The law on languages outrages page Freedom House presents page The history of national page the public and reveals new its latest report on Ukraine's symbols from Kyiv Rus political scenarios 4 fragile democracy 6 to independent Ukraine 36

№ 11 (34) july 2012 SINKING DEMOCRACY

Ukraine's leaders have steered the country dangerously close to autocracy

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

|contents briefing focus Parliament Gone Wild. Again. David Kramer and Robert Nurick A Fragile Democracy Using the language bill and the talk about nations Freedom House’s new report scandal around its illegitimate in transit and Ukraine, how raises the alarm about Ukrainian passing as a cover, the party in power much the memory of a society and government as is pushing through other initiatives democratic experience matters Ukraine’s post-Orange Revolution that would otherwise be met with and how painful democratic progress continues to plummet resistence by the voters 4 transformations may be 6 8 Politics The Father of His Country? What are they thinking? By presenting Ukraine’s top officials as Ukrainian leaders ignore the requests patriots and statesmen, the flattering media and demands of Western officials despite are doing society a disservice growing tension

12 15 Neighbours economics

Cold Peace: How Much is Confidence Worth? CHART 1. Household consumption expenditures Price index in 2007, 100 = Q1’03 Percentage of consumption expenditure 250 Consumption expenditures: household final consumption expenditure 110 index (in conant prices of 2007; 100 equals Q1'03 index) Putin’s pole of power The heavy impact of public left scale challenges Europe distrust for politicians on 200 100 150 90

consumption, the banking 100 Real GDP (in conant prices of 2007; 80 100 equals Q1'03 index) left scale 50 Wage share in GDP 70 system and savings right scale

0 60 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV 2003 2004 2005 2006 2007 2008 2009 2010 2011 16 Source: State Statiics Committee, NBU, own eimates 20 Investigation Society

pyram id r u

 М

u Financial Pyramid Reincarnated The Soviet Echo and the Ukrainian

r

Sergey Mavrodi e М

М Many young Ukrainians fell People Temniki for the notorious 1990s Ponzi Barely knowing what to expect from Tysiachniki scheme run by a once-jailed Ukraine, foreigners are surprised by the Sotniki Russian fraudster exotic combination of old architecture, Desiatniki great food, leisure and the soviet 23 imprint they discover 26 Rank-and-file inveors

Hope Springs a Trap: Why Don’t Ukrainians Smile? The absence of optimism The Ukrainian Week digs into the nation’s plays a large role in keeping insecurities that stem from too much people trapped in poverty patience, a defensive reaction to what is happening in the country and the inability to 30 find joy in life 32 history culture & arts Symbols of Independence: Going Home to Find Yourself Ukrainian Hercules Ukraine’s flag, emblem and Film director Find Ukraine’s funniest anthem have a long history Taras Khymych talks on folk tales retold in a new and national status, but have documentaries and his series of cartoons yet to become true symbols film about Zakarpattia in The Adventures of of the nation 36 1919-1939 40 Kotyhoroshko and Friends 42 navigator Children’s Dream Factory 10 Emails From Rivne Masha Ellsworth, a Ukrainian who is now tell the legends of its name, part of the Pixar team working on the underground rivers and ghosts fishing recently released Brave and upcoming in them, surrealistic pubs, historical feature cartoons, reveals her path to controversies and much more where the magic happens 44 48

international monthly edition

The Ukrainian Week № 11 (34) July 2012 Mailing address: PO Box 2, Kyiv, 03067 Founder: ECEM Media Ukraine LLC Publisher: The Ukrainian Week LLC Publisher address: vul. Mashynobudivna 37, Kyiv 03067 Ukraine First published in January 2010 E-mail: [email protected], Tel.: (044) 351-1300 State registration certificate 16412-4884P of March 13, 2010 www.ukrainianweek.com Bohdan Andriytsev, Director, ECEM Media Ukraine LLC Print: ТОV SKIMP, TOV ART STUDIYA DRUKU; vul. Boryspilska 15, Kyiv Serhiy Lytvynenko, Editor-in-Chief, The Ukrainian Week Ordering number: 94-07/12. Print run: 15,000 Natalia Romanec, Shaun Williams, Editors; Sent to print on 5 July 2012 Anna Korbut, Translator Free distribution № 11 (34) July 2012|the ukrainian week|3 briefing| 8 June 12 June 14 June The Euro 2012 football The March of Millions The broadcasting championship officially 2 takes place in Russia. of football matches kicks off in Warsaw. Spain Under different estimates, in the Russian lan- and Italy play the final 20,000 to 100,000 guage is banned in match on 1 July in Kyiv people take to the streets Kazakhstan Parliament Gone Wild. Again n 3 July, the majority of MPs ignored more tion allies and filed a letter of resignation. Within than 2,000 recommendations for amend- 24 hours of the passing of the law, a slew of MPs ments to the draft language law and by- whose cards were used to vote in support of the Opassed parliamentary procedures when law, announced that the result was falsified, since passing the law, which significantly limits the most of them were not even present for the voting. spheres where the Ukrainian language is used as Volodymyr Lytvyn, who is still the VR Speaker de an official state language. 248 votes in its support jure, might refuse to sign the bill as a result of the came from all but one MP from Volodymyr violations that occurred during the voting. To Lytvyn’s People’s Party and the Party of Regions’ make this easier for him, the opposition has al- (PR) MPs from Western Ukraine, who had refused ready drafted a resolution that can serve as a basis to support it in the first reading. On the following for conducting a second ballot on the language law. day, Speaker Lytvyn who had previously insisted However, it appears that the government has some that parliament would only consider the draft law compromising information concerning his involve- in autumn due to the huge amount of amendments ment in the murder of reporter Georgiy Gongadze, to it, said that he had been betrayed by his coali- therefore it remains to be seen whether he will dare to make this bold move. The passing of the law has triggered a parliamentary crisis that could explode into a political one. Ukraine has already seen a wave of protests and clashes be- tween protesters and police using tear gas. More and more local authorities strongly condemn the move. Even Viktor Yanukovych mentioned the possibility of early parliamentary elections, while the opposition insists on a complete reboot of the government, pro- posing a combined parliamentary and presidential election. Moreover, the effect of the passing of such an extreme law on the electorate is questionable, as it pushed the voters who view it as a threat to Ukraine’s statehood and identity to rise in protest; the PR elec- torate includes quite a few opponents of any special status for the Russian language, and the share of the Russian-speaking electorate that is skeptical about the law is becoming more irritated as they have abso- lutely no problem speaking Russian in everyday life, yet foresee more difficulties as a result of the govern- ment’s policy. A survey held by the Razumkov Center in the second half of June shows that 65.1% of voters view the passing of the law as the PR’s pre-election move, while only 25% support the idea of making Russian the second official state language in some re- gions. There are several scenarios to explain why parlia- ment took this bold move, blatantly bypassing the

The month 21 June 1897 23 June 1917 28 June 1996 in history Yuri Kondratyuk (Oleksandr The Tsentralna Rada The Verkhovna Rada Shargei), pioneer of astronautics (Central Council) passes passes the Constitution and spaceflight who, in the early the 1st Universal in of Ukraine 20th century, foresaw ways of Kyiv thereby declaring reaching the moon, is born Ukraine’s autonomy

4|the ukrainian week|№ 11 (34) July 2012 |briefing 26 June 3 July 4 July Higher Court of Limited Jurisdiction confirms the The European Court of Volodymyr Lytvyn and Mykola illegality of the criminal case initiation against Human Rights deems Tomenko, the VR Speaker and Leonid Kuchma concerning the murder of Geor- the arrest of ex-Interior Vice-Speaker, file letters of giy Gongadze. Gongadze’s widow will appeal MinisterY uriy Lutsenko resignation after the infamous against the ruling in the European Court to be illegal law on languages is passed

Euro 2012 is No Cure for Isolation Parliament Gone Wild. Again As planned, the government is trying to convert the positive impressions of the voting procedure. Mr. Yanukovych could be inter- “great football celebration” into politi- ested in a short campaign period. This will give the cal dividends before the election. Viktor candidates in first-past-the-post constituencies Yanukovych wants to convince people “processed” by the party in power a competitive that fans have seen Ukraine as a “modern advantage, unlike candidates from the united op- European state” while First Vice Premier position who are not even determined yet. Using Valeriy Khoroshkovsky insists that offi- the language bill as a cover, the party in power is cial Kyiv is now one step closer to Europe. pushing through other initiatives, which would In fact, though, Mr. Yanukovych’s regime otherwise be met with resistance by society. It has not overcome its international isola- passed the law that limits privileges for people in tion. Western media stated that Euro 2012 the first reading and the law that removes tenders will not improve Ukraine’s relations with by state-owned enterprises from the jurisdiction of the EU even though it was instrumental in the Law “On State Procurement” thus opening new Europeans learning more about Ukraine. ways to grab taxpayers’ money through uncompet- European politicians boycotted games itive tenders with just one participant for those played in Ukraine: other than the representatives of Poland as the co-host linked to the government. and Italy and Spain whose teams played in the finals, very few leaders vis- There is another possible reason behind this hasty ited the games, and those that did were generally from post-soviet states. scenario. Sergei Ivanov, the Head of Mr. Putin’s In protest against political repression, Vivienne Redding, Vice-President Presidential Administration, visited Ukraine be- for Justice, Fundamental Rights and Citizenship, and Elmar Brok, Chair- fore the vote. On 12 July, Vladimir Putin himself is man of the European Parliament Committee on Foreign Affairs, blocked coming to Yalta to revise gas deals, as has already the signing of the agreement on simplified visa rules with the EU, which been announced by the Ukrainian government. the Ukrainian Ministry of Foreign Affairs expected to happen on 23 July. Last time Russia took pseudo-concessions, it was Even Poland, Ukraine’s most loyal proponent, said that Ukraine’s Euro- in exchange for part of Ukraine’s territory: the lo- pean integration is under a huge question mark, due to its domestic po- cation of the Black Sea Fleet in Crimea was ex- litical situation and uncertain development of events prior to the election. tended until 2042. This time, the Russification law On 27 June, the PACE Monitoring Committee supported the recommen- may be viewed as the price for a gas discount, since dation of Co-Rapporteurs Mailis Reps and Marietta de Purba-Lundin of it is an important factor in Mr. Putin’s priority to the necessity to abandon the idea of calling the election undemocratic build the Russian World and reintegrate post-so- and illegitimate if individual opposition members are not allowed to viet territory. run. However, if the opposition loses the election and succeeds in con- vincing the West that it did so as a result of manipulation and falsifica- tion by the party in power, this could trigger a tougher reaction from info the West. Meanwhile, the US will have its presidential election and the Some countries have an official native language and Eng- White House is likely to pay more attention to FSU countries if a repub- lish as a temporary official language. Hindi, for instance, lican wins. The cooling of key markets for Ukrainian products will affect has been India’s official language for over 60 years now Ukraine’s economy and aggravate the hunger for loans from internation- but English that was temporarily made official as the lan- al financial institutions mostly controlled by the US and Europe, since guage of international communication in the multi-ethnic Kyiv will still lack the funds to cover multi-million repayments of foreign post-colony is now essentially used as the single official state language. Unlike English, the main international debt. And Mr. Azarov’s hopes for renewed IMF lending, once Ukraine language that has had a positive effect on a country, the fulfills its requirements by taking unpopular action after the election, domination of Russian has preserved soviet heritage in are unlikely to come true, as international financial organizations made Ukraine, causing it to lag behind developed countries and themselves quite clear last year: talking about renewed cooperation while guarantees that it will never be integrated in Europe. democratic norms are not met in Ukraine, is impossible.

1 July 1989 2 July 1918 8 July 1709 14 July 1947 The People’s Movement Hetman Pavlo Skoro- The Battle of Poltava brings a Viacheslav Briuk- of Ukraine is founded as a padsky approves the decisive victory to Peter I of hovetsky who initited civil-political movement that law on the citizenship Russia over Swedish forces the revival of the grows into a major party of the Ukrainian State and those of the Cossack Het- Kyiv-Mohyla Academy after the USSR collapses manate led by Ivan Mazepa is born

№ 11 (34) July 2012|the ukrainian week|5 focus|expert opinion

Robert Nurick, a senior fellow with the Atlantic David Kramer, Council's president of International Freedom House Security Program photo: reuters photo: photo: andriy lomakin photo: Ukraine Still Stands a Chance David Kramer and Robert Nurick talk about the latest Freedom House report on nations in transit, including Ukraine, how much the memory of a democratic experience matters and how painful democratic transformations may be Interviewer: UW: USSR collapsed 20 years DK: Mr. Putin and all people Assad, but he doesn’t want see Hanna Trehub ago and the impression was around him aren’t interested to see Assad going as leader fallen from that imperialistic and authori- neighbours moving towards de- power. Some leaders in the region, tarian trends are in the past. mocracy or European integration. I including Ukraine, have taken the Yet, the latest Nations in Tran- think that memories of 2003 with bad example he set in the region sit report by Freedom House Georgia and 2004 in particularly showing consolidated control of the says that trends represented with Ukraine are still very fresh in media, pressuring civil society, try- by Putin’s Russia have an- Putin’s mind. It’s contributed to ing to create a rubber stamp parlia- chored not only in Eurasia and paranoia that the West is trying to ment, all of the going after opposi- become fashionable in Central sparkle similar movements in Rus- tion. With the upcoming election and Eastern European coun- sia. This paranoia was further fu- here there is a possibility to reduce tries, mainly Orban’s Hungary eled by events in the Middle East the consolidation of power. As for and Yanukovych’s Ukraine. and Northern Africa in early 2011. me, Mr. Yanukovych has discov- What are the key reasons be- It partly explains Mr. Putin’s posi- ered that Mr. Putin is not such a hind this situation? tion on Syria. He doesn’t love warm friend of his or of Ukraine’s. 6|the ukrainian week|№ 11 (34) July 2012 expert opinion|focus UW: In the report Ukraine’s scores UW: Human rights NGOs, such as different from that in soviet states. declined in 5 of 7 Nations in Tran- Ukrainian Helsinki group, claim For them, part of becoming a post- sit categories. For example, weak the increase of government pres- soviet country was the sense of re- judicial independence has not im- sure on them while Freedom turning to what they saw as the proved while corruption is close to House reports the improvement of true Latvia, the true Lithuania or the level of autocratic regimes. the civil society criterion in Estonia that had been interrupted. What can be the threshold of no Ukraine in the past year… The memory of culture and values return for Ukraine? DK: There are two trends here associated with that were very im- DK: Any country can cross and they may seem contradictory portant. It's different for countries over threshold and return back. I but they can actually co-exist. In one that don't have that memory even don’t think that there is anything of them civil society is more active with people that have healthy in- irreversible. Moving in democratic and animated than it was a year ago. stincts on political issues. It's direction isn’t a linear path. For in- When we were here a year ago, we harder when this is something in stance, we saw Hungary’s great were struck by the sense of hope- their heads that they very much be- progress in democratic develop- lessness and frustration. This year, lieve in but not something they've ment and a reverse recently. people seem more energized and ac- experienced in their lives. And Ukrainians had unrealistic expec- tive. Having the election in October transitions are hard and painful tations after the Orange Revolu- helps because this is a specific event because they are affected by peo- tion and Orange leaders badly dis- coming up which they can focus on. ple's experiences and that's some- appointed them. Mr. Yanukovych The second trend is that the govern- thing you can't easily erase. But it's came to power through democratic ment is applying more pressure and not irreversible. Experiences can elections, but his means of govern- this gets to the issues of the freedom change and generations change. In ment have not been democratic. of association and assembly. These this part of the world, though, But the situation here isn’t irre- these transitions coincided with versible. It isn’t too late. One of the deep personal insecurities and im- reasons why we have done this re- transitions are affected poverishment for many people. port is because we feel that it is by people's experiences DK: This is one of the most im- still changeable. Ukraine’s scores portant factors. It's not to say that are going down, no question, but it and that's something you people in those countries don't doesn’t mean that it can’t recover. can't easily erase want to live in freedom. But the It’s our hope that our reports can transition from the system in place help governments and Ukrainians trends are not mutually exclusive. to the new form of government is a themselves bring more positive You can have active civil society that very tricky process. We shouldn't changes here. can actually increase the govern- underestimate the terrible impact ment's desire to crack it down be- of the soviet system where millions UW: You meet with Ukrainian gov- cause they may view it as a threat. of people lost their lives. If you ernment officials as you work on That partly explains why we cite compare countries in East Central each annual report about Ukraine. both the increase in civil society ac- Europe and, I don't like this term, Freedom House is known to be tivity and recognize that a number but for the lack of a better one, FSU very critical towards the situation of organizations are facing more except for the Baltic states, East in Ukraine. How willing are Ukrai- pressure and harassment. Central Europeans have followed nian authorities to answer your more of a parliamentary system. questions? UW: Why are FSU countries or na- Sometimes, it's not the most effi- DK: None of us started this as- tions in transit so vulnerable to cient system but it tends to reduce sessment last and this year with an anti-democratic models of power chances that one person will come automatic view that Mr. Yanu- that include monopolization of and establish dominant control. In kovych would be a democratic economy and politics? Are demo- this region, Ukraine, Russia and leader. Actually we were very critical cratic institutions in Ukraine weak Belarus are presidential systems. towards Orange leaders. We do not and unstable due to the lack of lib- With the experience of the past 70 try to present Orange authorities as eral background, impact of the -fi years here, perhaps it's best to not good and democratic and the party nancial crisis or Russian impact? concentrate so much power in one led by Mr. Yanukovych as bad and RN: The reasons vary from position or, as it turns out, in one undemocratic. This has been a slow country to country but there are person. Unlike Uzbekistan or Ka- deterioration for years and his has some broader trends. One is that zakhstan, Ukraine has had several picked up speed in the past two culture matters, and by culture I transitions of leaders. Being in years. Yet, we have been very mean history, not genetics. There power is not a matter of life and pleased and impressed that Ukrai- is a difference between countries death in Ukraine, but it could be nian top officials agreed to meet which have had some memory of a the difference between staying free with us this year and last year. I democratic experience and those and being thrown in jail. Ukraine think this is a positive thing for which have not. It's one of the rea- needs to move away from this artifi- Ukraine. If we tried to do this report sons why we've seen such positive cial choice. It's important to have in Russia, we wouldn’t have the results in the Baltic states. These opposition figures, free press and same access there at all. If we tried are people whose vision of what strong civil society. I don't think to do it in Belarus, we probably Read their country should be is wrapped there is sufficient appreciation the whole would not be allowed to the country. interview at up in the memory that includes among the leaders of this region It suggests that Ukraine is very dif- ukrainianweek. democratic institutions, even if not that those are important elements ferent from those two countries. com perfect. Their experience is very to democratic development. № 11 (34) July 2012|the ukrainian week|7 focus|freedom house: nations in transit A Fragile Democracy Freedom House’s new report raises the alarm about Ukrainian society and government as Ukraine’s post-Orange Revolution progress continues to plummet

Author: ccording to their latest re- media, the electoral process, inde- ually sliding down to the group of Orysia port called Fragile Frontier: pendence of the judiciary and fight- partly free countries. Two years of Smereka Democracy’s Growing Vul- ing corruption, continues to plum- Viktor Yanukovych’s presidency Anerability in Central and met. Moreover, the negative trends clearly show the process of unfold- Southeastern Europe, Uk­­raine’s listed in Freedom House’s Freedom ing initiatives for the revival of a post-Orange Revolution progress in in the World 2011 report from last state system based on the authori- aspects that include national demo- year continue, with the last remain- tarian schemes implemented by cratic governance, an independent ing free country in the region grad- Russia under Vladimir Putin.

8|the ukrainian week|№ 11 (34) July 2012 freedom house: nations in transit|focus 70 years of struggle dent Roosevelt who was trying to of which was published in 1995. This for freedom boost public support for America’s year’s report is an extensive analysis Freedom House is not a new or un- participation in WWII, as isolation- of democratic changes in 29 Central known phenomenon to Ukraine, but ist sentiments peaked in US politics. and East European, Balkan and FSU for the most part, for Ukrainians, Its founders were influential Ameri- states from Russia to the countries this knowledge is limited to the can journalists, academics, business of Central Asia. The reports are awareness of the existence of such and trade union leaders, as well as based on the analysis of 7 major cri- an institution. In fact, it is one of the one-time civil servants. teria, including the electoral pro- most powerful and proactive institu- Initially, this organization was cess, civil society, the independence tions for the promotion of democ- set up to counteract totalitarian ide- of the media, national and local racy in the world. Its experts deliver ologies, such as Nazism and Com- democratic governance, judicial regular reports to the US Congress, munism through the promotion of structure and independence and the hold briefings for the Presidential democratic practices throughout the level of corruption. Annual ratings Administration and State Depart- world, endorsing the post-war At- are based on a scale of 1 to 7, where 1 ment, and work closely with the lantic Alliance, as well as key policies is the highest level of democratic world’s leading media, as well as sci- and institutions, such as the Mar- progress and 7 is the lowest. Free- entific and education institutions. shall Plan and NATO. In the 1970s, dom House experts stress that every The history of Freedom House Freedom House implemented a se- index takes into account the practi- goes back to 1941. It was established ries of programmes to promote de- cal effect of the protection of rights in New York, supported by Presi- mocracy in Communist and anar- and freedoms by government or chist regimes in Asia, Africa, Central non-government forces, not only Asia and Latin America, combining government initiatives or legislative research, human rights campaigns analysis. and direct involvement in crisis Each of the 7 criteria has a spe- zones, such as Vietnam or Cambo- cific meaning. The national de­ mocratic governance index Two years of Viktor shows the extent to which the state Yanukovych’s presidency system is democratic and sustain- able; the independence, efficiency show the revival of a state and responsibility of the legislative system based on the and executive branches; and the democratic oversight of the military authoritarian schemes and security services. The determi- implemented by Russia nation of the quality of the election process is based on analyses of na- under Vladimir Putin tional elections, the development of the multi-party system and public dia. At this time, Freedom House participation in elections. The devel- also arranged a hearing for Andrei opment of NGOs, their organiza- Sakharov and other soviet dissidents tional capacity and financial stabil- in Washington and was among the ity, and the legislative and political first supporters of Poland’s Solidar- environment in which they exist; as ity movement. well as the development of trade Freedom House has had a rep- unions and groups of society in- resentative office in Ukraine for volved in political processes consti- nine years now. In 2004, it pub- tutes the civil society index. The lished Countries at the Crossroads, independence of the media is a report focusing on democratic based on the assessment of freedom governance and compliance with of speech, including laws on libel, the rule of law in a range of coun- the persecution of journalists, level tries, including Ukraine. During the of editorial independence, public ac- 2004 presidential election in cess to the Internet and the amount Ukraine, it helped coordinate the of financially viable privately-owned first regional public monitoring of press. Local democratic gover­ the election process, by mobilizing nance is considered to be the extent thousands of representatives or re- of the decentralization of power, re- form-oriented monitoring groups. sponsibility, electivity and capabili- ties of local governance, as well as The weight of criteria the transparency and accountability Fragile Frontier: Democracy’s of local authorities. Judicial struc­ Growing Vulnerability in Central ture and independence is deter- and Southeastern Europe, pub- mined via the analysis of the na- lished in 2012, is a continuation of tional reform of the Constitution Nations in Transit, a series of Free- and the Criminal Code, the protec- dom House’s annual reports, which tion of human rights, level of judi- is direcly dedicated to the situation ciary independence, the treatment in post-Communist states, the first of defendants and compliance with № 11 (34) July 2012|the ukrainian week|9 focus|freedom house: nations in transit

ESTONIA Survey Findings The map refles the findings of Freedom House’s LATVIA Regime Type RUSSIA Country Breakdown Nations in Transit 2012 survey, which assesses the RUSSIA LITHUANIA CONSOLIDATED DEMOCRACIES 8 atus of democratic development in 29 countries from SEMI-CONSOLIDATED DEMOCRACIES 6 BELARUS Central Europe to Central Asia during 2011. Freedom TRANSITIONAL GOVERNMENTS OR HYBRID REGIMES 5 POLAND House introduced a Democracy Score—an average of SEMI-CONSOLIDATED AUTHORITARIAN REGIMES 2 each country’s ratings on all of the indicators covered by Nations in Transit—beginning with the 2004 CZECH REP. CONSOLIDATED AUTHORITARIAN REGIMES 8 SLOVAKIA UKRAINE KAZAKHSTAN edition. The Democracy Score is designed to simplify TOTAL 29 HUNGA RY MOLDOVA analysis of the countries’ overall progress or deteriora- SLOVENIA ROMANIA tion from year to year. Based on the Democracy Score CROATIA KAZAKHSTAN SERBIA and its scale of 1 to 7, Freedom House has defined the BOSNIA & HERZ. following regime types: consolidated democracy (1–2), BULGARIA MONTENEGRO UZBEKISTAN GEORGIA KYRGYZSTAN semi-consolidated democracy (3), transitional KOSOVO MACEDONIA ALBANIA ARMENIA AZERBAIJAN government/hybrid regime (4), semi-consolidated TURKMENISTAN authoritarian regime (5), and consolidated authoritar- TAJIKISTAN ian regime (6–7). www.freedomhouse.org court verdicts. Corruption is mea- ers have referred to this trend as to 12 months in detention centers, sured through the research of public the creation of “The Family” in have caused a major uproar. perception of corruption, the busi- which the sons, other relatives and The Ukrainian government is ness interests of top officials, laws friends of the president increas- actively fighting to gain control on financial confidentiality and con- ingly concentrate political and eco- over the Ukrainian media and ex- flict of interests, as well as the effi- nomic power in their own hands. ert pressure on freedom of speech. ciency of anti-corruption initiatives. Notably, the Presidential Ad- One visible fact is that the journal- ministration is doing its best to take ists and editors at most Ukrainian Where is Ukraine heading? the judiciary under even greater publications now express them- Last year, Freedom House’s special control and restrict its already lim- selves more carefully when ad- report on Ukraine Sounding the ited autonomy. Courts have already dressing politically sensitive is- Alarm: Protecting Democracy in become tools of repression against sues. Another innovation in Ukrai- Ukraine claimed that “Ukraine un- the political opposition and civil ac- nian broadcasting, obviously der President Yanukovych has be- tivists. Just like Hungary, Ukraine implemented by the current pro- come less democratic and, if current is now experiencing the direct po- government regime to strengthen trends are left unchecked, may head litical manipulation of court pro- its positions in the media, is the down a path toward autocracy and cesses and the growing interference nationwide replacement of analog kleptocracy”. Now most of the key of special services in social pro- television with digital broadcast- concerns remain the same, and in its cesses. In December 2011, for in- ing. The process is due to be com- latest report, Freedom House ex- pleted by 17 June 2015. Essen- perts focus on three obvious trends The major new tially, this is the government’s at- in the behavior of the current gov- tempt to monopolize television, as ernment: an increase in the lack of developments since the last is the case in authoritarian coun- transparency in reporting and grow- Freedom House report tries, including Russia. Freedom ing corruption in government insti- House experts note that this tran- tutions; turning the judiciary into a concern the so-called sition allows Mr. Yanukovych’s re- pro-government tool, selective pros- familization in Ukraine gime to gain comprehensive con- ecution of oppositional figures and trol over the flow of information the granting of more extensive privi- stance, Verkhovna Rada expanded transmitted by TV channels. TV leges and powers to executive au- the powers of the SBU, Ukraine’s continues to be the source of latest thorities; and attempts to suffocate a security service, in investigating news for most Ukrainians. wide range of socially critical institu- cases that qualify as “mass unrest” It should also be noted that the tions, from higher education estab- under the Criminal Code. As a re- vast majority of those who own lishments to the news media. sult, Ruslan Zabily, the Director of broadcast and print media outlets in The major new developments Tyurma na Lonskoho (the Prison Ukraine are closely tied to or are since the last Freedom House re- on Lonskoho St.) in Lviv, the Na- members of the current government port concern the so-called fa- tional Memorial Museum of Vic- and are busily consolidating and ex- milization and corruption in tims of Occupation Regimes, was panding their control over new out- Ukraine. The term was first used accused of “disclosing state se- lets. This warm relationship be- by the assessment mission in April crets”, labeled as the “Case against tween media owners and political 2012 to underscore the degree to Ukrainian Historians”; criminal power has led to media outlets pur- which those in power, particularly cases were initiated against the suing the agendas of their owners at President Yanukovych and his in- leaders of the Tax Maidan; the the expense of objectively and re- ner circle, have made a fortune cases against Yulia Tymoshenko sponsibly covering current events, and whose family members have and Yuriy Lutsenko and nearly ten as well as meeting the demands of become wealthy and influential at more people from Tymoshenko’s the public. As the result, censorship an astonishing rate. Some observ- Cabinet, half of which have spent 8 in Ukraine generally results from 10|the ukrainian week|№ 11 (34) July 2012 freedom house: nations in transit|focus ESTONIA Survey Findings The map refles the findings of Freedom House’s Summary EP LATVIA Regime Type Ele oral process RUSSIA Country Breakdown Nations in Transit 2012 survey, which assesses the 7,00 RUSSIA LITHUANIA CONSOLIDATED DEMOCRACIES 8 CS atus of democratic development in 29 countries from Civil society SEMI-CONSOLIDATED DEMOCRACIES 6 6,00 BELARUS Central Europe to Central Asia during 2011. Freedom IM TRANSITIONAL GOVERNMENTS OR HYBRID REGIMES 5 Independent media POLAND House introduced a Democracy Score—an average of 5,00 NGOV SEMI-CONSOLIDATED AUTHORITARIAN REGIMES 2 each country’s ratings on all of the indicators covered National democratic CZECH REP. by Nations in Transit—beginning with the 2004 4,00 governance UKRAINE CONSOLIDATED AUTHORITARIAN REGIMES 8 SLOVAKIA LGOV KAZAKHSTAN edition. The Democracy Score is designed to simplify TOTAL 29 Local democratic MOLDOVA 3,00 HUNGA RY analysis of the countries’ overall progress or deteriora- governance SLOVENIA ROMANIA tion from year to year. Based on the Democracy Score CROATIA KAZAKHSTAN JFI and its scale of 1 to 7, Freedom House has defined the 2,00 Judicial framework SERBIA and independence BOSNIA & HERZ. following regime types: consolidated democracy (1–2), BULGARIA 1,00 CO MONTENEGRO UZBEKISTAN GEORGIA KYRGYZSTAN semi-consolidated democracy (3), transitional Corruption KOSOVO MACEDONIA ALBANIA ARMENIA AZERBAIJAN government/hybrid regime (4), semi-consolidated 0,00 DE EP CS IM NGOV LGOV JFI CO DE Democracy score TURKMENISTAN authoritarian regime (5), and consolidated authoritar- TAJIKISTAN ian regime (6–7). Ukraine Average* www.freedomhouse.org * All Nations in Transition

economic pressure on media own- dispirited in the reporting year pact of society. The government ers, rather than from direct govern- than in the previous year. Every that has just passed a law, essen- ment interference. However, Free- country on Earth has just four real tially making Ukraine officially bi- dom House observers accuse the powers, such as state government, lingual, is unlikely to take any real government of instigating economic the opposition, NGO’s and the in- steps towards democratization and pressure and applying it to owners ternational community. Currently, will falsify the upcoming election. – who in turn apply pressure on in- only last two are trying to improve The time has come for Ukrainians dividual journalists – to curb critical the situation in Ukraine. to make a stand and protect their media coverage. The level of democracy in achievements, because a nation Whereas most areas have Ukraine has now hit the 2004 level with the status of a transitionary worsened, as noted in both last when Leonid Kuchma was presi- regime could easily slip into the and this year’s reports, civil society dent. The situation is unlikely to category of a country with a con- appeared more animated and less change without the proactive im- solidated authoritarian regime. Politics|media circus The Father of His Country? By searching for non-existent features of patriotism and statesman-like quality in Ukraine’s top officials, journalists are doing society a disservice

ccording to public opinion of international isolation, are at a polls conducted by virtually Author: stalemate stage in relations with all sociological services, Ivan Russia, and try to solve domestic Afrom two thirds to three Halaichenko problems. By saying that the main quarters of the population think groups in power are "counting on that the country is moving in the the stars-and-stripes" the author wrong direction. Experts compete means that they are ready to align to coin new names for Ukraine’s with the American interests in the current status in the international region and links recent tenders arena: “Multi-vectored isolation”, for shale gas extraction won by “mild disdain” or “elimination Shell and Chevron, as well as the from the playing field” are some of prospects of Exxon Mobile's pos- the more flattering terms sible coming to the Ukrainian Indeed, it is difficult to offer market, with a "struggle for re- different comments on the govern- sources" which, according to the ment’s unprecedented efforts to author, is taking place in the unite the electorate against it and world. The article gives an im- making all leading powers, from pression that US authorities have Washington and Brussels to Mos- so much interest in Ukraine’s re- cow, share a common attitude to- sources that they may provide wards Kyiv, albeit for different rea- Ukrainian government with "an sons. At the very least, the official exit from international isolation.” statements of top officials in coun- The author goes as far as men- tries and organizations that are in- tioning an "Obama-Yanukovych ternational players, all focus on the deal" which presumably entails same problems, which include se- American support for Yanukovych lective justice, corruption and the destruction of the investment cli- mate. some ukrainian mass media exalt forced decisions WISHFUL THINKING In the middle of all this, articles are of the government being published in the Ukrainian as geopolitical or economic mass media which reflect the exact opposite. They draw flattering por- insights traits of the government, interpret its failures as the result of a pessi- in exchange for access to Ukrai- mistic attitude towards the Yanu- nian natural deposits. kovych team and exalt forced deci- Clearly, everyone wants to live sions as geopolitical or economic in a country run by a government insights. that knows its role and commit- Pro-government or tycoon- ments, rather than a group of peo- controlled media are not the only ple with notorious backgrounds ones that come up with such arti- who don’t even understand the cles. They can also be found in scale and the importance of the well-known and respected media. tasks they undertake. It feels so Dzerkalo Tyzhnia (Mirror much better to think that the peo- Weekly) published an article enti- ple at the top know all about do- tled "The Self-Reliant Yanukovyh" mestic and foreign affairs and can that appears to reassure the read- implement complex combinations ership that the Ukrainian govern- to meet national interests, as op- ment and President Yanukovych posed to getting yet another indus- personally are seeking a way out try under their own control. 12|the ukrainian week|№ 11 (34) July 2012 media circus|Politics However, wishful thinking can be naïve and dan- gerous, especially when the government tries hard to disprove doubts in its capability to act reasonably with the language status issue, the business environment and preparations for the election, while taking steps that make Ukraine vulnerable to external interference The Father of His Country? in its domestic affairs and putting the country’s sover- eignty at risk. By searching for non-existent features of patriotism The illusion of “adequacy” could be the thing that will keep the current team, with its anti-Ukrainian and statesman-like quality in Ukraine’s top officials, agenda, afloat, especially given its projected strength- ening in parliament by the end of the year, through fal- journalists are doing society a disservice sification and dissent in the opposition. Why then should it create the image of intellectual competence, thus legitimizing what is going on in the country? On the other hand, Ukraine has seen enough rhe- torical questions and whining about its fate. They don’t help to change things, unlike a sober analysis of the re- gime’s actions based on the understanding of its nature and essence. IS IT POSSIBLE TO GO AGAINST NATURE? The Ukrainian Week has written much on how un- promising the reforms carried out by those in power are. Leading the country out of the crisis requires moves that are completely opposite to the govern- ment’s basic interests and actions. Thus, efficient government entails the elimination of corruption and the establishment of playing rules where everyone is equal and protected by an unbiased court. There is no other scenario, as proven by Singa- pore, Hong Kong, Georgia and others whose experience Ukrainian leaders are studying hard. However, these reforms would leave them without the benefit of using the court for political revenge, monopolizing the mar- kets in the hands of the “Family” or one of the richest oligarchs and viewing law enforcement authorities as a tool against competitors. In no other country has monopolization co-existed with long-term sustainable development or selective justice with growing investment (since “investments” from Cyprus and similar places are hardly long-term or efficient). Moreover, the Ukrainian government should not have rushed to grant the UAH 6bn “bonus” alleg- edly promised to big Western companies - winners of the shale gas extraction tenders in Ukraine. The signing of relevant contracts can take longer than the govern- ment and some experts expect, as they entail invest- ment that should have a long-term effect and no West- ern company, such as Shell, Chevron or Exxon Mobile, will hurry to start cooperation until they are sure that Ukraine’s government understands their terms, which will not be revised under the “misinterpretation of the parties’ rights and liabilities” excuse. Moreover, these companies’ relations with the gov- ernment of any country they work in, have nothing to do with their relations with the US administration. Claiming that companies are entering Ukraine under a mysterious “Obama – Yanukovych deal” means trans- ferring post-soviet government-business-mafia deci- sion-making schemes to international politics and eco- nomic relations. Such experiments have often put top Ukrainian officials and experts in a difficult position in the past. “Multi-vectored isolation” seems to have become a consequence of the fact that at 10 Bankova St., the Pres- * THE MEDIA MIRROR idential Administration, as well as the experts advising № 11 (34) July 2012|the ukrainian week|13 Politics|media circus it, have formed the impression that to run into trouble, the US will use tions and moves in international “they will eventually get over it and all possible leverage to help them politics. Talks on issues such as the accept it, just like people have out, but entering new markets and supply of energy resources have here”. This approach was reflected operating there is entirely up to the been going on for years based on a in the Ministry of Foreign Affairs’ companies, not the US government. serious foundation of mutual sys- statements that “relations between Their budgets exceed Ukraine’s temic interest and long-term expec- states matter more than the life of GDP, so they don’t really need any tations from cooperation. The sign- an individual”. It is difficult to deals between the relevant politi- ing of any protocol on gas supply dream up something that is further cians. does not automatically mean that it from the Western political mindset. Secondly, Ukrainian experts of- will be supplied. The expectation that others will ten project their post-soviet idea of Foreign businesses and govern- work with Yanukovych because of stability onto the whole world. They ments calculate the risks, evaluat- Ukraine’s geopolitical significance, assume that Western democracies ing the real moves of top Ukrainian abundant resources and fertile will inevitably accept any regime in officials. Why invest in “alternative soils, stems from the romantic early the country they are interested in. energy supply means” in Ukraine, if 1990s. George Soros once called This approach misses a slew of im- the latter takes no direct actions to this “geopolitical bargaining” and portant factors, however. Over the decrease its dependence on Russia called on Ukrainian leaders to stop past decade, the concepts of realpo- by introducing economically rea- such attempts before it was too late. litik and permanent interests have sonable prices for its own energy Yet, the myth proved to be resilient undergone dramatic changes. They (with relevant reimbursement to and facts are now being adapted to now take into account soft factors, households that require it), or a it. Even if they are simply adjusted such as a regime’s legitimacy, social comprehensive national program in accordance with the required re- moods and the security of humanity. to save energy and support energy- sponse, they will do Ukraine no A regime based on repression, saving technology? Will Ukraine re- good. The modern world is indeed raider attacks and biased justice, is ally be able to guarantee demand ruthless, especially for those who unstable by default, because it pro- for “additional” energy sources? face it without understanding its re- vokes resistance. If the latter can- The past two years have proved ality. not be implemented through legiti- that the government’s sporadic at- mate procedures (competitive elec- tempts to “gain energy indepen- REALPOLITIK AND tion), violence will ensue sooner or dence from Russia” are nothing “PERMANENT INTERESTS” later. States that build strategies more than an imitation, the effi- Firstly, neither the Ukrainian gov- decades in advance, will not accept ciency of which is only apparent to ernment, nor experts, should over- the government and experts who estimate the role of Ukraine in the Yanukovych cannot afford are prone to wishful thinking. After geopolitical balance of the key cen- all, as premier and president, Yanu- tres of power. Foreign policy has to be anything other than kovych made it clear: he is leading never dominated US election cam- pro-Russian the country towards Russia. paigns. Candidates relying on geo- Governed by his soviet mental- politics lost the elections. The ma- a country where a group of people ity, building a Russian model of jor battlegrounds were domestic temporarily has all the leverage in government-society relations in affairs and the economy. More- its hands. Too often has this sort of Ukraine, burning all bridges for a over, candidates tend to focus on stability turned into a sudden and dialogue with the majority of Ukrai- “values and standards”, seeking for unexpected shift of government in nians and suppressing any expres- the tiniest crack in their opponents’ virtually all parts of the world. sion of discontent and opposition, campaigns. This is what the inflexibility of Yanukovych cannot afford to be According to Western experts, the US and the EU, as regards elec- anything other than pro-Russian. the last thing candidates want dur- tion standards, is associated with. In his relations with Vladimir Pu- ing an election campaign is for vot- Numerous officials have warned tin, all he does is demonstrate bit- ers to associate them with transna- Ukrainian leaders in public and pri- terness about not being treated like tional energy companies or the sup- vate conversations that an attempt a homeboy, and all Yanukovych port of foreign dictatorships. Given to steal the election, thus laying a seeks, given his moves, is a gas the tough struggle in America’s mine under the regime’s stability, price discount for the tycoons that presidential campaign, it is difficult will ruin the government’s relations are close to him. Without compre- to imagine that Obama would risk with the democratic world. It will hensive changes in Ukraine’s econ- supporting Yanukovych, thus pro- subsequently be futile to expect any omy, the discount will make moting the interests of energy mo- support from abroad. And none of Ukraine more, rather than less de- guls. the boycotters are going to open pendent on Russia as the only gas After all, he doesn’t need to. It any doors for Yanukovych. The supplier, ultimately leading it to a is Yanukovych & Co who need the government will not receive any repeat of the Belarusian scenario. cash badly, which is why they gladly IMF loans or systemic investment. Therefore, Ukrainians, particu- welcome Shell, Chevron and (po- It will have to live through all the larly so-called opinion leaders, do tentially) Exxon Mobile. This pro- economic and political conse- not have the right to construct the cess requires no support from quences of its governance alone. image of “a real president of his Washington. Moreover, thinking Thirdly, many Ukrainian ob- country” out of the material cur- that US policy is all about serving servers tend to overestimate the rently in power in Ukraine. It could the interests of huge corporations is role and the importance of the bring tragedy to its disoriented soci- too simplistic. If the latter happen Ukrainian government’s declara- ety. 14|the ukrainian week|№ 11 (34) July 2012 opinion|Politics What Are They Thinking? s the confrontation between the Yanukovych Moreover, very severe restrictions may be placed on Administration and the West intensifies, top for- foreign travel, especially to countries where our elites eign statesmen have addressed requests to and are used to spending at least as much time as in Amade demands of the President and Prime Min- Ukraine. They have grand homes, yachts and planes ister Mykola Azarov, but the Ukrainian leaders have there, their children study there and they travel there simply ignored them. for medical treatment. Essentially, that is where they Worse still, they make promises to Western powers and live. But if they suddenly disappear abroad, they will then, quite in the style of local con artists, forget all not be able to keep track of their assets in Ukraine about them. The civilised world is politely asking that and that may lead to lamentable consequences, given imprisoned opposition leaders be released, political re- the corporate raids and appetites of the Family in pression stopped and the basics of democracy and po- Ukraine. litical competition maintained. The reply is either si- The smell of catastrophe is in the air. Some of the rich lence or hysterics: “Don’t teach us how to live! It would may try to convince themselves that they will be left un- be better if you helped us financially!” scathed, but such incidents always strike like a bolt Now the situation has reached an impasse. Speaking on from the blue. So instead of running one by one from Yevgeniy Kiselov’s show on the Inter channel, Russian this Titanic, the so-called elites should come together to observer Aleksandr Baunov aptly called the official Kyiv tell the president that his current course is not good for policy “disastrous”, and noted that in his opinion, them. Or is it better to sit and wait for the inevitable col- Ukraine was cutting itself off from Europe. lision with the iceberg? There is little time left to change This amy well prompt one to wonder how Ukraine’s fi- course... nancial-economic elites, the richest Ukrainians, feel – If a Lukashenko-style dictatorship is established in they can be seriously hurt if things come to an open Ukraine, it is bound to cause a redistribution of prop- confrontation with Europe. It will lead to sanctions and erty in favour of the Family, which is today the main pil- barriers on Ukrainian products' way to Western mar- lar of power and demands to be encouraged and fed. So kets. And this is just the first possible sign of the overall what will the oligarchs outside Yanukovych’s inner cir- deterioration in our rela- cle do? It will be too late to tions. What do the 200 rich- instead of running one by appeal to the world commu- est citizens of Ukraine think nity. Thus, the choice is actu- Author: about the current situation? I one from this Titanic, the ally fairly simple: either fall Ihor mean those who are worth so-called elites should into an abyss together with Losev $10 million to $10 billion or this regime or try to normal- more? Do they want to be come together to tell the ise the situation in Ukraine. known as pariahs west of Some marginal figures in the Ukraine? president that his current Party of Regions – fixtures in Journalist Vitaliy Portnykov course is not good for various talk shows – regu- believes that unlike the presi- larly identify their party with dent, the Ukrainian elite are them the country and increasingly beginning to understand that call on Ukrainians to be pa- things are headed for a disaster, and the day is not triotic and join with their political force to confront far off that the country will be isolated and suffer all the “damned West” and thus win the right to build of the ensuing consequences. Either Yanukovych will a sovereign prison. grasp as much or the Ukrainian establishment will have To them, sovereignty means the legal right to freely and to do some thinking… Incidentally, Rinat Akhmetov is brutally settle accounts with political opponents and rumoured to be trying to distance himself from the rul- competitors as the world silently stands by. However, ing party, particularly from any kind of involvement in these mouthpieces that speak on behalf of the ruling the 2012 parliamentary election. party are not, of course, oligarchs. They do not face the It is becoming evident that the West has exhausted all far-reaching consequences that are confronting the rhetoric in its efforts to influence Yanukovych and his country's 200 richest persons. That is why these small family. This means that other measures – more brutal fry can afford to act the way they do. and easier for the “simple Donetsk fellows” to under- Meanwhile, the clock is ticking for important people stand – are now on the agenda. First, financial and legal to make up their minds and speak up. They should leverage is likely to be employed. Action may be taken keep in mind that there is only one oligarch in neigh- against the bank accounts of Ukrainian oligarchs, pri- bouring Belarus, and everyone knows his name. Is it marily those who are believed to be closely linked to the possible that one person in Kyiv will decide that one president. Uncomfortable questions may be raised owner is enough for Ukraine, too? Every despotic about the legality of specific purchases or the origin of ruler craves the absolute power that rules out any op- money paid for immovable and other property across position or even a competitive environment with the world. Those who have the reputation of being the powerful players who have their own economic basis Party of Regions’ donors will be exposed the most. out of his reach. In all circumstances like this, the Some seem to have sensed which way the wind is blow- situation in the country can only deteriorate in the ing. The wife of one of Donetsk's richest natives is re- near future. Nothing will straighten itself out on its portedly seeking British citizenship. own. № 11 (34) July 2012|the ukrainian week|15 neighbours|russiа Cold Peace Vladimir Putin’s pole of power challenges Europe

Author: resident Vladimir Putin is eminent position on these territo- restore Moscow’s regional domi- Janusz seeking to establish Russia ries. However, acquiescence to nance, undermine U.S. global in- Bugajski as a “pole of power” in a Moscow’s strategy will not only fluence, divide the NATO alliance, Senior Pmultipolar world. This stra- destabilize and divide many of neutralize the EU, and prevent Associate in tegic objective will necessitate Russia’s neighbours, it will also further NATO and EU enlarge- the Europe tighter supervision over various pose a challenge to the security of ment. Moscow’s overarching goal Program at Euro-Eurasian sub-regions, in- the new EU and NATO members, toward the West is to reverse the the Center for cluding Eastern Europe, the Baltic while simultaneously undermin- global predominance of the U.S. Strategic and and Black Sea zones, the Cauca- ing European unity and trans-At- by transforming “unipolarity” into International sus, and Central Asia. Above all, lantic cooperation. “multipolarity” in which Russia Studies in Moscow seeks to dominate the exerts increasing international le- Washington former Soviet Union countries Moscow’s Strategic verage. No longer a credible D.C. and expects the U.S., the Euro- Ambitions global superpower, Russia aims to pean Union, and all major West Russia’s administration is en- be the pre-eminent Eurasian European states to accept its pre- gaged in an ambitious project to “pole of power.” 16|the ukrainian week|№ 11 (34) July 2012 russiа|neighbours ert predominant influence over the hood within Western structures. foreign and security policies of im- This has left the post-Soviet states mediate neighbours so they will more exposed and vulnerable to support the Kremlin agenda. Moscow’s pressure and integra- While its goals are neo-impe- tionist maneuvers. Moreover, Be- rial, Moscow’s strategies are elas- larus, Moldova, and Ukraine are tic. It employs flexible methods, not priority interests for the cur- Cold including enticements, threats, rent American government. incentives, and pressure where Second, the financial crunch Russia’s national interests are and political stresses within the seen as predominating over those EU have diminished Brussels’ out- of its neighbours. Indeed, it is reach toward the post-soviet coun- useful to distinguish between tries. This has decreased the mo- Russia’s actual national interests mentum of the EU’s Eastern Part- Peace and its state ambitions. These le- nership, an initiative launched in gitimate interests revolve around May 2009 and which was designed Vladimir Putin’s pole maintaining territorial integrity to harmonize the European post- and forestalling foreign military Soviet states with EU standards. of power challenges Europe intervention. In this context, Russia’s authorities have con- Moscow’s security is not chal- cluded that the Union is in serious lenged by the NATO accession of disarray and decline and will be neighbouring states. However, its preoccupied with its internal prob- ability to control the security pol- lems for several years, if indeed it icy and international orientation does not actually fracture. of these countries is undermined Thirdly, there is visible disil- by their NATO membership. lusionment with the EU within Among the top priorities Pu- many of the post-soviet capitals. tin set out for his third presiden- They do not possess the roadmap, tial term is the reintegration of direction, or commitment to full the former soviet republics, based integration with the West, unlike on tighter economic links and cul- the vision and promise that was minating in a political and secu- given to the Central Europeans af- rity pact centered around Russia. ter they liberated themselves from Putin’s concept of a Eurasian Moscow in the early 1990s, or to Union will be central to his efforts the Western Balkan countries to forge a legacy as a gatherer of through the EU’s Stabilization post-Soviet lands. Moscow is evi- and Association Agreements dently fearful that the territory of (SAA). Conversely, in the case of the defunct USSR will perma- Belarus and Ukraine, there is tan- nently divide and drift into Euro- gible frustration in several EU pean and Asian "spheres of influ- capitals over their political regres- ence." Hence, Putin seeks to cre- sion and stilted economic re- ate a Eurasian bloc that will forms. balance the EU in the West and Fourthly, the return of Putin China in the East, and contain a to the Kremlin is re-energizing strong security dimension as a Russia’s neo-imperialist ambi- counterpart to NATO. These eco- tions, through such grand geo- nomic and security linkages will strategic objectives as the forma-

phото: AP phото: create political ties, making it less tion of a Eurasia Union. And as an likely that Russia's neighbours added bonus, an assertive foreign can join alternative alliances. policy helps to distract attention from domestic opposition and the Kremlin officials believe that Vladimir II. The Eurasian Project convulsions inside the Russian Mr. Putin's the world should be organized new term as To achieve its Eurasian ambi- Federation. Putin’s renewed pres- around a renewed global version of president will tions, Moscow needs to assemble idency has been presented as vital the 19th century “Concert of Eu- bring forth a around itself a cluster of states to Russia’s national security in rope” in which great powers bal- new phase of that are loyal or subservient to its two ways. It will allegedly protect ance their interests and smaller struggle for FSU interests; it has been encouraged Russia from internal turmoil gen- countries orbit around them as reintegration in this endeavor by several devel- erated by disruptive public pro- satellites or dependencies. Russian around Russia opments in recent years. First, as tests, and it can rebuild Eurasia officials depict this strategy as a by-product of the Barack Obama under Russia's management and “multipolarity.” Russia’s neo-im- administration’s “reset” policy to- remove unwanted Western influ- perial project no longer relies on ward Moscow launched in early ence that purportedly challenges soviet-era instruments such as ide- 2009, Washington has curtailed, the security of the Russian Feder- ological allegiance, military force, if not completely discarded, its ation. or implanting proxy governments. campaign to enlarge NATO and Russia’s ambitions toward its Instead, the primary goal is to ex- secure the post-Soviet neighbour- neighbours, including Ukraine, № 11 (34) July 2012|the ukrainian week|17 neighbours|russiа phото: reuters phото: are twofold: foreign policy subser- PLAYING ON the three states. In October 2011, these plans called for the ultimate VULNERABILITY: vience to Russia and integration Moscow is Putin hosted a meeting of prime establishment of a Euro-like single in Moscow-directed security and using energy ministers from Armenia, Belarus, currency system. The transition to economic organizations. The ma- leverages Kazakhstan, Kyrgyzstan, Mol- the Eurasian Union has been de- jor multi-national initiatives pro- to win over dova, Tajikistan, and Ukraine in scribed as the final goal of eco- moted by Moscow to enhance in- European major St. Petersburg and announced an nomic integration. It envisaged a tegration and centralization in- powers agreement to form a free-trade free trade regime; unified customs clude the Commonwealth of zone after years of fruitless nego- and non-tariff regulation mea- Independent States (CIS), the tiations. On January 1, 2012 a sures; common access to internal Collective Security Treaty Organi- formal agreement was signed to markets; a unified transportation zation (CSTO), the Eurasian Eco- create the CES, an undivided system; a common energy market; nomic Community (EEC), the common market embracing the and a common currency. The Mos- Customs Union (CU), the Com- cow summit of the EEC on 19 mon Economic Space (CES), and March 2012 charted a detailed in- the planned Eurasian Union the primary goal is to exert tegration strategy, with a view to (EAU). influence over the foreign having the EEC reshaped into a The CSTO, a military alliance fully-fledged economic union by that includes Armenia, Belarus, and security policies of 2015. These integrative economic Kazakhstan, Kyrgyzstan, Russia, immediate neighbours measures would also be under- Tajikistan, and Uzbekistan, is de- girded by a tighter political alli- signed to counter NATO aspira- so they will support ance. tions in Eurasia. Its main charters the Kremlin agenda Within the first two weeks of are currently being revised. The his renewed presidency, Putin current charter requires unanim- hosted an informal CIS summit ity to pass a decision, but under three Customs Union economies with most of the former soviet the planned revisions only states together with Ukraine and open states as well as an extraordinary with an interest in a given deci- to other post-soviet countries. On CSTO session. In both events, the sion would be allowed a vote, thus RUSSIAN the eve of accession to the CES, Eurasian Union lurked in the curtailing any potential opposi- ENERGY the Presidents of Belarus, Russia, background. Putin’s notion of a tion to Kremlin policy in case a COLOSSUS ON and Kazakhstan also signed the Eurasian Union, according to his CLAY LEGS military mission in its neighbour- The Foreign Policy, a Declaration of Eurasian eco- own words, is of a “powerful su- hood is deemed necessary by US publication, pro- nomic integration. President pranational association capable of jected the decline of Moscow. oil prices to USD 40 Dmitry Medvedev invited all becoming one of the poles in the The EEC was created in Octo- per barrel which will other EEC members to join the modern world and of serving as ber 2000 at a summit in Astana, hit hard the budget of CES, including the three EEC ob- an efficient bridge between Eu- fuel export relying Kazakhstan, and is viewed in countries, such as Rus- server states of Armenia, Mol- rope and the dynamic Asia-Pacific Moscow as a stepping-stone to- sia, Venezuela, Iran dova, and Ukraine. region." Putin believes that this and Middle East mon- ward the Eurasia Union. It in- archies. According to Business entities of the three organization should be built on cludes Russia, Belarus, Kazakh- Andrew Kuchins, a se- CES countries are guaranteed free- the inheritance of the Soviet stan, Kyrgyzstan, Tajikistan, and nior fellow at the Cen- dom of movement of goods, ser- Union: "infrastructure, a devel- ter for Strategic and Uzbekistan. In July 2011, Russia, International Studies vices, capital, and labour. Thus far oped system of regional produc- Belarus, and Kazakhstan (CSIS), USD 40 or even Kyiv has resisted these entice- tion specialization, and a common 60 per barrel will be a launched a Customs Union to re- disaster for Russian fi- ments fearful that they would sub- space of language, science, and move all trade barriers between nance. vert Ukrainian sovereignty. All culture." 18|the ukrainian week|№ 11 (34) July 2012 russiа|neighbours European Disunion sive zone of influence and has steadily weakening soft power It is debatable how successful criticized the EU’s Eastern Part- tools. Moscow’s re-integration plans nership program as a mechanism The Russian authorities are will prove in practice. Neverthe- for undermining Russia’s alli- well aware of the EU’s vulnerabili- less, the pursuit of these goals is ances. Because of its emphasis on ties and will use various opportu- itself damaging to the security human rights and pluralistic de- nities to weaken trans-Atlantic and sovereignty of states neigh- mocracy the EU also threatens the relations while pursuing security bouring the Russian Federation. Kremlin’s sovereign democracy Due to pressure from Russian of- model and even the long-term ficials, these countries are pre- survival of the undemocratically acquiescence to Moscow’s vented from fully realizing their structured Russian Federation. strategy will not only independence by freely choosing Additionally, the EU’s business their international alliances. One standards centered on transpar- destabilize and divide many can also expect that a more ag- ency, competition, and account- of Russia’s neighbours, gressive integrationist approach ability undermine Russia’s busi- toward the post-soviet states will ness model resting on the three it will also pose a challenge be mirrored by a more assertive pillars of opaqueness, monopoly, to the security of the new policy toward the Central-East and secrecy. European (CEE) countries based By gaining monopoly posi- EU and NATO members primarily on economic entrap- tions in the transit and supply of ment, energy dependence, and natural gas and crude oil to Eu- linkages with individual EU capi- political neutralization. Any suc- rope, Moscow aims to enhance its tals. They are encouraged by Pres- cesses registered in reintegrating political leverage within the EU. ident Obama’s decreased focus on the European post-soviet coun- The dispute between proponents Europe as a strategic priority and tries within a Eurasian economic, of the EU-supported Nabucco by the EU’s internal political frac- political, and security system will pipeline, part of the projected tures. Western weaknesses, divi- encourage Moscow to pursue a Southern Corridor project, and sions, and indecisions have been more intrusive policy toward its backers of the Russia-sponsored encouraged and promoted by former CEE satellites and new EU South Stream proposal has been Moscow as they directly assist the members. the most glaring indication of the Putinists in developing their Eur- Russia's leaders do not view struggle for energy security in asian project to create a Russia- the EU as a major strategic power Europe. Despite the growing crit- centered “pole of power.” but as a valuable twofold instru- icisms over the viability of the Vladimir Putin's agenda ment: an economic engine from South Stream, Moscow continues Quotes from Mr. Putin's 2012 election platform where Russia can tap investment, to employ various tactics to scut- "Our national and migration problems directly result from technology, and trade; and a U.S. tle Nabucco or diminish its im- the collapse of the USSR, essentially the historical Great Rus- partner that Moscow can help de- portance, whether by locking gas sia established back in the 18th century. From the decline of couple and maximize its own in- producing countries into long- state, social and economic institutions that followed inevita- fluence to decrease the American term supply contracts, under- bly. From the huge gap in development in the post-soviet presence in Europe. Russia’s pol- mining stability in the South territory. icy toward the EU is built around Caucasus to discourage foreign The Russian people is identifiable as a multi-ethnic civiliza- tion tied together by the Russian cultural core. The Russian three approaches. First, it seeks investors, or offering lucrative people confirmed this choice over and over again with direct relations with Union insti- deals to potential transit coun- blood, not at referendums. Throughout its entire thousand- tutions as an equal partner, not tries. year long history." as a candidate or member state in The EU will be severely tested Russia: The National Issue (Nezavisimaya Gazeta, The Inde- which its influence would be di- over the coming decade as it has pendent Newspaper, 1 March 2012) luted. Second, Moscow concen- failed to ensure its position as a trates on forging bilateral politi- global power and its economic "We realize that we have historical experience nobody else cal, business, and energy ties performance has experienced has. We have powerful foundation in the mindset, culture with the larger EU states, such as heavy strains given the indebted- and identity that nobody else has. Germany, France, and Italy, ness of several EU governments We will strengthen our "historical state" we inherited from our predecessors - the civilization-state capable of integrat- whose governments have proved and persistent doubts about the ing various ethnic and religious groups seamlessly. more accommodating towards future of the monetary union. We had lived together for ages. We won the most terrible Russia. This approach also un- Many analysts conclude that it war together. And we will continue to live together. Those dermines the emergence of a co- was due to America’s global hege- who want or try to divide us will hear only one answer from herent, consistent, and common mony that the EU emerged on the me: This will never happen." EU policy. world stage as a significant power. "That's how we see some aspects in the behaviour of the US And thirdly, the EU is viewed The U.S. security umbrella en- and NATO that do not fit into the reason behind modern de- as a potential competitor in Rus- abled the Union to focus on eco- velopment and are based on the block-mindset stereotypes. sia’s “near abroad” as it can lure nomic development and political Everybody knows what I mean. This is NATO enlargement various post-Soviet capitals away integration without developing that includes the dislocation of new military infrastructure objects, the Alliance's US-initiated plans to create the missile from Moscow’s orbit. For in- military power. However, as defense system in Europe. I wouldn't tackle this issue if only stance, in the Black Sea region America’s dominance diminishes, these games were not being played right next to the Russian Moscow is not interested in col- the EU will become more exposed frontiers undermining our security and working against sta- laborative neighbourhood proj- to global security competition but bility in the world." ects under an EU umbrella as it without its own coordinated “hard Russia and the Changing World (Rossiyskaya Gazeta seeks to maintain a more exclu- power” capabilities and with (The Russian Newspaper), No. 5718(45), 27 February 2012) № 11 (34) July 2012|the ukrainian week|19 economics|consumer confidence How Much is Confidence Worth? The growing troubles in Ukraine's economy result from the low level of popular trust for the government

Author: s the election season tries, this confidence is enough nues come from to trigger growth Liubymyr draws closer, the govern- to justify huge taxes. Thirdly, at this difficult time? The logical Shavaliuk ment is generously giving such a person saves money on a answer would be that the crisis Agifts of promises and bud- regular basis, not fearing to lose has reduced the revenues of get funds to the electorate, the it to inflation, and trusts his/her Ukrainian companies, therefore opposition pours criticism on the money to financial intermediar- the growing share of wages and government, and sociologists ies investing in securities at best, pensions in GDP should have present voters with the results of or bank deposits in a worst case been suffucient for the popula- surveys, some of which reflect the scenario. Finally, a person who tion to consume more until now. true rating of the government and trusts the government will buy In fact, though, the wage share, the opposition. However, what real estate without worrying that which includes all salaries and the ratings fail to show is the level an upcoming economic down- most pensions, has declined from of public distrust in politicians turn will knock down its price. 49.6% to 47.7% of GDP. This is in which has built as a result of the People in developed countries line with the dynamics of wage failures and idle periods of all the still trusted their governments in share in consumption expendi- governments in the independent crisis periods, since at least tures (see Chart 1) meaning that a Ukraine. This distrust has grown three of the above elements of big part of consumption in to such an extent, that it impacts behaviour were preserved. In Ukraine has little to do with the way people behave and ex- Ukraine, the confidence situa- wages and pensions, which re- presses itself in the material eco- tion is much worse. quires other explanations, several nomic dispro­­portions described of which are outlined below. below. Consumption Firstly, Ukrainians began to How does a person who Based on State Statistics Com- save less in order to support the trusts the government and its mittee data for 2011, the con- decent level of their own con- policy behave? First of all, such a sumption rate in Ukrainian sumption as well as that of family person is a confident consumer, households was at its highest of members who lost their source of buying whatever he or she can all the years of independence. income as a result of the crisis. afford without worrying too Household consumer expendi- This looks credible as the share of much about tomorrow. Secondly, ture in real terms exceeded pre- personal savings in cash and de- he/she tries to avoid working in crisis peak rates by 4.8%. Mean- posits has plummeted (see Chart any shadow business due to the while, real GDP is still 7.2% short 2). Nearly 20 million Ukrainian belief that all taxes and deduc- of what the country needs to fully employees with average monthly tions from his/her earnings will recover after the crisis. The first salaries of UAH 2,633 (about USD be used to meet the needs of so- question these numbers bring to 330) in the past year and nearly 14 ciety as a whole. In some coun- mind is where should the reve- million more pensioners with av-

CHART 1. Household consumption expenditures Price index in 2007, 100 = Q1’03 Percentage of consumption expenditure 250 Consumption expenditures: household final consumption expenditure 110 index (in conant prices of 2007; 100 equals Q1'03 index) left scale 200 100

150 90

100 Real GDP (in conant prices of 2007; 80 100 equals Q1'03 index) left scale 50 Wage share in GDP 70 right scale

0 60 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: State Statiics Committee, NBU, own eimates 20|the ukrainian week|№ 11 (34) July 2012 consumer confidence|economics way. And this negatively impacts thing that in no way boosts their the trust of most of the popula- confidence in the government. tion in the government. Fourthly, increased lending Thirdly, the considerable can theorically boost consump- How Much is Confidence Worth? growth of visible consumption tion, but this does not pertain to stems from the equally consider- Ukrainian statistics in the past erage pensions of UAH 1,152 (USD able growth of invisible income two to three years. Chart 2 shows The growing troubles in Ukraine's economy result from the low level 144) who often have to support from the shadow economy. In ad- that loans issued to households in their children and grandchildren, dition to salaries in envelopes 2007 amounted to almost 20% of of popular trust for the government can hardly save anything from the government has been ab- consumption, being a weighty fac- their income, and even if they do, sessed with lately, this income tor boosting consumption growth. the saved money has little effect includes unreported revenue After the crisis though, house- on consumption. from grey imports, trade and holds have been repaying old Secondly, people who receive production, as well as all kinds loans more than they have been non-labour income, such as rent, of bribes that are not accounted taking new ones. This backs the interest on deposits and divi- for in official statistics. Such rev- above three scenarios since people dends, have begun to consume enues add up to a significant who live off of their salaries alone more. This passive income is amount, that matches the gap consume less as they repay their considerably higher than average between real accounted con- loans. Meanwhile, the total con- monthly salaries or pensions, so sumption and GDP in Chart 1. In sumption rate is growing due to the amount of consumption and 2008, a large amount of loans, non-labour and shadow income. the choice of goods and services mostly issued to fund imports differ significantly from that of and having no impact on GDP, Other income factors the average Ukrainian. Statistics was used to justify that gap. Af- Household lending shapes oppo- confirm this scenario as the ratio ter the crisis, however, house- site trends on the opposite sides of such income (gross and mixed holds are only repaying loans of the crisis. Obviously, lending income) to GDP has changed by (see Chart 2), not obtaining new flourished before the crisis and merely 0.1% over the past three ones, while the gap continues to credit leverage in the private sec- years, staying at a level of about grow. It is entirely possible that tor shrank after the crisis in most 38% all that time. Since the aver- of the 14.8% that was the official economies. Therefore, there is age rate of non-labour income al- decline of GDP in 2009, at least nothing the government can do lowed its recipients to save be- one third did not disappear, but about them in Ukraine. Some- fore the crisis as well, they had was quietly transferred into the thing similar is happening to res- every reason to increase per- shadow sector, where it currently idential real estate investment. It sonal consumption, and they continues to operate and in- is now at the very end of the con- continue to do so, regardless of crease successfully, generously sumer priorities chain, as most the economic situation. There- affording the owners visible con- people buy apartments when they fore, the belt tightened by vari- sumption, and increasing the can afford to satisfy their current ous politicians many times over gap. Hardworking average peo- needs and put some money aside. the past few years, is not on the ple, living on their salaries or When the crisis hit Ukraine four waist of those who could signifi- pensions alone, seeing the sump- years ago, it created a sort of vac- cantly improve the balance in tuous life of their inventive uum on the residential real estate Ukraine’s economy with their neighbours, first and foremost, market. Those who used to have a savings. Instead, it is being tight- blame this imbalance on the gov- higher income bought apart- ened around the neck of those ernment and the level of order it ments with a mortgage before the who have nothing to spend any- maintains in the country, some- crisis, while those whose income

CHART 2. Secondary fa ors of income used by households % of consumption 50 Cash and desposits: the ratio of household savings growth in net bank deposits in all currencies Residential real eate invement: the share of household spending on real 40 and cash in hryvnia and foreign currencies to consumption eate in consumption (yearly data broken down evenly into quarters) 30

20

10

0

Loans issued to households, less repaid or written off loans, -10 to household consumption ratio

-20 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: State Statiics Committee, NBU, own eimates № 11 (34) July 2012|the ukrainian week|21 economics|consumer confidence was somewhat lower, even lost falls to those who could have tion of people’s uncertainty in part of it, not to mention the fact saved something, but opted not the future. that thet lost the opportunity to to restrict their consumption. The above arguments prove obtain a loan and buy an apart- Secondly, households opt for how macroeconomic dispropor- ment. As a result, residential con- saving in cash rather in other as- tions continue to grow in Ukraine struction dropped to 2.0% of GDP sets that are most liquid. At their in the post-crisis period, some be- in 2011 from 3.4% in 2007. This peak in 2007, deposits amounted ing the direct consequence of also leaves little room for the gov- to 8.0% of GDP compared to plummeting trust in the govern- ernment to act. Even if it subsi- only 3.0% in 2011. This signals ment and its policy. It becomes dizes part of the mortgage inter- public distrust in banks and the ever-more clear that most Ukrai- est rate while earnings remain government’s ability to support nians living on their salaries and inadequate, the initiative will not them in times of temporary diffi- pensions alone are forced to make lure enough buyers. Even if the culties. Thirdly, Ukrainians significant cuts in consumption, government buys and distributes tended to opt for foreign curren- while the recipients of non-labour apartments worth 1-2% of GDP, cies for their savings, not the income are not going to save, this will be a significant burden hryvnia. In 2007, the ratio of de- even if the economic system on the budget and will not really posits in foreign currencies to needs them to. One of the few key change macroeconomic trends. ways to ensure their prosperity is Yet, there is still much that to switch to the shadow sector. the government can do about savings in cash signal Meanwhile, with the current level some of the other components of public distrust in banks of trust in Ukraine’s financial sys- household expenditures. One is tem and hryvnia, most Ukraini- savings and Ukrainians do not and the government’s ans prefer to exchange their hryv- have much choice of assets in ability to support them in nias into dollars or euros, which which to save their money. It is they save for better times. With composed of some basic options, times of difficulties such trends, no matter which po- such as keeping cash in foreign litical party is in power, popular currencies, the hryvnia and de- those in the hryvnia was 9.4% to trust for the government will only posits, and some the less com- 4.6% of GDP. In 2011, this be revived when the government mon ones, including real estate, changed to 7.2% to 0.7% of GDP starts taking action on a regular land, securities and bank metals. respectively. Despite the decline basis to balance these dispropor- The dynamics of the key saving in earnings and savings, house- tions. If a government manages options available to Ukrainians hold savings in foreign curren- to direct popular savings into the shows some interesting trends cies were just 0.1 of a percentage financial system (7-10% of GDP), (see Chart 3). Firstly, savings in point less than in 2008. On the encourage those better-off to cash and deposits fell from one hand, this signals a lack of tighten their belts a little (5-7% of 22.0% of GDP in 2007 to 10.9% trust in the hryvnia and the abil- GDP) and draw shadow income in 2011 as a result of the crisis, ity of central government au- into the official sector of the econ- even though these are the most thorities to keep it stable. On the omy (5-10% of GDP in extra tax liquid categories of assets. Sav- other hand, no matter what cur- revenues), such government will ings in other assets should have rency Ukrainians choose to save end up with a huge reserve that declined at a more rapid rate. As in, they still “hide it under the will make it possible to revive noted above, the income of most mattress”, away from economic Ukraine’s economy in just a few Ukrainians does not allow for turnover and reducing potential years and restore the level of trust many savings, therefore the larg- total demand, because the mere that is so lacking in Ukraine to- est decline in deposits probably fact of savings in cash is a reflec- day.

CHART 3. Components of household savings % of GDP 30 Net amount of foreign currency Deposits: net growth of deposits (deposited less 25 (bought less sold) bought from banks withdrawn) opened by households in banks; by the population, % of GDP % of GDP 20 15 10 5 0 -5 Cash in hryvnia: net inflow (revenues less expenses) of hryvnia in cash -10 to households, % of GDP -15 -20 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: State Stati ics Committee, NBU, own e imates 22|the ukrainian week|№ 11 (34) July 2012 the return of ponzi schemes|investigation Financial Pyramid Reincarnated Many young Ukrainians are joining the MMM financial fraud run by an infamous Russian. The Ukrainian Week finds out why…

ergey Mavrodi was the mas- Author: Mavrodi was on Interpol’s port to a regional director person- termind behind the massive Bohdan wanted list in the early 2000s ally appointed by Mavrodi. MMM pyramid scheme in Butkevych when he founded another online This time around, Mavrodi Sthe 1990s. When he an- pyramid – Stock Generation (SG), built a pyramid in such a way as to nounced, in early January 2011, a virtual stock exchange for trad- protect himself as best as possible the launch of a new financial pyra- ing virtual stock in virtual compa- against any criminal charges. In the mid called “We Can Do a Lot (My nies. Several million people in the 1990s, all the money contributed to Mozhem Mnogoe, or MMM in West (the USA, the UK and a num- his pyramid flowed to one account. Russian), it sounded like a joke. ber of European countries) were Once it was blocked, the entire sys- But the reincarnated MMM at- defrauded. Finally, he was arrested tem collapsed. Now money is scat- tracted 30 million participants in in Moscow in 2003. He was on tered across many thousands of the post-soviet territory and con- trial for four years, sentenced to private accounts in dozens of banks tinues to grow, according to its of- Mavrodi’s first 4.5 years in prison and released a across the world. Moreover, all pyramid collapsed ficial site. There are already signs in 1994, bankrupting month after the verdict was deliv- transactions in the system take the that it will soon yield to the laws of at least ered. For a while Mavrodi wrote form of money transfers between economics and begin to collapse. A books in which he claimed to have private accounts. 10,000 correspondent from The Ukrai- people fallen victim to “the system” and However, there is one impor- nian Week pretended to be said he was pulling himself to- tant nuance which law-enforce- fooled into the scheme and became gether. In January 2011, he ment agencies are beginning to an MMM investor in order to study launched a reincarnation of MMM. pursue and which Mavrodi cannot it from the inside. The essence of his latest organ- ignore: he lacks a licence to carry isation is very simple and even out financial transactions. In par- The way of Mavrodi According to MMM somewhat refined. All money in- ticular, Ukraine’s National Com- “Any pyramid always rests on representatives, vested is kept on the accounts of mission for Regulating Financial fraud,” says financial analyst An- 3-4mn investors themselves. They are di- Services Markets notes: “As of to- driy Bychynsky. “A pyramid is Ukrainians joined the vided into rank-and-file members, day, no information about MMM- pyramid in 2011-2012 empty money that does not gener- contributing desiatniki (literally, supervisors of 2011 has been entered into the reg- ate any social goods. The principle an average of ten members), sotniki (supervisors ister of financial institutions. The is very simple: the more people UAH of a hundred), tysiachniki (super- organisation has not received the you can recruit to the scheme, the visors of a thousand) and temniki. status of a financial organisation more you’ll earn. Initially, your 1,000. This does not mean that desiatniki or a licence to provide financial Thus, the Ukrainian contribution will go to other, older version of the Ponzi have exactly 10 people under them services, so its operations are pure members. And then you will get a sceme has collected – they may have 20 or 50. The fraud.” Furthermore, the Law “On certain percentage of investments ranks have to do more with de- Consumer Rights Protection” con- made by new members. The accu- UAH grees of responsibility: desiatniki tains the definition of a (financial) mulated money is not invested but 3-4bn are responsible only for their pyramid scheme and bans such is simply moved from the lowest group and the money flowing in it, pyramids. Meanwhile, MMM has level to the highest.” while sotniki and higher-ups have unfolded an aggressive advertise- This is the principle MMM- authority over various groups. But ment campaign, which should be 2011 lives by. It lives on, even desiatniki are exactly the ones who impossible to do without a licence. though it was believed that it recruit new members, receiving Instead of real shares issued in would collapse quickly due to its 10% of each new contribution. the 1990s that became one of the inglorious founder. Mavrodi’s first They also carry out all direct finan- cornerstones for the prosecution’s pyramid collapsed in 1994, bank- cial transactions: payouts to pyra- case, the reincarnated MMM uses rupting at least 10,000 people, mid members, acceptance of new an internal currency called mavry while 50 committed suicide over contributions, etc. They are con- which is purely virtual money. Its the financial disaster they experi- trolled by sotniki who are in turn value always changes, and a par- enced. managed by temniki. The latter re- ticipant can sell his share at any № 11 (34) July 2012|the ukrainian week|23 investigation|the return of ponzi schemes time. His income is what he earns for joining the system after a myself that it is indeed beneficial on the price difference. month, i.e., on 16 June. I was prom- and absolutely safe for me.” The rate of the MMM currency ised UAH 375 on that day (my ini- I expected my vis-à-vis to pro- is set for many months ahead as tial deposit plus 40%) and a UAH duce standard rhetoric aimed at av- can be seen on the pyramid’s offi- 160 bonus for the initial payment – erage simpletons in the style of vid- cial site and on Mavrodi’s web- a total of UAH 535, which means eos posted on MMM’s official web- page. The interest rate of the ma- UAH 235 of net profit in just one pages. “I used to work for UAH vro depends on the duration of month. 2,000 a month,” my interlocutor one's membership in the system: A week after my registration, I the longer your contribution has met with my foreman in a Kyiv the reincarnated MMM been in, the more you receive – 20, café. I told him I wanted to work in attracted 30 million 30 or even 40%. Thus, the system the MMM structure like he did. “In permits the smart and agile mem- fact, I am a coach in business tech- participants in the ber to quickly get his money back nology,” I said without batting an post-soviet territory and and more, while stripping the fee- eyelid. “I have a large human re- ble and slow-thinking of their en- source that I can get involved here. continues to grow tire investments. But to do it, I have to be convinced said with great agitation. “I also Fighting the system paid tuition, so I had to work as a For me as a correspondent of The pyram loader. Now I earn UAH 40-50,000 id Ukrainian Week, immersion a month. I’ve finally grasped how into the MMM structure began with our damned state is cheating us: r its website in Ukraine and a simple u you have to break your back doing registration procedure – it was easy  work you hate and you’re being ex- to use a fake name, because no М ploited like livestock!” I could not passport data was required. Five u believe what I was hearing: a

minutes after registration I re- r 20-minute torrent of harsh anti- Sergey Mavrodi e

М capitalism propaganda mixed with ceived a phone call from my super- visor, someone called Serhiy, with curses against the financial system,

contact information. I dialed the М the vampire state, the slavish exis- number, said I wanted to become tence of hired labour force, etc. It an investor and asked how I could seemed that Serhiy might produce make the initial contribution. a well-worn communist party Within 10 minutes I received a text membership card from his pocket message with a desiatnik's bank ac- Temniki at any minute and invite me to join count detalis. The publication de- an underground Bolshevik revolu- cided to invest UAH 300 in the af- tionary committee. fair. At the time, the monthly re- I asked him if I had a chance turn rate on investments in the to rise to the level of a desiat- pyramid was 40%. According nik. “No problem,” he said. to MMM’s conditions, I was Tysiachniki “I can see that you are a to receive UAH 300 after smart guy, so you can two weeks and a bonus become a supervisor

Sotniki

Desiatniki

Rank-and-file inveors

24|the ukrainian week|№ 11 (34) July 2012 the return of ponzi schemes|investigation the poster newbies and declared that the parts deputy director for research at the Warns: of the pyramid that owed money to Institute of Sociology, the National Pyramids are bad its participants were to be scrapped. Academy of Sciences. “They are for your financial He also said that the operation was a better informed than two decades health response to “endless provocations ago and understand that any pyra- and hysteria in the press” and “ac- mid indeed brings huge profits to tive government counteraction” begin with and then collapses. So against MMM-2011. This immedi- they try to calculate things perfectly ately caused a chain reaction and and pull out before it crumbles.” panic among investors ensued. It But why did Mavrodi decide to has been reported than many launch a new pyramid right now? branches of the pyramid completely Of course, it may be assumed that discontinued payments on invest- he had been waiting for people to ments and many offices were clos- forget about his previous fraud ing. Mavrodi later unveiled another scheme. But why, according to pyramid, MMM-2012, allegedly MMM itself, has Ukraine been the aimed at helping out the old one. driving force behind of this scheme However, Serhiy assured me over the past six months? that I could withdraw my money at “The arrival of the current any moment and that rumours were team to power caused a certain nothing else but “a slanderous cam- rollback of the overall social atmo- paign against MMM”. His overall sphere which is similar to the first message was that the situation was post-soviet years,” Holovakha ex- normal, even though there was a bit plains. “The similarity is not in of strain. He also informed me that I outward manifestations but in had become a desiatnik. I decided to people’s attitudes. They see how keep my money in to see what would different things are returning to happen to the most daring financial the reality of the early 1990s on a photo: reuters photo: scheme in Ukraine after the epic daily basis, essentially to the sys- over at least five people. Open Hunting the frauds of Elita Centre and King’s tem of soviet bureaucracy amidst your own account and go ahead. naїve: Mavrodi Capital. It would be interesting to post-soviet lawlessness. And this You’ll also have preferential con- invested nearly know if, by the time this article is atmosphere naturally fosters the ditions to buy mavros and the USD 10mn in published, the police or prosecutor’s reincarnation of other elements of the promotion right to 5% of the sum deposited of his new offices will have received any com- the past epoch, including MMM.” on the account of your group.” We pyramid plaints from MMM’s investors. According to scientific calcula- agreed that I would give him a list tions, the lifetime of a pyramid is a of my people two days later and The young and cynical year or eighteen months at the he would register me in the sys- The motivation of people who are most. Thus, MMM-2011 is now in tem of desiatniki. joining MMM now is totally differ- the turbulent zone anyway, and the Then I suddenly changed the ent from that which prevailed in chances that Mavrodi’s scheme will topic: Was he afraid that MMM the 1990s. Today, most of these survive until autumn are slight. But could soon collapse? Not in the people are below 30, while in 1994 what is next? “The key problem of least, Serhiy insisted. As long as the most investors were middle-aged MMM’s operation is not even that it state stays away from MMM’s af- people, with 30-35% of pension- cheats people out of their money,” fairs, everything will be great: the ers. So it turns out that the recent social psychologist Andriy Strutyn- system has unlimited potential for massive advertisement campaign sky says. “The main thing is that growth. “Even a serious bank will has not tricked the older genera- pyramids like that foster cynicism collapse if there is a bank run,” he in people, whether or not they par- said. “A campaign has been people see how things are ticipate themselves. Remember launched against us in the media. that after the original MMM pyra- They are slandering us and calling returning to the reality of mid collapsed in the 1990s, opinion us fraudsters. But where’s the fraud? the early 1990s polls showed that confidence in the Mavrodi himself and every desiatnik banking system and reforms in immediately warn that you can lose And this atmosphere general had plummeted. The rea- everything and there are no guaran- fosters the reincarnation son is that a quest for personal gain tees. So why isn’t playing cards for makes every pyramid member de- money considered fraud? It all de- of other elements of the fraud new members. And he will do pends on luck in cards, too.” In fact, past epoch, including MMM it even he when knows that they organising card-playing for money will lose everything. Later, after the is a crime under current legislation, collapse, this will show in other but I did not bring that up. tion, the category that is most vul- spheres and projects. This under- The day after I talked with Ser- nerable to fraud. Meanwhile, ac- mines trust in the financial system hiy, Mavrodi announced the start of tive and pushy young people seek- of the state as such. Since this sys- Operation Phoenix under which re- ing a quick and easy buck have tem rests exclusively on people’s turns on deposits were to be drasti- come to the pyramid on their own. trust in it and in each other, any cally cut from 40 to 10% per month. “The young always want to try state must fight pyramids with any Moreover, he cancelled bonuses for their luck,” says Yevhen Holovakha, means it has at its disposal.” № 11 (34) July 2012|the ukrainian week|25 society|after euro 2012 Soviet Echo and Ukrainian People Because of a lack of information, foreigners expect the worst of Ukraine and are generally pleased with what they see. Meanwhile frequent foreign guests are surprised by the fact that old soviet habits are dying so hard in Ukraine Author: t least our girls improve Bank. He now considers the lack of serves better coffee than European Natalia the country’s image,” comfortable public transport to be coffee shops. However, impressions Humeniuk Ukrainians commen­­ the capital’s main problem. Michael of restaurants were not so favour- "Аted, having heard the has something to compare it to – Vi- able, with prices being equal to those first impressions of foreign fans ennese public transport is considered in average European restaurants and who have come for Euro-2012. to be the best in the world, and every portions being really small. Smaller Beautiful girls, old buildings, cheap year, the Austrian capital is recog- portions can only be found at resorts beer and tasty but fatty food were nized as one of the three most com- in the Côte d'Azur. Foreigners resid- the first observations of Europeans. fortable cities to live in. Having spent ing permanently in the capital, com- Even though seven years have five years in Kyiv, the foreigner is plain that other than fast-foods, Kyiv passed since Ukraine introduced a amazed by the lack of progress. After has perhaps three or four restaurants visa free regime for citizens of the all, it is not that difficult create a pub- which offer value for money. Restau- EU and several other developed lic transport timetable, while traffic rants invest money in constantly countries, there are few tourists and jams are largely caused by Kyiv resi- changing their interiors, rather than employees of international compa- dents, who stubbornly get behind the improving their cuisine. nies in Ukraine, who have long been wheel, even though it’s quicker to Jorun worked in Moscow as a present in Nairobi, Beijing, Amman travel on the metro (underground). Dutch television journalist during or Sao Paolo. Our compatriots, just For the residents of Vienna, who live “the crazy 1990s”. He admits to being like the people of any country that in the suburbs and commute to work too critical and says that every time has been closed for an extensive pe- by car, it is standard practice to leave he comes to our country, he tries to riod, are interested in the opinion of their cars near the closest under- point out its drawbacks to everyone. foreign guests, and the positive im- ground station. “Sometimes they serve several dishes pressions of tourists are cause for Hank and Janet are pensioners at the same time; borshch, together national pride. At the same time, from the Netherlands, who have with salad and varenyky (a tradi- foreigners are able to notice that, never previously been “so far tional dish of meat, potato, fruit or which we have stopped paying at- East”. Before their visit, they won- curd dumplings). In my view, this tention to, and their comments give dered how they should dress in or- can be explained by the fact that Ukrainians the opportunity to take a der not to provoke thieves. Having many post-soviet people still con- critical look at themselves. The come to Ukraine they have realized sider work to be a burden and are too Ukrainian Week was interested that even dressed in the most ex- lazy to make an effort and pay atten- in learning such views, thus spoke pensive clothes, they would have a tion to the customer”, he says. with guests who have come for the modest appearance, compared to championship – both first-time visi- the female residents of Kyiv. THE RESIDENTS tors and people who have lived in They fell in love with Kyiv at OF CONCRETE JUNGLES our country for many years. first sight. The city reminded them That people from the former USSR of “Berlin with a greater number of never smile, is a fact for any for- LITTLE YELLOW BUSES ATMs”, and having seen numerous eigner, just the same as seeing Austrian journalist Michael Ried- street musicians they began to talk bears on Red Square in Moscow. müller visited Ukraine for the first about “the atmosphere of freedom, Nevertheless Janet and Hank time five years ago. At that time, he whereas in Amsterdam, it is neces- could not grasp why even children found great pleasure in the “little yel- sary to take an exam at the munici- do not smile in Ukraine, 20 years low buses, which can be stopped any- pality in order to play music in an after the collapse of the USSR. where”, called marshrutkas. But the underground passage – everything Corinne, a French photogra- amazement has faded after several is excessively regulated”. pher, spent many years in Africa. weeks of spending hours stuck in Some Dutchmen were concerned She came to Ukraine, which became these crowded buses on the bridge about safe nourishment in Ukraine, her gateway to the east of Europe, connecting the Kyiv housing area but within several days, they discov- on the eve of the championship. She called Troyeshchyna to the Right ered that any Ukrainian fast-food took pictures of the golden domes of 26|the ukrainian week|№ 11 (34) July 2012 after euro 2012|society impressions Gains and losses for Ukraine’s image Generousity and cordiality. In general, foreigners had the following impression of us: as a society, Ukrainians have many problems, but individually, they are exem- plary. “Ukraine is the only country where I have ever seen such a kind, sincere and friendly attitude towards guests,” commented British human rights activist Clare Dimyon, adding that she did not notice any traces of rac- ism in spite of the scare-mongering of the British media.

Beautiful girls. “Every other Ukrainian woman looks like a model,” say astonished European guests.

Prices. The price of most food products, alcoholic drinks and cigarettes in Ukraine have come as a pleasant sur- prise for guests either from the West, or from the East. Most of all, foreigners liked the cheap, but, in their view, good quality beer. However many were shocked by unjustifiably high prices in restaurants (particularly in Kyiv) and hotels (largely in Donetsk).

Food and drinks. Foreigners who had the courage to try Ukrainian dishes, did not think of them as being exotic, while they say that coffee is much better here than in West European coffee shops.

Nature and old architecture. Foreign guests were amazed by the churches, old buildings and green cities. “In Kharkiv I can see nature and beautiful buildings. Take a walk along this street, there is a church which you have to see,” this is what Manfred Walter advised to the Die Zeit journalists. Mr.Walter lives in trailer in the centre of the former Ukrai- nian capital. Meanwhile many people disliked the grey- ness of Soviet housing estates. Modern skyscrapers in resi- dential areas have also shocked many people, who won-

photo from http://karp.planeta2.org photo dered: “How can such awful building be constructed!”

Political prisoners. Many Europeans knew a lot about Potemkin villages (fake settlements). When taking just policemen” extorted EUR 50-100 from them, calling the the political situation in Ukraine. “I don’t see one per- one step out of city centres, with their repaired roads, bribe an opportunity to avoid a “fine of several thousands”. son here,” Swedish fan, Olaf, told The Ukrainian foreigners have been totally shocked by dilapidated Week, “her name is Yulia Tymoshenko”. Fans were roads, neglected villages and toilets “with a heart- Service. Many foreigners were unhappy with the small por- pleased to visit the camp of supporters of opposition- shaped hole instead of a proper toilet bowl!!! These tions in restaurants, slow service and personnel with a negli- ist Tymoshenko on Khreschatyk Street and put on T- Ukrainians are really creative!” (Mark shares impressions gent attitude towards customer preferences. In addition, shirts with an inscription saying “Free Yulia”. Mean- on Facebook). Many foreigners have also been shocked foreigners noted that sales clerks in shops were unfriendly. while during the Germany-Netherlands match in by the way local officials in several cities, trying to please “Having asked in English if I could use a payment card at a Kharkiv, German members of the European Parlia- VIPs, have organized entrances to the stadiums for ordi- gas filling station, I was given a dark look in response, as if ment, Rebecca Harms and Werner Schulz, together nary fans. For instance, Lviv ensured easy access to the to say “Where the hell have you come from?” – I gathered with 50 other activists, raised posters saying: “Re- stadium for UEFA representatives and VIPs on days when that she doesn’t understand what I’m saying. I showed her lease all political prisoners” and “Fair play in football matches were held, by closing down all but one of the the card. She started to explain something in her own lan- and politics”. roads in the vicinity of the Lviv Arena. This know-how re- guage, frequently using the word “nalichka” (cash, in Rus- sulted in traffic jams and many foreigners could only get sian) and giving me a withering look. She must have won- Communication problems. Incomprehensible road signs to a group stage match at the end of the first half. dered how on earth it was possible not to know such a sim- on city streets and on public transportation (with the ex- ple word. I think I would definitely have been late for the ception of the underground) were not translated into Bribes. All foreigners know about them, and many tourists match in Kharkiv if an English-speaking Ukrainian hadn’t English, while policemen and service workers mostly have personally encountered this phenomenon. On the inter- helped me. From now on I will never forget the meaning of learned sign language instead of English. net, (mostly) Swedes and Germans complain that “Ukrainian the word ‘nalichka,’” German fan Thomas wrote on Twitter.

№ 11 (34) July 2012|the ukrainian week|27 society|after euro 2012 atalia H umeniuk N atalia photo: churches and managed to find sev- possible. No-one builds anything FESTIVE Norbert’s greatest concern was not eral homeless dogs. When traveling, like this anywhere in the world to- POSING. even the condition of the roads, but she is particularly interested in com- day, after all, people’s mood de- Donetsk girls the Ukrainian police, however, the municating with people, so she stays pends on their surroundings. Every were happy minibus was not stopped a single with friends, rather that at hotels. new building in London has to have to pose for a time. Meanwhile other fans com- According to her, Ukrainians are a certain aesthetic value,” he says. photograph plained that when approaching with French hospitable, but cold and closed. “It is Another never-ending subject fans near the Kharkiv, they did not notice a po- very difficult to make people let you addressed by expatriates is the un- Donbas Arena liceman trying to pull them over, so in their world. I’m used to living in reasonably high cost of real-estate. did not stop in a timely manner. The Africa. There, once the locals have Young Europeans are often most sur- police pursued the car and de- opened their doors to you, they no prised by the number of Ukrainians manded a fine in the amount of EUR longer treat you as a stranger. Here, of their age getting a mortgage to buy 160, of which EUR 25 was returned on the other hand, a barrier re- apartments. A 30-year old French- after a five-minute discussion. The mains, even after much time has man wouldn’t take a EUR 100,000 Dutchmen, who had heard a lot been spent together.” loan, not only because it is unafford- about bribery in Ukraine, were not Oliver from Britain appears to able, but also because he does not so much surprised by the demand have been bewitched into coming to want an apartment, or in other for money, as by the incomprehen- this region, simply because “the lo- words, the repayment of a mortgage, sible “discount”. cals are more humane, the problems to be the meaning of his life. When preparing for his trip to more real, as is life”. Kyiv reminds Ukraine, Norbert packed an elec- him of Moscow and St. Petersburg at UKRAINIAN TEST DRIVE tric generator and a solar battery the end of the 1990s, where he lived Norbert from Berlin is responsible lamp, just in case. But he could not EXTRA WORK. for five years. Oliver has a positive for logistics at the German represen- The minibus be prepared for everything and comment: “Moscovites have become tative office of RTL, the Dutch TV of the camera had to repair his broken minibus artificial, they bluff too much, every- channel. His camera crew is follow- crew of RTL, in Kyiv. “This would have been im- thing is for show, there is less and ing Dutch fans. These guys drove a the Dutch possible in Germany or the Neth- less sincerity, which is something minibus from Berlin via Warsaw TV channel erlands,” he says, really pleased, that you still have here”, he said. and Kyiv to Kharkiv, where the was urgently “We called the service centre in the For him, the biggest shortcom- Dutch national team was playing. repaired in Kyiv afternoon and picked up the re- ings of post-Soviet cities are dismal paired bus at 21:00. The most im- housing estates, which cannot even portant thing for our mechanics is be brightened by the green banks of to be home by 18:00. Nobody the Dnipro River. “I guess that it is would stay at work until 21:00”. because of these boxes that people At the same time, he had trou- are so depressed. Architecture of ble understanding why, in a coun- this sort gives no inspiration and try where people are ready to work even destroys it”, he said. Leaving a deep into the night, the road near new residential complex on the Left Kharkiv was not ready the day be- Bank, the British man was shocked fore the start of the championship. to hear that it had only been built In Kharkiv, the German-Dutch just seven years ago. “Isn’t it a camera crew was more interested in building from the 1970s, isn’t it a the impressions of the locals regard- relic from the Soviet era? That’s im- ing foreign fans rather than vice 28|the ukrainian week|№ 11 (34) July 2012 after euro 2012|society

A FAN OF UKRAINE. Austrian Michael Riedmüller did not shave as long as Ukraine was playing in the championship atalia H umeniuk N atalia photo: H umeniuk N atalia photo: versa. “I guess the march of 10,000 FAMILIAR can be flexible, while our schedules a disaster for Ukraine. Due to a Orangemen dressed in bright carni- EASE.French never change,” the Dutchman con- lack of information about Ukraine, val costumes came as a positive cul- journalist cluded. their expectations were low. But tural shock to the Ukrainians. Sébastien All Ukrainian hopes were fo- most impressions turned out to be Becky Gamester, a British jour- Gobert feels cused on the attraction of Lviv for very positive, especially in respect nalist and fan from Nottingham at home at tourists. Austrians said that the city to Ukrainians themselves. How- Hostynniy Dvir, called Donetsk a “city of roses”. located in an looks like “Vienna 100 years ago”. ever, we will only know for sure if “Girls, parks, beer” – was the im- old building in Security concerns faded when a foreigners enjoyed their vacations pression of the nearly thousand Kyiv guest from Vienna forgot to lock his in Ukraine if they want to come French fans who came to the east of old car and found it undamaged back after the championship. Ukraine. Guillaume from Paris says two days later in the city centre. French and Austrian journalists that two weeks in Donetsk was Lviv seemed dear not only to the Sébastien Gobert and Michael Ried- enough for him to fall in love with citizens of the former Habsburg müller supported the Ukrainian na- the city, the reason for this being its Empire. A group of Portuguese fans tional team, referring to Ukraine as flowers and fountains. Though in his had a hard time finding their bus their second home. During the view, the people of Donetsk ap- stop, then squeezing into their championship they were pleased peared very constrained. “The peo- “marshrutka”. The fans seemed un- that their countries’ media finally ple are pleasant and hospitable, but happy and could not understand took an interest in Ukraine and de- very cautious and completely un- how to pay for the ride. But as soon cided they could also write about emotional. Although they paint their as the driver noticed the Portu- the history of the traditional Ukrai- faces for the match, they are quiet, guese flag, he explained everything nian soup called “borshch”, give there is no impression of something in fluent Portuguese. The thing is portraits of the oligarchs who own uniting them. The city lacks atmo- football clubs, and print an investi- sphere,” he says. gative article on the notorious presi- Dutchman Arien’s company, why, in a country where dential residence in Mezhyhiria. which operates throughout Europe people are ready to work During the last few weeks, Sébas- and North Africa, installed the tien and Michael took every oppor- sound systems at stadiums for Euro- deep into the night, the tunity to visit Kontraktova Square 2012. Arien has been visiting road near Kharkiv was not instead of the noisy fan zone on Ukraine for 10 years. During a break Khreschatyk, the main street of caused by rain during the Ukraine- ready the day before the Kyiv. The thing is that there are France match at the Donbas Arena, start of the championship plans to rebuild an old building on he said that our stadiums are the Kontraktova called Hostynniy Dvir, best in the world. “I’m really happy that he had worked as a builder in and opponents of this plan are try- to cooperate with Ukrainians. If the Portugal for several years. ing to create a new cultural space, client has money, he can get high organizing various artistic events. quality and quick results here,” he AN ATMOSPHERE OF FREEDOM According to the journalists, for the said. Meanwhile western “punctual- No large-scale event changes a first time after all these years in ity” is not always beneficial for the country like the revelation of a Kyiv, they “really feel at home, sens- client. Arien was worried he would country’s advantages and defects, ing an atmosphere of freedom and miss his plane because of the delays as if on a projector. During the last ease, which can be found in Paris, in the match, only to discover that two years Europeans kept asking Vienna, Lille or Brussels, but had al- the flight was delayed. “Ukrainians whether Euro-2012 would become ways lacking in Kyiv”. № 11 (34) July 2012|the ukrainian week|29 society|Free exchange Hope Springs a Trap An absence of optimism plays a large role in keeping people trapped in poverty

HE idea that an infusion of fects were so large and persistent employee to mind the shop. As a hope can make a big differ- that they could not be attributed to result, they often forgo even the ence to the lives of wretch- the direct effects of the grants: small incremental investments of Tedly poor people sounds like people could not have sold enough which they are capable: a bit more something dreamed up by a well- milk, eggs or meat to explain the fertiliser, some more schooling or meaning activist or a tub-thump- income gains. Nor were they sim- a small amount of saving. ing politician. Yet this was the cen- ply selling the assets (although This hopelessness manifests it- tral thrust of a lecture at Harvard some did). self in many ways. One is a sort of University on May 3rd by Esther So what could explain these pathological conservatism, where Duflo, an economist at the Massa- outcomes? One clue came from the people forgo even feasible things chusetts Institute of Technology fact that recipients worked 28% with potentially large benefits for known for her data-driven analysis more hours, mostly on activities fear of losing the little they already of poverty. Ms Duflo argued that not directly related to the assets possess. For example, poor people the effects of some anti-poverty they were given. Ms Duflo and her stay in drought-hit villages when programmes go beyond the direct co-authors also found that the the city is just a bus ride away. An impact of the resources they pro- beneficiaries’ mental health im- experiment in rural Bangladesh vide. These programmes also make proved dramatically: the pro- provided men with the bus fare to it possible for the very poor to gramme had cut the rate of depres- Dhaka at the beginning of the lean hope for more than mere survival. season, the period between plant- She and her colleagues evalu- ing and the next harvest when ated a programme in the Indian Ms Duflo argued that the there is little to do except sit state of West Bengal, where Band- effects of some anti- around. The offer of the bus fare, han, an Indian microfinance insti- an amount which most of the men tution, worked with people who poverty programmes go could have saved up to pay for lived in extreme penury. They beyond the direct impact of themselves, led to a 22-percent- were reckoned to be unable to han- age-point increase in the probabil- dle the demands of repaying a the resources they provide ity of migration. The money mi- loan. Instead, Bandhan gave each grants sent back led their families’ of them a small productive asset— sion sharply. She argues that it consumption to soar. Having expe- a cow, a couple of goats or some provided these extremely poor rienced the $100 increase in sea- chickens. It also provided a small people with the mental space to sonal consumption per head that stipend to reduce the temptation think about more than just scrap- the $8 bus fare made possible, half to eat or sell the asset immediately, ing by. As well as finding more of those offered the bus fare mi- as well as weekly training sessions work in existing activities, like ag- grated again the next year, this to teach them how to tend to ani- ricultural labour, they also started time without the inducement. mals and manage their house- exploring new lines of work. Ms People sometimes think they holds. Bandhan hoped that there Duflo reckons that an absence of are in a poverty trap when they are would be a small increase in in- hope had helped keep these people not. Surveys in many countries come from selling the products of in penury; Bandhan injected a show that poor parents often be- the farm animals provided, and dose of optimism. lieve that a few years of schooling that people would become more Ms Duflo is building on an old have almost no benefit; education adept at managing their own fi- idea. Development economists is valuable only if you finish sec- nances. have long surmised that some very ondary school. So if they cannot The results were far more dra- poor people may remain trapped ensure that their children can matic. Well after the financial help in poverty because even the largest complete school, they tend to keep and hand-holding had stopped, investments they are able to make, them out of the classroom alto- the families of those who had been whether eating a few more calories gether. And if they can pay for only randomly chosen for the Bandhan or working a bit harder on their one child to complete school, they programme were eating 15% more, © 2012 The minuscule businesses, are too often do so by avoiding any educa- earning 20% more each month Economist small to make a big difference. So tion for the children they think are and skipping fewer meals than Newspaper getting out of poverty seems to re- less clever. Yet economists have people in a comparison group. Limited. All quire a quantum leap—vastly more found that each year of schooling They were also saving a lot. The ef- rights reserved food, a modern machine, or an adds a roughly similar amount to a 30|the ukrainian week|№ 11 (34) July 2012 Free exchange|society Hope Springs a Trap

person’s earning power: the more education, the better. Moreover, parents are very likely to misjudge their children’s skills. By putting all their investment in the child who they believe to be the bright- est, they ensure that their other children never find out what they are good at. Assumed to have little potential, these children live down to their parents’ expectations. The fuel of self-belief Surprising things can often act as a spur to hope. A law in India set aside for women the elected post of head of the village council in a third of villages. Following up sev- eral years later, Ms Duflo found a clear effect on the education of girls. Previously parents and chil- dren had far more modest educa- tion and career goals for girls than for boys. Girls were expected to get much less schooling, stay at home and do the bidding of their in-laws. But a few years of exposure to a female village head had led to a striking degree of convergence between goals for sons and daughters. Their very existence seems to have expanded the girls’ sense of the possible beyond a life of domestic drudgery. An unexpected conse- quence, perhaps, but a profoundly hopeful one. № 11 (34) July 2012|the ukrainian week|31 Society|Psychology of survival Why Don’t Ukrainians Smile? The Ukrainian Week digs into the nation’s insecurities that stem from too much patience, a defensive reaction to what is happening in the country and the inability to find joy in life

Author: Distorted priorities is or have no idea of how to deal Valeria Burlakova "En masse, Ukraini- with an unhappy marriage. “For ans highly appreci- objective reasons, statistics does he absence of smiles on the ate influential fam- not allow a credible estimate of faces of passersby in the ily and friends the relevant reality,” says Semen (37.2% and 27.8% streets. This is the most respectively), the Gluzman, President of the T common impression that skill to bypass the Ukrainian Psychiatric Associa- foreigners have of Ukrainians. law when neces- tion. “The frequency of such ill- Does this lack of positive emo- sary (33.8%) and ness probably does not differ tions on people’s faces signal background in a from that in other countries. The psychological problems? family with high so- main difference between our Experts point out a dramatic cial status (29.3%), county and most civilized coun- change in the attitude towards ranking only good tries is widespread alcohol and professional psychological help. health and intellect drug addiction and related men- Ukrainians are ever more often higher with 41.2% tal disorders. However, in actual and 39.2% respec- turning to psychologists for help tively," Natalia So- fact, the government continues in dealing with stress, life trau- boleva reports in to ignore this serious problem.” mas, fears, phobias, depressions the Ukrainian Soci- Psychologist Volodymyr Se- and addictions. Age crises are ety. 20 Years of In- livanov also notes that alcohol- another widespread reason. “Do dependence. A So- ism, partly caused by depres- you know what is most frighten- ciological Survey by sion, is a very urgent problem in ing?” comments Nadia Steklova, the National Acad- Ukraine, as is anorexia. “Girls a psychologist and psychothera- emy of Sciences' think they are fat, even though pist, director of Amatey centre Sociology Institute. they look like skeletons,” he ex- and member of the International Meanwhile, they plains. “Western culture fuels list intellect and tal- Positive Psychology Association. ent (62.9%), good this, promoting certain body- “Most often, their troubles stem education (53.2%), type standards. It used to be rare from negative attitude towards as well as integrity here earlier.” themselves, lack of confidence, and the ability to Overall, any psychological an unhealthy dependence on stand to ones prin- problems are potentially life what other people think and hes- ciples (33.4%) as threatening as they often trigger itation.” According to psycholo- the necessary com- physical illnesses, mostly affect- gist Natalia Shevchenko, most of ponents for be- ing the cardiovascular, endo- her clients use almost the same coming successful crine and respiratory systems. in the West. words “I don’t know what to do”, “Heart attacks, asthma, diabe- as they complain about conflicts tes, etc., can be the result of psy- in the family and at work, as well chological troubles,” he says. as the state of depression of in- “These are psychosomatic disor- dividual people. ders that are widespread in Ukraine.” What is normal? But, everything depends on There are no official statistics, how the mental state affects the therefore it is impossible to dis- physical state. “As far as the cover how many Ukrainians above is concerned, my teacher, don’t know what to do when they a professor of psychiatry, used don’t know what the sense of life to say that there is a dialectical 32|the ukrainian week|№ 11 (34) July 2012 Psychology of survival |Society line between healthy people and by the need to survive the Tar- those with disorders,” Mr. Se- tars, the Poles and the Russians. livanov explains. “In other It makes people tolerant, espe- words, it’s a philosophical is- cially in relations with others, sue.” This also pertains to psy- because they need to group to- chological problems. The only gether and stay in touch to sur- guideline can be a person’s in- vive. Even looking for a partner ternal state: does he/she live in is always for a reason, a pur- comfort, is he/she capable of be- pose.” ing happy, setting goals and nor- The need to survive often mal interaction with other peo- keeps Ukrainians from leaving ple. their partner in an unhappy marriage. This family model also The illnesses of the state extends to other aspects of life, “Many Ukrainians are not sure the attitude to government for of their future,” Semen Gluzman instance. “They are bad but we insists. “They are unable to find still tolerate them. What can be a decent job, feel stressed out done about it? Nothing! That’s whenever they visit obnoxious the kind of wife I have. And civil servants and cannot get that’s the government,” Mr. Se- proper medical service, free or livanov quotes the typical re- paid. They feel weariness, apa- sponses of his patients. This un- thy and anger.” These are the healthy patience, intertwined people that make up Ukrainian with fear of change and respon- society, Mr. Gluzman notes, sibility, hampers personal devel- “Only they are not sick. This is opment. the reaction of perfectly normal Why don’t the new genera- people to an abnormal state. The tions, which no longer need to sickness of the latter cannot be survive, change anything? “They cured by a pill. The only effective follow psychological models of medicine for this is the proactive relations that have only intensi- civil position of society as well as fied over the past few genera- proactive, well-thought out and tions, rather than biological fac- balanced participation in the tors,” Ms. Steklova explains, al- elections.” though psychological models Sociologists confirm that vary by region. “Look at a person positive or negative expectations born in Lviv and one in Donetsk, about the country’s fate also af- and you’ll see different people,” fect the way Ukrainians feel Volodymyr Selivanov notes. about their own future. Ukrai- “People from Donetsk are more nian Society. 20 Years of Inde- of the Russian type: straight for- pendence. A Sociological Sur- ward, outgoing, direct and ag- vey, conducted by the National gressive. People in Lviv are more Academy of Sciences’ Sociologi- refined and constrained.” cal Institute reports that most Ukrainians are not divided Ukrainians hoped had good ex- by their psychological differ- pectations after 1999. In 2011, ences, yet some reasons for however, the share of optimists East-West dislikes could lie in plummeted to just one third, their minds, such as the search hopes replaced by worry and for an enemy. Enemies can be fear. In 2011, fear and pessi- useful to both politicians and av- mism increased, along with con- erage people, who feel that life is cern about the country, while easier when there is someone to confidence and faith in personal resist. They can blame all their life and the life of the country problems on an opponent, some- declined. one with different skin colour or ethnic background, and it makes Survival as a it easier for them to find the pur- national mindset pose of life, excuses for their Ukrainian patience comes from troubles and even support. the multi-century need to sur- “Look at racists or radical na- vive. “Our northern neighbour tionalists,” advises Mr. Seliva- had ideas of subjugation, expan- nov. “They are solidly in the sion, creating an empire and middle, against the world that ‘rescuing the world’,” Mr. Seliva- surrounds them. Within a group, nov comments. “In Ukraine, by they get stronger support than phото: andriy lomakin phото: contrast, everything was defined average people do from each № 11 (34) July 2012|the ukrainian week|33 Society|Psychology of survival

other, because they have an en- psychiatric research showed that quotes a Russian saying. “Ukrai- emy. Wars tend to make people the frequency of Schizophrenia, nians tend to think of pleasure have a greater appreciation for this is the disorder that was re- and fun as something that’s not the likeminded.” Moreover, di- searched, did not depend on the very good. Work, for instance, is versity among people living in duration of daylight, the sur- toil. They see it as something different regions is characteris- rounding temperature or the na- they should suffer, not enjoy. tic for virtually every country. ture of food, etc.” Semen Gluz- They’ll think there is something man says. “Political regimes, wrong with you if you tell them, Gloom as defense ‘I’m having fun at work!’” Looking gloomy in the street is a If you want to change the neurotic defense, psychologists Looking gloomy in the world start with yourself, goes a explain. Ukrainians tend to ex- street is a neurotic defense, popular quote that is also appli- pect others to fool, rob, insult or cable for Ukrainians. “Society mock them, so they believe they Ukrainians tend to expect should break the vicious circle should always be alert for ag- others to fool, rob, and move to a new stage of devel- gression from others, have a se- opment,” Nadia Steklova says. rious facial expression and be insult or mock them “and this is only possible when suspicious. To a certain extent, an individual is ready to accept this can be explained by the high such as despotism or democracy, new information and willing to crime rate in the country. “The do not affect the frequency of change his/her habits.” America portrayed in the Gangs mental disorders, either.” Ukrainians should learn to of New York did not smile the What affects the behavior not tolerate terrible personal re- way it does now,” is the compar- and psychological state of soci- lations or a bad government. ison made by Mr. Selivanov. ety, though, is stereotypes. They should not be embarrassed Fortunately, Ukrainians’ sus- Ukrainians also do not smile be- to smile in the street or find sat- piciousness will not evolve into cause of their distorted attitude isfaction every single day. They an epidemic of mental disorders. towards fun in life. “Work done, should learn to live rather than “In the mid 20th century, socio- have your fun,” Mr. Selivanov survive. 34|the ukrainian week|№ 11 (34) July 2012 Psychology of survival |Society Pessimi ic tendencies How Ukrainians feel about their future and the future of their country 1999, % 2001, % 2002, % 2003, % 2005, % 2006, % 2010,% 2011, %

Hope 56.5 51.4 55.8 58.8 61.2 50.7 56.4 58.8 35.5 43.8

Anxiety 48.3 46.0 33.2 46.9 24.4 34.4 29.1 26.4 42.8 36.1

Fear 20.7 23.5 15.1 22.8 8.1 11.0 16.4 12.9 25.6 21.5 - Optimism 16.9 14.3 23.0 33.8 25.5 25.1 28.3 21.6 27.5

Confusion 13.7 14.3 9.4 19.8 10.5 16.0 17.1 12.1 22.6 18.7

Despair 9.7 13.3 8.6 14.6 6.1 11.2 13.3 6.2 2 0.3 13.4

Indifference 3.2 3.4 3.5 2.9 2.7 2.8 2.4 2.0 5.9 5.6

The total exceeds 100 because those polled could choose more than one answer Feelings about Source: Ukrainian Society. 20 Years of Independence. Sociological Survey by the National Academy of Sciences’ Sociology Initute personal future Top 6 fears of Ukrainians 1. Co a-Rica Happy Planet Index 2. Vietnam Unemployment Price increase The New Economics Foundation ... (NEF) measures how content 55. Georgia 71,9% 74,7% people are with their lives by ... analyzing their subjeive 99. Zambia Closing Wage and opinion on everyday life, life 100. Ukraine enterprises pension delays expeancy and energy 111. Sudan 33,8% consumption in 151 countries ... 56,8% 120. Lithuania 121. Russia Crime ... Hunger 33,6% 42,0% increase 150. Chad 151. Botswana Source: National Academy of Sciences’ Sociology Initute, 2011 Source: NEF № 11 (34) July 2012|the ukrainian week|35 history|symbols of ukraine

A blue-and-yellow flag before being taken into the building of the Verkhovna Rada on 23 August 1991

Symbols of Independence Ukraine’s national flag, emblem and anthem have a long history and national status but have yet to become true national symbols

Author: his year marks the 20th anni- times of Kyivan Rus' and the church building, an anchor, a Andriy versary since Ukraine’s sym- Rurik dynasty. Its original hawk, the upper part of a scep- Rukkas bols of state were officially meaning has become obscured tre or three natural elements. Tapproved. They are young but over time and now there are One thing is clear: the trident have deep historical roots. dozens of academic papers to was featured in princes’ seals in explain it. Some see it as a code pagan days, so it should not be The origins for the Greek Βασιλεύς (Vasi- viewed through the prism of of national symbols leus, or tsar), and others believe Christianity. At the same time, Ukraine’s national coat of arms, it represents a church candle- it could not be a purely pagan the trident, goes back to the stick, a gonfalon, the portal of a symbol, because it continued to 36|the ukrainian week|№ 11 (34) July 2012 symbols of ukraine|history A myth by Ukrainians in Galicia and Some people say that The turbulent later in regions along the the Ukrainian an- perestroika them was copied Dnieper, thus turning into a true from the Polish one. Opportunities for reviving na- national symbol. But they only have a tional symbols came only with similar first line, The lyrics to the national an- which was common the start of democratic changes them ‘Shche ne vmerla Ukraina’ practice in the 19th in the USSR. The trail here was (Ukraine Has Not Yet Died) were century when the an- blazed by the Baltic states – Es- thems of most Euro- written in autumn 1862 by poet pean nations were tonia, Latvia and Lithuania ad- Pavlo Chubynsky and the music written. The Polish opted their pre-war flags as na- anthem was espe- was composed a year later by cially popular among tional (but not yet state) symbols Greek-Catholic priest Mykhailo non-free Slavs, inspir- in 1988. Moldovans, Georgians, Verbytsky. The first public pre- ing, among others, Armenians and Azeris followed Croatians, Slovaks sentation took place in 1864 in and Sorbs to com- their lead. the Ukrainian People’s Theatre in pose their own patri- The conservatively minded otic songs that also Lviv. The song became immensely started with the line leadership of Ukraine, however, popular and so widely known that about a country that protected the soviet symbols. had “not yet died.” Chubynsky’s friends had to de- Note also that “God The Commission of the Supreme fend his authorship and prove Save the Queen” in- Council of the Ukrainian SSR for that it was not a folk song. spired other an- Patriotic and International Edu- thems, such as those Ukraine’s national symbols of Austro-Hungary, cation and International Rela- were conclusively established the Russian Empire tions held a meeting in summer during the Liberation Struggle of and Latvia. 1989 and decided that the soviet 1917-21 when the national em- symbols could not be abandoned blem and flag were legally fixed during perestroika. For example, and the anthem obtained recog- writer Yuriy Mushketyk, who is nition de facto (see Varieties of now a Hero of Ukraine, noted re- Ukrainian symbols). sentfully that certain individuals After Ukraine lost its state- carried blue-and-yellow flags hood, these three national sym- during Shevchenko Days in Kyiv. bols were not forgotten or lost. “We should not replace the prole- On 15 March 1939, when Car- tarian colours of our flags, the pathian Ukraine in Transcar- communist symbols … [because] pathia was proclaimed an inde- the people’s government fought pendent Ukrainian state, it ad- and put the ideas of the Great opted them as its state symbols. October into life under them,” he The UPA (Ukrainian Insurgent emphasised. Army) and underground fighters Leonid Kravchuk, chairman also used them, and after the of the Commission and head of Second World War they became the Department for Ideology in truly national symbols of all Ukrainians in the “free world.” The national symbols Soviet symbols became a kind of battlefield During the period of over 70 between two models of years of soviet rule, the Ukrai-

photo from http://karelin.org.ua/derzhavnyj-prapor-nad-ukrajinoyu photo nian SSR had its own state sym- identification bols which differed little from be used long after Kyivan Rus' the soviet state's symbols and the CC CPU (Central Comittee of was Christianised. underscored its dependent con- the Communist Party of The Ukrainian national flag dition: a red flag with the abbre- Ukraine), summed up the pre- as a symbol for the masses (un- viation “USSR” or a hammer, vailing position: “The blue-and- like banners that were identified sickle and star, and a narrow yellow colour in the history of with specific individuals or blue strip was added in 1949. The our Republic, to say nothing groups) emerged together with Ukrainian SSR did not have its about the Bandera era in western the Ukrainian nation which had own anthem for a long time. One regions of Ukraine, is compro- a clear desire for political self- was produced — also in 1949 — mised. Everyone has concluded determination, societal self-con- by composer Anton Lebedynets that it is tainted with fighting sciousness and a standard lan- and poet Pavlo Tychyna. and resistance against our red- guage. The Chief Ruthenian Ukrainian national symbols and-blue flag… These dirty and Council, the first political organ- were banned in the USSR, and bloody symbols are alien to the isation of Ukrainians in Galicia their use was punished as “anti- Ukrainian people. They have al- founded in May 1848 in Lviv, was soviet agitation and propaganda.” ways been equated with exploit- instrumental in establishing the Heorhiy Moskalenko and Viktor ative statehood.” blue-and-yellow flag. On 2 June Kuksa were convicted of this 1848, it was presented at the crime when they raised a self- On the way to adoption Slavic Congress in Prague and made blue-and-yellow flag in Kyiv Despite the convulsive ideologi- was quickly and widely adopted on 1 May 1966. cal gestures of the party nomen- № 11 (34) July 2012|the ukrainian week|37 history|symbols of ukraine Varieties of Ukrainian symbols Tridents in the Coats of Arms Riurykide dyna y The Small National Coat of Arms of the Ukrainian National Republic (1918) Sviatoslav the Conqueror (964-972) On 12 (25) February 1918, “the emblem of the Kyivan State under St. Volodymyr” was adopted as the UNR’s coat of arms. The graphical design of its small and great versions were approved on 22 March The Great National Coat of Arms of the ? Ukrainian National Republic (1918) Yaropolk (972-978) Volodymyr the Great (978(980)-1015)

The Coat of Arms of Pavlo Skoropadsky’s ate (1918): a Cossack with a musket in a Baroque cartouche with a trident on top. It was not officially eablished but was featured in the small ate seal and bills of exchange Sviatopolk the Accursed Iziaslav I Yaroslav the Wise M yslav the Brave (1015-1016, 1018-1019) (990-1001) (1019-1054) (1024-1036) The Coat of Arms of the We ern Ukrainian National Republic (1918) Flags ? The flag of the Chief Ruthenian Sviatoslav Council (1848) is a blue banner with 1054-1068, 1073-1076) a golden lion in the centre, which is The Coat of Arms of Soviet Ukraine (1919). copy of the coat of arms of the Iziaslav II Vsevolod The main elements are a hammer and a medieval Galician-Volhynian ate. (1054-1073) (1054-1068, 1078-1093) sickle lit by sunbeams placed in a cartouche Over time the two colours came to of a complex form with ears of wheat be used for two horizontal ripes. wrapping it on both sides (with the colour of the upper ripe identical to that of the image in the coat of arms, and the lower ripe ? has the colour of the background) The Coat of Arms of Soviet Ukraine (1937) Volodymyr Monomakh Oleh (1113-1125) One of the versions of the (1073-1115) Ukrainian national flag used in the years of the Ukrainian Revolution (1917-1918)

The Naval Flag of the Ukrainian The Coat of Arms of Soviet Ukraine (1949) National Republic eablished by the Central Rada on 14 (27) January Yurii Dolgorukii Vsevolod II 1918, with a golden trident in the (1149-1157) (1115-1146) The Coat of Arms of Soviet Ukraine (1949) left upper corner. The trident was is a combination of the coat of arms of included in the flags used on Subcarpathian Rus’ (a bear in the red military vessels but was missing semicircle to the left and four blue and three from merchant ships yellow ripes in the right semicircle) with the national coat of arms (the trident of The flag of Soviet Ukraine (1918) Volodymyr the Great with a cross on the middle prong)

The flag of Soviet Ukraine (1919) Vsevolod The Small National Coat of Arms the Big Ne of Ukraine (1992) (1176-1212) Ro yslav Andrei Bogolyubsky (1141-1151) The flag of the Ukrainian SSR (1155-1174) (1929) The draft of the Great National Coat of Arms of Ukraine approved by the Cabinet The flag of the Ukrainian SSR of Miniers and submitted to the (1937) Verkhovna Rada for approval (2009)

The flag of the Ukrainian SSR (1949) AnAn alaalternativel draft of the Great M yslav NationalNatNattioio Coat of Arms of Ukraine (died 1173) prprooposedopop by MPs Oksana Bilozir, Hanna The National Flag of Ukraine (1992) HerHeHHermane m and Kateryna Vashchuk (2009)

38|the ukrainian week|№ 11 (34) July 2012 symbols of ukraine|history klatura, soviet symbols in that it had to include a trident became “Ukraine’s glory and Ukraine were doomed. In spring but disagreed on its specific de- freedom have not yet perished”. 1990, blue-and-yellow flags sign. Parliament adopted a com- Today, Ukraine is still in the were raised in Lviv, Ivano- promise resolution on 19 Febru- process of adopting its state Frankivsk and Ternopil regions ary 1992, and fixed this histori- symbols. It still lacks a law on after the opposition forces led cal symbol as Ukraine’s Small the National Flag and the Na- by the People's Movement of Coat of Arms, which was sup- tional Coat of Arms. Their use is Ukraine obtained a majority of posed to become the main ele- so far regulated by parliament seats in the local councils there. ment of the Great Coat of Arms. resolutions. On 23 July, the Ukrainian na- The existence of two coats of tional flag appeared next to the arms is fixed in the Constitu- The danger of soviet Ukrainian red-and-blue tion, which says: “The Great Na- reincarnation flag in front of the Kyiv City tional Coat of Arms of Ukraine Unfortunately, in the 20 years Council. shall be established incorporat- Ukraine has been independent, In the last years of the Soviet ing the elements of the Small its national symbols have failed Union, the issue of national sym- National Coat of Arms of to consolidate society. Despite its bols in Ukraine was more than a Ukraine and the Coat of Arms of chief mission of uniting the coun- debate about colours and em- the Zaporizhian Sich”. However, try’s citizens regardless of their blems. It became a kind of bat- the country still does not have a nationality, religion or political tlefield between two models of Great Coat of Arms. preferences, they are still viewed identification and visions of fu- In more than 15 years since by many as a modern invention ture development. Society essen- and are used mechanically, with- tially split into the hammer-and- out any emotional link to history. sickle camp and the supporters a change of colours does On the one hand, there has been a of the trident. The former de- not mean that political positive trend since the fall of manded keeping Ukraine in the communism in that society no USSR, while the latter called for elites from the old party longer has negative or openly independence. nomenklatura accept the hostile reaction to the blue-and- After the failed Moscow yellow flag and the trident unlike coup, opposition MPs solemnly symbols as markers of in the early days of independence. brought a large-sized blue-and- separation from soviet past On the other hand, a change of yellow flag into the session hall colours does not mean that of parliament on 23 August 1991. Ukrainian political elites, which The National Flag of Ukraine the Constitution was adopted, evolved from the old party no- holiday was instituted in 2004 four government commissions menklatura and the red proletar- to commemorate this event. were formed to prepare and hold iat, truly accept the national sym- Ukraine declared its indepen- competitions to design the Great bols as markers of Ukraine's sep- dence the next day. The opera- National Coat of Arms, but only a aration from soviet past. tion of the Communist Party of handful out of hundreds of sub- There have been increas- the Soviet Union was banned in missions reached the stage of a ingly frequent attempts in the Ukraine and the Communist draft bill. past two years to restore the old Party of Ukraine temporarily A somewhat similar situa- soviet symbols. The communists suspended its activities. tion arose in adopting the na- are no longer alone in their The utterly compromised tional anthem. The Presidium of cause. In May 2010, the Verk- Communist Party symbols were the Verkhovna Rada adopted hovna Rada passed a law on the soon seeing their last days. On 4 only Verbytsky’s music as the Victory Flag, and a wave of at- September 1991, under the in- score for the anthem in the in- tempts to revive totalitarian sistence of Verkhovna Rada tersession period on 15 January symbols swept across Ukraine. Spea­ker Leonid Kravchuk, who 1992. It was played, but not Contrary to a Constitutional quickly read the situation, MPs sung, for 11 years. The anthems Court ruling which pronounced passed a resolution to raise “the of Russia, Belarus, Bosnia and these actions illegal, red ban- historical blue-and-yellow flag Herzegovina and Spain were ners are hung out next to blue- that symbolises the peace-lov- also wordless. The text was fi- and-yellow flags on the local ing Ukrainian state through the nally adopted on 6 March 2003. council buildings in eastern colours of a clear sky and a field The communists, inspired by Ukraine, and not only on May 9, of wheat” over parliament. As of the restoration of the soviet an- but also to mark days when the 18 September, this flag could be them in Russia, had tried to do Nazis were driven out of indi- used in all official events. Par- the same in Ukraine, but the vidual settlements, as well as on liament completed the rehabili- Ukrainian parliament passed a June 22, the day when Germany tation process after the 1 De- bill sponsored by President Leo- attacked the USSR. cember 1991 referendum by es- nid Kuchma. The lyrics of the With the current government tablishing the blue-and-yellow anthem consisted of the first promoting communist symbols, banner as Ukraine’s national verse and the refrain of Chubyn- we can only hope that the more flag on 28 January 1992. sky’s song. However, the first patriotic football fans will be Settling on the national em- line was slightly modified: rooting for our national team un- blem turned out to be more “Ukraine has not yet perished, der blue-and-yellow, rather than complicated. Most MPs agreed nor her glory, nor her freedom” red, flags. № 11 (34) July 2012|the ukrainian week|39 culture & arts|history on film Going Home to Find Yourself Film director Taras Khymych talks about documentaries and his film about Zakarpattia in 1919-1939

Interviewer: n early March, Taras Khymych UW: How did your study in the US okay, but limited. I was told that I Oleksandr presented his documentary Sil- affect your professional growth? had to start thinking out of the Horyn ver Land, The Chronicles of – When I went to college in box, to loosen my mind, to shed ICarpatho-Ukraine 1919-1939, Minnesota, students often met my insecurities to fully discover in Uzhhorod, Lviv, Ivano-Fran­ with teachers. They explained to myself. That’s when changes be- kivsk and Ternopil. Critically ac- us what problems we had with gan in my work. claimed in Western Ukraine, the creativity. I was surprised when film got a standing ovation from they told me that my works re- UW: Why did you go back to the audience in Zakarpattia. The vealed a psychological problem Ukraine after your experience as Ukrainian Week talks to one of and a sort of insecurity. That was a designer in the US? Didn’t you the most innovative directors in when I began to change com- want to continue your creative the Ukrainian film industry. pletely. All I had done before was career abroad? 40|the ukrainian week|№ 11 (34) July 2012 history on film|culture & arts – My stay in the US encour- That’s what they taught us at col- take a deeper insight into what aged me to return to Ukraine. A lege: to describe things and put was going on in order to under- creative person should not be tied them in a structure. Documenta- stand the developments better to circumstances, life troubles or ries should be based on a careful and present them to the viewers some sort of planning. If I had fol- HISTORICAL design of a variety of information, in a comprehensive format. The lowed the main stream, I would no BACKGROUND that’s the foundation of a docu- film taught me how to fit this huge longer be an artist. True artists The filmSilver mentary for me. The genre is a amount of diverse information should be in a state of permanent Land shows the great opportunity to practice sys- into one framework. searching and development. The interwar history temizing information. It’s inter- The film has three lines. The of Zakarpattia as best option for me at that point part of Czechoslo- esting to combine creative details first is the dry unemotional part: was to go back to Ukraine and re- vakia. From 1919 with facts and layer one over the the facts presented by a narrator vise my creative capacity, in other to 1939, Zakar- other. The way I see it, a docu- and visually backed by archival words, find myself at home. I had a pattia experi- mentary has the ground, let’s say sources. The second is a live part promising job back in the US, and enced a national historical background, on which I that is comprised of stories from still I made this decision. Ukraine and cultural re- can layer my artistic interpreta- eye witnesses and participants of is developing while the US is al- naissance that tion. This ground somehow brings those historical developments. It ready developed in all respects. peaked in the au- an artist together and inspires creates the effect of presence in This is what American teachers tonomous Car- him to search for, reflect on, and conversations with them. The used to tell me, by the way, that I patho-Ukraine in shape his artistic vision. Docu- third is the artistic side, aesthetic the post-Munich would have better chances to im- Czechoslovakia mentary is not a popular genre; it and emotional. It is based on as- plement my creative ideas in Agreement. After is oriented at a specific segment of sociations, not fully confirmed Ukraine. the federation the audience. Documentaries are and supported by documents. It collapsed, the much more intense than popular largely contains artistic interpre- UW: You started your career as a Carpatho-Ukraine films; therefore people often need tation of historical developments. painter. Were you successful? ‘Seim’, the parlia- to watch them over and over It helps people feel the atmo- – I arranged a few art shows ment, declared again. sphere of that time, see the rou- when I studied in Ukraine and its independence tine, the clothing and the lifestyle even sold some of my paintings and approved UW: What message did you of those people and hear their lan- abroad. I entered a US college as a Ukrainian na- want the audience to see in guage. It’s sort of a soft version of tional symbols, painter. But everything changed yet no country in your Silver Land, the the first two parts that makes it when I tried shooting videos in the world recog- documentary about historical easier for the viewers to digest the 1994. I felt right away that cam- nized the newly- developments in Zakarpattia film as they relax before the new erawork, together with the sound declared republic, before World War II? flow of structured information. and 3D artwork, is a complete art while neighbour- – It was an exotic story for Yet, it also sharpens emotional that expands creative limits. ing Hungary me. I knew nothing about it be- perception of the film. The film launched an oc- fore I began working on the film, gives the feeling of the drama that UW: After working with many cupation of Car- and I was impressed by the devel- the Silver Land, a poetic name for Ukrainian bands, what can you patho-Ukraine. opments in Zakarpattia at that Zakarpattia, went through. say about the music video The resistance of Carpatho-Ukraine time. We’re talking here about a industry in Ukraine? defenders was phantom country that emerged UW: Actors and historical – I can’t really talk about spe- the first armed out of the blue and disappeared characters speak six languages cific formats. A music video is a revolt against the from the map of Europe as unex- in the film. Is this an attempt short film for me. I started mak- Hitler coalition’s pectedly as it had appeared there. at political tolerance or the ing them right after I returned to plans in Central I felt like a foreigner when I historical diversity of the Silver Ukraine. I had a dream to shoot a and Eastern Eu- worked on the film, as if I had dis- Land? video with a Ukrainian band. My rope. covered a new part of the world. – I’d say it’s the latter. To feel friends helped me. They were also This tiny place went through ex- the true spirit of Zakarpattia, you interested in music video making tremely intense and turbulent have to hear the languages spread and we created a concept for the changes over 1938-1939. It was among its multi-ethnic popula- video of Broken Wings by Skri- hard to fit them into one logical tion. At that point, Carpatho- abin. I really like working in dif- frame. This encouraged me to Ukraine was inhabited by various ferent genres, including film mak- nations and peoples. We wanted ing. The basic principles of music BIO to show that in the film by por- video and film making are similar: Taras Khymych traying the common human fac- you have to keep the audience in- Ukrainian painter, film and music video director was tor rather than showing a conflict terested all the time. Content is born in 1976 in Lviv. Taras Khymych went to Lviv Academy of of one nation against another. what matters in a film while aes- Arts. He received a Bachelor of Fine Arts degree at the College People from one village would go thetics is what matters in a video. of Visual Arts, Minnesota, and later worked as a free-lance de- to different churches yet helped The latter is a format that plays signer in the US. In 2001, he returned to Ukraine to work as a each other in the meantime, ap- with associations, images and im- music video and documentary film director. He has directed preciating a good attitude to work provisations rather than an ad for over 50 music videos for some of the top Ukrainian bands, in- most of all. I think this could be cluding Skriabin, Tartak, Haydamaky, TNMK, Fleet, a band. Motor’rolla, The Telnyuk Sisters, Ot Vinta and many others. His a good model for the modern documentaries on some fragments of 20th century Ukrainian Ukraine. Back then, ethnic ani- UW: What is your approach to history includeUnder the Framework of Destiny: The History mosity was exported by external creating documentaries? of the 1st Ukrainian National Army Division, 1943-1945; The regimes who were preoccupied – Structure is what really mat- Golden September. The Chronicles of Galicia, 1939-1941, and with the idea of conquering other ters, apart from the creative part. Silver Land. The Chronicles of Carpatho-Ukraine, 1919-1939. territories. № 11 (34) July 2012|the ukrainian week|41 culture & arts|cartoons Ukrainian Hercules

Ukraine’s funniest folk tales are retold in a new cartoon series called The Adventures of Kotyhoroshko and Friends

Interviewer: he project evolved from The a series or did you already have writer Vadym Shynkariov – a Yaroslav Magic Peas, an extremely the series in mind and The Magic godsend, really – and great car- Pidhora- popular Ukrainian cartoon of Peas was the first episode? toonists Oleksandr Lavrov and Hviazdovsky Trecent years. It tells the story – The Magic Peas is not re- Mykhailo Tytov. They all have a of Kotyhoroshko, a boy who is mag- ally a pilot project. It’s a com- great sense of humor, know the ically born out of a pea pod to par- plete film with a beginning and art of comedy and are willing to ents who have always wished for a an end. I added the phrase work with ethnographic themes. child. He goes on to slay an evil sor- “There is still much evil left in Take Kotyhoroshko, Vernyhora cerer and become a hero. The the world and we’ll meet again the mountain sorcerer, Verny- 13-minute long cartoon was fin- and again” to the final scene as dub the tree sorcerer, and Verny- ished in 2008 but was leaked onto the characters were departing vus who can turn water into the Internet before being released after their adventures, although whirls with his moustache. They on the 8-disk Collection of Modern I didn’t have anything particular are all strongmen, giants, leg- Ukrainian Cartoons 2000–2008. in mind. I just needed a nice endary super-heroes, and still Eventually, it became one of the ending to the story. And when Verhyhora’s wife gets the better most viewed Ukrainian short car- good friends say goodbye, they of him. The Straw Calf is an ea- toons on the web. Yaroslava definitely need an excuse for an- ger dancer in one of our episodes Rudenko-Shvedova, creator of The other meeting, so I came up with that sheds golden hey and coins Magic Peas, seems indifferent to its the battle against evil. A little when he dances. When Pudia, a sudden popularity. A true cartoon- later we found that we’d come young giant, steals the Straw ist, she remains fixated on her work up with so many plots and sto- Calf, Kotyhoroshko and his alone rather than the honors it has ries for The Magic Peas that we friends end up making new straw received. Three seasons of The Ad- had enough for an entire series. toys for him in exchange for the ventures of Kotyhoroshko and Straw Calf. Our approach was to Friends will be produced, each with UW: Your plans look optimistic find eccentric and funny ele- four 13-minute episodes. these days, don’t they? ments in fairy tales, myths and – No! I have no right to think legends, turning them into inde- UW: So, what came first? Did The that way! I had a fantastic team: pendent stories and presenting Magic Peas inspire you to create artist Eduard Kyrych, script them in animated cartoons. 42|the ukrainian week|№ 11 (34) July 2012 cartoons|culture & arts where we’re going and when we’ll blew it for them, broke the dead- finish it. The project is planned line. It still bothers me. Now, I for three years and we are sup- see a broken deadline as a catas- posed to make four episodes each trophe, nothing less than that, year, starting this year. you can’t imagine how bad I feel about breaking deadlines! UW: The State Film Administra- tion supported and approved UW: The Magic Peas is a great your cartoon. Would you rather success anyway. Yet, half of any have had private funding? Public film’s success is the names of funding in Ukraine means insane those involved. The pilot project red tape… was dubbed by Ostap Stupka and – Everything depends on what Bohdan Beniuk, both popular you do and how you treat your Ukrainian theater and film actors. work. The funds they’ve allocated Will you continue to work with will hardly buy us a fancy life, yet well-known actors? we can use it to create a film, our – It’s too early to talk about own film. I see nothing wrong that now. We’ll talk to the actors with that. Stepan Koval, for in- once we begin shooting. The stance, does what he wants to do work on The Magic Peas was using public funding and he does fun, emotional and our actors a great job. With private funding, were happy as well. Moreover, however, say from a bank, there’s everyone on the set contributed a good chance that you’ll get into so much to it and we don’t want trouble. I used to work with a di- to lose anyone. I think Bohdan rector on Until the Second Ad- Beniuk will want to do it again, or vent funded by a private investor. so it seemed back then. We al- We did a great job, it was fun and ready have consent from Ostap creative, but the bankers didn’t Stupka who dubbed the Hoopoe. like it and the cartoon was soon Foma, leader of the band lost and forgotten. “Mandry” provided the voice of the grandfather. He would just UW: The State Film Administra- turn into a creaky old man as tion’s rules entail lawsuits and soon as he entered the studio. He UW: The series has become a triv- fines for late reports and late made us laugh until we cried. ial form of animation. Stepan project completion. One produc- Vadym Shynkariov did the cat Koval launched his My Country tion company is already under- voice, he did a great job. In short, Ukraine and Professionals series, going this procedure right now. we’ll stick with everyone who is while Oleksandr Bubnov is about Do you think you’ll be able to willing to keep working on it, and to finish the second sequence of meet the deadlines? Four we’ll find the new actors to re- his Sherlock Holmes. How will 13-minute episodes every year is place those who aren’t. the series format make your car- a lot of work. toon different? – A long time ago, when I was UW: How do you see the future of – I’ll let you in on a secret: we young, I worked at the Borys- your cartoon? won’t have a chance to make a bad thenes studio. It was my first job. – You know, everyone has his series the way many others do. I was art director for a video or her role. I’m the director who We were supposed to simplify ev- called Welcome. I took too long proposed the idea. I was en- erything for the series, yet my to draw the backgrounds. I trusted to produce it and I’m try- team is so full of ideas and inven- thought that’s how it worked ing to do my best. The future is tions that we couldn’t help but while people waited for me and up to those who ordered the se- make every episode like a feature relied on me. They wanted to ries. It would look great on film. Moreover, we now know take the film to Cannes. And I Ukrainian TV channels. The Adventures of Kotyhoroshko and His Friends Characters Yaroslava Rudenko-Shvedova Technique Kotyhoroshko is a popular character in Ukrainian is an art director, film director, scriptwriter and The cartoon is made using classical hand-drawn 2D folk tales, endowed with super strength with the cartoonist. She started her career at the Ukrai- animation. The Magic Peas was made in the Ukrai- mace as his key symbol. The name is used every- nian Animation Film Studio in the late 1980s and nian Animation Film Stu- where, from games to furniture, kindergartens worked at the Borysthenes studio beginning in dio style, while the Koty- and a bar in Lviv. the 1990s. She has horoshko series will be There is a bronze worked on French, closer to Disney-type car- statue of Koty- British and Italian car- toons with more detail horoshko in Kyiv and toons and cartoon se- and realistic backgrounds. an oak one in Cher- ries. The deadline for In contrast to The Magic nivtsi. In 1970, the the Kotyhoroshko se- Peas, the Kotyhoroshko Kyiv Science Film ries is winter 2013, so series will involve effects Studio produced a her team completed produced in Adobe After Kotyhoroshko car- all preparations for Effects, while Toon Boom toon directed by Bo- the first season back Animate Pro is used for rys Khranevych. in April. contours and silhouettes. № 11 (34) July 2012|the ukrainian week|43 culture & arts|ukrainian at pixar Children’s Dream Factory Masha Ellsworth, a Ukrainian-born artist at Pixar, talks about Brave behind the scenes and her path from a Chernihiv college to one of the world’s leaders of animated cartoons

Interviewer: worked as a costume supervisor UW: There are a lot of Ukrainian- Yaroslav Pidhora-Hviazdovskyi on the short film Play by Play af- born artists at Hollywood compa- ter that. How did you manage to nies. Do you keep in touch with ou need to be brave to send combine all these different tasks? each other? your CV and portfolio to – Pixar has a studio university: – Yes, there is one Ukrainian- Pixar. Ukrainian-born Ma- all employees can take part in dif- born guy at Pixar and sometimes we Yria Martynenko, now Ma- ferent projects in their free time. talk. But studio employees don’t have sha Ellsworth, did just that. On 21 Play by Play was one of them. It’s a much time to talk. There is a large June, Pixar released its new fea- real short film, not an animated Ukrainian community both in San ture cartoon Brave, whose team cartoon. I had a chance to work as Masha Francisco and in Sacramento, so included Masha. The Ukrainian a costume designer and I took the Ellsworth was there are many opportunities to stay Week talked to her in Sacra- opportunity. It had nothing to do the computer in contact with our na- mento, California. with my main job. But there is hair stylist on tional, cultural and lan- nothing strange about it. I’m a cos- Brave, a recent guage community, if UW: The only Masha Ellsworth tume designer at Pixar, too, only I animated only you have time. I Google finds is a wedding pho- design computer costumes, color feature have a lot of Ukrai- tographer. Imdb.com says just a characters and their clothes, and by Pixar nian friends in the few words about you. Could you give them texture. Logically, I US and we often please tell us more about your- wanted to work with real cos- talk on Skype. self? How did you end up in the tumes, and every day turns out dif- Sin­­ce I’m done artistic paradise of Pixar? ferent even though I deal with with all my – I grew up in Chernihiv, clothes every day. Everything de- work on Brave, Northern Ukraine. I went to the lo- pends on what I’m working on. with the cos- cal technical university and moved When I worked on Brave I made tumes com­­ple­­ to a Utah college after my second Princess Merida’s hair, and hair in ted and all the year there. I graduated with a de- an animated cartoon is always a h a i r gree in computer programming technical challenge. done, I and fine arts. Then I sent my port- can spend folio to Pixar just like thousands of UW: Cartoons are teamwork. mo­­re time other applicants and they chose What individual trace do you add with them. me for an internship. I worked as to it? Is it even possible to add a But I’ve al- an intern for four months and they personal touch? ready started continue the training if they like – Of course, it is! When artists working on you, and then they hire you if you give us sketched characters or the the new Pixar continue to work well. That’s what main design of the setting on pa- cartoon sched- happened to me. per to make them into 2D or uled for 2014, 3D images on the computer, The Good Di- UW: Your bio says that you used we have to make sure that we nosaur by to be a technical intern on Rata- comply with the cartoon style. But Bob Peter- touille, a cartoon all Ukrainian the hand-drawn sketch does not son. kids are in love with. How did you have as many details as the car- get to work on the project? toon requires and that’s where you – It’s very simple. I sent them start being creative. Everyone my student video portfolio. When I wants to bring their ideas to life. I was still in college I worked on have so many ideas! But I’d like to many short cartoons, including deal with the company’s technical Pajama Gladiator. Released in progress. I mean, I’m more inter- 2008, it was directed by Glenn ested in the speed of 3D graphics Harmon and won several festival and finding solutions to make our awards. It tells the story of a little work quicker and stop doing what boy fighting the monsters from his computers can do for us. All this dreams… will make it much easier for the artists to create their designs. The UW: Two years later, you worked technical aspect is also creative on Up as a character colorist, and and artistic for me. 44|the ukrainian week|№ 11 (34) July 2012 navigator|reviews & event calendar Films Brothers Come to Life in the Carpathians Brothers, a project presented three years ago at the 1st Kyiv International Film Festival, only began filming in 2011, when producer Ihor Savichenko started work on it. Director Victoria Trofimenko has currently completed spring-summer filming in the Carpathian Mountains Author: he Carpathians. The 10,000 man’s face, even without the beard, sent, which she really liked. “There Yaroslav year old Synevir lake. 22nd day which he grew over the last four is much in the screenplay that coin- Pidhora- of filming. 12 noon. Victoria months, is as innocent as that of a cides with my experience,” com- Hviazdovsky Tlooks intently at the figure of a child. To add to this, he’s not even an ments the actress. “As soon as I very tall, bearded man who, stand- actor, he’s a painter. read it, I felt that the heroine was ing in a boat in the middle of the “Several years ago, when I was similar to me. But you can’t play lake, is rowing towards her, using filming a short film,” recalls Victo- yourself. It is only possible to reveal one oar. The water is extremely cold. ria, “he accidentally found himself things, that you don’t reveal in ev- On the lakeshore – it is also barely in the frame. I kept him in mind. eryday life … Then my husband more than 10°, in addition the wind After a year of searching for some- read it, and he said that he couldn’t chills to the bone. This figure, Saint one for the role of St. Christopher, I imagine anyone other than me in Christopher, is a reflection of the understood that it had to be Yuriy.” the role of the author.” It’s interest- film’s heroine – an author, who acci- True, rather than acting, mime and ing that Natalka Polovynka, even as dentally found herself in an ancient words, the director required plas- an actress of the Les Kurbas The- forest, between two Hutsuls united ticity from him. Natalka was an- atre in Lviv, is better known as a by a woman, a child and hatred. He other perfect choice. Her face and singer. The issue is not even about personifies the sense of confession. discreet demeanor appear to be her wonderful voice, but in its You would think that it would be im- copied from Lindgren’s story. It’s mood, which somehow wonderfully possible to find an actor, who could interesting that the actress herself reflects the tone of Lindgren’s story portray the image of a saint. But never read this work, even when and Trofimenko’s screenplay. So it’s Yuriy Denysenkov is suited for the she was approached by Victoria no wonder that the director pro- role. Confirming this is seditious Trofimenko in December 2011, and posed that she writes the score to and subjective, but the 27-year old read the screenplay she had been Brothers …

Events 29 June – 30 July 3 August, 7 p.m. 3–5 August Andriyivskyi Uzviz G3 Europe 2012 Tu Stan 2012 festival Between buildings No. 30-34 Ukrayina National Palace Tustan fortress (Kyiv, Andriyivskyi Uzviz) (103, vul. Vasylkivska, Kyiv) (Urych, Skole Region, Lviv Oblast) The concept of this new music August will start with a gift for the The historical and cultural festival will festival is to create urban space fans of instrumental music. Kyiv’s once again take place near Tustan, filled with harmony, art and interac- biggest concert hall will host a an ancient Rus defense complex the tion. The programme will include guitar show with the participation name of which means “stop here” a variety of styles from traditional of the world’s best guitarists of in English. Tustan is an architectural folk rock to cabaret, light and our time. Joe Satriani started the monument dating back to the 9-13th experimental electronic music. tradition back in 1996, joined later centuries. The festival will focus The stage will welcome Shooping by Steve Vai. This duo performs with on medieval Ukraine. The bravest Hour, a Ukrainian-Serbian lounge a new guitarist every year. This year, guests will have the opportunity to project(photo) ; Qarpa with its lead this will be Steve Morse. For top attack the fortress, practice knife and singer-writer; guitarists, playing spear-throwing, Asia Tengri, a in G3 is not simply horse riding and folk jazz project; performing on wrestling. In the GrozovSka one stage, but evening, the Band cabaret giving the audi- audience will see project; singer ence the pleasure a show by the The- and songwriter of real music. ater of Shadows Serhiy Pidkaura, and a laser show. Illaria and many more. 46|the ukrainian week|№ 11 (34) July 2012 reviews & event calendar|navigator experience and more than 60 The Carpathians are unbeliev- films. Post-production, is when ev- ably beautiful. As everyone knows, erything can be fine-tuned – this beauty has a price, and quite a voice-overs, adding sound effects high one, at that. Natural condi- and music, etc., as well as the edit- tions regularly put the brakes on Brothers Come to Life in the Carpathians ing itself. Not for nothing did Stan- the wheels of Brothers, says pro- ley Kubrick have great respect for ducer Ihor Savichenko. “Roads, Overall, Brothers is a deep, film editing. Being a perfectionist, rain, electricity – these are the dramatic and psychological story he recorded a vast number of main difficulties of filming,” – he with a very picturesque back- takes. But he had millions of dol- explains. “We built a road to be able ground and a screenplay with a lars at his disposal! The budget for to get the equipment to the film complex composition. In addition Brothers was UAH 16 million. And set – it was washed away by the to this, the language of the film is if the takes had been recorded onto rain. We secured it with stones and largely the local Hutsul dialect – film, the project would have closed rocks – the same happened again.” writing the literary basis for the down because it would have gone The crew promises to com- film, Victoria Trofimenko moved bankrupt. plete the film by spring 2013. the scene of events in Bumble-Bee Honey, the story by Torgny Lind- gren, from Sweden to the Car- pathians. When adapting the story to the Hutsul way of life, Victora was not helped by a lin- guist or a folklore specialist, but a regular speaker of the living local dialect, Oleh Hnativ, leader of the Perkalaba band from Ivano- Frankivsk. He was born and bred in Verk- hovyna, so Hutsulshchyna (the Hutsul region) is in his blood. In two-three weeks, he adapted Vic- toria’s text, then recorded his read- ing of it, so that the actors could learn what for them, were the un- usual sounds of the words. But not everyone was able to do so. For ex- ample, Viktor Demertash was un- able to recreate the authentic local dialect, in spite of his 30 years of

3–5 August 4 August, 7 p.m. 17–19 August Banderstadt 2012 Madonna Zakhid Lesya Ukrainka Park Olimpiyskiy Stadium Sunny Lane resort (Lutsk, Hlushets St.) (1, Fizkultury St., Kyiv) (Rodatychi, Horodok Region, This year’s festival of the Ukrainian Finally! The dream of zillions of Lviv Oblast) spirit celebrates the 70th anniversary Ukrainian fans will come true For four years now, Ukraine has of UPA, the Ukrainian Insurgent and they will see the legendary hosted this music and art festival. Army. Organizers say the festival Madonna with their own eyes. The The festival confirms the existence is aimed at promoting all things American pop-diva is bringing an and immortality of the Ukrainian Ukrainian, including its history incredible, unprecedented show. culture over and over again. The because young people should know As part of her world tour, Madonna festival will feature many bands, about the nation’s heroes. The will present songs from her new including Tin Sontsia (Shadow of Ukrainian band TNMK is announced album MDNA released in March the Sun), Atmasfera, The Vio, Liapis as the headliner. Other performers 2012, as well as favourite hits. The Trubetskoi, Tartak, Boombox and will include Tin “Material Girl” is others. Guests, Sontsia (Shadow going to perform in turn, are ex- of the Sun) and in 26 European pected to bring Kozak System cities and visit along a good (ex-Haidamaky). South America mood. Alongside the mu- and Australia for sic programme, the the first time in festival will offer a 20 years. stage for literature readings. № 11 (34) July 2012|the ukrainian week|47 navigator|rivne 10 Emails from Rivne

Oleh Kotsarev; photos: Anatoliy Byelov

The Ukrainian Week

Underground water

Every city qualifying as old has to have a legend about a hidden underground river, whether it actually has one or not: Lviv, Kyiv, Paris… The story is even better if it flows beneath a local theater. I was told about one such river in Rivne as we walked through a corridor under the stage of the Rivne Music and Drama Theater(photo 6) surrounded by complete silence, a few sounds from the rehearsal on stage barely breaking through. Drafts would carry the scent of tobacco from time to time from endless rooms whose purpose no one knew. A sand box was in the middle of one room. A poet named Mark who brought us all there kept gesturing to us to keep quiet. He stopped us in front of the stairs and said: “Here is a river buried beneath the earth, right under the theater.” Later, when I mentioned the river to locals, they seemed surprised. The Streets of Rivne, a book about the city, does not make it clear if that was where the river once flowed. But I choose to believe in it; I like the thought of a Volyn Styx under the foundation of the grey Stalin-era theater. While vaudeville passions overwhelm the stage, unknown monsters swim in the murky waters below while the ghosts of actors fish … Almost forgot… The theater was the first place I saw a bathroom where the light is always on.

48|the ukrainian week|№ 11 (34) July 2012 rivne|navigator

Rivne’s architecture: frozen music of the soviet and pre-soviet eras 1

In terms of architecture, Rivne is your typical soviet city(photo 1). It has many interesting buildings that survived World War II. The victims of th20 century “progress” included a beautiful palace of the Liubomyrsky magnates . Otherwise, the city is full of earthy beige “boxes” and well-maintained private houses. Yet, this doesn’t mean that there’s nothing to see in Rivne. Petliura Street is cute. Earlier, it was called Aptekarska, Pharmacy Street (just like a small street in Kharkiv where I was born and grew up ) with nice secessionist buildings of the early 20th century, including the Ulas Samchuk Literature Museum. The same street hosts a Puppet Theater (photo 8) built during soviet times with scary statues of fairy tale characters adorning the façade. There is also the wooden Church of the Assumption on Shevchenko Street (photo 3) built in 1756. Rumors have it that Ivan Gonta, one of the leaders of Koliyivshchyna, an armed rebellion of Cossacks against the Polish- Lithuanian Commonwealth, once prayed there. Some features of the church resemble the shape of the Holy Resurrection Cathedral built almost 150 years later. The church also served as the inspiration for the name of the city’s main street—Soborna, or Cathedral Street. The front part of the neo-Gothic Church of St. Anthony built in the late 19th century hosts organ concerts(photo 5) while the crypts—the church dungeons—house an 3 Internet café. The good thing is that the church was not ruined, even if its towers are now half their original height.

2

The Crocodile

In addition to its marvelous willows, ponds, and out-of-place sea gulls, Rivne’s “hydro park” has astonishing sculptures. They resemble fairy tale characters gone wild and left to the elements. The Crocodile (photo 2) is king here, guarding one of the ponds. Local gopnyky (young delinquents) can be found drinking beer in his shadow . Beside it flows the perfectly normal, non-legendary river Ustia flanked by a children’s mini railway (photo 11). It has just two stations: Partisan Station (endowed with a historical double meaning) and Lake Station. Rivne/Rovno

Once an important center for the UPA—the Ukrainian Insurgent Army—Rivne is now one of the most de-sovietized oblast centers. Its streets named after Bandera and Petliura, leaders of the Ukrainian liberation movement, are a nightmare for proponents of the “Russian World.” There is even a monument to Ulas Samchuk, a non-soviet writer of the 20th century (photo 10), which is a rarity in Ukraine. And no monuments to soviet leaders! Rivne almost perfectly fits the stereotypes of “pure Western Ukraine.” Meanwhile, the city has a proactive and visible Russian-speaking minority mostly composed of former soviet military servicemen and their children, who are far from the national democratic views common in the area. Even during the interwar period under Polish rule, the city used to have a Russian preparatory school.

№ 11 (34) July 2012|the ukrainian week|49 navigator|rivne

Slightly surrealistic

I found two surrealistic spots in Rivne (in addition to the crocodile ). The first one is a coffee shop called Salvador Dali(photo 4). There, coat hooks look like forks, a palette adorns the ceiling, the downspouts resemble serpents or fish, and the entire decor is softly surrealistic. Salvador Dali often hosts concerts and photo exhibitions. The second surreal spot is Rivne’s complex of bazaars overflowing with commerce. Two markets seem to swallow up half the city, one almost flowing into the other. Another half of the city is dominated by an extremely long underground passage with kiosks and boutiques. Rivne’s location at the crux of a huge bundle of highways is probably the reason for its booming bazaars.

A night at the museum 4

Besides Salvador Dali, Rivne is home to the Hobby Pub, a mix between a bar and a museum- café. The walls are full of money from different eras and countries, postage stamps, posters, photographs, and other antiques. Sometimes the pub hosts concerts. As for real museums, the city has plenty of them as well, from the Local History Museum to the Museum of Amber. Rivne also has an art gallery sometimes dubbed “the smallest gallery in Western Ukraine” or “the narrowest gallery in Europe.” Officially, it’s called “The Crevice.” In fact, the gallery is in an extremely narrow room that looks like a crevice. It most often hosts contemporary art shows, but also occasionally hosts BookCrossing.com events.

5

6

50|the ukrainian week|№ 11 (34) July 2012 rivne|navigator

Re: Underground water 7

Some say that Volodymyr Korolenko, a well- known Ukrainian-Russian writer, wrote about Rivne’s underground corridors in his book Children of the Underground, although others say the same about Zhytomyr.

Re: Re: Underground water

Northern Ukraine is full of rivers, lakes, springs 9 and swamps (photo 7). This must be the reason why Rivne is home to Vodnyk (boatman), a university for water and natural resource management transferred from Kyiv to Rivne in 1959. It has students from all over the country, 8 while the locals mostly go to Ostroh Academy, one of the oldest colleges in Ukraine, for more popular degrees, often in the humanities.

The name? What’s it to ya?

The city name translates as “even” or “flat,” which would seem to be self-explanatory . Yes, it does come from the flat area it is located in. P.S. Another version is that the city name comes from the word riv (“moat”), suggesting that it was once protected by a moat. P.S.S. And there is one more version. According to legend, a landlord owned 99 villages. He 11 was one village short of a hundred and called the 100th village Rivne (“even”) when he finally got it.

10

Not the exotic north!

Even though Rivne is a city traditionally associated with the woodland region of Polissia, don’t expect to come across any exotic northern swamps and woodlands there. It may have original wooden architecture, but it resembles the Volyn region more than anything else. You’ll have to go farther north to find exotic Polissia. The city has no visible traces of Polish or Jewish culture even though these two ethnicities represented a majority in the city for many years. Nor does it show traces of once having been the capital of the German occupied Reichskommissariat Ukraine during World War II. For that, you’d have to rummage through history books, encyclopedias and Google. Enjoy your trip to Rivne!

№ 11 (34) July 2012|the ukrainian week|51