www.ukrweekly.com InsIde: • Russian envoy: Ukrainians, Russians ‘a single people’ – page 3. • Bust of Stalin installed at D-Day memorial – page 4. • An open letter to President Viktor Yanukovych – page 9. THEPublished U by theKRA Ukrainian NationalIN AssociationIAN Inc., a fraternal Wnon-profit associationEEKLY Vol. LXXVIII No. 25 THE UKRAINIAN WEEKLY SUNDAY, JUNE 20, 2010 $1/$2 in Ukraine Russian buyers snap up The first 100 days: No strategy prize assets in Ukraine in Yanukovych economic policy by Zenon Zawada by Zenon Zawada garchs, whose factories depend on Kyiv Press Bureau Kyiv Press Bureau Russian gas provided by the state monop- oly Gazprom. KYIV – Russian businessmen have The first 100 days: The Ukrainian Ukraine’s top industrial oligarch, Rinat launched attempts to acquire three large, Weekly examines the activity of the Akhmetov, is widely recognized to be strategic Ukrainian factories in the last Yanukovych administration in Ukraine’s among the biggest financers of the Party month through deals that have shut out cultural life, the economy, domestic poli- of Regions. Another industrial magnate, Ukrainian oligarchs, lacked basic Western cy and foreign affairs. This is the second Victor Pinchuk, indicated his support for standards of transparency and face lengthy article in the series. the Yanukovych administration when per- legal battles. sonally appearing at his victory celebra- The Russian incursion has the tacit KYIV – The administration of tion on February 7 to offer congratula- approval of the administration of Ukrainian President Viktor Yanukovych inherited a tions. President Viktor Yanukovych, which is Ukrainian economy in shambles – a bud- Yet, the pact doesn’t affect the prices appeasing the Russian Federation govern- get deficit of $12.5 billion, or more than paid by the general public, Mr. Novak ment – sometimes at the expense of his 10 percent of the GDP, more than $214 said, since average consumers, who rely own oligarch backers and certainly at the million in wages owed to workers and a on natural gas to power their home stoves, expense of Ukrainian national interests, state debt exceeding $38 billion. use gas obtained from Ukraine’s own observers said. Yet, the new government hasn’t dem- underground deposits. Instead, their pric- Most of the deals are financed through onstrated any strategy to rescue the econ- es will increase, he said. loans offered by Russian omy, observers said. Instead, its first 100 Another oligarch who reportedly pro- VneshEkonomBank (VEB), the state- Kommersant days revealed an economic policy based vided significant financing for the owned bank controlled by Mr. Putin, who Volodymyr Boiko, chief executive officer on further enriching oligarchs and busi- Yanukovych presidential campaign, is the board chairman. of the Illich Mariupol Metallurgical ness clans that support the Party of Dmytro Firtash, allegedly gained his “The Kremlin is taking advantage of a Plant, said he was the target of a corpo- Regions of Ukraine (PRU), coupled with reward from the new administration on favorable climate in Ukraine to snap up rate raid by a rogue broker who teamed generous preferences given to the Russian June 8. prize assets with some success,” said Ivan up with Russian businessmen. Federation. The Stockholm Arbitrage Tribunal Lozowy, president of the Institute of “The government has no economic reportedly ruled in favor of his firm, Statehood and Democracy in Kyiv. first,” he added. strategy and is only concerned with the RosUkrEnergo, and required Naftohaz “This is being coordinated by the On June 15, Ukraine’s State Property present day,” said Andriy Novak, an Ukrainy, the state-owned natural gas Kremlin, which is taking a proactive Fund announced it sold control of the economist and author of the book, “How extractor and distributor, to give back 11 stance. All the top oligarchs have to be to Lift the Ukrainian Economy.” He billion cubic meters of gas that was con- vetted by VEB and cleared with Kremlin (Continued on page 20) added, “It’s working along the principle fiscated by former Prime Minister Yulia Tymoshenko, plus 1.1 billion cubic that, while in government, we should do meters in compensation. as much as we can for our own financial- The precise ruling of the court’s ver- industrial groups.” Toronto research center launches dict wasn’t reported in the Ukrainian The best evidence of the government’s media. Ms. Tymoshenko said the approach is the Yanukovych-Medvedev Yanukovych administration intentionally ‘I am my brother’s keeper’ project pact agreed to in Kharkiv in April, which sabotaged Naftohaz’s defense in the secured discounted prices for natural gas by Oksana Zakydalsky Ukrainian-Jewish Encounter to the on behalf of Ukraine’s industrial oli- (Continued on page 22) UCRDC to start the new project. TORONTO – The Ukrainian Canadian The project will build on existing Research and Documentation Center research and cases that have already been (UCRDC) is launching a new project on documented in Ukraine, at Yad Vashem World War II in Ukraine whose goal is to in Jerusalem and at the Shoah Foundation identify and recognize Ukrainians who in Los Angeles, but will also conduct took great personal risks in hiding or oth- research to identify cases not known or erwise helping Jews to survive during the publicized to date. years of World War II. The UCRDC will focus on identifying This project was initiated by Leonid and documenting cases that have a Finberg of the Center for Studies of the Canadian connection. Orest Zakydalsky History and Culture of East European has been selected to work on the project; Jews, National University of Kyiv UCRDC archivist and contact with Mohyla Academy under the title “I am Leonid Finberg in Kyiv, Iroida my brother’s keeper.” It has the support Wynnyckyj, will oversee the Canadian of the Ukrainian-Jewish Encounter project. Initiative (UJEI), a privately organized, Mr. Zakydalsky has already met with multinational organization whose goal is the editor of the Canadian Jewish News, to deepen scholarly and broader public which is publishing an appeal to persons interest in the breadth, complexity and who can provide information or names of diversity of Ukrainian-Jewish relations, persons involved in the rescue of Jews in with a view to the future. Ukraine during the second world war. Canadians, notably philanthropist The appeal is also appearing in Ukrainian Zenon Zawada James Temerty, are playing an important newspapers in Canada. role in the development and leadership of Readers who have any information The Yanukovych administration has demonstrated no strategy to improve the this project. Recently, Raya Shadursky regarding this subject are asked to contact Ukrainian economy and is interested only in enriching its own circle of industrial presented a check on behalf of the Mr. Zakydalsky at [email protected]. clans, said economist Andriy Novak, author of the book, “How to Lift the Ukrainian Economy.” 2 THE UKRAINIAN WEEKLY SUNDAY, JUNE 20, 2010 No. 25 ANALYSIS NEWSBRIEFS Yanukovych’s reform plan: Party demands Zurabov’s recall in the fall,” Mr. Yekhanurov said in an inter- view published in the June 15 issue of the Will it convince the IMF? KYIV – The Ukrainian People’s Party newspaper Po-Kyivsky. “Our Ukraine lost demanded on June 16 that President Viktor the presidential and parliamentary elections by Pavel Korduban the IMF (www.liga.net, June 2). Yanukovych raise the issue of recalling because it failed to find the necessary slo- Russian Ambassador to Ukraine Mikhail Eurasia Daily Monitor Ukraine wants the IMF to issue a new gans and programs that would be appealing two-and-a-half year loan, whose size is Zurabov and replacing him with “a better to all of Ukraine,” he said. “We had a lot of Ukrainian President Viktor Yanukovych yet to be determined. It is expected to diplomat.” The reason for the demand was populist slogans, and, instead of Our launched his long-awaited reform pro- range from $12 billion to $20 billion, Mr. Zurabov’s statement that Russians and Ukraine’s consolidation with the Party of Ukrainians are a single nation. Party board gram with great fanfare, addressing the replacing the $16.4 billion stand-by loan Regions within a coalition and the forming member Stepan Khmara said, “The Russian nation and parliamentarians from the lav- from which almost $11 billion was of a government, we let the Communists ambassador denies the existence of the ish Soviet-style Ukraina Palace in central received in 2008-2009. Ukraine would come to power. The fact that they are at the [Ukrainian] language, culture and even the Kyiv on June 3. have defaulted without IMF financing helm now is Our Ukraine’s direct fault,” Ukrainian people. His statement is another The document, which details reform during the difficult year of 2009, when said Mr. Yekhanurov, who was a prime min- anti-Ukrainian provocation that offends the plans in the economic sector for state coffers were almost empty and ister and a defense minister during Viktor honor and dignity of every Ukrainian citi- 2010-2014, prepared with the help of the Russian gas prices grew. IMF money is Yushchenko’s presidency. (Interfax- zen.” He added, “If the leadership of the international consulting company no less needed because Azarov’s Cabinet Ukraine) Russian Federation doesn’t agree to resolve McKinsey, is designed primarily to fell into the same trap as its predecessors: impress the International Monetary Fund this scandal in a civilized way, the Security PRU denies plans to reformat coalition it refused to cut spending in 2010 for fear Service of Ukraine should declare Mr. (IMF), which the Yanukovych team asked of losing popularity, while revenues for KYIV – The Party of Regions on June 15 for multi-billion-dollar loans. However, Zurabov persona non grata and send him to the budget are still hard to collect in an Moscow.” (Ukrinform) rejected suggestions about reformating the the IMF doubts that it is ambitious economy that is only slowly emerging ruling coalition.