#7 (89) July 2015 How profound are changes How the Anti-Corruption The first impact of the shock in the SBU Bureau sees its prospects therapy in Ukraine's economy THOU SHALT HONOR DIVERSITY WWW.UKRAINIANWEEK.COM Featuring selected content from The Economist FOR FREE DISTRIBUTION |CONTENTS BRIEFING Rely on Yourself: SystemicS hape-Shifting: Young politicians, activists and What searches and arrests military share their views at the Prosecutor General’s on the Maidan, support of Office signal the West and own efforts 4 28 Edward Lucas on signs of Yuriy Makarov on the generation effective psychological warfare that was born free of Soviet legacy 7 31 POLITICS FOCUS Hostages of the Kremlin: The Many Faces of Tradition: How many Ukrainian How Ukraine turned into a multireligious political prisoners Russia country keeps, and why 32 8 Freedom of Belief. No More: Who Are You, Mr. Hrytsak? How non-Russian Orthodox religious Whose interests will guide groups live in Donbas after occupation the new SBU chief 10 36 Artem Sytnyk: “Our task is to break the Giray's Faith: stereotypes of society accustomed to Why radical Islam is living in a corrupt environment” not popular among Director of the National Anti-Corruption Crimean Tatars Bureau on rivalry in the law enforcement sector and the outlook for his agency 40 HISTORY 12 Leonidas Donskis on why Helsinki ECONOMICS Accords will remain in history while Express Shock Therapy, Hybrid Economic Results: Vladimir Putin’s regime won’t The first impact of austerity on Ukraine’s economy 43 14 Small Steps to Great Freedom: Healthcare and Education Below Poverty Line: The crucial legacy of Magna Carta The risks of underfinancing critical public services 16 Uncle Xi's Bear Market: China learns that stocks are 44 beyond the Communist Party’s The Man Who Never Laid control Down Arms: UPA fighter Semen Soroka on struggle against 20 the Nazis and NKVD, and his escape from a Soviet labor camp SOCIETY We Can Win After All: Seven 46 stories of success CULTURE & ARTS and heroism The summer of migration, from the military cinema and street food: and volunteers The Ukrainian Week offers a selection of cultural venues to attend in July 22 50 E-mail [email protected] www.ukrainianweek.com Tel. (044) 351-13-87 The Ukrainian Week № 7 (89) July 2015 Editors address 37 Mashynobudivna str., Kyiv, 03067, Ukraine Founder ECEM Media GmbH. Publisher ECEM Media GmbH Print run 15 000. Free distribution Address Austria, Am Gestade,1, 1010 Vienna Our partner State registration certificate КВ № 19823-9623ПР 19.03.2013 Chief Editor Dmytro Krapyvenko Editors Anna Korbut, Lidia Wolanskyj, Shaun Williams № 7 (89) JULY 2015|THE UKRAINIAN WEEK|3 BRIEFING| 4|THE UKRAINIAN WEEK|№ 7 (89) JULY 2015 |BRIEFING Systemic Shape-Shifting Author: Bohdan Butkevych or possibly the first time in Ukraine’s entire history, top officials in the Prosecutor General’s Office, one of the country’s most corrupt agencies, have been arrested: Main Investigative Bureau Director Volodymyr Shapakin and Kyiv Oblast Deputy FProsecutor Oleksandr Korniyets. What’s more, it was a scene worthy of an action movie, complete with Alfa special forces breaking down doors and lots of loot in the form of hundreds of thousands of dollars cash, UAH 3 million, and even diamonds— caught red-handed taking bribes—, all of it seized from criminals in uniform.1 Of course, later, in the time-honored traditions of Ukrainian “justice,” the court set bail for these two officials at UAH 3 million, which is three times less than the money found in their offices alone during the very first search. In the last week, some more prosecutors were arrested. The thought that this could finally be the real battle with corruption cheered the heart of many a Ukrainian. 1 In Ukraine, prosecutors wear police-style uniforms. PHOTO BY UNIAN BY PHOTO № 7 (89) JULY 2015|THE UKRAINIAN WEEK|5 BRIEFING| Actually, this all looks very wart, Ivan Kulychenko, who’s been was under Viktor Yanukovych. Be- hopeful. Finally, the Georgian re- able to cut a deal with every admin- cause its underpinnings—the cha- former David Sakvarelidze has istration and now what? Lustrate in-of-command, the nepotism, the gone into action and—without him? Who will then help you built-in corruption factor—will re- even asking permission from the against the rebellious oligarch? main exactly the same. Because highest boss, Prosecutor General This is how the various combi- these leaders cannot imagine any Viktor Shokin who, for health rea- nation moves begin, like the one other kind of power. And so this is sons, has not been in office lately— that the nation saw on Sunday at why we are seeing this very public caught a fairly big fish in his own the PGO’s. President Poroshenko shape-shifting, in which it’s not agency. For the first time, the clear has a very good sense of the na- the government machine that is position of President Poroshenko, tional mood and understands that being changed, but the faces and giving credit where credit is due, a few pawns must be sacrificed to cogs in it. made it impossible for Volodymyr win the game. And his idea of win- Huzyr, the first deputy PG and an ning the game is to concentrate THE MEDIUM influential man within the agency, power in his own hands while gen- IS THE MASSAGE to sweep the case under the rug. erally maintaining the current In short, the flashy arrest of pros- Or to open a criminal investiga- top-down system of governing. He ecutors is intended to convey a few tion against this “hyperactive” ex- doesn’t mind a little window- very simple messages from the top pat, as is typical in the enforce- dressing, cosmetic changes. He’s of the heap to all the executors, ment agencies, to “hang” him and even prepared to trust certain ex- placed within a suitably theatrical keep him under constant control. pats. But is this anything more framework for greater clarity. So far, so good. For now. than a cover-up and paying tribute Firstly, there is a lord in this If only it weren’t for the judge’s to pressure from civil society and manor and there is no freedom, decision to set bail and persistent western creditors, all of whom are whatever anyone might have rumors that these two prosecutors demanding at least some kind of imagined after this past year. Any will be released in the usual man- clear and concrete result that can sign of disloyalty will lead to dis- ner and will then flee to better be touched and tasted? missal—such as happened with times. And this one detail overrides The President urgently needs Nalyvaichenko, in case anyone all the positive, because it clearly some high-profile, impressive suc- missed the point. Everybody’s go- raises the question to what degree cess stories. This is what Mikheil ing to continue working as before, the system is being controlled, who Saakashvili is attempting to do in but there will be a touch more vis- is actually in charge and how: is the Odesa Oblast right now and now ible freedom and democracy for president running it or it running Sakvarelidze has been given the public consumption. the president? Or even the ques- green light in the PGO. Moreover, Secondly, steal smart. No- tion of the real reason for this rumor has it that, come fall, the body’s about to prohibit clever flashy arrest, which isn’t the first ways of making money in the civil one: remember the arrest of the service: why else would anyone bosses of the State Emergencies WHAT WE SEE LOOKS LIKE join it in Ukraine? But if you don’t Services, Bochkovskiy and Stoyets- PUBLIC SHAPE-SHIftING, know how to use your head and kiy, during a Cabinet meeting. And keep hundreds of thousands of where are they? Free as birds. Has CHANGING, NOT THE STATE dollars in your office—well, sorry, there been a court ruling? Nope, MACHINE ITSELF, BUT you will be arrested in a very pub- the court hasn’t even begun to hear lic fashion and your money confis- this case. THE FACES AND COGS IN IT cated. Thirdly, if you’re caught, no- SHAPE-SHIFTING Georgian might even replace the ail- body’s going to come to save you, AS PSEUDO-CHANGE ing Shokin as Prosecutor General. as there are already enough prob- So what’s really going on? It looks In reality, Petro Poroshenko is lems to choke on. Of course, no like Mr. Poroshenko is turning out now being forced to agree to a cer- one will get in your way if you try to be the smartest of all of Ukraine’s tain amount of rebuilding of the wiggling out of it, but that will de- presidents. For starters, in the Ukrainian system. But it’s impor- pend on your personal connec- sense of being able to establish his tant to understand what principles tions and assets. If you float out, chain-of-command under the most underlie this. If he and PM Ar- great. If not, too bad. unfavorable conditions possible, seniy Yatseniuk wanted to under- The sad thing in this situation conditions that are growing worse take lightning-fast radical re- is that the shape-shifting that the by the day. The economy is on the forms, all the necessary conditions President and PM are working on, ropes, the public is out for blood for this were already in place, war after seemingly burying their and lustration, and the war is get- or no war.