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The Ukrainian Week № 20 (43) December 2012 Publisher Address: Vul JANUSZ BUGAJSKI: THE YEAR AHEAD PAGE FORECASTS FOR 2013: BUDGET PAGE WAKE UP CALL: 10,000 PROTESTERS PAGE WILL BE A TEST DEFICIT, PRESSURE ON BUSINESS RALLY AGAINST POLLUTION BY FOR UKRAINE'S INDEPENDENCE 6 AND DECLINING INVESTMENT 24 OBSOLETE OLIGARCH-RUN PLANTS 34 № 20 (43) DECEMBER 2012 Why Ukraine should avoid the trap by all means WWW.UKRAINIANWEEK.COM Featuring selected content from The Economist FOR FREE DISTRIBUTION 01_FACE.indd 1 14.12.2012 13:09:17 20 13 2013 Wishing you a Merry Chrimas and a New Year filled with joy. May the new year bring you peace, happiness and prosperity! |CONTENTS BRIEFING FOCUS The US Revokes Janusz Bugajski In Whole or in Part? Visa for First on 2013 as a testing year The Kremlin will try to Deputy Prosecutor for Ukraine and threats to drag Ukraine into the General Renat its independence Customs Union using Kuzmin economic tools 4 6 8 POLITICS Ariel Cohen on the Divide and Conquer: The Batkivshchyna’s prospect of the Kremlin is preparing to Andriy Pyshnyi: The Magnitsky Act being keep Ukraine under its further Ukraine is applied to Ukraine control after the 2015 from the Customs presidential election Union, the better 20 10 13 12 15 NEIGHBOURS ECONOMICS Alone at the Top: Despite Russian philosopher Deficit Looming Large: The his initiatives to fight Igor Chubais: Hoping government is likely to take corruption, to many, Putin for change through some radical moves to fill in the seems increasingly isolated elections in Russia is depleted budget and out of touch naïve 2013 18 20 22 • 73rd place (of 144 countries) in the Global Competitiveness AFRICAN LEVEL Report (World Economic Conditions for conduing Forum, 2012) business in Ukraine High Risk Zone: The are among the Between a Rock and Ukraine’s Robber wor in the world – the evaluation investment climate in of international a Hard Place: Barons: Where initutions: • 137th place (of 185 countries) in the Doing Business rating (index on the Ukraine in 2013 will orld A tough year they come from ease of doing business) compiled by the W th Bank and the IFC (Russia – 112 , Eonia – 21 and Georgia – 9th) • 144th place (of 176 countries) not intimidate Russia 012 from for non-oligarch in the Corruption Perceptions Index – 2 Transparency International (together with epublic, Bangladesh, Cameroon, Central African R Congo and Syria) alone nd business • 152 of 183 countries with regard to the total tax rate. In Ukraine, it conitutes 57.1% (World Bank and PricewaterhouseCoopers research) • 163rd place (of 179 countries) in the Economic Freedom Index – 2012 • Down to 2.14 oundation) (Wall Street Journal and the Heritage F on a 5-point scale – the level to which the Invement 24 • 181 place (of 183 countries) 25 26 orld Bank Attraiveness Index for in the ease of paying taxes ranking (W ) Ukraine in Q3’2012 has fallen. and PricewaterhouseCoopers research The level of Ukraine’s attraiveness • 4.43 on the 10-point scale aluated aine for inveors, which has been ev of the Invement Aivity Index in Ukr ey by the European Business Association in Oober 2012, based on the results of a surv opean with the support of InMind marketing INVESTIGATION of the managers of 253 American, Eur research company since 2008, has fallen SOCIETY , condued . and Ukrainian enterprises to the lowe level in the la three years by Research & Branding Group The Ghosts of Industrial Past: Stolen Air: The half- Easy Come, Easy Go: Industrial depression in the million population of Why Ukrainians Donbas depopulates towns Mariupol in Eastern are becoming more once built around plants and Ukraine is standing for its reluctant to get coal mines right to breathe safely married 30 34 37 HISTORY CULTURE & ARTS To Marry or not to Marry: Carol of the Bells: The Learn to Listen to Yourself: The evolution of marriage birth of the popular Polish DJ with Ukrainian roots from forced to voluntary, Christmas tune in pre- Cai Caslavinieri talks about from church to civil, and from Christian Ukraine Ukrainians in Poland, commercial convenience to love art and freedom of music choice 40 43 44 Wishing you a Merry Chrimas and a New Year filled with joy. NAVIGATOR May the new year bring you peace, happiness Authentic Christmas: The Ukrainian Back to the Village: Open-air museums and prosperity! Week offers a selection of films and invite everyone on a journey back CDs that reveal Ukrainian winter in time festivity rituals in a creative modern interpretation 46 48 Natalia Romanec, Shaun Williams, Editors; Anna Korbut, Translator Mailing address: PO Box 2, Kyiv, 03067 The Ukrainian Week № 20 (43) December 2012 Publisher address: vul. Mashynobudivna 37, Kyiv 03067 Ukraine Founder: ECEM Media Ukraine LLC Publisher: The Ukrainian Week LLC E-mail: [email protected], Tel.: (044) 351-1300 First published in January 2010 www.ukrainianweek.com State registration certificate Print: The Novy Druk, LLC, 1 Mahnitohorska Str. Series KB No18352-7152ПР of October 24, 2011 Ordering number: 12-7239. Print run: 15,000 Bohdan Andriytsev, Director, ECEM Media Ukraine LLC Sent to print on 14 December 2012 Serhiy Lytvynenko, Editor-in-Chief, The Ukrainian Week Free distribution № 20 (43) DECEMBER 2012|THE UKRAINIAN WEEK|3 BRIEFING| 27 November 6 December 10 December Viktor Yanukovych signs the The Senate passes the The EU commits to signing the Law on the Referendum. Go Magnitsky Bill envisaging Association Agreement and FTA to p. 12 for more details on sanctions against blacklisted with Ukraine in November 2013 the threats of the new law Russian officials and the provided that Ukraine shows freezing of their assets. progress in several areas The US Bans Visa for Prosecutor Key people in the Yanukovych regime have been banned from traveling to the West, but the first “victim” of this ban appears to be a provocateur Author: krainian officials are beginning to be persona Oleksandr non grata in the West. At least, this is the Mykhelson conclusion made by a good few observers of Uthe scandal surrounding the First Deputy Prosecutor General of Ukraine, Renat Kuzmin, whose visa for entry into the USA was revoked. As is well-known, in early October, following the approval of the US Senate resolution regarding official Kyiv, which proposed banning representatives of the Ukrainian Government, involved in the Tymoshenko case from entering US territory, including the Dep- uty Prosecutor General, Kuzmin wrote a letter to the US Congress and Vice President Biden with a pro- posal to address the US Congress in order to tell them the “truth" about Tymoshenko and her com- plicity in the murder of four people. However, on 19 October, the US Ambassador to Ukraine, John Tefft, the American side is not responding to the applica- personally informed him of the cancellation of his tion for the transfer of this evidence, made by the multi-entry five-year visa. General Prosecutor’s Office of Ukraine. Moreover, An open letter to the US President Barack Obama the Deputy Prosecutor General asserts that “On the dated 3 December, states that American officials are initiative of some American and Ukrainian politi- supposedly hampering investigations in the case of cians, the US Justice Department has developed a the 1996 assassination of Yevhen Shcherban. Kuz- detailed plan to counteract and destroy the case on min claims that the US Justice Department has doc- the assassination of Yevhen Shcherban.” Kuzmin uments and evidence provided by Petro Kyrychenko, then discloses highly controversial details. Accord- a former aid of Lazarenko, Lazarenko himself and ing to the letter, he was supposed to be arrested on ex-Major Mykola Melnychenko, which confirm Ty- the territory of the USA, for exerting pressure on moshemlo’s guilt. However, Kuzmin complains that Melnychenko. So Kuzmin would have languished in The month 1 December 1991 3 December 1722 6 December 1903 in history Over 90% of the 32 million Hryhoriy Skovo- Mykola Kolessa, composer Ukrainians who voted in the roda, Ukrainian and the patriarch of Ukrai- national referendum supported enlightener phi- nian conductor school,is independence for Ukraine losopher, poet born and teacher, is born 4|THE UKRAINIAN WEEK|№ 20 (43) DECEMBER 2012 |BRIEFING 11 December 12 December 13 December Oleksandr and Andriy Tabalov 127 WTO countries con- Viktor Yanukovych signs elected to theVR under United Op- demn Ukraine’s plans to a decree to re-appoint position list are the first crossovers revise imports duties Mykola Azarov as Premier in the new parliament. UO will de- after the VR votes in his mand withdrawal of their mandates favour with 252 votes “green” diplomatic passport, which he has, but which does not provide for such immunity). At the same time, well-informed sources of The Ukrai- nian Week stress that the Ukrainian official could only be arrested in the USA for espionage or a fel- ony offence. In a 2010 interview, Kuzmin remarked briefly that he was conducting “investigative proce- dures” with Petro Kyrychenko in the United States. If there was no official permission for this from Read more on the Magnitsky Act and its competent US bodies, Kuzmin clearly violated consequences for American law. However, as those interviewed by Kyiv officials on page 10 The Ukrainian Week stated, he would only have been expelled from the country for doing this, not arrested. The lack of reaction from the Ministry of For- eign Affairs of Ukraine, the Prosecutor General and the Presidential Administration to the “diplo- matic incident” can only be evidence of the at- tempt by the Ukrainian government to distance it- self as much as possible from the incident with Kuzmin, saying in effect, that this is a personal is- sue, in order to avoid suddenly coming under the heavy hand of the US.
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