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59

Keystone of the system OLD AND NEW OLIGARCHS IN

Wojciech Konończuk NUMBER 59 WARSAW august 2016

Keystone of the system OLD AND NEW OLIGARCHS IN UKRAINE

Wojciech Konończuk © Copyright by Ośrodek Studiów Wschodnich im. Marka Karpia / Centre for Eastern Studies

Content editor Adam Eberhardt

Editor Halina Kowalczyk

Co-operation Katarzyna Kazimierska, Anna Łabuszewska

Translation Jim Todd

Charts Wojciech Mańkowski

Graphic design PARA-BUCH

DTP GroupMedia

Illustration on cover Shutterstock

Publisher Ośrodek Studiów Wschodnich im. Marka Karpia Centre for Eastern Studies ul. Koszykowa 6a, Warsaw, Phone + 48 /22/ 525 80 00 Fax: + 48 /22/ 525 80 40 osw.waw.pl

ISBN 978-83-62936-82-3 Contents

SUMMARY /5

INTRODUCTION /8

I. Oligarchs in the system of post-Maidan Ukraine /11

1. The ‘old’ oligarchs (temporarily) on the defensive /11 2. Co-operation with the new government /15

II. New oligarchs in the government /21

1. The business-political circle of President Poroshenko /22 2. The business-political circle of and the People’s Front /28

III. The de-oligarchisation that never happened /35 • • SUMMARY of – People’s his Yatsenyuk and have Arseniy Front party minister with dent , tem the rent to prime so persists market among and in of in For to that The merly have ful and chic period, Maidan actors eliminated. circle independently the an defend defence years politics the political the main economic has therefore the oligarchs needs system Petro to different been important centred government most minister in president’s enter which no last and revolution, been oligarchic despite in cause Ukraine’s their such Poroshenko’s and of of able

powerful two Ukraine some influence, remains into the the the life. around two impermanent oligarchic have the group positions, behind decades, to appointed the of division informal two decision, country’s strategic While in are groups camp. turn each economy it fact politics. been is oligarchic , a former sides. except is particularly have that key the group other their fully it that oligarchs, groups. in However, able including still is alliances which in taken sectors mechanism persistence territorial The the Ukrainian been true alignment, President for More thanks Volodymyr mid-April justified – and business possess to groups entered oligarchs lesson the by that is This among hold the of than or preoccupied important: with Family, some this dominance to the the circle big has integrity, has powerful Yanukovych, from to politics. on of prowess in informal a 2016, founded the two Groysman, is the influence economy. say entrepreneurs do number of the eroded led Ukraine’s to i.e. a of the the oligarchs. not most that years their has purely to the oligarchic the the That with last of post-Maidan instruments and the into enter agreements on during then close the of important the oligarchic of weakness However, influence after has dozen the creation the political division the the factors, the tactical power oligar Presi media prime stable links been cur who new sys war this fact for the or ------

5 POINT OF VIEW 08/2016 6 POINT OF VIEW 08/2016 • • ness companies. rooted, business to and ‘old’ nent with has influence. consolidate to their –unlikely Ukraine in has ly taken ranking termed emerge Viktor with The in As interests. business their objectiveing of preserving tions alliances, delaying rent a mains well-organised ‘old’ have tion the pathological which emerging the parallel, been oligarchs’ political been existence oligarchs fewer of have and been assets the control with control ‘old’ one Yanukovych’s the if ‘oligarchic’. around political leaders the operating high-ranking ‘new’ bases. informal, practically and inconsistent been assets one of As controlled oligarchic new reform situation, (ownership) the and position, are symbiosis over of a oligarchs political oligarchic Their the trying result, of power the up crucial political-business flexible – in Thanks many principle Ukraine, in Ukrainian process. for oligarchic have rule, identical the efforts state. view and and groups by leaders these to one grabs. also party between have conditions obstacles of in important any groups build preserved although too are to of reason depends The In choosing important groups have of members their the consists The or proven slow, subordinated of given to leadership, a groups, Ukrainian up reforms country another Ukraine, power what chronic with been main for impeding close and its their of are groups much on party. state-owned skilful their a which in scale their was of enterprises have the motivated formed deep resource still and links their as implemented depend political own these which and politics, of value allies. weak This observed is to weaker big have not economic own in is the their to smaller, close the not financial that as hindering business, undermined groups the of mechanism of modernisa on as can Their media companies by instability a started overarch in influence, according the the or relations Ukraine, than both result the highest- a perma also during media crisis, so and deep- new busi rela have cur and and the the far re be or to of it ------sence on replaced element and the blamed tion efforts desirable istration. substantial whether shortcomings that and of to on of is lacking strong with allies, Thus, undermine the the politics. financial Ukraine’s institutions most weakness the and state an of oligarchs The important independent as the resources institutions, their present-day a oligarchs result of Ukrainian that a influence state have objective they are are judiciary are been ridden which, façade still robust have state. there will the of seen become by the institutions The and in or beneficiaries because depend systemic by efficient turn, reform success independent politicians a permanent should primarily of process. corrup admin the can of of any ab all be be as – - - -

7 POINT OF VIEW 08/2016 8 POINT OF VIEW 08/2016 or a constant, enon Western invariably stances. er Oligarchy Maidan. the after years ahalf and describe isms much ience, of The INTRODUCTION 2 1 whose chic and dependencies. ties, a As K. Professor state distinguished the country [Clientele. er 2003. Wrocław perspective], hegemony osw-commentary/2016-04-11/-oligarchic-pluralism-to-plahotniucs- pektywie historycznej pektywie 18 OSW Commentary OSW Ukraine a Ukrainian th protection system, etc.) are and Całus, result, – century], sway as 1990s members, it (at Klientela. Nieformalne systemy władzy w Polsce i w Europie XVI-XVIII w. XVI-XVIII iwEuropie wPolsce władzy systemy Nieformalne Klientela. Irrespective the European well has is political in is whether both Antoni retain Moldova: Informal in primarily as not since return role whole has an been Warsaw as in oligarchic Within an the to informal a Polish Mączak’s and demonstrated Ukraine. , the their capacity systems. 1991. known exclusively 11 their states, systems pyramids it for central [Unequal from 2000, April significance a oligarchs, of is (except loyalty those system status historian According oligarchic the two who clients system and and the since 2016, of The to and Some friendship: major power ancient Nierówna przyjaźń: układy klientalne wpers klientalne układy przyjaźń: Nierówna adapt networks, Polish-Lithuanian is of limited as for Ukrainian and of purpose http://www.osw.waw.pl/en/publikacje/ the extraordinary the in have (politicians, interdependencies which key works state characteristics who pluralism of Moldova in for to power times to local Poland the political clientelist world, created group Professor changing promoting on governance. studied formed of oligarchs they oligarchy or levels), of and the 1 to in ) post-Soviet the do (or certain Plahotniuc’s Kyiv, in communities, systems networks players. present provide vitality the in oligarchs Europe first political groups) Antoni Commonwealth, which as of in their the a phenomenon, 2 the oligarchy In form Ukraine system state modern-era in second paper in an In patronage and a interests. phenom oligarchs resemble hegemony, operates Mączak, of historical the circum no hold oligar within organ of inter resil 16 pow par is oth half two are th as

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economic which have cess Their ership’s ests, over chic having the referred for It Ukraine. in systems ignored has focused The politics. at work Ukrainian in mechanisms real the understand simplification. sor behind-the-scenes searcher political in fluence why lyse tions 3 feudal This appears capturing system. oligarchic Ukrainian on the English a Mączak not pathological purpose the started groups state-owned the dozen resembles established rather mode was relationships. is been been in inner on and Ukrainian as to oligarchs evidenced studying positions. the that the one as or well for may of in remains than eradicated. fully of and circle wake operation, so ‘new 2014, situation the the the of the be strictly mechanisms years, co-operation companies by recognised describing the hard sake oligarchic oligarchy have negative workings helpful present oligarchs’ methods have whereby of the The poorly The reasons the of which fact facts. of been The economic which second been simplicity. historical the Revolution today that paper studied. phenomenon beneficiaries is in people of employed system, in the able However, oligarchic in in building they we with often not mainly their the the part the Ukrainian in phenomenon, is will a to and understanding 3 preserved West, oligarchy, not single from models the This It text, forced own preserve but describes of explains refer their consists financial in to without post-Maidan Dignity. groups may rather the book of and which the or of comprehensively described politics to Ukrainian to own this their Ukrainian be has has past, their it as their rely how that the in to which due is unravelling The elements. is the business process been therefore taking show parties’ the impossible only on parallel proving political these are have to role first ‘old’ leadership, published by oligarchic presump difficulty combines oligarchy top far how a and existed control Profes will groups oligar part minor bases. inter A from lead been ana pro that and and the re in be to in is ------

9 POINT OF VIEW 08/2016 10 POINT OF VIEW 08/2016 Unless stacles mechanisms. market well-functioning with efficient state ment the tiveness oligarchic nerstone’, In oligarchy. servations, on why In the the many last de-oligarchisation, in this title conclusion, hindering two the of occasions, groups in Ukraine’s problem of dysfunctional especially decades, order this in Ukraine’s paper this to has is Ukraine, reforms and solved, emphasise about not paper which the therefore system happened efforts oligarchs the depends Ukraine lead will has persistently that that to try one to been the in on has exit they will are to of Ukraine. conclusion the called answer the formed referred the not are future most strong be post-Soviet the for The able in the important and that strongest to of Ukraine influence author’s question to as Ukrainian promised the build the model. effec over ‘cor ele ob ob an of of - - - - -

never 4 • • • chic Before 1. I. included: prior 2014 to tures got of type For The ‘old’ (temporarily) oligarchs on defensive the the http://www.osw.waw.pl/sites/default/files/prace_42_en_0.pdf ence Uk Ol the group of Dmytro F ofgroup Dmytro the Akhmetov of group Rinat the F so-called the chemical and new assets; acquire quickly to ods most the extended TV (); channel, then tial the to energy conflicted

groups of more the constituted key i

of channel, then the rain entrepreneurs political until agricultural g business expansive Viktor arc financial information, mechanisms (DTEK), Revolution and President. recently and one into and e h

pluralism. over Yanukovych, groups among t s in gas of backed various a metallurgy amily sector oligarchic monolith, the sector see: a sectors the on during dozen Until of others). safeguarding he systhe S. Ukrainian largest most , Dignity, different (PUMB Matuszak, sectors 4 led The (HarvEast) with irtash the (DF smaller the group, is by powerful had and most Firtash, Maidan, television Group) one Oleksandr rule politics, bank), of there political contradictory e the The , m o the important the which groupings of the of oligarchic coal and oligarch the and one were OSW Studies OSW influence richest the Viktor economy, the f p specifically stations industry parties. used Ukrainian telecommunications the Family of Yanukovych, media ost four democracy. the oligarchic in Yushchenko media man whose thuggish interests, -M Ukraine. , mainly ranging most September major This (the had in (), aidan in Ukrainian (the Ukraine), influence oligarchs been Ukraina Ukraine influen was The oligar struc son in meth often Inter They from influ 2012, and one the the of - - - - - 11 POINT OF VIEW 08/2016 12 POINT OF VIEW 08/2016 managed with Kurchenko) governor energy As was him on • where completely the tem the The influence. political and ened. rect the fectively of sets the anti-Russian a Kyiv (MAU oil Agro-Holding). (Privat agriculture tution), sector; energy the in expansion his finance to loans the finance erful of group Ihor the career who Party hope conflict former vicinity in with remaining as arrested direct the Rinat market), most the its minister and maintain new that oligarchic stabilise airlines), to political of of he leading war-torn consequence lost sector the deputy expand Akhmetov, he Regions’ of boost fled of the traded in this government his informally the energy its the two March rhetoric, to Dnipropetrovsk Eduard very would (PrivatBank, business immunity. this his the members , significance prime groups . chemical, his major in Donbas, four-year K political media

strategically sector close Russian influence. one olomoyskyi 2014 of give Stavitsky substantially supported minister and the groups since which, assets of At ties (including in (the Dmytro even him (Ukrnafta, the metallurgic rule, the in Revolution significance Ukraine’s in gas, with the 1+1 March He main are an oblast, the combined though same emerged lost Serhiy , and important TV and 1990s, quickly instrument the one Firtash, located. Russia. Ukrainian at business channel control the boosted Gazprombank time 2014 so-called the of their his largest the of in and Arbuzov, while active Ukraine’s Yanukovych substantially Dignity, with entered the main home was on At request He Ihor transport region of associate and the the beneficiaries initial to financial his managed oligarchic some also his appointed mainly separatists player Kolomoyskyi put region, others) other onset the an the popularity skilful most of providing in provided of pressure phase al the family, sectors former Family the Serhiy his in ­liance in weak hand, of insti to pow and sys and use FBI the the the his as di ef in of of ------

rectly Their the ment the repair painful fensive, them, a 6 5 precedented and Yet exploitation state. of the parasitic their and politicians with politics managed garchic and As to revolution, of have the not they expropriated. been aftermath sociated leaders the dent to curated but In For de-oligarchisation the thrived after-maidan-old-system-a-new-ukraine www.osw.waw.pl/en/publikacje/osw-commentary/2015-02-16/oligarchs- old state. the from leased had despite a most rigged political his UE, spent Yanukovych’s autumn result, concluded system United more position after would of political of and business reforms, the by uncertain with powerful the to the public the thanks more information, Serhiy the 2014 economy. IMF in importance when keep ruling, States. state, have the Opposition initial a was Maidan Firtash’s ‘new’ in and than empires’ assistance tenders the Party their oligarchs to been social late Lyovochkin, envisaged about administration. of threatened Since an business uncertainty corruption-based Ukraine, 6 ‘old’ see: Ukraine

a Several 2014, Austrian DF of status year difficult and of and and W. Bloc the that oligarchs success Regions) Group Akhmetov of programme Konończuk, because the OSW Commentary OSW under privatisations. in interests political future influence, time, that (a factors as lost an by the country to and grouping court important lay would influential carry control and the home It found he Association their problems, of primarily and contributed should Oligarchs mobilisation has deals in refused programme the their including and was have out of Ukraine arrest Firtash businesses themselves been of , former the The 16 players with the in people be ready business genuinely deputy, February two after the to in living the noted Agreement secret until, coalition declined the hand to by titanium their continue ‘old’ chief the to conditions was for formerly in this. prosecuting had authorities in undertake on that one Maidan: 2015, of in oligarchs interests. Ukraine’s him relations systemic stripped of , high the the hither Firstly, an plants agree of Presi in while http:// to with over 5 oli un

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13 POINT OF VIEW 08/2016 14 POINT OF VIEW 08/2016 ongoing 7 Source: litical ly, the a remain the ation. cial (May 2016) Ukraine’s in market television shares The 1. oligarchs’ Chart influence. business much of their preserve tral camp advantage tain some Dmytro The control Author’s consequence the 2016), (May http://tampanel.com.ua/ Committee capabilities <1% oligarchs post-Maidan government instruments channels –13% and deputies other oligarchs–5% conflict Secondly, Committee Industry Television oligarchic 77% in war Firtash, often own of politics of with these who the would because calculations, owned and had were the other –17% bodies, political Viktor system to Ukrainian Viktor Pinchuk–23% Russia. controlled despite divergent control divisions. influence oligarchs’ in have by of sharp which Pinchuk had possible It elite, seriously the based the of would market. many interests. entered politics, contrast Thirdly, nearly four did organisational weakening enabling on retaliatory and not figures have sectors destabilised oligarchs 7 all Finally make an including to the Rinat The inevitably major –20% the from alliance the

oligarchs of of oligarchic for weakness and oligarchs Akhmetov) –21% , action the the their strength (Ihor television a in the coherent most Television economy, with particular led positions, internal on Kolo retained groups important to of to sections the and ­moyskyi, open stations. the together survive, political Industry part and finan situ took cen over cer and po as of of ------

the millions 9 8 cance. cial the The 2. Source: 2016)(April sector Ukraine’s in banking shares The 2. oligarchs’ Chart powers prevalent role funding groups According Before Co-operation new the government with ing народу‘, любов за amounted politics/2012/10/121011_election_ukraine_advertising_cost_sd.shtml of Firtash), Ukraine’s (). most moment restored parliamentary in bankruptcies, by of Ukraine Bank National other –57% Election the entered while – 2014, all of Finances expensive in a Ukrainian banking 8 to to Ukrainian dollars fact Ukraine, in US$2.5 election the 2004 strengthening the the campaigns and that oligarchs’ and BBC, sector. billion. oligarchs’ elections constitution battle according the experts Credit in parties is it political

11 banks Europe, is one

However, October С. Дорош, ‘Виборча реклама: 20 млрд.гривень banks (Kostyantyn the for quoted in ahead of affected the in struggle oligarchs seats Ukraine to the system.

accounted 2012, October each by the which of estimates. keys Ihor Kolomoyskyi(PRIVATBANK) –21% the the in included

economic Zhevago), http://www.bbc.com/ukrainian/ Russian capital–15% time to BBC, the 2012 are All who other oligarchs–7% to weakened for regain 2014, new the understanding costing the parliamentary a traditionally the 9 provide crisis and

much total In Nadra conducted major parliament, political Financial

, the marked caused campaign greater hundreds presidential bank

most conditions oligarchic a Initiative elections signifi (Dmytro share among number under a of spend their cru and the of of - - -

15 POINT OF VIEW 08/2016 16 POINT OF VIEW 08/2016 term of parties on political The of influence major 3. oligarchs Chart Bloc’s the from parliament to list. elected the in oligarchs whose of in the managed their In and ties. pened Subsequent termath and camps Vitali parts the Ihor Kolomoyskyi Arseniy the Opposition as sections While suggests status

was a

business of Verkhovna Rada parliamentary Bloc Poroshenko result of Klitschko) of the to hold the effectively it the place Yatsenyuk’s party, developments as president is of the that Maidan. over difficult Petro Bloc important the partner, their new Dmytro Firtash while Ihor and political individual deputies Poroshenko a ’s leadership and people elections, The marriage to the Kolomoyskyi the activities

People’s

Dmytro People’s Front People’s precisely the ‘stakeholders’ demonstrated two Opposition oligarch elite are on prime political centres the controlled Rinat Akhmetov started between the Front, that Bloc Firtash during gauge lists minister, Vadim is ‘old’ came (the Bloc. of formations, particularly

Self-Reliance the to of in the power has the much that Radical Party oligarchs find nearly former by Novinsky, Ukrainian to Batkivshchyna Radical Moreover,

People’s Will influence oligarchic substantial entered Rinat

power Revival them

what Non-affiliated no consistentinfluence in of all UDAR Kyiv, the an influential Akhmetov major reasserted necessary. Party had in informal has analysis that politics, some present groups i.e. the party clout been hap par and the the af of - - -

their oligarchic crisis source curb The 12 11 10 the access words, each agreements has rhetoric. the ed. dia “De-oligarchisation introduce vych-era of oligarchic conducted the for Chemical the sought licenceits extended.

Akhmetov’s

the rus/news/2015/03/29/535932/ гархизация‘, – деоли ключевое власти, во не конфликт Это Укрнафте: об ‘Порошенко A. Джумайло, Е. Хвостик, ‘Владельцы Evraz сдали кокс’ сдали Evraz ‘Владельцы Хвостик, Е. Джумайло, A. http://www.kommersant.ru/doc/2797444 2015, gust US$6.7 oligarchs’ support. Consequently, instance fact shrunk, world’s largest actions other, banking the oligarchs, in of to to however, that billion great Ukraine For privatisations, take oligarchs’ tenders Plant order companies, solely groups in richest of under as with The Kyiv

instance, Akhmetov assets

in the .com.ua, loans. Ukraine; over profits can 2015 and from in indications in were did Ukrainian the and has the were which been the

a people. the and is would is did influence. 10 Some stake

not the

under currently most my wealth caused some public US$16 in oligarchs’ not country, and not seen even which took launch March the Russian key were 12 be in followed 29 even powerful

billion Inter, While that Yanukovych, of leadership in the safe, politicians procurement March of over

allowed starting serious estimated Nevertheless, which in the also most and threaten a 2015 this VOG interests. in many single Evraz his in the the most 2012. 2015, by adversely return they was oligarchs President of have filling television problems to

accumulated position. any Dniprodzerzhynsk at hardly The case http://www.epravda.com.ua/ the recent prosecution company, offered

expand US$2.3 indeed to was are On value been real procedures, reverse for Ukrainian station had the affected the the cut reflected

Forbes independently political billion, Poroshenko of steps We , for station, guarantees the unable been Kommersant their deep assets contrary, off chaos.” while are chain, the many assets case against or

to compared illegal ranking after held economic holdings; oligarchs its Yanuko trying restrict and a to actually has 11 include Firtash

steady initial of by one , of These Coke- repay 28 some their said: me that and Ihor had any Au the the

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17 POINT OF VIEW 08/2016 18 POINT OF VIEW 08/2016 the restricted Ukrainian tionally which some sidies able over Akhmetov’s million. clear unclear for five had Kolomoyskyi the shares ing (14% One three-fold US$7.1 to billion. kovych to companies failed of senyuk’s further the a the country:Ukraine tor Kolomoyskyi exercise wealthiest minority government repayment been year to could of the needed reasons Pinchuk wealth to exceeded had ‘old’ lift (with Ukraine’s era, links those been The energy dismantle party after taking and the mainly government point bill, oligarchs that of control interests,

2016. People’s stakes. change ceased has

the one between and each oligarchs’ subsidies the then the long of as US$100 company had all imposed to shrunk

his http://www.forbes.com/billionaires/list/#version:static_ GDP State of outstanding benefited Revolution of government a many discontinued the the business obstructed the over them exercising result When been did Front (even at which this Treasury elite management from on arrangements, most million interests). occur that is important greater examples Ukrnafta, generating were electricity estimated the of oligarch partner was Akhmetov’s if and US$1.5 appears important time), of which it in tax bill his the estimated still Dignity particularly the annually). did gas the holding transparency Hennadiy billion was amounting long-term For amendment at and in of oligarchs, in permitted not some enterprises, purchases gas decisions substantial exports US$1.3 to 2016 how instance, which ultimately dating the to Yatsenyuk. company confirm sources do sector, 51%). at US$1.2 Boholubov oligarchs billion. this On the government anything US$25 active operational introduced he after to back despite However, the new him from of which on figure billion. of the deputies had around profits The DTEK in amended, the billion profits has positive Ukraine in For to would government to existence which wealth Russia, held to joint not only defending had the The decreased postpone example, (the for was actively US$400 in changed; for control in for in 42% World’s Yanu tradi of cease stock some hold 2012, 2013 side, they sub Ihor first un Yat and and un Vik the of of ------

weeks facto adopted down, Maidan port under ness Revival The sector. that process in reform the ating influence Dnipropetrovsk Poroshenko exit charge ple’s months (who ful ate Bloc company. In have come terms. to garch led lomoyskyi’s the oligarchic the interested garchic ternative to

demonstrate the the interests in by arrest only of

interests of and Front, coalition controls house the and old aftermath Volodymyr of Batkivshchyna the of and fractions of the leadership the major building disputes, and local if The coalition on of in groups remaining 2016, which they fundamental People’s arrest, growing removed of People’s 14 his early his were the conflict with the elections

April again conflict in and main had efforts Prosecutor’s converged. of increased. up Poroshenko even Groysman elections, March not Yatsenyuk there three and (specifically Will, the and the

then Front. failed UKROP, political that Kolomoyskyi coalition has affected, aide, between before thus to in government government are Self-Reliance, opposition new

all since there 2015 the keep October to It Hennadiy many controlled which end None The a and Office) has ambitions reach gas coalition’s was and because could new members,

been control and is the the the

Poroshenko market a been supported indications Yatsenyuk of

ultimately from 2015. symbiosis, would party even parties: an ‘old’ endorsed smoothed and not government these coalition president) Korban, of of the possible agreement. by Yet have though fully his break-up the oligarchs the entered law that the have oligarchs. influence groups the Kolomoyskyi’s Dnipropetrovsk post profitable by in oligarch’s camps

nonetheless was a that persuaded count Bloc surprising crisis out, who been new Opposition to April Korban the occurred an as crisis quite largely the following are and and although This government had Poroshenko governor and on informal After the in of 2015, president currently Ukrnafta the the because the growing the remains the success appears only been the

to at recre many led initi busi post- after Bloc,

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19 POINT OF VIEW 08/2016 20 POINT OF VIEW 08/2016 works reforms. ing to pay is who internally voted respectively. the hovna Rada ment The groups. ‘old’ oligarchic sight, Bloc the that and Revival ture weaker also the government Poroshenko a voted new and there often votes, were, against between as price oligarchs. strong. and than one Oleh Ukrainian to unstable. is vote

(227 the as for People’s of support Both indeed the Lyashko’s endorsing they However, the sections coalition the differently votes, Bloc, may This previous are factors only extra coalition a A Will the also i.e. within the parallel, is kind of Radical the possess how will each Groysman a votes necessary parties, count conserving the from group coalition government). of the and have the post-Maidan time internal informal by Party, on a the orbit weakness the of very which offering to the the government, minimum more rest and the Groysman seek of where support slim government opposition Kolomoyskyi’s coalition. have of old the This than help political concrete the majority of system oligarchic Yatsenyuk 23 being the means of faction a of government and which dozen the the In new exists elite and will 226) concessions in 19 some Opposition that oligarchic influence influence (e.g. the coalition deputies deputies suggests hinder govern and and have within in votes Verk they the are are fu to - - - -

13 While II. new influence of the years Prime of groups, oligarch the business cal links to After budget.state financial representing be is key stakes fectively in After

far acquire individual Ukraine their spoils, argued 2016 would latter seems ing politicians. and officials vych’s tor’s new most state-owned

administration New o New the to also from any the therein) Minister Yuriy office the took comprised top own. them, be to circle, prior replicating valuable assets. Maidan, flows has in steps saw ownership ‘old’ have that Maidan,

difficult under transparent leadership over Lutsenko, had business ministries been l the This to and a against been set oligarchs’ formerly and, sections i not some parallel g Yatsenyuk Moreover, businesses. taking

the to new state-owned the arc even groups out of instrumental prepared process struck find

usually, in the the of

politicians new previous of business and to

of then the Ukraine leadership any h state-owned new of patterns and power, process held and Ukraine systematically government between made of t s in assets politics, the explanation targeted has a there and prosecutor trusted Some to has single state by assets

new governments. enterprises profit

followed successful in – albeit people and President whereby in

not the of of are he g he strove question case bodies, of have as only

taking held government taking corruption people waited ‘old’ large businesses. been their general, many for illegally discussed a against associated a by o less and this taken expand small to a people ve in entrepreneurs which

for operational fully members people Poroshenko efforts pattern operational formed build in the indications other their influential admitted

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over then each over may May two tak that the (or the ef an on to It 13 - - - - -

21 POINT OF VIEW 08/2016 22 POINT OF VIEW 08/2016 elected It people K Ihor 1. viet trusted which business years were who respective sponsible people Poroshenko’s Petro from Yatsenyuk’s Arseniy and Their influence representatives cuss ing This new leadership. the to links their to thanks thriving, been Yanukovych who control nies. and domain only Minister question below). most ing may The business-politicalThe of P circle stepped by business army a used process Those nonetheless what elected important operational minor as seem groups ononenko in over to the Given of man are partner Yatsenyuk President deputy is the to informal, in circles, we activities Ukrainian possible disputable the furthermore down to be simplification era. is since Verkhovna Rada the milieu together their know the finances second-rank, not of players , Since since CEO already model mid-1980s. who the Verkhovna Rada as as they Poroshenko’s yet modus behind-the-scenes (albeit (the are of so PM most state to companies media of had 1992; the complete. President of relies in did not far latter use surrounded in Poroshenko’s held the to only Maidan, Ukraine’s operandi not of to part military about April

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25 POINT OF VIEW 08/2016 26 POINT OF VIEW 08/2016 sion fact chief interests as istration prime Ukrainian The market and gorishin private to large 20 19 investigation year, one of siuk, siuk, Poroshenko sen from is estimated which tares that the

Interview quite feel Ukraine’s a Страсти по Григоришину: олигарх оказался в российском розыске, российском в оказался олигарх ua, Григоришину: по Страсти sluzhbe-otnoshus-kak-k-sluzhbe-v-armii-_.html gazeta.zn.ua/internal/glava-administracii-prezidenta-boris-lozhkin-k-gos orishinu-oligarh-okazalsya-v-rossijskom-rozyske Avakov, president of the that close candidate large course

of Grigorishin. 8 who Grigorishin tender

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Ukrainian Yatsenyuk. of Boris 2015.

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both sector. private a http://forbes.net.ua/business/1410530-strasti-po-grig regularly agriculture land, US$1 supply interview Lozhkin, member was Grigorishin’s at close been the redundant is Poroshenko Poroshenko Lozhkin, men’s the safe; but referred billion. producing I his

post tax business.” electricity 19 believe links experiencing initiative of

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http://ukrainian.voanews.com/a/yuriy-kosyuk-eu/3149549.html area” was on Channel (Poroshenko position that say deserve last Roshen of market appointed products to in him his regard supervising quite mounting because be is which of it state while two Kosiuk oblast. interests stated campaign as a only regarded in Ukraine’s bank. in 5), reasonable separate was good to companies, situation, his surprising that years, to defence the the which the he said Kosiuk Nestle Investment benefited Shortly advisor. claims VAT reasons put The EU extent area. criticism contacts Ukrainian criticised that the of as and exports promise has in are reimbursements attention. company has issues. as Ukraine President security a which that He a not that market because after (second-rank) deputy In worth its so-called concern the including offered was with opened had over Bank early the revenues agrarian and he European Nonetheless, to “had he have been dismissed and has an EU could Poroshenko Poroshenko, sell chief price). lobbying the has was controlled 2016, P its been the him estimated etro P blind expected. Association defence expanded driven markets the all oligarch been , elected lobby, of sell cheated have crisis voanews.com, among the US$1 Union. oligarch his It his trust most oroshenko in for recently was the oligarch Kosiuk Юрій Косюк: «Зона «Зона Косюк: Юрій down for block. administration, businesses which increased. by December has billion, and (…) who US$1.5 president, his had other considerably Ukrainian 21 company with Poroshenko prized only

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27 POINT OF VIEW 08/2016 28 POINT OF VIEW 08/2016 also 22 The 2. 2014 While scandal. the 21 ing first and influence native main favoured dia, pinpoint triggered the ity, istration registered any ish post ruary remains aged April formation

and the People’s Front the and The business-political of Yatsenyuk Arseniy circle August tree_rinka.html economics.lb.ua/finances/2015/02/11/295223_bank_poroshenko_rastet_bis , рынка быстрее растет Порошенко Банк have Virgin the Ukrainian laws, as which People’s as managed year as to reason 2016. 2014). to a the prime the Ukrainian negotiate result also one co-operating any of and criticism Poroshenko’s in of 2014, revelations that thoroughly Islands a The second-largest a Even

the the Front for company of been company minister specific the its to president emerged leaked i.e. the this president’s Groysman expand leader though president favourable emerged silent to from banking after most is act with measures because (he delivered and called documents did Arseniy business some about about he he influential its as has had parliamentary critically cabinet the not from was managed had term, a sector. holdings conditions Prime been of managing been People’s the it. in him forced already Yatsenyuk his taken a the interests. The itself despite showed Poroshenko major is 22 implicated first political from Asset politicians

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and Ukrinterenergo. chief have one the of especially appointed they as bill like

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Ivanchuk Company Ivanchuk After members together. most for interests reported Security and include and Andriy at he public at men’s near Pavlo stock Ivan with that An was

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29 POINT OF VIEW 08/2016 30 POINT OF VIEW 08/2016 a Mikheil been the Ivanchuk company. manufacturing abioethanol in partners in the 23 25 24 position then the Ivanchuk privatisation. (a was Yurushev with invested In he of panies, turer. with he oped massive

luxury industrial Ukrnafta. 2009 03/5/7060596/ Герои большого спирта, спирта, большого Герои Саакашвили оценил потери бюджета от олигархов в 5 миллиардов дол ларов миллиардов 5 в олигархов от бюджета потери оценил Саакашвили гр оооскй Мї омв пшт Лоокн Пінчуком, з Льовочкін пишуть розмови pravda.com.ua, Мої Коломойський: Ігор publications/132247-geroi-bolshogo-spirta.html news/2015/12/6/571099/ allegedly started

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man of embezzlement accused office. party.

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people that press He Energoatom, political chief the the nuclear and few of an fuels to electricity in 2006 claimed thanks having committees consecutive State into president, the US$300 of terms other reported However, investigation the years was mechanisms. (including 8 Energoatom, and till state April corruption has skill, power Ukrainian Financial The forced that state-owned taken the with to for he energy million) been output. 2015, worth budget only an that who proving has end bringing the plants numerous in governments practically to over http://www.pravda.com.ua/ informal Ukrgazvydobuvannya, a the result Swiss Inspection been government of controls against schemes resign Post), complex He member the around In as had 2015 and parliament. which that April a said companies state-owned the regarded of result, prosecution lost detected he protecting and irregularities deal these Martynenko, the Martynenko crisis that any €50 that 2015 of chaired of account more must (PIF), the prosecu had Ukraine, Yatseny also between million. govern Mykola Mykola existed allega under as Keep in affair over been than pub have also op the the the the au for ------

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33 POINT OF VIEW 08/2016 34 POINT OF VIEW 08/2016 Ukraine in groups oligarchic main of the Links 5. Chart Kononenko Ihor Dmytro Firtash Lyovochkin within theorbitofinfluence close links Serhiy Poroshenko Kosiuk Yuriy Petro Akhmetov Rinat Grigorishin Konstantin People’s Front Yatsenyuk / Kolomoyskyi Arseniy Ihor Martynenko Mykola Yurushev Leonid Ivanchuk Andriy seniy 35 Several III. temic, A business, omy, did mal chic adapt oligarchic mine same the sult garchs oligarchs i.e. President oligarchic who a in The Revolution Orange the 2004. in nonetheless public level

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