Unnerved business: clan domination, Lithuania's Prime-Minister Algirdas A social, political raider attacks and protectionism Butkevičius on his country's and electoral portrait crush business initiative return to Europe of Odesa
№ 18 (60) october 2013 On the brink of crisis Financial problems in business caused by ineffective economic policy may lead to a surge of bankruptcies, government default and steep devaluation of hryvnia
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Politics Society Bandera Non Grata: Politicians as Merchandise: The pro-Russian left The stereotypical image of in Ukraine may stand Odesa Oblast as a pro- behind FARE’s campaign Russian region and mainstay against Ukrainian football of the Party of Regions is far “fascists” and “racists” from being the reality 4 20 Focus After Them the Deluge: Those in power focus on the short-term task of replenishing History the budget deficit while ignoring the The Undefeated: Why Ukrainian escalating economic crisis insurgents were not Soviet and Nazi collaborators 8 24 HistorianL arysa Zariczniak Unnerving Business: on the Holodomor, the Discouraged by the clan- impact of the genocide on the dominated environment, Ukrainian nation and politics Ukrainian entrepreneurs in the modern-day study of the are taking a break from famine business 26 12 Culture & Arts Economics Inventor of the Femme Fatale: Capital Outflow: After a steady inflow of investment in recent How Leopold von Sacher-Masoch went years, many emerging economies now see a reverse in the trend. from writer to masochist Ukraine will be one of the first to suffer 28 14 Navigator Neighbours Lithuania’s Prime-Minister Algirdas Butkevičiuson Unpolished Authenticity: his country’s return to Europe Remote villages in and the importance Polissia are home to the of the Association Agreement descendants of old noble for Ukraine families 16 Oleksandr Mykhelson 32 about Russia that Get a Life! Using the social network is losing us seems to make people more miserable 19 34
E-mail [email protected] Tel. (044) 351-13-87 www.ukrainianweek.com The Ukrainian Week № 18 (60) October 2013 Editors address 37 Mashynobudivna str., Kyiv, 03067, Ukraine Founder ECEM Media GmbH Print Novy Druk LLC, 1 Mahnitohorska str., Kyiv, 03056, Ukraine Publisher ECEM Media GmbH Ordering number 13-7890 Sent to print on 3 October 2013 Address Austria, Am Gestade,1, 1010 Vienna Print run 15 000. Free distribution State registration certificate КВ № 19823-9623ПР 19.03.2013 Head of editorial board Roman Tsupryk Our partner Editors Anna Korbut, Natalia Romaneс, Shaun Williams № 18 (60) october 2013|the ukrainian week|3 Politics|provocation Bandera Non Grata The pro-Russian left in Ukraine may stand behind FARE’s campaign against Ukrainian “fascists” and “racists”
Author: n September 27, Fédéra- a London-based European network this number as Heil Hitler, h being Valeria tion Internationale de that campaigns against racism and the eighth letter in the English al- Burlakova Football Association xenophobia in football since 1999. phabet. Also, he saw signs of rac- O(FIFA) ordered Ukrainian In 2006, it established a “strategic ism when Ukrainian fans imitated national football team to play its alliance in the field of anti-discrimi- monkey sounds after a Brazilian upcoming game against Poland – nation” with FIFA. Ever since, it has player in the Ukrainian team decisive for it in the 2014 World been providing reports on signs of scored a goal. In addition to that, Cup qualifying campaign – behind racism and neo-Nazism at football the observer saw several young closed doors. In addition to that, matches. Based on these reports, men making Sieg Heil moves. the Ukrainian Football Federation FIFA takes its disciplinary deci- He carefully recorded all these has to pay a fine of EUR 45,000 sions. facts on video and photo cameras. Kyiv Dynamo and and the stadium in Lviv is banned The Lviv report by FARE ob- Lviv Karpaty ultras have sent an open from hosting qualification tourna- server said that Ukrainian fans Without declaration letter to FIFA where ments with the national team raised the banner of SS Galizien of war they questioned through 2018. This is the punish- Division depicting the Halychyna By contrast to FARE, Ukrainian FARE’s knowledge on th Ukrainian history ment for the actions of Ukrainian (Galician) lion on the 14 minute fans did not notice their own rac- and noted that it was fans at the Ukraine against San of the game. “The division was ism. They had no idea that the not FARE’s competence to Marino match on September 6. formed of Ukrainian volunteers symbols of SS Galizien Division evaluate historical What caused the tough sanc- and fought for the Nazi Germany were banned. They claim that they figures whom many Ukrainians see as tions was not so much the use of py- in WWII,” the observer lays out read all FFU’s recommendations national heroes rotechnics during the game (FIFA his view of history. On the 15th on effective bans, including that bans it in games under its aegis and minute, he noticed the anti-com- on the swastika, Ku Klux Klan one of its delegates reported that munist banner saying “Good symbols and the like. These bans Ukrainian fans used it). It was the night, left side”. On the 55th min- never mentioned SS Galizien. report of a Football Against Racism ute, he saw a man wearing a T- Taras Pavliv, the leader of Lviv in Europe, FARE, delegate. FARE is shirt with 88 on it. He interpreted ultras, admits that the first time he 4|the ukrainian week|№ 18 (60) october 2013 provocation|Politics saw the “updated” bans was on the Kharkiv-based People’s Ukrainian our so-called role… the domina- Big Football TV show on Septem- Academy; and a mysterious orga- tion of neo-Nazis on the streets ber 21, two weeks after the game. nization called Football Against stopped,” The JC quotes him. Anatoliy Binkovsky, Kyiv Dynamo Prejudices which does not even After he saved Kyiv from the security officer, says that the have a website in Ukraine. So far, fascist occupation, Klymenko Union of European Football Asso- none of these confirmed that they moved on to the stadiums all over ciations (UEFA) officially pro- participated in the preparation of the country – now for grants. vided the updated list to Dynamo FARE’s report on the Lviv game. FARE and other organizations he fans on September 25. Yosyp Zisels, President of the Con- was involved with provide grants The banners of SS Galizien Di- gress of National Communities, on a regular basis. Also, Klymenko vision are not the only thing Ukrai- suggested in his comment for Ra- is one of the key people at the lit- nian fans should be punished for dio Liberty that this looks very tle-known yet fairly well funded according to the new list of banned much like a provocation against Ukrainian Marochkina Human symbols. These now include the Ukraine. He said that the Con- Rights Protection Foundation. It red and black flag of the Organiza- gress would take a closer receives grants from the tion of Ukrainian Nationalists look at the quality of German Rosa Luxem- (OUN) used by insurgents in the FARE’s work: “If this burg Foundation, 20th-century liberation struggle, as was a provocation, we among others. well as portraits of Stepan Bandera will not be part of it.” As soon as the first and Roman Shukhevych, two lead- As soon as FARE article about Klymen- ers of the insurgent movement. faced the first accusa- ko’s ties with various “Stepan Bandera and Roman tion of poor knowledge leftist organizations ap- Shukhevych were OUN leaders,” of history, the list of in- peared in the press, FARE’s guidelines explain briefly. sulting and discriminat- someone began to However, neither SS Galizien Di- ing symbols in Euro- swiftly delete his con- vision, nor Bandera or Shukhevych pean football (it in- tacts on the Internet. were condemned at the Nurnberg cluded the OUN red and His email address was Trials. Surprisingly, FARE’s bans black flag, portraits of removed from the Con- do not cover liberation move- Bandera and tacts page of the Ma- ments similar to the OUN or UPA Shukhevych among oth- rochkina Foundation. (Ukrainian Insurgent Army) in ers) that serves as the Some other facts other countries. basis for FIFA’s punish- point at his involvement ment disappeared from with the Marochkina The missing experts its website. FARE and Rosa Luxem- FARE observers are not interested described the burg foundations. in the banners of Belgian, Latvian wave of indigna- The UNIAN web- or Estonian SS divisions (SS Gali- tion in Ukraine site contained an zien Division and the Spanish Blue sparked by its re- announcement of Division are the only ones in their port to FIFA as a roundtable the sight), nor do they mention any “speculation” and two foundations other symbols of national libera- stated that all ob- held in Cherni- tion campaigns. It does not pro- servers it sent to hiv. Contact per- hibit the banners of IRA, the Irish the Ukraine-San sons for it were Republican Army, or the flags of Marino game Pavlo Klymenko the Russian Liberation Army. For were neutral and and Vitaliy Du- unbiased international experts. din, a lawyer at the communist Russia, which does have problems FARE recom- with race intolerance and nation- This does not match FARE’s mends punish- trade union Protection of Labour alistic sentiments, especially in report, however. The introduction ing the national and a contributor to the “main an- football, it has just one taboo on mentions “an observer” and “the federation of alytical website of Haslo (Slogan), the flag of the Slavic Union which observer”. This “international” ob- Ukraine for the the leftist opposition”. The Protec- is generally banned in Russia. The server “is a Ukrainian native red and black tion of Labour is headed by a well- black, yellow and white flag which speaker with a clear understand- flag used by known Kyiv-based doctor, Oleh was the official national flag of the ing of the broader social and polit- Ukrainian in- Vernyk. He also chairs the Inter- Russian Empire and is now used ical issues at play.” His name is surgents during national Organization for Elec- by nationalists and monarchists, is never mentioned. However, an- the liberation tions Observation CIS-EMO. “The struggle in the other one is. not mentioned 20th century president of CIS-EMO is Alexei According to FARE’s Execu- and the por- Kochetkov, a Kremlin political an- tive Director, Piara Powar, the or- Who is who? traits of insur- alyst,” says Yevhen Karas, the ganization does not have Ukrai- Pavlo Klymenko is FARE’s coordi- gent move- journalist who wrote about Pavlo nian experts, only “organization nator for Eastern Europe. In his ment leaders, Klymenko. members”. Associated members of interview for The Jewish Chroni- Stepan Bandera Indirect evidence suggests that the network (160 today) from cle Online (Tjejc.com), Klymenko and Roman Klymenko is connected to the Eur- Ukraine include the Kyiv-based said that his “struggle against Na- Shukhevych, asian Youth Union, a pro-Russian Congress of National Communi- zism” began in 2004. He claimed spotted dur- organization banned in Ukraine ties, the International Foundation to have been fighting against neo- ing football (its members destroyed Ukraine’s matches for Health Care and Environment Nazis in Kyiv as a teenager, and to coat of arms at Hoverla, the high- in Mukacheve, Zakarpattia; the have won the fight. “We fulfilled est peak in the country, in 2007). № 18 (60) october 2013|the ukrainian week|5 Politics|provocation
“In his article for a communist website, SELECTIVE APPROACH: the unofficial ban on pulling out red and Klymenko mentions his friend Anatoliy Surprisingly, black flags at stadiums in Eastern and Shekhovtsov, a researcher of political international football Southern Ukraine enforced by the po- associations and FARE radicalism, who publicly claimed in inter- do not react to obvious lice). “The government is struggling views for the foreign press that Ukrainian signs of xenophobia against fascism which people don’t actu- Ukrainian ultras fans “place portraits of fascist Stepan and racism in other ally see, that’s why it wants to raise and have called Bandera”. “Shekhovtsov was, member of countries. They did fuel this issue,” Taras Pavliv explains. on fans of all the Eurasian Youth Union,” Yevhen not respond to the “They say, here it is, fascism in Lviv, and clubs to bring Karas claims. recent burning of the once again divide East and West. Inter- red and black Chechen flag at the national companies are involved for a flags to games Who needs this? game between St. stronger effect.” to protest Several scenarios as to FARE’s attempts Petersburg’s Zenit Most experts speak of the possible against the ban to ruin Ukraine’s image have come up and Groznyy’s Terek in trace of the Kremlin which is taking every on national Russia (see top right symbols at the lately. Many believe that Poland may photo) or the burning opportunity to disrupt the Association stadiums. On have influence on FARE since it is where of the Croatian flag Agreement with the EU. For this, Mos- September it publishes its report on Eastern Europe. at the Serbia-Croatia cow is now exploiting left forces in 29, the fans of Poland’s attitude to Ukrainian liberation match (see top left Ukraine. Serhiy Parkhomenko, Director Simferopol FC movement is a complex issue. And it is photo). Quite often, of the Centre for Foreign Policy Studies, Tavria brought Poland against which Ukraine will play FARE’s reports that recalls that Gazprom is now the official red and black its upcoming decisive qualification tour- mention clear signs sponsor of football tournaments under flags to the nament behind closed doors in Kharkiv. of racism at football the FIFA aegis. It signed a multi-billion game against Another interpretation is that the matches do not result contract for this on September 14 in the FC Karpaty party in power – especially the pro-Rus- in tough sanctions. presence of Vladimir Putin, FIFA Presi- in Lviv from On August 29, FARE’s Crimea. On sian group within it – may be drawing observers noticed an dent Joseph Blatter and Gazprom CEO September 30, FARE’s attention to Ukraine and ensur- “ultra-right banner” Alexey Miller. fans unfolded ing its “accurate” vision of history. This and heard “xenophobic No matter what, average Ukrainians a huge red and scenario is based on the Party of Regions’ songs” in the sector of are concerned about new attempts to at- black flag at a antifascist rallies (see Anti-Fascism & Spartak (Moscow team) tach “fascism” and “racism” labels to all game between the Yanukovych Regime at ukraini- in the game against things Ukrainian, including patriotic Poltava FC anweek.com), the request of some of Swiss FC St. Gallen. Ever forces that fought against two totalitarian Vorskla and Kyiv its MPs along with the Communist Party since, there has been systems in the Second World War. The FC Dynamo in of Ukraine for the Polish Sejm to recog- no news of sanctions government has not duly reacted to this Poltava. Many for Spartak nize Volyn tragedy as genocide earlier informational campaign. Nor has the op- smaller red and black flags were this year, and “internal instructions” position despite its pro-Ukrainian rheto- spotted at this Ukrainian fans complain about (one is ric. game
6|the ukrainian week|№ 18 (60) october 2013 B OOKST ORES KYIV 3, vul. Lysenka tel: (044) 235-88-54; 5,vul. Spaska tel: (044) 351-13-38, 33/2, Povitroflotskiy Prospekt tel: (044) 275-67-42 LVIV 7, Prospekt Svobody tel: (032) 235-73-68 VINNYTSIA 89, Soborna tel: (0432) 52-9341 TERNOPIL 7-9, vul. Valova tel: (0352) 25-4459 KHARKIV 3, vul. Sumska tel: (057) 731-5949 IVANO-FRANKIVSK 31, vul. Nezalezhnosti tel: (0342) 72-2502 VOLODYMYR-VOLYNSKIY 6, vul. Kovelska tel: (03342) 2-1957 www.book-ye.com.ua
ONLINE BOOKSHOP WWW.BOOK-YE.COM.UA/SHOP After Them the Deluge While the economic crisis in Ukraine escalates, the government focuses exclusively on replenishing the current budget deficit
ment” and “stabilization” experi- ments of the current government, and the fact that it ignores the rec- ommendations of international or- Author: ganizations. Lyubomyr Farming is currently the key Shavalyuk driver of economic growth. Over January-August 2013, agricultural output grew 13.3% compared to the same period in 2012. However, this sector is also slowing down. This growth was 1.5 p.p. below that of the first seven months of 2013. More- over, as world grain prices plummet, high-end boutique near the income from production will not especially in the banking sector Olympic Stadium in Kyiv necessarily have a visible positive (see Unreliable funding). has had five tenants over the impact on the budget and the bal- So far, the banking system seems Apast year. They all sold dif- ance of payments. It is unlikely to stable. It does not have exorbitant in- ferent things but closed down after offset the decline in other sectors or terest rates as it did last year, nor is a few months. These businesses boost real GDP growth above zero. there any news of financial troubles only incurred losses. 18 months ago Trade has also been contribut- at individual banks. Its balance over a huge photo studio next to the bou- ing much less to GDP growth (see seven months is positive at USD tique moved to an office that is three Improvement. To be contin- 1.9bn. The amount by which gold Industrial output fell times smaller. The one it left stands by ued). Retail trade turnover grew and currency reserves shrank since empty. 10.2% over the first eight months of the beginning of this year (USD 4.9% According to the State Statistics and 2013. This reflects an increase in av- 2.8bn) came from the National Bank Committee, industrial output fell by erage nominal wages (8.8% in July (NBU) to pay Ukraine’s debt to the 4.9% and 5.4% in July and August 5,4% this year compared to July 2012). IMF. They are not included in the in July and August 2013 compared to a 1.6% rise in 2013 compared to a However, Ukrainians spend more balance of payments nor do they af- July 2012 (against July 2011) and 1.6% rise in July 2012 and more on imported goods. fect the interbank market. Other- 2.0% decline in August 2012. The and 2.0% decline in While retail trade grows in vol- wise, residents would buy foreign August 2012 processing industry sank 9.0% in ume, it generates less income. In Q2 currencies in the amount of the defi- August; its downward spiral is likely 2013, pre-tax loss in retail trade was cit, using the hryvnia they keep on to continue. While the recent trade UAH 0.4bn, compared to a profit of their bank accounts. The currency war with Russia explains the 14.5% UAH 3bn in Q2 2012. The total would go abroad while the hryvnia decline in the engineering sector, losses of unprofitable retailers grew would end up on the NBU’s balance which sells most of its goods to Rus- 2.6 times to UAH 8.2bn. This will sheets. This would deplete banks’ sia, the fall in other sectors, includ- mostly likely result in retail trade’s balance sheets and liquidity and ing 25.0% in the chemical sector, negative contribution to GDP boost interest rates. 11.8% in light industry and 10.3% in growth, and the sector will join So far, the balance of payments furniture making, has different those currently in decline. has been positive thanks to an artifi- causes. Transportation is experienc- cial decrease in imports through the ing a decline as well: freight turn- The financial sector postponed purchase of gas for the over fell by 7.1% over the first eight The numbers would not look so sad heating season or shadow imports months of 2013. if the non-manufacturing sector of oil products; high borrowings by The key factors driving this eco- contributed to the development of the real sector and low outflow of nomic downfall are the “improve- manufacturing. This is not the case, foreign currency from banks. Each 8|the ukrainian week|№ 18 (60) october 2013 Crisis|Focus of these factors may soon vanish. Secondly, the government is al- nal and external debt and nearly Then, the banking system will face a ready having difficulties financing UAH 20bn to cover the revenues it new wave of troubles. So far, banks the budget deficit. It has not bor- was supposed to collect but never have been taking money out of the rowed anything on external markets did. This amount seems unattain- real sector by accepting deposits for the past five months and has able: the government’s internal re- and payments for loans issued ear- been failing to raise internal debt serves will not even cover half of it. lier while hardly returning anything for the past two months. Virtually The Cabinet of Ministers seems (see Unreliable funding). They all the money coming to its accounts to realize this. It is planning exter- do not care about the fact that man- from government bond placement nal borrowings in smaller amounts, ufacturing companies are facing is immediately spent to redeem ma- at higher interest rates and for more and more problems (plum- turing securities (see Unreliable shorter terms. The market under- meting income, mounting tax pres- funding). Unless the budget is re- stands this as well: 4-10-year gov- sure and non-residents are as reluc- vised, the government will have to ernment bonds are traded with a tant as banks to lend to them). In- find nearly UAH 85bn including yield of over 10%. The worst thing is stead, they use the funds deposited UAH 20bn to cover the planned that the Ukraine-2014 Eurobonds by households and companies to re- deficit of the consolidated budget, that are repayable in eight months pay their own outstanding debts to UAH 45.6bn to pay maturing inter- are traded at 8.75%. Thus, the yield non-residents and patch holes in the budget. As their resources for Improvement. To be continued the latter deplete, banks have been More and more se ors of the economy are experiencing a downturn. The positive net sellers of government bonds impa of this year’s record-breaking grain crops is crushed by the decline in indu ry since July. This means that they will and con ru ion not be able to help out the private Contribution to GDP growth by se ors sector or the government in times of 4% trouble. As a result, both could have 3% Indu ry Others to deal with their looming financial Con ru ion problems alone, which will boost 2% the risk of their default and aggra- Trade vate economic decline. 1% Public spending for the 0% Farming chosen -1% The worsening position of the pri- -2% Transport vate sector, unreliable banks as and communications sources of funding and the lack of -3% access to external markets would I II III IV I II make the budget a last resort for 2012 2013 manufacturing companies. In this Source: State Stati ics Committee, The Ukrainian Week case, fiscal stimulus could support monetary circulation at the pres- Unreliable funding ent level and prevent the deepen- Banks withdraw money from the real se or to finance the budget deficit. Yet, they ing of the recession and collapse in now have fewer resources to help the government in patching budget holes, so the some sectors. NBU is forced to buy back mo of the internal debt. As the government is borrowing The government does indeed less abroad, the NBU is becoming the only source for funding the budget deficit. support business through public If overused, it could throw Ukraine 20 years back to a period of hyperinflation procurements and funding, but UAH bn these companies are few. 30 Net government Net external borrowings State finance is in a very bad po- bond placement of the government sition. Firstly, revenues to the cen- NBU tral and consolidated budgets in 20 April, May and June 2013 were less than in April-June 2012. Even 10 though the situation changed slightly in July, preliminary data in 0 August signals that the decline is ac- celerating. State budget revenues in -10 August were UAH 27.8bn, i.e. 18.7% less than in August 2012. This is the -20 Inje ions into the real impact of the tax policy imposed by Banks se or from banks** the Cabinet of Ministers led by Pre- mier Mykola Azarov and First-Vice -30 III III IV III III IV III III* Premier Serhiy Arbuzov that has ex- 2011 2012 2013 hausted business, particularly over *Q3 data covers government bonds sold in July 1-September 15, including to banks and the NBU, and the last year to 18 months. Some ex- inje ions into the real se or made by banks over July-Augu perts estimate that the government **Inje ions into the real se or by banks is the net growth of loans issued to manufa uring companies will have a revenue shortfall of UAH and households less the net growth of deposits from them 20-40bn by the end of 2013. Sources: NBU, The Ukrainian Week № 18 (60) october 2013|the ukrainian week|9 Focus|Crisis curve for Ukrainian Eurobonds has is only 2% more than EBT over the ing to invest here, nor will they be almost gone from normal to prob- same period in 2012. Meanwhile, anytime soon. This makes the pros- lematic, and may soon fall into pre- unprofitable companies reported pects of economic growth dim. default. This will mean that the UAH 33.8bn of pretax losses, i.e. up If the government allows the market projects a very high risk of 83% from Q2 2012. As a result, default, the likelihood of which in- the Ukrainian government’s default business activity declines and in- creases with each passing month, in the short term. vestment plummets. Gross fixed even a deeper recession may not This time, delays in some parts capital formation (GFCF) fell by seem that critical. There is no other of public spending will not solve the 19.7%. This signals that neither option, with the policies of the Az- problem. If postponed, the pay- long-time business owners in arov-Arbuzov Cabinet leading to the ments will only mount. Perhaps this Ukraine nor new investors are will- destruction of business. is why the government is now talk- ing of budget sequestration to revise Sinking deeper public spending, in order to cut the Economic ati ics crush the government’s positive proje ions and the hopes of some deficit. On the one hand, it will help experts to see an improvement soon. As a result of the lengthy economic downturn, prevent the default and support the the real se or is facing more and more financial difficulties that could push the government’s financial position. On epicenter of the crisis into the financial field at any time the other, it will hit business hard Growth in %, year on year and aggravate the crisis, since en- 4 trepreneurs that have already expe- GDP 3.0 rienced difficulties will get even less 3.1 3.0 money. The only chance to avoid an 2.5 2.0 2.4 accelerating economic decline is to 1.5 1.6 cut the part of public spending that 1.0 1.3 -1.3 -2.5 -1.1 -1.3 is stolen and transferred to the 0.5 0.1 0 0.3 shadow. However, this runs counter -0.5 to the nature of the current regime. -1.0 2.2 3.0 -1.5 It is more likely to force the NBU to -2.0 -2.1 -2.2 -2.0 -2.5 print more unsecured money, -2.5 which it is actually doing already. -3.2 If the budget is not revised and -3.9 access to affordable borrowings is -4 -4.9 Indu ry -5.2 blocked for an extended period, in- -5.4 -5.6 -5.7 ternal reserves will not last long. -6.0 The average annual inflation rate -6 planned in the 2014 draft budget is around 8%. Given the current low inflation rate, this will only be pos- -8 sible if one of the two following con- -9.3 ditions is in place: either the 15-20% -10 devaluation of the hryvnia at the 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 end of 2013 to adjust prices for im- 2012 2013 ported goods – this will immedi- Source: State Stati ics Committee ately lead to the planned price rise - or the NBU will once again turn to Budget gaps the mint. The deficits of the central and consolidated budgets grow and financing them is becoming more and more difficult. The government is now talking of budget The neglect of the real seque ration. It will hardly prevent a default, but is more likely to accelerate sector an economic decline. So those in power may well turn to the mint to print more Companies and households have money and accelerate inflation found themselves between the devil 40 Monthly deficit, UAH bn Monthly revenues, UAH bn 60 and the deep blue sea. Banks are ex- (right-hand scale) tracting huge sums from the market Consolidated State budget 30 budget (right-hand scale) 50 to solve their problems and finance (right-hand scale) the government. The budget is in- creasing tax pressure on business 20 40 while returning most of the col- lected revenues to only a few privi- 10 30 leged companies. The external sec- tor is no longer lending to Ukrai- 0 20 nian businesses, and earnings from exports are shrinking. Statistics sig- -10 10 nal that entrepreneurship is on the State Consolidated budget budget brink of crisis. -20 0 In Q2 2013, profitable compa- 01. 2011 07. 2011 01. 2012 07. 2012 01. 2013 07. 2013 nies in Ukraine reported UAH 40.1bn of earnings before tax which Sources: Finance Mini ry of Ukraine, State Treasury, The Ukrainian Week 10|the ukrainian week|№ 18 (60) october 2013 focus|Business environment Khodorovska, head of the research department at HeadHunter, says the payroll is shrinking too: “Com- panies are now at a stage where they Unnerving hire beginners who cost them less than highly-qualified professionals.” The number of vacancies in the pro- duction sector is falling, and new ones are mostly in trading compa- Business nies. Bankruptcy professionals claim that they have seen a surge in bank- Ukrainian entrepreneurs take a break ruptcies, most of them being genu- ine. Notably, business activity is from business folding in Kyiv. On some streets, several different-sized companies f journalists write that this Author: the business I built over the years. I have closed down almost simulta- asset belongs to me and Marharyta can give you hundreds of similar ex- neously since the beginning of the that I am evading taxes, Ormotsadze amples,” Serhiy laments. year. At Chervonopilska Street, a “Ithe tax police will be here In the last three years of this de- café, beauty salon, fitness centre tomorrow and will simply take away tachment, the most proactive Ukrai- and a store shut down within sev- my business,” says Serhiy, co-owner nians – the middle class – have seen eral months. of a big Kyiv retailer. “But that’s businesses taken away from their how the entire country is working colleagues, competitors and part- Administration of cronies today.” ners, as well as mounting tax pres- The Ukrainian Week talked to The businessmen The Ukrai- sure. Still, they have not united to the owners of small, medium and nian Week spoke to admitted that stand for their common interests big business, and revealed three the Ukrainian state machine had since the Tax Maidan in 2010 (see major trends in the local business. never been friendly to non-oligar- Protest chronicles). As a result, The first is escalating clan struc- chic business. However, repressive business activity is abating. Recruit- tures and centralization through ad- and aggressive domination in fa- ers say that they are getting more ministrative leverage. Ukrainian vour of the chosen ones has Business CVs, a signal of mass layoffs, espe- business owners are long used to mounted since the Party of Regions owners are cially in the manufacturing sector. operating in a corrupt environment came to power. Business owners confident that, Kruykivskyi Rail Carriage Building and never-ending bribes. But most not linked to those in power thus as soon as Plant, one of the biggest producers issues which a bribe to a civil ser- seem to be taking a detached posi- they create a of rail carriages in Ukraine, recently vant could solve four to seven years valuable asset, tion, often manifested in the reluc- someone will announced plans to lay off 500 became much more burdensome in tance to develop. “Why? Someone come and workers. According to HeadHunter, 2010. “The problem is degradation, in the government will notice my take it away, an international recruitment web- mass systematic negligence and ir- success tomorrow and raid by busi- regardless of site, the number of new vacancies in responsibility of those acting on be- ness. The best thing I can get out of the scale and H1 2013 compared to the same pe- half of the state. There is ever less it is a symbolic “compensation” for size riod of 2011 has halved. Uliana common sense in the country, turn-
Protest chronicles The Tax Maidan was a series of massive pro- tests by business owners against the Tax Code passed by the legislature in November 2010, un- officially referred to as Azarov-Tihipko Code. The protests started on No- vember 16, escalated on November 22 and stopped on December 3 when hundreds of police officers disrupted the protesters and wiped out their tent town at Maidan Nezalezhnosti (Independence Square) in Kyiv. As a result of the protests, part of the new Tax Code was vetoed. The Tax Maidan was the first massive anti-tax rally in the independent Ukraine.
12|the ukrainian week|№ 18 (60) october 2013 Business environment|focus ing into a farce,” says Valentyn Ka- preservation, which means in- Denys Oleynikov, the owner of lashnyk, Director of OS-Direct mar- tegrating into the model in ProstoPrint; Viktor Romaniuk, keting group. which formal rules are ignored the rival of Tetiana Zasukha, a According to estimates by The and informal rules change all pro-government candidate in the Ukrainian Week’s experts work- the time,” claims Valentyn Ka- 2012 parliamentary election; as ing with regional and local commu- lashnyk. well as Volodymyr Nemyrovskyi, nities as well as businesses, the only To show who’s boss in the the owner of the steel cable fac- SMEs operating unhampered in the country, a slew of businesses tory StalKanat-Silur and Ihor provinces are the ones that have have been demonstratively “ex- Liski, a Luhansk-based business- family or crony connections with lo- ecuted” in the regions over the Denys Oleynikov man – both headed the oblast of- cal governments. Many others have past few years. Companies were After fices of Front Zmin (Front of temporarily shut down their busi- taken away entirely or in part. Few persecution of Change) in the 2012 election cam- nesses or sold them in whole or in owners risked reporting these his company paign. Companies that manage off- ProstoPrint part to local “feudal lords”. This feu- raider attacks, represented as a for making shore planning claim that more and dalism now thrives everywhere, change of owners or the emergence T-shirts with the more Ukrainian business owners are with cronies on all levels, from small of co-owners. Officially, the attack anti-president now ask them for help in getting resi- business to monopolists in major was presented as a regular or un- “Thank you, dence permits. The fear machine sectors of the economy. It is now al- scheduled tax inspection after people of seems to go beyond just raider most mandatory for existing busi- which nothing seemed to change Donbas…” threats: the murder of entrepreneurs nesses to integrate into the Family much. “The business is operating slogan and and government representatives oligarchic mechanism built by the normally,” was the response of accusations of linked to business in one way or an- government. “The country has come companies to The Ukrainian illegal use of other has become as frequent and to a sort of bureaucratic collectivism Week’s enquiries, after initial re- the Euro 2012 violent as it was in the 1990s. logo, Denys where profits are distributed ports on raider attacks or tax in- Oleynikov amongst the party bureaucrats run- spections that looked more like po- and his family Uncertainty ning the economy and the state,” lice raids. were granted The third trend in Ukrainian busi- says management consultant Marh- At the end of 2011, Vladyslav political asylum ness is uncertainty. aryta Chernenko. According to the Burda, the owner of the Antoshka in Croatia in “The future looks dim right National Bank’s (NBU) report on chain of children’s stores, had prob- early December now. The choice between migration business expectations among lems with tax and customs authori- 2012 and continued struggle at home is Ukrainian enterprises, “representa- ties. Then, in December 2011, he now in the minds of most people, tives of big companies involved in said that Yuriy Ivaniushchenko, a valued as “social drivers” in the exports and imports, in which the Party of Regions MP close to the world. Many choose a third option. government owns over 25%, remain Family, helped him out. Over 2012- They take a few years off to get an- the most optimistic.” 2013, law enforcers have raided the other degree or start teaching some- headquarters of many well-known where to preserve and expand their The fear machine companies, such as TMM, a con- intellectual horizons,” says Valentyn The second trend is the ever-pres- struction company, as well as Kalashnyk. ent fear of those in power. In an ef- online stores Rozetka and These developments in busi- fort to adapt to the economic model Sokil. Many business owners ness are already affecting the that evolved in post-Soviet states, who did indeed operate with economy and its competitiveness most Ukrainian business owners violations and did not come to on the macro level. “One of the break some rules when running any agreement with those in primary competences for execu- their business. Otherwise, they will power ended up in jail. Ruslan tives in international practice is not survive: some pay wages in en- Demchak, the owner of ERDE values and behavioural skills. In velopes, others have double and tri- BANK, the Dobrobut insurance Ukraine, such details are not even ple bookkeeping. One of the key group, Business Radio and Viktor Romaniuk considered,” Marharyta Chern- components of successful business other assets, was charged with fi- A United enko admits. “The result is the long- here is a protectorate, which comes nancial fraud and ended up in Opposition’s term decline in the quality of Ukrai- at a cost. In 2010, many business prison. This was before the 2012 candidate in the nian goods and services, as few play- owners found themselves in a situa- parliamentary election where he parliamentary ers get a privileged environment for tion whereby they either had to ad- ran as an independent candidate election, Viktor their business. We can expect pro- just to the tougher system of rela- against the Communist Party’s Hry- Romaniuk was tectionist measures to stifle imports tions with the government or sell horiy Kaletnyk. Demchak has been the main rival and support domestic producers their assets to its representatives for released but ERDE BANK is under- of the pro- soon.” Some, such as higher customs going liquidation, while most of his government duties and the newly-introduced ve- peanuts. Many business owners, al- candidate, ready hit by the economic crisis, companies now have new owners, Tetiana hicle utilization fee, are already in have opted for the latter. “Optimism The Ukrainian Week’s sources re- Zasukha, in place. and faith in the prospects of a busi- port. None of these companies have district No. However, the manual support ness are important for an entrepre- officially announced this change. 94 where a of chosen domestic producers will neur. Today, there is none. Instead, Another telling fact is that Business re-election is have no positive effect on their abil- business owners are confident that, Radio now transmits the most pro- scheduled for ity to produce high-quality goods as soon as they create a valuable as- Communist Party propaganda. December 15. and services. Moreover, it is likely to set, someone will come and take it Many business owners were He was forced further crush the competitiveness of away, regardless of the scale and forced to leave the country. They to leave Ukraine Ukrainian companies, which will under pressure size. First and foremost, they have claimed to have faced direct political end up in the hands of the Family, to take care of protection and self- or business pressure. These include oligarchs and those in power. № 18 (60) october 2013|the ukrainian week|13 Economics|Investment Capital Outflow Emerging economies have enjoyed a steady inflow of capital in recent years. It boosted their development and stock markets. This flow is now reversing, hitting many of them hard. Ukraine is one of the first to suffer
Author: Lyubomyr Shavalyuk on Ukraine’s trade balance by The Turkish syndrome the end of 2013. Ukraine is one of the top emerging countries that are mo vulnerable to an abrupt end However, a bad deficit can al- to capital inflow. The ate of the BoP in emerging economies and the situation on global financial markets signal that a painful deficit of external financing is ju apital travels across the globe ways be covered with borrowings a matter of time in the blink of an eye in pur- and the inflow of foreign invest- Capital-freeze risk index suit of profit. A country that ment. It does not necessarily sig- Maximum risk = 20 Coffers plenty of options for nal that there are real problems. Turkey 18 more efficient business or the pro- Countries can live with current South Africa 13 duction of new goods or services is account deficits for years, and Columbia 13 the perfect destination. As soon as many do. Venezuela 12 new ideas run out and managers The other negative factor is the UKRAINE 12 relax – which is inevitable sooner outflow of foreign currency in cash Brazil 12 or later – capital disappears. from the banking sector, as Ukrai- Argentina 12 Emerging markets are going nians buy it up. However, this, too, Peru through this right now. Their econ- does not look all that critical: the 11 omies are slowing down and there leak of foreign currencies from Mexico 11 is no motive for capital to remain banks in the first seven months of Indonesia 11 there. 2013 fell by 36% compared to the India 11 Earlier this month, the busi- same period in 2012. Chile 11 ness magazine, The Economist, With the abovementioned pos- Poland 10 published the Capital-Freeze Index itive trends, many could have the Thailand 9 Romania 8 (see The Turkish syndrome). impression (quite a few analysts *Based on the current Its 20-point scale assesses the vul- actually do) that Ukraine’s balance the Philippines 7 account balance, the ratio of Malaysia 7 short-term external debt and nerability of emerging economies of payments is in good shape. They external-debt payments to to an abrupt halt of capital inflow ignore the fact that the government Hungary 6 government reserves, credit growth Russia and the Chinn-Ito measure of financial based on four variables. These in- stopped borrowing from abroad 5 openness cluding the current account bal- five months ago or that Ukraine’s China 5 Algeria ance, the ratio of short-term exter- international reserves have 5 Source: The Economi nal debt and external-debt pay- dropped 12% since the beginning ments to government reserves, of the year to USD 21.7bn as red credit growth and the Chinn-Ito flags. Many expect the window of measure of financial openness. liquidity to open later and boost Shaky pede al Ukraine scored 12 points and both borrowings and reserves. This The real se or is borrowing less from abroad. Despite Ukraine’s image as one of the riskie inve ment de inations, this is largely due to the sluggish landed fourth to seventh of 26, to- is a misleading illusion. They fail to development of the local economy and the out anding liabilities of Ukrainian gether with Brazil, Argentina and take into foreign borrowings of the companies that do not match their performance Venezuela. Its risk for a sudden private sector into account, which Foreign borrowings by the real se or stop of external financing is among make the illusion of stability widely USD bn USD bn the highest. promoted by those in power null 8 Liquidity outflow 4 from banks and void. Repayment (right-hand scale) 3 Misleading improvements The taken loans and issued Borrowings Balance 6 (right-hand scale) 2 Most experts note two negative bonds by the real sector are a key aspects in Ukraine’s balance of element of Ukraine’s balance of 1 payments. The first is the huge payments (see Shaky pedestal). 4 0 current account deficit. It In 2011, net inflow of foreign cur- -1 seemed to decline slightly in the rencies in the form of loans and 2 -2 first half of 2013, but this im- bonds for the real sector covered -3 provement was orchestrated and 41% of the current account deficit. 0 -4 temporary. The latest trade con- In 2012, it covered 47%. Ukraine III III IV III III IV III flicts with Russia will already was living in debt, but this was 2011 2012 2013 have a palpable negative impact largely incurred by businesses. Source: NBU 14|the ukrainian week|№ 18 (60) october 2013 But this year, things have changed. one hand, Ukrainian non-financial The non-financial sector has been bor- business had an adequate leverage ra- rowing less from abroad. Yet the vol- tio, i.e. the level of internal and exter- ume of its repayment is not falling, as nal borrowings from banks with inter- loans taken earlier are due. As a result, est to equity, at the beginning of 2013. the net inflow of foreign currencies It was nearly 60% a normal standard of from corporate non-bank borrowings less than 100% and over 200% being was negative in three of seven months critical. The interest-bearing external in 2013. It covered only 11% of the cur- debt of the real sector that does not in- rent account deficit over January-July. clude trade loans and intercompany The situation would be even worse if, debt was USD 43.9bn at the end of on the orders of the government, state- 2012. owned companies and banks, includ- On the other hand, the ratio of in- ing UkrZaliznytsia (the Ukrainian Rail- ternal and external debt to the operat- way), UkrAvtoDor (Ukrainian Roads), ing results of Ukrainian enterprises OshchadBank (Savings Bank) and looks much more depressing. In 2012, UkrEximBank, had not gone to global the debt to EBIDTA ratio was 3.1 for all markets as intermediaries seeking bor- non-financial companies with up to 3 rowings to support the budget. Some of being normal and over 4-5 being criti- them do not need funds for develop- cal. Their interest coverage ratio (EBIT ment. They mostly had UAH 8-10bn in to interest payments), which shows cash on their bank accounts during the how easily a company can pay interest past three years. In December 2012, on the outstanding debt, was 1.9 with their balances grew to UAH 20bn but over 1.5 being normal and less than 1 – dropped to UAH 18bn by early August critical. 2013. This signals that state-owned Since Ukrainian enterprises reported companies borrow abroad, then de- 74% less gross earnings in H1 2013 com- posit the money in banks chosen by the pared to the same period in 2012 (down government. These banks then buy from UAH 29.2 to UAH 7.6bn), the government bonds. So far, statistics for abovementioned ratios may already sink borrowings abroad have looked good, to the critical point this year. As a result, but this will not last. Ukrainian banks and non-resident fi- nanciers will stop lending to local busi- Gloomy prospects ness. So, a halt in capital inflow to the Manufacturing companies will have to real sector may be accompanied by a repay more and more principal of the surge of bankruptcies in private busi- debt accumulated in previous years, but ness. Some red flags already signal this. will be unable to continue to borrow in This is hardly surprising: if it could de- the amounts to which they have become velop, business would earn the income to accustomed. The first reason for this is repay its mounting loans. This would en- the situation on the global financial courage financiers, including interna- market. While trillions of dollars still tional ones, to lend money to business. circulate there, searching for profitable Capital inflow would boost economic de- businesses, the investment trend has velopment. However, the government is been sustainably negative since the be- hampering the development of entrepre- ginning of 2013. Capital is flowing out of neurship, so the impact of its policy is yet developing countries on a massive scale, to be seen, particularly for the balance of including from a number of Asian econ- payments. omies that had enjoyed rapid sustain- It appears that the net borrowings able development and provided a lucra- of the non-financial sector that compen- tive return on investment in recent sated the outflow of foreign currency in years. As a result, their currencies be- cash from banks in recent years (see come devalued to adjust their financial Shaky pedestal) will inevitably plum- systems to the new reality. The hryvnia met. Coupled with the current account is not following suit, so the expectation deficit that will grow again after a tem- of devaluation may speed up capital porary improvement and the massive outflow from the real sector. Economic buyout of foreign currencies by Ukraini- decline, the sluggish development of the ans (in August, for the first time in the financial system, the huge current ac- past five months, Ukrainians bought count deficit and openness to capital more foreign currency from banks than outflow will not make things better. they sold), this could tip the hryvnia ex- Ukraine could avoid this global change rate. Manual methods will not outflow trend, since its appetite for for- work here. The only option for the gov- eign capital is meager on the global ernment is to develop business. But to scale. But domestic business would do so, it should admit its mistakes, re- need good fundamentals to stop it, verse its budget and fiscal policy, and which sadly, it doesn’t have. On the learn patience. neighbours|European integration Back to Europe Project In his exclusive interview for The Ukrainian Week, Lithuania’s Prime-Minister Algirdas Butkevičius talks about the importance of the Association Agreement for Ukraine at the Vilnius Summit and the impact of European integration on his country
ithuania as the host of the East- ern Partnership programme will UW: Russian propaganda in the ern Partnership Summit in Vil- prove inefficient and unpromising. Baltic States repeats over and over nius is a strong lobbyist of It is essentially the stance and pro- again that the union with Russia LUkraine’s European integra- active actions of the official Vilnius would guarantee thriving for tion. Its current Prime-Minister Al- that determine whether Ukraine them. In the EU, they are turning girdas Butkevičius is not just a top will remain in the grey zone turning into depressed peripheral politician of his state – this year’s into a buffer zone between Russia countries while their citizens President of the EU Council – but and the EU, or whether it will soon migrate in search of better jobs on an advocate of Ukraine in the EU. gain more or less equal rights a massive scale. Such clichés are Lithuania’s major task for the presi- among European states. used to discourage countries that dency is to draw the attention of all Lithuania is a good example of want European integration. But 28 EU member-states to Eastern how consolidated socio-political they are easy to overturn. Partnership and Ukraine. Lithua- will becomes one of the major pil- Lithuania’s example can do that nian government believes that the lars for de-Sovietization and mod- thanks to the progress it made success of the Vilnius Summit and ernization in a country. Hopefully, after just ten years in theE U. Is the signing of the Association several more post-Soviet states will that right? Agreement is the test for the EU: if soon return to Europe thanks to Following the restoration of in- the agreement is not signed, it will Vilnius which understands them dependence, the next natural step damage the EU’s image while East- and Europe equally well. for Lithuania was to return to the 16|the ukrainian week|№ 18 (60) october 2013 European integration|neighbours European family. Geographically, Lithuania manage to conduct all employment problem in Lithuania. historically and culturally Lithuania transformations without this aid? At the end of 2011, the number of belongs to Europe, we share the We are delighted to know that jobs that were newly created and/ same values of democracy, freedom according to the new data of the or retained due to the EU structural of speech, human rights, the rule of European Commission, Lithuania assistance accounted for 115,500, law, solidarity, etc. So it was only is a leading member state with re- i.e. 9.1% of all jobs, and reduced un- natural for us to seek membership gard to the share of the allocated employment rate by 7.4 p.p. It is in European and Euro-Atlantic in- EU structural funds. More than projected that by the end of 2013, stitutions. Another key factor in EUR 4.2bn have been paid to Lith- 154,000 new jobs will be created support of EU membership was the uania out of all the EU structural and unemployment rate will drop awareness that the legal, economic funds, i. e. 63.4% of the EU struc- by 10.1 p.p. as a result of the assis- and other reforms were carried out tural funds allocated for the entire tance. for the benefit of our people. Euro- period of 2007–2013. Lithuania is pean integration was the process ahead of all other EU member-states UW: Is there a high risk that the where all major political parties, by the share of interim payments November summit will fail and the businesses and society joined ef- from all funds allocated by the Euro- EU-Ukraine Association Agreement forts for the same goal that united pean Commission. Also, Lithuania will not be signed? Does the EU Lithuania – the prospect of mem- received a title of the Region of Ex- realize the possibility of outright bership in the EU. cellence, which is established by the provocation from Russia which has The reforms did cause some European Commission and awarded leverage both in Ukraine and in difficulties, but in the long run they to regions that are most advanced several European capitals? turned out to be beneficial. Today, and the best in terms of making use Negotiators of the EU and all the citizens of Lithuania can live, of the EU funds and pursuing the Ukraine did a huge work: the text of work and study where they want, aims of the Cohesion Policy. the Agreement was agreed (it took setting up a business has become a Assistance of the EU structural six years) and all our efforts have relatively easy task anywhere in Eu- funds offers the country opportuni- been consolidated for the final aim: rope. We fully share the benefits of ties to implement the national long- signature of the EU-Ukraine Asso- being part of the single market: our term objective: to ensure the contin- businesses can export their prod- uous growth of the country’s econ- ucts or services freely to a market of omy and reduce disparities of The EU doesn’t have any half a billion consumers. Some economic development between plan B – and doesn’t need prices of daily services have dra- Lithuania and the EU average. To matically decreased. For instance, this end, Lithuania seeks to improve one – for Ukraine due to the single European market, its GDP growth and create more and prices of mobile calls have dropped better jobs. ciation Agreement and Deep and by nearly 70%. As a matter of fact, Long-term economic effects (the Comprehensive Free Trade Agree- Lithuania enjoys the lowest call supply side) were primarily ob- ment (AA/DCFTA) during the East- rates in the EU. In addition, the served in the general economic in- ern Partnership Summit in Vilnius. membership in the EU is a quality frastructure (78.6% of the overall as- The EU doesn’t have any plan B - catalyst for national economies. sistance was attributed to this and doesn’t need one - and I Lithuanians have – and have al- sphere), 18.8% was given to the hu- strongly believe that the end of No- ways had – a positive attitude to- man resources development, and vember is the best time for the sig- wards the EU. According to the lat- 2.6% went to R&D. nature of AA/DCFTA. Russia has to est Eurobarometer survey, 65% of We already know that the EU respect sovereign choice of Ukraine. Lithuanians (62% in the EU) feel structural assistance for 2004–2013 Economic threats and pressure is that they are citizens of the EU, and led to an increase in the average an- harmful not only for Ukrainian 70% of Lithuanians (EU-average is nual growth of the real GDP by economy, but also for Russia and its at 56%) think that the most positive 1.57p.p. in terms of comparable business operators. It is clear that result of the EU is free movement of prices in 2005. the earliest possible start of provi- people, goods and services within A total of LTL 66.36bn of addi- BIO: the EU. Furthermore, 64% of Lithu- tional nominal GDP is projected to Algirdas Butkevičius has served as Lithuania’s Prime-Minister anians (49% in the EU) are optimis- be created in the period of 2004– since December 2012. In 1996–2008, he was member of the 7th, tic about the future of the EU and 2015, while the integrated return is 8th, 9th and 10th Seimas, elected as candidate of the Lithuanian 72% (67% in the EU) think that EU to reach 1.97, i.e. every invested lita Social Democratic Party. He served in a number of parliamentary voice counts in the world. Another is to bring a return of LTL 1.97 in the committees, including the Committee on Budget and Finance Eurobarometer poll from May 2011 nominal GDP. Financial engineering (Chairman in 2001–2004), Committee on European Affairs (2005–2006) and Committee on Economics (2006–2008). In showed that 67% of Lithuanians be- instruments, introduced during the 2004–2005, Mr. Butkevičius was Minister of Finance in the 12th lieve that our country has benefited programming period of 2007–2013 and 13th Governments of the Republic of Lithuania. From 2006 to from the EU membership. There provided an additional impetus for 2008 he served as Minister of Transport and Communications. In can be no doubts that there are solid both the real GDP growth and a 2009, he became the leader of the Social Democratic Party of reasons for such confidence. higher return in the nominal GDP, Lithuania (SPDL). During the 2012 parliamentary election, Mr. as they prompted a relative reduc- Butkevičius was among the few candidates who were elected in UW: Lithuania has received almost tion in the cost of investment and the first round of the popular vote. On 22 November 2012, he was EUR 9bn under various indirectly stimulated large private elected by the Seimas to be Prime-Minister-designate. He was -ap programmes of EU funds. This is investment. pointed as Prime-Minister by presidential decree on 7 December significant financial assistance for EU structural fund investments 2012 and his cabinet was sworn on 13 December, following the approval of the governmental program by Parliament. Central and EasternE urope. Would significantly help to address the un- № 18 (60) october 2013|the ukrainian week|17 neighbours|European integration sional application of AA/DCFTA is More than twenty years have 67% ing activities, which, although gov- within the best interest of everyone. passed since Lithuania and Ukraine of Lithuanians erned by a special Law on Lobbying believe that the gained independence, but new country has Activities, is not yet sufficiently ef- UW: There have been talks of challenges are emerging. I am con- benefited from the fective, in our opinion. energy diversification in Ukraine vinced that the future and prosper- EU membership The relevant legal acts provide for a while now. This issue is ity of Central Europe inevitably de- for an obligation to publicize infor- equally important for Lithuania pends on our commitments to build mation about official meetings of which buys Russian gas at the democracy, develop liberal society, state and municipal authorities and highest price inE urope. However, and follow common values. decision-making bodies, as well as Lithuania has initiated and Following the restoration of its planned legislative initiatives, legis- implemented the project to build independence, Lithuania immedi- EU structural lation promoters, and non-civil ser- an LNG terminal and implemented assistance for 2004– ately declared its choice: integra- 2013 led to an vants that are participants in the the EU Third Energy Package. How tion into the EU and NATO; and increase in the legislative process; they also pro- has Vilnius accomplished this? adopted the policy of restoration of average annual vide for a liability for the submis- growth of the real Lithuania, although an “energy historical justice, better known as GDP by sion of knowingly misleading infor- island” within the EU, is one of the the slogan “back to Europe”. All po- mation that can have an impact on most active promoters and sup- litical parties reached a consensus 1.57p.p. the proposed legal regulation. porters of the 2011 EU Council de- on the membership in the EU and Another important step taken cision to create a fully functioning NATO as the principal foreign pol- in the early 2012 is provisions of the internal EU energy market by 2014 icy objective. And this strategy was Law on Funding of, and Control and to eliminate energy isolation by successful: Lithuania became mem- Over Funding of Political Parties 2015. To increase security of sup- ber of the EU and NATO in 2004. and Political Campaigns, which ply, competitiveness and sustain- The abovementioned elements abolished the right of individuals ability in the energy sector, Lithua- show the importance of a clear and legal entities to donate to polit- nia is implementing a number of choice - or determination - and ical parties, and legal entities to do- strategic energy projects: power in- consensus. nate to political campaign partici- terconnections with Poland and Obviously, this is a long-term pants. Sweden, gas interconnection with process that requires both strong The fight against corruption is Poland, and LNG terminal. The will and resources, but Lithuania, among the priorities of the 16th 2009 European Commission’s ini- being one of the closest friends, en- Government of the Republic of tiative to deliver the Baltic Energy courages Ukraine to use all the op- Lithuania. The Government Pro- Market Interconnection Plan (BE- portunities provided by the Eastern gramme provides for a range of MIP) (a comprehensive Action Plan Partnership initiative. It is the right anti-corruption measures that on energy interconnections and moment once more to demonstrate should further strengthen the sys- market improvement in the Baltic how partnership between the EU tem of fight against corruption and Sea Region) provided clear steps and its neighbours can bring and concrete measures to be taken changes to the societies in transi- to better connect the Baltic coun- tion. Membership in the EU tries to the wider EU energy net- is a quality catalyst for works. Therefore most projects that UW: The problems of the Ukrainian are currently under implementa- economy stem from its oligarch national economies tion are of regional significance and model. How did Lithuania manage must be carried out in close coop- to avoid this? In your country, this ensure efficiency of fight against eration with our regional partners. problem is not as dominating as it corruption, also on the basis of rec- On the other hand, having is in Ukraine, although scandals ommendations for implementation necessary gas and electricity in- about the influence of business on of international anti-corruption terconnections is not enough. the government sometimes erupt? documents, which Lithuania has Establishment of necessary legal In order to enable constructive ratified, provided by the Group of basis to promote transparency cooperation between the govern- States Against Corruption and competitiveness in the en- ment and the business, which is (GRECO) and UN experts during ergy sector is equally important. very important, Lithuania seeks to the evaluation period. Successful implementation of make the legislative process and At the end of August, the gov- the 3rd EU energy package also decision-making more open and At the end of 2011, ernment submitted to the Seimas the number of jobs highly depends on cooperation transparent. Last year saw the that were newly a draft bill amending and supple- and talks with energy compa- adoption of the Law on Legislative created and/or menting the National Programme retained due to the nies, and of course in Lithua- Framework, which provides for a EU structural of the Fight against Corruption for nia’s case the European Com- possibility of making legislative assistance accounted 2011–2014, which is the main na- mission’s support has been ex- procedures public in electronic for tional anti-corruption framework tremely important throughout space, thus ensuring their transpar- 115,500, that brings together the state’s the whole process. ency and timely consultations with i.e. anti-corruption efforts. This the public. The law also contains an amends and supplements the ac- UW: What are primary differences important provision stating that if 9.1% tion plan for the programme im- between post-communist the initial legislation has been of all jobs, and plementation, seeking to ensure reduced transformations in Ukraine and drafted by a lobbyist, it should be unemployment rate an effective fight against corrup- Lithuania? Why are the two former made public (i.e. placed in the Leg- by tion in the spheres of public pro- Soviet countries in very different islative Information System). This curement, health, determination positions now? enables closer control over lobby- 7.4 p.p. of disability, etc. 18|the ukrainian week|№ 18 (60) october 2013 |Opinion The Russia That is Losing Us
y Ukrainian-born grandfather is visiting diplomats should probably take better care of the from Russia. “Kyiv is developing nicely,” rights of adopted children. Instead, one Russian he says as we tour the city. “Beautiful. MP laments that adoption should be banned, be- MBut if you listen to our, Russian, TV sta- cause Russian children are being made into zom- tions, you get the impression that everyone here is bie-like soldiers, who will subsequently fight starving to death – especially lately. They just hate against Russia! the idea of Ukraine joining Europe!” People buy it. For Russia, the “we are surrounded Author: “You’re all going crazy about this association,” a by enemies” concept has long been the general pro- Oleksandr friend from Russia wonders in a Facebook chat. “I paganda line, a major railway track. The problem is Michelson get it: that’s all you write about because that’s your that it’s impossible to come off a railway track. The job, but what about all other Ukrainian users! And hate campaign against Georgia did not begin on it’s always Putin who is making life difficult for you. August 8, 2008. It started immediately after Saa- But here, no one is interested in your association or kashvili insisted on the removal of Russian military in Ukraine.” bases from his country’s territory. 2006 was the The people I talk to live in two different worlds. My highest pre-war peak of this campaign, with the grandfather gets his in- mass deportation of formation about the Georgians from Russia world from the TV and “We are surrounded by under the pretext of the Rossiyskaya Gazeta enemies” is the national battle against illegal im- (Russian Newspaper); migration. At least three my friend – from social idea of today’s Russia, people died then as a re- networks and serious and even Putin will hardly sult of detention condi- weeklies if he wants to tions and the over- know something specific be able to change it. Even if crowding of special de- on geopolitics. he wanted to tention centres. It is A quick look at the Rus- almost sure that shortly sian mass media shows after the end of Saa- that on the public level, it’s not so much a war kashvili’s term in office Georgia will turn out against Ukraine becoming closer to Europe, “not friendly enough”. This will happen soon, but the formation of a blackened image for so keep an eye on this. both Ukraine and the EU. How else would you ex- There is a law in economics, that when the share of plain the fact that state and government-controlled a country’s military industry goes beyond a certain TV channels buzz of the inevitable troubles for level, war becomes inevitable. Otherwise, profit- Ukrainians from EU association, the cunning Yanu- ability falls and an economic crisis ensues. The kovych and so on, while serious publications hardly same applies to propaganda. When profoundly de- mention this? signed to fuel hatred, it is hard to switch to a differ- This means that Ukraine-EU association does not ent track. pose any serious threats to Russia – only phantom Therefore, it is futile for Mykola Azarov to publicly ones. They are provoking hysterical statements expect that Russia will calm down after association from Putin’s adviser Sergei Glazyev, Russian MPs between Ukraine and the EU becomes a fact. There and others. In turn, this hysteria fuels the phantom is also no purpose for some top Ukrainian and Rus- threats. sian journalists to express the hope that closer ties Indeed, not everything is smooth in the Associa- between Ukraine and the EU will turn out an ideo- tion Agreement, and Polish apples could actually, logical benefit for Russia – and eye-opener to the in theory, sneak onto the Russian market as Ukrai- fact that there is nothing bad in the association nian fruit. But is that a reason to restrict the im- with the EU, and Ukraine itself will be viewed as a ports of Ukrainian crushed stone and rolled steel, “bridge between East and West”. not to mention locomotives or helicopter en- The opposite will happen. The supporters of asso- gines?! ciation should be aware of this. “We are surrounded The last time something like this happened was by enemies” is the national idea of today’s Russia, with the notorious law prohibiting the adoption of and even Putin will hardly be able to change it. Russian children by U.S. citizens. Indeed, Russian Even if he wanted to. № 18 (60) october 2013|the ukrainian week|19 Society|Regions Odesa: Politicians as Merchandise The stereotypical image of Odesa Oblast as a pro-Russian region and mainstay of the Party of Regions turns out to be far from reality
Author: The Odesa myth northern areas—the historical Bohdan Butkevych, Kyiv–Odesa– “Odesa Oblast is not, has never Odesa region and Bessarabia, Liubashivka–Balta–Illichivsk– been and never will be a politically which was added to the oblast as Ovidiopol–Bilhorod-Dnistrovsky monolithic entity,” asserts Anatoliy late as 1940.” Boiko, head of the OPORA NGO The oblast’s electoral senti- he socio-political situation and chief of the Ukrainian Voters’ ments characterized by a love of in Odesa Oblast has its own Committee in Odesa Oblast. freedom, a penchant for private en- nuances, covert subtleties “Odesa may have the biggest num- trepreneurship and detachment Tand purely local features. ber of electoral districts and over from the all-Ukrainian context can The region is best described as 700,000 of the region’s 1.8 million largely be attributed to its histori- multifaceted, multi-ethnic and voters, but it stands in stark con- cal and intellectual past. The re- multi-zonal, composed of three trast to other parts of Odesa Oblast. gion did not endure serfdom under dissimilar electoral and intellec- There are three sub-regions in the the Russian Empire and suffered tual groups. oblast: the city of Odesa and two relatively little damage in the Sec-
WINDOW DRESSING. The popularity of Odesa Mayor and Party of Regions MP Oleksiy Kostusiev is plummeting following last year’s financial scandals. He was evidently hoping to whiten his image by, among other things, granting special status to the Russian language. However, this tactic misfired even in Russian-speaking Odesa 20|the ukrainian week|№ 18 (60) october 2013 Regions|Society ond World War due to Romania’s from the distant Russian island of groups here and they all have relative leniency as an occupying Sakhalin. However, both lived and found their place under the sun”. regime (in comparison to the strife worked in Odesa since childhood With 133 ethnic groups residing in of German-occupied regions). and are thus perceived as “Odesa’s its territory, Odesa Oblast is indeed Moreover, ethnic minorities resid- own”—otherwise, they would not one of the most multi-ethnic re- ing in Odesa Oblast (Bulgarians, have had the slightest chance of gions in Ukraine. The Ukrainian Gagauz and Greeks) were not eligi- success in local politics. “For Odesa 2,388,300 population is in the majority ble for the Red Army. Thus, the to be ruled by a stranger is simply people, amounting to (62.8%), while other groups are gene pool of the local population impossible,” Oleksiy Katiuzhonok, smaller: Russians (20.7%), Bulgar- did not eventually suffer as much a local pensioner, says. “Some time 5.2% ians (6.1%), Moldovans (5.0%), of Ukraine’s total as elsewhere in Ukraine. Another ago, I would have said that we need population, lived in Gagauz (1.1%), Jews (0.6%), Belar- important formative factor was the a Jewish mayor, but nearly all of Odesa Oblast as of 1 usians (0.5%), Armenians (0.3%), extremely advantageous geograph- them have emigrated by now”. January 2012 Roma (0.2%); Poles, Tatars, Ger- ical location of the region and espe- This important electoral mind- mans, Albanians (0.1% each); cially of Odesa, which is essentially set sends every new government in Czechs, Greeks and others. Ukraine’s commercial gateway to Ukraine on a mission to find their Despite the fact that the Party the Black Sea. own point man in Odesa through of Regions holds most of the top of- Odesa is one of the few cities in whom to rule the region. Even the UAH fices in the executive and local gov- Ukraine that still retains a clearly Party of Regions, when it came to 3,041 ernments and the party won the defined myth. It is rooted not so power and divided all top-level ad- was the average salary 2012 parliamentary elections in the in Odesa Oblast in July much in Soviet times as in the pre- ministrative offices exclusively 2013, compared to UAH region with 41.9% of the vote, the revolution era—the imperial ideo- among people with Donbas back- oblast is not at all a mainstay of the grounds, did not risk sending their 3,429 ruling party. In 2007, it polled logical concept of Odesa as the nationwide “empire’s fourth city”. In fact, this own “Varangian” to the Black Sea 52.22% here and has lost over 10% may explain the city’s Russophilia, coast. Initially, they tried to assert of its base since then. Contributing visible in the wary or surprised way themselves there by choosing be- to this slide were last year’s corrup- locals react when spoken to in tween popular local leaders who tion scandals involving Kostusiev Ukrainian. However, this reaction represented different generations. and the fact that the party failed to is far less aggressive than that of First, they tapped former Odesa nominate a single consensus candi- the local leaders, many of whom Mayor Ruslan Bodelan, who was in 26.3% date in many election districts, re- are indeed Ukrainophobes. Odesa hiding in Russia during the Yush- of Odesa Oblast sulting in superfluous rivalry. The residents are employed Mayor Oleksiy Kostusiev is a good chenko presidency from 2004 to in commerce, best-known example is Ihor Mar- example: he doesn’t even attempt 2010 . Then came Leonid Klimov, kov, head of the pro-Russian Ro- to conceal his disdain for all things one of the biggest local tycoons, 14% dina (Fatherland) party, who was in agriculture and Ukrainian in the city. At one point, owner of the Prymoria Financial recently stripped of his MP status he ordered to have all future paper- Group and Chornomorets football 9.4% after he went against the party line. work submitted to him exclusively team. Their current appointee is in industry, according Although a member of the Party of to the State Statistics in Russian rather than in the state Odesa Oblast Governor Eduard Committee Regions faction, he had refused to language, which is Ukrainian. Lo- Matviychuk, former Nasha Ukraina vote for the European integration cal teachers also say that it was on (Our Ukraine) member and politi- bills. In the 2012 parliamentary his initiative that Ukrainian-speak- cal renegade. Tellingly, one of his elections, Markov ran in district ing schools were transformed into first moves in the new office was to No. 133 and beat Oleksiy Honcha- bilingual institutions, while many cut off state financing for the re- renko, the Party of Regions’ official Ukrainian-speaking classes were gion’s only Ukrainian-language nominee and Kostusiev’s son, by closed. newspaper Chornomorski novyny, picking up more than 26% of the The political worldview of while budget allocations for Rus- vote and winning by a margin of Odesa residents must have also sian-language periodicals were in- some six%. By and large, Party of been shaped by the ideology of this creased. Regions membership means noth- “free port” of entrepreneurs, a spe- In general, Odesa residents are ing in Odesa except that a certain cial and unrivalled “state within a very sceptical of politics. “Let them state” for which the guiding princi- fight all they want,” Serhiy, an en- ple is to do business and never trepreneur who has three sales The more opposition- burn bridges with anyone. This points on the famous Arkadiya minded northern part of worldview comes through in elec- beach in Odesa, says. “Practice toral preferences: on one hand, shows that you can find common the oblast is more inert Odesa votes only for its own and, ground with everyone. It’s impor- than the southern part, on the other, it is extremely loyal to tant to always find benefits for -ev the current authorities, whoever eryone. We are a city of trade and which is more loyal to the they may be. any political extremities are out of government For a non-local-born candidate place here. This is precisely why to be elected mayor of Odesa is un- the locals vigorously oppose both businessperson finds it convenient thinkable. Ironically, however, Ed- the Svoboda (Freedom) party and to cooperate with this political uard Hurvits, former Odesa mayor pro-Russian radicals. True, many force at a given moment. of long standing and a local politi- people here want to speak Russian, “We turned a blind eye to Yan- cal leader for the past 20 years, was but if you want to speak any other ukovych’s criminal past because we born in Mohyliv-Podilsky, while language, you’re most welcome. believed that he would be able to Kostusiev, the current mayor, hails We’ve always had many ethnic put things in order so that every- № 39 (307)№ 18 27.09–3.10.2013 (60) october 2013|УКРАЇНСЬКИЙ|the ukrainian ТИЖДЕНЬ week|21 Society|Regions one could earn their money nor- itself, while the northern districts Ukrainian Week. “And in the mally”, says Andriy Hlushchan, a are somewhat different”. most recent elections, I voted for private entrepreneur from Bil- Svoboda. There are quite a few horod-Dnistrovsky. “But he turned Poor north people like me here – opposition- The Party of Regions out to be the same idle talker as his lost more than vs. rich south minded, you might say. We are Orange predecessors. I don’t even “Another huge electoral sub-region Ukrainians – my grandfather was know whom I will vote for in 2015. 10% of Odesa Oblast is its northern born in the Cherkasy region and of its support base in The main thing is that they let us Odesa Oblast in the part,” Boiko explains. “This is a moved here in the early 20th cen- do business and stay away from period from 2007 Ukrainian-speaking territory and tury. In the village, we speak what (52.22%) to 2012 our local affairs. We will sort things (40.9% in the quite supportive of the opposition. may be a mixture of Ukrainian out ourselves one way or another”. parliamentary These are the districts to the north and Russian, but it’s Ukrainian This is the quintessence of the elections) of Odesa, especially those that are all the same. But our people are prevalent electoral attitudes in closer to Vinnytsia and Kirovohrad poor and underprivileged and the Odesa Oblast, which would gladly oblasts.” The majority of the 15.5% villages are small. Young people support a party with centrist views of votes that Batkivshchyna (Fa- escape to Odesa, where they and social slogans. Voting here be- therland) garnered in the 2012 quickly become Russified. Those trays a certain class structure: in- elections in the oblast came from who stay are easy to control. And tellectuals and private entrepre- this area. in general, I get the impression neurs sympathize with the opposi- However, these districts are that Odesa is more interested in tion, while the government sector statistically the poorest and most the rich southern districts, while and workers back the Party of Re- we seem to be something like a gions. fifth wheel”. “Odesa Oblast in general is Odesa residents only vote Because the population of the peculiar for its detachment from for their own, pro-Ukrainian belt in Odesa Oblast the ideological war between is paralyzed by poverty, the level of Western and Eastern Ukraine,” but are maximally loyal to protests and civic activity is very Boiko says. “Southern Ukraine – any ruling government low here, amounting to little more and especially our region – is than support for the opposition at more pragmatic and indifferent the polls. But there are some nu- to lofty theoretical issues. In- agricultural: 45% of their popula- ances; northern districts bordering stead, people vote here with their tion work in the agricultural sector, on Moldova are densely populated wallet; they calculate things compared to 14% oblast-wide. by ethnic Moldovans, a minority based on profit and personal Moreover, they are landlocked and that usually votes for the Party of comfort. The only important ide- thus unable to utilize one of the Regions. The rich southern part ological factors are the heroic oblast’s key advantages. (historically called Bessarabia) pages of the ‘Great Patriotic War’ “I supported Nasha Ukraina stretching along the Dniester Estu- and the Russian language. How- back in 2006,” a village teacher in ary with up to 50% ethnic minori- ever, this is more typical of Odesa the Balta district told The ties in some districts (for example,
HUMOR AS A MEANS OF PROTECTION. Odesa Oblast residents largely take an ironic approach to politics and become involved only with their own benefit in mind Photo by P H L by Photo
22|the ukrainian week|№ 18 (60) october 2013 Regions|Society has never had real or even seem- ingly autocratic power. In Odesa, everyone is used to making money, seeking their own benefit, so fitting into a strict vertical of power is something these people are neither capable of nor willing to do. However, the opposition forces are essentially missing out on this opportunity – as in all south-eastern regions, the party brands were offered here on a franchise basis until recently. Lo- cal clans exploited this tactic in fighting their opponents, while do- ing nothing to win over the elec- torate. The opposition had its greatest success here in 2004 when Viktor Yushchenko collected 27% of the vote in a presidential election. Since then, the situation has remained almost unchanged – Fatherland and UDAR together polled roughly the same percent- age. The only surprise in the 2012 parliamentary election was due to the Svoboda, which received 3.3% of votes compared to almost zero 47% Moldovans in Reni district) is in constant political competition back in 2007. very active socially, rather than and thus relatively balanced cov- Like all parts of Southeastern politically—primarily in defending erage. More than 800 printed Ukraine, this region now has a its own interests. There are, how- mass media outlets, over 100 local palpable void in the political ever, traditional “white-and-blue” TV channels and at least 100 In- sphere because the majority of (Party of Regions’ colours – Ed.) ternet publications are registered voters no longer want to vote for enclaves, such as Bulgarian dis- in the oblast. All of them are fo- the Party of Regions but are lack- trict No. 142, the city of Artsyz, cused on local topics, which makes ing an alternative. “We treat poli- which gave the Party of Regions it possible to see the intensity of ticians like merchandize at the 51.21% of its votes. civic-political life in the region. Privoz Market,” says Odesa resi- Southern districts stand out “Odesa has traditionally had a dent Olha H. “We pick them out through constant political compe- great deal of business activity, like goods, choosing the best or tition and livelier civic processes, which requires information sup- the cheapest. Of course, some- especially in environmental pro- port,” Boiko explains. “Therefore, times we get cheated, just like in tection. In important ways, this every influential clan and public the marketplace. Yanukovych has to do with the resort industry, opinion leader has its own media which is a substantial source of in- holding here, which ensures a Like the rest of South- come for the locals, and the prox- wide plurality of thoughts, evalua- imity of two national borders—one tions and angles of presentation.” Eastern Ukraine, there is a with Romania, i.e. the EU, and the For example, according to sources palpable political void in other with Moldova. Another fac- consulted by The Ukrainian tor is the proximity of the break- Week, Party of Regions MP Hen- Odesa Oblast: the majority away Moldovan republic of nadiy Trukhanov owns the Glas of voters no longer want Transnistria, a political black hole holding; Matviychuk controls the that generates income for many state television; UDAR MP Edu- to vote for the Party of local smugglers. ard Hurvits has the Krug Televi- Regions but do not see a Thus, paradoxically, the more sion and Radio Broadcasting opposition-minded and pro- Company in his portfolio; Presi- viable alternative in the Ukrainian northern part of Odesa dent of Odesa Law Academy Ser- opposition camp Oblast is more inert, while its hiy Kivalov controls the Aka- southern part, which is more loyal demiya Television Company and to the authorities, is more active, the Third Digital channel; Father- palmed off rotten goods on us, but even if in a non-political sphere. land MP Serhiy Faiermark owns those self-styled opposition mem- the Nova Odesa channel; the ATV bers are selling nothing but air. Commerce = competition channel belongs to Markov, and so Let them first show that their The region also has an unusually on. This supports the idea of goods are better, and then we’ll large number of influential local Odesa Oblast as a land of many vote for them. Taking someone’s mass media owned by business- options and goes some way in ex- word for it is out of the question men and politicians. This results plaining why the Party of Regions here in Odesa.” № 18 (60) october 2013|the ukrainian week|23 history|liberation movement
The Undefeated Why Ukrainian insurgents did not become Soviet and Nazi collaborators hoto from sbu archives p hoto
Author: he movement that German dination of the “forest army”. How- tire struggle, as OUN leaders held Oleksandr special services characterized ever, there is a clear difference command positions and many OUN Pahiria as an insurgent one in autumn between the two organizations. The members fought in the UPA. There T1942, started in Volyn, in the UPA was an army with its own mili- is no clear division between them, part of Ukraine where the Nazi oc- tary structure; discipline enforced but they were never one organiza- cupation was most violent, with nu- by the Military Political Police tion: not all insurgent fighters merous raids on the local popula- (MPP); a chain of non-military ser- joined OUN or became nationalists tion for the deportation of young vices for healthcare, administration ideologically. Ukrainians for work in Germany, and communication; training cen- the systematic requisitioning of tres for commanders; and its own A NATIONWIDE CAMPAIGN food and cattle, the burning down of oath, honours and medals. It fought The emergence of UPA in early villages, political terror and geno- under the blue and yellow, rather 1943 and the fighting until the or- cide. It was in Volyn that the power- than the red and black flag, and as der for its cessation by the Libera- ful armed resistance against the oc- of July 1944, reported to the Chief tion Council in September 1949, cupiers emerged, headed by OUN, Ukrainian Liberation Council, the was a new stage in the history of the Organization of Ukrainian Na- highest political and military au- the Ukrainian liberation move- tionalists. thority of wartime Ukraine. Mean- ment that combined national goals It played a major role in the while, the OUN was an under- and social objectives, as well as the emergence and further develop- ground organization with its rules anti-colonial and anti-totalitarian ment of UPA, the Ukrainian Insur- of conspiracy, branched illegal struggle against two tyranical em- gent Army: UPA’s insurgent units structure, hierarchy, judiciary, pires: Stalin’s USSR and Nazi Ger- were set up based on OUN’s bun- training, oath, flag and so on. many. Those who fled to the forest kers, while its underground net- Obviously, OUN and UPA were included patriots seeking the re- work served as a chain for the coor- closely linked throughout their en- vival of Ukraine’s independence on 24|the ukrainian week|№ 18 (60) october 2013 liberation movement|history the one hand, and those who pro- ГеографіяGeography українського of Ukrainian резистансуresi ance The main territory tested against whatever the occupi- where UPA emerged ers wanted to do to them, search- in 1943 ing for social and economic free- dom and the protection of human rights. It was when people from all Rivne Obla over Ukraine, including Eastern Turiv unit Zahrava unit Ukrainians, different social classes Volyn Obla UPA-North POLAND 8-10,000 insurgents and political groups, ethnic minori- (late 1943-early 1944) ties and foreigners started joining Zhytomyr Obla the UPA that the scope of the Ukrainian liberation movement ex- panded. Bohun unit The insurgent movement was Buh unit Kyiv not purely regional, limited mostly to Western Ukraine, as is widely be- Lviv Obla Kyiv Obla lieved, only because it emerged in Tiutiunnyk unit Volyn which, when talking about its UPA-We Ternopil Obla Vinnytsia Obla 19,900-20,700 insurgents Khmelnytskyi historical significance, embraced (summer 1944) the modern Volyn and Rivne SLOVAKIA Obla UPA-South Oblasts, northern parts of the Ter- Ivano-Frankivsk 1-1,500 insurgents nopil Oblast and most of the Zhyto- Obla (spring 1944) myr Oblast, from the point of view Hoverlia unit of higher patriotic and resistance Zakarpattia Obla sentiments. It did not extend to Halychyna until summer 1943, HUNGARY Chernivtsi Obla while UPA’s structures only gained their ultimate shape in early 1944, when UPA-South units emerged myths about post-war resistance guerilla movement and other Com- and began to operate in what are only being limited to Western munist resistance campaigns in Eu- now the Ternopil, Khmelnytsk, Vin- Ukraine, it actually sparked just as rope, funded and supplied with hu- nytsia and Kyiv Oblasts. Along with intensely throughout Ukraine until man resources by the Kremlin, and the eastern units of UPA-North, the mid-1950s. One of the last OUN national resistance movements, they were the avant-garde that bunkers was destroyed in the Zhy- such as Poland’s Armia Krajowa managed to more or less spread the tomyr Oblast in 1955. (Home Army), Charles de Gaulle’s insurgent movement across Right France Libre (Free France) or Draža Bank Ukraine for a short period of WHEN UPA BECAME A FACT Mihailović’s Jugoslovenska vojska u time, reaching as far as the Dnipro Virtually all anti-colonial move- otadžbini (Yugoslav Army in the River. UPA was an all-Ukrainian re- ments in the world history of the Homeland), all supported by their sistance that was not limited to a first half of the 20th century were émigré governments in London and handful of regions and seeking to radical and conducted an uncom- Western allies, the UPA emerged on gain nationwide levels. The Bolshe- promising armed struggle, using vi- its own, being more popular and vik regime, the Famine, forced col- olence against all their enemies. No Ukrainian by nature and composi- lectivization, Stalin’s repressions insurgent movement, from the Irish tion than Soviet guerilla units, for and the shameful retreat of the Red IRA to the Jewish fighters in Pales- At its peak, the “for- instance. Without systemic mate- est army” was com- Army in summer 1941 forced many tine, wore white gloves or had spot- prised of up to rial, staff and financial support, it people from the territories along the less reputation. The crimes commit- nevertheless succeeded in building Dnipro, which comprised essen- ted by UPA fighters can be viewed 35,000 its own structure, establishing fight- tially the entire territory of modern from different perspectives, but one soldiers ing detachments, arranging a mate- Ukraine, with the exception of the fact remains: if not for their strug- rial supply system and training for Crimea and Halychyna, into the gle, the modern Ukrainian state its staff, within a very short period “forest army”. German estimates re- would not be possible today. De- of time. ported a total of 100,000 people spite the change in the political situ- In the 1940s-50s, Ukrainian in- joining the UPA, while in actual ation and single-minded attempts surgents demonstrated the highest fact, at its peak, the “forest army” to demonize this movement, the level of resistance against two totali- was comprised of up to 35,000 sol- historical memory of it has returned tarian regimes. Some were forced to diers. to Ukrainian society over the years collaborate with the occupiers who After it reached its highest num- of independence, becoming an ele- had quite a range of tools to achieve ber and scope in summer-autumn ment of mass culture and civil iden- this, but most UPA fighters pre- 1944, UPA’s geographical range be- tity. ferred to die and not surrender to gan to wane under the harsh pres- UPA’s phenomenon lies in the the enemy. They all knew that they sure of the Soviet military and po- fact that unlike similar resistance would die sooner or later and lice machine. Eventually, the “forest movements that occurred at the viewed their death in an evangelical, army” was forced to switch to acting same time, it emerged from a very rather than an apocalyptic sense, in smaller units and ultimately, join well organized local population, like a seed which, having fallen onto the ranks of the armed under- from which it drew all of its strength soil, has to germinate, thus continu- ground resistance. Despite the and resources. Unlike the Soviet ing the liberation campaign. № 18 (60) october 2013|the ukrainian week|25 history|Opinion Contextualizing the Holodomor
he Holodomor was genocide. This was the pressed himself exquisitely when he stated that to conclusion on the first annual scholarly con- modernize - and industrialize - does not mean to ference of the Holodomor Research and Edu- collectivize. Stalin destroyed a whole people not for Tcation Consortium. The conference was at- the industrialization of the Soviet Ukraine but tended by some of the most well-known research- rather to destroy the very soul of the Ukrainian ers, not only in Holodomor studies, but in general people. We must stop insisting that Stalin saved Ukrainian studies: David Marples, Norman Nai- Ukraine from war – there was no war to be saved mark and Roman Serbyn are only three scholars from, there was only Stalin himself and his party. that can be mentioned. All of them agree that the Industrialization should not be equated to the star- debate over whether the Holodomor was genocide vation of millions of innocent people. has been resolved – it was and we should treat it as Serhii Plokhii from Harvard University stated that such – this fact has now become an academic given. the Holodomor should be seen as Stalin’s attempt However, there are still plenty of other debates and to create a borderland of communist utopia: “it unknowns about our un- would be the fortress of Author: derstanding of the Ho- Scholars agree that the socialism”. This subtle Larysa lodomor and its effects. idea that the Holodomor Zariczniak One of the more inter- debate over whether the was an intrinsic act of esting debates occurred Holodomor was genocide Soviet colonialism (or between Francoise even Stalinist colonial- Thom from Sorbonne has been resolved – ism) was punctuated by University in Paris and it was and we should treat various historians - and Mark von Hagen from debated by others. There Arizona State University it as such – this fact has are still questions that in the USA: the issue of now become an academic need to be addressed collaboration and more categorically how- blame. Who is included given ever: was Mark von Ha- in the role as villain in gen and Liudmyla the story of the Holodo- Hrynevych correct in mor – surely Stalin for it their assessments that is without doubt that he colonialism was an in- knew about the famine but did not care – but what trinsic part of Stalin’s communism or was the Ho- about the others in the elite Soviet party or the lodomor a show of power as Serhii Plokhii says, in party representatives in the villages? Who is to be order for Stalin to gain even more control of the blamed for this atrocity on the Ukrainian people? party leadership and cast out the old elites with Overall, even with this debate – one conclusive fact ones that grew up in his communist utopia? remains: Stalin knew. One of the more interesting talks of the conference This issue over Stalin’s role was brought up among came from Olga Andriewsky from Trent University other scholars. Many expressed their opinion - in Canada. She discussed how the Holodomor has mainly through Andrea Graziosi from the Univer- impacted the understanding of Ukrainian history sity of Naples - that the findings from new archival but also showed the attendees the impact that poli- sources shatter the myth that the Holodomor was tics has on the study of the Holodomor. For her, the Stalin’s necessity for an industrialized Ukraine that greatest triumph of Viktor Yushchenko’s presi- would act as a buffer zone in his paranoid delusion dency was the proclamation that the Holodomor of an upcoming war with Poland. Historians now was genocide. This not only allowed the spread of know that the Holodomor occurred only a few Holodomor education but also the legacy of the Ho- months before the formal signing of a peace pact lodomor to become part of Ukraine’s national between the Soviet Union and the Second Polish memory. Olga’s proclamation that the Holodomor Republic and more importantly, several questions was ‘uniquely ruinous’ was evidenced by her exami- were brought up as to the rational discussion about nation of the blacklisted villages and what that ex- this ‘war myth’; namely: who exactly was this war actly meant: all stores were closed, bank accounts scare from? Certainly not Poland that was crippled frozen, party members purged, cattle and other by the Great Depression not only economically but farm animals taken away, grain seized and travel also politically and militarily. Andrea Graziosi ex- restricted. This blacklisting was also more wide- 26|the ukrainian week|№ 18 (60) october 2013 Opinion|history spread than previously thought and was more per- destruction of Ukraine’s cultural ethos - its peas- sistent towards villages that resisted (either in the antry. past or present) to Soviet indoctrination. She also The conference ended with a special presentation presented a copy of the 22 January 1933 decree, by Roman Serbyn from the University of Quebec Preventing the Mass Exodus of Peasants who are in Montreal on the evolution of understanding the Starving, which basically allowed the arrest of any- Holodomor from a simple famine to genocide. Ro- one trying to flee the famine but also closed off the man Serbyn was also awarded for his lifetime con- borders. The decree was tribution for his active signed personally by the Soviets did not just service in promoting Stalin himself – a man the Holodomor as geno- known to read every- take away the potatoes and cide by Frank Sysyn and thing before he signed the meat, but they took personally thanked for his name. his service in the Ukrai- Stanislav Kulchytsky away everything. This can nian-Canadian Dias- from the Institute of be linked not only to the pora by the president of History of Ukraine re- the Ukrainian-Cana- marked that the Soviets physical starvation of a dian Congress, Paul “did not just take away whole people but also to Grod. It brought to- the potatoes and the gether the expert minds meat, but they took away the destruction of their of Ukrainian history everything”. This can be cultural and social and showed that the fu- linked not only the phys- ture generation of ical starvation of a whole understandings Ukrainian academics - people but also the de- both from Ukraine and struction of their cul- outside of it - were will- tural and social under- ing to explore Ukraine’s standings. This was an- tragic yet interesting other important topic throughout the conference history. While it is true what Roman Serbyn has – the effects of genocide on a whole people and opinionated: the Holodomor is one of the saddest their history. Questions were raised on the genetic episodes of Ukraine’s history however, it has also effects of malnourishment, the Ukrainian popula- shown that the Ukrainian spirit and will to survive tion’s inability to reproduce itself naturally and the has and can endure. Culture & Arts|Must-read Inventor of the Femme Fatale
How Leopold von Sacher-Masoch went from writer to masochist
dent of the French Republic deco- rated him with the Legion of Hon- our for his literary activity. Today, the first thing an average reader thinks of when hearing his name is handcuffs, whips, latex costumes and other sex toys. Paradoxically, there is barely anything of the sort in Sacher-Masoch’s books. “If Leopold von Sacher-Masoch wanted to dress his Venus in rub- ber – technically he could do that – he would have”, Belarusian poet Elina Voitsekhovska rightfully noted. Of course he didn’t, nor did he intend for his books to be inter- preted the way they are today. Exploring sensuality Sacher-Masoch’s image as a pro- vocative pervert that overshad- owed his fame as a writer in the centuries after his death largely came from his equally famed com- patriot, Richard von Krafft-Ebing, the father of sexual pathology and criminalist psychiatry who came up with the term “masochism”. Since Sacher-Masoch was best at describing the phenomenon that earned a special place in Krafft- Author: deserved. Eventually, the name Ebing’s system of human perver- Ivan Kolomiyets Machiavelli came to describe a sions in literature, the psychiatrist doctrine that justifies any means found that he should name it after ome writers have paradoxi- to obtain undivided power. It was him. In his principal work Psy- cal fates in literature. A apparently much easier to read his chopatia Sexualis, Krafft-Ebing staunch republican, Niccolo scandalous The Prince than bother immortalized Sacher-Masoch’s SMachiavelli described the with the less sensational Dis- name by attaching it to the sexual principle of government division courses on the First Decade of Ti- deviation whereby “based on sex- into branches long before John tus Livius. ual feelings and desires, an indi- Locke. He treated Brutus as a hero A similar fate befell the once vidual is guided by a fantasy that of republican Rome and Caesar as renowned Austro-Hungarian he/she should be completely and a despot and betrayer of republi- writer Leopold von Sacher- absolutely subject to the will of an- can ideals whose death was well- Masoch. In his lifetime, the presi- other individual”. 28|the ukrainian week|№ 18 (60) october 2013 Must-read|Culture & Arts However, there are many rea- BIO linguistic inclusion is not the only sons to claim that the experienced Leopold Ritter von Sacher-Masoch was born in 1836 in Lviv. thing in common between Gogol psychiatrist only saw what he His father was a police chief and his mother was the daughter and Sacher-Masoch. The former of a university professor. Leopold had poor health as a child so wanted to see in Sacher-Masoch’s his parents sent him to live with a Ukrainian peasant woman revealed Ukraine to St. Peters- works, especially as many patients named Handzia in Vynnyky, a town that is now a suburb of burg, the capital of the Russian mentioned Sacher-Masoch in Lviv. She was the one to instil a love for Ukraine in the young Empire at the time. The latter re- their letters to Krafft-Ebing as one Leopold. He later invented a Ukrainian genealogy for himself, vealed it for Western Europe. Both of their favourite writers. Perhaps which he boasted everywhere. In 1848, his family left Lviv writers had their own mythical vi- it was readers like these that Mar- when his father was transferred to Prague. Leopold visited sions of Ukraine. It is no surprise quis de Sade, another writer made Ukraine just once as an adult, yet he always returned to it in that Ivan Franko once wrote bit- famous through psychiatry, once his writing. In 1865, he became famous as a writer, discovered terly in his correspondence that referred to: “Who knows, maybe by the Viennese writer and critic Ferdinand Kürnberger who Sacher-Masoch “was making up wrote a foreword to Sacher-Masoch’s Don Juan von Kolomea. even reading Seneca would defile From that time on, top German publishing houses printed his nonsense about Halychyna”. them”. books. In 1886, Richard von Krafft-Ebing publishedPsychopa - Eventually, this “nonsense” The first thing a reader will tia Sexualis, where he introduced the term “masochism”. In played a cruel trick on Sacher- notice in Sacher-Masoch’s most 1967, French philosopher Gilles Deleuze published Présenta- Masoch. “He never found a home- famous novel, Venus in Furs, is tion de Sacher-Masoch (Masochism: Coldness and Cruelty) land for his talent. He never be- not masochism as many may ex- where he smashed any association between Sacher-Masoch came part of something whole. In pect. It is a defence of happy sen- and Marquise de Sade, another writer famed through psychia- fact, it wouldn’t have been that suousness, a typical component of try. The book later became a classic of philosophy. easy for him. Where is that whole the Classicist 19th century. “The of which he could have become a ideal which I strive to realize in It is Leopold von Sacher- part? He wasn’t rooted anywhere. my life is the serene sensuousness Masoch who should be considered He couldn’t turn to the grand leg- of the Greeks - pleasure without the inventor of the femme fatale, acy of Austrian literature since he pain. I do not believe in the kind of not his Romantic predecessors was a stranger to it. He hated the love that is preached by Christian- with their overbearing mysticism Germans and outgrew Slavic cul- ity, by the moderns, by the knights who created the female “vamp”, or ture,” Hermann Bahr, the father of the spirit. Yes, look at me, I am Marquise de Sade whose liber- of Vienna Art Nouveau, com- worse than a heretic, I am a pa- tines, including Juliette, are es- mented upon Sacher-Masoch’s gan”, the main heroine, Wanda, sentially genderless mechanisms death in 1895. declares passionately to her be- in their practices. Severin falls un- loved Severin. der the spell of Wanda’s charm. The Femme Fatale in literature and film At times, Sacher-Masoch’s ap- And in a way he is like Pygmalion Malva Landa, Yuriy Vynnychuk ologia for sensuousness becomes a who creates her, reveals the po- Malva Landa embodies the image hymn to free love: “We are faithful tential of her strong will, and falls of the femme fatale in this as long as we love, but you de- in love with her. Sadly, the story eponymous novel. The protagonist mand faithfulness of a woman does not have a happy ending. only sees her in his dreams and just without love, and the giving of Wanda breaks up with her creator once in person – at a ball, but he herself without enjoyment… You and ruins his life because she does not know that it is her. Even talk of duties where there should wants a relationship of equality, though the woman is a dream from be only a question of pleasure,” not domination and submission— the very beginning, it is she who Wanda proclaims. Incompatible that is the main lesson to be leads the protagonist into the with Victorian morality, these learned from Sacher-Masoch. phantasmagorical and grotesque things were written in the conser- kingdom of the Lviv dump. Both Leopold von Sacher- th A writer of two worlds vative 19 century. This incompat- Masoch and Yuriy Vynnychuk dig deep into the ibility explains the contemptuous Venus in Furs was not the only atmosphere of Halychyna, both preaching their own silence that soon fell over Sacher- thing that made Leopold von Sa- exotic versions of free love. Masoch in the German literary cher-Masoch famous in his con- criticism of the late 19th and early temporary Europe. He was also th Basic Instinct,P aul Verhoeven 20 centuries. French critics, by known as a writer from Ukraine. Catherine Tramell (played by Sharon contrast, put him third after His Don Juan Von Kolomea (Don Stone) is the quintessential Goethe and Heine in the German Juan of Kolomyia) unveiled for pantheon. 19th-century Europeans the exoti- incarnation of Leopold von Sacher- Wanda often contemplates cism of Galicia (Halychyna), the Masoch’s femme fatale in aloud in Venus in Furs, but it is easternmost region of the Austro- contemporary cinema. While Severin that encourages her to do Hungarian Empire. The French investigating a murder, protagonist so. Emancipation is another of Sa- president awarded him the Legion Nick Curran (played by Michael cher-Masoch’s strong points. The of Honour for this work. Douglas) falls in love with a writer of novel ends with a feminist mani- As a figure in literature, Sa- detective novels. Just as Wanda fest – this time articulated by Sev- cher-Masoch was like Nikolai Go- does what she says in Sacher-Masoch’s novel, erin who learned many lessons gol: both found Ukrainian culture Catherine in Basic Instinct not only writes detective from Wanda, including through very important but neither wrote stories, but brings them to life. At the end of the 20th physical punishment: “A woman in Ukrainian. Still, it is impossible century, she directs her own productions and no longer can only become a man’s compan- to imagine their books separated needs men to instruct or educate her. The fact that the ion when she has the same rights from Ukraine. Even the introduc- film instantly generated a multitude of quotes, as he, and is his equal in education tion and ending of Venus in Furs allusions and parodies in the world of cinema shows its and work”. take place in Halychyna. This non- cultural importance. № 18 (60) october 2013|the ukrainian week|29 Culture & Arts|Films The Shadows of Parajanov
n October 3, one of the most ea- and Andrey Tarkovsky, scandals at film stu- gerly awaited Ukrainian films, Para- dios and Parajanov’s relation with his wife janov, is being released on the big and son. As a result, the life of the genius Oscreens in Ukraine after a nomina- that was full of endless events, new people tion for an Academy Award and presentation and contemplations about him is squeezed at the film festivals in Karlovy Vary and into the 95 minutes of the film, giving the im- Odesa. Directed by Serge Avedikian (France) pression of life through a kaleidoscope. It is and Olena Fetisova (Ukraine), Parajanov is an more of a retrospective account of the major explosive fusion of the past achievements, moments in his life. Meanwhile, each of current opportunities and optimistic expecta- them could well be developed into a tions of Ukrainian cinematography. The gov- separate drama or surrealistic com- ernment provided financial support for the edy or tragedy. The fact that the project and there is no question about this: it film did not go into greater de- was a well-thought out project about a great tail on any one aspect, and the artist whom people know and love. However, lack of a climax that would fo- the way the project was carried out does cus the attention of the audi- raise some questions. ence on strong emotions, From the very beginning, the directors seems to be the major flaw wanted to grasp every aspect of Parajanov as of the film. an artist and a person in this film. They Still, the professional started with the filming of The Shadows of acting of Serge Avedikian Forgotten Ancestors which he directed in as Parajanov, the tal- 1964 and went all the way to 1990, when he ented camerawork by died. The story includes his life in Kyiv, shoot- Serhiy Mykhalchuk ing in the Carpathians, his time in Yerevan, and the skillful his arrest and imprisonment, and the making crew compen- of The Legend of Suram Fortress in Georgia. It sate for some of also has scenes with Marcello Mastroianni the film’s flaws.
Events 2-9 October , 12 p.m. From 10 October 11-13 October Foreign Body New German Movies Iron Lion M17 Contemporary Art Centre Kyiv cinema Arsenalna Ploshcha (104, vul. Horkoho, Kyiv) (19, vul. Velyka Vasylkivska, (downtown Lviv) Kyiv) All art lovers have the unique op- Another one of Lviv’s good tradi- portunity to see paintings by well- The audience will see a selection of tions: it will once again host the an- known Austrian artist, Wolfgang the best German contemporary films at nual open air blacksmiths’ festival. It Walkensteiner. His personal exhibition the New German Movies festival. The attracts the best craftsmen from all will only be in Kyiv for seven days. The programme of the 19th festival includes over Ukraine to show their physical painter chose one of the oldest tech- five films in different genres. Oh Boy, a strength, talent and delicate skills. niques for his artwork, using egg tem- tragic comedy, shows the life of the Visitors will see blacksmithing from pera paint. Tempera is one of the most careless Niko, whose inertness leads to long-lasting and high-quality materi- very sad consequences. Hannah Ar- als. Its pigment does not fade in sun- endt, a historical film, reflects on the light. The artist’s other original tech- life and views of the well-known Ger- nique is the de- man-Jewish activist. Die Brücke am tails cut out of Ibar (The Bridge over Ibar) offers an some of his emotional love story set in Kosovo dur- paintings and ing the civil war. layered onto others. the past century and have the oppor- tunity to try smithing something of their own. It is hard to believe how the bulky furnace, hammer and anvil help blacksmiths to turn lumps of iron into masterpieces. Yet, that is what visitors will see in Lviv.
30|the ukrainian week|№ 18 (60) october 2013 Paintings|Culture & Arts The Kunstkamera of theE poch
he National Art Mu- Anatoliy Lymarev runs counter to the schematic Social Realism seum of Ukraine contin- and paints the workers’ work-worn hands and faces uncompromis- Tues to reveal unknown ingly clearly. Painter Serhiy Otroshchenko looks like a Gulag prisoner aspects of 20th century with his head held high in Mykhailo Vanshtein’s portrait. The Quiet Ukrainian art. The exhibi- Protest is the kunstkamera of its epoch: it does not hesitate to show tion, Quiet Protest of the nude bodies, Petro Belenko’s “panic realism”, a still life with a skull 1970s, presents little-known and a microscope, and artists’ workshops with replicas of icons and artwork by painters of that Diego Velazquez hanging on the walls. The Seventies was a phenome- time, who opted for Euro- non of those who treaded their path quietly by refusing to follow es- pean art traditions, rather tablished rules. Today, the paintings that were once created for closed than the prevalent ideologi- private rooms are displayed at the central museum. cal Social Realism. Over 120 This is the National Museum’s second big step towards the revival pieces by twenty painters of Ukraine’s contemporary art history. It is a long time since ideologi- from private collections re- cal pressure has disappeared, but actual reforms in museums have veal the mysterious under- only just started, as nearly 100 paintings and sculptures created from I hor H ryhoriev, construction 1973-1976 ground world of the Brezh- the 1960s through the 2000s fill its halls. nev era – the time of alternative exhibitions and cultural adven- tures. This show consists of three parts, each mirroring its epoch in The exhibition is open through October 20 at 6, vul. collective portraits: of industrial society, everyday life and artists. Hrushevskoho in Kyiv Art critics claim that Ukrainian painters of the 1970s have much in common with European modernist painters on the verge of the 19th and 20th centuries. Both opposed aggressive society with individualism, segregating artistic life from everyday rou- tine, and turning to mythological and folklore images. Both ex- perimented with techniques. Anatoliy Lymar’s paintings have traces of Van Gogh, Yuriy Zorko has elements of Cezanne, Viktor Zaretskyi has some details in common with Matisse. The paint- ings of the 1970s reflect their dim epoch through unconventional, almost mystical prisms, vibrant colours and edgy rhythms. The images inspire multiple interpretations.
11-13 October Through 13 October 13 October,9 p.m. Through 18 October UriahHeep Contrasts The Days of Myroslav DockerPub Lviv Oblast Philharmonic Skoryk’s Music (25, vul. Bohatyrska, Kyiv) (7, vul. Tchaikovskoho, Lviv) National Opera House, National Philharmonic and other venues The British rock band will play a Lviv is hosting the th 19 interna- (50, vul.Volodymyrska; 2, concert in Ukraine that is a fusion of tional contemporary music festival Volodymyrskyi Uzviz, Kyiv) heavy metal, art rock and jazz rock. that kicked off at the end of Septem- The voice of its lead singer, Bernie ber. This year, it is more diverse than The international music festival is Shaw, is the band’s trademark ele- ever. From George Antheil to Valentin dedicated to the 75th birthday of the ment, while the hit song Lady in Bibik, from mono to flute operas, legendary composer and founder of Black remains a favourite. The band from guitar music to Nina Matvienko’s the contemporary Ukrainian school of angelic voice – this is all part of the composition, Myroslav Skoryk. The con- 19th Contrasts. A concert of music from certs will last through mid-October. Top different epochs entitled From Classics musicians from Ukraine, Azerbaijan, to Modern Day will be a new addition the Netherlands, the USA and Switzer- to the festival programme. Performer- land will play his pieces on Kyiv’s major shave come from Spain, Poland, Can- music stages. In addition ada, Hungary, Germany and Malta to to his well-known Mel- play on the Lviv stage. ody which some con- sider to be Ukraine’s spiritual anthem, the has recorded more than twenty al- programme contains bums and played hundreds of con- many more of his pieces. certs all over the world. After forty Myroslav Skoryk will play years on stage, Uriah Heep has be- some of them himself, come a classic of hard rock, many accompanied by an or- of their albums topping the music chestra. charts.
№ 18 (60) october 2013|the ukrainian week|31 Navigator|Northern Ukraine Unpolished Authenticity Remote villages in Polissia are home to the descendants of old noble families
y cell phone automati- Article and people who disappeared during the lies have Polish roots but historical cally switches to a Be- photos by Second World War or Stalin’s re- turns intertwined the Ukrainian larus operator two kilo- Olena pressions to pass it on to their de- and Polish nobility so often that Mmeters before the Belar- Maksymenko scendants. Each search is a real de- very few historians would be able to ussian border. My calls home to tell tective story. Mr. Kovalchuk makes decipher the twists and turns of parents that I got stuck here become sure that the heroes are duly hon- their genealogy. a challenge. Not getting stuck here oured – be they Ukrainians or Ger- With the Levkivski family, is even more of a challenge: the bus mans who didn’t allow soldiers to things are much clearer: Larion Va- to Ovruch, the nearest town, comes strike a match and set a church full levskyi is considered to be the rarely. Until recently, kids from a of people locked inside on fire. Or, founder of the family. Prince Olelko Belarussian village just at the very least, known. Volodymyrovych, the grandson of across the border went to Like all the locals, he the Lithuanian Great Prince Olgerd, the Ukrainian school in is very distrustful. He granted him this land in 1450 for Voznychi, a village on the takes his time scrutiniz- services rendered, although what Ukrainian side. Then bor- ing my journalist ID but these services were is unknown. The der control tightened and even after agreeing to talk the school was closed to me, insists that the re- down. Thickets have corder is not switched on. gradually taken over the In the end, I write down village ever since. Around it lie the the entire conversation by pristine forests of Polissia1. hand. 1Polissia or Polesie – “cov- ered in forest” in Ukrai- Fear of recorders and cameras nian – is a natural and Wild and noble historic region, part of is omnipresent here, although the The Nevmrzhetskis and the the old Slavic proto- locals are curious, sincere, funny homeland. It mostly cov- Levkivskis are two families de- ers Northern Ukraine and and friendly. They will eagerly leave Southern Belarus, as well scended from the nobility of the as small parts of Russian whatever they are doing to talk to Grand Duchy of Lithuania2. Many and Polish border territo- strangers walking down the street, ries. Just like the Carpath- more have lived in the local villages ians, it preserves the old- tell their family history or that of the est relics of proto-Ukrai- Voznychi, Luchanky, Levkovychi, nian and proto-Slavic village, invite them to dinner or to Matsky and others since the 15th cultures. Chornobyl is lo- stay the night, show them around century. “They probably settled cated there. the house and the backyard. But 2The Grand Duchy of Lith- here even earlier,” says Serhiy Kov- uania was a European one rash move towards the camera alchuk, head of the village council, state from the 12th cen- and the contact is lost. “I’m not tury until 1795. It ex- “but nobody has dug deeper into panded to include large pretty, I’m not dressed well, take portions of former Kievan their family tree.” Rus and other Slavic photos of someone prettier,” a nice- Mr. Kovalchuk is a man of the lands, covering the terri- looking young woman says. tory of present-day Be- world. With two university degrees larus, Latvia, Lithuania “They still remember Stalin,” a and parts of Moldova, and many trips around Europe, he Poland, Russia and man in the village of Verkhnia Rud- finally settled in the small village. Ukraine. At its peak in the nia explains why the village head deed awarding the land said: “Nei- 15th century, it was the The speed of urban life is not for largest state in Europe. prefers to speak off-record. Here, ther he nor his servants are obliged him, he says. He edits historical and memory is transferred on a genetic to serve us, nor should he pay any ethnographic research papers and is level. So are the memories of the vil- taxes; he is also not obligated to working on one of his own right lagers’ medieval origin. guard Chornobyl, but shall do ser- now, collects bits and pieces of local “Don’t confuse them with the vice with the boyars3.” Successive history, starting with the Stone Age, Polish nobility!” Mr. Kovalchuk princes reaffirmed these privileges and is looking for information about says. “They are the Ukrainian okoly- for “the biggest suburban noble chna shliakhta (suburban nobility family”. – a class of impoverished noble- In other words, serfdom never men, most of them with no land, existed in these villages. The locals that emerged after the division of did not pay taxes. Their only duty the Polish-Lithuanian Common- was for each family to send one man wealth – Ed.).” One such nobleman from each household once every was Yuriy Nemyrych, a colonel in two years to patrol the border on a Bohdan Khmelnytskyi’s army who horse for a period of six months. initially fought against Khmel- Nearby villages where muzhyks – nytskyi, but decided to make a deal peasant serfs – lived, experienced with him once he realized that he serfdom. A nobleman could not would not defeat the hetman. Mr. marry a common woman. This Kovalchuk denies that these fami- tough divide has survived to this 32|the ukrainian week|№ 18 (60) october 2013 Northern Ukraine|Navigator day. The two families try to marry of Lelchynskyi Raion (Region) in among themselves, their members Belarus comes from goddess Lel; being fully aware of their aristo- Babyna Hora – Grandmother’s cratic roots. Mount – is from Baba, the goddess of the forests and fields; Divoshyn When there was and Divyna Hushcha (Maiden no heaven or earth… Thicket) are named after Diva, a At one time, the village of Luchanky younger version of Baba. Kapysh- had an impressive collection of cha for them, i.e. the part of pagan stone tools that had been found shrines behind the altar where the there. This was later taken to Zhy- statues and images of gods were lo- tomyr. cated, were always close by. Before (and after) Princess Every Easter, local youths jump Olga burned down Korosten, these over bonfires, tell fortunes and roll mixed in some of theirs. Did you see lands were inhabited by the Drev- fire wheels – these are all pagan rit- how many people there are blond? lians (a tribe of Early East Slavs in uals. They always go to church be- There you go!” the 10th-16th centuries. Their name fore or after these rituals. This place While Crimea and the Car- derives from the Slavic word der- is a natural fusion of old and new pathians are comfortable exotic evo – tree. They fervently opposed traditions. destinations with well-mapped attempts to annex them to Kievan Since almost all of the people in tourist routes and all the neces- Rus but were eventually con- the village have Nevmrzhetski as sary facilities, Polissia is wild, quered. Prince Oleg made them their surname, the locals use a unpolished and authentic. You pay tribute to Kievan Rus in 883 three-level system of names: 90% of will not find a comfy hostel, cafe the locals have the same surname; or a souvenir shop anywhere the family name – Kysli (Sour), here. Instead, you will experi- Leiba (for friendship with a Jewish ence the life people lived many family), Zubati (Toothy), Dolya (Fate), Kruts (Nail); and nicknames. While Crimea and the While the family name is used offi- cially for postmen, nicknames are Carpathians are seen as more insulting, a kind of comfortable exotic mockery. Beekeeping is one of the main destinations with well- industries here. The technology mapped tourist routes and used has barely changed since the times of Kievan Rus. Hollowed-out all the necessary facilities, tree trunks are placed as high as Polissia is wild, unpolished possible on other trees. That’s where the bees live. These apiaries and authentic are heated in winter. Much of the honey is sold.
The locals still plough their Verkhnia Rudnia land, part of which is under rye. Voznychi Luchanky They also make their own bread. Matsky Quite a few Luchanky-born sec- y ondary school graduates manage to O Levkovychi n t but they stopped after his death. enter top Kyiv universities. Could v r u c h C o u After Prince Igor tried to reinstate this be one of the positive manifes- the tribute, they killed him. His tations of their blue blood? wife, Princess Olga avenged his The neighbouring village of death by destroying their capital, Verkhnia Rudnia barely differs Iskorosten (now Korosten) and from the “noble” Voznychi and other towns – Ed.) They did not Luchanky. However, the gap be- centuries ago. Every spot and accept Christianity until 120 years tween them is much deeper than stone here has a story not yet after Christianity was accepted in the five kilometers of forest road. told in history books and the Kievan Rus in 988. Slavic pagan People there are equally friendly, in- people who know and retell all names and legends come to life viting us to their homes and asking these stories are still alive. It is here. Yivzhyn wells (Princess Ol- us why we’re there. “Oh, so you’ve unknown whether these villages ga’s wells) were dug by her troops visited those lords?” the host won- will die out like many others did, during the advance on the Drev- ders mockingly. “When their guy whether their noble villagers will 3Boyars were members of lians to avoid drinking water from marries our girl, his whole village the highest rank of the assimilate or savvy young gener- existing wells, which the Drevlians baits him for taking a common feudal Moscovian and Ki- ations will turn them into stan- evan Rus aristocracies in may have poisoned. These wells woman.” the 10th-17th centuries. dard popular traditional tourist Only the ruling princes were guarded 24/7. Mr. Kovalchuk “Blue blood, blue blood,” the were superior. destinations. For now, you can learned these and many other leg- host continues. Suddenly, a smile be here, listen and watch here, ends from his grandmother who lights up his face. “Not that blue and absorb the rich and full could not read or write. The name anymore… The Germans have memory with the air. № 18 (60) october 2013|the ukrainian week|33 Navigator|social media Get a Life! Using the social network seems to make people more miserable
hose who have resisted the port a decline in satisfaction than A volunteer’s sex had no influ- urge to join Facebook will those who visited the site infre- ence on these findings; nor did the surely feel vindicated when quently. In contrast, there was a size of his (or her) social network, Tthey read the latest research. positive association between the his stated motivation for using A study just published by the Pub- amount of direct social contact a Facebook, his level of loneliness or lic Library of Science, conducted volunteer had and how positive he depression or his self-esteem. Dr by Ethan Kross of the University Kross and Dr Verduyn therefore of Michigan and Philippe Verduyn conclude that, rather than enhanc- of Leuven University in Belgium, the most common ing well-being, Facebook under- has shown that the more someone emotion aroused mines it. uses Facebook, the less satisfied Their study does not tease out he is with life. by using Facebook why socialising on Facebook has Past investigations have is envy a different effect from socialising found that using Facebook is as- in person. But an earlier investi- sociated with jealousy, social ten- felt. In other words, the more vol- gation, conducted by social scien- sion, isolation and depression. unteers socialised in the real tists at Humboldt University and But these studies have all been world, the more positive they re- Darmstadt’s Technical Univer- “cross-sectional”—in other words, ported feeling the next time they sity, both in Germany, may have snapshots in time. As such, they filled in the questionnaire. found the root cause. These re- risk confusing correlation with searchers, who presented their causation: perhaps those who findings at a conference in Leipzig spend more time on social media in February, surveyed 584 users are more prone to negative emo- of Facebook aged mostly in tions in the first place. The study their 20s. They found conducted by Dr Kross and Dr that the most common Verduyn is the first to follow emotion aroused by Facebook users for an extended using Facebook is period, to track how their emo- envy. Endlessly tions change. comparing them- The researchers recruited 82 selves with peers Facebookers for their study. These who have doctored volunteers, in their late teens or their photographs, early 20s, agreed to have their amplified their Facebook activity observed for two achievements and weeks and to report, five times a plagiarised their day, on their state of mind and bons mots can leave their direct social contacts (phone Facebook’s users calls and meetings in person with more than a little other people). These reports were green-eyed. Real-life prompted by text messages, sent encounters, by con- between 10am and midnight, ask- trast, are more ing them to complete a short ques- WYSIWYG (what tionnaire. you see is what you When the researchers analy get). sed the results, they found that the What neither more a volunteer used Facebook study proves is in the period between two ques- whether all this is tionnaires, the worse he reported true only for younger feeling the next time he filled in a users of Facebook. questionnaire. Volunteers were © 2013 The Older ones may be also asked to rate their satisfaction Economist more mellow, and thus with life at the start and the end of Newspaper less begrudging of their the study. Those who used Face- Limited. All friends’ successes, coun- book a lot were more likely to re- rights reserved terfeit or real. Maybe. 34|the ukrainian week|№ 18 (60) october 2013