The oligarchic democracy. The influence of business groups on Ukrainian politics

I can thoroughly recommend a superb, recently published piece of work entitled:  "The oligarchic democracy. The influence of business groups on Ukrainian politics", from the excellent Polish 'Centre for Eastern Studies' [OSW]

"A definite majority of papers concerning contemporary Ukrainian politics as a rule disregard or deal with this subject very superficially, while it is impossible to understand modern Ukraine without understanding a number of dependencies existing between the political and business elites there.."

Below is a summary:

• The Ukrainian oligarchic system developed into its ultimate shape during Leonid Kuchma’s presidency (1994–2004). Although this system has undergone some form of evolution, it appears to be very durable. Oligarchic clans emerged in the mid 1990s and would gain a dominant influence on the country’s political life over the course of a few years. The Orange Revolution triggered a reshuffle among the oligarchs, but the system itself has remained unaltered. Representatives of big business still have a decisive impact on the politics and economy of Ukraine.

• Big business not only controls entire sectors of the Ukrainian economy and the electronic mass media—it also has a vast influence within political parties. It is often the case that the overriding goal of a given grouping’s existence is to represent the oligarchs who sponsor it. A network of mutual connections exists between politicians and oligarchs. In some cases these connections are so durable that it is fair to say that oligarchic groups have been formed (consisting of businessmen, politicians and state officials who support each other). Representatives of big business are often much more important players on the Ukrainian political scene than the politicians themselves. One may risk stating that it is the interplay of the interests of the oligarchs that is the real mechanism which shapes Ukrainian politics. When giving their support for a given political grouping, representatives of big business are guided by nothing more than their own interests, and they do not identify themselves with the views of the political parties and politicians they are offering financial support to. If the political configuration changes, the oligarchs usually have no problems finding common ground with the new government.

• Although the oligarchic system does have some positive elements (for example, it contributes to pluralism in political life and the media), it needs to be stated that the overall influence of Ukrainian big business is harmful and hinders the country’s development in both political and economic terms. The monopolisation of the key economic sectors has constrained competition and is one of the causes of the unfavourable investment climate in Ukraine. The dependence of most political forces on big business means that the government in many cases is guided by the interests of the oligarchs who are sponsoring it instead of the interests of their country; this often leads to multi-billion dollar losses in the Ukrainian state budget.

• The influence of the oligarchs on Ukraine’s foreign policy is limited when compared to economic or internal policy. They do not seem to have a coherent strategy in external relations, but their actions resulting from their individual interests often have a significant impact on Ukraine’s behaviour on the international arena. Sometimes their influence serves the Ukrainian national interest. However, where the interests of big business come into conflict with the interests of the state, oligarchs lobby (often successfully) for their own benefit.

• In some sectors (primarily metallurgy), representatives of big business are the main barrier to Russian capital expansion in Ukraine. Russian business is their key competitor on foreign markets. However, oligarchs are sometimes forced by the circumstances to sell their businesses, and Russian investors are often the only prospective buyers in such cases. Given the high degree of ownership concentration in the hands of relatively few oligarchs, it is very likely that Russia would take control of a number of Ukraine’s strategic companies should an emergency situation arise (for example, the second wave of the economic crisis).

• When Viktor Yanukovych won the presidential election in 2010, representatives of one political grouping, the Party of Regions, gained strength to an extent unseen so far in Ukraine’s history, and completely monopolised political power in the country. The coalition partners of the Party of Regions and opposition groupings have been marginalised to a large extent. The network of the groups of influence which emerged after the Party of Regions took power has remained essentially unchanged over the past two years. The government and the presidential administration have been divided between the RUE Group and the ‘Donetsk clan’, currently the two strongest groups.

• The emerging business of ‘the family’ – this term is used to refer to the people who are directly linked to President Viktor Yanukovych and his sons – is a new phenomenon. The political and economic expansion of ‘the family’ began shortly after Yanukovych took office as president of Ukraine, and gained momentum in 2011 and in early 2012. Although Yanukovych’s political power is stronger than that of any other president in Ukraine’s history, the financial strength of ‘the family’ is still limited.

• A further strengthening of‘the family’s’ position in business atthe expense of other oligarchic groups is very likely to bring about a conflict between Yanukovych and most representatives of big business. The consequences of this are difficult to predict. The concentration of huge political power in the hands of Yanukovych has already given rise to concern among oligarchs, including those who have so far formed his political base.

• It seems quite unlikely that a system resembling the Russian model, where big business is subordinate to the government, will be created. Yanukovych’s main weaknesses are the limited number of people who he can see as unconditionally loyal to him and the strength of the other oligarchic groups. It seems that the most likely scenario for the development of the situation in the next few years (at least until the presidential election in 2015) will be the development of a compromise between the oligarchs and President Yanukovych. If this is the case, ‘the family’ would gain an important but not dominant position in the model of power and business in Ukraine.

• The political influence of those oligarchic groups which are not linked to the governing Party of Regions has lessened significantly since 2010. However, this has not led to any major ownership changes so far. Other groups have managed to keep their assets, although the government has taken some action aimed against their representatives. However, financial support from big business for opposition political parties has either ceased or been significantly reduced.

Proof of the influence of 'the family' was provided at the Donbas Imternational Investment Summit which was addressed by Yanukovych Sr. today.  His eldest son was constantly in the company of Ukraine's top bananas - photos here

'Forbes' accuse Fuel and Energy minister Boyko of serial theft

Yuriy Boyko has been Minister of Energy and the Coal Industry of Ukraine for exactly 30 months.

In a recent article, 'Forbes.ua' allege that during this time, Boyko and companies linked to him, have won contracts from his ministry totalling more than $5.5 billion.

When the state gas company 'Naftohaz Ukrainy' requested tenders for two deep sea drilling platforms their final cost turned out to be $1.4Bn, even though shady 'middlemen' allegedly linked to Boyko paid the rigs' builders only $400m for each one. Much has been written about these 'vyshky Boyka' and the massive 'rake-offs', including by your humble blogger.

But apart from this scandal, Boyko is accused of involvement in four further resonant cases.

The first concerns the 'Yevrotrubplast' trading company. Regional gas companies have allegedly overpaid this company millions of Hryvnya for large diameter pipes. The managing director of the trading company is an old pal of Boyko's. Total loss to the 'oblgas' companies is estimated at 850 million Hryven.

The second concerns the 'Ukrenergomotazh' company which constructs electricity supply networks connecting nuclear and other power stations, and consumers. One of the company's directors runs a fuel trading company - with Boyko's wife. 'Forbes' estimates 'Ukrenergomontazh' have received 3.7 Bn. Hryven 'over the odds' in state contracts.

The third concerns the Cyprus-registered 'Benzol' company which supplies explosives to Ukraine's mines. Once Boyko became minister this company have won the lion's share of all contracts to supply either state coal mines or companies linked to Boyko. Overpayments are estimated at 200m. Hryven.

The fourth concerns payments to 'Truskavetskurort' health recuperation complex which is part-owned by an associate of Boyko's. Ukraine's national insurance agencies, whose management has ties to Boyko, have overpaid 'Truskavetskurort' over 100m Hryven for their services, claim 'Forbes'.

If the president's son can do it, why can't ministers? Yanuk jr. has been registering companies in Switzerland and Holland to minimize payment of taxes when his outfits [for which, according to his dad, he works so hard] export coal abroad.

A bit of history..and Lazarenko - his rise and fall...

Interesting interview with Aleksandra Kuzhel in 'Ostro' recently.

Originally from Konstyantynivka in Donbass, she's been at the heart of Ukrainian politics for many years. She's worked for Kuchma, and Yanukovych in PoR,  as well as for the murdered Yevhen Shcherban.

 Aleksandra Kuzhel was until recently a close confidente of Serhiy Tihipko in his now-defunct 'Strong Ukraine' project, but is now a defender of Tymoshenko.

Tihipko is currently deputy PM, and deputy PoR chairman..

Kuzhel complains bitterly about the two years that 'Strong Ukraine's' leader in Donetsk, Vladislav Dreger, has now spend in jail with no prospect of trial. She claims Dreger probably 'crossed' Yanukovych's son, Aleksander, in a business deal and is now paying the price...
                                                 
When asked whether Kuchma ordered the murder of Yevhen Shcherban, she replies:

- "Hardly. Kuchma is not capable of such a thing. When Gongadze was murdered, I was the first to confidently declare it was not Kuchma... Kuchma can yell at you and blow you out, but he is a man of the sixties. He could not even send anyone to prison. He did not imprison anyone all the time he was president. Gongadze's murder was blatant provocation. In the Scherban case, I'm sure it was not Kuchma. And it was not Yulia. Look where all his property ended up, and draw your own conclusions."

Kuzhel was asked: "You worked with Kuchma for quite a while you know this man well. Tell me why did he began to push Yanukovych [to head the cabinet, and to run in the 2004 presidential elections]?

Why did Kuchma go with the "Donetskiites?"

- "Kuchma never liked Yanukovych. Never trusted him. On this issue the decision was made more by his team - Litvin, and Liovochkin. They lobbied for Yanukovych. I myself asked Kuchma the question - why such a choice, why not Tihipko, who's from Dnepropetrovsk? Kuchma told me - your Tihipko has been frightened off... a comfortable place as the head of the National Bank suits him. Nobody at the time was ready to fund the authorities' election campaign, except Donetsk. At the same time, everyone knew that there would be a very serious fight put up by the "Oranges", and they needed something to oppose this. They understood the consequences of Yushchenko coming to power. Today Yushchenko says that he did not succeed, and puts all of the blame on Tymoshenko. You know, these are the complaints of an impotent man who blames a woman for his problems. He could never have been an effective president because he was never an effective prime minister."

- "Did you think that Yanukovych would be better?"

- "Do you know the difference between the campaign then and the campaign of 2010? They were built under different presidential powers. Yanukovych has usurped the powers Putin now has, but then Kuchma had it carefully all planned out. They were going to do what Putin and Medvedev did - place Yanukovych into the president's office, with Kuchma appointed as his powerful prime minister. In fact, it would have been a third term for Kuchma."

- "So why did a weak Yushchenko win, and Kuchma and Yanukovych lose?"

- "They lost not to Yushchenko. They lost to the people of Ukraine. He did not have the resources to disperse the huge number of people [who staged the orange revolution] to suppress such a protest. Kuchma would never do that....But Yushchenko was pushed all of his life by other people such as Tymoshenko. Poroshenko, Zinchenko. Without them, he would be a complete zero."

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In a few weeks time, after serving a long prison sentence, former PM Pavlo Lazarenko will be released from jail in the USA.

'Forbes.ua' run an article about Lazarenko's business empire, the people who assisted in its construction, and what remains of it.

The article contains a small graphic with the following titles: In 1995-1997 Tymoshenko was president of UESU - "Lazarenko's milch-cow". Serhiy Tihipko ensured good cooperation between his PrivatBank, and Lazarenko and his structures.

Tihipko briefly served in Lazarenko's cabinet and also in Yushchenko's cabinet.

All these people became exceeding rich..some are now 'under the wagon, others are still riding on it..'

Anyhow, here's a brief resume of the 'Forbes' item:

When U.S. authorities froze the accounts of the former prime minister and his structures they were officially valued around $ 280 million. Right now this would place Lazarenko in 29th place in the list of richest Ukrainians. Some however, estimate Lazarenko's weath as exceeding $2bn. 'Forbes' say, "Judging from what we know today, it is no exaggeration."

Before the collapse of the Soviet Union, Lazarenko was chairman of a collective farm, in charge of the Department of Agriculture and Food Industry of the Dnepropetrovsk regional committee of the Communist Party.

At that time the heavily industrialised Dnepropetrovsk region was full of armament factories and steel plants; it was the preserve of "red directors" who were all-powerful. However, Ukraine's first president, Leonid Kravchuk got on badly with this Dnipropetrovsk clan, and in their turn the bosses of the defence, chemical and metallurgical enterprises of region hated Kravchuk, who they considered to be a traitor to the Soviet Union and a nationalist.

In March 1992, under strong pressure from the "red directors", Kravchuk agreed to appoint Valery Pustovoitenko, the Dnipropetrovsk City Council Chairman, as his governor in the region. But when the president issued his decree he dumped Pustovoitenko and surprisingly named the 'agrarian' Lazarenko as governor.

Lazarenko improved the local economy but also immediately intensively started 'growing' his own business empire which included, agrobusinesses, petrochemicals, retail outlets, gas stations, restaurants, pharaceuticals, etc. His companies were frequently engaged in barter chains between energy companies, farmers and exporters. He was active in accumulation of property assets via various privatisation schemes.

In September 1995, with the country facing serious economic problems, Kuchma transferred the energetic governor of Dnipropetrovsk to Kyiv, making him first deputy prime minister, in charge of fuel and energy.

As a member of the cabinet, he immediately undertook the redistribution of the most profitable branch of the Ukrainian economy - the domestic gas trade, which was in chaos. The Russian "Gazprom" were receiving little, if no payment for gas, and were demanding order be restored  At the end of 1995, all the regions had been divided between the three Ukrainian mediators who would supply gas to industrial consumers. Two of the most wealthy areas - Dnepropetrovsk and Donetsk - were assigned to "United Energy Systems of Ukraine" (UESU),  run at that time by Yulia Tymoshenko. She had worked under Lazarenko previously in the petroleum market in Dnipropetrovsk.

At its peak, UESU was served by 2,000 companies which formed long, interconnected barter chains. "Gazprom" was also paid by barter schemes. In 1996 UESU was turning over around about $10Bn.

Subjugation of the Donetsk region was much more difficult for Lazarenko. It was the only region where UESU had to work through a local broker - Industrial Union of Donbas [ISD]. The local elite rebuffed Lazarenko's appointee, Sergei Polyakov, and in August 1996, the Donetskiites insisted their nominee, Viktor Yanukovych, be appointed Polyakov's deputy.

The fall of Lazarenko was as rapid as his ascent. He had made enemies not only in Donetsk. Kuchma's inner circle, including secretary of the National Security and Defense Council Volodymyr Horbulin and head of the president's office Dmytro Tabachnyk [who is in PM Azarov' current cabinet], where whispering in in ear that Lazarenko was plotting to replace him.

Kuchma was annoyed by the-then Prime Minister's ambitious aims The president sacked the State Property Fund Secretary, Yuriy Yekhanurov, because he had begun to carry out Lazarenko's orders.  [No doubt for a piece of the action.  Yekhanurov claims that at the time he did not know about Lararenko's corrupt schemes...ho,ho,ho...Yekhanurov, of course, replaced PM Tymoshenko when she was sacked by Yushchenko and, as acting PM, arranged shady gas deals himself during the 2005-06 gas war...LEvko]

In the summer of 1997 Lazarenko was sacked, and in September 1998 prosecutors opened a criminal case against him. In December, the former prime minister was arrested in Switzerland. Released from prison on bail after a short stay in the country, he fled to America, where he remains to this day, serving 'time'.

Lazarenko's business empire began to fall apart soon after his departure. Kuchma immediately kicked UESU out of the gas business. Lazarenko later accused Kuchma's son-in-law Viktor Pinchuk of misappropriated nearly everything that owned, including the Nikopol Ferroalloy Plant.

Property, hotels and factories in Dnepropetrovsk, passed under the control of former colleagues and allies, especially those in the "Privat" group.

The new owner of one of the hotels, Hennadiy Axelrod was killed in the city several months ago, an event I wrote about in previous blog.

Kuzmin exposes himself as laughing stock [updated]

Ukrainian deputy prosecutor Renat Kuzmin's scandalous letter to Senators? Congressmen? [who cares?] is a joke.

It is so poorly argumented, so poorly translated,  it makes "doctor of law, professor, National Academy of Public Prosecutor of Ukraine, deputy prosecutor general of Ukraine", Kuzmin a laughing stock.

Kuzmin's blind arrogance and incompetence is totally exposed. His unprofessionalism, and that of the Ukrainian authorities, is truly frightening.

Party of Regions and Ukrainian authorities pay U.S. lobbyists and PR advisers hundreds of thousands of dollars which they gladly take..Could not any of them spend a few minutes proof-reading this crap?

Many serious commentators say Kuzmin is blacklisted already in the USA. This letter further reduces any likelihood of him receiving a visa.

But it wasn't written for US politicians really; the true target was anti-western PoR regions voters...

p.s. One commentator described Kuzmin at the recent YES conference, thus:  "He looked like a bandit, behaved like a bandit and spoke like a bandit." We now know he also writes like a bandit...


Update: 'Kyiv Post' have now reposted a upgraded, totally official version of the the letter mentioned above. It is still an embarrassing joke...they have nothing to apologise for...

     

Yanukovych Jr's. incredible rise

My previous blog reveals that president Yanukovych's older son, Alexandr, is now the most successful businessman in Ukraine when it comes to winning state tenders.

'Forbes.ua 'recently ran a story explaining how his business operates.

Here is a summary:

In the past year Yanukovych Jr.'s wealth almost doubled. In April this year he entered the list of Ukraine's top 100 wealthiest businessmen.

His Ukrainian Development Bank is one of the three most dynamic banks in the country [It's CEO, Valentyna Arbuzova, just happens to be the mum of the chairman of the National Bank of Ukraine].

Companies set up by Yanukovych Jr.'s top managers, or registered at the address where his companies are located, this year won more than  5 billion hryvnias worth of public tenders for the supply of mining equipment and coal.

A significant portion of the companies controlled by Yanukovych, Jr have no website so it was difficult for 'Forbes' to find out the names of the 'brilliant' managers who he claims have made his companies so successful, but 'Forbes's journalists knocked together the graphic above. When it comes to answering questions about the the president's son's businesses, Donetsk businessmen become paranoid. Most refuses even informal communication.

Alexandr Yanuk business empire is run from the top six floors of this Donetsk business centre. [Photos and graphics from 'Forbes']

PoR completely dominate state tendering competitions

'Forbes.ua' are systematically gathering information on the persons whose companies have been winning state tender competitions, in terms of value, since the beginning of 2012. Graphs and lots of other information here

Leading the pack is Yanukovych's son Oleksandr; second is Rinat Akhmetov.

Oleksandr Tislenko, Chairman of 'Altkom', linked to lots of Euro2012 machinations, is in third position.

Firtash is in fourth position, then Yefremov, Yanukovych's fixer Ivanyushchenko....and so on.

[More on the shady Altkom outfit, and other names on this list, from the 'Independent' here .]

How can such a bunch of people yield power to political opponents in elections?

Mezhyhirya video

The website of 'Segodnya' newspaper, owned by Rinat Akhmetov, has posted an article and video trailer about president Yanukovych's infamous kitch 'Mezhyhirya' residence...interesting..

Victims of highly-placed raiders write to Obama

The 'ORD' website describes how V.R. deputy Artem Pshonka, son of current Prosecutor-General Viktor Pshonka, is trying to seize the Mykolayiv-based 'Agrofirma Kornatskykh' agro-company by the dirtiest of means. 'ORD' call Pshonka Jr. 'raider No.1 in Ukraine'. His dad Viktor  is an old pal of Yanukovych from the bad old days in Donetsk...

The workers of the company have written a letter written to the White House, taking advantage of a recent high-power visit to the USA by Ukrainian officials, and Yanukovych's current visit to the U.N. in  New York:

U.S. President Barack Obama
By Congress and the U.S. Senate
To U.S. Attorney General

APPEAL

Dear President Obama,
gentlemen congressmen, senators,
Mr. Attorney General of the United States!

By you are turning the Ukrainian peasants, driven to despair by the Ukrainian authorities, whose leaders are now in the U.S.., the Ukrainian peasants, driven to despair by the Ukrainian government , whose leaders are now in the U.S.. They tell you about their domestic and foreign policy, asking for credits, offering to invest in Ukraine.

Know: everything that they tell — a complete lie, they always say one thing and do quite another. All their policies are reduced to one — a steal as much as possible, to enrich themselves through corruption and capture another’s property. Democracy, justice , freedom of speech, rights and freedoms, human rights in Ukraine this power destroyed.

Yanukovych trampled all this by creating a so-called vertical of power, which is actually organized criminal groups of civil servants. Basically what they do — stealing everything that is possible, including loans to U.S. and international banks. So again the money that you give through “kickbacks” and other criminal schemes go into the pockets of top Ukrainian leaders, and close to

Think — you by U.S. taxpayers finance the Ukrainian mafia, promotes corruption in Ukraine! Immediately criminal cases, arrested and questioned by the Ukrainian authorities, who are in the U.S., for theft in Ukraine from international and U.S. banks, the IMF, the World Bank. Obtained loans from you if you give them will help the current government also distort the results of the parliamentary elections 28.10.12, because everything exclusively all she does is aimed at their

Approximate Yanukovych, including Ukraine’s Prosecutor General Pshonka and Minister of Interior Zaharchenko , with subordinate government officials engaged in massive racketeering business, taking away from the legitimate owners of the property, funds, companies, including foreign ones. A striking example is the process of taking power “Agrofirm Kornatsky” to which we all have relation both workers and landlords.

Over two years, without exception, heads of government, but rather, all the gangsters from public administrations, inspectorates, police, prosecutors, led by Prosecutor General of Ukraine Pshonka falsify against fair nor innocent heads LLC “Agro Kornatsky ‘criminal cases arbitrarily arrested and tortured in no way guilty CFO Lyudmila Nikitkinu, almost completely paralyzed the work of the

They rigged for 15 criminal and administrative dozens of cases not investigated and not submitted to the court, because it is unfounded. The method of falsifying one case followed by another, which involved against Yulia Tymoshenko, applied to business. All Ukrainian state system works to destroy honest business and honest people.

Behold — the real policy of Yanukovych and his gang!

Moreover, pay attention, in our case — in relation to a foreign company, which is a member of the American Chamber of Commerce in Ukraine and the American-Ukrainian Business Council! Destroying operating in Ukraine, Ukrainian absolutely law-abiding business, owned by foreigners, the highest Ukrainian authorities at the same time calling other foreigners to invest and lend — do not trust and do not give because steal and plunder!

Please help us fend off criminal attacks Ukrainian authorities to release prisoner Lyudmila Nikitkinu. She is arrested for personal instruction Prosecutor General of Ukraine Pshonka to obtain, through physical and mental abuse, admissions to non-existent crimes. Woman tortured, kept in transit prison in inhuman conditions, illegally sent to misuse the court to continue the illegal arrest.

The current Ukrainian authorities all polls commit crimes against individuals, against humanity, against the state and the people. These criminals for which you want to create a special international tribunal, the Ukrainian people have therefore sincerely grateful to the international community.

Workers and landlords «Agrofirm Kornatsky »
We are waiting for answers at: village Chausovo-2, Pervomaiskyi district , Mykolayiv region, zip code 55235.

The ORD piece also includes a recent detailed 'Ukraina Moloda' article describing the persecution and arrest of Mrs Nikitin and the alleged abuse of power by the Pshonkas...

Picture of Artem Pshonka, complete with  the usual 'death stare', courtesy of 'Kyiv Post'

p.s. Following the recently-adopted US Congress resolution which threatens political sanctions against members of Ukrainian authorities for the imprisonment of  former Prime Minister Yulia Tymoshenko, rumours are spreading that some of Ukraine's top oligarchs are now beating a path to the U.S. embassy in Kyiv, pleading they are in no-way involved with the politically-motivated persecution of members of the opposition...oh, no...nothing to do with us...absolutely not... all the work of that nasty man Yanukovych...

Yanuk in the Big Apple

'Segodnya' claims Yanukovych met U.S. President Obama "secretly" on Monday.

During their "personal meeting" they allegedly talked about gas  production on the Black Sea shelf.

Seems rather odd....can the meeting be confirmed or denied?

If either Obama had agreed to meet Yanuk on a basis of strict secrecy - and the story leaked, or the story is bullsh*t, then P.o.t.U.S. will be 'pissed off' either way.

Big money pulls all the strings

Olha Rudenko, in her excellent 'KyivPost' article, highlights what everyone already knows - Ukraine's major political forces are to a large extent a sham - they are generously sponsored by a tiny number of country's mega-rich oligarchs for their own self-interest.

These oligarch's aim is to 'hedge their bets', Whatever the electorate decide, they can be reasonably sure their business empires will remain intact and their massive wealth unassailable.

Valeriy Portnikov points out in a recent article, any sanctions by Western countries against Ukrainian politicians and highly-placed officials in punishment for the roll-back of democracy in the country will not cause much distress for Yanukovych himself, his closest circle, or these oligarchs. Their assets and interests will remain largely untouched.

He concludes:
..Ukrainian society [is a]  a society of collaborators who lose their heads at the mere sight of the illegally enriched 'nouveaux-riches'.

While the opposition looks to the oligarchs for funding, while Ukrainian intellectuals run to them for funds for grants and other handouts, while Ukrainian universities take money from them, and even brag about this, while Ukrainian voters delight in observing giant objects constructed with money earned by unclear- or rather clear means, Yanukovych invincible!
..the people who love to talk about the democracy in the West then sell themselves for pennies, and even justify this all... deserve nothing better.

This is the question - are great swathes of Ukraine really ready for western-style democracy? Do they want this style of government at all?

p.s. So many candidates, particularly in the simple majority constituencies, are handing out food parcels, children's gifts and trinkets that this means of bribing electors is frequently not very productive. Votes simply forget who gave what and when..

Ukrainian television news in English....

If there is anyone out there is interested to see what many Ukrainian news broadcasts are like, and how crappy they are, check out these daily  1/2 hour English language news broadcasts 

Reminiscent of the stone-faced Communist bloc days?

More pressure on independent media in Ukraine

By passing an anti-defamation bill in the Ukraine parliament today that envisages criminal liability for defamation and libel, Yanukovych and his PoR goons are mimicking Putin..

Note: "Criminal defamation has been abolished in the UK since 12 January 2010 when the Coroners and Justice Act 2009 came into force. Section 73 of this Act abolished the criminal defamation offences, which were the offences of sedition and seditious libel, the offence of defamatory libel, and the offence of obscene libel....

One of the main reasons for its abolition was the view that the UK's retention of the archaic criminal offence of defamation justified its use by foreign countries to prosecute and imprison journalists, and to restrict free speech....." Source

Farcical performances by Ukrainian officials at YES

The 9th Annual Yalta Economic Strategy summit ended over the weekend. It was streamed live on the the Euronews site and elsewhere, and made interesting, even compulsive viewing.

'Kommersant' have a good write-up of the event.

Their conclusions: The EU and Ukraine did not hear one another in Yalta...But the most talked about performance was that of the black-hearted deputy prosecutor-general, Renat Kuzmin, who seemed out of his depth during a session about Ukraine and the Tymoshenko case.

This is what 'Kommerant' said:

"After the discussion was concluded, Renat Kuzmin left the forum, leaving its members to exchange their opinions - they were all negative. "This performance was the best anti-propaganda for the Ukrainian authorities. He looked like a bandit, behaved like a bandit and spoke like a bandit," said indignant  Senior Fellow Peterson Institute for International Economics, Anders Aslund. "I have no idea for what purpose he was sent here. I did not find any person, who was convinced." said former U.S. Ambassador to Ukraine, Steven Pifer."

Euronews described the session as "...almost farcical. Supporters of the jailed former Ukrainian prime minister railed loudly that the trial was unfair and political. The Ukrainian Foreign Minister and its Chief Prosecutor [sic] gave lengthy but completely irrelevant answers seemingly designed to play for time.."

Inna Bohoslovska, another member of the panel, countered criticisms of Tymoshenko's imprisonment with a vitriolic and totally irrelevant attack against the Germans. The Council of Europe's GRECO [Group of States against Corruption] "..has shown Germany a yellow card for a third time and are demanding criminal charges be brought against certain persons for exceeding their authority!" she trumpeted. [An unfortunate analogy - according to the rules of soccer, a second yellow card means a player is sent off the field of play.]

An agitated Ukr Foreign minister Hryshchenko, when accused by Tymoshenko ally Hryhoriy Nemyria of prejudicially declaring Tymoshenko  to be guilty before any verdict had been passed by court, pleaded: "I never travelled around the world saying Yulia is guilty or not. I defended our national interests which you you tried to sully...this is my job...and I will do this even if if it applies to my neighbour, my close friend, of even personally to you Viktor [Pinchuk, who was sitting next to Hryshchenko in the front row], I would do the same, if the court found him guilty..."

Former president Kuchma, sitting in the next seat along from his son in law, Viktor Pinchuk,  wittily retorted: "Thank God he didn't get to me...", to wry amusement of the audience...Renat Kuzmin, who was sitting directly opposite Kuchma on the podium, and who had, in previous years tried to 'nail' Kuchma for the Gongadze murder, sat stone-faced through this exchange.

Seriously, 'Kommersant' also claim: 'the Russian vector was strengthened - a significant delegation from Moscow was in attendance..."at the Y.E.S. president Viktor Yanukovych increasingly gravitated not to the West, but to the East".

Why did Yanukovych humiliate two ministers in such an overt manner?

Following on from my previous blog on Yanukovych's humiliation, (perhaps reminiscent of Stalin's Politburo?), of First Deputy Prime Minister Valeriy Khoroshkovsky and Economics Minister Petro Poroshenko ...

In his 'Politclub' programme broadcast on Wednesday on TVi, (Ukraine's last remaining independent television station, which is currently under serious assault by the authorities), Valeriy Portnikov gave a reply to the  question above.

He considers Yanukovych was sending out a blunt message: no-one is untouchable, not even the richest and most powerful.

 Journalists, against whom the authorities are now conducting an all-out war, do not have financial assets that can be squeezed or extracted. "But the people, on whom boots are being wiped today, in actual fact in preparation for criminal cases against them, they have the money...and they have to ponder over this...The example of Mykhail Khodorkovsky in Russia, who at first co-operated in the construction of the system that was created there, then became its first victim, should tell them - think about this...you are next in line..." says Portnikov.

"First they wiped their feet on us when they were destroying the broadcasting of TVi, then on Yuriy Lutsenko, then on Yulia Tymoshenko. Now they are destroying the last possibilities of dialogue between those who are not indifferent, and society. After this the turn will come for you, dear vice-premiers, ministers, and members of the Party of Regions.."

p.s. A couple of years ago, as head of the State Security Service (SBU),  Koroshkovsky was one of TVi's greatest enemies, actively restricting the television channel's access to the airwaves.

Yanukovych humiliates political heavyweights

Yesterday president Yanukovych publicly humiliated two of Ukraine's most experienced senior cabinet ministers: First Deputy Prime Minister Valeriy Khoroshkovsky, and Economics Minister Petro Poroshenko, treating them as errant schoolboys... or much worse.
[Story here ]

Both of these immensely wealthy ministers have built up, and now run, successful multifacetted business empires - they are also both active advocates of Euro-integration.

To take them down in such a course manner was highly stupid - a time will come when he will need their support. This is the time when the two ministers wil take their revenge..

Earlier today [Wednesday] Ukraine's one remaining independent tv channel, TVi, had its foreign currency accounts frozen by the Economy Ministry.

A few hours later Poroshenko ordered then to be unblocked...

Can Yanukovych depend on the MIA?

Opposition deputy Hennadiy Moskal, a wily old hand who knows the internal workings of the Ukrainian Ministry of Internal Affairs well was recently interviewed by the 'ORD' website and asked about the current situation inside this ministry.

Below is a summary of his views:

The current minister, Vitaliy Zakharchenko, [a 100% Yanukovych loyalist]  has gone AWOL, and the situation inside his ministry is 'very unhealthy'. Almost all of the 'top brass' are now 'Donetski'.

The MIA is beefing up its forces, buying in more equipment etc. to deal with any possible public unrest
situations in the near future. A likely economic crash and/or election falsifications could produce such incidents.

Morale is low amongst the MIA forces, experienced career officers are rather poorly paid, and are frequently leapfrogged in promotion stakes by less-compentent and more corrupt 'Donetski'. If serious disorder broke out, the police could well 'go with the people', as they did in 2004.

The SBU [security services] leak constantly information to whoever is willing to pay for it, including the opposition. The SBU have many stooges amongst the ranks of the opposition, but they are known...and ignored.

Parliamentary election candidates are not vetted either by the SBU or the MIA which will permit many with highly dubious or even criminal backgrounds to enter parliament. E.g. the 'boyfriend' of prominent PoR deputy Inna Bohoslovska was alleged to be well-known crime gang boss in the mid '90's  linked to several killings. But now he is standing for election to the Verkhovna Rada elections under the undeclared patronage of Bohoslovska.

[More on the this topic later]
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An, IMO brilliant recent Chatham House briefing Paper entitled: "A Ghost in the Mirror: Russian Soft Power in Ukraine" is summarised thus:

"For Russia, maintaining influence over Ukraine is more than a foreign policy priority; it is an existential imperative. Many in Russia's political elite perceive Ukraine as part of their country's own identity.

Russia's socio-economic model limits its capacity to act as a pole of attraction for Ukraine. As a result, Russia relies on its national myths to devise narratives and projects intended to bind Ukraine in a 'common future' with Russia and other post-Soviet states.

These narratives are translated into influence in Ukraine through channels such as the Russian Orthodox Church, the mass media, formal and informal business networks, and non-governmental organizations.

Russia also achieves influence in Ukraine by mobilizing constituencies around politically sensitive issues such as language policy and shared cultural and historical legacies. This depends heavily on symbolic resources and a deep but often clumsy engagement in local identity politics.

Russia's soft power project with regard to Ukraine emphasizes cultural and linguistic boundaries over civic identities, which is ultimately a burden for both countries."

Now Russia is applying ever-increasing pressure on Ukraine to join its Customs Union, which already includes Belarus and Kazakhstan...

Even Saturday's pro-PoR 'Segodnya' quotes an article from the influential 'Dzerkalo Tyzhnya', which claims Putin gave Yanukovych a ultimatum at their last meeting...if you don't join the Customs Union in two months, trade relations go into the freezer...

Yanukovych incapable of dealing even with silent protest by several journos

"A dozen Ukrainian journalists stood up and raised anti-censorship banners when President Viktor Yanukovich hailed his country's march to media freedom at the World Newspaper Congress in Kyiv on Monday, Sept. 3. "Ukraine has made its way, without exaggeration, from total censorship to an open society," Yanukovich told the conference as his security guards ripped banners saying "Stop censorship" from protesters' hands. Yanukovich did not react to the silent protest." [Source]

Most western politician do not mind the hecklers and protesters which they frequently encounter. Politicians before a microphone should be smart enough to think quickly on their feet and 'turn the tables' on those interrupting them, particularly if they know what is coming beforehand. It gives them an opportunity to show they care, and are passionate about the subject of which they are addressing the public.

At Monday's conference Yanukovych could have deviated from his 'bit of paper' and said: "You see, those journalists up there, they are free to express their opinions even right now...no-one is stopping them. I know them all well and I often discuss these matters with them. Is this not  proof that no-one is preventing  them expressing their views in Ukraine?"

He missed his chance, and continued his robotic droning.

His PR team deserve a kick in the a** because they certainly knew beforehand of the  journalists'  "Stop Censorship" protest . Yanukovych's PR guys  should definitely have had  a riposte prepared  for the president.

But this dumb bunch of bozos allowed a modest silent protest by a few journalists to turn into an embarrassment picked up by the world's press,  e.g. as by the Washington Post.

Election fraud becoming ever-more likely

Sonia Koshkina, in an LB.ua article, draws many parallels between the up-coming Ukrainian parliamentary elections, and those which took place in 2002, including the introduction of hollow-shell 'pseudo-parties' controlled by top oligarchs.

She notes that the current ruling party will not gain political momentum for several reasons: drought, particularly in the densely populated southern and eastern regions has hit agricultural yields hard, resulting in severe financial hardship for farmers. Prices of staple foods will soon inevitably rise steeply and food shortages may even occur, despite national broadcasters continuing to talk blindly only of 'economic improvements'. There are major doubts whether the current authorities can prevent further major slippage in the value of the hryvnya. Some experts say devaluation is unavoidable.

Faced with such uncertainty major electoral fraud by the authorities is becoming ever-more likely.

The last independent television station in Ukraine, TVi has been dropped by major cable tv providers from their base packages. All other stations are already controlled by the government, or are connected to those within the government.

TVi's editor in chief Vitaliy Portnikov claims this indicates the authorities are preparing for massive fraud , hence the decision made at highest level to destroy his channel before the parliamentary elections. Independent news media websites may also be targeted, he claims.

"I'm quite sure we are talking of a rebellious group headed by Yanukovych, which today has seized power. Its aim is to try to falsify all information, particulary about the progress, and the results of the parliamentary elections. This is in preparation by the Party of Regions and the government to systematically falsify the elections and subsequently seize total power in the country with a complete restriction of civil rights and liberties immediately after October 29 [election day].

An ominous prediction from a normally level-headed, experienced journalist....

Some say the greatest electoral frauds will be seen in the single-majority constituencies.There will be great competition there because the interests of many local candidates will be at stake. Leaders of local elites or their representatives wil be fighting for parliamentary seats from which they can lobby their own causes in central government. As a result their vote in the parliament will be easily bought. Candidates offering voters presents, food parcels etc. are already being regularly documented.

Yushchenko's shameful WSJ article

When most European and North American capitals have roundly condemned the politically motivated persecution of former prime minster Yulia Tymoshenko by president Yanukovych of Ukraine, Viktor Yushchenko, in his WSJ opinion piece "Ukraine's Democracy Hasn't Come Of Age"  cannot find one good word for the woman without whose support during the Orange Revolution he would certainly never have become president. 

Even though international observers had adjudged the 2004 presidential elections to be fraudulent, he was ready to 'throw in the towel'. It was Tymoshenko who rallied demonstrators in Kyiv's Independence Square until the elections were re-run and Yushchenko finally elected into office. 

The EU clearly recognise the current roll-back of democracy in Ukraine - and they have had enough of Ukrainian leaders' geopolitical playing off of Europe against Russia. 

Yushchenko claims: "..democracy and the rule of law have not yet come of age [in Ukraine]. They remain fragile; the gains of the Orange Revolution could still be reversed." 

The gains  of the Orange Revolution have been reversed 'big time' in the two and one half years of Yanukovych's presidency -  Yushchenko should hang his head in shame. 

Insensitive Yanukovych will rile Ukrainophones

Today in Kharkiv a Radio Liberty correspondent asked president Yanukovych a question. He suggested  the recently-passed controversial language law was divisive, and wanted the President to explain why he spoke only in Russian when he inaugurated a new Ukrainian Independence monument earlier in the day in the city.

A visibly annoyed president replied:"I always speak in any region in the language of the people who live there. And it is those who make such suggestions and raise such questions without considering the point view of people who live in this land, who split Ukraine. I've always been a supporter of the view that there should be understanding in the state and harmony, regardless of which region people live. Financing, attitude towards people and social programs for all will be the same ... And you, young man.. hear this...and tell everyone else: We will never divide people according to who speaks what language and in which region they live. All people are the same".

Note: According to the census of 2001 in the Kharkiv region 53.8% of the population consider Ukrainian their native tongue (3.3% more than in the 1989 census). The Russian language is considered native for 44.3% of the population (a decline of 3.8% since 1989)

Ukrainian remains the sole state language. Yanukovych is the president of Ukraine. Many Ukrainians consider their country's independence was denied for centuries by the rulers of the Russian, and latterly the Soviet empire, and that their language and culture devalued or oppressed by them.
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And this From 'Tyzhden.ua':

Over the past two years nine highly-place officials from  Yulia Tymoshenko's premiership period have been charged and prosecuted, but only the former PM and her Minister of Internal Affairs, Yuriy Lutsenko, are in prison.

Tymoshenko is facing further serious tax evasion and other charges dating back from more than a decade and a half ago.

 Lutsenko was sentenced to 4 years imprisonment with confiscation of property for exceeding his authority, and was recently was given a sentence of 2 years confinement for allegedly approving unauthorised surveillance in the criminal investigation into the poisoning of Viktor Yushchenko.

Former Acting Defense Minister Valeriy Ivashchenko had been sentenced to 5 years imprisonment last April for abusing his office but a couple of weeks ago the Court of Appeal suspended his sentence and released him from custody.

Former Minister of Environment George Filipchuk was sentenced in April this year to 3 years imprisonment for abuse of power. However once Filipchuk gave back 1.4 million hryven to the state a Kyiv Appeal Court reduced his sentence to a 2 year suspended sentence.

Former First Deputy Justice Minister Yevhen Korniychuk has been released from criminal liability under an amnesty the law. Korniychuk is son in law of former Chief Justice Vasyl Onopenko.

Three senior officials were sentenced for illegally releasing 11 billion cubic meters of gas allegedly belonging RosUkrEnergo company.

Former first deputy chairman of "Naftogaz Ukraine", Ihor Didenko, had been sentenced to three years in prison but prosecutors later reduced charges against him. Didenko decided not to appeal against the guilty verdict and he was released.

Former head of the State Customs Committee Anatoly Makarenko received a 4 year suspended sentencence, as did the former head of the Kiev regional customs service, Taras Shepitko. They had been found guilty of illegal customs clearance of natural gas.

The case against Makarenko and Didenko Shepitko was opened after Ukraine failed to defend its case in the Stockholm Arbitration Court where RosUkrEnergo won a lawsuit against Naftogaz.

Naftogaz were ordered to return to RosUkrEnergo 11 billion cubic meters of gas and provide and extra 1.1 billion cubic meters of gas in damages for breach of contract.

Former head of the State Inspection for Control of prices at the Ministry of Economy, Tetyana Rud was sentenced in November 2011 to 5 years for bribery  However, a court later reduced this punishment to 3 years probation.

The former head of State Reserve Committee Mykola Pozhyvanov, the former head of the State Treasury Tetyana Slyuz and former governor of Kharkiv, Arsen Avakov are currently being sought by law enforcement authorities. Avakov is in Italy.

Former Economy Minister Bohdan Danylyshyn has been granted political asylum in the Czech Republic.

LEvko thinks Yanukovych's wave of persecution is looking more and more like a vendetta against just the opposition's two biggest hitters...but everyone knows this anyhow...

And Yanukovych's insensitive attitude on the question of the Ukrainian language  will cost  more votes that it will gain him...

Yanukovych's problem...and a solution

I have just read, and can recommend, Masha Gessen's chillingly brilliant account  describing Vladimir Putin's unlikely rise to power in Russia and how quickly he dismantled democracy in that country.

Since becoming president two and a half years ago president Yanukovych has ploughed a similar furrow in Ukraine. There is already much to suggest October's Parliamentary elections will not be deemed fair by Western governments. One informed Polish journalist suggests: ".. [Ukraine] has been transformed into a country where elections are a playing field for manipulation, fraud, and total war.."

However, Presidential elections in March 2015 will be more difficult to steal, and if current trends continue the likelihood of Yanukovych being re-elected for a second term is not great. But any yielding of power to an opposition candidate is unthinkable - too many red lines have been crossed, the empire his family have built up recently would be smashed and, at best, they would  be forced to flee.

Vitaliy Portnikov, in an interesting article, suggests Yanukovych could be considering a solution to his dilemma - the creation of a new state, a kind of Ukrainian Transdnistria, with its capital in Donetsk, from where he could continue to rule. The recent upgrade in status of the Russian language [and the inevitable de-Ukrainianisation in this part of the country] could be a first step in this process.

The consequences for any such a split would be monumental...

p.s. Health and Safety note for Femen:

When operating hand-held power tools appropriate clothing should always be worn as loose-fitting clothing can be caught by moving parts. Safety glasses must be worn to protect eyes from flying, or splintering debris.

But....Long hair should always be held back with a band or neatly tucked away under a hair net or cap...so....silly girl. [Brightly coloured balaclava helmet to match shorts may have been appropriate]

Pussies strike fear into presidents..

I love this story on how humour and pussies can outwit the greatest efforts of a mighty political machine...and not only in Russia..

A friend sent me this with more details:

Ukraine cat-and-granny poster causes stir ahead of polls

A poster with an elderly lady holding a cat has caused controversy in Ukraine as preparations get under way for parliamentary elections due in October. The poster, put up in the east Ukraine city of Dniprodzerzhynsk, carried a humorous call not to vote for the ruling party.  Next to the picture of the lady with the cat, a caption said: "I have learned that my grandson voted for the Party of Regions. So I have rewritten my will so that my cat inherits the house." Within a few days, the top part of the caption that mentioned the party had been removed, leaving the granny merely declaring that her house goes to the cat.

Regional Governor Oleksandr Vilkul - also the local Party of Regions leader - had called the billboard's owners, demanding that "this outrage be dealt with", said a local news website.  Dneprodzerzhynsk Online said that there was nothing illegal or offensive about the poster.

"It is a shame, comrades, a shame," it said.   "Lives in danger"  A day later, the same website reported that the man behind the poster was Maksym Holosnoy, an opposition-minded head of a local village council. He told the website that the head of the billboard advertising company had been admitted to intensive care "following a telephone conversation with a high-ranking official".  Holosnoy also told Dneprodzerzhynsk Online that he was wanted by the police, but it was not clear why.  "It has been more than a month now and my lawyer cannot make it any clearer: we are not allowed to see any documents and we can't appeal," he said. "The example of our billboard is so telling. The Party of Regions has hundreds of billboards in our city alone, which it uses to proclaim that stability and prosperity have arrived. We only had one, which told the truth, albeit in a humorous way. Because of it, several people have suffered and their lives have been put in danger," Holosnoy said.

Fatherland, a major opposition alliance in Ukraine, described police interest in Holosnoy as persecution and offered legal assistance to those who created and put up the poster. "The government's reaction to humour once again points to the dictatorial leanings of [President] Yanukovych and his entourage. Being unable to laugh at yourself shows that the authorities are immature, and that the Party of Regions leaders are beset by complexes and phobias," the alliance said on its Facebook page. However, Dnipropetrovsk police denied Holosnoy was being prosecuted for political reasons. He was wanted for embezzling state property when he was a local official, the police said.  Meanwhile, in a YouTube video, Holosnoy said he was "being hounded" by the police because he is running as a candidate in the parliamentary elections.

Drilling platform scandal update

I have posted previously about kick-back deals involving hundreds of millions of dollars on the purchase via opaque off-shore companies, of deep sea drilling rigs to be used in the Black Sea .

Now Halliburton, the world's second largest oilfield services company, is getting drawn into this corruption scandal.

An letter from the company that was supposed to provide a fig-leaf to Ukraine's corrupt ministers and state gas company officials turns out to have less value than the paper it is written on.

This at a time when former Interior Minister Lutsenko is serving a four year 'stretch' in prison for allegedly providing perks to his driver...According to the prosecutors. the total damages allegedly caused to Ukraine’s budget was estimated to be $125,000...

Sliding to crackpot autocracy

On July 4 800 teddy bears descended by parachute onto Belarus territory from a light plane piloted by Swedish nationals. The pro-democracy stunt has created a mighty diplomatic bust-up between Sweden, the EU and Belarus dictator Lukashenko. [Video and story from Euronews here ]

Journalists in the country have been heavily fined for posing with teddy bears in a photo session, while others are currently detained and could face years in prison for posting pictures of the teddy bears on the net.

In Ukraine, crackpot deputy prosecutor general Renat Kuzmin says Yulia Tymoshenko is under investigation for assaulting a male prison guard and could face criminal charges. The slightly-built Tymoshenko has been suffering from a ruptured spinal disc for many months and is virtually bed-ridden.

And a  leading Ukrainian human rights spokesman, in his detailed analysis of Former Minister of the Interior Yuriy Lutsenko's current trial, says: "The court trial has vividly demonstrated that in our country absurdity is reality, and reality – absurd. If the [Ukrainian] legislation on investigative operations complied with the demands set out above of the European Court of Human Rights, this case would simply be impossible!"

Vitaliy Pornikov, concludes an article entitled 'The dragon and the teddy-bears' thus:

..observing the swift "Belarusization" Ukraine, I want to warn those who think that none of this concerns them. It does concern them. The dragon will not be sated with just Tymoshenko or opposition members. And even journalists will not be enough. The dragon will eventually devour everyone. Woe to the people who feed the dragon.

New parliament to be short-lived?

The 'Economist' writes about the pressure being applied on Ukraine's media here

They claim: "[October's parliamentary] polls (and the media climate in which they are held) must be fair enough to avoid sanction [from the West]. But they must also secure a majority for the ruling team in parliament."

Whatever the results of these polls, Sonya Koshkina of LB.ua predicts the seventh convocation of the Verkhovna Rada will be truncated at some point. Here's a summary of what she says:

The V.R.'s lifespan depends on how long it will be amenable to the president's whims. Parliament has long ceased to be a place for political debate and decision-making, or for generating new ideas. Moreover it has long-ceased to be a self-contained branch of government, balancing out the cabinet of ministers and the presidential administration. It is no longer a place where the remnants of political competition can be maintained; as soon as Parliament tries to become what once was and what it is duty-bound to be, Yanukovych will dismiss it. He has the power to do so.

All those standing for election and investing considerable sums to do so should be aware of this.

The three main tasks assigned for new parliament will be:
Transfer of the remainder of state property into the hands of the country's most influential clans;
Removal of immunity from prosecution from its members to produce a more obedient and subservient parliament;
and alteration the Constitution, to provide an opportunity for president Yanukovych to be re-elected for a second term in office by a vote in parliament rather than by popular mandate.

Another reason for the fragility of the seventh convocation is economic.A sharp downturn in November and December is inevitable, because of the current global economic situation, and because of the big pre-election bugetary splurge currently being indulged in by the  Ukrainian government.

Yanukovych will deflect blame on PM Azarov, possibly sacking him and dissolving parliament. But everyone knows he has concentrated all authority in his own hands - it is he that will ultimately be held responsible.

p.s.
Responding to questions from 'Ukrainska Pravda's Mustafa Nayem, about Skadden, Arps, Slate, Meagher & Flom LLP, an American law firm contracted by the Justice Ministry of Justice earlier this year in connection with the Tymoshenko trial, Ukraine's Ministry of Justice replied:

"The Ministry of Justice has concluded an agreement with the Skadden legal company to provide services in the field of legal investigation.

According to the conditions of the agreement, lawyers of Skadden should conduct an investigation on the adherence to the principle of supremacy of the law and practices of the European Court of Human Rights in the case of "Tymoshenko vs Ukraine", which is [currently] being examined in the ECHR.

According to the agreement, payment for services...cannot exceed 90,000 Hryven, [less than $12.000] hence tender procedures need not be applied..."

In other words, they are being employed to provide justification for Tymoshenko's persecution.

Top Washington lawyers do not even get out of bed for this sort of money, never mind travelling abroad to conduct investigations in a distant foreign country. If the Ukrainian Ministry were serious they would earmark a sum of at least an order of magnitude greater. Skadden's 'fig-leaf' report will only be suitable for lavatorial purposes. Why on earth did they not employ a major Ukrainian law firm? It's all just a cheap PR stunt...and an embarrassment for Skadden.

Corruption at the borders

I recommend this article from the London 'Guardian'

"Odessa's 7km bazaar has its own language of globalisation - The vast Ukrainian market operates as a law unto itself, with stallholders from all over the world dealing mostly in counterfeit goods of every description"

The country's customs service and their control of imports is a huge milch-cow for Ukraine's political/criminal clans. President Yanukovych has personally distributed the entire system of import among the three influential groups. The first of these is headed by Chairman of State Customs Service of Ukraine Ihor Kaletnik, the second by Yanukovych's grey cardinal, Yuriy Ivanyuschenko, [about whom I have blogged previously]  and the third by former head of the State Security Service, now first vice-PM, Valeriy Khoroshkovsky.

Party of Regions' election list dirty as ever

According to the respected 'Dzerkalo Tyzhnya' over half of the deputies in the last parliamentary convocation systematically truanted sittings. At one time or another over 90% of all deputies handed over their voting cards to other party members allowing anti-constitutional absentee voting to take place. Over 80% failed to provide proper income declarations. Over one half were allegedly linked to corrupt activities. Broadly speaking, Party of Regions' deputies were twice as culpable as those of BYuT.

PoR recently published its list of election candidates for this autumn's parliamentary elections. It is a joke - packed with family members of the Donetsk clan. Many on the list have been in parliament previously but hardly ever attended any parliamentary session - their contribution virtually zero. Others only turned up when the party's leadership required their presence to physically 'rough up' or assault opposition deputies.

[More information at www.chesno.org]

Pledges by opposition parties that their deputies will do away with absentee voting and always attend pleniary sessions to vote in person will gain them many votes.

p.s. I can recommend this London 'Daily Telegraph' article entitled: "President Vladimir Putin’s cruel tyranny is driven by paranoia".

Putin is Yanukovych's role model - there are certainly many parallels.

Huge obstacle, or "irritant"?

In an 'FT' blog entitled "Ukraine says Tymoshenko an ‘irritant’ to EU ties" Ukraine’s foreign minister, Kostyantyn Gryshchenko, today acknowledged that the former prime minister had become more of a problem for his government in jail than free, noting her imprisonment has made an “association agreement” with EU almost impossible to finalise. “We [see] this issue as a certain irritant which obviously is not helping to move ahead with a positive agenda with the European Union." 

Foreign Minister Gryshchenko admits: ".. for the last 20 years almost every government official at the highest level presumed that they would never be asked to answer questions about their actions that were contradicting the law."

These actions by 'almost every government official that were contradicting the law' were almost always taken for self-enrichment.

Most of Gryshchenko's current cabinet colleagues, the current President, and members of his administration have held high office for many years in previous governments. Why aren't any them facing charges?

By charging and sentencing only their most feared opponents: former PM Yulia Tymoshenko and former Interior Minister Yuriy Lutsenko, accusations of selective justice will inevitably be made against today's authorities.

Ukraine's leaders remain amongst the most corrupt in Europe.

The face of an idiot

Party of Regions' parliamentary deputy Vladislav Lukyanov [see picture] has bragged on his facebook page how he drove the 440 km between Kyiv and Odesa in 2 hours 40 minutes - despite a blanket 110 km/hour speed limit. He even posted a photograph with the speedometer of his Audi A8 showing 241 km/hour as he was driving. 

He can do this because of he is protected from prosecution by parliamentary immunity.

What a complete and idiot... what a complete a***hole. 

Lukyanov is a high-profile politician, frequently seen in the mass media...always available for a comment - particularly to rubbish the opposition.

In a normal country his party would kick him out so fast his feet would not touch the ground following such an incident...

Could there a better example of mindless arrogant behaviour to demonstrate what kind of morons run the country..

p.s. Ukraine has one of the highest traffic-related death rates in Europe. E.g. about 5 times as many people are killed on the roads per capita per annum, than in the United Kingdom, where there is a blanket 70 miles per hour [112 km.hr] speed limit on motorways. There are, astonishingly, over 20 times as many road fatalities per 100,000 vehicles in Ukraine, that in the UK, per annum.

War against independent news media declared [updated]

"State Tax Service: Criminal case opened against TVi director over evasion of payment of Hr 3 million in taxes"

"Prosecutor's office opens criminal case against LB.ua on violation based on Landik's claims"
[Announcement by Kyiv City Prosecutor's office here]

My previous blog on this topic here

The Lb.ua site has been erratic today - at time of posting all that is being displayed is 'temna makhorka' i.e. head of president's administration Lyovochkin  - deputy prosecutor-general Kuzmin  - vice PM Khoroshkovsky - presidential judicial system adviser Portnov..

cf:  "Yanukovych calls on local authorities to ensure election campaign is fair" 

p.s. The Akhmetov-owned 'Segodnya' have given the Lb.ua story prominence...

Khoroshkovsky has now publicly distanced himself from the attack on Lb.ua....But he  has has certainly directed heavy fire onto TVi in the past.

Could this be just a sign of an internal feud inside the party of power... or are these two cases examples of simple personal vindictiveness, or part of a wider attack on the media?

Update: Prominent journalist Mustafa Nayem places the blame for this attack against press freedom firmly at Yanukovych's door.  Lb.ua's chief editor Sonya Koshkina, in comments on her publication's site is more cautious and hints 'el presidente' may be above the fray - perhaps to provide some 'wiggle room' for an honourable backdown...but she does say:  "The scale of the persecution means no one has any doubt: the joking has long finished, this war is a matter of life and death and they've gone for us seriously... I assume many would be pleased to see me on the scaffold..."

The mugshots above are of guys who tend to be associated with Firtash, RosUkrEnerho and the so-called gas lobby, rather than that of the Donbass 'metalbashers'

Update 2: "The president is concerned about the recent events around the Ukrainian media" including those surrounding LB.ua and TVi,  according to the official presidential site..

Too late pal, these bully-boy tactics make you all look like a**holes.. The little guys have made you eat dirt....

p.s. 'K.P.' reports : "The prosecutor's office in Kyiv has denied reports on the opening of a criminal case against the LB.ua online news site, as claimed by the publication, citing its own sources." What bungling incompetent liars - see link to Kyiv City Prosecutor's office above...

But 'the evil empire' will already be plotting it's revenge for this humiliation..

p.p.s. CNN's report on Tvi here 

Independent TVi under assault by Yanukovych's tax goons

Ukraine's only independent TV channel, which, i.m.o. employs some of the country's best journalists,  has been under attack by the Ukrainian tax authorities for many weeks. 

Yanukovych and his son have a total grip on the levers of power. The head of the state tax service Klimenko, the head of the ministry of interior Zakharchenko, head of state security [SBU], Kalinin, and prosecutor general's office top knobs Pshonka and Kuzmin are 100% Yanukovych loyalists. They are shamelessly conducting an assault on independent media in the country in order to neutralise them before the next parliamentary elections. 

A trumped up tax evasion criminal case has now been opened against one of TVi's most prominent front-men and general director, Mykola Knyazhytsky,  He has responded in an open letter to the president published on 'Ukrainska Pravda' site. 

All this despite the Ukrainian State Tax Service's announcement on March 30th this year on its website, that it will not be conducting any tax checks on the mass media in the second quarter of the current year in order to provide them with "all the  [necessary] conditions for objective illumination of the [October parliamentary] election campaign"

A few days ago I blogged about the disgraceful attack on the independent LB.ua website which has driven its top journalist to seek refuge abroad until she receives an undertaking that the absurd case against her and the site is dropped.

Most television channels, newspapers and other mass media are controlled by wealthy oligarchic Party of Regions' supporters already - their news broadasts and current events programmes are heavily biassed. Tvi and Lb.ua are in a disadvantagous position..now they are being squeezed even harder. 


p.s. This blog was temporarily closed down recently by what was described as 'suspicious activity'. LEvko may be moving to another site soon, if this continues...

Warning on language

Kyiv Dynamo fans protested against the possible adoption of new laws which could enhance the status of so-called minority languages, including Russian, during Saturday's Dynamo vs Metallurg Donetsk soccer match.

Watch video here:

 The banner reads: :Ukraine has 46 million tongues - but one language" 

The fans lustily sang the national anthem of Ukraine..

LEvko's view? Most demo's in Ukraine are staged for money ...this looks for real....

P.S. However you look at it, Yanukovych was humiliated by Putin last Thursday.

Their tete a tete, which was delayed by four hours, was preceeded by Putin's meeting with 'The Night Wolves' and their leader who goes by the name of 'Surgeon'. After their meeting he popped in to see Viktor Medvedchuk to look at his musical fountain. Watch video here

Medvedchuk, who was Kuchma's grey cardinal, sees Ukraine's future firmly in Russia's orbit.

A man with Putin's  St Petersburg KGB background will inevitably have a disdain for the likes of Yanukovych who was brought up in the rundown criminalised hinterland of Yenakiyeve and spent three and a half years in prison for violent crimes..

Who pays what for gas...

Serhiy Vlasenko, in his 'Kommersant' blog,  posts details of a recent article from the authoritative Polish 'Gazeta Wyborcza.biz' site.

The graphic below, from the article, shows the price in dollars per t.c.m. charged by Gazprom to countries in Europe for their gas.

This is the reason why, despite all of the hot air, the president's administration will not be challenging the allegedly scandalous Tymoshenko gas contract until at least 2018....

Language issue is contrived says Iosif Kobzon

Legendary Soviet and Russian pop singer, long-time member of the Russian State Duma, Iosif Kobzon, attended a ceremony celebrating the 80th anniversary of Donetsk region where he was born and where he is revered. 


During the festivities he and president Yanukovych even sang a rather overblown duet together - 'My mother [is] Ukraine, my father.. Donbas'... 

Kobzon was asked by a 'Novosti Donbassa' journalist for his opinion on the current Russian/Ukrainian language scandal. He did not understand why the status of Russian needed to be changed.

"...who today gets in the way of anyone speaking in parliament in Russian? Who obstructs anyone speaking Russian in Donbas? And would anyone be surprised if any of you were to speak in Ukrainian? So, it's a contrived political conflict, which I hope, will be resolved without any particularly serious consequences", said the Russian singer. 

My guess is most Ukrainians who live in the region think the same way...

p.s. If you are interested in this sort of thing, I couldn't help noticing....Kobzon has a very peculiar hair-line...

p.s.

MONACO DECLARATION AND RESOLUTIONS ADOPTED BY THE OSCE PARLIAMENTARY ASSEMBLY AT THE TWENTY-FIRST ANNUAL SESSION: MONACO, 5 to 9 JULY 2012

Pdf version available at this link at  "Final declaration in English

Resolution on Ukraine at page 17...

Also this on the Magnitsky case: "Calls on national parliaments to take action to impose visa sanctions and asset freezes on persons responsible for the false arrest, torture, denial of medical care and death of Sergei Magnitsky,.."  Could cause some furrowed brows on Ukraine's mount Olympus..

Own goal after Euros

PoR bulldozed the second reading of their language bill through parliament on Tuesday, trampling over procedural rules to force through this most controversial of policies. A host of voting irregularities took place - speaker Lytvyn is set to resign.

PoR could have basked for a while in the afterglow of a reasonably successful Euro 2012 football competition. They have chosen not to do so and as a result have infuriated a large portion of the electorate.

The new policy will become law if and when it is signed off by the president.

What the authorities' language policy does is provide is a totem around which the opposition can unite - as can be seen in the today's protests outside the 'Ukrainskiy Dim' where the president was to deliver a grandiose press conference. This has now been cancelled - providing the opposition an easy victory. They can say despite the appearance of phalanxes of 'space cadets' he chickened out...

The arrogance of his party colleagues has forced Yanukovych to now face what could be the greatest crisis of his presidency so far.

The president faces an dilemma - but the damage has been done. Whether he and PoR back down or continue with this policy, this crisis could turn out to be the start of the turning of the political tide.

The Euros - and what could have been

The Euro 2012 football competition has ended. 

Despite some shortcomings, most Ukrainians across the land have experienced a genuine feelgood factor such events bring to a host country. When pushed they have shown they can deliver a world-standard event, (even if its pure financial benefits are a matter of conjecture).  One blogger writes,  the granting of half the tournament presented Ukraine with a challenge. These included strict closely monitored deadlines set by Europeans, which were successfully met by the country. The project could have been a fine template for any Euro-integrational plans.

The project was also footballing joint venture between a fully paid-up member of the EU - Poland, and a country that right now is not even a candidate member. The test of practical compatibility was successfully passed; but it should also have been the start of an entirely new relationship between Ukraine, its greatest promoter inside the EU, and the EU itself.  This has been still-born. The possibility of ratification of any EU-Ukraine association agreement is receding into the distance, and we all know the reason for this...

The British 'Independent' wishfully notes in a recent editorial: "With the successful Euro 2012 under its belt, Ukraine, it must now be hoped, will take another look at the state of its own politics and how it measures up to the Europe it still aspires to join. Reconsidering the prosecution and imprisonment of the former Prime Minister, Yulia Tymoshenko, must be part of that."

Ukraine's small-scale entrepreneurs at the end of their tether

Just watched Vitaliy Portnikov's latest 'Politklub' tv programme on-line about the ever-increasing difficulties being faced by Ukraine's small and medium-sized businesses and traders as they are, to an ever-greater degree, being systematically squeezed by corrupt state officials, tax collectors and 'business raiders'. The atmosphere in the studio was sombre. Some called the process a second phase of 'oligarchization' of the country.


These are the people on whom the future prosperity of the country to a great extent depends.

Astonishingly, according to the programme, ever-more of their number are moving from Ukraine to Belarus to do business -  there, they say, at least  they know where they stand....

The small-scale entrepreneurs taking part in the programme feel very badly let down by Party of Regions and  the president - they are at the end of their tether. You get the feeling that if the October elections are significantly 'fiddled'  their anger may well spill out onto the streets..