How did a man who has only worked as a civil servant, and never run any business acquire such a property? And naturally, not a word about the remaining 135 hectare of Mezhyhirya with its massively bigger 'clubhouse', tennis courts, riding range, boating lake, yacht club, ostriches, llamas, kangaroos etc. etc..Or about the swanky downtown Kyiv apartment, the Crimean mansions, hunting lodges, Donetsk properties etc.

p.s. How it can end if you get too greedy...

Many times in recent history have the palaces of greedy and vain leaders been ransacked But Yanukovych was probably more interested in running a street crime gang than studying history while at school..and he spent three and a half years in prison as a youth for theft and violent crimes..

Prejudice and intimidation

Not for the first time, PM Azarov has made highly prejudicial public statements concerning the criminal charges being faced by his predecessor, Yulia Tymoshenko.

When asked in a television interview why Tymoshenko had signed such an allegedly bad gas deal for Ukraine, Azarov explained: "Shortly there will be a trial. Let's listen to what will be said at the trial. I can only express my own supposition. There was an interest - of course - 100%" - I think, a personal interest. Because to move away from from the state's interests, and to sign such uncomfortable conditions, is difficult."

The premier declared: "What other interests could there be there, other than personal?"

With such statements emanating from the president and PM, and with the Ukrainian judiciary being so tightly controlled by Yanukovych's 'vertikal', how can any judge possibly acquit Tymoshenko?

The numerous grim-faced policemen glowering over Tymoshenko's shoulder in the courtroom during the pre-trial hearings [see previous blog] were there no only to intimidate the accused, but to intimidate the young bright-eyed, bushy tailed judge...

And yes, the behaviour of Tymoshenko's supported in the courtroom was also intimidatory - as was the presence of a large number of mysterious young persons, wearing tee-shirts with anti-Tymoshenko images, sent with the intention of packing the courtroom even tighter..

No fair trial can take place in such circumstances..but it has nothing to do with the pursuit of justice has it?

No way to treat a lady..

Photos from day 2 of Yulia Tymoshenko's pre-trial hearing..

Intimidation, no?

Is this Pol Pot's Cambodia?

What else can be expected from the Donbas thugs that are in power today..What are they so scared of? Shame on them...

p.s. In a measured, brief presentation during last Friday's 'Shuster Live' show, old NUNS hand Roman Bessmertnyi, made the following points:

Whatever the judges, the president, and the cabinet of ministers say, the Ukrainian nation has already made up its mind - the criminal investigations and trials of Yulia Tymoshenko and Yuriy Lutsenko are politically motivated. This is what most Ukrainians believe.

Western politicians in the EU and beyond, whatever the the current authorities tell them, are convinced, and will remain convinced that these are acts of political repression. [Bessmertnyi was, until a few days ago, the Ukrainian ambassador in Belarus..]

Between 80 and 90% of the supposedly balanced studio audience at the Shuster show assessed Bessmertnyi's statements positively on their monitors while he was speaking..

p.p.s. Although Yanukovych's ratings are falling, Party of Regions' membership is burgeoning - it is now one of the biggest parties in Europe with one and one half million members...The author of this article says that in Soviet times, being a member of "the party" could only mean on thing. It's the same now...if you want to get on - you have to join the PoR. Simple as that. Just as in Soviet times...You have to join "the party" to be 'more equal than the others'..

p.p.p.s. The number of Ukrainians who consider no-one is safe from being tortured by the law enforcement agencies has increased to 66%. The figure was 61% two years ago.

The number who think coercion is widely practiced by the police has increased to 59% over the same period.

Last year 51 persons died inside police establishments. This year the figure so far, is 26.. ..

Trial in a cattle truck

Yulia Tymoshenko attended the first day of her pre-trial hearing today - in a courtroom the size of a cattle truck.

One report describes the scene thus: "Puddle of sweat on the floor. Dictaphones and camera slip from wet hands. Journalists, deputies, security guards, lawyers and others pressed tightly against each other. About fifty people are squeezed into the 40 square meter Pechersk courtroom. The air in the room is fetid, devoid of oxygen, and there's a smell of sweat. [See jacket of Tymoshenko's bodyguard, above]

Head of the European Commission to Ukraine, Jose Manuel Pinto Teixeira, who attended the court session, called the conditions in the courtroom where the Yulia Tymoshenko 'gas case' is being held, "inhuman".

"I just attended a meeting of the Pechersk district court, where the case against former Prime Minister of Ukraine has begun. I can testify to the inhuman conditions in which it taking place. A small room without any air conditioning was filled with a large number of people. There were also many people who could not get into the room standing in the corridor. But I think I was lucky. I stood at an open window and was able to withstand [the conditions] and even did not finish up in hospital because of dehydration, " said Teixeira.

Yulia Tymoshenko's attourney, Sergey Vlasenko, requested the court be transferred to a more suitable room. He suggest premises of two thousand square meters which were available in the Writers' Union headquarters nearby, free of charge.

Tymoshenko herself said: "In Soviet times, when dealing with dissidents' court cases, there was a directive - choose a small room where you cannot not invite the press or others to attend these processes. Your honour, I would like to once again urge you not to humiliate people today in this room, do not show contempt to them and their health. Look all those present in the room, look what condition they are in. Already several people have passed out in the hall. So I would like to support the request of my counsel. "

Judge Rodion Kiryeyev, [presiding over the case] said he will consider the request "at the appropriate stage of the process." As a result, the court hearing continued in the crush..".

Other reports claim there were over one hundred persons in the courtroom at one time, including a number of suspicious and moody-looking 'plant's who had been there before it had opened. The report estimates the entire 9-hour 'sauna' took place in a room of 30 square metres.

Ukraine's legal authorities have had plenty of time to organise this 'trial of the century'. But IMO their intention was to deliberately humiliate Tymoshenko, and subject her, and her team in court to 'inhuman' conditions - [dare I say "make them sweat?"]

Surely a twice head of government, well known throughout the world, whatever the rights and wrongs of the case, deserves better. This took place not in a third-world despotic African country, but in a member country of the Council of Europe, a country that considers itself 'part of Europe'.

Karadzic and Mladic are immeasurably better treated in the 'Hague Hilton'..

It is a humiliation not for the accused, but for the Ukrainian authorities and judiciary..

p.s. Brief Euronews video report here

p.p.s. Several unedited video clips of this 'kangaroo court in a cattle truck' here.

Hryshchenko talking bollocks*

Several days ago in Strasbourg, at a PACE session, the Ukrainian Foreign Minister Konstantyn Hryshchenko explained that democracy in Ukraine, "is the same as in the British Parliament".

"We live in a country where democracy is a tool, a means of political competition. We live in a country where all political forces convey their [political] messages directly, " he said.

In Ukraine there exists, " a situation that allows all political forces to deliver their message and ideas to people, to those who support them or who challenge them."

"Thus, a situation exists where on weekly live television politicians answer the same questions. This is the same situation as in the British Parliament ," he said.

LEvko says this is bollocks.

Every week in the Westminister parliament, on live television, the British prime minister answers questions, frequently hostile, from the leader of the opposition and from opposition members of parliament, as well as from his own members of parliament. The leader of the opposition is allowed to ask six or seven questions, including follow-up questions in response to the PM's answers, during each session.

In the Ukrainian parliament, opposition deputies have been physically assaulted and intimidated on quite a few occasions by Party of Regions' deputies. in premeditated attacks. As a result, several have even had to be hospitalised.

Parliamentary voting is a farce. Multiple-voting 'piano-players' have turned the Verkhovna Rada into a laughing stock. Large numbers of deputies do not attend parliament for months at a time. Some never attend.

In Ukraine all leading television channels are owned by magnates linked to the Party of Regions.

In Great Britain television broadcast are scrupulously vetted to ensure that both government and opposition spokesmen of equal stature are granted equal airtime to air their views.

In contrast to Great Britain, in Ukraine the head of the ruling 'vertikal', Viktor Yanukovych never faces direct questions from the opposition. The rare television interviews that have taken place with him over the last year have been total 'brown nose' jobs.

During last year's presidential elections, Yanukovych 'chickened out' of live head-to-head television debates with his rival, Yulia Tymoshenko. She was left to debate with an empty chair.. [He didn't have the balls?]

Television talk-show debates are heavily biassed in favour of the ruling party. Representatives from right wing extremist parties, with no sitting parliamentary deputies, frequently feature more prominently that the parliamentary opposition. Air-time is heavily loaded in favour of ruling party representatives. [Detailed analysis about this here ]

Leader of the opposition, Yulia Tymoshenko has been virtually shut out from talk-shows for many months. She has been prevented from travelling at home and abroad to carry out her political duties.

The report by the US Trout Charteris and Akin Gump on Tymoshenko's alleged maladministration during her period in office, commissioned by the current administration, was given massive exposure in the Ukrainian media. In contrast, the recent US Covington and Burling preliminary report, commissioned by BYuT, which gave her a 'clean bill of health', was all but ignored by the mainstream Ukrainian media, even though both companies are comparable legal 'heavyweights'. [Links to these two reports here]

p.s. This is what Her Majesty's Government think about the democratic situation in Ukraine..

*Bollocks - testicles. Talking bollocks - speaking nonsense [UK English]

British 'Guardian' on Tymoshenko trial

Check this out...

Jarring prejudicial comments by president in Europe

Last Friday, in Bratislava, president Yanukovych was quoted as saying:

"[As] to Yulia Tymoshenko, my wish is that she will show [or will prove] her innocence in court, and can live, work, and occupy herself with her beloved matters."

In most countries, defendants accused of crimes do not have to prove anything - they are innocent until the prosecutor proves their guilt 'beyond reasonable doubt' in a courtroom. Yanukovych's statement, was therefore, highly prejudicial.

And yesterday, in Strasbourg, he was asked:

"And if we assume that Yulia Tymoshenko will, nevertheless, be convicted. What do you think.. what will be the legitimacy of next parliamentary elections, without the participation of the leader of the opposition?"

Yanukoych reply was again prejudicial: "It is too early to say - we need to separate politics and the law! In no case should any criminal activity be covered over by political slogans. I am convinced of this."

Mustafa Nayem's comments, in the conclusion of his 'Ukrainska Pravda' piece describing yesterday's visit by Yanukovych to the European parliament:

[This] response of the President was indirect. But one thing was obvious: no matter what, and without even waiting for a court decision, he had already decided that the activities of Tymoshenko are criminal. And all other attendant processes - including protests in Europe and at home against selective justice will be considered exclusively as 'political slogans'.

Nayem correctly points out that preventing Tymoshenko visiting Strasbourg on the same day as the president, despite appeals by the most influential group in the European parliament,

was an act worthy of a third-world country. Tymoshenko's visit would have changed nothing, but Yanukovych would definitely would have gained 'brownie points' for being fair-minded had she attended. As it was, Tymoshenko's ban merely reveals a morbid fear of the woman by the ruling authorities.

Meanwhile, the British ambassador in Kyiv, Leigh Turner, in a newspaper article, has declared:

"We have clearly explained to representatives of the Ukrainian authorities, that any impression of selectivity and disproportionate use of legal action [against leaders of the political opposition] may substantially and permanently damage the international image of Ukraine. At the moment we do not consider sanctions such as travel bans, appropriate. [But] in the case of the deterioration of the situation we will be forced to reconsider our position and will consult with our European and international partners as to the most appropriate response."

The problem for Yanukovych and his advisors is any retreat from their current plan to stage show-trials against Tymoshenko, Lutsenko and other opposition leaders, would be a huge humiliation. They now know the price that may have to be paid if the trials, which will be closely scrutinised, are not considered absolutely fair.

Another example of "Ukrainian justice"

In April I posted a blog about a 20-year old student, Hanna Sinkova, who together with some friends, fried some eggs and sausages on the Eternal Flame Memorial in Kyiv's 'Park of Eternal Glory', as part of an artistic event /prank /demonstration, call it what you will,.

The students were protesting about the wasteful consumption of gas at the memorial at a time when many WW2 veterans are receiving meagre pensions and living on the 'bread line'.

Absolutely no damage was caused to the bronze and stone memorial, and it is highly debatable whether the behaviour of the students, as recorded on this video, could be considered in any way loutish or abusive.

Yesterday, a Kyiv court ordered Sinkova be detained in jail for a further period at least until the next court session at the end of June.

Sinkova, who has been in prison for nearly three months, is charged with desecration of a grave [even though, apparently, no-one is buried there]. She claims to have been maltreated, threatened with violence, and subjected to unlawful interrogations [not difficult to believe]. If found guilty the poor girl could face up to five years in prison.

In matters of law Ukraine frequently seems closer to Tehran than Europe.

Someone recently said: "So Ukraine wants to move toward Europe...right now they're not even in the position to catch a tram to the edge of town...

p.s. The recent Covington and Burling preliminary report, in English, on two of the charges being faced by Yulia Tymoshenko, here

The pdf report by the US Trout Charteris and Akin Gumps on Tymoshenko's alleged maladministration during her period in office, in English, is here

Digital broadcasting in Ukraine to be in hands of one oligarch?

Viktor Yanukovych is often described as a man of the oligarchs, steered into the presidency by a a handful of mainly Donbas-based oligarchs in order their corporate interests prevail above all else. Almost invariably, sell-off's of state assets, and the granting of contracts, tenders, licences etc. by the state takes place in a non-transparent, rigged manner for their benefit.

An article in the current 'Dzerkalo Tyzhnya' highlights yet another highly dubious scheme, this time involving Digital Terrestrial Television Broadcasting. The scheme will enable one media baron to control Ukraine's entire DTT network. Furthermore, all of the country's other television broadcasters, including small independents and those not completely subservient to the ruling authorities, will be in his thrall.

Below is a summary and loose translation of portions of the 'DzT' article:

"Whether we like it or not, the problem of digital TV will sooner or later affect most domestic TV viewers. On June 16, 2006, in Geneva, 104 states signed a regional agreement to upgrade to digital broadcasting.

According to this document, on June 17 2015, the transition period when both analogue and digital broadcasting co-exist, expires. After this all parties to the agreement (including Ukraine and its neighbors) cease broadcastsing on analogue TV frequencies and move to a digital format.

Mysterious digital overlord

From the very start, the development of digital broadcasting in Ukraine has taken place in the traditional sluggish manner, but in 2010 the tempo of progress radically changed.

In late October, the Ukrainian National Broadcasting Council abolished all its decisions taken in relation to digital broadcasting over the previous three years, and a few days later it announced a tender competition to determine who the provider of entire digital network in Ukraine was to be.

Oddly, only two companies participated - one of them was what Ukrainians call "a purely technical" company, i.e a dummy bidder, who did not even bother to file all the required documents.

The other company, and winner, was the previously unknown "Zeonbud LLC " whose owners are registered offshore [surprise, surprise]. The company cannot point to any other successful projects in this field, and its true owners are not known.

All current broadcasters will have to reapply for digital broadcasting licences, and because of unclear rules and transgressions already made by "Zeonbud", some broadcasters may find themselves 'shut-out'.

The experiences undergone in previous years by the channels "TVi" and "Channel 5" clearly demonstrate that depriving a TV channel of its license is not a big problem for the authorities."

A few minutes Googling reveals that Rinat Akhmetov could well be the man behind "Zeonbud". He is Ukraine's richest oligarch, one of Ukraine's biggest media moguls, and, allegedly, one of Party of Region's biggest sponsors.

E.g. the following [which I've tidied up] from this link:

Donetsk trace

The proprietor of the company which will receive all dividends from introduction in Ukraine digital TV, is unknown. However, according to participants of the market, the company is close to the SCM [corporation owned by] Rinat Ahmetov. Before recent time "Zeonbud" belonged to the offshore company "Omni International Ventures Ltd" which is supervised by SCM [owned by Rinat Ahmetov].

However, in October owners of the company have [ex]changed. The new 100 % owner [of] "Zeonbud" is an unknown Cyprian offshore company "Planbridge Limited."

The rotten core of Ukrainian politics

This, from an article about Ukraine in the current Polish 'Newsweek' magazine:

"The relentless attack on the [Ukrainian] opposition is gaining strength. The case against Yulia Tymoshenko, at best, will prevent her actively participating in the running of the opposition during the parliamentary election campaign at the end of 2012. At worst, the former PM will be under arrest together with [some of] her party political colleagues.

It's not about political revenge, or a crackdown against the opposition. Since the beginning of his presidency, Yanukovych has been in the clutches of a powerful gas lobby associated with the intermediary gas trader, RosUkrEnergo. The group comprises oligarchs and senior officials from the president's close environment, e.g. the head of presidential administration Serhyi Lyovochkin, and head of the Security Service of Ukraine, Valery Khoroshkovsky. It is linked by such a complicated web of companies scattered around the world , that it is difficult to determine who actually controls the corporation.

We know one thing: this network of gas interests is effectively the bulwark of the Ukrainian political elite, and the defence of its interests is a priority for Viktor Yanukovych's team. The gas lobby in Ukraine fear nothing more than the return of Tymoshenko to power. Already, once in early 2009, she came to an agreement with Russia's Gazprom to eliminate intermediaries from the gas market. Now her ratings are growing again. In the May polls, 'Batkivshchyna', for the first time, was ahead of the Party of Regions, with a support of more than 15 percent."

Energy minister Yuriy Boyko, hero of my last few blogs who overpaid $150 million via a sham tender for a drilling platform at a time when Naftohaz Ukrainy and its ChornomoroNaftohaz subsidiary are tottering on the verge of bankruptcy, is of course one of RUE's 'godfathers'.

Mr Vanahels, Mr Gorin, Boyko's drilling rig, and Tymoshenko's vaccines

Following my previous two blogs, this investigative article entitled "Massive Ukrainian government money-laundering system surfaces", from 'Business New Europe', is a 'must-read'..

Energy minister Yuriy Boyko is trying to explain away glaring inconsistencies in the drilling platform scam. First he said that the $150 million mark-up [see previous blogs] was for helicopters and ships. Once is was clear that no helicopters were mentioned in the tendering documentation he put forward a second version - the $250 million received by the source company was for a 'base model' platform only. The $150 million paid on top was for 'extras' - just like in an automobile..he said.

Now head of 'Naftohaz', Yevhen Bakulin says the mark-up was to cover the cost of safety equipment to eliminate disasters such as befell BP's Deepwater Horizon platform in the Gulf of Mexico... And all these extras were to be provided by...the winners of the tender, 'Highway Investment Processing LLP, whose registered offices are over a plumber's merchant between a Chinese take-away and a tattoo parlour in Cardiff, Wales.

This pathetic floundering fools no-one, you guys. And Yanukovych's war against corruption is a sham..But we knew this all along didn't we?

p.s. the article may go to 'subscribers only' so I will be naughty and paste it complete, below:

Graham Stack in Kyiv
June 2, 2011

What do Ukrainian tank exports to Kenya, flu vaccine imports from Oregon and oil rig imports from Wales all have in common? They are all deals carried out by the same shell companies that are linked to a small set of Latvian directors. A scandal is unfolding in Ukraine that could be dubbed Vanagels-gate as more details of dodgy and outright illegal deals using a string of shell companies emerges, which can be traced directly back to the upper echelons of the Ukrainian government.

When the merchant vessel Faina was intercepted on its way from Odesa to the Kenyan port of Mombasa by Somali pirates in September 2008, international concern focused not only on the plight of the crew of 21, but on the cargo of 33 T-72 tanks, heavy weaponry and ammunition that the pirates found on board. The ship was bound for Mombassa, Kenya, but the pirates (and later US intelligence officers) said the actual destination was Juba in Southern Sudan – a country that is currently under a blanket UN arms embargo.

Who did the ship belong to and who was pocketing the profits from the embargo busting illegal arms shipments? Faina is owned by an anonymous Panamanian company Waterlux AG, which lists two more anonymous Panamanian companies: Systemo AG and Cascado AG, as executives. The latter two companies in turn both list Latvians Erik Vanagels and Stan Gorin as president and treasurer, but at the time no-one could make much of this information, dismissing the Latvians as mere nominees.

According to an investigation conducted by bne, Vanagels and Gorin – together with Latvian colleagues such as Juri Vitman, Elmar Zallapa and Inta Bilder – preside over a sprawling network of companies with Baltic bank accounts that have extensive dealings with the Ukrainian state, covering everything from arms exports to machinery imports.

Companies headed by Vanagels and Gorin won a government order in a March tender on behalf of state-owned oil company Chernomoreneftegas, Ukraine's Black Sea oil producer, for the delivery of $400m worth of oil drilling equipment.

The tender was won by Cardiff-registered Highway Investment Processing LLP, which lists Stan Gorin as a director according to the UK's Companies House. The only other company to "compete" in the tender was Falcona Systems Limited, registered in New Zealand and listing another Latvian, Inta Bilder, as director. It will come as no surprise that this company was founded by Interhold, which lists the ubiquitous Erik Vanagels as a director.

In other words, there was no competition for the oil equipment order, which was parcelled out to the Latvian cabal in a sham of an tender. According to Ukrainian weekly Zerkalo Nedeli, the producer's price for the oil equipment was only $248.5m, so someone made a handsome $150m profit from the deal for doing nothing more than some paperwork.

The Latvian cabal is politically non-partisan, having done similar deals under the previous Ukrainian administration. On May 28, a US court in Oregon found that US-registered company Olden Group LLC had illegally overcharged the Ukrainian government $19m for flu vaccines during the swine flu scare of autumn 2009, according to a government press release.

President Viktor Yanukovych ordered an investigation into the medicine purchases after taking office in 2010. The investigation by US detective bureau Trout Cacheris found $40m of state purchase of vaccines and medical equipment in the two previous years had all been put through the same network of offshore intermediaries with bank accounts in Lithuania and Latvia. Vanagels, Gorin and another member of the network, Juri Vitman, were linked to all these companies, which the investigation found routinely inflated prices by 50%.

Vanagels' role is only coming to light now as the local press starts digging out more and more information on the Latvian cabal and its ties to the present and past administrations. The network's activity can be traced back over a decade to the establishment in the mid-1990s of Ukraine's state weapons export monopoly Ukrspetseksport. Evidence suggests Venagals, Gorin and Zallapa have scores of companies dating from that time registered around the world - Ireland, the UK, New Zealand and Panama – and those are only the ones that have come to light so far.

The Ukrspetseksport connection continues right up to the present day as the Faina scandal reveals. Ukrainian court records reveal that contracts for goods shipments carried by Faina's sister ship, MS Brilliant, which plies its way weekly from Odesa to Syria on behalf of an Ukrspetseksport partner company, were in the name of Panamanian offshore Ridemax Systems Inc, a sister company of Waterlux AG.

The talented Mr Vanagels

According to British director records, there are in fact two Erik Vanagels, both registered at the same Riga address, pointing to a father and son team – one, a 44-year-old Latvian businessman is apparently the active party, while the Erik Vanagels that features so ubiquitously as a director is his 71-year-old father. Neither responded to attempts to contact them by bne.

bne visited the listed address, which was a fairly rundown place behind a jeans store (see photo above) - not the sort of place one would expect to find someone who owns an oil rig. The man who answered the door, dressed in overalls, said Vanagels - or rather a relative of Vanagels (possibly a sister in law or sister) - used to live there "a long time ago." He had no idea where they were now.

Are Vanagels and Co. anything more than nominees fronting for Ukrainian officials? Apart from the overlapping Baltic directorships and bank accounts, one pointer to a coherent organisation is that Vanagels and Co. do not only head shell companies, but also act as directors of a wide assortment of online foreign exchange trading sites. The online High Yield Investment Product (HYIP) schemes are basically glorified Ponzi scams, such as HYIP "cherryshares" that went offline in December 2010 to the despair of its investors. The site was owned by New Zealand-registered Brooksell Universal Limited, which was under a Inta Bilder and Vanagels directorship.

In December 2009, the US Securities and Exchange Commission (SEC) cracked down on a Latvian Ponzi scheme called Rockford Funding, alleging it had taken over $10m off gullible investors in a matter of months. It transpired that investors' money had been transferred to Latvian banks Rietumu Bank, Regional Investment Bank JSG and Trasta Komercbank. Of the linked companies listed by the SEC, one was a UK company set up by Vanagel's Milltown Corporate Services and Ireland&Overseas Acquisitions – companies in the 1990s that were heavily involved in setting up suspected Ukrspetseksport fronts in Ireland and England. A second company named by the SEC, Panamanian Houseberg Impex Inc, was none other than a sister company of Waterlux AG, the owner of the ill-fated Faina, bringing together two apparently very different worlds - piracy and arms smuggling, and online scamming.

While the Vanagels network clearly poses questions about Ukraine's capacity to fight corruption, with these schemes systematically conjoined to the state, it also raises questions about the willingness of Baltic banks to comply more than superficially with money-laundering requirements, especially in a post-crisis situation where the legal easy money has dried up.

The US sent shockwaves through Baltic banking by blacklisting two Latvian banks in 2005 under the Patriot Act on suspicion of terrorist money laundering, one of which was forced to close. A diplomatic dispatch from Turkmenistan in December 2007, released by Wikileaks, bemoaned, however, that little seemed to have changed in Baltic banking, with Turkmen officials increasingly holding cash in Riga bank accounts.

Parex Banka, now state-owned after getting into trouble in 2008, confirmed to bne that Juri Vitman - one of the Vanagels' network named in the Trout Cacheris investigation - was a client manager at the bank until 2006.

The danger for the Baltics is that money-laundering activities re-import corruption to home territory. One such Latvian affair involving impounded cars was unmasked in 2008-09 and featured a security company with ties to interior ministry officials - Stab 58 - and a New Zealand front company called Geomark, which has almost inevitably, Erik Vanagels listed as director.

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...