Elections Legal assessment US Ambassador Geoffrey Pyatt in of the 2014 Russo-Ukrainian war on challenges for Ukraine

№ 14 (80) november 2014

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|contents BRIEFING Lobbymocracy: Ukraine does not have Rapid Response Elections: The victory adequate support in the West, either in of pro-European parties must be put political circles, or among experts. The to work toward rapid and irreversible situation with the mass media and civil reforms. Otherwise it will quickly turn society is slightly better into an equally impressive defeat 28 4 Leonidas Donskis: An imagined dialogue on several clichés and misperceptions POLITICS 30 Starting a New Life, Voting as Before: Elections in the Donbas NEIGHBOURS 8 Russia’s gangster regime – the real story Broken Democracy on the Frontline: “Unhappy, poorly dressed people, 31 mostly elderly, trudged to the polls Karen Dawisha, the author of Putin’s to cast their votes for one of the Kleptocracy, on the loyalty of the Russian richest people in ” President’s team, the role of Ukraine in his grip 10 on power, and on Russia’s money in Europe Poroshenko’s Blunders: 32 The President’s bloc is painfully The Bear, Master of itsT aiga Lair: reminiscent of previous political Russians support the Kremlin’s path towards self-isolation projects that failed bitterly and confrontation with the West, ignoring the fact that they don’t have a realistic chance of becoming another 12 pole of influence in the world 2014 Russo-Ukrainian War: A comprehensive 34 legal assessment in the framework of international law ECONOMICS Volodymyr Lavrenchuk, Board Chairman of RaiffeisenB ank 14 Aval, speaks about the future of Ukrainian banks Mykola Tochytskyi, Ukraine’s Permanent Representative to the Council of Europe: 36 “It is possible to legally prove that Russia Many Winners, a Few Bad Losers: is assisting terrorism” A lower oil price will boost the world economy 18 and harm some unpleasant US Ambassador Geoffrey Pyatt: regimes—but there are risks “There will be no Cold War 2.0” 38 Economist EricR einert speaks on his vision 20 of Ukraine’s economic development, ways to overcome poverty, threats of de-industrialization FOCUS Freedom For Others: Why not everyone 40 raised under western democracy SOCIETY considers freedom a universal value Council of Europe Commissioner for Human Rights Nils Muižnieks: It is important to go to 23 Crimea to draw attention to the situation there Between Interests and Values:The West cannot develop freely with a dominating, backward Russia 42 24 HISTORY All Quiet on the European Front: The Story of Odesa: Through Cossacks, Khans and Russian Emperors In Western Europe there 44 is fairly widespread indifference to the fighting in Ukraine CULTURE & ARTS or the growing tensions Milenko Jergović, one of the most influential in the Baltic States. They contemporary writers from Central-Eastern Europe, do not see it as a threat speaks on the wars in the Balkans and Ukraine, to their own way of life language conflicts and nationalistic preconceptions 26 48

E-mail [email protected] www.ukrainianweek.com Tel. (044) 351-13-87 The Ukrainian Week № 14 (80) November 2014 Editors address 37 Mashynobudivna str., , 03067, Ukraine Founder ECEM Media GmbH. Publisher ECEM Media GmbH Print run 15 000. Free distribution Address Austria, Am Gestade,1, 1010 Vienna Our partner State registration certificate КВ № 19823-9623ПР 19.03.2013 Chief Editor Alla Lazareva Editors Anna Korbut, Natalia Romaneс, Shaun Williams № 14 (80) november 2014|the ukrainian week|3 BRIEFING| Rapid Response Elections The impressive victory of pro-European forces in the party lists must be put to work toward rapid and irreversible reforms, otherwise it will quickly turn into an equally impressive defeat

he parliamentary elections Author: tion were held on a proportional these two parties could separately were a dizzying success for Oleksandr basis, the corresponding ratio of attempt to form coalitions with pro-European candidates. Kramar deputies in Parliament would be other “Maidan parties”. TYet a cursory look at the re- 396 to 54. In this example, the However, the strong gains by sults created a misconception Bloc of (BPP) pro-European political forces were among the public that the domina- and Arseniy Yatseniuk’s People’s fed by the temporary demoraliza- tion of Parliament by pro-Euro- Front could form a coalition with- tion of the pro-Russian electorate, pean political forces is permanent, out the involvement of other polit- which resulted in low voter turn- and the threat of revenge by for- ical forces, holding 126 and 128 out in the southern and eastern mer members seats respectively for a stable 254- regions (32-42%) and higher mo- and the pro-Russian project has seat majority. However, each of bilization of the electorate in west- passed. However, deeper analysis reveals the fallacy of such findings and the serious dangers hidden beneath the surface. Indeed, pro-European candi- dates won party lists in every re- gion except the liberated areas of Donetsk and Luhansk oblasts. This seems to finally put to rest the popular narrative of Ukraine as a nation divided by regional pro-European and pro-Russian leanings. The margin of victory was least pronounced in Odesa and oblasts, but even there, pro-European parties gar- nered more votes than the three pro-Russian parties in most elec- toral districts. The exceptions are five districts in the Kharkiv region (171-173, 176, and 178) and one in the Odesa region (143). This year’s parliamentary elec- tion results show significantly greater gains by pro-European candidates in southern and eastern regions than were made in previ- ous elections. Pro-European candi- dates with party affiliations and in- dependent candidates with similar views gained at least 26 seats. Vic- tories in Mykolayiv and Kherson regions formed a large part of these gains (10 out of 11 seats). Another interesting feature of this election was the success of the nationalists in central and eastern Ukraine, and their devastating defeat in most districts of western Ukraine. Overall, pro-European politi- cal forces won 198 seats on party lists, while the “opposition bloc” ended up with only 27. If the elec- 4|the ukrainian week|№ 14 (80) november 2014 n h nx eetosnt u to due elections—not next the in more times four or three reap not will they that mean not does tion elec- this in votes million 2.6 only garnered Ukraine) the Strong hipko’s Ti- Opposition, Serhiy and Party, Communist (United triad and ). the party Position Civil senko’s Hryt- Anatoliy party, Svoboda (Freedom) including million (12.4 Parliament pro-European the joined that parties five the for voted million 10.9 than less voters, tered - regis million 30.4 the of all, After suggest. would 26 October of tions elec- the as significant - overesti as not is it be but place, not taking is change mated: should land- scape electoral country’s the ing the longevity of the changes affect Therefore, (60-70%). regions ern h fc ta te pro-Russian the that fact The - ing and no one can guarantee that guarantee can four one no and ing have they years until the next election. Noth- that assume to Minister Prime and President the candidates. for pro-European in support decrease the to due was in from18to16million two elections reduction the between the turnout voter overall of 95% Thus, elections. 26 October that the by mil- lion 12.4 while to shrunk had votes, number received million 14.3 candidates European the pro- election, In presidential 25 May visible. clearly already next is the process dangerous This in elections. participation their reduce pro-European significantly could voters of appointment dis- the time, same the At voters. better mobilization of pro-Russian simply but preferences, changing t s dneos luin for illusion dangerous a is It

photo: andriy lomakin distanced distanced themselves months from now will not tak that th N many MaidanorATO Yanukovych majority political forces inthe political forces inthe October 26elections October 26elections Central Ukraine, and members ofthepro- Western andcentral through tothenew The strong gainsby The strong gainsby districts: 50won in 1 didinZakarpattia independently and № 14 (80) one through FPTP regions, 20 ran in demoralization of demoralization of regions voted for activists whoran the pro-Russian the pro-Russian were fed by the were fed by the Regions MPsor parliament got in theprevious from anyparty o on south-eastern pro-European pro-European 71 ex-Party of temporary temporary electorate electorate november e can g e n e volatility and exaggerated infatua- exaggerated and volatility agri- cultural constituencies. some in vote the of 10-16% garnered and project The Transcarpathia Chernivtsi. Sumy, sia, Vinnyt- to of Odessa and Zaporizhia support the from - oblasts 10 in voters of 3-6% Uly- won Vira Yush- Staff anchenko former of Chief by chenko led party ian before the election, Zastup (Spade) agrar- shortly confu - Established of sion. situation ex- this successfully ploiting are projects cal shifted. can be state of the fate the and fate their for sponsibility re- all for which upon victim next the menu political proposed the scan frantically they themselves, ing to accept greater responsibility - refus and organization grassroots the avoiding while voters: among of majority emotions sense common simple over and illusions messianic infantilism, political of dominance the demonstrates tion situa- This expectations. their fill ful- better will it that certainty any without unknown the to known finds itself, ready to jump from the confu- sion in which the Ukrainian public complete the of example excellent an is Samopomich Front and People’s the of growth and the BPP the for support in cline that de- significant the in reflected was sentiment public of change ontheirlaurels. rest and relax to forces pro-European his chose the for million time no is this Thus, party. 3.45 only 26 October on and 25, May on enko Porosh- for 9.9 voted people trust. million erodes quickly Credit stay. to world” the of top “on were they that think to (Selfreliance)) Samopomich Sadovyi’s Andriy or ites of this favor- election (People’s Front the for simi- short-sighted larly be would It elections. parliamen- tary the until years nearly three and election the until year presidential a had still he that believed also Yanukovych winter, take last now: not from months four will place elections next the xt 2014 e In the future, this electoral electoral this future, the In Meanwhile, other “new” politi- feverish even rapid, The u

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RIE F IN | G 5 BRIEFING| tion with “fresh faces” increases and multimillionaire Viktor Ba- the threat that Moscow’s puppet loha. 3 out of 5 Volyn FPTP MPs masters might employ manipula- represent the group of the local tive techniques to exploit the cur- multimillionaire Ihor Yeremeyev. rent Ukrainian spirit of dissent. Poltava oligarch Kostiantyn Zhe- The new coalition’s first prior- vaho has made it into the legisla- ity should be to change the elec- ture through his FPTP constitu- toral system in order to put an end ency; , ex-chair of to the majority, of first-past-the- the Donetsk Oblast Administra- post system, and, ideally, to intro- tion and co-owned of the ISD cor- duce a system of open lists. poration won in the Donetsk re- The FPTP component strongly gion, while Borys Filator who is distorted the election results this close to time around. Several nominees Governor Ihor Kolomoyskiy won were able to get into parliament the election at home. with only 15-25 thousand votes Western and central regions and as few as 1,500-7,000 votes in voted for many Maidan or ATO ac- some Donbass districts liberated tivists who ran independently in by the ATO (Anti-Terrorist Oper- FPTP districts and distanced ation). For comparison, parties themselves from any party. How- needed 55,000 votes to get a single ever, many of them will soon have seat in parliament. With their excess to join other groups. Some could of voters, FPTP candidates “com- unite with nationalists from Svo- pensated” for lower turnout in the boda and the Right Sector. Both southeastern regions formerly dom- parties have failed to beat the 5% inated by pro-Russian and Party of threshold this time around. Still, Regions forces, greatly increasing at least 9 of their nominees or their level of representation in Par- members have made it through in liament (see p. 8). FPTP districts. This was accomplished not Both party-nominated candi- only by bribing voters, establish- dates and independent ones in- ing a critical mass of sympathizers clude many agrarian lobbyists, al- among district and oblast electoral though they are not yet solidly or- commissions, or through the sup- ganized. port of administrative resources Compared to the previous gen-

(because the same ex-Party of Re- unian photo: eral elections, this year’s race gions members still control local The first prize in shows higher popularity of pro- government in the southeast). The the competition elected 14 majoritarians in the European parties in southern and number of electoral districts is de- for the most Kharkiv region, while 1,371,800 eastern regions. They have won at termined by the number of voters absurd voters elected 12 in the Lviv re- least 26 seats in FPTP districts in machinations registered in a given area. Due to in Donetsk gion. Mykolayiv, Kherson, Dnipropetro- the lower actual turnout in south- Oblast goes to Pro-European parties have vsk and Zaporizhia oblasts. ern and eastern electoral districts, the incumbent garnered 110 seats through FPTP Surprisingly, nationalists en- the party lists garnered signifi- Party of Regions districts. 69 ran as BPP nominees, joyed considerable success in cantly fewer votes than those in MP Yukhym 18 represented People’s Front can- FPTP districts in Central and central and western Ukraine. Zviahilsky didates, 11 MPs are members of Eastern Ukraine, and a bitter de- However, this rule did not hold different nationalistic parties, feat in most western districts that true in the FPTP districts, where while 4 pro-European FPTP MPs had previously been their core one MP was elected for each dis- were nominated by Yulia Tymosh- electorate. Some Svoboda candi- trict regardless of the number of enko’s Batkivshchyna, 2 – by the dates had won a sweeping victory voters. in Western Ukraine in 2012 but As a result, in the part of the failed to even come second this Donbas controlled by Ukraine, “New” political projects time. In Central Ukraine, by con- 598,000 voters (3.7% of voters na- were successfully trast, five Svoboda members and tionwide) elected 17 FPTP MPs to two representatives of other na- parliament (8.6% of 198 elected). exploiting tionalistic parties got through in Meanwhile in the western Terno- confusion of voters the FPTP voting. Dmytro Yarosh, pil region, 574,600 voters (3.6%) the leader of the Right Sector, won will be represented by just 5 mem- Ukrainian People’s Party, and 1 – in the FPTP district in Dniprope- bers (2.5%). Thus, a single FPTP by Samopomich. trovsk Oblast. candidate from the Ternopil re- The owners of big regional Some FPTP-elected MPs were gion will represent 115,000 voters, businesses who declare their pro- or still are members of political while in the liberated districts of European orientation have made parties but ran independently. Donetsk and Luhansk oblasts, one it into the parliament as well: 4 These were, first and foremost, ex- FPTP MP will represent just out of 6 FPTP MPs elected in Za- Party of Regions MPs who were 35,000. The situation is similar in karpattia are brothers and cousins trying to distance themselves from other regions: 973,300 voters of the Zakarpattia ex-governor their discredited party brand even 6|the ukrainian week|№ 14 (80) november 2014 in their core southern and eastern in order to have at least some in- regions, as well as representatives fluence in the legislature. On the of a number of pro-European par- other hand, just like members of ties. This was partly due to the low the Opposition Bloc, they repre- popularity of their parties in the sent different groups of influence given region. Some preferred to that had been hostile towards each have free hands in the new parlia- other even under Yanukovych (in- ment. cluding many people of Rinat Two of the four nationalists Akhmetov and Dmytro Firtash, (Boryslav Bereza, PR chief for the Serhiy Liovochkin, as well as those Right Sector, and Andriy Biletskyi, who earlier leaned towards Andriy commander of the ) Kliuyev, Yuriy Ivaniushchenko elected to parliament in Kyiv ran as and Oleksandr Yanukovych). This self-nominees. Svoboda’s Serhiy circle also includes people of Vik- Rudyk got through as a self-nomi- tor Pinchuk (Yakiv Bezbakh), nated candidate in Cherkasy Oblast. Oleksandr Hereha, the owner of Members of Batkivshchyna won in the Epicenter retailer for con- Khmelnytskyi and Dnipropetrovsk struction materials, Viktor Rozva- oblast districts as independents. dovskyi and Serhiy Labaziuk, both Some new MPs, such as close to ex-speaker Volodymyr Khmelnytskyi Mayor Serhiy Mel- Lytvyn, and two representatives of nyk known as member of Bat- the “young team” of Kyiv’s ex- kivshchyna, is already listed in mayor Leonid Chernovetskyi – parliament as a BPP member. Oleksandr Suprunenko and Oles Similar cases could soon emerge Dovhyi. in other parties of the coalition, MPs elected through the Op- Samopomish and People’s Front, position Bloc party list and self- who have decided to accept only nominated ex-Party of Regions factions, not individual MPs, into MPs could eventually rearrange their majorities. into several parliamentary groups. FPTP-elected MPs nominated Some ex-Party of Regions MPs, by pro-European parties are un- especially those running in Cen- likely to start switching to other tral Ukraine, distanced themselves likeminded groups in parliament from the Yanukovych regime al- anytime soon. Some will be held ready in this campaign, publicly back by the negative perception of supporting ATO participants as crossovers as elements of political part of their promotion cam- corruption in society. In the fu- paigns, and advocating immediate ture, however, this scenario is imposition of martial law to end quite possible, especially if the the conflict in the Donbas. Most President and Prime Minister en- MPs elected in Central and South- ter into a sharp public or covert Eastern Ukraine are likely to try confrontation. In the last years of and create conformist groups al- Yanukovych’s rule, some MPs ternative to the Opposition Bloc from what were then opposition just to become part of the parlia- factions voted in line with their mentary majority, to find their Party of Regions opponents. They spot in the government, or to did not need to leave their factions lobby their interests. to do this. Similar risks exist in the The danger is that they could current parliament. also support the freezing or resto- 71 ex-Party of Regions MPs or ration of the rules that dominated members of the pro-Yanukovych in Ukraine before the Maidan, the majority in the previous parlia- downplaying of the Maidan ac- ment got through to the new one complishments, and the ham- through FPTP districts: 50 won in pering of reforms necessary for south-eastern regions, 20 ran in European and Euro-Atlantic inte- Central Ukraine, and 1 did in Za- gration. With the worsening socio-­ karpattia. Only two were nomi- economic situation and dismay of nees of the Opposition Bloc, and part of the electorate with the win- one represented Serhiy Tihip- ners of the latest elections, these ko’s Strong Ukraine. A few others people could mobilize into a solid never quit their Party of Regions fifth column of the Kremlin, fur- membership. ther reinforced by representatives It is currently difficult to say of the previous regime who got what they will do in parliament. through to the parliament in the On the one hand, an MP has to be party lists or as nominees of pro- part of a faction or a group of MPs European forces. Politics|Elections but also gave falsifiers the green light. Fraud at District Election Commissions (DECs) and polling Starting a New Life, stations was blatant and brazen. It was sad to look at the candidates who believed in the possibility of fi- nally seeing honest elections in the Voting as Before East. On the eve of voting, various ex- cuses were made to change the per- sonnel in nearly all DECs in Donetsk The election in the Donbas followed the traditional Oblast. Instead of commission scenario for this region. Unfortunately, members who did not express fa- vouritism in FPTP races, without its residents learned nothing from any explanation, people were ap- pointed who had to ensure victory the bloody lessons of 2014 for specific candidates. Valeriy Nosov, a member of DEC No. 48 in nce more, they gave their Author: the first-past-the-post constituen- Kramatorsk, stated that he was ex- votes to the forces that, with Denys cies, which is nothing short of a mir- cluded on October 24. This was their actions, actually pro- Kazansky, acle in the Donbas. In some Donetsk done on the request of the Native Ovoked the ruinous anti- Sloviansk – Oblast constituencies, the Presi- Fatherland (Ridna Vitchyzna) Party, Ukrainian putsch and Russian inter- Kramatorsk – dent’s party is ahead of ex-Party of which had previously submitted his vention in Ukraine. Even the war, Dzerzhynsk Regions candidates. name as its candidate. The decision which has hit the streets of nearly all The most saddening thing, how- was made in Kyiv. of the oblast’s cities, did not force ever, is not so much the inclination “According to the law, there people to analyse reality and come of the electorate, but the familiar were no violations. However, it’s to any conclusions about what has rake that they have stepped on – the clear that my place in the commis- happened. numerous falsifications that took sion was simply bought”, Nosov The Opposition Bloc, comprised place in the Donbas without hin- confessed. of former Party of Region MPs, was drance, just as they did during the Other DEC members were also gaining quite a significant lead with rise of the Yanukovych regime when replaced in the last minute without about 35% of the vote. Before the such tricks were the norm. Unfortu- warning. Employees of the Energo- election, Serhiy Tihipko’s party was nately, not only did the government mashspetsstal Plant were appointed tipped to be the winner, rather than fail to do anything to prevent this, instead. Its director, Maksym Yefi- Yanukovych’s friends. However, the percentage of votes gained by his party, Strong Ukraine, is frankly low. Many felt that ex-Party of Re- gions’ MPs lost the trust of the elec- torate because of their tendency to conform to circumstances and their cowardly position after they initially called for an uprising and civil dis- obedience in spring, then recognised the legitimacy of the new govern- ment and began to play by its rules, putting only their own electorate in the firing line. Yet, the trust of the electorate in “their homeboys” turned out to be infinite. In fact, there was some progress this time. Compared to 2012, the re- sults of the Party of Regions have worsened significantly. The Petro Poroshenko Bloc (BPP) took a solid second place. Here and there, sev- eral more parties from the Maidan (Arseniy Yatseniuk’s People’s Front, Oleh Liashko’s Radical Party and Andriy Sadovyi’s Samopomich) won more than 5% of the vote. This is a significant rise in the popularity of pro-European forces. The gap be- tween them and pro-Russian parties has closed seriously. A pro-Ukrai- nian candidate even won in one of 8|the ukrainian week|№ 14 (80) november 2014 Elections|Politics mov, won in the constituency. For- the DEC was actually manipulated dence of numerous falsifications. mer DEC members stated that Mr. in favour of Yuriy Soloda, a candi- The two eastern oblasts were far be- Yefimov was behind the radical date from the Opposition Bloc, who hind the rest of Ukrainian regions in change in the DEC. Voting results is the husband of Natalia Ko- ballot-counting. This occurred both confirmed this. rolevska, the Social Policy Minister in the front-line constituencies, and The situation at constituency under . It is those in the rear where there was no No. 48 in Kramatorsk is not unique. known that of the 18 DEC members, reason for delay. The same tactics have long been 16 were replaced on the eve of the The first prize in the competi- used in Ukraine. It is why creating election with people registered as tion for the most absurd machina- political parties has become a lucra- Luhansk residents. Korolevska and tions in Donetsk Oblast goes to the tive business, as even little-known Solod are also from . incumbent Party of Regions MP political forces that only exist on pa- Solod predictably won in his Yukhym Zviahilsky (constituency per, were able to make money by No. 45) and the independent candi- selling their quotas on election com- THE MOST SADDENING THING date Oleh Nedava (constituency No. missions. On the eve of the 2014 53). Only a few polling stations were election, there was an illusion that IS NOT SO MUCH THE open in these two constituencies. In this time, old corrupt traditions PREFERENCES OF THE DONBAS Zviahilsky’s constituency – only four would be ruined, but it was not out of one hundred, all of them in re- meant to be. Everything remained ELECTORATE, BUT NUMEROUS mote villages. Attendance there was the same. Moreover, as DEC mem- FALSIFICATIONS AS THE twice that of the rest of the whole bers witnessed, BPP and other par- oblast. Meanwhile, no polling sta- ties from the democratic camp also FAMILIAR RAKE THEY HAVE tions were opened in Adviyivka, a participated in this machination. HAPPILY STEPPED ON AGAIN calm part of the constituency. As a Artur Herasymov, a BPP candi- result, Zviahilsky won with only date and head of the bloc’s election constituency with a wide margin 1,450 votes (72% of total votes). headquarters in Donetsk Oblast from his closest opponent. Appar- Oleh Nedava, who won 63% in (No. 43 in the party list), is said to be ently, the candidate, who had never constituency No. 53, should be of responsible for the manipulation of lived in Sloviansk prior to this, sim- particular interest for Ukrainian the election in the Donbas. DEC ply bought the electorate’s loyalty. journalists for being a business members, relieved of their responsi- Representatives of Korolevska’s partner to Yuriy Ivanyushchenko, bilities, confirm that he was the one Kramatorsk, an husband’s competitors recorded the Yanukovych Family man with a to negotiate on the replacement of industrial gem acts of bribery on video. The evi- criminal background. As a result, commission members. of Ukraine! We dence is available to the public, but people from the Yenakievo criminal Constituency No. 47 in Slo- shall revive the complaints and publicity did not clan will be present in the future viansk saw a similar scenario. There, Donbas! help. Law enforcement agents did parliament. And their victory was not notice any blatant crimes. literally organised behind the backs There was a real sensation in of the Ukrainian soldiers protecting constituency No. 60 in Volnovakha. Vuhlehirsk from pro-Russian fight- The winner there was BPP candi- ers. Nedava’s victory, just like Zvia- date and deputy of the city council, hilsky’s, is virtual, because his con- Dmytro Lubinets. There was a fierce stituency barely voted – most of the battle between him and Party of Re- territory is occupied, and only 11 gions MP Oleksandr Ryzhenkov in polling stations were open in Vuhle- and close to polling stations on Oc- hirsk. It seems that the only reason tober 26. The latter’s supporters re- they were open, was to allow Yuriy sorted to outright crime. On the eve Ivanyushchenko’s man to get into of the election, DEC chairman, parliament. Hanna Yeromchenko, was kid- The above facts bring forth a sad napped, after attempts by Ryzhen- conclusion: nothing has changed in kov’s supporters to scare and bribe the Donbas after the victory of the her failed. Maidan and the partial destruction However, with the help of the of separatist bands. This means that Kyiv-2 batallion, she was released all the problems that have accumu- and the criminals were brought to lated over the years and led to the the police station, where they admit- explosion at the beginning of 2014, ted their guilt and wrote that they are not resolved, and it would be had followed Ryzhenkov’s orders. wise to expect the next recurrence. But this did not prevent him from One of the fighters who pro- participating in the election. But tected the DEC in constituency No. even without the use of administra- 52, commenting on events in Dzer- tive leverage, the influential Party of zhynsk, smiled sadly and said off- Regions member lost, thanks to camera, in a private conversation: strict control at polling stations. “Let them do whatever they want, It should be noted that the we’ll sort things out here, then we’ll counting of votes at polling stations go to Kyiv to sort things out there”. in Donetsk and Luhansk Oblasts It appears that he was not jok- was very slow, which could be evi- ing … № 14 (80) november 2014|the ukrainian week|9 Politics|Elections Broken Democracy on the Frontline

Author: Denys Kazansky

he Donbas is in a state of devastation following Kostiantynivka and Dzerzhynsk look as if the war had the horrors of the past summer. The region has raged there for years. But most of this destruction oc- been ravaged by war, and recovery will be slow. curred during peacetime before the war had even be- TKramatorsk, Sloviansk, and Kostiantynivka are gun. The war seems to have become an excuse for recuperating as if from a serious long-term illness. these ruins—a way to justify them all. Decay is felt throughout. In the centre of Kostiantynivka stand two abandoned, The weeds lining the roadsides have not been mowed gloomy “palaces of culture” - typical Soviet buildings all year, creating the impression that the area has with windows caked in dirt. To get from here to Dzer- been abandoned. The asphalt still retains traces of zhynsk, the last city before the border of the territory shelling and tank treads. Drivers carefully navigate controlled by the “Donetsk People’s Republic” (DNR), amidst the abundant potholes. One feels the proxim- one must endure almost a half hour drive through ity of war, though it thunders 50-70 kilometres away. pits and potholes. There, two identical concrete mon- Along the road, one encounters several roadblocks uments to soviet secret police founder Felix Dzerzhin- billowing with smoke from bonfires used to heat the sky stand watch over poorly lit streets and houses soldiers. rendered unrecognizable by the grime that covers The lack of cars on the road is startling. The Donetsk- them. There is hardly a soul in sight. Kharkiv highway, once full of traffic, is now deserted. The local mines, they say, never reopened after the Life here is frozen, though shells have not fallen in brief occupation by the DNR. A few months of confu- this part of the Donetsk region since June. Once the sion and disorder hit the industry hard, and this sun sets over the horizon, a thick, heavy darkness de- frontline town could not recuperate after the fighting. scends over the road. No lights shine in the windows Shells still sometimes land here, although the attacks of neighbouring homes. The town along the road are not as fierce as those that occurred at Shchastia or seems completely empty. This scene is in striking Vuhlehirsk. On Sunday, Dzerzhynsk held parliamen- contrast tothe Poltava region through which one tary elections where, through the use of fraudulent passes on the road from Kyiv to Donetsk. There, one tactics, Ihor Shkirya was able to secure a victory. Un- sees lights twinkling atop happy, poorly dressed gas rigs, hotels and gas Unhappy, poorly dressed people, mostly elderly, stations along the road. trudged to the polls to Heading from Krama- people, mostly elderly, cast their votes for one torsk towards Donetsk, trudged to the polls to cast of the richest people in however, a bleak, gray, the Donetsk region. neglected landscape be- their votes for one of the There was a certain tinge gins. richest people in the of surrealism to it all. The Donetsk region has This impoverished, god- changed drastically Donetsk region forsaken town became a since last spring. The springboard to power for trouble brewing beneath the surface in Eastern a person completely alien here. The voters that Ukraine proceeded ever so quietly for years, plodded to the polls didn’t understand why they suddenly causing an uncontrollable chain reac- should even bother, what might change, and tion. These small industrial towns were already dy- whether change is even possible. ing a slow death. They were dying in spite of the country’s rising GDP and the encouraging statistics Observers, journalists, and Maidan party supporters of the mid-2000s. Soviet factories gradually reduced accused Shkirya of fraud, but nothing could be done their personnel, resulting in decreased populations about it. The soldiers guarding the office of the re- and the closure of schools and hospitals. This degra- gional electoral commission shrugged off the allega- dation began in the early 1990s and continued under tions and carried on with their job - to ensure that every subsequentgovernment. Whole buildings, thisformer Party of Regions member who supported shops, andfactories vanished from the face of earth. the separatists and voted for the January 16 legisla- What happened here in 2014 was the culmination of tion would get to parliament. To ensure that no one a long process. could disrupt the election process. 10|the ukrainian week|№ 14 (80) november 2014

Politics|Elections Poroshenko’s Blunders The President’s bloc is painfully reminiscent of ’s Our Ukraine party mixed with elements of Viktor Yanukovych’s Party of Regions

Author: he Ukrainian saying, “you even a party, but simply the name receive parliamentary seats. There Roman Malko can’t step into the same wa- of an electoral headquarters.” are nearly twenty obvious busi- ter twice” turned out to be Judging from the BPP party nessmen among the first hundred Tfalse. Politicians can dive list, every friend of the President list members alone, including mil- into the turbulent river of Ukrai- with a desire to run and an inkling lionaire and fellow Vinnytsian Hry- nian politics as many times as they of support from the party staff was horiy Zabolotnyi (the “caretaker” of please, and make the same blun- signed up. There are political allies, Vinnytsia regional agribusiness), ders as well. What’s worse, noth- business partners, and fellow oli- friend and business partner Ihor ing is learned with each successive garchs, all diluted with a small Kononenko, Valery Ishchenko (the misstep. Ukraine has already number of new faces from the second-wealthiest member of learned this lesson four times, ranks of civil society activists and UDAR after Klitschko), business- each with terrible consequences. honest journalists who will most man and banker Ihor Klymenko, It’s an incredibly simple lesson, likely spend a lot of time and en- Hryhoriy Shverk (partner of Chief but one that hasn’t caught the at- ergy to fix their reputation after of Staff Borys Lozhkin) pharma- tention of the country’s leaders. some time in power. If this project ceutical magnates Hlib Zahoriy Rather than learn from their blun- survives and stays afloat long and Oleh Kalashnikov, real estate ders, Ukraine’s politicians gladly enough, we can consider it a true professionals Mykhailo Hvozdyev repeat them again and again… miracle. and Oleksandr Hranovskyi, and This political amnesia will un- Its chances are minimal, controversial developer Lev doubtedly be used in favor of the though many surprising things Partskhaladze. President’s Bloc of Petro Porosh- have happened in these difficult There are also lobbyists, such enko (BPP). In the run up to the times, and the stellar rating of the as Leonid Kozachenko, who alleg- election, sociologists excitedly BPP is a prime example. It began edly represents the interests of the voiced rankings of electoral sup- not long ago as an ordinary fake—a powerful tobacco and vodka cor- port ranging from 20.5% to 39.8%, Polish Solidarity-style phantom porations while their oligarch so the bloc’s dominance remained party that existed solely on paper. chiefs hide in the shadows. Davyd unchanged in polls. The reason for That, however, did not prevent the Makaryan is a friend of Kremlin this love of the new kid on the BPP from teaming up with the very block is hard to explain. One need real UDAR, Vitaliy Klitschko’s not be an expert analyst to under- party, and thus materializing. To- stand that it will all end the same day, UDAR is one of the pillars of way it did the last time around. the BPP. How long this pillar will Love is cruel and blind. That’s how stand depends on what model its it was for National Democratic development follows. (ND) and Social Democratic par- President Poroshenko’s lack of ties (SDPU(o)) of , real, reliable power has prompted Ukraine’s second president, for him to seek allies. But UDAR Nasha Ukrayina - Narodna Samoo- alone will not suffice. Thus, he borona (Our Ukraine – People’s chose a losing team by partially Self-Defense, OU-PSD) of the third betting on politicians against president Viktor Yushchenko’s, whom the entire country pro- and for Viktor Yanukovych’s Party tested. Oligarchs, big business of Regions. protégés, and politicians who use Correction: In our article Lustration President Poroshenko made a politics for business purposes - all Over the Ocean in serious error by creating his ruling people who know perfectly well issue No 12(2014), party, believes political analyst what they want from the state. we quoted UCCA spokeswoman Oleksandr Solontay: “He made the Unfortunately, today we can al- Roksolana Lozynskyj same mistake as Kuchma (NDP), ready say that the President’s po- as reported by London’s The Globe Yushchenko (OU-PSD), and Yanu- litical force is the same party of big and Mail. In fact, kovych (PR). He modernized the business and nepotistic financial- The Globe and Mail concept of the president's party oligarchic groups that view the is a Toronto-based publication. UCCA with his Bloc of Petro Poroshenko. government as a resource. is an abbreviation The name implies a redux of the The latter are hardly on top of for the Ukrainian Congress Committee short-lived party concept: this time the party list, though still in the of America. Sorry. for a single election. This is not ‘safe area’ of the list guaranteed to 12|the ukrainian week|№ 14 (80) november 2014 Elections|Politics “overseer” in Ukraine, Vadym that there’s a less attractive side to his hands now? “Time to unite!” Novynskyi, and Maksym Savrasov this coin as well. This is an old and rings out from the presidential is associated with Oles Dovhyi, a unchanging scheme that has camp, which without further ado, notorious member of the ‘young stunted the country’s development sets about implementing its state- team’ of Leonid Chernovetskyi, for decades; it’s simply been refor- building motto. Kyiv’s one-time corrupt mayor. mulated and rebranded in the It is probably too early to Ihor Palytsia and Vyacheslav Frid- spirit of the time. The BPP is like a judge whether the president has man are tied to oligarch Ihor Kolo- combination of Yushchenko’s dem- acted correctly. The situation in moyskyi. Nataliya Ahafonova and ocratic Our Ukraine--People’s Self- the country still requires a strong Serhiy Tryhubenka are known to Defense Bloc and Yanukovych’s hand and a strong leader who is be Firtash’s people, while Olha Party of Regions where there is no ready to assume full responsibility Belkova (a close friend of ex-presi- strict discipline and the oligarchs for decisions that are not always dent Kuchma’s daughter Olena play first violin. But without disci- popular. This leader must have Franchuk) represents the Pinchuk pline, the orchestra can hardly sat- someone to lean on, and among family, and Nataliya Vasyliuk isfy the demands of society, instead the oligarchs, as we have seen, (hidden in the early-200s on the producing a continuous cacoph- there may be a few patriots. The list) is the sister of Ukraine’s larg- ony. only thing is that the President est landowner, Oleh Bakhmatiuk. This whole structure was cre- now has enough powers to take This is simply scratching the sur- ated to win elections, but without decisive steps – what he needs is face. If we look deeper, we find the proper conditions it can easily political will. But after months of even more interesting characters, collapse. Cracks will emerge and it hopeful talk, almost nothing has like the odious Davyd Zhvaniya in been done. Poroshenko’s unpopu- Odesa Oblast, or the entire clan of The Bloc of Petro lar actions have been minimized Viktor Baloha in Transcarpathia, and are nearly invisible against including himself, two siblings Poroshenko is a party of the backdrop of popular ones. The and one cousin (see Back to Black big business and nepotistic President continues to solve prob- on ukrainianweek.com). lems in his own special way, with- With the motto “Time to unite”, financial-oligarchic groups out strain, using the remnants of it is natural to believe that the that view the government the old system. He claims to have BPP’s main goal is to bring to- his own plan, but if it involves a gether the country’s strengths and as a resource combination of incongruous resources for the purpose of its re- forces, then he might as well aban- vival and restructuring. Or as the will crumble, as in Viktor Yush- don it now. President’s supporters say, collect chenko’s party or the Party of Re- One does not want to believe the highest-ranked pro-democracy gions more recently. The most ob- that Poroshenko’s goal is the mo- candidates in order to minimize vious potential defect of the BPP is nopolization of power and restora- the number of Party of Regions and the union with UDAR. It may turn tion of a “golden era” of Ukrainian Communist members in the future out to be the strongest part of the oligarchy, or that as the product of parliament. But it is quite likely BPP, despite talk about little rea- business promiscuity, he is repeat- son in the integration of this party ing the mistakes of his predeces- into the BPP before the local elec- sors. The policy of reconciliation tions where UDAR members might undertaken by the Presidential Ad- want to run separately. In fact, ministration is quite attractive, but many of the President’s new “dear now is unfortunately a wrong time friends” will switch parties just as for it. It could become a cruel joke. soon as the political winds change. Poroshenko’s motley team would Contrary to expectations, Pres- most likely keep him from imple- ident Poroshenko unfortunately menting all of his wonderful prom- did not choose to be an exception ises, and reforms will have to be to the archaic political rules of past forgotten. Obviously, the President presidents and thus created his is trying not only to form a power- own ruling party. Moreover, he ful political force but also to put his made the uncommon choice of eggs in different baskets by making adorning it with his honest name. peace with everyone. These conclu- We can only guess as to why he did sions emerge against a backdrop of this and whether it was his own questionable manipulation and the idea or someone’s suggestion. Most surrender of several districts to the experts agree that this is a classic odious candidates from the past re- form of presidential majority with gime, as well as rumors of an the pragmatic goal of concentrat- agreement with the notorious ex- ing all power in the hands of the speaker Volodymyr Lytvyn, or president. Perhaps, Poroshenko about negotiations with Serhiy Ti- well remembers what became of hipko, whose Strong Ukraine some his buddy Viktor Yushchenko when experts were inclined to see as a he lost some of the presidential potential parliamentary bulwark powers, so he decided to seize the for Poroshenko against Yatseniuk’s moment and concentrate power in People’s Front. № 14 (80) november 2014|the ukrainian week|13 Politics|International law 2014 War: A Take on Comprehensive Analysis ussia’s war of aggression against Ukraine is wars. The Yanukovych regime was Russia’s part- a result of not only the policies of the Krem- ner in its humanitarian aggression against lin imperialistic chauvinists led by Vladimir Ukraine. Controlled by Russian special services, RPutin, but of strategic miscalculations and it implemented its anti-Ukrainian humanitarian irresponsibility of Ukrainian political elites policies. Put simply, it was a wide-scale consis- throughout the years of Ukraine’s independence. tent special operation to eliminate the funda- The Constitution and laws of Ukraine place na- mental and constitutional elements of Ukrainian tional security in the scope of responsibility of, statehood, and to turn it into a denationalized first and foremost, the President. However, none and powerless part of the Russian World. Hu- of the Ukrainian presidents has had paid due at- manitarian aggression could only have been suc- tention to this issue. Moreover, each and every one cessful if Ukraine remained in Russia’s orbit of of them contributed to the destruction of the power. Therefore, Russian leadership made sure Author: Ukrainian Army. that Yanukovych opted for the non-aligned status Volodymyr Under Leonid Kuchma, the National Guard for Ukraine, and rejected the Association Agree- Vasylenko was abolished, even though it was a multifunc- ment with the EU. tional battle-ready military formation that con- The fall of the Yanukovych regime, the deter- sisted of patriotic and experienced officers, a core mination of the new Ukrainian government to re- of modern . Instead, Leo- turn to European integration, and Ukraine’s likely nid Kuchma opted for the Armed Forces that were joining of the EU and NATO in the future pushed a cut-back version of the huge fragment of the So- Russia to plan B. viet army left on the Ukrainian territory. The gov- Yet, even if Moscow was obviously aware of the ernment was cutting army spending, thus ruling poor state of the Ukrainian Army, it clearly under- out armament with modern weapons and equip- rated the aspiration of Ukrainians for freedom, ment. and their determination and ability to resist. Under Viktor Yushchenko as President, under- Sadly, Ukraine’s political and military leaders funding of the Armed Forces in the light of open failed to organize resistance to Russia’s aggression demonstrations of hostility by the Russian Federa- immediately after it began. As a result, Ukraine tion, grew to the extent where it could easily qual- has lost Crimea and control over parts of Ukraine- ify as a crime. The peak was the ruination of the Russia border territories in Donetsk and Luhansk entire sector of national security under Viktor Ya- oblasts, through which Russian mercenaries, di- nukovych. Russian special services and agents in- versionists and regular Russian Army units got filtrated into government structures of all levels into Ukraine. and contributed to the derailing of the army and Thanks to heroic dedication of the Ukrainian the navy, foreign intelligence and counterintelli- Armed Forces, the National Guard set up under gence, the Security Service of Ukraine (SBU) and the umbrella of the Interior Ministry, and volun- the National Security and Defense Council. teer battalions, big parts of Donetsk and Lu- Ukrainian top political and military leader- hansk oblasts were liberated from the aggressor. ship for years pursued an illusion of possible However, Petro Poroshenko’s reluctance to im- strategic partnership with Russia. Meanwhile, pose martial law and mobilize the entire poten- the Kremlin was consistently implementing a tial of the state and society to fend off the enemy policy to destroy Ukraine. It essentially had two was among the factors that extended the war in scenarios: plan A for gradual and peaceful de- time. struction of Ukraine, and plan B for a one-time Today, Ukrainian elites and society must real- subdual by force. The former plan was envisaged ize that Russia is waging a total war against humanitarian aggression and the use of soft Ukraine. Its ultimate goal is to destroy all things rather than hard, military power to ruin Ukrai- Ukrainian as a phenomenon and of Ukrainian nian identity, a fundamental aspect of any na- statehood as such, not to annex part of its territory tional state. When Russian elites realized that and deprive Ukraine of the right to make its own the imperialistic dream of a “United Great Rus- civilization choice. Therefore, the top priorities on sia” restored is impossible as long as a Ukrainian the national security agenda for Ukraine must in- Ukraine exists, they decided that humanitarian clude 1) the revival of the national security sector, aggression, not war and/or genocide of the Ukrai- 2) the design and implementation of a Ukraino- nian nation, should become their path to a centric humanitarian policy as a tool of resistance “Ukraine without Ukrainians”. Russia has been to the Russian humanitarian aggression, 3) imple- implementing its humanitarian aggression in mentation of programs for European and NATO several directions simultaneously, by inspiring integration with full-scale membership as the ulti- and supporting information, propaganda, lan- mate goal, and 4) the development of a consoli- guage, cultural, historiosophic and religious dated official legal stance on resistance to the Rus- 14|the ukrainian week|№ 14 (80) november 2014 International law|Politics sian aggression and overcoming of its conse- mous by the Russian Federa- quences. tion that results from Russia’s unprovoked aggres- *** sion against Ukraine and unlawful occupation of Russia’s war of aggression against Ukraine has the Crimean peninsula by the aggressor”6. been condemned by the international community As the third phase of Russia’s aggression be- and caused various sanctions against the aggres- gan, Ukraine’s Foreign Affairs Ministry outlined sor-state from the EU, NATO, Council of Europe, Ukraine’s legal stance on Russia’s war of aggres- and individual countries. Non-recognition of the sion and consequences thereof. Note No 610/22- annexation of Crimea by the international com- 110-2095 dated August 28, 2014, lists the key ele- munity based on the clauses of the UN Charter1, ments of this stance: the 1970 Declaration on Principles of Interna- «Russia’s aggression against Ukraine is a seri- tional Law2 and the 1974 Resolution on Definition ous crime against international peace and security of Aggression3, was of paramount importance. The that gives rise to international legal responsibility condemnation of forceful separation of Crimea of Russia and individual criminal responsibility of from Ukraine and non-recognition of annexation individuals involved in committing of this crime. by Russia was set out in Resolution 68/262, Terri- The Ministry of Foreign Affairs of Ukraine de- torial Integrity of Ukraine, adopted by the UN cisively demands the Russian Federation to imme- General Assembly on March 27, 2014. The Resolu- diately stop actions in violation of international tion calls upon “all States, international organiza- law, particularly the invasion of the Armed Forces tions and specialized agencies not to recognize of Russia, including heavy military equipment, on any alteration of the status of the Autonomous Re- the territory of Ukraine, and to withdraw all public of Crimea and the city of … and armed forces of Russia from the territory of to refrain from any action or dealing that might be Ukraine, to stop regular shelling of the territory of interpreted as recognizing any such altered sta- Ukraine, violations of its airspace and ground bor- tus.” ders of Ukraine and Russia, supply of arms and The new Ukrainian government expressed military equipment to mercenaries. emotional protests against Russia’s unlawful ac- Ukraine demands Russia to withdraw units of tions undertaken in February-March 2014, then it the away from the state refrained for a certain period from clear qualifica- border between Ukraine and Russia, to ensure tion thereof as acts of war aggression. It also failed proper border security regime on the Russian ter- 1 “All Members shall re- to immediately impose sanctions on Russia. ritory adjacent to the Ukraine-Russia border, to frain in their international Following the secession of Crimea, the Verk- investigate all crimes committed from the terri- relations from the threat or use of force against the hovna Rada of Ukraine adopted Declaration on tory of Russia that are listed in the present and territorial integrity or po- litical independence of the Campaign to Liber- previous notes of the any state, or in any other ate Ukraine on March Ukraine’s legal stance Ukrainian Party, and manner inconsistent with the Purposes of the 20, 2014. It stated that to punish the guilty. United Nations,” clause 4 on Russia’s responsibility of Article 2 of the UN “the Ukrainian people The Ministry of Charter states. will never recognize the for the war of aggression Foreign Affairs of annexation of an insep- Ukraine demands Rus- 2 “The territory of a State will be finalized when shall not be the object of arable part of its terri- sia to properly reas- military occupation result- ing from the use of force tory, the Autonomous the competent state sure and guarantee in contravention of the Republic of Crimea, Ukraine that the provisions of the Charter. authorities evaluate The territory of a State that was occupied by abovementioned activ- shall not be the object of acquisition by another Russia in gross viola- material and non-material ities in violation of in- State resulting from the tion of fundamental ternational law will not threat or use of force. No damage done territorial acquisition re- norms of international repeat again. sulting from the threat or use of force shall be rec- law and commonly rec- The Ministry of ognized as legal,” inter- ognized principles of neighborhood of states.” Foreign Affairs of Ukraine demands Russia pretation of the principle set forth in clause 4 of Ar- Ukraine’s Foreign Affairs Ministry, in the to provide full compensation to Ukraine for ticle 2 of the UN Charter notes to the Russian Foreign Affairs Minis- the damage inflicted by the actions of the states. try, described the Resolution of the Russian Russian Federation that are in violation of inter- 3 “No territorial acquisi- tion or special advantage Duma Federal Council dated March 1, 2014, as national law.” resulting from aggression “such, that contradicts customary and conven- Ukraine’s legal stance on Russia’s responsibil- is or shall be recognized as lawful,” clause 3 of Ar- tional norms of international law that bans ity for the war of aggression it has committed will ticle 5 of the Resolution armed invasion” and qualified them as “military be completed and finalized when the competent states. 4 intervention” . state authorities evaluate material and non-mate- 4 See, for instance, Note rial damage done, and when specific claims for No 610/22-123/1-746 On April 15, 2014, the of dated March 11, 2014; Ukraine passed Law No 1207-VII On Ensuring compensation are officially presented to the Rus- Note No 610/22-123/1- 857 dated March 18, Rights and Freedoms of Citizens on the Temporar- sian Federation in a diplomatic note of the Minis- 2014; and Note No ily Occupied Territory of Ukraine. Articles 2 and 3 try of Foreign Affairs of Ukraine to the Russian 610/22-123/1-917 dated March 25, 2014 thereof describe the occupation of the Autono- Ministry of Foreign Affairs. mous Republic of Crimea as the outcome of Rus- At the same time, a process must be launched 5 Vidomosti Verkhovnoyi 5 Rady Ukrayiny (Verkhovna sia’s war of aggression . In its statement No 1217- to hold individuals involved in the committing of Rada Newsletter), 2014 - VII On the initiative of international negotiations the crime of aggression, war crimes and crimes No 26. – p. 892. to de-escalate the situation around Ukraine dated against humanity, criminally liable. The first 6 Vidomosti Verkhovnoyi Rady Ukrayiny (Verkhovna April 16, 2014, the Verkhovna Rada confirmed steps to that end should be the opening of cases Rada Newsletter), 2014 – “non-recognition of annexation of the Autono- on such crimes or against specific individuals on No 22 – p. 866. № 14 (80) november 2014|the ukrainian week|15 Politics|International law the national level on the basis of the Criminal In this context, Ukraine’s military resistance Code of Ukraine, as well as the recognition by to the Russian Federation as aggressor-state Ukraine of mandatory jurisdiction of the Interna- should have been based on Article 51 of the UN tional Criminal Code over the situation that has Charter and Law of Ukraine No 1932-XII On De- resulted from the international crimes commit- fense of Ukraine10 dated December 6, 1991. More- ted during Russia’s war of aggression on the ter- over, Article 1 of this law defines, based on inter- ritory of Ukraine since February 27, 2014, under national law, the war of aggression. All elements of the Rome Statute. Russia’s aggression against Ukraine perfectly fit In a situation where the Russian leaders cyni- into this definition, while Article 4, Resistance to cally deny Russia’s role in the war of aggression, War of Aggression Against Ukraine, entails the sanctions against the aggressor state imposed following: both by Ukraine and part of the international “If Ukraine faces a war of aggression or a community become a tool of enforcement of Rus- threat of attack on Ukraine, the President of sia’s responsibility under international law. Nota- Ukraine shall take a decision on general or partial bly, sanctions to enforce international law regard- mobilization, imposition of martial law in Ukraine less of their intensity or nature are a procedural or parts thereof, the use of Armed Forces of tool of responsibility enforcement under interna- Ukraine and other military formations in line with tional law7. the laws of Ukraine, submits it to the Verkhovna Responsibility under international law rises Rada for adoption or approval, and submits a re- from an international crime. Respectively, sanc- quest to the Verkhovna Rada to declare the state of tions to enforce international law rise not from the war.” violation itself, but from the refusal of the subject Petro Poroshenko, elected President of that violates international law to stop its unlawful Ukraine on May 25, 2014, failed to exercise all conduct and/or to fulfill obligations envisaged by his powers and to transfer military resistance of its responsibility under Ukraine to the Russian international law. Such Ukraine should introduce aggression from the refusal is a new, sec- state of a counterter- ondary violation that the institution rorist operation into encroaches on the prin- of government the regime of resis- ciple of responsibility. tance to the war of ag- Therefore, it qualifies commissioner gression of the Rus- as a prerequisite to co- for resistance to Russian sian Federation under ercive sanctions clauses 1, 17 and 20 of against the violator. aggression and elimination Article 160 of the Con- Given the specifics of of its consequences stitution of Ukrai­ne, an international viola- and Article 4 of the tion, such as the crime of aggression, an Law On Defense of Ukraine, as well as the armed attack is a moment and ground for si- Law of Ukraine on Legal Regime Under Mar- multaneous responsibility of the aggressor- tial Law No 1647-III adopted on April 6, state under international law, and for imposition 2000. of sanctions to enforce international law. The state In line with the abovementioned law, martial that faced the armed attack and the international law entails full-scale use of the Armed Forces of community represented by other states and inter- Ukraine to resist the aggression, special mode of national organizations have the right to impose interaction between military commanders and lo- military coercion and/or other coercive sanctions cal authorities, wartime economy, the use of all 7 See Responsibility of a in political, diplomatic, economic, cultural and state resources for the needs of the army and the State for international other spheres. frontline, as well as of resources of legal entities crimes by V. Vasylenko - K., 1976. – p. 220–234; Under Article 51 of the UN Charter, every state and individuals if necessary, restrictions to ensure International law-enforc- ing sanctions by V. Vasyl- has a sovereign and undeniable right to individual civil order and security of citizens and to prevent enko – K., 1982. – p. 38– self-defense. This means that a state facing war of activities that harm wartime efforts of the state 64; Responsibility and sanctions in modern in- aggression has the right to immediately offer mili- and demoralize society. ternational law by V. Vasylenko//The Anthol- tary response to the aggressor-state. With no public explanation of his motives, ogy of Ukrainian Law Ukrainian President Petro Poroshenko never im- Analysis – K., 2005. – vol. 10. – p. 887–892. * * * posed martial law. The reasons expressed by his Unfortunately, Ukraine began its resistance to closest allies can hardly justify this decision, while 8 The Decree put into ef- fect the decision of the the Russian aggression only in its second phase, some, such as fears of usurpation of power by the National Security and De- fense Council On emer- when the then Acting President Oleksandr Tur- military and impossibility to obtain foreign loans gency measures to over- chynov signed Decree No 405/2014 dated April 14, and military and technical assistance, were simply come terrorist threat and preserve territorial integ- 2014, to launch the counterterrorist operation misleading. rity of Ukraine dated April This approach to his constitutional responsi- 13, 2014 (commonly known as anti-terrorist operation or ATO) in Eastern Ukraine involving Ukrainian bilities under massive Russian aggression pre- 9 Vidomosti Verkhovnoyi Armed Forces9. vented him from using the entire potential of the Rady (Verkhovna Rada Newsletter) – 2003. – No Legally, the ATO is based on Law of Ukraine state to protect it effectively, ruled out quick liber- 25. – p. 180. No 638-IV On Counterterrorism8 dated March 20, ation of occupied parts of Eastern Ukraine, and 10 Vidomosti Verkhovnoyi 2003. At that moment, however, Ukraine was an led to numerous deaths. Rady (Verkhovna Rada Newsletter) –1992. – No object of a planned and massive war of aggression, Inconsistency of Ukraine’s leadership in the 9. – p.106. not a sporadic terrorist attack. finding of the legal regime for the struggle against 16|the ukrainian week|№ 14 (80) november 2014 International law|Politics Russia’s war of aggression led to euphemisms, consequences would be a good comprehensive so- such as “terrorist activities of fighters”, “anti-ter- lution to this. The commissioner’s functions shall rorist operation”, “ATO participants”, “ATO zone” include: and the like to conceal the very real war of aggres- – Coordination of collection, analysis and sion waged by Russia against Ukraine, defense summing up of legal evidence of war of aggression from Russia’s war of aggression, combatants, bat- by central executive authorities of Ukraine; tle ground and more. This approach is equal to de- – Upgrade of legal framework for the enforce- nial of Russia’s war of aggression against Ukraine, ment of Russia’s responsibility under interna- puzzling for the Ukrainian society and interna- tional law as aggressor-state by amending effec- tional community, and undermining to the legal tive Cabinet of Ministers’ decrees and laws of position of Ukraine in holding the aggressor-state Ukraine, and drafting of new framework laws On liable for its actions. compensation for damage caused to Ukraine by Has all this been done to merely keep Putin Russia’s aggression and On criminal liability of in- happy? dividuals for the crime of aggression, crimes Therefore, the statement of the Ukrainian del- against humanity and war crimes committed dur- egation to the UN Security Council on August 29, ing Russia’s aggression against Ukraine; 2014, where the head said that “Ukraine reserves – Coordination of assessment of material and its right to act in accordance with Article 51 of the non-material damage caused to Ukraine by Rus- UN Charter” is hardly surprising. For almost six sia’s aggression by central executive authorities of months now, Ukraine has been essentially exercis- Ukraine; ing its sovereign right to self-defense, while its of- – Drafting of a consolidated claim of Ukraine ficial representative claimed at a top international as a country that has suffered the aggression organization that his country was only intending against Russia as the aggressor-state; to resist the aggressor. This stance of the Ukrai- – Drafting of proposals on international mea- nian government only encourages the aggressor sures to enforce Russia’s responsibility under in- that is not ceasing the war in Eastern Ukraine, ternational law as aggressor-state; and has concentrated significant forces along the – Coordination and guidelines for executive Ukrainian-Russian state border and between the authorities to obtain compensation for the losses continental Ukraine and Crimea, standing ready caused to Ukraine, its commercial entities and to expand its aggression. citizens by the act of aggression, including via ap- In addition to that, Ukraine imposed sanctions peals to courts of Ukraine, European Court of Hu- on Russia as aggressor-state and passed acts to man Rights, international courts, and foreign ensure resistance to Russian aggression and over- courts; coming of its consequences sporadically, slowly – Drafting of proposals on sanctions against and without proper institutional procedures. Russia as aggressor-state within the framework of These acts include, first and foremost, the Cab- respective international organizations, and coor- inet of Ministers’ Decree No 343 dated July 17, dination of steps to implement these proposals; 2014, On the establishment of a working group on – Cooperation with law enforcement agencies compensation of losses caused by temporary occu- to launch criminal proceedings against individu- pation of part of the territory, and Decree No 278 als and legal entities in connection to the crime of dated July 23, 2014, On the establishment of the aggression and the damage done by it; Committee to impose sanctions against individu- – Coordination of measures to ensure that for- als who support and finance terrorism in Ukraine. eign and international courts hold individuals in- Another act is Law No 4453a On Sanctions passed volved in the crime of aggression and related by the Verkhovna Rada on August 14, 2014, as well crimes liable; as the Cabinet of Ministers’ Decree No 829-p – Drafting of proposals on measures to restore dated September 11, 2014, On proposals regarding Ukraine’s sovereignty over its temporarily occu- personal special economic and other restrictive pied territories; measures. – Drafting of proposals on measures in re- The Cabinet of Ministers explained that the sponse to Russia’s hostile actions in economic and imposition of sanctions was delayed until the re- trade relations, other unfriendly actions of Russia spective law was passed. This explanation seems that are not related or are related indirectly to its hardly reasonable as international law does not aggression against Ukraine, both in bilateral rela- ban a state that has faced an armed attack to im- tions, and within respective international eco- mediately use any sanctions against the aggressor. nomic organizations; coordination of measures to The analysis of acts on sanctions demonstrates implement these proposals; and that they are not adjusted properly to back each – Interagency coordination and collaboration other, are fragmentary, and do not cover all as- with international organizations to counter anti- pects of the situation caused by Russia’s aggres- Ukrainian propaganda in Russia, and to draw a sion against Ukraine. positive image for Ukraine in international media. Given the great and legally complex set of This approach to resisting Russian aggression problems in this issue, rising from the Russian and eliminating its consequences is in line with war of aggression, the protection of Ukraine’s na- models for enforcement of international responsi- tional interests should be more consistent and bility of states that violate international law in in- based on a more solid institutional ground. The ternational practices. It will also increase the effi- institution of government commissioner for resis- ciency of protection of Ukraine’s national inter- Read full version at tance to Russian aggression and elimination of its ests. ukrainianweek.com № 14 (80) november 2014|the ukrainian week|17 Politics|Opinion Mykola Tochytskyi: “It is possible to legally prove that Russia is assisting terrorism” The Ukrainian Week speaks to Ukraine’s Permanent Representative to the Council of Europe about the prospects of freeing Ukrainian political prisoners from Russian prisons, Moscow's influence in the West and political mechanisms for countering Kermlin's aggression Interviewed by year that the Advisory Committee Alla Lazareva on the Framework Convention for the Protection of National Minori- U.W.: The autumn PACE session ties produced a report regarding concluded recently. What are its their situation in Ukraine. It was results and consequences for approved by the Committee of Ukraine? Ministers with no reservations. Eu- When it comes to the parlia- ropean experts concluded that no mentary dimension, we've seen serious problems in this area exist that the moods of our European in Ukraine. They even pointed out colleagues are changing some- that the Russian minority is pro- what, and not in the best way for tected better than others and sug- us, unfortunately. There are calls gested to bring the protection of for cooperation with the Russian other minorities to the same level. Federation, talks about the neces- But then, you see, all of a sudden in sity of dialogue… What is being February and March problems totally discarded is the argument cropped up. The European Council that Russia is not keen to establish Commissioner for Human Rights contact, even here, being a mem- visited Ukraine three times this ber of this organization. The Presi- unian photo: year. His last visit was to Crimea. dent of Ukraine has taken the de- He ascertained that it's the occu- cision to cease fire on two occa- ing trend that is being picked up by pied territories where mass human sions. But only Kyiv followed our European partners: talking rights violations take place against through with those decisions. So about violations by the Ukrainian not only Crimean-Tatars and there's not much scope for talking military during the anti-terrorist Ukrainians, but also other minori- of dialogue. Of course there were operation without checking the ties (see p. 42). So in spite of the positive developments too. The facts. Here, frankly speaking, I see sensible voices from the Baltic resolution by the Committee of States, Poland, the Northern Eu- Ministers of the Council of Europe rope, the GUAM countries, the fact acknowledging the presence of Legitimate interests is remains: those that are under vari- Russian troops on our territory something that a country ous kinds of influence of our neigh- was cited by many. The parlia- bor are starting to take its stance. I mentary delegation included it and its people can have, don't feel like I'm within right to into the discussion regarding not its neighbors criticize my colleagues, but I would Ukraine, as well as to the annual rather they talked about one of the document titled The Progress of an attempt to carry out the Russian European Council member states the PACE Monitoring Procedure. agenda of getting the world to be- failing to fulfill its obligations. Look What caused the biggest con- lieve that there is some kind of eth- at the conflicts in Nagorny Kara- cern for me during this session? nic cleansing going on in Luhansk bakh, , Abkhazia, First of all, the emergence of a and Donetsk oblasts. Crimea, Donetsk, Luhansk… who's group of deputies who declared responsible? The answer is obvi- that Moscow should be reckoned U.W.: This is what Russia did to ous. But Article 3 of the Statute of with because it has some sort of begin with, as it prepared to the Council of Europe says: con- "legitimate" interests in Ukraine. occupy Crimea… flicts must be resolved only in a Legitimate interests is something Exactly. They said that they peaceful manner. that a country and its people can came because the rights of the Rus- have, not its neighbors. That's one sian-speaking minority were sup- U.W.: You mentioned a group of thing. Secondly, there is a develop- posedly violated. But it was just last Russian supporters. If we were to 18|the ukrainian week|№ 14 (80) november 2014 Opinion|Politics outline the pro-Moscow lobby, part in the committees. The ac- gage in murder, torture, destruc- would it make approximately tions of Ms. Brasseur, as far as I tion of infrastructure, looting and half of the PACE deputies? A third am aware, are agreed with other burglary, Russia is in violation of perhaps? governing bodies, so I don’t see numerous provisions of this docu- I wouldn’t say that it’s every any negatives there. But I don’t ment. Ukraine can launch the other deputy. Perhaps we should see any results either. mechanism provided in it: start talk about this group in terms of consultations, negotiations, de- political allegiance: these are pre- U.W.: Your colleague in New mand an arbitrage hearing, ad- dominantly the far left and the so- York, the Ukraine's dress the UN International Court cialists. Even the socialists are representative in the UN Yuriy of Justice… How much time would calling for “dialogue and coopera- Serheyev admitted in the press such a process take and where it tion” with Russia completely for- that he had stopped greeting the would lead is difficult to say. Our getting what happened at the be- Russian ambassador six months state should not rule out this path, ginning of the World War II when ago. What kind of relationship although it is not the quickest, nor Poland was being divided, with the Russian Federation it is the most effective. Czechoslovakia was occupied and diplomatic mission leaders do There is another way: to ad- the rest of the countries were hop- you have? dress the Statute bodies of the ing that both the aggressors would Our communication begins Council of Europe and get a politi- stop at that. What happened af- and ends at the meetings of the cal reaction on Russia's assistance terwards is common knowledge. I Committee of Ministers. Kyiv in- to terrorism in Ukraine. This very much like the address of sists that Moscow fulfills its obli- would require a separate report by “Svoboda” delegate Oleksandr gations. We have a closed format, either the Secretary General, or Shevchenko during this session. it's not televised, but the conversa- the Parliamentary Assembly of the He noted that the “Russian tions end with Russia dismissing Council of Europe. Recognizing World” from Russia will soon all arguments, and not only those the "DNR and the "LNR" terrorist unite with the “Russian World” in coming from Ukraine. What do organizations, condemning their the rest of the European states the likes of , activity and the assistance that and the resulting group will pur- Oleh Sentsov and other Ukraini- BIO Russia provides them, addressing sue the policy of protecting the ans that became political prison- Mykola Toch- the respective international insti- Russian-speaking all over Europe. ers on the territory of the Russian ytskyi, born in tutions, including the UN Security Federation and are being prose- 1967, is a gradu- Council, with the request to take U.W.: What is the stance of the ated of the Taras cuted have at all to do with the Shevchenko Kyiv action… These are all realistic Council of Europe leadership Russian judiciary? They are our State University steps that can and must be taken regarding Russia’s membership? citizens, they were kidnapped on majoring in phi- at the European Council level. Anne Brasseur’s move to invite the Ukrainian soil and forcibly lology and trans- They are more expedient and at the Russian speaker Sergei transported to another country! lation from times more effective than the con- Naryshkin to on September On what grounds was the Mejlis French and Eng- ventional mechanisms. This 1 came as a surprise, as the latter building confiscated in Crimea lish. In 1995, he doesn't require any extraordinary ended up on the list of those and Ukrainian schools were closed graduated from efforts, all it takes is conscience barred from visiting the European along with Crimean-Tatar me- the International and some political nerve. At least Union countries due to the EU dresses? All we get in response is Relations Insti- we should be talking about it. sanctions. tute at Taras empty talk. To have actual dia- Shevchenko Uni- I’m not going to pass judg- logue clear questions need to re- versity as an in- U.W.: Let's get back to the right ment on the actions by the PACE ceive clear answers. And that is ternational law- of Nadiya Savchenko not to be leadership, as I find that inappro- not happening. yer. In 1995- kidnapped from her native land… priate. I will, however, note that 1998, he worked The Russian state is holding her this is what is referred to as “par- U.W.: What legal instruments can as third and later captive and is planning to subject liamentary diplomacy”. It’s an at- Ukraine utilize to prove that by second secretary her to psychiatric examination. tempt to influence the situation arming the "Donetsk People’s of the Ukrainian So shouldn't it be held through a colleague from Russia. Republic" and the "Luhansk Embassy to the responsible for its actions? When the Russian Federation People’s Republic" and Kingdom of Bel- Absolutely. Moreover, the kidnapping our citizens Russia gium. In 2004- joined the Council of Europe it 2005, he headed Ukrainian government addressed agreed to the condition that all is- effectively engages in terrorist the Consular Ser- the Council of Europe Secretary sues will be resolved in accordance activity or instigating acts of vice Office of the General in different forms asking, with the Statute. There is a need terrorism? Ministry of For- first of all, for help in protection of for this kind of dialogue. Whether Certainly, there are conven- eign Affairs of Nadiya Savchenko's rights and, Ms. Brasseur and other colleagues tional instruments within the Ukraine. In 2005- secondly, in investigating whether are heard when they call for dia- frameworks of the Council of Eu- 2008, Mr. Toch- torture has taken place. Currently, logue with Kremlin is another rope that enable us to raise such ytskyi worked as as far as I know, the Council of Eu- matter. And are those with whom issues. For instance the Council of Consul General in rope leadership discussed this she has negotiations heard in Europe Convention on the Preven- San Francisco with the Russian Federation offi- (United States). Kremlin? Are they listening at all? tion of Terrorism is one. By carry- In 2010, he was cials, and the committee I men- At this stage of the sanctions the ing out a policy directed at mili- appointed tioned earlier took on this case. Russian delegation is deprived of tary, material and technical, eco- Ukraine's Perma- Therefore, as soon as the response voting rights, which does not nomic and financial assistance to nent Representa- is ready and the respective proce- mean that their members cannot the "DNR and "LNR" terrorist or- tive in the Coun- dures are carried out, the public be present at the session and take ganizations, whose militants en- cil of Europe will be informed. № 14 (80) november 2014|the ukrainian week|19 Politics|Opinion Ukraine deepen the capacity to de- fend its sovereign territory. That is why Assistant Secretary Geoffrey Pyatt: Victoria Nuland and I met with the State Border Guard Service, pre- senting a large new package of as- sistance to enhance their ability to “There will be no Cold War 2.0” defend the state territory. Since the crisis began, our security sector as- sistance has grown from less than USD 10mn to USD 116mn. That in- cludes USD 46mn of assistance which was presented to President Poroshenko while he was in Wash- ington. This assistance also includes short-term and long-term elements. The short-term one includes items like night vision goggles, body ar- mor and engineering equipment presented to the border guards; and the counter-mortar radars which we will provide to enhance defence of the army against incoming indirect fire. The long-term programs we have are designed to help Ukraine build modern, democratic, NATO- standard compliant, European mili- tary institution. We have advisors who are working with the Ukrainian Ministry of Defense and General Staff to identify an agenda for re- form and modernization. We have large programs to train and assist

photo: andriy lomakin photo: the National Guard and help the Ukrainian military institutions to Interviewed ow much everything one I talked about with your publi- build capacity. We are going to work by has changed since cation in the early 2014: How to on these hard security issues. Anna Korbut, January,” is the first build a Ukraine that lives up to the But I want to emphasize that I Dmytro “Hthing Geoffrey Pyatt, aspiration that the Ukrainian peo- am convinced: the most important Krapyvenko the US Ambassador to Ukraine, ple have expressed. This aspiration long-term security challenge to says when we meet to speak to him is to live in a modern European de- Ukraine comes from the issues of again this time. Back then, we dis- mocracy. The greatest challenges to reform, corruption and moderniza- cussed sanctions against the “politi- Ukraine are still internal, not exter- tion of the state that President Po- cal regime” that was still in place, nal. Ukraine’s new government has roshenko and Premier Yatseniuk’s and the as a chance made substantial progress on the Government have committed to ad- which the West and Ukraine cannot IMF agreement, the anti-corruption dress. afford to waste. Almost ten months reform, the beginning of work on later, The Ukrainian Week constitutional reform and devolu- U.W.: According to a wide-spread speaks to Mr. Ambassador about tion of authority. These are all the opinion, America could provide the war with Russia, the US assis- topics where we are trying to help Ukraine with more extensive and tance to Ukraine, and the vital pri- and where Ukraine’s long-term diverse military assistance if Presi- orities for the new Ukrainian gov- prosperity is going to be shaped. dent Poroshenko were less prone ernment. That is longer term. to taking compromises with Vladi- In the short-term prospect, mir Putin… U.W.: The basic issue in coopera- Ukraine is facing the immediate se- I don’t share that assessment. I “The No1 concern tion between Ukraine and the US curity challenge posed by the ag- would again draw your attention to that I hear about is security, both regional and na- gression that Russia has been en- the dramatic extension of the over- from American com- panies is corruption… tional. Which priority objectives gaged in. We are convinced that the all assistance we are providing. So, the single most have already been accomplished best answer to that short-term chal- This includes the security-related important thing that in this domain, which ones are still I think the govern- lenge is the full implementation of assistance I just mentioned. There ment can do to stim- being worked on, and what is fur- the peace plan advanced by Presi- is economic and development as- ulate additional ther on the agenda? dent Poroshenko and all twelve sistance which has grown by tens American investment is to send a clear sig- Let me answer this question in points of the agreement reached in of millions of dollars. There is the nal that the days of two ways. I think that the funda- Minsk. There is no military solution USD 1bn loan guarantee that we corruption, corrupt payments and prac- mental challenge that Ukraine con- to the crisis with Russia. That said, have worked with the Congress to tices are over” fronts is not that different from the we are committed to helping approve in the record-time in 20|the ukrainian week|№ 14 (80) november 2014 Opinion|Politics Washington. And there will be if the Russian aggression continues BIO more. We are committed to sup- to escalate? GeoffreyR . Pyatt, a Senior Foreign Service officer, was sworn porting this government, Ukraine I think you are comparing ap- in on July 30, 2013 as the eighth United States Ambassador to and the Ukrainian people in build- ples and oranges here. Ukraine has Ukraine. He holds a B.A. in Political Science from the University of California, Irvine and a Master's degree in International Re- ing a modern European state. I its own unique set of circumstances. lations from Yale. Prior to joining the Foreign Service, he would advise against any sugges- This is a country that has a critical worked with The Inter-American Dialogue, a Washington- tion that we have somehow backed mass in terms of its own historical based think tank that brings together leading citizens of the down on our assistance. We are memory and experience. Your pub- Americas. He was the Economic Officer and Vice-Consul in -Te fully committed to supporting this lication writes about the question of gucigalpa, Honduras in 1990-1992 and went on to be the Po- government. That was the message Ukrainian identity probably more litical Officer in New Delhi, India from 1992-94. In 1994, he President Poroshenko heard when than anybody. That is something was appointed Staff Assistant to the Assistant Secretary of he went to the American Congress, which I think the events of the past State for Latin America. In 1995-96 he was Special Assistant to which was a remarkable event. He six months have certainly rein- the Deputy Secretary of State and from 1996-97 he was as- also heard it directly from Presi- forced. You see it in the bridges signed to the position of Director for Latin America on the Na- tional Security Council staff. From 1997 to 1999 he was Princi- dent Obama in the Oval Office. painted blue and yellow. I see it here pal Officer of the American Consulate in Lahore, Pakistan. In at my embassy where the local staff 1999-2000, he served at the American Consulate General in U.W.: At one point, the US was in- wears vyshyvanky every Friday. Hong Kong, managing the trade and export control dialogue volved in the establishment of sev- There is no doubt in my mind about with the Hong Kong Special Administrative Region of China. eral security blocks, in addition to the strength and resilience of From 2002 to 2007 Ambassador Pyatt served at the U.S. Em- NATO, such as ANZUS. Would it be Ukraine’s unity and identity. The bassy in New Delhi, India. From August 2007 until May 2010, timely to form a new military question now is where you take he was Deputy Chief of Mission at the U.S. Mission to Interna- union on the post-Soviet terrain that. What I hope and see is that tional Organizations in Vienna. From May 2010, he was Princi- with the states facing direct threat you are taking that to Europe, in- pal Deputy Assistant Secretary of the South and Central Asia of Russian aggression? cluding European values, standards Affairs Bureau. On February 27, 2013, President Obama an- nounced his intent to propose Geoffrey R. Pyatt’s candidacy I think Ukraine is in a special of justice and democracy, and prac- for the position of the US Ambassador to Ukraine. situation as regards all the post-So- tices in terms of business environ- viet space. First, it is the largest of ment, corruption and education. the table. So, the single most impor- former Soviet states, other than That’s why the Association Agree- tant thing that I think the govern- Russia. It is also in a different posi- ment is so important. ment can do to stimulate additional tion vis-à-vis Europe. Before com- American investment is to send a ing to Kyiv last August, I spent three U.W.: You have mentioned busi- clear signal that the days of corrup- years working, among other issues, ness. The US, the EU and interna- tion, corrupt payments and prac- on our relations with five countries tional financial institutions are pro- tices are over. in Central Asia. Ukraine feels very- viding significant financial assis- The package of laws passed by very different. It has an Association tance to Ukraine. However, we all the Verkhovna Rada on Tuesday Agreement with the EU. It has a realize that this assistance is to just (on October 7, the Verkhovna Rada border with four EU member- keep Ukraine afloat.S ustainable passed the “anti-corruption pack- states. It has access to international economic development takes in- age” in the first reading. It includes, maritime trade through the Black vestment.W hat should Ukraine do among other things, the establish- Sea. It has very strong human re- in the short-term prospect to at- ment of the Anti-corruption Bureau sources. And it has extraordinary tract significantA merican invest- and the implementation of the natural resources, including some ment that would also act as an ad- 2014-2017 Anti-Corruption Strat- of the best agricultural land in the ditional element of Ukraine’s secu- egy devised to put in place transpar- world, shale gas, minerals and other rity? ent public procurements, fair justice resources. Ukraine’s challenge over You are exactly right: because and a business climate that will its first two decades of indepen- Ukraine is a large country, FDI and squeeze out corruption practices – dence has been its governments. national investment is what has to Ed.). This is an important step*. Otherwise, it has enormous poten- ultimately drive its economy. Amer- But there is also an important re- tial which puts Ukraine in a very ican investors that I speak with see quirement to the reform of the strong position over the long term. all the potential in the key sectors of Prosecutor General’s Office. Most My advice would be for Ukraine to the Ukrainian economy I men- importantly of all, changes must oc- move as fast as it can to the imple- tioned earlier – in agriculture, en- cur in the practical behavior of state mentation of the Association Agree- ergy, heavy industry, metallurgy, officials. The laws are a good step ment with the EU, modernization of chemicals and others. The very forward, but practice is what really the state, and to meeting the aspira- rapid growth in Ukrainian exports matters. tion of the Ukrainian people to be- to Europe as a result of the EU’s come part of the institutional Eu- unilateral trade concessions this U.W.: The recent spy scandal rope. That puts you in a very differ- spring is a signal that there is buoy- seemed to have damaged the US- ent position compared to other ancy in this economy. The No1 con- German relations. Europe now has post-Soviet states. cern that I hear about from Ameri- a powerful Russian lobby. Could can companies is corruption. Their the cause extra U.W.: Moldova, too, shares bor- perception is that anybody who tension in the relations between ders with the EU. Yet, Moldova, comes into the Ukrainian market is the US and the EU? and Azerbaijan have terri- going to be the subject of govern- I don’t think so – exactly the op- torial problems caused by the Rus- ment officials and others with ac- posite. In fact, Ukraine has been an sian aggression. Which countries cess to power seeking to lean on important and successful example would the US rely on in this region them for payments, money under of transatlantic cooperation. We all № 14 (80) november 2014|the ukrainian week|21 Politics|Opinion *On 14 October 2014, have the same interests in terms of the Verkhovna Rada taking place. As Assistant Secretary We support the Minsk frame- Ukraine’s long-term destination as passed the “anti-cor- Nuland noted (during her visit to work and the deal that President part of the European family of na- ruption package” in Ukraine on October 5-7 – Ed.), we Poroshenko made on September the second reading. tions. We all see the same threat On that same day, are preparing to consider the roll- 19. For now, it is an agreement be- in Moscow’s violation of Ukraine’s clashes took place in back of some sanctions if Russia tween Russia, Ukraine and the front of the parlia- territorial integrity, invasion of ment building be- chooses to deescalate and to reverse OSCE. That trilateral framework Crimea, intervention in the Donbas, tween protesters and the actions that gave rise to the has worked well. That said, we are the police. The US all of which are vital threats to inter- Embassy in Kyiv is- sanctions. In doing so, we want to committed to our security partner- national order. There is not a single sued the following coordinate and cooperate intensely ship with Ukraine. Before Presi- day that passes where I’m not coor- statement in this re- with our European and interna- dent Poroshenko was sworn into gard: “…Today’s suc- dinating with all of my EU counter- cessful session was tional partners. office, he met with President parts and our core allies, and the EU an important mile- As you noted yourself, there Obama in June in Warsaw. The US stone in a reform institutionally. But it is not just here process whose aim is were different phases of sanctions has been engaged intensively with in Kyiv. It is at the levels of presi- to bring Ukraine’s in response to different phases of Russia signaling our view regard- dents – between President Obama justice and govern- the aggression. So, it is reasonable ing the importance of fulfillment of ment systems further and Chancellor Merkel or State Sec- into line with Euro- to expect that the same principle the Minsk framework. Next week, retary Kerry with the British For- pean norms… At the will apply to the relaxation. In Secretary of State Kerry will meet same time we con- eign Secretary on October 8. So, co- demn strongly the terms of the most recent and the with Russia’s Foreign Minister operation with Europe is the core acts of violence that most severe sanctions which were Lavrov in Paris, and I know that took place outside principle in our policy towards the Rada…” announced by the US and Europe Ukraine will be part of the agenda Ukraine and our approach to the at the end of September, an essen- there. But ultimately, we support work that needs to be done. tial prerequisite (to relaxation – the principle of an agreement be- Ed.) would be the full implementa- tween Russia and Ukraine to re- U.W.: One of the manifests of this tion of the Minsk agreement. As normalize their relationship. As cooperation is the setting up of President Poroshenko has pointed Vice President Biden said when he NATO bases in Eastern Europe, par- out, there are three key elements came here for the inauguration of ticularly in the Baltic States. How- where Russia has not complied Mr. Poroshenko, “We will stand ever, as the former General Secre- with the promises it has made in with you”. tary emphasized, these are tempo- that framework: the release of all rary. Does this signal that the prisoners, including political pris- U.W.: The Russian propaganda is Russian threat is not taken quite oners who are being held inside trying to revive the myths of the seriously? Is it part of the strategy? Cold War and to interpret the cur- If not, what is it? rent relations between Russia and First of all, this is a question for “Ukraine’s challenge over the US within that paradigm. They Ambassador Lute (US Permanent its first two decades of are even trying to interpret the Representative to NATO – Ed.) and conflict in Ukraine as a clash of General Breedlove. But as regards independence has been its Russian and American interests. Ukraine, I think it is very clear that governments. Otherwise, What do American diplomats all of us as members of NATO and think of these myths? What is the the transatlantic community are up- it has enormous potential explanation for Russia’s lagging holding Ukraine’s right to choose its which puts Ukraine in a behind the rest of the world in the European future. For the US, up- terminology it is using? holding Ukraine’s territorial integ- very strong position over There will be no Cold War 2.0 rity is a fundamental principle. It is the long term” because Russia is not the Soviet a principle that we have paid a sig- Union and we are not engaged in nificant price to reinforce, including Russia, like Nadiya Savchenko; the any kind of an existential confron- through sanctions that we have im- restoration of Ukraine’s sovereign tation. Perhaps the most impor- posed on Russia in response to its control over its border verified by tant reason is that Russia, unlike egregious violation of Ukrainian the OSCE, and the removal of all the , is connected to territory. Russian fighters, soldiers, merce- the global economy. We are all naries and heavy equipment from prisoners of global markets. You U.W.: How effective are sanctions Ukraine. Unfortunately, even today can see that in how the markets in response to Russian aggression? I am seeing reports in the media of have responded to Russia’s illegal When Ms. Nuland visited Kyiv re- more Russian equipment coming actions. Russia has suffered bil- cently, she said that they could be in, not going out. There is the regu- lions of dollars of capital flight. cancelled if Russia fulfills theM insk lar Russian Army there, the GRU, Growth in the Russian economy is conditions. However, what origi- mercenaries, Chechens and others, now essentially flat. Look at what’s nally gave rise to sanctions was and fighters who are coming from happening to oil prices. As tempt- Russia’s annexation of Crimea. Russia – they all need to go home. ing as it might be rhetorically to How does that affect sanctions? And that was what Russia prom- fall back on the language of the Could they escalate further from ised as part of the Minsk agree- Cold War, we are convinced that the current stage to a phase where ments. Russia and its internationally- they hurt Russia’s energy sector? connected economy should benefit First, I think it is far too early to U.W.: Do you think the Minsk from a Ukraine that is politically speak of any rolling back on sanc- agreements would be fulfilled stable, growing economically, and tions at this point. All of the behav- more quickly and effectively if the anchoring with European institu- iors that gave rise to them are still US was part to the talks? tions. 22|the ukrainian week|№ 14 (80) november 2014 Opinion|FOCUS Freedom For Others Not everyone raised under western democracy considers freedom a universal value. Especially when it comes to the freedom of those whom they are not accustomed to noticing, hearing, or understanding

he commentator was doing his best. Beginning “We don’t use the kinds of brutal tactics that one sees with a close-up image of a tattoo, he showed a in Ukraine. You cannot, for example, kick down the video clip of armed thugs wearing balaclavas door of the channel director’s office and offer a tidy Tbefore launching into a panel discussion with sum to buy out your own ‘negative package’(i.e. pur- “experts on Russian subjects”. But of course, how chase a specified period of media loyalty to your busi- could he leave them out? He did what he could to ness)”, says Sylvie, who not once reported on Ukraine prove that in Eastern Ukraine the “Ukrainian far during or after the . "French TV right and the Russian far right are killing each has other weaknesses: ideological blinders, automa- other”. tism in support of Parisian foreign policy, and lazy The technique of “equalization” that is now becoming hosts who tend to invite the same favourite pundits to a trend on French television is convenient for many. debate.” It is convenient for those who use their dislike for the Why this particular approach, these commentators, extreme right as a reason to don ideological blinders and this taboo about Ukraine on French TV? What is and dissociate themselves from the bloody events in more influential: material interests or the stereotypi- the Donbas. Equalization is likewise employed by cal ideas of the journalists and their audience? “Ex- those who live under Russia’s spell, refusing to ac- cept for the Francophone channel ProRussiaTV, knowledge the Kremlin’s imperialistic aggression. which was openly financed by Russian money, we “The only difference is the flags they’re waving,” have no solid evidence of the direct role of Russian urged another expert. “When the guns aren’t firing, capital in French TV”, states Frédéric, a lawyer who the Ukrainian fighters and separatists listen to the specializes in media issues. “State television often same music, read the same books, wear the same tat- demonstrates a relative dependence on the political Author: toos and follow identical ideologies. A pathologist sympathies of the state leadership. There is no full Alla Lazareva, from the Donetsk morgue said that their corpses can’t transparency for private television channels. If it even be told apart.” And the audience believes this. wanted, Russia could certainly buy up shares in such He then reiterates this point to calm himself and the media firms in order to indirectly influence the over- crowd: the conflict in Ukraine is purely localized and all tone of programming, but of course not the con- ideologically narrow. It’s not a European conflict. It tent itself. It’s more appropriate to speak not about doesn’t concern us. censorship or corruption, but rather a subtle encour- The viewer is led to believe that these “fraternal na- agement of self-censorship. Indeed, a large number of tions”, Russia and Ukraine, have so much in com- politicians and TV producers think that getting into mon! “The Cyrillic alphabet, Orthodoxy, a common an open conflict with Russia would not be beneficial Soviet past - all these elements are passed from com- to France.” mentator to commenta- tor, from one ‘expert’ to The technique of And we mustn’t forget another”, explains a law- whose purposes televi- yer who has travelled “equalization” that is now sion serves, and about around Eastern Europe becoming a trend on French the preferences, inter- on various missions with ests, and priorities of the Council of Europe television is convenient for these viewers whom even over the last fifteen years. many the television producers “The French react to this openly call “narrow- information as follows: it is about two parts of minded plankton?” “French paternalistic society one whole, which are temporarily quarrelling but has done everything it can to destroy people’s abil- will eventually reconcile.” ity to empathize”, stated one broadcaster col- Whether subconsciously or due to the influence of league. “Not only empathy toward distant peoples who certain interests, through laziness or narrow-minded are dying for their freedom, but even toward their own cowardice, it would be convenient for many in France citizens. Everything is entrusted to the state, and even if Ukraine were within Russia’s sphere of influence. It a function like solidarity ceases to be the responsibility is initially difficult to say how many of the commenta- of the individual”. tors are getting their identical slogans about Ukraine: Children of freedom do not always grow up to be con- “a territory without a history”, “a fascist junta in scious of its value. They take their comfort for power in Kyiv”, and “following America’s orders". It is granted, refusing to believe that it could come to an especially difficult to determine precisely how these end just as suddenly as the lives of those who walked repetitive pro-Russian messages are being dissemi- down Kyiv’s Instytutska St. one sinister February nated for use in mass-media. morning. № 14 (80) november 2014|the ukrainian week|23 focus|Friends of the enemy The West: Between Interests and Values If the West wants to develop freely, it cannot allow the dominance of Russia, which, backward and parasitic, dictates its ineffective rules to the rest of the world

Author: employ its traditional and insidi- Until the skillfully play on the contradictions Ihor Losev beginning of ous “byzantine” diplomacy (al- World War II, between the idea and commercial though it relies more on brutal the attitude interests. It is a great temptation ... he Kremlin’s aggression force than skill), but also of the of Western However, such tactics are not against Ukraine and the col- fundamental objective duality of democratic unique to Moscow; the democratic lapse of the post-war system Western civilization. For the West, powers toward West has been tempted by other Tof international relations, in the market is the basis of the econ- Nazi Germany was anti-democratic regimes before. particular the absolute ineffective- omy, and democracy is the basis of relatively tolerant, One may recall that until the begin- ness of the 1994 Budapest Memo- policy. If democracy represents the and in 1936 they ning of World War II, the attitude randum and the West’s confusion West’s values, then the market willingly and of Western democratic powers to- regarding “post-Weimar” Russia stands for its interests. The two are enthusiastically ward Nazi Germany was relatively attended Hitler's brought to life a discussion about in constant conflict with each Olympics tolerant (and this despite the why Moscow, with its authoritar- other, yet one does not always win gloomy Nuremberg racial laws!), ian-totalitarian system, has such a over the other. There are many fac- and in 1936 they willingly and en- huge impact on the democratic tors that ensure the triumph of val- thusiastically attended Hitler's world. Why, indeed, is Russia able ues over interests or vice versa. The Olympics ... to dictate its agenda to the West, West is essentially torn between The following principle contin- while enthusiastically ignoring all these contradictory realities. ues to drive the West: “Business at norms of intergovernmental coex- One living example of this is any price! Business in spite of ev- istence? the controversy regarding France’s erything!” This confirms the classi- It is a question not only of the sale of Mistral aircraft carriers to cal Marxist thesis that for a large Kremlin’s painstaking efforts to Russia. Moscow has learned to enough profit, the bourgeois is 24|the ukrainian week|№ 14 (80) november 2014 Friends of the enemy|focus ready to sell even the rope with USSR and were unpopular in the ready concluded agreements on which he will be hanged. United States. pre-orders, and the transfer of The US and Europe actively Dmitriy Khmyelnitskiy writes: these orders to Europe...” Kagan- collaborated with the Bolshevik So- “In 1931, upon returning to the US, ovich backed the leader, stating: “It viet Union in the 1920s and 30s, Kahn employee William H. Brass was found that 80-90% of orders despite the fact that the latter made shared his impressions about the for Chelyabinsk can be placed in no secret of its intentions toward work in the USSR with a Detroit England.” The Americans were the bourgeois world. Little must be newspaper reporter. He described slowly displaced in favor of the Eu- said of extreme communists; even the black market, the inability to ropeans, and in 1935 Soviet plants the relatively liberal Khrushchev, leave the country, the wild judi- employed 1,719 Germans, 871 Aus- during his visit to the United States ciary, the secret police and the trians, and only 308 Americans. in the late 1950s gently promised housing problems. And about what Interestingly, before Hitler came to the Americans, “We will bury you!” the Americans feared most - the power, the number of German spe- Significantly, the United States es- transformation of civilian industry cialists employed at Soviet enter- tablished diplomatic relations with into military industry. Even more prises was much lower. the Soviet Union during the Ho- serious was Brass’ assumption that It is difficult to disagree with lodomor (Stalin’s forced famine) in Kahn’s contract with the Soviet Khmyelnitskiy when he states, Ukraine. Union included a stipulation for “There is a very high probability During the Soviet Union’s first the promotion of communism in that if Kahn had not gotten along Five Year Plan, industrialization the United States. Albert Kahn im- with Stalin in 1929 and had not de- was doomed to end in failure (es- mediately delivered a rebuttal in signed the world’s largest tank fac- pecially after the abolition of the the press, but doubts about his tories, Stalin might not have had NEP) without comprehensive help firm’s activities in the Soviet Union the clout nor abilitysign his 1939 from Western companies, espe- could not be dispelled.” pact with Hitler in order to jointly cially in the military-industrial In 1930, the Soviet government start a war for the re-division of the complex. In their book, Russian proposed to Kahn a package of or- world.” And Albert Kahn’s com- historians Dyakov and Bushuyeva ders for the construction of indus- pany still existsto this day... describe how the Soviet Union trial enterprises in the Soviet What prevails today in Western helped Germany to rebuild its mili- Union amounting to USD 2 billion, society: values or interests? Of tary-industrial complex following which in the early 2000s was course, this is a very important and World War I, stating that the “Nazi equivalent to USD 220 billion painful issue for Ukrainians. The sword was forged in the USSR.” USD. question is not academic, but a Meanwhile, the communist sword Where did the Soviets get the matter of life or death, not only for was forged by democratic Western money for such fantastically expen- Ukraine, but at least for the whole countries... sive projects? That was the cost of of Central and Eastern Europe. Until the early 1930s, there was the lives of the millions of Ukrai- Today, using the most rational no tractor-building or tank-build- nian peasants who died in 1932- approach, it can be stated that the ing industry in the Soviet Union. 1933 when theirgrain was requisi- interests and values of the West do After just 12 years, the USSR al- tioned for export. Stalin admitted ready had 24,000 domestically- in a letter to Molotov: “Mikoyan re- Moscow has learned produced tanks in service. It is im- ports that the harvests are increas- possible to understand this phe- ing andwe are exporting 1-1.5 mil- to skillfully play on nomenon without acknowledging lion poods [16,400– 24,600 the contradictions the role of American specialist Al- tonnes]. This is not enough. We bert Kahn in this organizational must increase the daily norm to ex- between the idea and miracle. According to historian port at least 3.4 million poods commercial interests Dmitriy Khmyelnitskiy, Kahn’s [55,760 tonnes]. Otherwise, we firm “…designed 521 facilities be- risk being left without our new coincide, because if the Kremlin is tween 1929 and 1932 (other metallurgical and engineering fac- allowed to destroy the world order, sources state 571). These are fore- tories (Automobile plant, Chely- then it will not be the rule of law most tractor (i.e. tank) factories in abinsk plant, etc.)... In other words, that dominates, nor economic cal- Stalingrad, Chelyabinsk, Kharkiv, we must violently force the export culations, but brutal force and ar- and Tomsk; Automobile factories of grain.” rogance that rapidly transform life in Chelyabinsk, Moscow, Stalin- Interestingly, even then, as into total chaos and endless war, grad, Nizhny Novgorod, and Sa- now, Moscow masterfully exploited making it ultimately impossible to mara; and machine plants in rivalries between Western coun- create a world free of nuclear weap- Kaluga, Novosibirsk, and Upper tries and firms, including competi- ons. In the absence of any reliable Salda; a rolling mill in Moscow and tion between the US and Europe. guarantee of safety provided by in- foundries in Chelyabinsk, Yekater- Stalin wrote to Kaganovich about ternational agreements, every state inburg, Nizhny Novgorod, this in summer 1931: “Because of that wants to survive will be forced Kolomna, Lyubertsy, Magni- the difficulties with currency and to create its own balance of fear to togorsk, Sormovo, and Stalin- unacceptable credit terms in Amer- ward off potential aggressors. grad...” ica, I oppose any further orders for Political and economic anach- Kahn’s activities encompassed America. I proposea ban on new ronism cannot be a compulsory almost the entire Soviet military orders for America, the end of all model for humanity. Today, the industry. For many years, these negotiations on new orders, and West has to protect its values in or- facts are carefully concealed in the possibly the discontinuation of al- der to protect its interests. № 14 (80) november 2014|the ukrainian week|25 focus|Friends of the enemy All Quiet on the European Front In Western Europe there is fairly widespread indifference to the fighting in Ukraine or the growing tensions in the Baltic States. They do not see it as a threat to their own way of life Author: West stand off after 1945, few “We will bury you,” the Soviet Michael Binyon, governments in the West are leader Khrushchev once memo- UK ready to acknowledge that the rably declared. It was this threat challenge presented today by to subvert the governments of hen the Berlin Wall Moscow is just as great as it was Western Europe that prompted came down, Western before. Why is it that they no lon- the formation of NATO, a defen- Europe was gripped ger see Russia as an enemy? How sive alliance to halt Moscow’s Wby a rush of optimism has Moscow been able to neu- military and ideological expan- and hope. The communist sys- tralise opposition to its expan- sionism. tem, it appeared, had been de- sionist aims? Does Russia now That threat appears to many feated with barely a shot being Mikhail have a pro-Russia lobby with an people to have disappeared. Prokhorov, fired. Across Eastern Europe na- Russian effective voice in all Western cap- Communism is no longer a pow- tions threw off the Soviet yoke, businessman itals? erful political force nor does it which had kept their countries and candidate The main change between have any global attraction for the tied to the Soviet Union since the in the 2012 Western attitudes today and developing world. It is clear that end of World War II. Western de- presidential those that prevailed during the although Russia is still a nuclear mocracy had triumphed, and the elections, Cold War is that Russia is no lon- power with formidable armed divisions of Europe could be poses with ger seen as an ideological enemy. forces, it is nowhere near as healed. The Cold War, many be- London Mayor Communism presented not only strong militarily as America and lieved, was over. It was, as the Boris Johnson a military threat to the Western its allies. The Soviet army is no historian Francis Fukuyama promoting the world: it was seen as an ideologi- longer poised to sweep across the Russian festival memorably declared, “the end of Maslenitsa, the cal challenge which intended one plains of northern Germany. An history”. Butter Week, in day to defeat capitalism and East-West nuclear war now Thirty years later, that 2011 change the Western way of life. seems all but unthinkable. dream now looks sadly naïve. The divisions of Europe have not healed. Long stifled local ani- mosities re-emerged, provoking wars and conflicts across the Balkans. Russia was still an un- predictable and unsettled neigh- bour that had not relinquished its dreams of power. And with President Putin determined to reassert Moscow’s influence across the lands that had once formed part of the Soviet Union, the past ten years have seen growing tensions between East and West, leading to brief bat- tles over Georgia and, far more devastatingly, armed civil con- flict in Ukraine that has claimed more than 3,000 lives. Has the Cold War returned? But although far more people have been killed in conflict in Eu- rope since the Wall came down than during the 40-year East- reuters phото: 26|the ukrainian week|№ 14 (80) november 2014 Friends of the enemy|focus There is, of course, growing rope “from the Atlantic to the actually been counter-produc- concern and anger at Putin’s in- Urals” as naïve and unrealistic. It tive. Russian propaganda is as creasingly strident anti-Western seemed prompted more by his crude and mendacious as it was rhetoric and Moscow’s refusal to quest for French glory and inde- during Soviet times, and Russian co-operate with the West to en- pendence than by a realistic as- denials of responsibility over the sure global peace. In the Middle sessment of Soviet communism. Malaysian airline disaster or its East, at the United Nations and But even during the Cold War military presence in eastern especially in international emer- Britain was influenced by a large Ukraine have angered western gencies, Putin now seems deter- admiration for Russia’s wartime governments and public opinion. mined to oppose Western initia- alliance in fighting the Nazis and Indeed, the more Moscow at- tives and thwart Western poli- by Russian culture. For Britain, tempts to “lobby” the West, the cies. Russian music, literature, ballet more suspicions of Putin’s inten- But many governments re- and theatre have been central to tions grow. fuse to see this as the start of a British cultural life. Chekhov is There are still a few former new Cold War. Partly this is be- almost seen as second to Shake- communists who support Russia cause public opinion – at least in speare, just as Shakespeare is a out of old-fashioned ideological Western Europe, but not in most strong influence on Russian cul- sympathy. But their numbers are former Warsaw Pact countries – ture. The Bolshoi ballet first small, they are mostly elderly no longer fears a Russian inva- came to London in 1956, and its and they have almost no influ- sion. Partly also it is because reputation has never dimmed ence on the politics of European Western voters are not prepared (even though some recent tours governments, even in countries to spend more on defence to meet have been seen as only medio- such as Italy with large parties of the new challenge. The “peace cre). Russian achievements – former communists. dividend” has already been spent. from Sputnik to physics research But the difference in atti- Taxpayers do not want to pay – are widely acknowledged. tudes between Western Europe more now to build up their de- There is a statue of Gagarin in and the new members of the Eu- fences again. And for those coun- London. ropean Union – especially Po- tries that are not Russia’s imme- As a result, London was seen diate neighbours, Islamist ex- as a welcoming city to many Rus- Active Russian attempts tremism is now seen as a bigger sians after the fall of commu- threat than Russian aggression. nism, and there has been a huge to influence Western The second important change influx of Russian visitors and im- thinking have actually been is the unification of Germany. Ger- migrants. It is estimated there mans remain deeply aware that are more than 200,000 Russians counter-productive. this was possible only because now living in the London area – Russian propaganda is Gorbachev refused to prop up East far more than in Berlin or New Germany any longer. And for that York – and Russians send their as crude and mendacious there is still a huge reservoir of children to British schools and as it was during Soviet gratitude in Germany to Russia – universities in huge numbers. coupled with the hope that this Russian business has also made times gratitude can be translated into a London an important western positive political friendship that base. British banks finance Rus- land and the Baltic states – is will bring stability and, Germans sian business. Russian compa- striking. The suspicion of Russia hope, lucrative business between nies are floated on the London in former communist states is Germany and Russia. German stock exchange. And Britain, es- very strong; in Western Europe guilt at the destruction the Nazis pecially Shell and BP, is one of there is fairly widespread indif- inflicted on Russia is still a big, but the largest Western investors in ference to the fighting in Ukraine unspoken, factor in German politi- Russia. And finally, significantly, or the growing tensions in the cal thinking. an entire younger generation of Baltic States. Instead, most West- Germany is the biggest and Russians now speaks English. ern Europeans see Russia as a richest NATO member after Ease of communication has never country with a weakening econ- America, and Berlin’s attitudes been so strong. omy, massive corruption and a are important in influencing The growth of global trade growing tendency to authoritari- NATO’s response to the Russian and especially Russia’s impor- anism. They do not see it as a actions in Ukraine. But even for a tance as a market for Western threat to their own way of life. country such as Britain, attitudes goods therefore makes Western And the United States is far more have changed. governments reluctant to cut focused now on the Middle East The British have never had a these new links or impose sweep- and the rivalry with China than it close relationship with Russia, ing sanctions that would damage is on Moscow. Few Western poli- either in war or peace – unlike both sides. Moscow does not ticians are pro-Putin apologists France or Germany. For most of need a special lobby group to – a man widely despised – or are the Cold War, Britain was among warn the West against cutting promoting Russia’s politics. And the most hawkish of the Nato ties: that warning usually comes despite the warnings of the members in opposing commu- from Western businessmen NATO leadership, most Western nism and standing up to Russia. themselves. voters see Russia as a danger to Britain privately ridiculed Presi- Active Russian attempts to its neighbours, rather than a dent de Gaulle’s vision of a Eu- influence Western thinking have threat to world peace. № 14 (80) november 2014|the ukrainian week|27 focus| Friends of the enemy Lobbymocracy Ukraine does not have adequate support in the West, either in political circles, or among experts. The situation with the mass media and civil society is slightly better

Author: he Western diplomatic hori- roso pro-Ukrainian would be an Alla Lazareva, zon looks overcast. Within a exaggeration, but it is impossible France short period of time, some to deny the obvious strength of his Tpoliticians that supported character, sense of fairness and Ukraine have taken a back seat, ability to stand up for his own po- making way for indifferent prag- sition. He will be remembered as a matists or officials. The party of self-sufficient politician, not prone the former Minister of Foreign Af- to falling under someone else’s, fairs of Sweden, Carl Bildt, lost the particularly Moscow’s, influence latest election, so one of Kyiv’s during his term in office as Presi- best advocates has now left the big dent of the European Commis- political arena. The same applies sion. to Radoslaw Sikorski, Poland’s How will his successor, Jean- former Minister of Foreign Af- Claude Juncker, manifest himself? to participate in television debates fairs. “People are always more im- We can only wait and see. The on Ukrainian issues. Either the portant than institutions”, main thing is for the position of blatantly pro-Kremlin Jacques Sa- Philippe de Suremain, the former this politician regarding Russia pir and Dmitri de Kochko, or French Ambassador in Ukraine, not to coincide too closely with the other, completely weird people...” often stresses. And this really is views his countrywoman, Anne Why has this been happening the case. As far as priorities are Brasseur, President of the Council since the start of military action in concerned, Barack Obama is not of Europe’s Parliamentary Assem- Ukraine? There are several dozen at all like Reagan, Cameron or bly. She continues negotiations in consultant and communication Thatcher, and the political conse- different forms with Sergey companies in Paris, which, among quences of the changes in the Naryshkin, the Speaker of the other things, sell “new faces” to TV leading offices of influential coun- Russian Duma, and on September channels. Very often, the faces are tries and institutions are always 1, even invited him to visit Paris, not that new, but those who are al- different for Ukraine. in defiance of EU sanctions, which ready part of the mix. According to The conservative NATO Sec- ban Naryshkin’s entry onto Schen- The Ukrainian Week’s sources, a retary General Anders Fogh Ras- gen territory. Why? Because Mrs. good third of them have perma- mussen was replaced by social- Brasser is convinced that dialogue nent clients from either Russia or democrat Jens Stoltenberg. “The is better than a boycott. French pro-Russian political and change in tone towards Russia is The flexibility, if not complai- business circles. “Lobbyists have a already perceptible,” commented sance, among the leaders of inter- far greater influence on television an international observer who national institutions allows Mos- content than is apparent from out- works in Brussels. “Rasmussen cow to lobby its interests under side,” says a colleague, who has expressed things clearly, in mili- very comfortable political condi- worked on one of the French TV tary fashion, while Stoltenberg tions. The Kremlin has an impres- channels for 10 years. “For exam- has a velvet, flexible and diplo- sive group of Western politicians ple, the former Minister of For- matic manner of communica- and a whole army of lobbyists at eign Affairs, Hubert Védrine owns tion”. Already under its new its disposal - from experts in unof- a small consultancy with the clien- leader, NATO has made a state- ficial negotiations to newly-baked tele in Moscow, among others. ment about the fact that the situ- “experts on Ukrainian issues”, This is why he can often be heard ation in Ukraine is critical and most of whom probably did not on radio and TV.” could worsen. But Kyiv needs give Ukraine the slightest thought It is not easy to prove that the support on a completely different just six months ago. theses of Védrine’s speeches on level. NATO is hesitating, pro- “How is this possible?” asks television are directly dictated by crastinates more as time goes by friend and political journalist, Ré- the Kremlin, but he is obviously and limits itself to declarations. gis Genté. “I know three political expressing Moscow’s views. “Rus- In fact, it is already reacting to scientists in Paris, who really have sia’s intervention in events in Moscow’s serial hysterics. something to say about Ukraine: Ukraine is not its fault, Moscow The situation in the European Alexandra Goujon, Yulia Shukan, has been provoked by America”, Commission is no better. To call Annie Daubenton... But com- he tells a stunned audience. A pro- the conservative José Manuel Bar- pletely different people are invited fessional diplomat, Védrine must 28|the ukrainian week|№ 14 (80) november 2014 Friends of the enemy|focus discussing the “legitimacy of Rus- has been established with the far sian interests in Ukraine”, “intol- right in recent times – not only erable American meddling” and with politicians from the Front other techniques, directed to- National, but also with journalists, wards legitimization of Moscow’s who went to work on the French aggression. language channel, ProRussia TV “We are not going to start ar- and organisations that were regis- guing with Russia over such a tri- tered as public ones, such as Unité fling matter as Crimea?” feigning Continentale, which is openly en- naivety, says Jacques Attali, who listing mercenaries to fight on the is regarded as the political father Russian side in the Donbas. The of socialist President François Kremlin is skilfully playing on the Hollande. “Allowing Ukraine cus- anti-American sentiments of both toms privileges – is to disregard left and right extremists, and is democratic standards”, declares also not forgetting to opportunely Marine Le Pen, President of Front employ some of them. National. “It was MP Aymeric Another reason – the inertia of Chauprade, who was an ‘observer’ the consumer social strata, which at the ‘referendum’ in Crimea, is not based on Russia’s informa- who fed her information both tional aggression. It is not so much about ‘the criminal country, becoming an active collaborator, Ukraine, which is wiping out its as it is distancing itself from the own peaceable citizens’, and about irritating, controversial subject. the ‘Donetsk schoolchildren who “You wonder why the press pro- are dying during their lessons vides so much information about from bombing by the Ukrainian the Islamic State every day, but al- army’”, prompts a colleague work- most mothing about Ukraine?”, know that in civil law – not to Allowing ing in Brussels. “I saw them to- says Frédéric, a lecturer in politi- Ukraine mention international law, every customs gether immediately before debates cal sciences at one of Paris’s uni- active entity is responsible for its privileges – is on the Association Agreement versities. “Is it because France has own actions. A country cannot be to disregard with Ukraine. He was dictating the largest Muslim community in “offended” – feeling is a subjective democratic something to her”. Europe? Not at all! It’s self-de- category in the field of psychology. standards, According to sociologists, Ma- fence. The reflex of not thinking But Hubert Védrine and Jacques declares rine Le Pen is almost certain to about things that frighten us. Geo- Sapir are never tired of talking Marine Le Pen, make it to the second round of the graphically, Ukraine is much about the “humiliation” experi- President of the next presidential election. If the closer than Iraq or Syria. So it’s enced by Russia from the unful- Front National French political class does not better, figuratively speaking, to filled promise allegedly given to and Putin’s show the world a fundamentally bury your head in a pillow and staunch ally Mikhail Gorbachev on the non-ex- new, vivid, charismatic leader by pretend there is no war there”. pansion of NATO. 2017, Le Pen could well become France is one of those coun- Meanwhile, no one has ever the next President of France. Peo- tries where it’s not particularly seen a document containing such ple don’t like to write about this difficult for foreign political lob- promises. “This was a verbal inevitability in the press, but this byist structures to operate: there agreement”, former far left econo- is what it looks like right now. This is very little threat of active oppo- mist Jacques Sapir, who is cur- does not bode well for Ukraine. sition from the amorphous, laid- rently a consultant for the far right back society. The only effective Front National, says to brush off Flexibility, if not barrier is possibly the caste struc- sceptics. He seems to disregard ture of the French leadership, the fact that current international complaisance, of the leaders where prestigious diplomas from law has never recognised uncon- of international institutions a handful of French universities firmed talks as basic components play the role that once belonged of geopolitics. Sapir himself, who allows Moscow to lobby to a noble title. But everything is does not speak Ukrainian and its interests in a very relative. “Democracy is trans- does not hide his sympathies to- forming into a lobbymocracy”, wards Joseph Stalin, is invited to comfortable political jokes Frédéric. Or is he? “You of- participate in television debates environment ten get the impression that even on Ukraine just about every week. when the EU is supporting It would be interesting to know Why are Moscow’s arguments Ukraine, economic interests, par- why. taking root so well in western, par- ticularly energy ones, actually France’s political class is mak- ticularly French, soil? There are have more influence”, admits Re- ing the same clichés and theses as several reasons. The first and ob- becca Harms, a German MP in those promoted by the “experts”, vious one is ideological. It was in the European Parliament. These who are actually the lobbyists. Ex- France that Russia, and previously are the values. What you name pertly using democratic rhetoric, the USSR, built a diversified sys- this society - post-industrial, the far right, far left, radical Eu- tem of influence, relying on spe- post-democratic, an information rosceptics and a small group of cific people with far left political civilisation or a lobbymocracy – moderate politicians, are actively convictions. Similar collaboration is a matter of taste. № 14 (80) november 2014|the ukrainian week|29 focus|Opinion An Imagined Dialogue on Several Clichés and Misperceptions

n the wake of the Russian- nections in their country to the rights of other individuals whom Ukrainian war disguised as an anonymity and forsakenness of they wish to strip of their unique- internal conflict in Eastern their existence in a foreign coun- ness, individuality, and dignity. IUkraine, several clichés and try they move to find a job and to misperceptions of reality wide- support their families go unno- Some say spread in the West have reap- ticed. is something like a 21st cen- peared. In this light, the following A story of adultery of a movie tury Napoleon. Do you agree questions could and should quite star moves and drives crazy mil- with that? As we know, Napoleon legitimately be raised. I will try to lions of consumers of global news, was instrumental in introducing formulate them in such a way so yet nobody really reacts to the dan- modern and progressive legisla- the reader can feel a trajectory of ger of a possible world war in tion in France and elsewhere, thought. Everything is based on Ukraine or sufferings of Ukrainians which allowed him to grant citi- Author: my own fairly recent interviews only because it happens in No zenship to the Jews in France and Leonidas and discussions on Ukraine and Man’s Land – somewhere in East- Italy. Putting aside his militarism Donskis, Europe. ern Europe which is tantamount to and imperialism, Napoleon played Lithuania the middle of nowhere. It was only a role in the saga of Europe’s mod- What makes us more re- after the Malaysian aircraft was ernization. Vladimir Putin cannot sponsive to the deaths or mis- downed by terrorists supported by be credited for anything like this. fortunes caused by war than Russia that Western Europe, Aus- He is a sinister and dangerous fig- the others that are closer to tralia, and the USA started react- ure, and also a threat to Europe our reality, like the ones ing. We listen to moral panic-mon- and civilized humanity. If the caused by urban violence or gers and inciters of collective or world will not stop him, he may poverty? Two things: fear of a even global hysterias, yet we refuse lead us to the nuclear apocalypse. possible chain reaction that would to listen to ordinary citizens or He is a political gangster and a hit us ourselves, and anxiety of sound people who would lower war criminal with nuclear weap- physical destruction which is a their voices instead of yelling at us ons. In addition, he is backed and tragic lot of boundary regions and – this happens because we choose supported by forces in Russia endemically unsafe places like to believe figures and statistics which are impossible to describe Eastern Europe or the Middle whether financial or political. Tell otherwise than overtly fascist. East. We are tempted to think that me how much population you have This is why Napoleon does not in- death caused by urban violence or or what is the GDP in your country vite any comparison with Putin. poverty would bypass us some- if you want to win my attention – Things are much worse than that. how, yet a big war, once waged this is the logic behind our political I am not a pessimist, though. The somewhere nearby, is easy to start and moral reasoning nowadays. world is fed up with dictators and and almost impossible to end – Zygmunt Bauman has spoken thugs, and it is unlikely that Putin therefore, we fear that death is on about the phenomenon of adiapho- would have a strong footing or the way to us. Never ask for whom rization of our consciousness which would win respect in the world. the bell tolls... means the abandoning of the ethi- He will be isolated, condemned, cal dimension in our choices and and relegated to the margins of Are we, the modern soci- actions. I would define this phe- history. However, this does not ety, losing compassion? Yes, nomenon as the withdrawal-and- absolve us from the necessity to we undoubtedly are. We are return mechanism which facilitates watch out and fight evil. swamped and washed out by the leaving and abandoning our sensi- unmanageable wave of informa- bilities with the possibility to re- What do you think about tion via the internet and social turn to them, as soon as evil ac- Obama’s policy about ISIS? networks, yet we are constantly tions committed to those whom we Obama is president of peace, behind all major and genuine dra- consider a collective nobody or rather than war. In fact, he is re- mas of humanity. They happen nonpersons or nonentity are fin- luctant to go to war. However, he just before our eyes. Hence, the ished, and we are back to those is forced to react to evil forces. I misery of young and precarious whose first and last names we am afraid he does not have many people – jobless and devoid of any know. options at hand. Sometimes it is brighter future only due to their crucial to strike on time when evil being part of the new global pre- Who are modern barbar- is on the rise, instead of waiting cariat or austeriat. We are not in a ians? People devoid of sensitivity until thousands or millions of peo- position to freely choose our time to those who are different from ple are killed. But we cannot erad- – wars and crises never ask if we them. Or human individuals aban- icate all forms of evil. Hence our want them. Silent tragedies of mil- doning and denying their own indi- curse to be selective and tragically lions of people who move from vidual responsibility for their inconsistent. For nobody fights or relative visibility and social con- choices and actions as well as for the tolerates evil in its entirety. 30|the ukrainian week|№ 14 (80) november 2014 Opinion|neighbours Russia's Gangster Regime – The Real Story

Author: Edward Lucas, UK

y biggest journalistic regret is that I did reaucracy and business in St. Petersburg, Russia’s not dig deeper into Vladimir Putin’s past. I second city and then seized power in the entire was the Economist’s Moscow bureau chief country. The process began even before the Soviet Mfrom 1998 to 2002 and, like my col- collapse, with the mysterious disappearance to the leagues, failed to find out anything very interesting West of billions of dollars of KGB and Communist about the quiet grey bureaucrat from St Petersburg Party funds. who so surprisingly became prime minister and then Those looted funds provided the financial cushion president. during the years when hardliners were out of power. Nobody seemed to have much to say about him. He And it was a springboard for their return. The Putin seemed a featureless, Teflon-coated character – no- cabal’s revanchist rule has led to the crushing of inde- table mainly for loyalty to his bosses. That was frus- pendent media, meaningful opposition and all public trating, but it did explain neatly why the Yeltsin fam- institutions, cloaked with aggression towards Russia’s ily, desperate to avoid impeachment, had turned to neighbours – and all in pursuit of monumental self- him. enrichment. If anyone had told us that Russia’s new leader was The outlines of this story have long been suspected. in truth a sinister and ruthless character, who ha- But Mrs. Dawisha -- in a way that I would not risk bitually consorted with gangsters, looted public fi- doing myself – names the members of the inner cir- nances, intimidated opponents and corrupted for- cle, and tracks minutely how and why they have eigners, we would have been alarmed – and better prospered. A distinctive feature of her book is its informed – about the country’s future. We might meticulousness. Every fraudulent deal, every mur- have also tried rather harder to understand why so der, every abuse of power is annotated from pub- many of the people best lished sources. In some placed to talk about Mr. Western governments long cases she uses material Putin’s past were dead, that has mysteriously terrified, or richly re- ago knew that Russia was disappeared inside Rus- warded. ruled by a thuggish sia, but which she has So I am particularly tracked down else- pleased that Karen kleptocracy, but were where. Again and again Dawisha, an American strangely unwilling to act she unpicks the system- academic, has succeeded atic use of deceit and in- where I and others on that knowledge timidation with which failed, in drawing a de- the regime has covered tailed – and dismaying – portrait of Mr. Putin’s its debauchery, theft and murder. rise to power and riches. The account she gives Mrs. Dawisha does not have all the answers. It of colossal corruption, abuse of power and thug- is hard to know how much of the events of the gery is so devastating that her original publisher, past 25 years reflect planning, and how much were Cambridge University Press, declined to publish the due to good luck. Nor is it clear how a strong Rus- book for fear of being sued for libel. sia is compatible with Putinism’s endemic, debili- I wrote about her book’s plight in the Economist, and tating corruption, especially if money starts get- as a result of the furore which resulted, she found a ting tight. publisher. But for now it is easily available only in the Most puzzlingly, she shows that Western govern- United States (where it is protected by the First ments long ago knew that Russia was ruled by a Amendment). thuggish kleptocracy, but were strangely unwilling The book tells what I believe is the true story of to act on that knowledge. Thanks to Mrs. Dawisha’s modern Russia – the way in which a monstrous hy- bravery and determination, we now have no excuse brid of ex-KGB types and gangsters took over bu- for ignorance. № 14 (80) november 2014|the ukrainian week|31 neighbours|Russia ing that signal because he feels that not all of them will be loyal under certain circumstances. Karen Dawisha: U.W.: Can the West actually reach Vladimir Putin’s money and thus affect his policies or weaken his grip “Russia’s objective is to on power? Putin has power not because of his money but because he has access increase the split between to anything he wants from the Rus- sians. He can call up troops, build residences, and have a good life. In Europe and the US” addition to that, he has money. But it was simply a part of his motivation for coming to power in the first place, The Ukrainian Week speaks to the author of the not necessarily a tool that keeps him in power. newly published book Putin’s Kleptocracy: Who However, when the sanctions Owns Russia? about the loyalty of people around were first put into force, the US Trea- sury Department posted a list of all the Kremlin leader, the role of Ukraine in his staying people who were going to be sanc- tioned on their website. Gennadiy in power, and about Russian money in Europe Timchenko was one of them. In its description of the reasons, the US Interviewed by Treasury Department said that “Pu- Anna Korbut tin has investments in Gunvor and may have access to Gunvor funds”, Timchenko’s oil trading company. The day before Gunvor and Tim- chenko were sanctioned, he sold his shares to his Swedish partner. Did he sell Putin’s shares, too? We don’t know. But we know from the US Government that he has shares. So far, we don’t know what is happen- *On October 8, the ing to Putin’s own money. I will say, Russian Duma however, that in terms of the Rus- passed the bill to sian money – money from the oli- amend the Federal Law on the garchs and the cabal around Putin – Compensation for given that so much of it is invested in violation of right to a trial within overseas accounts, like the British reasonable Virgin Islands, Lichtenstein, Switzer- timeframe or right to enforcement of land, Luxemburg, those particular verdict within places have not really been hit by the reasonable collapse of their banking sector. I timeframe (the law on compensation for therefore suppose that the money is sanctions, or the very well hidden. Much of the money ‘Rotenberg law’ as the opposition that is flowing out of those places is named it after not going back to Russia, but is head- Russian oligarch ing to Hong Kong or Singapore. That Arkadiy Rotenberg whose villas and is less safe than Europe but more U.W.: In his grip on power, That’s the key question. I sup- apartments were safe than Russia. arrested in Italy in Vladimir Putin apparently relies pose that his agreeing to the contin- late September as a on a close circle of people who ued detention of Vladimir Yevtush- result of European U.W.: This money is one of the have accompanied him on his and American convenient factors that helpR ussian enkov (owner of Bashneft, an oil sanctions) in the first path to power and wealth from company, and a number of other reading by 233 votes influence politics in European the beginning. Russia’s current profitable assets – Ed.) and the in- to 202 against, countries. Is it just money, gas and including Russia’s policy is probably threatening troduction of the Kremlin-sponsored Minister of Economic investment of the wealthyR ussians their assets and further new bill that would allow sanctioned Development. The into luxury real estate, schools and predominant prospects. Do you think that they people to be compensated by the sei- majority of those goods in the West that make them will stay with Putin till the end zure of Western assets, otherwise who supported the welcome guests almost anywhere and support him in whatever he bill are members of in Europe, or could there be any known as the “Rottenberg bill”*, are Yedinaya Rossiya, does, or will they rather leave both signals from Vladimir Putin United Russia, the deeper networks that subtly him as soon as they see that his that he will take care of this close ruling party headed promote Russia’s interests in by Dmitri Medvedev power begins to crumble for group around him first, and every- that sponsored the European business, economy and some reason? one else after that. He may be send- bill politics? 32|the ukrainian week|№ 14 (80) november 2014 Russia|neighbours We must assume that all states, position of the martial law in Po- Bio One is Serbia where Vladimir especially the powerful ones, have land. Representatives of the Karen Dawisha Putin participates in a big military is Walter E. Havi- intelligence services. They are all Deutsche Bank were there. I was ghurst Professor parade (Serbian authorities held the successful in increasing the influence shocked – and that explains why I of Political Sci- parade celebrating the liberation of of their countries through intelli- no longer am today – by the extent ence in the De- Belgrade from German occupiers gence methods. Russia is not alone to which their only concern was to partment of Po- four days before the originally in this. This is a whole layer of activ- get their debts from Poland to be re- litical Science at planned date to adjust to Putin’s ity and everybody knows that it ex- paid. They did not care about labour Miami University schedule – Ed.) on his way to the ists. There are rules to govern this. suppression and they would have in Oxford, and Milan summit, and probably tries to The recent Russian abduction of Es- supported martial law just to get the the Director of have a free trade agreement with it ton Kohver, an Estonian intelligence profit. the University’s so that the smuggling routes that service officer, is shocking because it When you see the response of Havighurst Cen- Slobodan Milosevic had established ter for Russian broke those rules. the City of London or Luxemburg to and Post-Soviet can be reawakened, and all the Euro- In the Soviet era, the Soviets what’s going on in Russia – they will Studies. Mrs. pean goods could go to Russia di- themselves were the major funders support any sanctions against indi- Dawisha received rectly through Serbia. Bulgaria of the so-called “peace movement”. viduals, but not against institutions her Ph.D. from would be right behind, followed by Their objective was then the same that are flooding their money into the London Hungary. 40% of real estate in Mon- that it is now: to increase the split be- Western banks. They want the com- School of Eco- tenegro is owned by the Russians. In tween Europe and the US. Russia mission for the money in their banks. nomics in 1975, fact, it is any country that is has an objective interest in making And they have benefitted from this and has taught 100%-dependent on Russian fuels. sure that Europe does not follow the ever since the 1990s, in all the years at a number of Of the prime members of the leadership of the US. You can see it in which we pretend that Russia was British and Amer- EU, Luxemburg’s banking sector is ican universities. in their editorials, read it in Putin’s a democracy. As a result, after over She is the author important for Russia, and Russia is speeches. 20 years of these investments, there of five books, important for them. Lichtenstein On the open side, we see people is no rule of law in Russia, so oli- many articles that depends upon soft banking reg- like Marine Le Pen, for example. garchs and people in power can loot and works on So- ulation for the livelihood of its popu- Most of the right-wing parties in Eu- the economy. All this money is flow- viet and East Eu- lation. Britain and Germany resist rope have a pro-Putin stance. This is ing to Europe where there is rule of ropean internal Russia a little stronger. In France, because they fundamentally agree law that protects it. Therefore, hav- and external pol- you have Mistrals. Italy, with Berlus- with Russia on two things: anti- ing more transparent banking proce- itics, the rela- coni out, is standing up to Russia, Americanism and anti-immigrant dures in Russia and being able to see tions between and that is a good move that is very sentiments that have racism as their that this money does not come from the Soviet Union much tied to the desire of the post- and the USA, core. laundering illegal gains is not in our and between the Berlusconi politicians to show that Another concern is that the Rus- interests, because that will mean re- USSR and the they are not in the pockets of the sians are funding the anti-fracking ducing profits. Middle East, as Kremlin. movement in Europe. They certainly well as on pro- I think that David Cameron and don’t want to see fracking developing U.W.: Could all these factors cesses in South- Angela Merkel are in a tough bind: in Ukraine. eventually lead to an EU that is ern Europe and they have to bring the EU along with So, I would be surprised if there fragmented while Russia is growing Central Asia them. So, they clearly hear the desire weren’t any of their money flowing stronger? of the Baltic States and Poland to be in support of these kinds of activities. One thing that is clear to me is very tough on Russia. But they There is so much going on publicly that, if Ukraine succeeds in having a should go together in that, otherwise that it’s only just to think that a lot number of clean parliamentary and the EU will be undermined as an or- more is going on underneath the car- presidential elections, and imple- ganization. pet. ments robust anti-corruption laws, that will probably act as a great sup- U.W.: Who is the US’s most reliable U.W.: So, the objective has been to port for civil society in Russia. Right ally againstR ussia’s aggression in increase the split between the US now, the Russians do not see them- Europe? and Europe, and probably within selves in a position where they are It is clearly Britain. Now, that the the EU itself. Still, European actually willing to become Europe- US is leading the coalition in Syria policymakers and business ans. If Ukraine can do these things communities have all this time been that will show people in Russia what trying to befriend Russia and make possibilities they could have. Which “Putin has power not it more democratic that way, and is precisely why the Russian govern- because of his money rushing there with their investment ment is doing everything it can to and technology. With all the prevent this. For Ukraine, that is ex- but because he has access immediate benefits of theR ussian tremely promising, and extremely to anything he wants from market, they couldn’t but see what burdensome. the country has gradually been The EU and NATO, however, the Russians” turning into…if they did not care for will stay united. They will be the last the risks Russia posed to its thing that crumbles, even if Ukraine and Iraq, it is very dependent on neighbours politically, why didn’t has to be sacrificed for that. Sadly, support in it. So, it is not going to they care about risks it would but I think that is the reality. push Europe too hard on Ukraine – ultimately pose to them? which is not great for Ukraine – if it I remember an interesting con- U.W.: Which European countries can get what it wants, i.e. jets sent to ference in the summer of 1981, dur- would you list as the most fight the ISIS, in Syria and Iraq, from ing Solidarity Days, prior to the im- vulnerable to Russian influence? its European allies. № 14 (80) november 2014|the ukrainian week|33 neighbours|Russia The Bear, Master of its Taiga Lair Overall, Russians support the Kremlin’s path towards self-isolation and confrontation with the West, ignoring the fact that they don’t have a realistic chance of becoming another pole of influence in the world

Author: internal and external challenges that food prices have increased Oleksandr Kramar amidst socio-economic degrada- significantly as a result of the tion and the loss of international trade confrontation with the inding itself subject to the ru- competitiveness, will make it West. Of the poorest category of inous impact of international more like North Korea. respondents, nearly a third noted sanctions and reaping the that they would have to give up harvest of confrontation with A fortress under siege some of the goods they habitually F United Russia’s the West, Russia is heading to fur- Yevgeniy Fiodorov “We do not intend to discuss cer- bought. However, 68% support ther self-isolation and returning to sponsored a bill tain criteria for lifting sanctions. the continuation of the current totalitarian practices of its Soviet allowing Whoever imposed them has to aggressive policy, regardless of appropriation of past. The world-view gulf between foreign assets cancel them”, , Rus- sanctions. Importantly, 73% of the majority of Russians and the located in Russia as sia’s Foreign Minister recently de- the poorest, who have suffered compensation to world is becoming ever more dis- Russian companies clared. Highly-placed Russian of- most from the price increase on tinct and threatens gradually driv- and individuals hit by ficials have publicly stated several foodstuffs, take this view. At the ing Russia towards a USSR 2.0 Western sanctions times that they are not going to same time, Russians are aware of model. change their policy on post-Soviet the objective inability of the The further development of territory, including on Ukraine, country to exist without the im- this threatening trend will de- under pressure from the USA or ports of a range of products from pend not only on the ability of the West, demonstrating their other countries. This is why most Russian society to finally organise readiness for a systematic and of them are reluctant to see Rus- itself and act against Putin’s re- long-term confrontation with the sian “countersanctions” on elec- gime or the readiness of part of world. trical appliances and medicines the more liberal elite for a coup extend. d’état, but also on the anticipated In addition to the information reformatting of the world energy China is already taking or trade isolation, Russians are al- market. If the price ratio of basic advantage of Russia’s ready preparing for the gradual commodities exported by Russia, construction of a full-scale iron such as oil, oil products and gas, self-isolation, having curtain in the form of the restric- to imported consumer and in- obtained the opportunity tion of foreign travel. According to vestment goods in the coming a public opinion poll by Levada years is much worse than in pre- to impose its version of Center, 49% of citizens are con- vious years, Russia can expect a unequal cooperation on it vinced that the government will sharp fall in living standards, a continue to restrict travelling surge of domestic reaction and abroad. Only 28% of respondents repression, censorship, even the Although such a confronta- support this move now. 9% feel dilution of the already insignifi- tion is disastrous for Russia itself that such measures are necessary cant middle class that had an op- and has already had a negative and say that they should pertain to portunity to establish itself in the impact on the living standards of all Russians without exception, previous decades, as well as the most people, the Russians, clev- not just individual categories, progressive militarization of the erly manipulated by state propa- such as top officials or functionar- economy and life. ganda, demonstrate their readi- ies. Moreover, support for the ban This time, however, Russia Vladimir Putin signed ness to support the path towards on travelling to the most “hostile” will lag behind the West in terms a law restricting the self-isolation and confrontation countries is significantly higher. stake of foreigners in technologically and economically the Russian media at with the outside world for the This is most often the view of peo- much farther than even the USSR 20%. Foreigners sake of the illusion of imperial ple with little education and a low did at its time. Instead, nuclear cannot be founders “greatness”. income, as well as the residents of of mass media in arms, excessive militarisation, Russia. This According to a public opinion small towns and villages; in other personality cult and total zombifi- threatens most poll conducted in late September words, the very sections of the media that have not cation of the population to ensure been under the by the Levada Center, more than population that the Putin regime the protection of the regime from Kremlin’s control half of Russian citizens indicated is counting on the most. 34|the ukrainian week|№ 14 (80) november 2014 At the same time, the attack on Fortress under siege organisations, disloyal to the in a ion Kremlin, which in the new reality are already a huge irritant to the The response of Russians to the que ion: regime, has intensified. More spe- cifically, Russia’s Minister of Jus- Good Bad Hard to say tice recently applied to the Su- preme Court with the initiative to How do you feel about the USA? close the Memorial Human Rights

71 73 Center, which recently recognised Nadiya Savchenko, a Ukrainian

44 air force pilot captured by Russian 43 Special Forces as a political pris- oner. The history of this organisa- 18 17 13 11 10 tion reaches back to the times of January 2014 May 2014 September 2014 perestroika. It was established by Soviet dissidents, including the Nobel prize-winner Andrei Sakha- How do you feel about the EU? rov. So the hearing of this case, 68 which is due to take place on No- 60 51 vember 13, will obviously be im- portant from the point of view of 34 25 Russia’s return to pre-perestroika 15 15 19 13 times. January 2014 May 2014 September 2014 Who benefits from this? China is already taking advantage How do you feel about Ukraine? of Russia’s self-isolation, having obtained the opportunity to im- 66 pose its version of unequal coop- 55 49 eration on it, such as work on the Power of Siberia project. In actual 35 32 26 fact, relations between Russia 17 17 9 and China are increasing flowing January 2014 May 2014 September 2014 in a direction where Russia is in a losing position. This is a result of the structure of Russian exports, and the stark gap between human and economic potentials of the Is there any point in Russia riving two countries. China’s economy to become a member of the EU has overtaken America to the top in the future? position in the world by GDP 64 (PPP), worth in excess of USD 56 10tn, i.e. at least four times more 43 than that of Russia. The only 32 23 22 25 21 nominal parity that remains be- 16 tween them – the status of per- January 2014 May 2014 September 2014 manent members of the UN Secu- rity Council on the international Yes No arena and almost the same mili- Hard to say tary potential because of Russia’s nuclear arms superiority.

Source: Levada Center Without changes in its foreign course, Russia will then gradually transform into a huge raw materi- A federal law will shortly als appendage of China, totally de- toughen the regulation of foreign pendent on Chinese investments travel of officials and MPs. At the and credit resources under the same time, the Russian govern- West’s sanctions. Moreover, China ment is actively shutting down will gradually even come to act as foreign contact for young people, an intermediary for Russia in ob- particularly the Future Leaders taining leading world technology. Exchange (FLEX) student ex- Under such conditions, the fact change programme for 2015– that Russia is lagging behind the 2016. More than 8,000 Russian West and even China in the area of children have participated in this technology, will become more and programme since 1993. more obvious. economics|Banks Volodymyr Lavrenchuk: Even experts with extensive international experience do not take it upon themselves to discuss the current market exchange rate”

Interviewed by nancial institution cannot be lower is significantly better than during Lyubomyr Shavalyuk than the amount of capital, and in the 2008–2009 crisis. We de- fact, should be significantly higher. signed our possible scenarios based n his interview for The Ukrai- But we do not hide the fact that on the behaviour of clients in those nian Week, Volodymyr Lavren- we have operated with losses this particular years, but fortunately, chuk, the Chairman of the Board year. This is caused by the devalua- we made a mistake, because the Iof Raiffeisen Bank Aval, sheds tion of the hryvnia. Since the de- quality of our loan portfolio is bet- some light on the future of Ukrai- preciation of a national currency is ter today that we imagined, even at nian banks. not a permanent process, accord- the backdrop of the decline in pro- ing to our forecasts, we should duction, military action, etc. Cli- U.W.: A year or two ago, rumours once more become profitable with ents have become more responsi- had it that RaiffeisenB ank time and ultimately, we should ble, something that we are very International Group was planning once more receive a net income of pleased to see. to sell its bank in Ukraine and EUR 100mn and more. As far as the behaviour of indi- leave. The Austrians appear to All of the largest banks are cur- vidual depositors is concerned, in have changed their mind after the rently undergoing, or have already my view, the current actions of the EuroMaidan. Why? undergone stress tests. It is now NBU and the government, partic- Raiffeisen Bank Aval has never clear that many need not simply in- ularly regarding stress tests, are a been put up for sale. The market vestors, but the replenishment of signal to people that they have the has indeed shown interest in buy- lost capital. So the merger and ac- banking system under control. ing it, and RBA’s shareholders have quisition market has temporarily The closure of unprofitable finan- considered proposals. The interest ground to a halt. lasted until November 2013 and negotiations were in the initial U.W.: Have RBA’s clients changed stages. But at this point, the pros- in the last six to twelve months? pects for the development of Of course, a modern bank stud- Ukraine’s economy and its finan- ies the behaviour of the people it cial sector changed. The situation services. This is a basic thing, with the buyers has also changed. which is vitally important to us. We Requirements to them could be use market research provided by different now, taking into account GfK, we have our own analysis and new circumstances, particularly in the analytical data of the Raiffeisen the international reputation of po- Group on the markets of 15 coun- tential investors, caused by recent tries. events. What does client behaviour de- pend on? In my view, the motive U.W.: Over the years, many “believe – don’t believe, trust – financial institutions have don’t trust” stands aside all other changed hands. What is the factors. “Restoring trust in the situation on the merger and bank” – this is a motto that practic- acquisition market right now? Has ing bankers, not romantics, have the value of banks changed? come up with. The inflow and out- In my view, it is incredibly dif- flow of deposits often depends on ficult to determine a bank’s value the reputation of a specific bank, on a rapidly changing market, and rather than the interest rate or the with an equally rapidly changing results of a parliamentary election. profitability. For example, in 2013, Look at the behaviour of our our bank’s net income was over clients today – and your initial big EUR 100mn. Compared to its capi- surprise will be that as far as its tal, the level its profitability is quite loan servicing obligations are con- high for a market such as Ukraine’s. cerned, corporate business (corpo- It is thus clear that the price of a fi- rations, enterprises, organisations) 36|the ukrainian week|№ 14 (80) november 2014 Banks|economics cial institutions is unequivocally no reserves had already been cre- chance that the sector will fulfil its the right and responsible decision. ated in time and in full. functions and in time, restore its The system of deposit compensa- profitability. tion to individual clients of such U.W.: According to the IMF banks by the State Deposit Guar- programme, the NBU was U.W.: In addition to the measures antee Fund works: I’m talking supposed to conduct a stress test implemented by the bank itself, about this with certainty, as RBA of tier two banks by September. what can be done on the level of is the agent in such transactions. Do we know the results yet? the state, legislation and Many complex situations are regu- According to our calculations, regulation, for the system to gain lated, which is evidence of respon- the additional capitalisation re- more long-term stability? sibility in the banking sector. At quired for large financial institu- In my view, the banking system some point, this quantity will tions will be about as much as for itself does not require particular transform into quality at some the biggest ones. Given that 15 first reform. It has been reformed quite point and people will calm down. tier banks make up 70% of the en- well, since it was built on the basis They will return their deposits to tire system, and the next 20 – just of international models and stan- banks (in September, the outflow 15% of the sector, the amount nec- dards. of deposits from the system de- essary to replenish their capital is At the same time, the banking creased to UAH 4.2bn, largely due probably UAH 12–14bn. sector and the financial sector as a to the increase in the UAH depos- whole are largely dependent on the its of legal entities; private indi- U.W.: A stress test will probably be quality of state finances. If not viduals continue to withdraw conducted of medium-sized and qualitative and if the deficit of Naf- funds from their accounts – Ed.). small banks now, many of which tohaz constitutes UAH 113bn, as are considered to have serious was recently announced, there is U.W.: The stress tests of the 15 problems. What can we expect no point in counting on low inter- largest banks in Ukraine showed from this test? est rates. So I think that the balanc- that 9 of them have to increase To be perfectly honest, I don’t ing of the government’s fiscal pol- their capital by UAH 56bn or 3,8% know much about these financial icy currently requires greater at- of GDP. What are the parameters institutions. Their share does not tention. It is necessary to curb of the testing and is it possible to have a crucial impact on the sector, spending, restructure various pro- attract the necessary money so we generally do not really focus duction sectors and improve fiscal quickly? on them during analysis evalua- balance overall. In my view, this is a substan- tions. Today, the NBU is taking tial amount. It could be difficult quite a few insolvent banks off the U.W.: In its monetary policy, the to find it in the short term, but market, predominantly small and NBU is currently using this depends on the actual intent medium-sized ones. In spite of administrative leverage that is of the investors. The owners of their size, some of them are harm- more rigid than during the term of banks are different, which is why ing the market. Serhiy Arbuzov, Chairman under the final result is stipulated by in- Viktor Yanukovych. Is there a dividual work with each of them. U.W.: Many of today’s problems suitable alternative to the NBU’s Today, the NBU confirms that af- are a result of the previous crisis. policy? ter negotiations with investors, What strategic measures should I’m all for discussing alterna- the prospect for such investment be taken to make the banking tives, until a final decision is ap- is realistic. At the same time, the sector more stable and liquid? proved. No one knows whether a Bio regulator announced that bank- After that crisis, Raiffeisen Volodymyr more liberal foreign monetary pol- ers could be given a specific time- Bank Aval and, as far as I know, Lavrenchuk is icy would have had a better effect. frame for this. other financial institutions, signif- one of the best- In my view, such an approach is The stress tests researched two icantly changed their lending pol- known Ukrainian right and we are doing everything basic factors. First of all, they ex- icy. We became more cautious in bankers and possible to stabilise the foreign cur- amined how the devaluation of the the issuance of loans, reined in Board Chairman rency market with this set of tools. hryvnia would affect the banks’ fi- many ambitious projects towards of the Board of But, as I have already said, once in- nancial position since each has realistic goals under collateral, etc. Raiffeisen Bank solvent banks have been removed loans and deposits in foreign cur- From January 2010 until 2014, Aval since 2005. from the sector, there will no lon- rencies in the portfolio. Re-evalua- problem loans did not exceed 1.5% Born in 1957 in ger be any need for administrative Kyiv, Mr. Lavren- tion of those changes both assets of the RBA’s loan portfolio (com- chuk graduated measures. and liabilities, but, since capital is pared to the pre-crisis 30% – Ed.). from Kyiv Eco- According to many experts, hryvnia-denominated, its share af- So obviously, banks were also bet- nomic Institute there is no point in fitting the cur- ter the devaluation of the hryvnia ter armed with protection policy with a major in rent exchange rate to some micro- shrinks on the bank’s balance and with the financial cushion for economy. He has economic theory. It could be UAH sheet. Secondly, a range of enter- the current crisis. The clientele worked in the 12.95 to USD 1, and it could as well prises will not pay their debts, be- has become different, and loans banking sector be different. But even experts with cause the proceeds they receive are more resilient. Without this, since 1982 and extensive international experience may not be sufficient to cover the the current crisis would have hit has held man- do not dare discuss the current debts growing along with the dol- the financial sector much harder. agement posi- market exchange rate. So, creating tions at Oschad- lar. In other words, some money A devaluation of 70% is a huge bank (the Sav- overall trust and calming those should be reserved for these two challenge. But all of the above- ings Bank of rocking the dollar price is the cor- factors, or even for the losses in- mentioned steps helped to survive Ukraine) and rect path, which is the one we are phото: U nian phото: curred in the 2008-2009 crisis if this test, so I feel there is every UkrInBank following. № 14 (80) november 2014|the ukrainian week|37 economics|Oil price Many Winners, a Few Bad Losers A lower price will boost the world economy and harm some unpleasant regimes—but there are risks

the false expectation of rising prices. Geopolitical shocks can sur- prise on the upside as well as the down. Saudi Arabia may well de- cide to resume its self-appointed post as swing producer and cut output to push prices up once more. With war stalking Iraq, Libya still fragile and Nigeria prey to insurgency, supply is vulnera- ble to chaotic forces. But many of the causes of lower prices have staying power. The economic malaise weighing down on demand is not about to lift, despite the tonic of cheaper oil. Conservation, spurred by high prices and green regulation, is more like a ratchet than a piece of elastic. The average new car consumes 25% less petrol per mile than ten years ago. Some observers think the rich world has reached “peak car”, and that motoring is in long-term decline. Even if they are wrong, and lower

phото: reuters phото: prices encourage people to drive more, energy-saving ideas will he collapse of the Soviet sequences. For some governments not suddenly be uninvented. Union in 1991 had many it would be a rare opportunity; for Much of the extra supply is causes. None was as basic others, a threat. baked in, too. Most oil invest- Tas the fall in the price of oil, Predicting oil prices is a its main export, by two-thirds in mug’s game (we speak from ex- real terms between 1980 and perience). The fall of the past Things could get 1986. By the same token, the 14- three months is partly the result uncomfortable for those year rule of Vladimir Putin, heir of unexpected—and maybe to what remained, has been bol- short-lived—developments. Who governments that have stered by a threefold rise in the would have guessed that chaotic, used the windfall revenues oil price. war-torn Libya would somehow Now the oil price is falling be pumping 40% more oil at the from higher prices to run again. Since June, it has dropped end of September than it had aggressive foreign policies. from about USD 115 for a barrel of just a month earlier? Saudi Ara- Brent crude to USD 85 or so—a re- bia’s decision to boost output to The most vulnerable are duction of roughly a quarter. If protect its market share and Venezuela, Iran and Russia prices settle at today’s level, the hurt American shale producers bill for oil consumers will be about and see off new developments in USD 1 trillion a year lower. That the Arctic was also a surprise. ment takes years of planning would be a shot in the arm for a Perhaps the fall was exaggerated and, after a certain point, cannot stagnating world economy. It by hedge-fund investors dump- easily be turned off. The fracking would also have big political con- ing oil they had been holding in revolution is also likely to rage 38|the ukrainian week|№ 14 (80) november 2014 on. Since the start of 2010 the United States, the main winner, Brent crude oil price has increased its output by more USD per barrel than 3m barrels per day to 8.5m 120 b/d. Shale oil is relatively expen- 100 sive, because it comes from many small, short-lived wells. Analysts 80 claim that a third of wells lose N J F M A M J J A S O money below $80 a barrel, so 2014 shale-oil production will adjust, helping put a floor under the price. But the floor will sag. put pressure on its Shia rival. Break-even points are falling. In Whatever the motivation, the past price squeezes, oilmen con- falling price is certainly having founded the experts by finding that effect. unimagined savings. This time Compared with these two, will be no different. Russia can bide its time. A falling For governments in consuming currency means that the rouble countries the price fall offers some value of oil sales has dropped less budgetary breathing-room. Fuel than its dollar value, cushioning subsidies hog scandalous amounts tax revenues and limiting the of money in many developing coun- budget deficit. The Kremlin can tries—20% of public spending in draw on money it has saved in re- Indonesia and 14% in India (includ- serve funds, though these are ing fertiliser and food). Lower smaller than they were a few prices give governments the oppor- years ago and it had already bud- tunity to spend the money more geted to run them down. Russia productively or return it to the tax- can probably cope with today’s payers. This week India led the way prices for 18 months to two years, by announcing an end to diesel sub- but the money will eventually sidies. Others should follow Naren- run out. Mr. Putin’s military dra Modi’s lead. modernisation, which has ab- sorbed 20% of public spending, The axis of diesel looks like an extravagance. Sanc- For those governments that have tions are stifling the economy used the windfall revenues from and making it hard to borrow. higher prices to run aggressive for- Poorer Russians will be less able eign policies, by contrast, things to afford imported food and con- could get uncomfortable. The most sumer goods. If the oil price stays vulnerable are Venezuela, Iran and where it is, it will foster discon- Russia. tent. The first to crack could be Democrats and liberals Venezuela, home to the anti- should welcome the curb the oil American “Bolivarian revolution”, price imposes on countries like which the late Hugo Chávez tried Iran, Venezuela and Russia. But to export around his region. Ven- there is also an increased risk of ezuela’s budget is based on oil at instability. Iran’s relatively out- USD 120 a barrel. Even before the ward-looking president, Hassan price fall it was struggling to pay Rouhani, was elected to improve its debts. Foreign-exchange re- living standards. If the economy serves are dwindling, inflation is sinks, it could strengthen the rampant and Venezuelans are en- hand of his hardline opponents. during shortages of everyday Similarly, a default in Venezuela goods such as flour and toilet pa- could have dire consequences not per. just for Venezuelans but also for Iran is also in a tricky posi- the Caribbean countries that tion. It needs oil at about USD have come to depend on Bolivar- 140 a barrel to balance a profli- ian aid. And Mr. Putin, deprived gate budget padded with the ex- of economic legitimacy, could travagant spending schemes of well plunge deeper into the xeno- its former president, Mahmoud phobic nationalism that has fu- Ahmedinejad. Sanctions de- elled his campaign in Ukraine. signed to curb its nuclear pro- Cheaper oil is welcome, but it is gramme make it especially vul- not trouble-free. nerable. Some claim that Sunni Saudi Arabia is conspiring with © 2014 The Economist Newspaper America to use the oil price to Limited. All rights reserved economics|European experience mainly joining the EU, does not necessarily make sense economi- cally. If we go back to the theory of Friedrich List and how the EU Erik Reinert: worked up until the 1990s, I am al- most afraid of saying this, but eco- nomically it would make more “Convince the EU that sense to integrate with a more simi- lar economy, like Russia’s. How- ever, that doesn’t make sense politi- cally, I can see that. I think Ukraine Ukraine now is like Berlin should use that dilemma to negoti- ate a better deal with the EU. The important thing is that you in the Cold War era” nationally recognize your dilemma and use that as a leverage point Interviewed he Ukrainian Week speaks outward migration is the safety when negotiating with the EU. You by to Erik S. Reinert, a Norwe- mechanism – if the trade balance know the important sectors of the Olha gian economist and author of does not work and the country is de- Ukrainian economy. They should be Vorozhbyt THow Rich Countries Got Rich industrialized, people move out. protected and the entry into free and Why Poor Countries Stay Take Ukraine as relates to the EU - trade should be gradual while at the Poor, about his vision of Ukraine’s you still have a chance, because you same time allowing you to get cheap economic development, ways to are not a member. It’s much more capital to upgrade technologically. overcome poverty, threats of de-in- difficult for Latvia. Ukraine still has The dilemma in the periphery is of- dustrialization, and about good some possibilities for negotiating. ten that labor is very cheap and cap- models for Ukraine to follow. Then, I think, you should say you ital is very expensive. So, you need a want to be treated like Spain in the development bank which can actu- U.W.: In your book, you wrote 1980s. This means slow integration ally supply capital at the low rate. based on historic examples, how in a way that does not cause de-in- Here you can learn from Brazil. rich countries got rich thanks to dustrializion. protectionism and desire to be U.W.: You speak of the EU’s de- equal with others, rather than U.W.: Over 20% of Ukraine’s industrialized periphery.W hat through free trade. One of your exports go to Russia (26.3% in about Estonia and Poland, arguments is that a free trade area 2013), which makes it an successful new EU member-states? should be created with equal important trading partner. Yet, it Estonia is relatively successful. partners. Today, the EU Free Trade has turned into a threat in every It is very successful comparing to Area comprises very different sense given the current situation. Latvia and Lithuania, but there is countries by economic How should Ukraine further deal lots of poverty still if you move out- development – look at Latvia or with trade with Russia? side of Tallinn. Poland is successful Bulgaria. What should they do It is important that Ukraine for three reasons and probably the once they’re in the rich club? recognizes the big dilemma it is fac- most important one is that it kept I think there is a very old rule. ing: what makes sense politically, its family farms. In 1956 there was a The person who expressed it the best was the German economist Friedrich List. He said that opening free trade between countries that are equal will help them both grow. I think the best example is Norway and Sweden which are both small countries. Norway was a latecomer and was protecting its industry for many reasons. When they reached the same level, they opened free trade and became each other’s best customers. That was even so in spite of both being very small countries. But speaking about the EU en- largement in 2004, the most ad- vanced industrial countries there, for instance Hungary and Czech Re- public, which had already started integrating with the West before the fall of Berlin Wall, did reasonably well in the process. On the other hand, there were the countries, inte- grated but de-industrialized. The problem with these countries is that 40|the ukrainian week|№ 14 (80) november 2014 European experience|economics big uprising in Hungary, but there Traditionally, all countries have Bio and the US and the West under- was also an uprising in Poland when followed this experience-based Erik Steenfeldt stood that the way to do this was to Reinert was born the country refused to collectivize economy in order to get rich. Emu- in Oslo, studied make people so rich that commu- agriculture. As a result, it ended up lation was the name of the process. economics in the nism was no longer an attraction. with lots of small family-owned For example, when England tried to University of St. So, the Marshall plan was extended farms that have an important task emulate Holland, it tried to copy it Gallen in Switzer- like a belt round the communist in the economy. When things are and protect its industry for hun- land, got his countries – from Norway to West- good the children go to the city, go dreds of years. When the country MBA from Har- ern Europe, to Spain, Portugal, Tur- abroad and work, and when there is gets rich, economic theories typi- vard University, key, Taiwan, Korea, all the way up no job in the city or abroad they can cally change. You start believing and Ph.D. in eco- to Japan. Latin America was al- come home and live on the farm. that it is the market which did the nomics from Cor- lowed to industrialize in the same This means one more pair of hands job. Friedrich List coined the term nell University. way, under protection. With this He has worked in in the potato field. This may not be “kicking away the ladder” , which more than 50 plan and with the policies to indus- terribly efficient, but socially it means that when the countries be- countries, both trialize it the belt of rich and indus- works very well. come rich, they throw away their as a business- trialized countries hindered com- The second advantage which old policies which they do not need man and an munism from extending farther. It Poland has, and it shares this with any more and this is like kicking economist. His was a very successful policy. So, you Ukraine, is a big market. The third away the ladder, preventing other publications in- can say that existence of commu- advantage is that it managed to countries from using this tool too. clude Globaliza- nism was very helpful to the periph- keep its zloty, so when things are This is the classical case now in Ger- tion, Economic ery. The sad thing now is that there bad in Poland, its currency goes many. I think it is a serious ethical Development is no more communist threat in that down. Avoiding the euro is very im- problem at the core of the EU which and Inequality: sense, so the West has forgotten the An Alternative portant. It’s like in a boiler, where no one wants to talk about (and I Perspective; How kind of policies that were allowed in you have the safety valve. In case mentioned it in the book). After Rich Countries order to stop it. I am afraid that something is wrong, the safety valve WWII, the US Secretary of Treasury Got Rich and Russia will not play that role again. opens. In national economies this Henry Morgenthau introduced a Why Poor Coun- safety valve is devaluation. When plan whereby Germany should have tries Stay Poor; U.W.: Russia is a political, military things are bad the value of your cur- been de-industrialized because it The Origins of and economic threat to Ukraine. rency goes down, and you become had caused two wars in less than 50 Economic Devel- Could having such a threat make competitive again. That has been a years. The Morgenthau plan was to opment; How Ukraine more prosperous, as very important mechanism for hun- de-industrialize Germany. Then, Schools of Eco- Ukraine needs to develop itself dreds of years. What the euro has Germany was saved by former US nomic Thought strongly to counter it? have Addressed done is that it plugged that safety President Herbert Hoover who un- Development If you can convince the EU valve. The euro started as an idea derstood that old link between eco- about the arguments I apply, that for currency between the rich coun- nomic structure and population could happen. You can say that tries of the EU. The bad idea was to density. Hoover convinced the US Ukraine is a bit like Berlin during get in Greece and other poor coun- that in a de-industrialized Germany the Cold War. Berlin was an island tries with completely different econ- there were 25 million people too of capitalism surrounded by com- omies. That is a big disaster. many, and they would – Hoover munism and enormous amounts of One important thing for Ukraine wrote back to the US – have to be money poured into the city in order is that it’s a big market and Ukraine exterminated or moved somewhere to save its economy. In the case of has traditionally been the bread-bas- else. Hoover’s calculation assumed the Ukraine this kind of money ket of the world. When I go back to that a de-industrialized Germany must be used for rebuilding the reading American economic texts would not be able to sustain a economy. So, I think Ukrainian from the 19th century, the US felt higher population density then strategy should include a position that its competitor on the world France. Germany was saved by this whereby you say that you will be a grain market was Ukraine. So, this is calculation and it was allowed to re- much easier target for Russia if the a very important tradition and the industrialize under the Marshall EU allows you to be poor and de- strength, but the problem which I plan. The problem now is that Ger- industrialized. The EU should copy think is worth getting into is that ag- many which was saved by the Mar- the successful containment strat- ricultural subsidies to the new mem- shall plan a generation ago, imposes egy against the Soviet empire dur- bers of the EU is – as I understand it Morgenthau plans on the EU pe- ing the 1950s onwards. The best – are about half of what of the old riphery and the third world. way for Ukraine will be to rebuild members of the EU get. So you risk When you are rich, you say that the industries that are similar to entering the EU as a union where the market solves all your problems, Russia’s. Then people will identify German and Dutch farmers with and forget about economic policy. themselves much more with the cheap capital get much more subsi- Interestingly, Germany which was West and instead of migrating dies than Ukrainian agriculture. one of the last countries in the 19th- there, they will stay at home be- century Europe using this policy of cause they will have jobs in U.W.: In your book you present the Friedrich List to get rich and using it Ukraine. It can be an argument for experience-based economic theory again after WWII, now denies the the development of Ukraine. I in contrast to the model-based same policy that saved it to the EU. think the parallel with the Morgen- one. To what extent does the It’s a serious ethical problem and I thau and Marshall plans is a good geopolitical position influence raised it in a recent book in Ger- one. You should be able to con- economic development, economic man. So, the geopolitical situation is vince the Germans that you are in a structure and success of the important. During the Cold War it situation like Germany was just be- country? was important to stop communism fore the Morgenthau plan. № 14 (80) november 2014|the ukrainian week|41 Society|Human rights Nils Muižnieks: “One of the reasons for which I thought it was important to go to Crimea was to draw attention to the situation there” The Ukrainian Week speaks to the Council of Europe Commissioner for Human Rights about his recent visit to Crimea, the life of Crimean Tatars in the annexed peninsula, and Ukrainian political prisoners held in Russia

Interviewed by soon? What mechanisms – or Anna Korbut organizations, including international, could actually push the local Crimean authorities to stop the persecutions? One small development which I hope will lead up to concrete prose- cutions into these cases: a local con- tact group was established to exam- ine the cases of disappearances (, the leader of Crimean Tatar people, said at the PACE session in early October that 18 Crimean Tatars have gone miss- ing since Russia annexed Crimea – Ed.). It consists of representatives of the Investigative Committee of Rus- sia and of local law enforcers in Crimea. It should examine the two killings, and now five cases of disap- pearance of people. They are taking prerequisite investigative steps and have acknowledged these to be the cases of interest and concern to U.W.: We hear numerous reports of and private homes. I tried to stress to them. I would like to see the results serious abuse of human rights and the authorities that what they were and those who are responsible held persecution of Crimean Tatars in the doing is completely unnecessary and accountable. annexed Crimea. During your latest disproportionate because there is no Some pieces of evidence point visit to Ukraine, you spoke to the extremism or history of jihadism to the fact that the “self-defense authorities of the annexed among Crimean Tatars. They (the forces” or individuals from these peninsula, Crimean Tatar activists, authorities – Ed.) acknowledged forces were implicated in a number as well as Ukrainian and Russian that there might have been some ex- of these cases. The litmus test for government officials.W as there any cesses, but they are caused by secu- me as regards the assessment of this difference in their rhetoric regarding rity concerns. I asked them to stop it contact group’s work will be the situation on human rights in immediately in order to reinstate the whether they can call them to ac- Crimea? sense of security among Crimean Ta- count. I called on the authorities to There is a huge gap in percep- tars. These people just want to live in do away with these self-defense tions of this situation between local their homes. They may disagree with forces and to integrate anybody who authorities (in Crimea – Ed.) and political things, but they have the has not been implicated in human most Crimean Tatars I met with. The right to this, the right to disagree rights violations into the police after overwhelming sense I got was that of peacefully which is what they have they go through the necessary pro- fear and being intimidated by heavy- been doing. fessional training. But I think it is handed police actions and activities unacceptable to have military force of the FSB, raids by masked armed U.W.: Do you have a sense that that is not foreseen by any law that I men on madrasas, NGOs, businesses situation may change anytime know of, especially if some of its 42|the ukrainian week|№ 14 (80) november 2014 Human rights|Society representatives have been impli- The Ukrainian authorities have by certain routes to certain territo- cated in serious human rights viola- placed these issues firm on the ries that the Russians consider to tions. agenda for the international commu- be their territory. Everyone should nity to follow closely and to engage have access there. It is in the inter- U.W.: What about Ukrainians efforts to improve the conditions of ests of Russia that various claims who refuse to switch to Russian the prisoners, and to have them re- and allegations can be verified and citizenship? Does the Ukrainian leased. looked into. And it is in the inter- government have any way to ests of the international commu- protect them in Crimea? What U.W.: How much the situation in nity because this would allow pre- should be done in the first place Crimea is in the focus of vention of pressure that could lead to that end? international community and to displacement of people, further This was the problem that I what it used to be? What is the sufferings and humanitarian prob- highlighted in my report, as well as situation now? Is the attention lems. the UN did in theirs. There were a of international community to number of problematic aspects to this question fading, because it’s U.W.: What are internationally this so called “passportisation”. One very important to Crimean effective mechanisms to prevent or was the lack of clarity about what will Tartars to have it? just stop that thing looks as another happen to those who do not take the One of the reasons for which I deportation of Crimean Tartars from Russian citizenship. I did not receive thought it was important to go to the peninsula, their homeland? any clear answer to this question Crimea was to draw attention to the What international community from the local authorities in Crimea. situation there. It was overshadowed might do? There is a strong feeling Others are the short time of period to by the war in the Donbas. So, it was that Ukrainian authorities can’t allow an informed decision, and con- useful to go to Crimea to gather in- affect this situation much. ditions in which people could hardly formation and assess the human I certainly hope that we will not make a well-informed choice about right situation, and to discuss all see mass displacement of people these issues. concerns. from Crimea although this is a risk I think the Ukrainian authori- It is essential for the interna- if pressure continues on them. So ties, as well as the international com- tional community to continue to far, the figures I have seen from the munity, have a difficult time in pro- have access there and to keep work- UNCR suggests that about 20,000 tecting the rights of people in ing there. I salute and welcome the people have moved from Crimea to Crimea. One thing that is clear work of the field mission there. It is the mainland Ukraine, and around though is that the European Conven- an excellent initiative of Ukrainian tion on Human Rights still applies. and Russian human rights defend- “There is a huge gap The people who are making deci- ers. They should be supported and sions that infringe upon the rights of their voices should be heard. But, as in perceptions citizens in Crimea will be held ac- you said, it is very important to keep of the situation countable under it. This is something the attention focused on human that needs to be borne in mind when rights issues so that concerns can be between local authorities the situation in Crimea is discussed. addressed properly and people can in Crimea and most Crimean live in security regardless of their U.W.: You have met with Russian opinion on the political situation. Tatars I met with” authorities in Moscow. Have you discussed the issue of Ukrainian U.W.: According to your report, half of these would be Crimean Ta- political prisoners including Nadiya Russia’s Deputy Minister ofF oreign tars. I would sincerely hope that Savchenko and Oleg Sentsov? Affairs told you that the best way to the authorities exercising power I raised their cases with the Rus- access Crime to monitor the human there refrain from pressure, intimi- sian Deputy Foreign Minister and right situation there would be dation and attacks, investigate hu- asked if these cases were part of vari- through Moscow. If international man rights violations, and create a ous prisoner exchange negotiations. organizations use that, wouldn’t it sense of security for everybody. He said they were not. I also raised give any legitimization to the Since the European Conven- the cases with Ella Panfilova, the Russian occupation of the tion on Human Rights still applies Russian Ombudsperson. She said peninsula? to Crimea, people who face viola- that she had turned to the Federal This is indeed what he suggested tions of their rights can apply to the Migration Service, asking them for when I asked him whether it mat- European Court of Human Rights, information on the citizenship status tered, which route I entered Crimea. which will then make an assess- of Mr. Sentsov as the first step to However, as I noted in my report, I ment as to who should be respond- clarifying whether or not the Ukrai- think that access to Crimea should ing for providing information and nian authorities are allowed to see be available to people at any time making judgments they might ren- him. I hope that the Ombudsperson and through any route they choose. I der. Thus far, I have been the first of Russia will remain engaged in appreciate the Ukrainian authorities’ representative of an international these issues. I think that she has understanding of my going there via organization that has been able to shown some good will in cooperation Moscow. Let me stress that this was go to Crimea. I hope very much with the Ukrainian Ombudsman on an exceptional case and I appreciate that the UN, and other interna- various issues of common concern. the understanding, given how sensi- tional organizations, will be al- These cases are of great concern, tive these issues are. lowed to do its work there as well, they are problematic and we need to I am not aware of any Russian without any prejudice to the status follow them closely. legislation that would limit access of the territory. № 14 (80) november 2014|the ukrainian week|43 history|Regions Odesa: Through Cossacks, Khans and Russian Emperors Apparently, Odesa turned into the capital they needed generous assistance of Southern Ukraine contrary to the wishes with grain. Władysław, the Polish and plans of Catherine the Great, not as a king, in his holy compassion, signs a result of them. The empress herself would document committing himself to probably be shocked to learn that she providing that assistance. He gives is seen as the greatest “benefactor” of the and generously presents the re- city these days quested amount of grain that they need to take from his royal Koczube- jiv port,” Jan Długosz, a 15th-century Polish chronicler, mentioned the predecessor of Odesa in his funda- mental Historia Polonica, The His- tory of Poland. Most historians suggest that Kachybei was originally founded by Prince Vytautas, a famous ruler of the medieval Lithuania. Under the Lithaunian-Rus Commonwealth, a federation of semi-independent princedoms that emerged in the 14th century and existed for nearly two centuries, Kachybei city and the set- tlements around it were politically and economically integrated with the rest of the Ukrainian territory. In the official treaties of 1431 between the rival candidates for the Lithuanian throne, Kachybei and Dashkiv (to- Authors: he image of today’s Odesa is a Cossacks, from people who lived in day’s Ochakiv, a city near Odesa Olena product of the variety of ethnic, villages around Odesa. The Cos- known for its castle) were specifically Bachynska, social and professional groups sacks, in addition to their own cus- recorded as “castles of Podilia”, a his- Taras Tyou wouldn’t have seen often toms and glorious past, brought to torical Ukrainian region in the south- Honcharuk elsewhere in Ukraine: Ukrainian Odesa tolerance for other peoples west. writers and Italian architects, Ukrai- with which they shared a common In the 1450s, the powerful Otto- nian chumaks, the old-time salt trad- history. Zamfir Arbore, a Bukovin- man Empire and its vassal state, the ers, and Jewish merchants, Ukrai- ian-born Romanian ethnographer, Crimean Khanate, conquered Kachy­­­­­ nian sailors and French designers, offers one proof to that in the line of bei along with the rest of the adja- Ukrainian Cossacks and Russian of- a song he recorded locally: “When cent coast. The new mas- ficials, Ukrainian scholars and Polish the Wallachians came to us, they ters changed the city name into a revolutionaries, Ukrainian students were all good. They joined the Cos- more Turkic-sounding Khadzhybei and Greek entrepreneurs, as well as sacks and became brothers to us.” although it was further mentioned as profiteers, port coachmen and po- Kachybei, Kuchubei, Kudzhabei and licemen with no distinct ethnic ori- The rule of khans the like in documents up until the gin. One thing they all had in com- History of a settlement usually starts 1750s. Later, it was renamed into mon was freedom of spirit, ideas and with the first written record of it. Ac- Yeni Dunya, the new world in Turkic actions. cording to this principle, Odesa’s languages. “In a peasant guy, a sea captain, birthyear is 1415, the year of the first The territory around Khadzhy- a university professor, one suddenly ever recorded mentions of Kachybei bei fortress was known elsewhere as recognized a Cossack from the free (otherwise known as Kochubei or the Kochubei Tataria or the Khanate Zaporizhian Sich - a mix of adven- Khadzhybei) port, the name of the Ukraine. The farmers, most of them turism, humor, strength and poetry,” settlement where Odesa later devel- Ukrainians, who moved there from Lev Slavin, an Odesa-born writer, oped. “When ambassadors from the the adjacent territories, gave a tithe described the locals in the early 20th Patriarch and Greek Emperor ar- of their harvest to the Tatar rulers. century. In the 19th century, priests rived in Poland to visit King Surprisingly, Ukrainian peasants recorded mentions of legendary Cos- Władysław with a letter and tin bul- found life in the Khanate Ukraine sack, including Maksym Zalizniak, las indicating their status, and the easier than under the Polish lords. Ivan Honta and Sava Chalyi, and of Turks were tantalizing and oppress- Quite a few of them were Cossacks, the most recent feats of Zaporizhian ing them in every manner possible, and more settled down along the 44|the ukrainian week|№ 14 (80) november 2014 Regions|history Black Sea coast. In his report for the historians regarded Andrian Hry- Great. A fortress surrounded by a Russian government dating May 12, bovskyi as an honest and humble small Greek settlement in the middle 1747, a Zaporizhian Sich otaman man who retained sharp memory of one of Russia’s gubernias was the wrote that many Cossacks were until the end of his life. Also, he did future foreseen for it by the Russian “trading various goods” on the Turk- not intend his memoires to be pub- officials. Its convenience as a trade ish territories, traveling for salt, lished, and he was Catherine’s state center revealed itself slowly and nat- hunting, and brewing spirits, some secretary, so he was actually in urally, and the Russian government of them living in the lands stretching charge of compiling decrees and realized the importance of its loca- as far as the Black Sea. Officially, dealing with city renaming issues. tion only after Duc de Richelieu be- these Cossacks were serving in the Andrian Hrybovskyi was born on came mayor. He took charge of tsar’s army. Some, however, grew August 26, 1767, in the village of Odesa in 1803, seven years after weary of the Russian rule and fled to Lubny, Poltava Oblast. His paternal Catherine the Great died. Perhaps, the endless Black Sea steppes for and maternal ancestors were from Catherine saw Odesa as an impor- good. Eventually, many settled down noble Cossack families. tant seaport, not a center of the gu- in the suburbs of Khadzhybei and Almost all “new cities” built by bernia or the region. But she allo- the villages around it, living on hunt- the Russian tsars are on the spots cated little funding to the building of ing, gardening and farming. The where older settlements already the port in Khadzhybei, compared to most intense phase of the resettle- stood. One of the examples is the the sums channeled to the Myko- ment began after Catherine the Ukrainian settlement Polovytsia that layiv, Kherson and other seaports. Great demolished Zaporizhian Sich turned into Katerynoslav, today’s The empress often mentioned in 1775. Many Cossack-style stone Dnipropetrovsk. The building of new “Khadzybei’s convenient location” in crosses scattered around the villages cities ate up huge sums of the empire her decrees, and this compliment is and steppes near Odesa serve as a money. It also took hundreds of sol- often quoted today to prove the im- proof of this mass migration to this diers’ lives. In 1787, for instance, 12 portance of the city to the Russian today. regiments were involved in the Khadzhybei was annexed to the building of Katerynoslav and some The Russian government Russian Empire after the 1787-1791 pre-revolution authors gave shock- Russo-Turkish War thanks to the ing rates of deaths at construction did not realize numerous battles fought by the sites. the importance of Odesa’s Black Sea Cossacks, the ex-Zapori- By the time intense building be- zhian warriors, against the Tatars. gan in it, Odesa was home to 400 or location until Duc de On September 14, 1789, the city was 450 Black Sea Cossacks with their Richelieu became mayor stormed by just two batteries of the families, or almost 10% of the city’s Regular Russian army and six regi- population, so it was mostly them ruler. However, historian Volodymyr ments of the Black Sea Cossacks led who were involved in the construc- Yakovlev explained that these were by otaman Zakhariy Chepiha and tion. Numerous accounts of their merely clichés used in the then ad- military judge Anton Holovatyi. deaths and what caused them are ministrative language for all, even available these days: “crushed!!!”, less promising settlements. Cathe- Catherine, not so great “killed!!!”, “killed by a stone slab”. rine exempted Odesa from taxes and It is hard to find a person in Odesa or Building a city was not easy, and the the obligation to quarter troops for elsewhere who does not know about process involved various ethnic and five years, and allowed wine trade the great legacy of Catherine the social groups. there. On the other hand, similar Great in Odesa. The Russian em- In the end, however, all this hard privileges were enjoyed by all “new” press is widely appreciated as the work often proved futile. Most cities cities, yet they hardly thrived as a re- founder and benefactor of Odesa, built at such high cost disappeared in sult. In fact, it took Odesa a decade to one of the first people who ever saw the early 19th century altogether, or get greater privileges that other, the city as the future center of the re- were barely surviving. Only a hand- more important cities already had gion and paved a path to its thriving. ful developed properly. At this back- under Catherine. It is hardly known who came up ground, the turbulent development Apparently, Odesa turned into with the name Odesa first. According of Odesa in the early 19th century the capital of Southern Ukraine con- to one version, poorly remembered seemed to be a miracle. “This was trary to the wishes and plans of Cath- today but confirmed documentarily, the way Catherine built any city – erine the Great, not as a result of the author is Andrian Hrybovskyi, ours was an exception to the rule,” them. The empress herself would Catherine’s confidante. “Newspapers Volodymyr Yakovlev, historian and probably be shocked to learn that write that the emperor was pleased head of the Odesa Society of History she is seen as the greatest “benefac- 1 Zaporizhian Sich was the to see Odesa founded upon the in- and Antiquities, wrote in the late stronghold of the Cos- tor” of Odesa these days. What sacks and their state. Lo- struction of Prince Zubov. I played 19th century. “Notably, the revival of cated in today’s caused Odesa’s turbulent develop- an important role in this: I wrote the Khadzhybei was of little important to Zaporizhia Oblast, it was ment in the early 19th century then? organized as a free mili- decree about the creation of this city her in comparison to, say, Kateryno- tary state, a bulwark In fact, it was no secret to either his- against Tatar attacks, and and named this place Odesa instead slav, Kherson, Voznesensk… The city a shelter for peasants torians or dwellers of Odesa at the of Khadzhybei, a name the empress (Odesa – Ed.) earned itself its pri- who fled the oppressive time. Back in 1791, a French traveler rule of the ruling class approved as well,” he wrote in his mary role in the south with its own elsewhere in Ukraine who visited Southern Ukraine wrote memoires in 1828. life, its own trade.” 2 Wallachia is a historical that “enough bread to feed the entire According to Hrybovskyi, it was and geographical region Europe is rotting in Podillia and Vo- of Romania. At different him that came up with the name Finding its own path periods, lyn”. He mentioned many other it had been under the Odesa. This version may seem ques- In fact, Khadzybei was never among Hungarian, Ottoman and foods that had then been popular in tionable. However, pre-revolution the cities favored by Catherine the Russian rule the West. When the Right and the № 14 (80) november 2014|the ukrainian week|45 history|Regions ter that the “Great Russians” who came to Odesa instantly noted the peculiar local dialect, including dif- ferent accents in words that were typical for Ukrainian rather than Russian; a multitude of “Little Rus- sian” words; “Galician” structures in sentences; and different pronuncia- tion of many letters and verbs – Pro- fessor Zelenetskyi explained that these were all borrowed “from Ukraine”. According to him, native speakers of this “incorrect language” were the indigenous population, as well as “many Great Russians who, as they mingled with Little Russians, took over many phrases, although they guarded their nationality.” This was the birth of the “Odesa lan- Left Bank Ukraine united under the Similarly, Soviet historians first paid Unlike guage”, a mix of Russian and Ukrai- Russian officials, rule of the Russian Empire, the Black due allegiance to the Communist en- merchants nian. Sea ports became the shortest path vironment, then wrote what they re- demanded Odesa elites, including officials, for Ukrainian grain to reach Europe. ally knew about Odesa’s history. immediate landlords and intelligentsia, too, felt Khadzhybei turned out to be the Meanwhile, it was Ukrainian repair of the vibrant connection with the rest of most convenient of all. Cossacks who liberated Khadzybei local quay and Ukrainian terrain. Many stemmed Unlike Russian officials, the that later became Odesa, and the construction from old noble and free Cossack merchants demanded immediate re- surrounding land, from the Ottoman of the port. families, and were graduates of pair of the local quay and construc- rule. It was the descendants of the Until then, Kharkiv and Kyiv universities. Hence tion of the port. They found allies in Black Sea and Zaporizhian Cossacks “the sailors the proactive role Odesa later played the government. Platon Zubov, Gen- who were building and developing were reluctant in the national liberation movement th to enter the eral Governor and another confi- Odesa starting from the late 18 cen- seaport lacking of Ukrainian culture and politics. dante of the empress, supported the tury. It was Ukrainian farmers who a reliable shelter Fundamental volumes on the history idea to build the seaport in Khadzhy- worked hard to provide Odesa’s from a storm.” of Zaporizhian Sich by Apollon bei, probably seeking a benefit for enormous growth in the first half of Moreover, both Skalkovskyi were written and pub- himself. He signed a request to Cath- the 19th century, making it the Catherine the lished in Odesa in the 1830-1880s. erine the Great to provide the neces- wealthiest city in Ukraine. Why, Great, and her Ukrainian community in Odesa led sary funding. She did not reject the then, regard the empress who successor, Paul I, by Leonid Smolenskyi was among idea but allocated only part of the crushed old freedoms of the Cos- restricted grain the most powerful and well-orga- sum needed immediately. As a re- sacks, dooming them to exile and exports from nized in the late 19th century. Odesa- sult, the seaport construction was miseries and Ukrainian peasants – Odesa for fear of poor harvests based Prosvita, the educational ini- only completed under Duc de Riche- to serfdom, as the founder and bene- tiative, emerged in 1905 to become lieu. Until then, “the sailors were re- factor of Odesa. one of the earliest and the largest of luctant to enter the seaport lacking a the kind in the Russian-ruled reliable shelter from a storm.” More- The golden years Ukraine. A number of outstanding over, both Catherine the Great, and When Catherine’s son, Paul I of Rus- figures in Ukrainian National Revo- her successor, Paul I, restricted grain sia, lifted restrictions on grain ex- lution of 1917-1921 were born and exports from Odesa for fear of poor ports, Odesa saw enormous eco- educated in Odesa. In January 1918, harvests – or so they explained this. nomic growth that surprised the en- the most violent battles between the All this hampered rather than facili- tire Europe. By the end of the 1820s, Ukrainian haydamaky and the Red tated the city development. the exports of Ukrainian and partly Guards took place in Odesa (120 Abundant trade compensated Moldavian grain made Odesa the fallen participants were buried in a for the lack of goodwill from the first and the fourth most populated common grave at Kulikovo Pole, the tsars. Thanks to the exports of Ukrai- city in Ukraine and the Russian Em- arena of the May 2, 2014 tragedy). nian and partly Moldovan grain, pire respectively, outnumbered by History seems to be repeating to- Odesa hit many records of economic St. Petersburg, Moscow and War- day. Despite the long-standing and and demographic growth by the saw. “Grain controls Odesa” went a determined attempts of Russian im- standards of the 19th century. In its 19th-century local saying. Grain was perialistic forces, Odesa once again golden years, grain exports consti- delivered by chumaks from all over unexpectedly shows its Ukrainian tuted the biggest part of trade at Ukraine. In good years, the carts face. This is hardly surprising: de- Odesa seaport. heading to Odesa counted hundreds spite its somewhat foreignness, Hardly any historian researching of thousands, sometimes millions. something not unusual in a seaport Odesa before the October Revolution The common population of city, it has for centuries remained did not point it out. However, almost Odesa grew as peasants from adja- primarily Ukrainian. Geopolitically all of their stories began with glorifi- cent Ukrainian territories moved in. and historically, it is a link between cation of Catherine the Great as the This could not but affect the lan- Ukraine and the Western world, a “founder” in an attempt to fit into the guage. In 1842, Professor Kostiantyn city that is Ukrainian and European imperial framework of the time. Zelenetskyi wrote in Odesa Newslet- at the same time. 46|the ukrainian week|№ 14 (80) november 2014 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 Navigator|Culture & Arts hoods, as if the borders of countries coincide with those of culture or cul- tural identities. These are completely Miljenko Jergović: different things. Ukrainian cultural self-identity spreads to all territories where Ukrainians live: to three-four “Ukraine is fortunate villages and the small town of Prnja- vor in Bosnia, to metropolises in the USA and Canada, as well as cities in in that it is so large. It cannot Russia – this is also Ukraine. Simi- larly, Russian identity is present in Ukraine and probably, throughout be swept under the carpet” the world, because there are so many Russians, that they have left their Interviewed mark everywhere. This is the thing. by It is not related to state borders. The Kateryna latter should never be touched. Kalytko and Moreover, it offers no practical ben- Anna efit in the 20th and 21st centuries. It Vovchenko is impossible to achieve the goals to- day that were possible in the Middle Ages or 300–400 years ago. There is also no point in impinging on foreign territories because such upheaval will inevitably lead to war, while the change of borders will lead to a change of others, there will be no means to stop this process, other than with the drawing up of some kind of global treaty. In other words, if Ukrainian borders are under threat, so are those of France, Ger- many and America, however im- probable this may seem. This is a fact. U.W.: Who are Ukrainians from the ne of the most influential est of strong countries, such as Ger- Balkan perspective?S omewhat contemporary writers from many, France, etc. During the Bal- strangeR ussians? How do they see Central-Eastern Europe kan military conflict, for the first us? Ospoke to The Ukrainian time, I was very shocked when the Of course not. But your fear of Week about the wars in the Balkans West first began to say that govern- being identified as Russians has and Ukraine, language conflicts and ments could come to an agreement some grounds. For example, for me, nationalistic preconceptions (we well know how this is arranged), it’s not particularly important that and the borders – redrawn. This has we were all Yugoslavians, I had no U.W.: You came to Ukraine during become a terrible precedent, like a objections. But you were unfortu- its worst military conflict since time bomb, following the example of nate, because the name “Soviet gaining independence. A native of former Yugoslavia, which was not a Union” was always dominated and Yugoslavia and a national author of large country, but was divided into supplanted by another – “Russia”. two new countries, which also many even smaller ones. From the This is why you were not viewed as suffered military turmoil…O ne way outside, this does not appear to be Soviets, but as Russians. Unfortu- or another, every war moves and important. 20 years later (not a par- nately! In the Balkans, or should I marks the borders of countries and ticularly long period) it is the turn of say former Yugoslavia, we make a cultures. What is the impact of such Crimea and South-Eastern Ukraine. clear differentiation: Ukrainians are movement? From the viewpoint of Western Eu- Ukrainians and Russians are Rus- This is a difficult question. To be rope and its “large countries” (in in- sians, no one mixes them up. This more precise, it’s a question that has verted commas, because Ukraine is could also be a result of tourists visit- become difficult. Prior to the Balkan significantly bigger than them) once ing the Adriatic in the last 10 years or Wars in the 1990s, we felt that the more, this is not seen as a particular so. It has been engraved into peo- borders between countries were matter of principle, because it’s the ple’s awareness that Ukrainians have clearly determined, the 1977 Hel- East, the former Soviet Union: ev- yellow-blue symbolism, while Rus- sinki Accords, which noted that they erything will balance out once Putin sians have the tricolour, etc. But the would not change, were in effect. is satisfied… difference has been clearly under- This was important for the entire But no. And the process will not stood, no one mixes it up. continent, and our belief that it end if it has already begun. So the I don’t know much about would remain so, was based on the following problem arises: such situa- Ukraine – almost nothing, I can dis- conviction that this was in the inter- tions force us to believe in false- tinguish the figures in your public 48|the ukrainian week|№ 14 (80) november 2014 Culture & Arts |Navigator life, but I know hardly anything selves: against whom, for which ever way you look at it, Ukraine’s about them, I judge people in the ba- country, for which native land and fortune lies in the fact that it is so sis of a single announcement. I have what is really the point of coming large, and in contrast to, let’s say, heard quite a few good, intelligent, from, say, Travnik or Višegrad in Bosnia, which is small, it’s difficult to and, if I may say, calming statements Bosnia, only to die in battle in Lviv. sweep it under the carpet. It would by Patriarch Filaret. On several occa- Today, this makes no sense, but it have to be a giant carpet, to it to hide sions, he made very pertinent com- did then, because there was a single a vast country and for no one in Eu- ments regarding this history be- multi-identity that existed for every- rope to notice what is going on. tween Ukraine and Russia. He just one – a common world. came to mind because I flew on a U.W.: What happens to language plane with him. It’s quite funny. I U.W.: Do you agree with the theory BIO during a war? Is it an instrument for Miljenko Jergovi was flying from Vienna and sud- that the FirstW orld War supposedly ć division or bridges between people? is a Bosnian and denly saw a dignified person. I kept began, but did not end, just had Based on war and post-war Croatian prose thinking to myself: I know him from some pauses? experience, how widespread is the writer, poet, play- somewhere … It only dawned on me Not entirely. I think it concluded situation with the word – an alarm later that this was Filaret! He was ac- twice: the first time – in the spring of wright and col- beacon or the national marker companied by a young assistant, a 1945, and the second time, in earnest umnist. He was described in A White Ship at red-bearded monk who was flying – with the collapse of communism. born in 1966 in Arkhangelsk (a short story by economy class, while Filaret was In my view, the problem is that the Sarajevo, and Miljenko Jergović from the Stories travelling in business class. finale of this war has returned us to graduated from about People and Animals – Ed.)? the situation that existed before it the Faculty of Phi- In the case of Yugoslavia, it’s a U.W.: How does war help build or began, to issues that were not re- losophy at the very painful and idiotic problem. In destroy identity?A s a person who solved then and set aside for one University of Sara- other words, Serbs, Croatians, Mon- understands the experience of the hundred years, because Lenin jevo. It was there, tenegrins and Bosnians speak one Kingdom of Yugoslavia and brought about the October Revolu- in the capital of language. Yes, it was an artificially corresponds with the image of a tion and established the Soviet Bosnia and Herze- created construction in the times of resident of Austria-Hungary, how Union. A whole range of inconve- govina that the Vuk Karadžić. Actually, just like any do you view wartime and post-war nient problems pertain to this very Balkan war be- other at the time of its standardisa- identity? fact. Russia, alarmingly large and gan. In January tion. There isn’t a language that Very often, we view identity as somehow anarchic and totalitarian, 1992, with four would be created without external nationalist, less frequently – reli- did not even have a five-minute at- associates (Ivo interference. Vuk took the language gious, although this notion is far tempt to live under conditions of a Komšić, Ivan as its foundation that was and con- broader, more unique and complex. parliamentary democracy and civil Lovrenović, Mile tinues to be used largely in Herze- In addition, it is wrong to think that society. Meanwhile, 100 years after Stojić and Ivan govina. Serbs, Croatians and Bos- its scope is fixed, because it changes the revolution, there is not even a Kordić), the au- nian Muslims always lived there and from day to day, gaining new forms trace of its nobility or tsarist crown, thor sent an open it always belonged to these peoples. and characteristics, and becomes for everything to somehow “become letter to the Croa- This is a phenomenon without any more stratified. In the case of Eu- civilised”. This is the only thing miss- tian President, national markers. But this isn’t the rope, wars were breaks in continuity, ing, everything else remained un- Franjo Tuđman, issue, because 150 years after Vuk rather than drivers for changes in changed. There is no institutional accusing him of Karadžić’s death, this was the only our identity. They temporarily sus- elite, which is why this country is ex- the political de- native language for all of us in Yugo- pended our coexistence with a cer- tremely unstable. The history of struction of Bos- slavia and remains so. So if he made tain country, transformed the sense countries or people, who were unfor- nia and Herzegov- it up for us, this is still no longer a of native land, but did not funda- tunate enough to be Russia’s neigh- ina. He’s lived in subject for discussion. mentally change us. Lviv is currently bours, has returned to its beginnings Zagreb since 1993 At the time when Serbian and celebrating the centenary if the battle – the time before the First World and is a member Croatian nationalism arose, it was for Lviv in the First World War. Two War. This is somewhat tragicomic. I of the Croatian suddenly heard that Croatians, Bos- Bosnian regiments and a very large don’t have a nationalistic bias, but and Bosnian PEN nians and Montenegrins had stolen military unit made up of Croatians am sometimes very glad that my Clubs. An ethnic this language from the Serbs. How and Croatian Serbs fought for it. And country does not border Russia. Croatian, Jergović someone can appropriate someone they all stood for a specific native is known for his else’s language is questionable. Croa- land and a specific country, which U.W.: We suddenly became aware strong criticism of tians and other nations then felt an they considered to be their own. of our alarming solitude. For a the Croatian polit- urgent need for – let’s call it linguis- Many died here. The mythical map while, we still believed that ical system. His tic separation and in exaggerating of Galicia from 1914, just as the someone would come to help us, works have been small linguistic differences in order mythical portraits of great-grandfa- but now understand that this isn’t translated into to create a real difference between thers or other ancestors who died the case. Can a smaller country save more than 20 lan- them. This is how assertions about here, still remain in the conscious- itself, withstand a larger one and guages. In 2012, different languages appeared. In ness of the people of Bosnia and Cro- continue to be compassionate? he received the truth, it’s unfounded, although there atia and in family recollections, Yes, it can – through fanatical 2012 Angelus are more differences between the passed on from one generation to patience as well as fanatical resis- Award in Poland, variations now than there were 50 another. This image is part of iden- tance to externally imposed logic. for his novel Srda years ago, under Communism. In tity, albeit not as vivid as before, but Here, just as in any similar history, Sings at Dusk at spite of everything, it’s a common it still exists. However, the feelings everything boils down to who will Pentecost (the language, which has been given dif- and values with which and for the hold out the longest. Patience must Ukrainian transla- ferent names by the nations, which is sake of which they battled, are not always be on the side of the condi- tion was pub- completely normal and logical. In being reconstructed within them- tionally weaker party. And, which- lished in 2014) this case, the differences in stan- № 14 (80) november 2014|the ukrainian week|49 Navigator|Culture & Arts dards are actually so insignificant, opposition. This is where their func- that we are not even talking about tion lies – to consistently be in the different dialects. opposition. Against what? – General So the consequence of this trend hysteria in any form. It is easily became a certain form of linguistic recognisable, particularly when “motor-terror”. Let’s say, a TV cam- there is a whiff of war or when there era crew stops a passer-by on a street is partial martial law – at such times in Zagreb and asks him random it is exceptionally important to lean questions, for example, about prices on any collective madness. I don’t on the market, the latter responds consider myself to be a special intel- awkwardly and in panic, because he lectual, but, let’s say, I cannot sup- could pronounce something incor- port the Croatian national (football rectly, in the Serbian manner… And – Ed.) team, because it is frightening a single word would be enough to mass hysteria. Also because the fans say: “Ah, now I see”. One word of the on the stands shout “Forwards, on- thousand uttered, could cause a wards, Ustashes” and sing Fascist problem. It’s a completely absurd Ukrainian. So a fear of speaking songs. As a fan, am I supposed to be situation. In this, there is no similar- and the spoken word is emerging. like this? At the same time, my ity between us and you. As far as I Is it still important to articulate friends are constantly convincing me know, during the Soviet era, Ukraini- and heal ourselves by that the footballers themselves have ans or Belorussians who spoke their communicating? no relation to this. So? At first glance, native languages were either consid- The fear of communication in this is an absurd example, but life is ered to be nationalists, peasants, or your language, Ukrainian, is com- made up of such small absurdities both. Either way, politically, they pletely natural for many reasons. during happy times. were unreliable elements. This was a One of them, I think, is people’s un- classic, completely predictable case certainty that they really know it. U.W.: We appear to be a of chauvinism, hidden under the And because of this, it would be generation that has gained a special guise of internationalism, which was worth defusing it as much as possi- sense of existence since the onset of the norm in the Soviet Union. But ble, if it is possible to say and do so; war. Previously, we lived with the the Ukrainian and Belorussian lan- helping people to speak and write, ghosts of our heroic ancestors in the guages did not disappear. The extent regardless of the language in which shadow of colonial complexes, and to which they differ or are similar to they do this and its quality. Because now, we are beginning to fight for a Russian is clearer to you, and in any language will only be fluid when peo- better future with our own hands. case, they are different languages. ple speak freely and they will only Some people consider this to be our It’s different for us. learn it at a proper level through a lot only designation, which is also a of communication. I think this is a little frightening… U.W.: Can a language build borders, real problem. In our case, the fear of The transformation of any war add or take away forces? Can it be a speaking in our own language leads into an object of pride is dangerous. weapon? to an ever-greater lack of knowledge Also faith, as if it’s possible to win a Of course. It was and is in many of it. People began to speak Croatian better world, because such disillu- wars. Although it seems to me that like Google Translate. This is a con- sion then sets in, that few words can something quite extraordinary hap- sequence of the ideological and po- express (laughing). pened in Ukraine (correct me if I’m litical fear of making a mistake when wrong). It appears that Yanukovych, speaking. U.W.: When does war come to an Putin and goodness knows who else, end? Is it possible to determine that counted on the fact that the country U.W.: Can today’s intellectuals still specific moment? would divide based on linguistic is- play a romantic role, change the I think we’ll recognise it post fac- sue, into Ukrainian- and Russian- world in these dark times, or are tum. We realise: this is when it speakers, and this is where imperial they simply chroniclers? ended. I once imagined that it would ambition will be implemented, since Chroniclers are also very impor- be just like in American photo- the latter are in the majority. But ul- tant, let’s not underestimate their graphs: the return of soldiers to the timately, Ukrainians had the upper significance. First and foremost, in- USA from the German front, the girl hand. It emerged that some of them tellectuals must change themselves hanging onto the neck of the sailor, simply speak Russian. And if you before changing the world and the etc. Reality is completely different. look at this from the side-lines, it’s other people that surround them, as The last time something like this the best thing that has happened, be- well as re-forming society. It’s doubt- happened was probably after the cause the country did not fall apart ful whether there are enough of them Second World War. That war was based on linguistic-cultural issues. to achieve the latter, because the first possibly the last one, about which it Otherwise, there would have been a task is more than enough to do. I’m was possible to clearly identify the catastrophe on all fronts. It would not talking about adapting to the sit- exact moment it ended: with the an- have been used for manipulation, uation; one should never resort to nouncement of Hitler’s signing of the declaring that Ukrainians were Fas- mimicry. The most valuable things document of capitulation. Not even cists, terrible people that it’s better to about intellectuals (whoever we re- with the first train of returning sol- keep away from… gard in this light over the last 200 diers. The radio announced that Ger- years, since the French Revolution) many had capitulated, and everyone U.W.: Today, some people are – is that they showed society and the believed and knew: peace had ar- dying simply because they speak world that it is necessary to be in the rived. 50|the ukrainian week|№ 14 (80) november 2014