Draft law to guarantee independence When will Yulia Tymoshenko Patriot Games: A scenario that will help of judges hides attempts be released? Viktor Yanukovych win the election to reinforce dictatorship

№ 19 (61) october 2013

www.ukrainianweek.com Featuring selected content from The Economist for free distribution

|contents Briefing Society Ukraine or Tymoshenko? The ex-premier’s intention to Latvian ex-Minister of Culture Sarmīte run in the presidential election Ēlerte on the success and challenges may discourage Yanukovych from of integrating the Russian-speaking releasing her in exchange for the community into Latvian society Association Agreement 22 4 Defending Ukrainian at Odesa’s Politics Universities: College students Patriot Games: campaign against Ukrainophobia Successfully tested by Leonid Kuchma in local high schools over a decade ago, a number of scenarios can help Yanukovych win the 2015 presidential race 24 6 History Subjugated Europe: Stalin’s campaign Control of Judges in the Name of Europe: to establish communist governments The draft law intended to make Ukrainian in Central and Eastern Europe relied judges more independent may have the largely on local elements and the opposite effect tools already tested in the USSR

10 26

Economics Culture & Arts The Richest Pay Less: Ukrainian-American experimental While the budget crisis escalates and tax theatre director VirlanaTkaczon a pressure on non-oligarch business grows, new life for old traditions, culture tycoons pay most of their taxes offshore on the edge and the struggle to 12 develop new audiences The Gated Globe: Governments are putting up impediments to globalisation. 30 It is time for a fresh wave of liberalization Don’t Wake the Neighbours: A review of the concert by Norwegian jazz 16 and experimental pianist, Bugge Wesseltoft Focus 32 Who Will Protect Us? Squeezed between See and Hear: Festival of overtone music, two power blocs, Ukraine will exclusive handmade doll show, inevitably join one Brazilian bossa nova and Industrial Eden 33 18 Navigator A Volunteer Army: Military reform The River Styx of Lviv: entails the transfer to a volunteer The underground labyrinth professional army in 2014 and a of the city’s turbulent river reduction in military personnel. In locked in concrete reality, it seems to be nothing more than an attempt to save money 20 34

E-mail [email protected] Tel. (044) 351-13-87 www.ukrainianweek.com The Ukrainian Week № 19 (61) October 2013 Editors address 37 Mashynobudivna str., Kyiv, 03067, Ukraine Founder ECEM Media GmbH Print Novy Druk LLC, 1 Mahnitohorska str., Kyiv, 03056, Ukraine Publisher ECEM Media GmbH Ordering number 13-8086 Sent to print on 17 October 2013 Address Austria, Am Gestade,1, 1010 Vienna Print run 15 000. Free distribution State registration certificate КВ № 19823-9623ПР 19.03.2013 Chief Editor Alla Lazareva Our partner Editors Anna Korbut, Natalia Romaneс, Shaun Williams № 19 (61) october 2013|the ukrainian week|3 briefing| trends &talk The European Commission includes the Odesa- Rumours spread in Ukraine and abroad Viktor Yanukovych signs a Brody oil pipe into the list of key infrastructure about the possible default of Naftogaz decree on the last manda- projects to be funded with a total of almostEUR NJSC. There are currently no economic tory conscription and the 6bn. The European Commissioner for Energy, grounds for this. The purpose of the introduction of a volunteer Günther Oettinger, claims it is ready to finance the media attack against the state-owned professional army in 2014 upgrade of Ukraine’s gas transit system company is as yet unknown (see more on p. 20) Ukraine or Tymoshenko?

Authors: Oles Oleksiyenko, Serhiy Voropayev, Brussels

ust days before the latest visit of Pat Cox and Aleksander Kwasniewski to Kyiv, many top Jofficials in Brussels claimed that Yulia Tymoshenko was almost on the airplane to Germany. This optimism soured after the two rep- resentatives of the European Parlia- ment (EP) returned from Ukraine. Polish EMP and member of the Group of the Progressive Alliance of Socialists and Democrats, Marek Si- wiec, wrote on his blog that partial pardon would be the best option in the situation with Tymoshenko. This means halving her sentence of seven years; the fact that she has al- ready served most of the shortened term could be the ground for her re- lease, member of the Party of Re- gions’ European partner specified. Apparently, this suggestion does not come out of the blue. The Ukrainian government extends the bargaining process for as long as possible while its political part- ners in the EU promote a scheme convenient for the official Kyiv: Tymoshenko will pay Ukraine USD 200mn as a compensation for the losses Ukraine incurred as a result of her actions as premier and refuse to run for presidency for three years. Then, she can go for treatment. The European response to this – another postponement of the deadline for the Council of Ministers to take the final deci- phото: phl phото: The month in history 7 October 1918 15 October 1582 16 October 1853 Ukrainian-Russian government Pope Gregory Russia and the alliance of negotiations are terminated XIII implements France, Britain, the Ottoman after the Soviet delegation the Gregorian Empire and Piedmont-Sardinia refuses to recognize Ukraine’s calendar start theC rimean War for domi- independent status nation in the Black Sea region

4|the ukrainian week|№ 19 (61) october 2013 |briefing

The Verkhovna Rada The Ukrainian and Russian governments sign an agree- The Ukrainian national amends the Criminal ment to set up a joint Black Sea grain pool. This is unex- football team makes it to Code to introduce pected, given the openly cool relations between Kyiv and the 2014 World Cup play- liability for raider at- Moscow today. Some political analysts assume that the off. It will most likely play tacks. It ranges from 2 confrontation is just for the public eye, with the leaders against Sweden, Romania, to 10 years in prison actually playing an intricate geopolitical game Iceland or France next

sion on the signing of the Associ- tee on Foreign Affairs, noted that refuses to pardon her and the EU ation Agreement from October 21 the Monitoring Mission offered a signs the Association Agreement. to November 18 – probably con- draft solution to the Tymoshenko In a typical obscure diplomatic vinced Yanukovych even more case. It recommends partial par- manner, Tombinski said that Ty- that the Europeans are ready to don for her before she goes to Ger- moshenko expressed a “very con- concede to him. many, i.e. reducing her sentence structive approach”. The fact that the hearing of from seven to two years which Ty- In her address to Bat- the report of the Kox-Kwas- moshenko has already served. kivshchyna read out at the recent niewski mission (extended for an- In addition to the debate on assembly, Tymoshenko herself an- other month) was postponed this recommendation at the meet- nounced optimistically that this from October 15 to November 15 ing, the Cox-Kwasniewski mission was her “last distance address” signals that the EU no longer ex- mentioned Tymoshenko’s classi- and she “will soon personally lead pects the Yanukovych regime to fied letter to Yanukovych that the historical assemblies, just like take the final decision on Ty- could serve as a basis for her re- before.” If she refuses to go for moshenko by October 21 as lease before the treatment. It is treatment abroad as a prisoner, Ukraine’s President promised currently unknown whether the this will signal that she tries to earlier. Before the meeting of the letter contains just her consent to avoid being arrested again after EP Conference of Presidents, a go to Germany (which should not her return from Germany to pre- body of political group leaders, be viewed as refusal to struggle vent her from running in the 2015 EU Enlargement Commissioner with the regime) or her request for presidential campaign. Štefan Füle expressed hope that pardon or treatment abroad. Ac- Yulia Tymoshenko would soon be cording to Martin Schulz, this let- released for treatment in Ger- ter may be sent to Yanukovych Tymoshenko's intent to run many. This would happen before anytime soon. in the presidential election the Vilnius Summit but not next Meanwhile, members of the week, he then added cautiously. European People’s Party (EPP) may discourage Yanukovych This may signal of yet another group that includes Batkivsh­ to release her in exchange promise from Yanukovych made chyna continue to press on the behind closed doors, or at least of need to solve the Tymoshenko for the Association a respective hint from someone issue. This rhetoric is gradually Agreement from his circle. turning into an ultimatum. EP President Martin Schulz “The­­re is no time left, and Meanwhile, a release of any also hopes that there is still chance Ukraine’s chances to sign the As- kind would allow Tymoshenko to to come to a decision. “If there sociation Agreement at the Vil- take part in the race. This is un- were no chance, we would not ex- nius Summit in November are acceptable for Yanukovych. So, tend the mission,” he said. Hannes fading. Ukraine should urgently chances to solve her issue by the Swoboda, Austrian EMP and demonstrate real progress. Oth- Vilnius Summit on November Chair of the Progressive Alliance erwise, the EU will not sign the 28-29 fade. Freeing her from of Socialists and Democrats Association Agreement based on physical imprisonment (even if Group, explained in his comment rhetoric alone,” Jacek Saryusz- this activates her participation in for The Ukrainian Week that Wolski said in an interview for Ukrainian politics from abroad) the EP expects Yanukovych to give The Ukrainian Week. is one thing. Opening a potential a clear signal that negotiations There is no clear information way to the president’s office is may have a positive outcome. This on what Tymoshenko talked about another thing: this could create positive outcome means doing for three hours with EU Ambassa- risks both for those in power, something to cut the verdict for dor Jan Tombinski and US Am- and the Family’s business. The Ms. Tymoshenko and let her go to bassador Geoffrey Pyatt on Octo- current president may consider Germany for medical treatment. ber 16. According to the official the stakes to be too high to sacri- Based on the meeting, Elmar version, they discussed what the fice all this for the Association Brok, Chairman of the EP Commit- ex-premier will do if Yanukovych Agreement.

17 October 1113 18 October 1918 21 October1833 Construction of Ukrainian MPs in the Austrian Parliament set up theU krainian National Alfred Nobel, Swed- Mykhailivsky Council, the highest legislative body of the WestU krainian People’s ish chemist, engineer, – St. Michael’s Republic, led by Yevhen Petrushevych in Lviv. The next day, it passes a inventor, activist, – Cathedral is decree on the establishment of the Ukrainian State on the ethnic Ukrainian philanthropist and the completed in territory that is part of the Austro-Hungarian Empire and asks ethnic mi- founder of the Nobel Kyiv norities to send their delegates in proportion to the population Prize, is born № 19 (61) october 2013|the ukrainian week|5 Politics|Election 2015 monenko – and the “return of the red plague” – so they elected Kuchma. Otherwise, they would never have voted for him. Unlike Kuchma, Yanukovych has a much wider choice of candi- dates in a second round. According to sociological surveys, he could Patriot win the election in a race against Svoboda’s Oleh Tyahnybok (by fu- eling the “brown plague” threat) or the Communist Party’s Petro Sy- monenko. Any of these scenarios would require Yanukovych to eliminate the most popular candidates at the Games finish line. There are two options. Today, these most popular candi- dates are Yulia Tymoshenko, UDAR’s Vitaliy Klitschko and Bat- kivshchyna’s Arseniy Yatseniuk. According to a survey by the socio- logical company, Research&Bran­ ding Group, Yanukovych would have got 20.8% if the election had taken place at the end of Septem- ber. Klitschko would have followed with 11.7%, Tymoshenko with 10.9%, Yatseniuk with 6.3%, Petro Poroshenko with 3.2% and Tyahn- ybok with 3.1%. Overall, this looks similar to the data published in spring by the Razumkov Centre (see Electoral preferences in spring and fall of 2013). No man – no problem Apparently, those in power will not allow Yulia Tymoshenko to run in the election. News has re- cently surfaced that Vitaliy Klitschko could also be eliminated from the race because he has not lived permanently in Ukraine for the past 10 years as required by Successfully tested by Leonid Kuchma over Ukrainian legislation. The Ukrai- nian Week’s sources claim that a decade ago, the below scenarios can help UDAR takes this threat seriously and is developing options for Yanukovych win the presidential race in 2015 counteraction. Experts note that this information could have leaked he promotion of Viktor Yan- Author: used by the unpopular President out because Bankova is not taking ukovych’s new image as a Oleksandr Leonid Kuchma in 1999 for Yanu- this scenario seriously. Otherwise, European integrator ready Kramar kovych in 2015. Back in 1999, Leo- this plan would have been kept se- Tto resist Moscow’s pressure nid Kuchma’s popularity was much cret until the very last moment. continues. The goal is for him to lower than Yanukovych’s today. Those in power may also be plan- win more voters in Central and However, after Viacheslav Chorno- ning to use this argument against even Western Ukraine, where pro- vil, a major politician who was ex- the single opposition candidate in European sentiments prevail. The pected to run as the main opposi- the first round – something Party of Regions – fierce oppo- tion candidate against Kuchma, fiercely promoted by UDAR mem- nents of all things Ukrainian and died in a car crash under suspi- bers since as the most popular op- Euro-Atlantic integration in the cious circumstances, and the Kaniv position candidate, Klitschko recent past – is radically changing Four fell apart, Kuchma managed would be that leader – in the first its rhetoric. to draw the leader of the Commu- round. Sociological surveys con- The media and experts have nist Party, Petro Symonenko, in the clude that if he is eliminated from long buzzed about the Bankova’s second round. As expected, most the race, his votes will most likely plans to repeat the scenario once Ukrainians fiercely opposed Sy- be distributed between Yatseniuk, 6|the ukrainian week|№ 19 (61) october 2013 Election 2015|Politics Tyahnybok, Poroshenko and Sy- would be to launch a trial and put Ukraine buzzed about the scenario monenko,. Arseniy Yatseniuk will him in jail. However, this is an un- of Yanukovych versus Tyahnybok, then get the vote of most of likely extreme scenario given its the latter insisted that “any opposi- Klitschko’s electorate. risk to Yanukovych’s image. He tion candidate in the second round The race against Yatseniuk still does not know how to solve the will be supported by the entire op- would also mean a defeat for Yanu- poorly orchestrated situation position”. However, sociologists kovych, according to the latest so- around the imprisonment of Ty- confirm that a large part of Klitsch- ciological surveys. Therefore, at- moshenko. ko’s and Yatseniuk’s electorate will tempts to eliminate Klitschko from again vote with their feet or against the race would be of little benefit all in the second round if those in for the Presidential Administra- The biggest risk for power fuel the “brown plague” hys- tion: it would automatically boost the opposition – and the teria around Tyahnybok, especially Yatseniuk’s chances of victory. So in South-Eastern and Central far, sociologists have reported that biggest chance for those in Ukraine. Yanukovych stands the best chance power – is the first round of winning the 2015 election in a Atomizing the opposition race against Oleh Tyahnybok. For So, virtually the only effective The biggest risk for the opposi- that, Yatseniuk has to be squeezed mechanism to eliminate Yatseniuk tion – and the biggest chance for out of the game as well. A standard and Klitschko from the game si- those in power – is the first scheme to do this could be to focus multaneously is to talk Yatseniuk round. This is where the regime on the conflicts within the united into supporting Klitschko in the may implement a scenario that opposition and add to it a wave of first round in exchange for, say, the will make massive falsification in 1 The Presidential Admin- mudslinging or accusations that istration is at Bankova premier’s office in a parliamentary the final round unnecessary and Yatseniuk is cooperating with the Street republic. After this, Klitschko may prevent anything like Orange 2 A group of four candi- government. However, these dates in the 1999 presi- be kicked out of the race based on Revolution. Moreover, it does not dential race made up of schemes have already been tested Yevhen Marchuk, Olek- the abovementioned legal provi- require the elimination of the and failed to give the desired effect. sandr Moroz, Volodymyr sion. This could happen late most popular opposition candi- Oliynyk and Oleksandr A wide-scale campaign of mud- Tkachenko, who intended enough to leave too little time for dates or Yulia Tymoshenko. The to nominate a single slinging against Arseniy Yatseniuk most popular candidate Yatseniuk to register as a candidate scenario is to dilute votes among may now have the opposite effect in the election. They met for the presidency. As a result, Oleh numerous opposition candidates to discuss this and call on and push him to the second round all candidates to lead a Tyahnybok would remain the only as much as possible and minimize fair campaign in Kaniv, as a candidate persecuted by those Cherkasy Oblast, hence eligible candidate of the top four their chance to even get to round in power. A more certain way the name opposition leaders. In spring, when two. It is possible to project now Politics|Election 2015 and Symonenko as an alternative to Yanukovych. Many voters who supported Yanukovych and the Party of Regions in 2004-2006 had previously churned high ratings for the Communist Party and Sy- monenko in 1998, 1999 and 2002. Now, when they no longer see Yan- ukovych as a president worthy of their trust and support, the oppo- site is likely to occur. After all, the Communist Party gained 13% in the 2012 parliamen- tary election. This was unexpect- edly high, even despite the admin- istrative leverage used by the Party of Regions in their core regions to gain a majority for itself. In the first round, those in power may not need to press the Communists The Kaniv Four: The disruption of the agreement to hard, since Yanukovych will be fine nominate a single candidate in the 1999 presidential with a considerable gap between election between Oleksandr Moroz, Yevhen Marchuk, Oleksandr Tkachenko and Volodymyr Oliynyk himself (24-25%) and Symonenko brought an easy victory for Leonid Kuchma over Petro (15-16%). Under the best-case sce- Symonenko in the second round nario, the four opposition leaders can get 45-50% together at most in the first round (the remaining 10- that the ballots will include such yet. And, if they have no alterna- 15% will be split among outsiders). people as Petro Poroshenko, Ana- tive, most Soviet-Russian voters, This means just 11-13% for each of toliy Hrytsenko, Viacheslav disappointed with the pro-Euro- the top four opposition leaders, Kyrylenko, Viktor Yushchenko, pean Yanukovych, will have to vote which hardly guarantees a victory Mykola Katerynchuk and other for Symonenko. Sociologists report for one of them over Symonenko unpopular candidates that may that the Party of Regions’ voters with his 15%. The same thing hap- still steal the leaders’ votes. A mostly opt for the Communist pened to the Kaniv Four candidates young and promising candidate Party as their second preference in 1999. like Serhiy Tihipko may pop up right before the election. United, the opposition elec- Ele oral preferences in spring torate outweighs that of Yanu- kovych. But fragmented between and fall of 2013 April-May 2013 data is based on a joint 10-12 candidates with ratings of (if the ele ion were to take place next Sunday, %) Yulia Tymoshenko survey by the over 1%, including 4-5 with po- Total Total Razumkov Centre tential support of more than 5% 37.2 37.2 Total and the Democratic (Tymoshenko, Klitschko, Yatse- 10.4 35.2 Initiatives niuk, Tyahnybok and Porosh- 12.2 Foundation. enko), it will leave much fewer 10.9 September 2013 Vitaliy Klitschko chances for candidates promoting results are based on a survey by the themselves as the government’s Total opponents to get to the second Research&Branding Total 25.7 round. As a result, Yanukovych Total Group (R&B Group) 23.7 13.5 which, of all exiing Arseniy Yatseniuk could end up running against 23.0 20.8 11.7 sociological communist Symonenko, forcing 18.3 17.6 12.0 companies, normally the voters to once again choose reports the highe between two evils. Should this support for the Party happen, the current rebranding of Regions and Viktor Oleh Tyahnybok of Yanukovych as a pro-European Yanukovych politician who has withstood Rus- sian pressure, will play a decisive 6.4 role in his race against the “Krem- 6.3 6.3 lin’s puppet” and the “ghost from Anatoliy Hrytsenko (April-May) the past”, Petro Symonenko. 3.1 Viktor Yanukovych Currently, Symonenko’s per- 4.6 5.4 4.7 sonal rating is way lower than that 5.4 4.9 3.2 of Klitschko, Tymoshenko or Yat- 2.3 1.0 seniuk. However, the campaign to Petro Poroshenko dilute opposition voters among po- April 2013 May 2013 September 2013 Petro Symonenko (September) litical outsiders is not in full swing 8|the ukrainian week|№ 19 (61) october 2013 B OOKST ORES KYIV 3, vul. Lysenka tel: (044) 235-88-54; 5,vul. Spaska tel: (044) 351-13-38, 33/2, Povitroflotskiy Prospekt tel: (044) 275-67-42 LVIV 7, Prospekt Svobody tel: (032) 235-73-68 VINNYTSIA 89, Soborna tel: (0432) 52-9341 TERNOPIL 7-9, vul. Valova tel: (0352) 25-4459 KHARKIV 3, vul. Sumska tel: (057) 731-5949 IVANO-FRANKIVSK 31, vul. Nezalezhnosti tel: (0342) 72-2502 VOLODYMYR-VOLYNSKIY 6, vul. Kovelska tel: (03342) 2-1957 www.book-ye.com.ua

ONLINE BOOKSHOP WWW.BOOK-YE.COM.UA/SHOP Politics|Government Control of Judges in the Name of Europe Under the cover of European integration, the government has pushed lobbied initiatives through parliament

ast week, the Ukrainian gov- Author: than the president, will form, re- majority of HQCJ members. ernment succeeded in steam- Oleksandr organize and disband courts by Moreover, the Prosecutor Gen- rollering through parliament Mykhelson passing a law in each individual eral, who remains a member of Lanother pseudo-integration case. However, MPs will no longer the HCJ ex officio, must not vote bill. It requires amending the appoint judges – this power will on issues pertaining to the re- Constitution and, if passed, will be transferred to the president. As sponsibility of judges. To Europe, fundamentally change the rules of a gift to the judiciary, the bill this points to a desire to separate the game for the judiciary. The raises, for judges, the minimum the Prosecutor’s Office from the document with the appealing title retirement age, qualifying age judiciary, but in Ukraine the for- “On Strengthening the Guaran- and duration of legal practice mer influences the latter in other tees of the Independence of needed for appointment. The al- ways than voting. Judges” is, in fact, an attempt to ready appointed judges will keep The bill also permits the HCJ strengthen authoritarian dicta- their offices and those who have to operate with merely two-thirds torship. A report by the Razum- passed qualification exams will be of its official membership present. kov Centre says that the bill, automatically promoted. The Thus, with deft maneuvering, the which was made public on 9 Octo- other parts of the bill are con- most powerful player, the Presi- ber, “clearly reflects a trend char- cerned largely with monitoring dential Administration, could acteristic of Ukrainian law-mak- judges’ performance. The presi- leave at least half of the judges on ing in the recent past, namely ex- dent will also have an exclusive the HCJ out of the game. Europe ploiting European standards to right to fire or transfer them be- indeed welcomes the idea of re- perpetuate and reinforce a non- tween courts. Appointments will moving any channels for parlia- democratic form of governance… be made on mandatory submis- ment to influence the judiciary. European standards are being es- sions from the Higher Council of This is not surprising, because sentially adapted to fit Ukrainian Justice (HCJ), while dismissals or from the European viewpoint, realities.” The sponsors of the bill transfers on that of the Higher parliament is a purely political in- are trying to exploit the blessing Qualification Commission of stitution, while politics should not from the Venice Commission, Judges (HQCJ). Transfers to interfere with administration of which indeed gave its general ap- higher offices are promised to be justice. proval, but this is due to insuffi- competition-based, but it is un- Paradoxically, pro-European cient or incorrect understanding clear what it will all look like. politicians and experts in Ukraine of the situation in Ukraine. Most importantly, who will influ- are forced to reiterate the dictum The core of the proposed ence whom between the president which their opponents like to use changes is as follows. Today, the and the HCJ? — it is inefficient to blindly and President of Ukraine forms, reor- The proposed new principles mechanically transfer European ganizes and disbands courts. He of forming the HCJ are a nod to practices to Ukrainian realities. also appoints first-time judges for Europe. Europe has recom- But there is more to this situation a five-year term. After that term mended that at least half of the – it is not merely an attempt by expires, every judge is appointed HCJ members should be judges. the Ukrainian authorities to make to office indefinitely by the - Verk Fittingly, the bill reserves 12 out good on their promises to the EU. hovna Rada unless he is voted of 20 the council’s seats for candi- Tellingly, the reforms of the Pros- down. If the bill in question is dates approved by a congress of ecutor’s Office and the Interior made into law, parliament, rather judges, which will also approve a Ministry, promised to Europe a

10|the ukrainian week|№ 19 (61) october 2013 In pursuit of European standards The bill in question was sponsored by the government and appears to be just one move in its long-term strategy of passing lobbied decisions under the appealing disguise of “adaptation to European requirements and standards”. This process was launched a long time ago and can be expected to intensify if the Association Agreement is initialed and starts being implemented. The government minds that come up with these legal novelties seem to be following a well-known Ukrainian folk saying which says that you can turn the law whichever way you please. For exam- ple, one prominent initiative of this kind was the new redaction of the LawO n the Election of People’s Deputies of Ukraine adopted on 17 November 2011. It introduced a mixed election sys- tem, removed the “against all” option for voters and barred blocs from participation. The pro- government working group which drafted the law launched an aggressive information cam- paign regarding approval from the Venice Commission. Eventually, only a handful of the com- mission’s recommendations were incorporated, but the Party of Regions declared at every cor- ner that the law had passed expert evaluation in the Venice Commission and was found to con- form to the European standards. In the 2012 parliamentary elections, it became an important tool for rigging election results and large-scale abuse in the way commissions were formed at various levels and votes were counted. Another salient example is the new Criminal Procedure Code (CPC) passed by the Verkhovna Rada on 13 April 2012. The justification offered was that Ukraine had commitments to conform to the recommendations and resolutions of the Council of Europe, the European Convention for the Protection of Human Rights and Fundamental Freedoms and the rulings of the European Court of Human Rights. However, the CPC actually incorporated a number of novelties that can be utilized in persecuting the opposition. For example, the code formalizes wiretapping and co- vert break-ins into apartments and houses. On 3 July 2012, the Verkhovna Rada passed the scandalous Law On the Foundations of the State Policy on Languages which led to another onslaught on the Ukrainian language and opened more ways to forcefully Russify Ukrainians. This has been done in the form of voluntary- forceful shutting of Ukrainian-language classes in a number of regions, such as Odesa, and the introduction of Russian as the “second foreign language” studied in schools. Ukrainian-speaking citizens have become victims of linguistic discrimination in official and government institutions in many regions; mechanisms for protecting Ukrainian in the press, the services sector, etc. have been blocked. The sponsors of the law found a nice cover for their evil intentions, claiming that Ukrainian laws had to be made to conform to the European Charter for Regional or Minority Lan- guages. On 20 November 2012, the Verkhovna Rada passed the Law On the Single State Demographic Register andD ocuments EstablishingU krainian Citizenship, Identity of a Person or His/Her Special Status. This is one of the most expensive laws lobbied by YeDAPS, a company specializ- ing in printing forms for documents. For example, under the law, “electronic” biometrical IDs are to be produced and a number of currently valid “paper” documents are to be replaced, in many cases without any real need. An explanatory note justifies this multibillion law (in terms of revenues generated for YeDAPS) as follows: “One of the key points of the Association Agree- ment between the EU and Ukraine is protection of personal data of physical persons and intro- duction of modern security levels for all identification documents issued by Ukraine.”

long time ago, are only slowly moving are higher. The new bill frees officials up the pipeline, while the bill in ques- in the Presidential Administration tion was circulated back when it was a from both problems. It removes the joke to speak of Viktor Yanukovych as five-year limit on the mandate held by the driver of European integration in the Prosecutor General. The current Ukraine. norm at least hints at regular rotation Having the power to appoint and — theoretically, the Prosecutor Gen- dismiss judges is an important op- eral must be re-appointed every five tion, both politically and economi- years through a procedure involving cally. Normally, (non-)appointment of both the president and the Verkhovna a judge by parliament depends, above Rada. Now this norm has been all, on the Verkhovna Rada Commit- scrapped altogether. The president tee on Justice, which has been perma- appoints, parliament approves, and nently chaired by Party of Regions the Prosecutor General can fulfill the member Serhiy Kivalov. This, of will of the president until fired, again course, is a “gold mine”. (Naturally, by the president. True, the Verkhovna we refer here only to the authority and Rada will also be able to dismiss him clout that this venerable MP has.) At from office by a majority vote, but the the same time, this is a headache for head of state is likely to make up his the Presidential Administration mind faster if necessary. which has to make deals with the par- The bill was passed by parliament liamentary committee regarding po- in a vote on 10 October, but amending tential judges. Incidentally, making the Constitution requires another one deals with the Verkhovna Rada about with at least 300 MPs committing. In a new Prosecutors General is no pic- other words, it now depends on the op- nic, either. This office does not come position whether the bill makes it

sketch by ihor lukianchenko by sketch up for grabs as often, but the stakes through parliament. economics|Oligarchs and taxes The Richest Pay Less While tycoons pay most of their taxes offshore, the budget crisis is escalating along with increasing tax pressure on non-oligarch businesses

Author: some have terminated produc- Income drain Lyubomyr Shavalyuk tion. However, not all companies Crisis developments began to ap- face the same difficulties. Income pear long before Q3 2012 statistics ith Ukraine’s economy and income tax dynamics show reported a decline in GDP and the in recession for over a that non-oligarch businesses are beginning of a new recession (see year now, companies left to struggle through the crisis Steady decline). From January Ware struggling to deal and satisfy the state’s growing fis- to June 2012, profitable enter- with the lengthy decline: some cal appetite while the biggest oli- prises reported a 16% decrease in are receding into the shadows, garch industries enjoy the best profits before tax compared to the others are reporting losses and tax privileges. previous year, while non-profitable companies reported a 48% in- crease in losses. This negative per- formance was initially confined to the industrial sector but was likely to spread to other sectors. Since then, corporate profits and the in- flow of corporate tax have been shrinking. This is due to several factors. Thanks to high grain prices and despite a poor harvest last year, agriculture boosted overall in- come. This trend is unlikely to con- tinue into 2013 since grain prices are falling even though the 2013 harvest is good. However, even if farmers’ income did grow, income tax revenue from agriculture would hardly change since farmers pay a flat tax. The financial and insurance sectors performed unexpectedly well: in 2012, their profit before tax hit UAH 49bn, which was UAH 18bn or 59% higher than the year before. Out of this, UAH 23bn was collected in Q4 2012. Where did this revenue come from if neither banks—with UAH 2.5bn higher profits before tax (UAH 9.7bn)— nor insurance companies (with a similarly moderate rise) contrib- uted to it? Since real tax inflow was recorded based on those amounts (the financial sector paid UAH 12bn more in income tax in 2012 compared to 2011), the boost in budget revenues was probably due to holdings, asset management companies and other profit cen- tres. In Q1 2013, however, they fell back: the finan- cial sector reported a slight rise in income and a loss of UAH 15bn, i.e. sevenfold from last year. Most Oligarchs and taxes|economics likely, this is not due to the intro- Tightening the screws the State Statistic Committee (see duction of an excise tax on securi- Ukrainian business is facing growing tax pressure but cannot Who’s paying the bill?). ties transactions or other govern- afford to cover it because of the crisis. As a result, this policy In 2012, industrial enterprises ment decisions. fails to boo corporate tax paid UAH 18.9bn or UAH 7.8bn In fact, the financial sector was UAH bn (29%) less than they paid in 2011 in not the only one that showed signs 150 Corporate Effeive tax rate 50% corporate tax. This is hardly sur- of recession in Ukrainian business tax revenues (right-hand scale)*** prising as the before-tax profits of in the first six months of 2013. Vir- 120 40% profitable industrial entities shrank tually all industries have gone Income* from UAH 107bn to UAH 86bn, through a painful 31% rise in losses 90 30% while non-profitable industrial (before tax) to UAH 78bn com- businesses reported a total loss of pared to the first six months of UAH 65bn compared to UAH 48bn 2012. Even retail trade which was 60 20% in 2011. Paradoxically, industrial an island of growth throughout enterprises reported growing reve- 2012 and part of 2013 reported 30 Loss** 10% nues: the 0.5% decline in physical 77% higher losses totalling UAH output was offset by a 3.7% rise in 16bn. Clearly, payroll cuts and a 0 0% product prices. If this is correct, the decline in sales will follow, further I II III IV I II III IV I II original cost of their products 2011 2012 2013 curbing tax revenues. should have risen as well. How- *Total profit before tax at profitable large and medium companies ever, since the prices of key im- After us, the deluge **Total loss before tax at unprofitable large and medium companies ported raw materials used in pro- ***Effeive corporate income tax is the ratio of government corporate Despite the visible decline of the tax revenues to total profit before tax at profitable large and medium duction (especially fuels) have vir- corporate tax base, tax pressure on companies tually not changed (due, among businesses has been growing for Sources: State Statiics Committee, State Treasury, own eimates other things, to the unchanging the past few quarters (see Tight- hryvnia exchange rate), what could ening the screws). This began have reduced the income of enter- last year when tax pressure was ab- dustries. This means that escaping prises and the taxes they pay? normally high during Q1-3 2012. the recession will depend on where Meanwhile, the problem is worsen- Effective tax rates were 29%, 36% external demand for the products ing: industrial enterprises paid and 24%, or 4-7pp higher than in of existing enterprises moves. Sec- UAH 4-6bn in taxes in previous 2011. In Q1 2013, it grew further to ondly, an excessive tax burden de- quarters, and just UAH 2bn in the 41%. Meanwhile, the basic income pletes working capital. Thus, entre- first quarter of 2013. tax rate envisioned by the 2010 Tax preneurs are pushed to turn to the Code was gradually decreased from financial sector where high interest The privileged caste 23% in 2011 to 19% in 2013. The rates make any business expansion Income tax revenues analysed by government uses this and some unreasonable. As a result, turnover industry signal that the taxes paid other positive changes in the tax and production stop, economic by oligarch-dominated sectors of legislation, such as fewer taxes and downfall continues and the tax the economy declined dramatically shorter time expenditures needed base depletes. in 2012. The drop was 87% in met- to fulfil tax statements, as a show- allurgy, almost 1/3 in chemistry case for international organiza- Who pays the bill? and 29% in mining. Overall, the tions. In reality, tax authorities use The tax pressure shown in statis- their own interpretations of the tax tics turns out to vary depending on Oligarchs report legislation and their powers to who is paying. Some industries are squeeze money out of businesses in perfect harmony with the tax au- losses while transferring and collect far more corporate tax thorities despite the crisis. This is most income payments than the companies' easy to see in the breakdown of profit suggests. corporate tax revenues by indus- to offshore areas In the first quarter of 2013, for tries. When The Ukrainian instance, most profitable SMEs Week asked the Ministry of Reve- two most oligarch-controlled in- paid advance taxes estimated in nues and Duties to provide infor- dustries – metallurgy and chemis- proportion to their income in the mation on individual sectors, it try – accounted for 11.3% of gross previous year rather than the tax only made excuses – apparently, it revenues in the Ukrainian econ- on their actual income. They were prefers to keep some things out of omy while paying only 2.1% of total obliged to pay 1/9 of their income the public eye. So we have made corporate tax. In metallurgy, the for 9M 2012 in January-February, approximate calculations based on gap was tenfold with 8% and 0.8% and 1/12 of their total 2012 income the available data. They reflect ma- in paid taxes. Their key argument for the following months. This jor trends in taxation fairly reliably. was that these industries faced the boosted the effective tax rate to a The below estimates of corporate biggest losses in the entire industry record 41%. tax paid by economic and indus- in 2012, losing UAH 16 and 7bn re- Tax inspectors may get very in- trial sectors in 2011-2012 are based spectively, so they claimed to have ventive in pumping money out of on a comparison of the financial no income to tax. businesspeople, but this tax strat- performance of large and medium However, their financial state- egy will have a destructive effect in enterprises before tax (the esti- ments help to clarify the situation: the longer run. First, such an envi- mates cover 83% of all products they pay most of their taxes off- ronment does not encourage peo- sold by commercial entities) and shore. Viktor Pinchuk’s Interpipe ple to start new businesses or in- their net income as published by paid just 12% of its total taxes in № 19 (61) october 2013|the ukrainian week|13 economics|Oligarchs and taxes 2012 in Ukraine. The remaining Who’s paying the bill? 88% went to the budgets of differ- Changes in corporate tax revenues show that non-oligarch businesses are paying a disproportionately large share of taxes ent countries through different schemes. Unlike Interpipe, steel , UAH , UAH 2012 bn 2012 bn giant Metinvest did not provide a regional breakdown of the corpo- 3.0 1.4 rate tax it paid last year in its 1, UAH , UAH 201 bn 2011 bn statement. However, all of the 2.1 group’s Ukrainian plants (nine, 5.8 1.4 except for ZaporizhStal, which 18.9 4.1 Indu ry* Mining* Metinvest controls since 2012) Food Retail trade 6.9 paid total corporate tax of USD 12.2 Chemi ry* Transportation 9.7 266mn, and only USD 166mn of 26.7 Metallurgy* this in Ukraine – this came mostly 23.7 and communications Engineering from mining plants. Financial seor 4.3 Elericity, gas Others 4.0 and water Ukraine’s economic recession 7.9 is systemic and comprehensive: Others 2.5 as of mid-2013, business profit- 3.5 9.5 1.2 ability was falling in virtually all 9.5 sectors. However, not all busi- 0.4 0.8 nesses face equally burdensome 6.9 3.3 effects. Oligarchs are reporting losses in Ukraine while transfer- ECONOMY INDUSTRY ring most income offshore and paying taxes there. This results in E imates of corporate tax revenues to the consolidated budget of Ukraine. The data is approximate. It shows the difference a steep decline in the revenues between the pre-tax earnings/losses of large and medium enterprises and net income/losses of large and medium that the Ukrainian budget gets enterprises, including banks from their assets. The govern- *Oligarch-controlled indu ry Sources: State Stati ics Committee, NBU, own e imates ment is trying to offset this through increased tax pressure rescuing the state’s budget during reserves. In reality, they remain a on non-oligarch sectors. For ex- the worsening economic crisis. privileged caste that barely pays ample, the food industry paid any taxes. Meanwhile, the taxes 33% more corporate tax in 2012 What can be done? paid by everyone else enrich enti- than it did in 2011; engineering Many widely promoted myths ties close to the government and plants paid just 8% less than in portray oligarchs as a crucial ele- oligarchs through profoundly cor- 2011 although their income had ment of Ukraine’s economy that rupt public procurement schemes. plummeted even lower. Together fills the budget and international As a result, Ukraine’s economy is with retail trade (-1%) and con- like a sinking Titanic where those struction (+27%), these entrepre- Steady decline in power push the non-oligarch neurs are bearing the brunt of the Profitable businesses lose income and unprofitable ones report business to the lower decks while Ukrainian business sector’s grow- more losses. A eep rise in loss of retail trade will result in rushing to the lifeboats with their a recession on this island of ability ing tax burden as oligarch-con- oligarch friends. trolled industries evade it. 150 Profit before tax, In the current situation, UAH bn In addition, non-oligarch Ukraine needs policies focused on businesses pay most VAT unlike 120 driving economic growth. This steelworks and chemical plants. must be based on three major ele- Meanwhile, oligarchs have the 90 ments: necessary leverage to get full VAT The first is to stop or strongly reimbursement for the products 60 restrict corruption in public pro- they actually export, and proba- curements, which outprice the rev- bly faked exports as well. In 2012, enues from all taxes and duties in the amount of reimbursed VAT 30 Ukraine. was well above even half of the The second is to expand the tax value-added tax paid by Ukrai- 0 base, cancel privileges for oligarch nian producers (UAH 46 and businesses close to the government 83bn respectively). Ultimately, -40 and gradually cut the effective tax the lion’s share of taxes is paid by rate for enterprises to facilitate Ukrainian citizens not only -80 their development. through personal income tax Loss before The third is to switch from pag- tax, UAH bn (UAH 68.4bn) but through VAT -120 eantry to real efforts to prevent on most imported goods (over Jan-Jun* Jul-Dec Jan-Jun* Jul-Dec Jan-Jun* schemes whereby incomes and cap- UAH 101.6bn). These taxes are 2011 2012 2013 ital end up abroad. The key missing paid by millions of ordinary Agriculture Trade Financial seor ingredients here are political will Ukrainians from SMEs, health Indury Transportation Others and the transformation of Ukraine’s and communications care and education systems and *Jan-Jun profit does not include performance of small enterprises and mo agricultural oligarch economy into a market other public-financed sectors companies while yearly atements do one. Apparently, the current regime forced to deal with the burden of Sources: State Statiics Committee, own eimates will never possess these. 14|the ukrainian week|№ 19 (61) october 2013 Oligarchs and taxes|economics An Update on Ukraine’s Robber Barons

Stru ure through which Manipulation control is exerted Unfair pricing. of public Market Possible sale of assets wholesale opinion Market share (eimated) to Russian ruures, including those that are close to Gazprom, which has long From Media Consequences of the expressed intere in gas supply to end blocking share outlets high concentration of assets consumers. This jeopardizes Ukraine’s holdings (TV channels national security by exposing it to external to controlling Inter, K1, K2, energy, and hence political control. The risks akes in local NTN, etc.) are higher in case of the possible gas di ribution escalation of conflis GDF companies in cities with the president’s Media and obla s limited family. TV network At the end of 2012, covering UAG controlled Gas supply 95% 48% to end of the country of the airline market consumers Dmytro and UIA had over Firtash DF Group 30% Struggles for control over the Unfair banking rategic titanium indu ry all fees and the manipulation Blocking 2013. Firtash already controls of loan intere rates which make foreign airlines, including all produion but has so far clients involuntary slaves to credits. In Produion low-co airlines, from entering failed to privatize extraion some cases, forcing services on clients such of fertilizers Ukraine’s market. facilities because the Family as when PrivatBank only accepts payments Maintaining a low quality demands a share. In response for utilities from its own bank cards holders. of services to this, he ops titanium Low-quality services. and unju ifiably high Ignoring the 100% plants to ifle the Family’s A fight over the group’s bank assets or of ammonium prices for airline Ihor Kolomoisky need to modernize appetites which has nowhere a financial turmoil in PrivatBank could nitrate produion tickets. produion facilities because of high to sell the extraed raw trigger a bank run which elericity prices, the loss of components MAU (Ukraine in turn could cause the entire competitiveness International Airlines, market to collapse on international markets and UIA) now owns mo assets a desire to set it off with unfair pricing Banking of the Ukrainian Aviation on the dome ic market. The threat that Privat services Group (UAG). It assets could be sold to Group (PrivatBank) disappeared after its 13% gas-supply companies, companies – AeroSvit, of Ukraine’s including those close DniproAvia and banking sy em to Gazprom. Up to Donbasaero – went bankrupt. 23% 20% Media outlets of total Ukrainian deposits of liquid gasas (1+1 group, supplies UNIAN, etc.) 30% Ea ern of bank cards A number European Fuel TV network covering The bigge of experts consider and Energy Considered network of offices SEPEK to be the monopoli Company owned to be the front man for the Manipulation since 2013; based 95% and ATMs among and organizer of the shadow Family (Fir Vice Premier of public on Gas Ukraine of the country and over privately owned banks market for liquid gas and SSerhiy Arbuzov, Mini er of opinion company gasoline in Ukraine. The Revenues and Duties 25% Oleksandr Klymenko and Over shadow gasoline market is of a con ant audience e imated at 30% ppartly Viktor Yanukovych’s SEPEK son Oleksandr). 50% kuziacat of the iron Nearly ore market 50 media brands including top Over 46% magazines, the of the bigge Internet 50% Extra ing energy baking-coal portals and a number Serhiy of coal resources (primarily Over of radio ations Kurchenko produ ion coalmining), Ukrainian Brok- Nearly the generation of ele ricity, Iron ore mining, 40% Media of the metal Business- two-thirds its supply and produ ion Holding of power sale to consumers. of baking produ s Control over Bank (UMH) Odesa Oil generation A monopoly on ele ricity coal and the market the top print media does by thermal exports manufa ure not allow them to Refinery inve igate and analyze power ations of metal produ s Hampering the Expes anything related to the se or’s modernization to control Family’s and the 100% and hence making Ukrainian President’s intere s of ele ricity metal less competitive on international 12% exports markets. The pursuit of monopoliic of gasoline Metinve market in Ukraine DTEK profits and extensive expansion through Hampering the the purchase of new assets. Imposing se or’s modernization, monopoliic raw materials TV network unfair pricing, deteriorating Rinat prices on other players, covering quality of services and limiting Akhmetov in order to force them access to the market for new players. off the market Manipulation UkrTelecom The threat of selling assets of public 95% opinion of the country of rategic national security and over significance to Russian Media outlets Ukraina Monopoly companies in case of confli (Ukraina Television Media control of landline 30% with the president’s and Radio Group telephones and Media outlets of the audience Broadcaing family the highly (TV channels aged 18-54 Company, Segodnya promising 3G STB, ICTV, newspaper, Manipulation etc.) New Channel, of public etc.) opinion TV network covering 25% StarLight Viktor 95.6% of all Internet users; Media Pinchuk of the country and over 13% 32% of the mobile conne ion of the audience aged 35-54 market through mobile operator Life № 19 (61) october 2013|the ukrainian week|15 economics|end of globalisation The Gated Globe Governments are putting up impediments to globalisation. It is time for a fresh wave of liberalisation magine discovering a one-shot boost for the world’s economy. It would re- vitalise firms, increasing sales and Iproductivity. It would ease access to credit and it would increase the range and quality of goods in the shops while keeping their prices low. What economic energy drink can possibly deliver all these benefits? Globalisation can. Yet in recent years the trend to greater openness has been replaced by an enthusiasm for building barriers—mostly to the world’s detri- ment. The worst did not happen… Not so long ago, the twin forces of tech- nology and economic liberalisation seemed destined to drive ever greater volumes of capital, goods and people across borders. When the global finan- cial crisis erupted in 2008, that hubris was replaced by fears of a replay of the 1930s. They were not realised, at least in part because the world had learnt from that dreadful decade the lesson that pro- tectionism makes a bad situation worse. Yet a subtler change took place: un- fettered globalisation has been replaced by a more selective brand. As our special report shows, policymakers have become choosier about whom they trade with, how much access they grant foreign in- vestors and banks, and what sort of capi- tal they admit. They have not built imper- meable walls, but they are erecting gates. That is most obvious in capital mar- kets. Global capital flows fell from $11 trillion in 2007 to a third of that last year. The decline has happened partly for cycli- cal reasons, but also because regulators in America and Europe who saw banks’ for- eign adventures end in disaster have sought to ring-fence their financial sys- tems. Capital controls have found re- spectability in the emerging world be- cause they helped insulate countries such as Brazil from destabilising inflows of hot money. Sparingly used, capital controls can make financial systems less vulnerable to contagion, and crises less damaging. But governments must not forget the benefits of financial openness. Competition from foreign banks forces domestic ones to 16|the ukrainian week|№ 19 (61) october 2013 end of globalisation|economics compete harder. Ring-fencing banks and imposing capital controls protects from contagion, but also traps savings in countries with little 229.7 use for them. -60.3 EASTERN Trade protectionism cannot 954.2 EUROPE claim the justifications that capital -86.1 controls sometimes can. Fortu- 909.3 WESTERN nately, the World Trade Organisa- EUROPE -65.5 tion (WTO), the trade watchdog, 1135.9 AMERICAS prevents most ostentatious protec- -28.9 tionism, but governments have de- 128.7 42.2 ASIA veloped sneaky methods of avoiding -66.0 -66.5 its ire. New impediments—subsi- MIDDLE Regional capital AFRICA EAST dies to domestic firms, for instance, inflows Capital local content requirements, bogus 2012 inflows, % change health-and-safety requirements— USD bn 2007-12 have gained popularity. According % Above 150 0 to -49 to Global Trade Alert, a monitoring No data % change 100 to 149 -50 to -99 service, at least 400 new protection- 2007-12 50 to 99 -100 to -149 ist measures have been put in place 0 to 49 Below -150 *Foreca each year since 2009, and the trend 30 is on the increase. World exports, as % of GDP Sources: IMF; McKinsey Global In itute; Big emerging markets like Bra- The Economi zil, Russia, India and China have 25 displayed a more interventionist ap- proach to globalisation that relies on industrial policy and govern- 20 ment-directed lending to give do- mestic sellers a leg-up. Industrial policy enjoys more respectability 15 than tariffs and quotas, but it raises 1980 1985 1990 1995 2000 2005 2010 2013* costs for consumers and puts more efficient foreign firms at a disadvan- …but it could be so much better pointed. The latter two have suf- tage. The Peterson Institute reckons Gate-building does not cause fered sharp falls in their currencies. local-content requirements cost the much outrage. Yet it is worth re- Some countries have counted the world $93 billion in lost trade in membering what opportunities are cost and are opening up. China’s 2010. being lost. In 2013 the value of new leaders are tiptoeing towards Attempts to restore the momen- goods-and-services exports will run looser rules for foreign capital and tum of free trade at a global level to 31.7% of global GDP. Some big getting behind a push for a modest foundered with the Doha round of economies trade far less: Brazil’s to- global trade deal. Mexico plans to trade talks. Instead, governments tal exports are just 12.5% of GDP. readmit foreign investors to its oil are trying to do so through regional Increasing that ratio would deliver a industry in an effort to boost out- free-trade agreements. The idea is shot in the arm to productivity. put. Japan hopes that the TPP will that smaller trade clubs make it eas- Trade in services is far lower than in shake up its inefficient sectors, com- ier to confront politically divisive is- goods; and even in goods, embar- plementing fiscal and monetary sues. The Trans-Pacific Partnership rassing levels of protectionism sur- stimulus. (TPP) that America, Japan and ten But the fate of globalisation others hope to conclude this year depends most on America. Over aims to set rules for intellectual- The moribund world the past 70 years it has used its property protection, investment, economy needs some clout to push the world to open state-owned enterprises and ser- up. Now that clout is threatened vices. of the magic that by China’s growing influence and Regional free-trade deals are a globalisation can deliver America’s domestic divisions. mixed blessing. Designed well, they Barack Obama’s decision to skip can boost liberalisation, both by vive. America tacks a 127% tariff on an Asia-Pacific leaders’ summit in cutting barriers in new areas and by to Chinese paper clips; Japan puts a Bali to battle the government spurring action in multilateral talks. 778% tariff on rice. Protection is shutdown at home was ripe with Done badly, they may divert rather worse in the emerging world. Bra- symbolism: China’s and Russia’s than expand trade. Today’s big zil’s tariffs are, on average, four presidents managed to attend. Mr deals are probably a net positive, times higher than America’s, Chi- Obama must reassert America’s but they may not live up to their na’s three times. economic leadership by conclud- promise: in the rush to sign a deal, © 2013 The In the past year the cost of im- ing a TPP, even one with imper- TPP participants look likely to ac- Economist pediments to trade has become fections, and force it through Con- cept carve-outs for tobacco, sugar, Newspaper clearer. Few countries have put up gress. The moribund world econ- textiles and dairy products, dimin- Limited. All more gates than Russia, India and omy needs some of the magic that ishing the final deal. rights reserved Brazil; growth in all three has disap- globalisation can deliver. № 19 (61) october 2013|the ukrainian week|17 focus|ARMY WHO WILL PROTECT US? Squeezed between two power blocs, Ukraine will inevitably join one. It cannot afford its non-aligned status and the upcoming military reform will not help

Author: efence Ministry officials and conflict in this decade, in which Switzerland, with the population of Roman Malko, experts close to it insist that non-aligned Ukraine may have to 8 million, has a constantly growing Andriy Duda Ukraine is currently not in take part. Neighbouring countries defence budget (USD 4.83bn in Ddanger of any serious con- are another source of potential 2011 and USD 5.45bn in 2012). flict that could escalate into a mili- threat. A recent example is the With the reserve military person- tary operation, so there is no need Russian invasion of Georgia in nel summoned to training for sev- to panic. Ukrainians should feel 2008. eral weeks every year Switzerland safe, they say - nobody is going to To maintain its current non- can gather a 650,000-strong army attack them. They also claim that if aligned status, Ukraine has to within four hours and a 1.7 million- necessary, international treaties speed up modernization of its strong one within two days. Swe- guarantee foreign help for Ukraine. army, increase spending on the den with the population of 9 mil- Other experts, including Ihor military training and buy new lion plans to spend USD 6.1bn in Teniukh, Chief Commander of the weapons. Most non-aligned Euro- 2013 on defence. Finland with 5 Ukrainian Navy in 2006-2010, see pean states are fairly highly milita- million people spends twice as great likelihood of a global military rized and spend much on defence. much per capita as the 45-million EXPERT OPINION Ihor Teniukh, Chief Com- years; it is taking steps to rearm the army and Meanwhile, the situation in Ukraine’s de- mander of the Ukrainian the navy; its policy on the subordination of fence sphere is critical. The key problem is Navy in March post-Soviet states, particularly Ukraine, is grow- that the Armed Forces are not part of the 2006-March 2010 ing tougher (take the 2008 intervention in counterbalance system. The Interior Ministry, Unfortunately, we have Georgia). Officials talk of the possible use of the SBU (Security Service of Ukraine) and the reason to agree with the nuclear weapons and withdrawal from interna- Prosecutor play a major role in it. In addi- experts who believe that tional treaties on limitation and reduction of tion, the military is seen as a superfluous ele- a global military conflict is arms. The major factors fueling threats to our ment from the viewpoint of politicians and possible in this decade – country include the critical decline of our capac- their interests. The worst part is that the there are grounds for it so it will only take a ity to protect Ukraine which may be used to put Army has already exhausted its capability to nudge to bring intent to life. Russia’s militarist pressure on it; and unresolved issues linked to maintain battle-readiness with just minor policy has been significantly reinforced: it has the temporary stay of the Russian Black Sea tweaks. The ill-grounded approach to form- activated its presence in the Persian Gulf and Fleet on Ukrainian territory, as well as the ing the military, particularly the declared the Mediterranean for the first time in twenty shortcomings in the relevant legal framework. large-scale downsizing of the military

18|the ukrainian week|№ 19 (61) october 2013 ARMY|focus Ukraine does. Its 2013 defence Misleading prote ion budget was USD 3.72bn including Poor and ineffeive financing prevents the Ukrainian Armed Forces from fulfilling their over 25% on arms upgrade. How- funions properly ever, even they have had heated de- 3.0 Required by the Defence bates to quit their non-aligned sta- of Ukraine law tus and join the NATO over the past few years. Ukraine cannot af- 2.5 ford their scale of defence spending given its permanent budget deficits 2.0 and economic stagnation. The Average share of GDP spent on the military in developed countries more the government spends on the military, the more it will have 1.5 1.6 1.48 1.54 to cut on social spending. This is 1.46 1.18 1.12 not an option in the face of the up- 1.35 1.34 Military spending as % of GDP coming elections. 1.0 Critically low funding that results in military degradation 1.00 0.98 0.98 This fall, the government ap- 0.91 0.97 proved a new reform programme 0.5 that entails abolition of annual con- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 scription, reduction in military per- sonnel and a switch to the volunteer Source: public sources and estimates by Ihor Teniukh professional contract-based army in 2014 (see A Volunteer Army: 2015 and USD 105.2bn in 2016. By military: USD 3.4bn in 2013. Plus, Beyond Alliances and Quality 2020, it is planning to modernize it is implementing a three-stage re- Standards on p. 20). Many con- 70% of its weapons. The military armament plan: the first stage was sider this to be a serious mistake, budget of Poland, Ukraine’s biggest completed in 2007, and the other although they also claim that the European neighbour and NATO two will be in 2015 and 2025. current system needs significant re- member-state with the population Experts claim that Ukraine form. A relatively small army of vol- of 38.4 million and a 120,000-strong should determine the percentage of unteer servicemen, no matter how volunteer professional army, is GDP that it will allocate to the mili- professional, cannot protect a coun- USD 8.5bn in 2013. Its plan for tary in the legislation, and actually try from military aggression effec- stick to it. The ideal share that tively. So, Ukraine will hardly man- would allow Ukraine to catch up age to keep its non-aligned status Even if the government with its neighbours is 5%. This much longer. It will join one of the increased funding for would cover full rearmament and a existing military alliances inevitably the military, most gradual upgrade to the level that photo: reuters photo: – this only a matter of time. the military of Ukraine’s neigh- Today, the Ukrainian army of it would be stolen. bours have. However, the afford- needs USD 3-3.7bn annually at the able share today is 2%. very least, to maintain its current So, a radical overhaul Another thing experts point at potential. Instead, the planned mil- of its system is needed is that even if the government in- itary spending in 2013 is USD creases funding, most of it will be 1.8bn of which 83.2% (USD 1.5bn) stolen. So, a radical overhaul of the is for maintenance while the mea- technical upgrade by 2022 pro- military system and structure is ger 6.4% (USD 0.1bn) is for train- vides for nearly USD 45bn to be needed. One option is to segregate ing and 10.4% (USD 0.2bn) is for spent on rearmament with aviation the functions of the Armed Forces arms upgrade (see Misleading as the main focus. Ukraine’s sec- Headquarters and the Defence protection). ond biggest European neighbour Ministry into combat operations Meanwhile, Ukraine’s neigh- and another NATO member-state, and administrative management bours undergo intense militariza- Romania, with the population of respectively. This would prevent tion. The military budget of Russia 21.8 million and the army of overlapping, lower the level of cor- is USD 71.2bn in 2013 and is 90,000, plans to spend almost ruption and bring basic order to planned to grow to USD 96.4bn in twice of what Ukraine does on its the army. EXPERT OPINION through the upcoming reform, is dangerous. supported by a due legal framework, the re- the due moral and psychological condition of Even a quick look at the measures listed in form whereby the size of the military will be re- the military as an important indicator of bat- the Army Development Concept proves that duced is a way to nowhere. As a result, tle-readiness. The moral and psychological these will not be implemented, since the Ukraine’s Army will, at best, be an accessory for condition is below poor. Why? Because ser- funds projected for them will not be suffi- our sovereignty. vicemen don’t believe that the state, com- cient. manders, let alone the government, need Such plans show how the government seeks Leonid Poliakov, expert them. The parliament which does not want simple ways to solve complex issues. We at the Centre for Army, to finance their needs doesn’t need them ei- can claim confidently that the listed goals Conversion and Disarma- ther. How much does the government plan will be accomplished only partially, while ment Studies to spend on housing for the military? Noth- the “reforms” will do more harm than Weaponry and machin- ing. What else can be said? What other coun- good. ery are undeniably im- try, even a post-Soviet one, has such a wait- Without proper innovative armament and the portant, but there is no ing list for housing that is as long as redistribution of functions and responsibility point in them without Ukraine’s?

№ 19 (61) october 2013|the ukrainian week|19 focus|ARMY Ukraine. In the long run, however, disappointment may follow, and many volunteers are likely to leave A Volunteer Army: the army. The populism tradition- ally used for the military throughout the years of independence and promises not grounded on sufficient Beyond Alliances and resources may take a heavy toll on the country. With time, Ukraine may end up with much of the tax- Quality Standards payers’ money wasted on disap- pointed servicemen who will quit the army eventually, and depleted The new military reform entails a transfer military professionalism since no volunteers will be willing to serve to a volunteer professional army in 2014 and longer than three to five years. Last year, the Chief of Staff of a significant reduction in military personnel. the Ukrainian Army, Volodymyr Za- In reality, it seems to be nothing more than mana, mentioned that the wage for contract-based servicemen would an attempt to save money reach USD 750-800 starting from 2014. However, the state budget ally, this should provide Ukraine will most likely afford to pay what with a smaller but highly profes- Defence Minister Pavlo Lebeved sional and well-equipped army. The promised this August. According to planned total of personnel will be him, the pay for a contract infantry 122,000, of which nearly 70,000 soldier will be UAH 3,005 (USD men are combat troops and 50,000 370), UAH 3,641 (USD 449) for unit are in maintenance. Today, accord- commander and UAH 4,340 (USD ing to various estimates, there are 535) for a tank commander from nearly 180,000 people in the Ukrai- July 1, 2014. The wage for officers is nian military, with 100,000 in supposed to increase as well. The maintenance and 80,000 combat government may indeed manage to troops. pay this before the election. How- ever, it is hardly comparable to Illusionary self- wages in Russia (nearly USD 1,600 sufficiency for a lieutenant) or over USD 4,000 The new professional army should for an officer in Germany. be based on contract service, and Another potential problem is the state is supposed to provide rel- what to do with those transferred to

photo: U nіаn photo: evant incentives for people to join it. reserve units? Many of the military These include financial rewards, are ill-fit for civilian life since their Author: t the beginning of this fall, housing, employment benefits and only skill is to protect their country. Volodymyr yet another State Pro- opportunities to train with new The estimated number of those be- Kopchak, gramme for the Reform and weapons and technology. Proper coming reservists in 2013-2017 is Center for ADevelopment of the Ukrai- patriotic education is necessary, nearly 42,000. Only 21,000 of them Army, nian Armed Forces was passed. too. Overall, military service should (with 10 and more years in service) Conversion This one covers the years through become interesting and rewarding. will be entitled to the state adapta- and 2017. Today, however, the wages of tion programme. Preliminary esti- Disarmament The text of the programme has Ukraine’s Armed Forces contract mates show that it will cost the gov- Studies not been disclosed yet, but the la- serviceman ranges between UAH ernment over UAH 100mn. It is un- (CACDS) conic yet resolute statements of the 1,463 and UAH 2,926 (USD 180- likely to spend that much, however: Defence Minister, Pavlo Lebedev, 360). This is below the existing av- the 2013 budget programme for the have shed light on the strategic erage wage of UAH 3,000 to UAH professional upgrade of social de- changes that the military will un- 3,304 (USD 370-408). Still, we may fence employees and social adapta- dergo under the latest Army 2017 soon see an intense promotion cam- tion of reserve military staff entails project. The major aspect of the re- paign for contract-based military UAH 50,000. form is the inevitable and complete service, and a flow of new promises Moreover, the functions of the switch from mandatory annual con- to increase financing for the mili- social and professional adaptation scription to a volunteer contract- tary. Politically, the timing is perfect of the military have been taken based service. According to official as the 2015 presidential election away from the Defence Ministry statements, this change will occur campaign has already kicked off un- and transferred to the Social Policy next year, so the conscription cam- officially. Ministry. With just one section paign that kicked off on October 1 Initially, it is likely to draw quite comprised of six people within the will supposedly be the last of this a few volunteers, given the high un- Department for Social Protection of kind in Ukraine. Another innova- employment among young people, Chornobyl Victims and Other Cate- tion is significant downsizing. Ide- especially in the rural regions of gories (the military are listed as 20|the ukrainian week|№ 19 (61) october 2013 ARMY|focus

Other Categories), it is unlikely to 10 be able to effectively deal with the Albania 19700 Military spending in Ukraine influx of former servicemen. As a result, many of them may find 29 and some NATO themselves forgotten by the state. Bulgaria 26140 member- ates Some will go to the security services 16 60625 of Ukrainian business owners and Croatia Personnel, ‘000, 2011 tycoons who have by now formed 23 thousands-strong private armies Czech Republic 106435 that can well be viewed as a threat Spending per 1 member 6 of military personnel, to national security. Others will end E onia 64835 2011 up on the streets. Given their expe- rience with weapons, they could 227 pose another threat. France 235440 *Aual spending. Average hryvnia 205 exchange rate Illusionary Germany 234830 Source: official atiics professionalism 124 Over many years of attempts to cre- Greece 51815 ate an army with a new format in 19 Ukraine, the concept of switching Hungary 72530 from national to contract-based ser- vice has been confused with profes- 192 sionalism. These two things are not Italy 157415 always identical. A well-trained mil- 5 itary, regardless of enlistment pro- Latvia 57800 cedures, plus modern weapons and 39 technology, are two fundamental el- Portugal 92590 ements of a professional army. In 100 other words, Ukraine should now Poland 89080 think about a professionally trained 66 army with daily training that uses new or modernized equipment, not Romania 36065 just a contract-based army. How- 16 ever, Ukraine is not planning a Slovakia 66565 large-scale overhaul of its weaponry 7 anytime soon. On paper, authorities Slovenia 95000 allocate huge sums for rearmament, 127 but this year’s defence budget pro- Spain 110115 vided just about USD 111mn to buy 495 new weapons. Meanwhile, Ukraine needs at least USD 500mn annually Turkey 29255 to actually rearm its army effectively 192 – and these are optimistic esti- UK 331080 mates. This amount is scheduled to 1427 increase to USD 1.2bn by 2017, USA 512880 when the supply of new weapons for 180 the Armed Forces, including that Ukraine 11985 being currently developed by local engineers, is scheduled for. There is no certainty with the unable to place enough orders for of the year. The situation was no dif- three long-term military engineer- Antonov, the aircraft manufacturer, ferent in 2012 with UAH 16.3bn ing projects: the Sapsan Tactical to be able to finish the project. The (USD 2mn) being estimated for allo- Missile System; the An-70 military first Korvet should be completed by cation and UAH 14.7bn (USD 1.8bn) transport aircraft; and the multi- the end of 2015. However, the issue actually being allocated of the nearly purpose battleship Korvet. The of the weaponry it will be equipped UAH 20bn requested. The Defence military recently stopped Sapsan – with is still open. As a result, it could Ministry’s request for UAH 24.5bn thus taxpayers’ money has long be launched without armaments. (USD 3bn) for 2014 will obviously been wasted with zero outcome, Overall, the Defence Ministry’s follow suit. After the President ap- and it is unlikely that someone will financial needs have never been fully proves the State Complex Pro- be held responsible for this. The met throughout the years of inde- gramme for the Reform and Devel- system was supposed to become pendence, even though the military opment of the Armed Forces virtually the only instrument of pro- always requested less than they Through 2017, the military will re- tection from possible military ag- needed. In 2013, the defence budget ceive similar resources to keep more gression in a non-aligned Ukraine. was UAH 15.6bn (USD 1.9bn) of the servicemen afloat for five more An-70 became yet another bargain- necessary UAH 20bn (USD 2.5bn). years. Experts are convinced that the ing chip in the political confronta- It is still unknown whether the whole army reform will fail with a budget of tion with Russia – alone, Ukraine is amount will be allocated by the end under USD 2bn. № 19 (61) october 2013|the ukrainian week|21 neighbours|Opinion Recipes for Consolidation Sarmīte Ēlerte, ex-Minister of Culture of Latvia, talks about the successes and challenges in integrating the Russian-speaking community in Latvian society

will always be the case. European funding is a short-term incentive; it should be understood mean- while that no one is obligated to help or pay for you. This is your country. As far as Ukraine is con- cerned, I think you have to choose whether you want to live under democratic standards, which pro- vide for the huge personal re- sponsibility of every member of society, or in a post-Byzantine, or more accurately, a post-Soviet, country. These things do not mix. Ukraine’s problem lies in the lack of social agreement regarding what the state should look like. Russia or the EU – this is not simply about formal relations, it’s a civilisation choice. Europe is based on the tradition of respect of law and individuality devel- oped and in operation over many centuries. Laws do not work in post-Soviet conditions. We have a common policy with the EU. Latvia is a small country and cannot be neutral next to such a giant as Russia. In 1990, the latter declared that it Interviewer atvian politician and ex-Min- country face during the Euro- will no longer buy our sprats. Iryna ister of Culture, Sarmīte pean integration process? This was a significant component Panchenko Ēlerte asserts that the big – Latvia’s greatest achieve- of our export, and it’s a good Lcapital of oligarchs cannot ments during its years of EU thing that we immediately turned have legal origins, while handouts membership have been the devel- to the European market. Quality to whitewash themselves cannot opment of institutions and sys- requirements there were com- justify robbing society. “Business tems that help us overcome cor- pletely different, and this also is something completely differ- ruption successfully. I’m not say- played an important role in our ent,” the 56-year old politician ing that we don’t have problems. competitiveness. feels. Stolen money will always be The greatest difficulty is to teach used for discord and resistance to each individual Latvian to have a UW: It seems that the Russians democratic changes in the coun- sense of responsibility. The state that live in Latvia are very differ- try. Ēlerte’s personal achieve- must create a viable system, but it ent from those living in Russia. ment lies in the fact that the very is each citizen that has to be re- Have you managed to fully inte- notion of oligarch has forever lost sponsible for his or her own edu- grate them in society? What any positive or even neutral con- cation, development, financial were your successes and miscal- notation in Latvian media space. status and way of life. Free press, culations? The country’s mass media no lon- an independent judicial system, First of all, what went on in ger calls these people successful competitive business and quality our country for 50 years is impos- businessmen. standards – all these evolve out of sible to change in 20. Secondly, the conscious and responsible Latvia is a democratic country. UW: Latvia quickly walked the choice of participants in the pro- No one was sent away in the way on which Ukraine has not cess. The structural funds of the 1990s, everyone living here who even taken the first step. EU European Union were instrumen- has learned the Latvian language membership helps it to build tal in conducting reform in Lat- and a little of the national history new political relations with Mos- via. However, it is dangerous to can get citizenship. In this sense, cow. What challenges did your get used to the thinking that this Latvia and Estonia are similar 22|the ukrainian week|№ 19 (61) october 2013 Opinion|neighbours and differ from Lithuania, where Riga, Nils Ušakovs, a represen- Bio a relatively mild resolution of the tative of a pro-Russian party, on Sarmīte Ēlerte is a politician, journalist and public figure in a Russian-speaking channel, you Latvia. In 1990–2008, she was Editor-in-Chief of the Diena problem, inherited from Soviet (Day) newspaper. From 2010 until 2011, she was Minister of times, was proposed. Anyone who did not wish to switch to Rus- Culture in the second government of Valdis Dombrovskis. wants to become a member of so- sian. Was your decision moti- Ms. Ēlerte founded the Zigfrīds Meierovics Association for ciety can do that. Of those people vated by the fact that the Rus- Progressive Change. In November 2007, together with San- who feel alienated, but continue sian-speaking population of Lat- dra Kalniete, she initiated the “umbrella revolution”, a large- to live here, no one wants to emi- via would never master the scale protest in Riga, demanding separation of the govern- grate to Russia or Belarus. Just as state language if it doesn’t hear ment from oligarchs, dissolution of the Saeima (the Latvian in France or the UK, those who it? Subsequently, the Russian Parliament) and dismissal of corrupt officials. Then Prime live in Latvia must respect its cul- language information resources Minister of Latvia, Aigars Kalvītis, was forced to resign. In ture, language and identity of the of your country added fuel to early June she was the candidate from Unity, a national-lib- the problem. Ušakovs, who re- eral party, in the Riga Mayoral election, but lost to Nils country. Of course, Latvian was Ušakovs, a representative of the pro-Russian party Harmony and will be the only state lan- ferred to himself as “the Mayor Centre and the former mayor, who was elected to this posi- guage. The illusions supported by of all residents of Riga” played tion for the second time. some politicians and parties that on this against you. Ultimately, Latvia will have two state lan- he won the election and you mocracy, national state, lan- guages and society will be made lost. Why did that happen? guage). Some politicians that up of two communities are delu- People in Latvia are tired of supposedly “yearn for harmony” sive, because this will never hap- crises, and the need for stability is consider that keeping Latvians pen. This would lead to endless palpable at every step. Of course, and Russians separate is the right conflicts and would have a nega- the last phrase can have any con- thing to do. But I don’t see any fu- tive impact on society as a whole. tent. From 2009 until last year, ture in this. This will only lead to Each person has the right to his when you look at results of elec- tension between citizens, which or her own individuality and the tions to local governments people are gradually becoming opportunity to choose the extent throughout Latvia, stability is tired of. of integration. A colleague in my more or less a key slogan of victo- party, who is currently an MP, rious politicians. As voters think, UW: Nils Ušakovs is no longer a Andrejs Judins says of himself: things may not be better than Soviet person. He is a young “I’m a Latvian of Russian origin.” they were, as long as things don’t politician, speaks very good Lat- This is his choice, and he wants to get worse. At the same time, peo- vian and is a Latvian citizen, but be part of the Latvian nation. An- ple’s perception of what is a mod- is building public relations with other will say: “I am a Russian ern city, is somewhat simplified. supporters based on outdated and live in Latvia.” People should A city is not just pipes and mu- communist symbols. Why is this not simply know, but also use the nicipal issues; it’s also culture, in- Soviet nostalgia being artificially state language. In this lies respect vestments, business, education, supported? and integration in society. As far bureaucracy, corruption, and so What I say about consolida- as mistakes are concerned, poli- on. People feel that it is necessary tion is completely logical. Look tics was not always consistent; to to mobilise for national elections, at the identity of emigrants. So- this day we have a very Soviet sys- while local elections are less im- viet mentality is its integral part. tem of language segregation, portant. The pro-Russian Har- Until 2002, when Putin came to starting with kindergartens: there mony Centre represented by power, there were no celebra- are Russian and Latvian ones; the Ušakovs did quite well in mobilis- tions in Latvia on May 9. When same applies to schools. In the ing its electorate. His voters were he decided that the Soviet Union early 2000s, we conducted edu- more active than ours – the na- had fallen apart too soon and its cational reform, which provided tional-oriented ones. Of course, former republics have to be re- that 60% of subjects in secondary Riga’s ethnic structure and many turned to the empire, he set a schools must be taught in the na- other factors have contributed to task of reviving the Great Patri- tional language. This has worked this. otic myth in some places, and es- very well: Most young people now The task of any democratic tablishing a new one in others. know Latvian, which was not the political party is the consolida- This included partial vindication case during the Soviet era. But to tion of all electoral groups around of Stalin, and had some impact say that we are segregating our its own national democratic de- on us. Russia does not hide its children – these are old stereo- velopment programme. In my intent to develop its influence on types. They should all learn to- view, the negative role of Har- former Soviet territories. There gether in compliance with the mony Centre lies in the fact that it are more Russians living in Lon- rights of ethnic minorities re- continues to operate through a don than in Riga, but they don’t garding their cultural autonomy, scheme of contradiction and op- march along the streets there on but without any division in the position, supporting the identity May 9. You can live with your education process. A movement of its electorate on the basis of memories, but the revival of Vic- in this direction should have been “we oppose” or “we and they”. tory Day celebrations are the begun earlier, delicately, but con- Harmony Centre and its prede- core of the counteraction to so- sistently. cessor, the more radical For Hu- cial consolidation in indepen- man Rights in United Latvia, fo- dent states. Putin’s Russia is still UW: In the heat of pre-election cus on disintegration. While I say counting on political revenge in debates with your competitor that society should have a single the geographic boundaries of the for the position of Mayor of foundation (human rights, de- former USSR. № 19 (61) october 2013|the ukrainian week|23 Society|Discrimination Defending Ukrainian at Odesa’s Universities College students in Odesa campaign against Ukrainophobia in local high schools

Odesa students protest against something that took many years to the opening of the Russian build while working here,” Andriy World Foundation centre says. at their university Other students at his university have noted the problem too. How- ever, most are afraid to protest openly against Ukrainophobia for fear of being expelled. Kateryna, a second-year stu- dent, was too afraid to even ‘like’ Andriy’s post on the social net- work, citing a fact of which all stu- dents at Mechnikov University are aware: the administration moni- tors the network. After someone posted a comment saying, “Not one subject, not one, is taught in Ukrai- nian” in a university group on the social network, the deputy dean entered the room after class and told the student group president to Author: hen you first en- northern neighbour, even after I “tame the students”. Valeria ter the university, read his books full of hatred about Burlakova you have a lot of all things Ukrainian, I kept telling History of Ukraine “Wquestions about myself, ‘this is democracy, a person in Russian corruption, studies, and sports. has the right to think what he Hennadiy Hrebennyk has long had Some are answered immediately; wants and express his thoughts’”, a reputation as a Ukrainophobe at others last through your school Andriy states. the university but only now have years. One issue bothers most stu- The last straw, however, was the students begun to protest dents at the Social Studies Insti- when Hennadiy Hrebennyk, a Pro- against it. “He wrote an article en- tute: why does the teaching staff of fessor of History and World Poli- titled ‘Professor – is it good?’ 22 a state university that educates fu- tics in the Social Studies Depart- years ago. It was against the ture elite political analysts, sociolo- ment, participated in a Ukraino- Ukrainization of education,” Kat- gists and diplomats include a per- phobic event arranged by the eryna adds. The article goes on to son who barely recognizes Ukraini- scandalous Natalia Vitrenko’s Pro- state, “We are leaving behind the ans as a people, let alone Ukraine gressive Socialist Party at an Odesa ‘Odessa’ (Russian spelling of Odesa as a state?” This question was hotel. The professor who educates – Ed.) title of this university and posted to an online social network future Ukrainian intellectuals was the language all Odesites speak. by Andriy Bondarenko, a student spotted together with a bunch of We are removing ourselves from at Mechnikov National University notorious promoters of the Rus- the glorious traditions of this bril- (Odesa National University), one of sian World including Aleksandr liant centre of Russian science, los- the city’s most popular universi- Dugin, Volodymyr Kornilov and ing our particular pride, losing our ties. others. faces”. The professor of History “Hrebennyk is an ethnic Rus- and World Politics never switched One-sided pluralism sian who moved to Ukraine and al- from speaking Russian. “Nobody Andriy has long accepted the plu- lows himself to speak against its will make him speak Ukrainian,” ralism of opinions at the university integrity and disgrace the Ukrai- Kateryna sighs. “And they would as an excuse for this situation. nian people. I don’t mind labour never fire him…” “Even after I met PhD students su- migration, especially highly quali- This professor is not alone pervised by this professor who fo- fied people coming to Ukraine, but among the university staff. “Unfor- cus entirely on topics related to our I do mind people who try to ruin tunately, Hrebennyk is not the only 24|the ukrainian week|№ 19 (61) october 2013 Discrimination|Society one like that here,” the students complain. “There are quite a few old professors here who are still living in the Soviet Union. They end every class with a minute of nostalgia about the past, criticism of the terrible bourgeoisie and in- terpretation of yet another of Marx’s ideas. Almost every profes- sor has expressed Ukrainophobic sentiments at least once. Hennadiy Hrebennyk is particularly notori- ous. He speaks with contempt about Ukraine during his lectures on the history of foreign political doctrines. He talks about the unity of the Slavs and says things like ‘our Russian language’”. In this environment, few dare to ask for education in Ukrainian at Mechnikov University. “We only had business Ukrainian and Student Andriy Stopakevych, a Polytechnic Uni- during a lecture. “It was Religious Bondarenko world history in Ukrainian in our is one of the versity lecturer. Studies”, states a student involved first year,” a student says. “The few who talk He claims that his request for in the conflict. “I asked the lec- professor who taught us history of openly about the lecturer to speak Ukrainian turer to speak Ukrainian. ‘Odesa is Ukraine allowed us to vote which Ukrainophobia earned him an F for a lab course in a Russian city’, she replied”. The language to use just once. We at the Odesa nuclear physics and the advice to student said that Odesa is a Ukrai- chose Ukrainian”. However, he National “learn Russian”. “Students haven’t nian city with Ukrainians consti- still began his course in Russian. University been expelled for similar pro- tuting 75% of the population. When the university administra- Ukrainian campaigns but some “Odesa is Russia so shut up!”, a tion found out about the “protest have quit on their own and trans- Transnistria-born classmate said. sentiments” it told the student ferred to Kyiv universities to avoid That was the last straw. “The lec- president to “deal with them”. language discrimination”, the stu- turer went to a university in St. “The student president told us dent notes. Petersburg and comes from Rus- that it was an instruction from Many of those campaigning for sia. So, people from Russia and above. Even after she chose Ukrai- Ukrainian-language education at Moldova want to tell me, a native nian as well”, the students said. Odesa universities were born and of Ukraine, that Odesa is not only After that, the protest abated. raised in Odesa. “Some hardly a Russian-speaking city, but a Overall, the students believe that know Ukrainian and speak surzhyk Russian city? I punched him…” even anonymous discussions can , but they want to learn it,” the stu- The university administration did have negative consequences: the dent of the Polytechnic University not go public about the conflict: administration and professors says. “When the question of the the student was not expelled but know which students are con- language of education arises – al- classes in Religious Studies are cerned with the language issue. though the students’ opinion is still conducted exclusively in Rus- sian. Bad grades and the battle For every action, there is an for language Almost every professor equal and opposite reaction. This The policy of Odesa’s Mechnikov at the Odesa National law is not yet in full swing at Odesa National University has repercus- universities. However, Odesa stu- sions beyond campus, as profes- University has expressed dents disrupted the opening of the sors often moonlight elsewhere. A Ukrainophobic sentiments Russian World Foundation Centre student at the Odesa National at the openly Ukrainophobic Mech- Polytechnic University stated off- at least once, students nikov University. They raised red record that Mechnikov professors claim and black flags at the presentation teach all of the humanities courses of Vasyl Shkliar’s book Zalyzhenets at his college. rarely invited – Odesites say, ‘We (The One Who Stayed), a historical “Virtually every PhD student are Ukrainians, too, and we under- novel about one of the episodes in at Mechnikov University believes stand everything, let’s study in the struggle of Ukrainian insur- and hammers into the heads of Ukrainian’”. There are many Bul- gents against the Soviet authorities students that Ukraine’s indepen- garians in Odesa, and they often try in the 1920s. Most deal with these dence is a paradox and shouldn’t to speak Ukrainian, he claims, but absurd and tragic situations with have happened”, says the student students from neighbouring typical Odesa nonchalance. “I don’t of the moonlighting lecturers. His Transnistria are the most proactive care about Ukrainophobic teach- university also has Ukrainophobes proponents of Russian. ers. I’ll just speak Ukrainian as a on staff. “When will you learn to Once the debate on the lan- matter of principle”, says Yana, a 1 A mix of Ukrainian speak normally? I’m fed up with and Russian mostly spo- guage of education at Odesa Poly- philology student at Mechnikov this language”, he quotes Oleksiy ken in rural regions technic University led to a fight University. № 19 (61) october 2013|the ukrainian week|25 history|Communists in Europe Subjugated Europe Stalin’s moves to establish communist governments in Central and Eastern Europe relied largely on local elements and tools already tested in the USSR

Author: János Tischler, Budapest

his war is not like the previous one. Now he who subjugates a “Tterritory dictates its political system. Everyone im- poses his own system in the geo- graphical territory where his army is located. This is how it is, and it cannot be otherwise,” Sta- lin once told Milovan Đilas, a leader of the Yugoslav commu- nist movement and later pris- oner and victim of the system. The Soviet tyrant knew what he was talking about. Pragmatic approach In 1949, the world communist camp finally took shape. That year, the People's Republic of China was proclaimed and the German Democratic Republic emerged. The states that Stalin had been eyeing (Bulgaria, Ro- mania, Hungary, Czechoslova- kia, Poland and the GDR with the exception of Yugoslavia and, after 1960, Albania) found them- selves under the thumb of the Soviet empire. However, despite Stalin’s rhetoric, the future of Central and Eastern Europe did not seem to be set in stone. There was still some hope that these countries would be able to choose their paths independently without Moscow’s guidance. However, one had to reckon with the fact that the Soviet Union had not only emerged from 25 years of international isolation but had also assumed a top position among the victors of WWII, with nent had to be filled by Anglo- illegal, or “sectarian” in the in- the Red Army controlling coun- Saxons and the Soviets. The terwar period now became full- tries previously occupied by the question was only who would fledged political entities with Third Reich or connected to it. It have more influence. great potential. At the same time, would be a long time before Ger- Communist parties which, public opinion and political many could fully restore itself, so with the exception of the one in forces in these countries de- the geopolitical void in the conti- Czechoslovakia, had been small, manded fundamental changes, 26|the ukrainian week|№ 19 (61) october 2013 Communists in Europe|history modernization and a departure would exist and the influence of from the dramatic wartime past. communists would gradually rise Czechoslovakia, which was a – Yugoslavia, Finland, Austria, bourgeois democracy before the Hungary and Czechoslovakia. war, was again an exception The communist dictator tried here. to divert the attention of the The Soviet chief took a prag- Western allies from the second matic approach to the future of zone, so he initially made con- the region occupied by the Red cessions in the third. For exam- Army. Initially, he did not wish ple, Stalin agreed to free elec- to give any freedom to commu- tions and accepted the fact that, nist leaders, many of whom were as a result, communists were re- appointed by Moscow, including moved from coalitions in Fin- Mátyás Rákosi in Hungary or land and Austria. This is how the Bolesław Bierut in Poland, but Soviet policy was made to con- he was flexible in his thinking. form to the specific conditions in As he strove to keep his new tro- the region, while the Soviets phies (the Baltic states, Bessara- withdrew in the face of stronger bia, Königsberg, Transcarpathia, resistance. and annexed Polish regions), he wanted to see how far he could The lure of a “people’s go in his dealings with the West- front” ern allies. They agreed that the After the Second World War, po- USSR had to be surrounded by litical coalitions in the form of sympathetic countries. On this “people’s fronts” sprang up issue, the Western leaders were across Europe, in both eastern partly helpless. and western regions. They Stalin did not rush to Soviet- emerged pursuant to decisions Victor. ize even those countries which reached in Yalta whereby future Western presence of the Soviet army, he wanted to have under direct governments would have to political communists could not be re- control, i.e., Poland, Romania “widely represent all democratic cartoons about moved from coalitions, even and Bulgaria. At the same time, population groups”. The parties the expanding though they could have probably he wanted to have room for fur- in these coalitions were partners influence of survived even so. Moreover, un- ther expansion, so he ordered to and opponents at the same time, Stalin’s USSR like the other parties, the com- have a semblance of parliamen- and none of them were able – after the munists knew why they needed a tarianism established in these nor in some cases willing – to Second World parliamentary majority: it was a countries. As a result, several rule on their own. War way to seizing total control. For communist parties, including These coalitions emerged un- example, the Hungarian and that of Hungary, put together der pressure from great powers Czechoslovak communist parties programmes that could be de- in line with international deci- received orders from Moscow in- scribed as social-democratic. sions and usually in the presence structing them to destroy the co- Moreover, the real social demo- of foreign troops. Even when alition while at the same time crats were more radical than elections were held in a country, keeping it intact. communists, who were initially the new government also took A question then arises: why kept in check by Moscow. As is the form of a “people’s front”. did opposition forces cooperate known, the main difference be- Coalitions came across as quite with the communists if they had tween the two was that the for- variegated. They were held to- suspicions, if not convictions, mer stuck to the foundations of gether only by external forces, that the latter were trying to an- parliamentary democracy, while not by common interests. This, nihilate them? On one hand, op- the latter pursued complete of course, played into the hands position parties were encouraged power and the “dictatorship of of communist parties, which to do so by the Western allies, as the proletariat”. To the commu- seemed to be integral and disci- was the case with Ivan Šubašić in nists, parliamentarianism was plined “battle-ready companies”. Yugoslavia or Stanisław Miko­ simply a means to an end. Communists maintained tension łajczyk in Poland. On the other According to Stalin’s concep- by taking advantage of “bour- hand, they had to do everything tion, the post-war continent had geois” political forces which, due in their power to reduce the in- to consist of three parts: 1) non- to their democratic structure, fluence of the communists and communist – Western Europe, were easy targets. The Commu- urge the West not to support any where Stalin constrained coup nists also employed the tactic of party but theirs. Even so, most attempts by the strong French running crypto-communist par- opposition members believed and Italian communist parties, ties which joined coalitions and that despite unfavourable cir- and Greece, where he cut off as- recruited supporters from among cumstances, they had to prevent sistance to communist guerrillas; the leaders of opposition forces, the Communists from coming to 2) communist – Poland, part of thus destroying them from the power; they were afraid that if Germany, Romania and Bul- inside. they did not cooperate with the garia; 3) middle ground where Meanwhile, due to the prox- communists, they would be sup- coalition-based political systems imity of the USSR or the tactical planted by more pliant forces. № 19 (61) october 2013|the ukrainian week|27 history|Communists in Europe One thing that kept the opposi- tion in Central and Eastern Eu- rope from jointly resisting Sovi- etisation was a conviction shared by some parties (primarily social democrats, socialists and peas- ant parties) that they had more in common with the communists than with other opposition forces. Initially, communist party leaders said plenty about the im- portance of close cooperation with other political forces. State- ments to this effect were made, for example, by Władysław Gomułka in Poland, Klement Gottwald in Czechoslovakia, Georgi Dimitrov in Bulgaria and József Révai in Hungary. Apart from Czechoslovakia, communist parties did not enjoy massive popular support and were unable to form ruling cabi- nets on their own. Stalin was aware that a government includ- mania, Bulgaria, Hungary and, ing communists could only be le- in a way, Poland, that returning gitimate if it also involved other to the previous order was out of political forces. This element was the question. The communists crucial in view of the stance were indeed able to stir up the taken by the West. One advan- masses, primarily young people, tage and, at the same time, flaw to advance their causes. Their of the communist parties that ranks swelled partly because emerged prior to the Second many neophytes seized the op- World War was that they had re- portunity to conceal their unsa- ceived support from the Soviet voury pasts. In Hungary, former Union and were thus viewed as members of Ferenc Szálasi’s na- Moscow’s henchmen. Therefore, tional socialist Arrow Cross they strove to somehow trans- Party joined the Hungarian form this image. Communist Party en masse. While the communist party Many converted to communism had been legally registered in “in the spirit of the times”, i.e. Czechoslovakia since 1918 and simply as a way of adapting to had more than one million real new circumstances. members in March 1946 and twice as many in May 1948, its Rallying with Moscow’s counterparts in other countries blessing were quite thin when they According to Yalta accords, the emerged from the shadows and countries of the region had to entered the political arena. How- hold free elections because this ever, their membership soon ex- was the only way to legalize their perienced an exponential explo- new governments. Government sion: from 25,000 in 1944 to coalitions that were forged prior 500,000 in late 1947 in Bulgaria; to the electioneering campaigns from 20,000 in 1944 to one mil- mocracies that had been in crisis The Commu- and primarily to facilitate them lion in autumn 1948 in Poland, even before 1939. nist Garden of (hence their “temporary” status from 2,000 to 806,000 in 1948 The military successes of the Eden. A German in a number of countries) were caricature show- in Romania; from 2,500 in late Red Army and the victory of the ing how the faced with a choice: 1) run to- 1944 to 887,000 in June 1948 in Soviet Union over the Third “dictatorship of gether with the “people’s front” Hungary. Reich made a colossal impres- the proletariat” even though other parties were This data shows that in Eu- sion on Europeans. Communist was being estab- able to nominate their candi- rope, which gravitated towards parties with their new radical lished in Central dates independently (this was the left in the first post-war programmes were seen as a via- and Eastern the case in Bulgaria, Poland and years, many people expected ble alternative against a back- European Romania), or 2) run indepen- something new, and were eager drop of “weighty” bourgeois countries dently provided that members of to leave behind systems of auto- forces when it was already clear, the previous coalition agreed to cratic power and “bourgeois” de- particularly in the cases of Ro- maintain its pre-election format. 28|the ukrainian week|№ 19 (61) october 2013 Czechoslova- it would have kia and Hun- dealt a blow gary took the to a Soviet latter path. sore spot: the W i t h USSR was some excep- unable to tions (such as compete with in Hungary in the U.S. eco- 1945 and nomically. Czechoslova- Amidst esca- kia in 1946), lating ten- the elections sions with the were held West, the within an at- only scenario mosphere of acceptable to terror and in- Moscow was t i m i d a t i o n to rally satel- and with lite regimes l a r g e - s c a l e around itself falsifications. in order to These elec- keep them tions could from falling justly be pro- for the U.S.’s nounced ille- enticements gitimate and invalid. The commu- and prevent departures from the nists tried to artificially boost their Soviet model. This foundation was performance and were not averse implemented in the Cominform- to rigging election results. If a buro. partner started to have doubts From late 1947 to the end of about the value of the coalition, 1948, the communists seized they resorted to a wide range of co- power in Czechoslovakia, Roma- ercion methods including arrests, nia, Bulgaria, Poland and Hun- forced emigration, and the stimu- gary. The task was made easier by lation of interparty rifts. For a the fact that they had controlled while, there was still a need for co- key power structures since late alitions, real or illusory. 1944 or early 1945. Further devel- The so-called governments of opments in these countries fol- national unity that emerged as a lowed an almost identical sce- result became puppets in the nario. A “dictatorship of the prole- hands of the communists and tariat” was introduced, which eventually fell apart as the founda- meant the dissolution of other po- tions upon which they rested litical forces. United workers’ par- crumbled. In Central and Eastern ties were created, allowing the Europe, coalition governments communists to absorb social-dem- were replaced with communist ocratic and socialist parties. The one-party governments (or ficti- result was a single-party system tious multiparty systems involving with small satellite parties surviv- satellite parties). It became clear ing in some places but always ac- in 1947-48 that a deep chasm now cepting the leadership of the Com- divided the victors of the Second munists. Political representation World War, leading to open intim- essentially ceased to exist, elec- idation and ultimately the Cold tions turned into mere shows, and War. Proof of this fact came from parliaments became pro forma in- both sides of the conflict. On one stitutions. In 1949-53, classical side, the Americans launched the Stalinism with all its political and Marshall Plan as well as a contain- economic consequences began to ment policy to stop Soviet expan- reign supreme in the countries of sion beyond its sphere of “privi- “people’s democracy”. The rela- leged” influence. On the other side, tions between the Soviet Union the Information Bureau of the and its satellite states saw some Communist and Workers’ Parties changes during this period. A seri- (Cominform) was established and ous crisis of this model was began operation in autumn 1947. marked by mass protests in the The Kremlin could not allow GDR and Czechoslovakia in 1953 any country under its control to and in Poland in 1956, which cul- accept the Marshall Plan, viewing minated in the Hungarian Revolu- it as a direct challenge. Moreover, tion in autumn 1956. Culture & Arts|Theatre Giving New Life to Old Traditions Virlana Tkacz, an American theatre director with Ukrainian roots, talks about experimental and accessible theatre, culture on the edge, and the struggle to build an audience

Winter Night with carolers from village in the Carpathians. She the small Carpathian village of creates something bigger than just Kryvorivnia (2012) Ukrainian theatre. Her plays in- volve actors of different races and nationalities speaking different languages. Past productions have featured Kyrgyz and Buryat ritu- als. Virlana Tkacz’s plays are a fu- sion of various media: music, video installations, photography, literature and theatre. The Yara Arts Group’s new play Captain John Smith is also multilayered, but with distinctly Ukrainian ele- ments. Theatre from scratch Neither America nor Europe have theatre systems like Ukraine’s where state the-

) Z KOK & VA ( KLYU K . ava P hoto: atres have permanent prem- ises, casts and directors. This Fire. Water. Night based is too costly. U.S. theatres today on The Forest Song by Lesya are either commercial Broadway Ukrayinka (2013) ones staging one play seven days a week, or they’re non-commercial. Theatres are the biggest industry in New York. The city has realized that all other businesses can dis- appear but art will stay. Unlike Ukrainian artists, Americans do not wait for the government to support them. Art is supported by foundations and private sponsors.

The Yara Arts Group has to fight for every experimental play. But I think that’s exactly why I keep doing this. I used to work at a commercial theatre; I

z ko K lyu olodymyr was second assistant to director in Amadeus, a beautiful play. But do-

hoto: V P hoto: ing one play all week is a killer for the actors and director, it’s worse Interviewer: ew York’s theatres of the Yara Arts Group and a than working at a factory. With ex- Tetiana Teren revealed every as- translator of poetry. During the perimental theatre you start every pect of our profes- group’s twenty years of activity, project from scratch and use any- “Nsion to us: you just Tkacz has introduced American thing the world has to offer every have to work hard and learn a lot”, audiences to top contemporary time. recalls Svitlana Oleshko, director Ukrainian poets Serhiy Zhadan, of the Kharkiv-based Arabesques Oksana Zabuzhko, Oleh Lysheha, “Even a chair can become the Theatre and studio. She recently Natalka Bilotserkivets and Viktor text for your play – your worked in New York with Ukrai- Neborak; singers Nina Matvienko imagination is all that mat- nian-American theatre director and Mariana Sadovska; even car- ters,” says Watoku Ueno, a Virlana Tkacz, founding director olers from Kryvorivnia, a small Japanese-American scenog- 30|the ukrainian week|№ 19 (61) october 2013 Theatre|Culture & Arts rapher and co-founder of the new artists enter into a dialogue. BIO Yara Arts Group. The play is What are some ways to start and Virlana Tkacz is an American the- being formed the entire time I’m maintain this? I sometimes find atre director of Ukrainian origin and the founding director of the Yara working on it. All of the interest- an interesting poem or a carol, Arts Group at the off-Broadway La ing people, things and discoveries send it out to many artists and ask MaMa experimental theatre in New I make while working on it end up them to do something with it. It is York. She was born in 1952. Her in the play in some way or an- important for me to not just direct grandfather Kost Kysilewsky other. It is important to make the a play but to take part in the cre- founded a chain of schools for play easy to understand for all. ation of the atmosphere where Ukrainian studies in the U.S. Virlana The language is not a barrier in Ukrainian culture is born. Ukrai- holds a Masters of Fine Arts from this because there is also the lan- nian artists, too, advise me on Columbia University. She has pro- guage of eyes, hands, shoulders what I can read or watch. duced 25 plays including A Light from the East, Blind and legs. People of all nationalities Sight, Song Tree, Koliada: Twelve Dishes, Scythian Stones, Raven, Fire. Water. Night, and more. She translates Ukrai- understand it. This time, I brought the story th nian poetry into English with poet Wanda Phipps. The of 16 century British travel- translations have been published in A Hundred Years of The experimental theatre La ler Captain John Smith to Youth: A Bilingual Anthology of 20th Century Ukrainian MaMa where we stage our Ukraine. It began when I found Poetry. Virlana is the co-founder of the International Les plays started in a roofless the first edition of Smith’s mem- Kurbas Society. building in 1961. Broadway the- oirs from 1630 in a library. People atres did not want unconventional always read the last part of his Community at the Ukrainian plays, so one Ukrainian-American memoirs about his arrival in sports club every Thursday. That’s gave his basement to Ellen Stuart, America. I read the whole book how Gogol Bordello started as a a director who wanted to create a and realized that the story he told band. Hütz has his own views on theatre. This was the first home of was very similar to Ukrainian bal- Ukrainian culture. He is most fas- La MaMa. New art always has to lads of that time. John Smith was cinated with the Hutsuls (Ukrai- compete for new space – whether a poor young British guy who vol- nian ethno-cultural group inhabit- on Facebook or at an abandoned unteered to fight in the Anglo- ing the Carpathians in Ivano- factory, like GogolFest in Kyiv. French War. Then, he went to Frankivsk, Chernivtsi and Flanders, Transylvania, Walla- Zakarpattia Oblasts – Ed.). Eu- As a director, I’m always in- chia, and the most interesting part gene really wanted to become who terested in the way traditions for me – Ukraine! In his memoirs, he is today. Every artist has a and history are passed from he mentioned Drohobych, Ostroh, dream. When our dreams inter- generation to generation. Pre- Lutsk, Halych and Kolomyia, and twine, we come together and make serving traditions is extremely im- wrote that no other nation was as good projects. portant for the Ukrainian, Buryat, welcoming as the Ukrainian peo- Kyrgyz and African cultures that I ple. American poet Bob Holman There is no such thing as a find the most interesting. The plays John Smith in this produc- unified Ukrainian diaspora. more I dig into them, the better I tion. The U.S. is home to Ukrainians understand Ukraine. These cul- who moved in the 1940s. They are tures are different in terms of reli- Ukrainian America gion and history, but their com- We published a big book, monality lies in their efforts to not Modernism in Kyiv, at the Ukrainian culture will simply preserve what exists al- University of Toronto. But one develop if tradition ready, but to keep developing person alone cannot explain themselves further. Ukrainian modernism and say, and new artists enter the discoveries of Les Kurbas into a dialogue OPENING UP TO OTHERS abroad (Ukrainian film and the- It is important to realize that atre director, b. 1887; along with all around 80 now, and they traditional culture cannot be several other directors, he formed mostly stay at home. Their chil- set in stone. I am most inter- the Soviet avant-garde theatre in dren preserve Ukrainian tradi- ested in how new culture evolves the 1920-30s – Ed.). I began re- tions but are also part of main- out of older traditions. I have pho- searching his work thinking that it stream American culture. Other tographs where my grandmother, wouldn’t take me much time. I Ukrainian immigrants have ar- mother and I are all wearing tradi- found just two books on Kurbas at rived recently. Each one of them tional Ukrainian clothes. The pic- the Columbia University Libraries, creates a new Ukrainian-Ameri- tures show very well how ethnic and my research is still in prog- can culture. I recently worked with fashion changed over the centu- ress. the “Shumka” Ukrainian dance ries. This reminds me that tradi- troupe in Edmonton. They are the tional art is not stable. Some di- I worked with Gogol Bordello great-grandchildren of Ukrainians rectors read books before they on Buryat plays. I met Eugene who moved to Canada in the early start working on a play. I travel when he was sitting on the stairs 19th century. They barely speak and talk to representatives of the in front of my home (Eugene Ukrainian but the way they per- culture I’m interested in. Hütz, actor and lead singer of Go- form authentic dances is beautiful. gol Bordello – Ed.). “I will work It may be one of the biggest Ukrai- Ukraine has to open up to with you,” was his greeting. We nian dance schools in the world. other cultures. Ukrainian cul- started having gatherings called The group includes over 700 peo- ture will develop if tradition and New Nomads, For We’re Not a ple. № 19 (61) october 2013|the ukrainian week|31 Culture & Arts|music Don’t Wake the Neighbours o really get the essense of a mu- Lately, Bugge has been coming to sician, you have to listen to him Ukraine more often than others. Last Tplay alone without any special ef- year he played a concert with a Norwe- fects or the accompaniment of the gian band and American vibraphonist band he plays on stage with. This is Mike Mainieri at the annual Jazz festi- the most effective way, although val in Kyiv, which this year, is sched- many find it disappointing. Last week- uled for October 26. He then per- end, Norwegian pianist Bugge Wes- formed at the Alfa Jazz Fest in Lviv. This seltoft played a solo concert at the time, he’s playing in Odesa and Kyiv. In Tchaikovsky Music Academy – the fact, it is high time this man is seen by conservatory in the heart of Kyiv. everyone: Bugge is more legendary There was no room for disappoint- than most music fans can imagine. His ment that night. name is already in encyclopedias of

Events 19-20 October 19-27 October 20 October, 7 p.m. Overtonic Molodist Filmfest Brazil Bossa Nova Quartet Little Opera House Ukraine Palace; Kyiv, Tchaikovsky National Music (50, vul. Dehtiarivska, Kyiv) Zhovten and Kinopanorama Academy (1-3/11, vul. movie theatres (103, vul. Horodetskoho, Kyiv) Kyiv is about to host an unusual Velyka Vasylkivska; 19, vul. music event. Organizers are inviting ev- Velyka Vasylkivska; 26, vul. The energetic Brazil Bossa Nova eryone to the third festival of overtone Kostiantynivska and 19, vul. Quartet will play a gig in Kyiv as part music, dedicated to the oldest in- Shota Rustaveli, Kyiv) of its new world tour. Its magnificent struments invented and played by bossa nova melted the hearts of the people, such as the This year’s international film festival Ukrainian audience at concerts last Jew’s harp, didgeri- will open with Walesa. Czlowiek z year. This time, the musicians will play doo and more. Throat nadziei (Man of Hope), directed by An- singing, otherwise drzej Wajda. Its world premiere was at known as overtone the Venice Film Festival. Austrian direc- singing, is also on tor, scriptwriter and producer Ulrich Se- the programme: the idl will be the special guest and pres- audience will have ent his full retrospective Ulrich Seidl. To- the opportunity to tal Retrospective. The competition learn and practice it. programme will traditionally feature Overall, the festival films by Ukra­­inian and foreign directors. space unites musi- One of them will win the main prize, the cians, singers and Scythian Deer. a different programme of new songs the craftsmen who by Brazilian singer Maucha Adnet to make overtone in- the accompaniment of Helio Alves on struments. Everyone piano, Duduka da Fonseca on percus- will be able to buy sion and Ark Ovrutski on bass. The Kyiv an instrument from gig, will culminate the band’s tour of craftsmen at the the Ukrainian cities of Cherkasy, Kiro- fair. vohrad, Simferopol and Odesa. 32|the ukrainian week|№ 19 (61) october 2013 handicraft|Culture & Arts the future. The Bugge Jazzland label range of other electronic gadgets is widely referred to as the “next around it. For the next twenty min- step” from the landmark ECM Re- utes or so, the musician and com- The Doll World cords in mixing jazz and club music. poser turned into a DJ, nothing at Before the concert, you dress all like Debussy or Grieg. “I was so The Kyiv International Exhibition Centre is preparing for nicely and spend more time in front afraid to play with electronic de- the biggest show of handcraft artists in Eastern Europe. This of the mirror than you usually do vices…What would the audience weekend, October 18-20, it will bring together more than when preparing to go to a public think?” he said at end of the con- 350 Ukrainian, European, Japanese and American designers event. When you sit in the soft red cert. But it’s hard to imagine Wes- and artists of beadwork, embroidery, batik, patchwork and chair of the Kyiv conservatory for seltoft without electronics. Gad- other hobbies as well as decorative art. Bugge’s solo performance, you gets are his other self. After a Part of the show is the contest of handmade dolls called can’t help but feel as if you are at standing ovation, he returned to Trendy Doll. It takes place twice a year, in spring and fall. This home, in a comfy robe. Bugge the stage to play Henry Mancini’s season’s themes are the Legends of Ancient Greece and Alfa played most of his concert as if it Moon River from Breakfast at Tiffa- & Omega. was 5 a.m. and he didn’t want to ny’s. That was where all the above In addition to admiring exclusive dolls and handcrafts, wake his neighbours. For the deep mentioned composers returned to visitors will have the opportunity to take part in workshops, low notes his grand piano purred his music, along with the atmo- attend interesting lectures, see fashion shows of clothes and like the Cheshire Cat. The drive was sphere of the good old home robe. accessories, and buy original handmade items. palpable in the tiniest details and Wesseltoft does not have a pauses one could barely catch. His degree in music. He started play- The Kyiv International Exhibition Centre is at 15, Brovar- jazz standards sounded more like ing music at the age of three, sky Prospect, Kyiv. The closest metro station is Livoberezhna sets of tools in the spirit of the fa- tried to get a degree twice but ther of minimalism, Erik Satie, im- never did. When asked how this pressionist Claude Debussy, and the happened, he replies: “Nobody legend of Norwegian music, Edvard ever forced me to do anything. Grieg. Not even my father (a jazz guitar- Except for a few passages, Wes- ist –E d.).” Bugge is exceptional in seltoft’s improvisation was re- this because in our time, even strained, matching the overall at- punk rockers have college degrees mosphere of his performance. in music. He is just a talented guy Bugge then turned on his iPad with a bunch of deeper contexts and the gadget suddenly changed and skillful hands. By the way, аренко the sound of the grand piano. Bugge played in a punk band in Then, he turned to his laptop and a his youth. гор Сні с І гор фото: 20 October, 7 p.m. 22 October, 7 p.m. 25 October, 12 p.m. 24 October, 6.30 p.m. Pasion de Buena Vista PIANOBOY Industrial Eden Ukraine Palace Forsage Dance Club Institute of Contemporary (103, vul. Velyka Vasylkivska, (51A, vul. Harmatna, Kyiv) Art Problems Kyiv) (18D, vul. Shchorsa, Kyiv) Today, the magnetic vocals of Dmy- Experience the rapid rhythms of tro Shurov, one-time pianist for Okean Kyiv will soon host an art project. Its Cuban nightlife and indulge in the ex- Elzy and Zemfira and the leader of his principal goal is to discover the factors otic atmosphere of the Caribbean – own band, Pianoboy, coupled with the that changed people’s awareness after one of the most popular Cuban bands, ambient sounds of his piano will turn the Industrial Revolution. Influenced by Pasion de Buena Vista, will be per- the average grey fall night into a time technological and scientific progress, so- forming on Kyiv biggest stage. The full of vivid and unforgettable memo- cial mindset transformed into the desire troupe has the best dancers and vocal- ries. The well-known rock pianist will to create a machine with a human ists who are well-known and appreci- play and sing his hit songs – Vedma (The mind. Over 30 artists will present their ated in their native Cuba and all over Witch), Etazhy (Floors), Kozhura (Skin), individual vision of utopias based on the world. The special flavour of the Miortvye Zviozdy (Dead Stars), Prostye endless faith in technology. In addition Cuban lifestyle is presented not Veshchi (Simple Things), Vselennaya to massive installations, documentary only through the powerful vocals and (Universe) and many others. After films, photographs and painting, visi- sophisticated performance of the playing with tors will have the opportunity to meet dancers, but also Okean Elzy, Es- artists at discussions and roundtables. through their co- thetic Educa- lourful costumes. tion and Zem- The harmonious fira’s band, combination of all Dmytro Shurov these elements rediscovered makes the show himself in a exotic and gives solo career, for the audience the which his fans magic of a real Cu- are endlessly ban night. grateful. № 19 (61) october 2013|the ukrainian week|33 Navigator|Western Ukraine The River Styx of Lviv

34|the ukrainian week|№ 19 (61) october 2013 Western Ukraine|Navigator Once a major turbulent waterway of Lviv, the Poltva is now locked in a subterranean concrete tunnel. In addition to being the main channel, the underground labyrinth hides numerous Soviet military objects, bomb shelters and passageways to the basements of old buildings and churches

Article and photos by Vladyslav Vozniuk

irtually every city in Ukraine stands on a river that runs through the city centre. Lviv seems to be the exception. This is because its main river Poltva was diverted to flow under V th the city in a concrete tunnel back in the 19 century. Today, the only reminders of the once beautiful river are memories; Livyi Bereh – the Left Bank – a restaurant next to the Opera House, and a variety of souvenirs. The restaurant staff installed a web-cam- era on the concrete arch of the tunnel in which the Poltva now flows. This allows visitors to see Lviv’s major waterway online. In the early 19th century, the municipal authori- ties decided to lock the river in an underground col- lector to prevent the spread of malaria. This made the river part of the city sewage system: like most European cities, Lviv does not have separate drain- age and sewage pipes. We go to the underground collector where the old turbulent Poltva has flowed in the arched con- crete tunnel since Austro-Hungarian times. Today, the Poltva is the key channel in Lviv’s sewage sys- tem. During the Holocaust, the labyrinth of under- ground tunnels under the city was a hideout for the Jews who fled the ghetto. Local sewer worker and burglar Leopold Socha used his knowledge of the tunnels to hide the refugees for fourteen months. He also fed them – first for daily payment, and once they ran out of money – for free. These real events later evolved into In Darkness, a German-Polish- Canadian drama directed by Agnieszka Holland. The script was based on The Girl in the Green Sweater, the memoirs of an eye-witness. In addition to the intricate twists of the tunnels – some of them long closed – the subterranean sys- tem has many passageways from the basements of old buildings and churches to the banks of the un- derground river. They are now walled-up. Add to these religious buildings with numerous basement corridors, the abandoned Soviet military objects and bomb shelters, and you will see an entire paral- lel world of Lviv – a whole new field for detailed re- search. Initially, the Poltva was the central river of Lviv, served as a castle moat and protected the Western Ukrainian capital from the north. № 19 (61) october 2013|the ukrainian week|35