International page eu ambassador teixeira page Ivan Marchuk: page opinion on political on scandalous trials a great painter inspired persecution in Ukraine 10 and the association agreement 16 by his homeland 42

№ 9 (21) october 2011 Europe must act now!

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|contents briefing focus POLITICS Europe Must The Collapse of Justice Damon Wilson Act Now! Lawyer Valentyna Telychenko on how Ukraine can The triangle talks about the cases against Yulia improve its image of Ukraine, Tymoshenko, Leonid Kuchma, Russia and the EU and Oleksiy Pukach who killed journalist Gongadze 4 6 10

David Kramer Steven Pifer Tango for Two and Freedom on official Kyiv Jose Manuel Pinto Teixeira House: We running out of on how the scandalous will continue room to maneuver trials in Ukraine can affect to tell the in the international Association Agreement truth arena prospects 12 14 16 neighbours economics Time to Shove Off Greek Consequences War and Myth The Soviet Union Ratification of the The real roots of was undermined by Association Agreement Ukraine’s energy stagnation and a sense of and FTA will depend dependence go back hopelessness. Is the same on whether political to the oligarchs thing happening again? repression stops 18 22 24 investigation society You’d Rather Be Dead Tour de Ukraine Who Is Scared While pharmaceutical Ukrainians switch of Ukrainian Hackers? groups fight for the to bicycles, pushing Ukrainian market, Ukraine’s supply local authorities to cybercriminals in of vital medicines is develop the country’s Western Europe running critically low infrastructure 28 30 32 persona history culture & arts The Quantum of Wisdom No Unity, The Poems Vladyslav Olkhovsky, No Statehood of Passion Doctor of Physics and Discord among the A rhymed Mathematics and elite in the 14-15th appeal Master of Theology, centuries led to the for society on attitudes towards breakup to end its religion today of the Rus Kingdom indifference 34 36 40 NAVIGATOR the REGIONS Success Against The Whisper Sublime and Earthly All Odds of the Carpathians Things Ukrainian artist Ivan Shypit waterfall: Miners, gunpowder Marchuk on the a pilgrimage and portraits: a site British Top 100 Living destination for specific installation Geniuses flower children and from Cai Guo-Qiang thrillseekers in Donetsk

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The Ukrainian Week № 9 (21) October 2011 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 Roman Tsupryk, Chairman of the Editorial Board Ordering number: 11-0821. Print run: 15,000 Serhiy Lytvynenko, Editor-in-Chief, The Ukrainian Week Sent to print on October 4, 2011 Natalia Romanec, Editor; Anna Korbut, Translator Free distribution № 9 (21) october 2011|the ukrainian week|3 briefing| 1 September 8 September 11 September The new school year starts For the first time, Vitaliy Klitschko wins against with scandals: parents Ukraine demands a fee Tomasz Adamek, Poland, protest against the closing from a Russian assault defending his WBC world cham- down of schools; students ship for crossing the pionship title lack textbooks Kerch Channel

Quotes Bronislaw Komorowsky Europe Must ActN ow! warns Ukraine krainian authorities appear to have sian scenario where the Kremlin has the op- At a meeting with come to terms with Russia in energy portunity for a complete takeover of the Viktor Yanukovych, relations, which possibly include pipeline. For Ukraine, however, the former the Polish President is not much better than the latter, given the states that the trial Ueconomic concessions in return for against Ms. Tymosh- Russian political support. The Belarusian long-term relations between Gazprom and enko could become experience suggests that such an exchange some European gas companies. a barrier “on Kyiv’s leads to loss of sovereignty and succumbing The Ukrainian Week has suggested that path to European to Russian influence. However, this scenario the resolute declarations of Ukrainian offi- integration” might be averted if the EU acts promptly cials might be merely a cover up of the in- and resolutely. tent to solve the gas price problem in the It looks like the strained Ukrainian-Russian usual corrupt manner. Even at the height Viktor Yanukovych relations, which some have already labeled a of the information war, Premier Azarov is ignored gas war, are over. Having met with Mr. Pu- spoke of the possible granting the Russians “The publishing house is the one tin and Mr. Medvedev, the Ukrainian gov- access to the entity established on the basis to deal with allegations ernment looks much more relaxed. Yet, even of the current Ukrgazvydobuvannia, Uk­­ against the author or rainian gas extraction company. It is likely his “literary slave”,” the tiny bits of information, leaked to ex- says the Association perts after the meeting, hint at a gas capitu- that the “formats” of the consortium sur- of Austrian Writers lation rather than war. Politicians are once rounding the gas transit system are also that refuses to sup- again discussing scenarios for the creation from this sphere. port Mr. Yanuk- of a consortium that will manage the Ukrai- The habit of Ukrainian officials to rely on ovych’s book nian gas transit system. Russia has appar- their own arguments alone and mistrust al- ently accepted the trilateral format of the ternative information has played a bad trick consortium rather than the bilateral Belaru- on them. It looks like Russian leaders have managed to play two scenarios. Firstly, they VIKTOR, THE GANGSTER used the “pressure and relax” scheme. Mos- a new character cow’s hard line has been driving Mr. Yanuk- in The Simpsons ovych & Co desperate. When the pressure A brutal bandit called suddenly weakened at an informal meeting Viktor is a new in Zavidovo, the official residence of the character in one of Russian President, Ukrainian authorities the episodes. Viktor felt emotionally inclined to reach a “com- does not know how promise.” Secondly, Ukrainian leaders seem to use the Internet and insults his wife scared. Gazprom launched yet another cam- paign to promote its South Stream project and signed a series of documents with Euro- pean companies shortly before the Ukraini- DENYS OLEYNIKOV an-Russian negotiations. This does not wants to move to Latvia mean that the prospect of building the pipe- The owner of ProstoPrint is hiding line bypassing Ukraine is inevitable. Yet from persecution by the government. He says many Ukrainian officials became concerned he is going to ask about “what to do” with the local gas transit for political asylum system. in Latvia. Mr. Ol- If these trends prevail, the Russian Federa- eynikov is currently tion will make a huge leap towards gaining in Croatia control over strategic sectors of the Ukrai- nian economy. Once it gets control of the pipeline and gas supply to Ukrainian enter-

The month 4 September 1991 6 September 1891 11 September 2001 in history National blue and yellow Ivan Pylypiv and Vasyl Al-Qaida terrorists attack the flag rises over the Verkhovna Yelyniak from Nebyliv village, Twin Towers in the USA Rada of Ukraine Ivano-Frankivsk Oblast, start Ukrainian migration to Canada

4|the ukrainian week|№ 9 (21) october 2011 |briefing 16 September 20 September 22 September 27 September 11 miners are res- Organized crime police MPs pass a law People in Donetsk cued from the col- block servers of the compa- banning the ad- protest “against lapsed Sukhodols- ny that produced T-shirts vertising of ciga- the anti-popular ka-Skhidna mine in with the print: “Thank You, rettes in virtually government” Luhansk Oblast the People of Donbas…” all mass media prises, Russia will be able to create an envi- lease Tymoshenko is still an option – how- numbers ronment for their operation, whereby the ever she must “publicly admit to her mis- establishment of joint ventures, at which takes” and “compensate Naftogaz for its Gazprom earned more than Ukrainian assets will be handed over to Rus- losses” worth nearly USD 200mn. Europe, USD 7bn sia, will be inevitable. in turn, offered sticks and carrots. Mr. Yanu- in Q1’11 on gas supply to FSU After Mr. Putin officially announced his in- kovych was sitting next to an empty chair countries, i.e. 119% more as tent to become president of the Russian intended for Belarus's Mr. Lukashenka who compared to Q1’10 Federation, the pressure on Ukraine is only is boycotted by the EU leaders. Other than likely to grow. The former and the future this warning, Ukrainian leaders had some president of Russia does not tolerate senti- pleasant incentives to change their ap- Experts estimate budget losses ments: neighbouring countries must serve proach: the EU will provide EUR 1.9bn. to caused by anti-competitive actions of as a resource for his economic and geopoliti- fund the projects of the Eastern Partnership Livela oil importing company at cal ambitions. Meanwhile, Ukrainian au- until 2014. UAH 5bn thorities seem to have something else on Meanwhile, it has been planned that Ukraine The Antimonopoly Committee turns their minds. and Russia will be finalizing the Zavidovo a blind eye to the violator The temporary relief from Russia has al- agreements in October, which means that it ready had a palpable impact on Ukraine’s could be a critical month for turning Ukraine domestic politics. Apparently, Ukrainian away from Europe. Russia is in a rush to Ukraine can lose authorities have been feeling confident implement this scenario - it appears that in enough to insist on political repressions. its own relations with the EU, the period for 20% As a result, Yuriy Lutsenko, who is seri- the provision of gas in violation of European of transit gas after Russia launches ously ill, remains behind bars. The Ty- rules is coming to an end. EC representa- Nord Stream moshenko case no longer intimidates tives have searched Gazprom subsidiary of- them either: the Prosecutor General de- fices in Germany and the Czech Republic mands a tough verdict. Another bold move upon charges of price manipulation and 1,248 people was the draft law to decriminalize certain abuse of their market position. Europeans died in car accidents in Ukraine this economic crimes, which was submitted by have long been observing these “special fea- summer, compared to 1,361 over President Yanukovych. It offers to white- tures of business a-la Russia” but it looks the same period in 2010. The total wash actions beneficial for some busi- like they are determined to make Moscow number of car accidents this summer nesses rather than cancel criminal liability play by the rules now. hit 48,000 for politicians under the articles used This shift in the European approach to co- against opposition leaders which could be operation with Russia gives hope that Ukrai- a compromise of sorts allowing the Presi- nian leaders will be forced to fulfill their Ukrainian tax authorities win dent to meet EU requirements to stop re- commitments, as well. Their background 95% and mindset allows politicians in power to pression and save his reputation. The list of court cases. They have collected of actions that could become legitimate if understand a hard line and clear alterna- UAH 26.8mn through the courts this the bill is passed includes the illegal open- tives. year ing or use of foreign currency accounts Ukraine will only be able to avoid turning outside Ukraine, fake bankruptcy, the de- into yet another of Moscow’s puppet and the ceit of buyers and clients, forcing business promoter of its interests on the EU border if Global energy consumption will grow players to conduct coordinated anti-com- the EU insists on keeping political processes petitive practices and so on. in Ukraine within democratic limits, which 50% by 2035 However, sentencing in the Tymoshenko means letting all opposition leaders run in projects the U.S. Energy Information case has been postponed until 11 October, elections and having free elections, as well Administration the date is “approximate”. In the meantime, as having the deals with Russia that do not Ukrainian authorities are trying to bargain contradict EC energy packages, which A Government bill provides for with Europe. Taking part in the Eastern means that Gazprom as a gas extractor can- Partnership Summit in Warsaw on 29-30 not be involved in running the system that UAH 337.5bn September, President Yanukovich is quoted transits its gas. in the state budget for the next year. to have told the participating leaders of EU Planned spending is anticipated at a countries that amending legislation to re- Rostyslav Pavlenko level of UAH 361.6bn

14 September 1871 15 September 1941 19 September 1673 21 September 1920 The first bank The Nazis start the A peasants’ uprising The Council of People’s called Kharkiv Joint mass arrest of Ban- breaks out in Slobo- Commissars introduces Stock Land Bank dera’s OUN members zhanshchyna, Eastern the Ukrainian language opens in Ukraine all over Ukraine and Ukraine as a mandatory subject abroad in schools

№ 9 (21) october 2011|the ukrainian week|5 focus|persecution The Collapse of Justice

Valentyna Telychenko: think about it, he knew what the he be playing and whose reward to expect for this. He made scenario could this be? “We are dangerously close to a conscious decision – to kill the – Oleksiy Pukach gives the man. This was not his first crime. impression of being dull-witted the critical line, when because In June 2000, Pukach, with the and dumb during interrogations of the distrust of the judiciary, help of two policemen reporting in court. His answers are not spe- to him, illegally arrested Oleksiy cific and unclear. He talks about a disputes will be not be Podolskiy, another journalist, lot of things that are not relevant resolved in the courts” drove him into a forest, beat him to the circumstances of the crime and left him to his fate there at thus attempting to evade direct night. This crime was also orga- answers. He mentioned several Interviewer: awyer Valentyna Telychenko nized and performed by him per- times in court that “Georgiy Gon- Alla Lazareva is known as the advocate of sonally. gadze was a spy and was plotting Myroslava Gongadze in the an overthrow.” This is his way of Lmurder case of her husband, U.W.: Do you mean that this was justifying his actions and explain- journalist Georgiy Gongadze. Re- an order from “above” or was it ing his motives. cently, Ms. Telychenko has taken Mr. Pukach’s initiative? Meanwhile, all his colleagues on the role of Yuriy Lutsenko’s – The conviction states that describe Mr. Pukach as a highly and Yulia Tymoshenko’s advocate he performed both crimes on the qualified professional. He holds a in the European Court of Human orders of Yuriy Kravchenko and degree in law and the title of Rights. Leonid Kuchma. In other words, Lieutenant General in the police In addition to her legal prac- according to investigation results, force. A General who used to run tice, Ms. Telychenko has exten- the two of them should be con- criminal intelligence at the Min- sive experience in human rights sidered the paymasters. But it istry of Interior cannot but know campaigns and public activity would be premature to presume that it is the SBU that is the au- ranging from membership in the that this scenario will withstand thority responsible for spies, not Ukrainian Helsinki Human Rights the test of the trial. Moreover, the his agency, and that an order to Union (UHHRU) during the per- verdict in the Pukach case will kill a person is definitely illegal. estroika of the 1980s, to partici- not unveil those who ordered the The investigation has just begun pation in the updating of election murder because their actions will and the interrogation of Pukach legislation. She has written nu- not be analyzed in the given pro- is not over yet. So, I can’t give merous analytical reports on ju- ceedings. There is only one ac- you a comprehensive analysis of dicial reform, human rights and cused – Oleksiy Pukach, and ev- his testimony at this point. the rule of law in Ukraine. In her eryone else is beyond the reach of Clearly, he is doing his best to not interview for The Ukrainian the judiciary. Their cases fall un- get a life sentence. It was the rea- Week Ms. Telychenko spoke der separate proceedings. The son why he agreed to collaborate about the prospects of the pro- only thing clear today is that Mr. with the government the day af- “If the court were ceedings in the cases of Oleksiy Pukach will not escape punish- ter his arrest in July 2009. As a independent it Pukach, Gongadze’s killer and ment as the verdicts on both epi- result, initially he stayed at the would have to Ukraine’s ex-President, Leonid sodes - the murder of Georgiy SBU detention center, which ac- admit that the Kuchma, as well as the impact of Gongadze and the beating of tually does not exist de jure, until convictions recent judiciary reform on honest Oleksiy Podolsky – have recently the verdict is delivered, not at against Tymosh- judges who still exist despite all come into effect. An open ques- Lukianivka detention center. The enko and the odds. tion is whether the cases on those difference in the level of comfort Lutsenko are who ordered the murder will at the two places is striking. The groundless.” THE CASE OF GONGADZE’S reach the court. To this day, the decision to keep Pukach at a le- Valentyna Telychenko KILLER Prosecutor General has been do- gally non-existent detention cen- U.W.: How would you qualify the ing everything in his power for ter, officially known as the SBU actions of Oleksiy Pukach, these people to avoid punish- Department for Ensuring Pre- Lieutenant General of the ment. Trial Investigation was person- Interior Ministry, who admitted ally made by Pechersk Court to having killed Georgiy U.W.: Oleksiy Pukach said that Judge, Inna Otrosh. I believe she Gongadze? Do you see him as former President Kuchma and did this intentionally, exceeding one of the killers or an organizer Volodymyr Lytvyn, his Chief-of- her powers. It is the relevant lo- of the crime? Staff, ordered the murder of cal body of the State Penitentiary – Oleksiy Pukach organized Georgiy Gongadze. But he also System that decides where a per- the murder and personally exe- claimed that by killing the son is to be detained, not the cuted the order to kill Gongadze. journalist, he supposedly saved court. This SBU detention center He was the one who planned and the country from an overthrow. is essentially not a registered fa- thought everything through in ad- What is the truth? Can you trust cility, which is not designated to vance. He had enough time to his testimony? What game could detain people. Staying there is 6|the ukrainian week|№ 9 (21) october 2011 persecution|focus Protection of Human Rights and Fundamental Freedoms qualifies this as an unfair trial.

U.W.: Is it possible to assume that Russian enforcement agencies were somehow involved in the murder of Gongadze? Leonid Kuchma claimed this case was “inspired by a foreign intelligence service”. Has this been mentioned in court? – Indeed, Russian enforce- ment agencies could have been involved in the murder but the conviction does not mention any foreign factors in the case. I must admit that investigators have de- liberately failed to notice or check the scenario regarding enforce- ment agencies. The fact that the proceedings are so secretive basi- cally means that the judges will refuse to interrogate witnesses not listed in the state charges in order to prevent any surprises. U.W.: Who of the witnesses in the Pukach case has been interrogated? What are the possible conclusions? – The witnesses have not been interrogated yet. Even the interrogation of the defendant has not been completed. The prosecuting attorney has listed 13 people as witnesses, of which only one woman has never worked for the police. No wit- nesses have been listed who could talk about the circumstances sur- rounding the ordering of the murder, including those named by Pukach during his interroga- tion. People who knew back in 2000 that Pukach had killed the journalist (he named them) are not on the witness list either, nei- photo: unian photo: ther are the people who helped to not only comfortable for Pukach, and forcing them to hide the release Pukach from custody and it also allows him to secretly com- flaws of the pre-trial investiga- evade criminal liability later in municate with the representa- tion. Of course, if journalists were 2003. With such a list of wit- tives of the government involved present at the hearing, the fact nesses and evidence, verifying his in the case. that the court is turning a blind testimony thoroughly and con- eye to the inappropriateness of firming the motives of the crime U.W.: Why has this case been the investigator would have been stated by the prosecuting attor- classified as secret? noticed by everyone. They are ney will be impossible. This will – Only a small portion of the simply afraid of looking like their force the victims to involve addi- materials has been classified, colleague Kireev (the judge in tional witnesses through their which unfortunately includes the Ms. Tymoshenko’s case – Ed.), representatives. charge sheet. However, the judges so prefer to hide behind closed regard the existence of a few clas- doors. By doing so, they are also THE KUCHMA CASE sified volumes in the case as violating the rights of both the U.W.: Is there any chance of the grounds to hold the trial behind victims and the public to see an diligent consideration and fair closed doors. Apparently, some- open process. Article 6.1 of the verdict in the case against ex- body is exerting pressure on them European Convention for the President Leonid Kuchma? № 9 (21) october 2011|the ukrainian week|7 focus|persecution – After last year’s judiciary THE PROSPECTS FOR consideration at the European reform, which was heavily criti- TYMOSHENKO AND LUTSENKO Court of Human Rights. If cized by the Venice Commission, U.W.: At one point, Yuriy Strasbourg rules that the the judiciary in Ukraine lost all Lutsenko claimed that his case preventive detention of the vestige of independence. The Su- was bursting at the seams. Is former minister is a violation of preme Council of Justice is sup- this true? Ms. Tymoshenko’s the law, which options does this posed to be an efficient tool for lawyers say the same things provide for him as well as his “Keeping Pukach purging the ranks of judges, but it in a non-existent about her case. protection in Ukraine? has turned into an instrument of SBU detention – If the court were indepen- – If such a decision is made, blackmail and pressure against center gives him dent it would have to admit that Mr. Lutsenko will be able to apply them. Moreover, the outcome of a comfortable both convictions are groundless. to the Supreme Court of Ukraine, court proceedings largely depends life and an op- The same thing would happen to which would examine all previous on the efficiency of the pre-trial portunity to com- several other cases, including decisions regarding his arrest him investigation. I have already stud- municate with the one against Valeriy Ivash- and overturn them ied the materials in the case some interested chenko, ex-Acting Minister of against Mr. Kuchma. All I can say, people out of the Defense. The actions listed in U.W.: Yulia Tymoshenko has also is that the pre-trial investigation public eye” the convictions bear no criminal appealed to the European Court. Valentyna has not been thorough enough. Telychenko elements. Some political deci- How soon can she expect an We filed a petition regarding this sions have been made that can answer? Plaintiffs sometimes but it was turned down. Part of only lead to political liability. face a wait of months and even the petition was to initiate crimi- Perhaps, there were some viola- years… nal cases against Volodymyr Lyt- tions of financial discipline. But – The process will still take vyn, Leonid Derkach - the ex- it would be wrong to qualify more than six months, even if the Chief of the SBU and several other these actions as corruption, sin­ Court applies an emergency pro- officials. The answer essentially ­ce the fact of personal enrich- cedure. meant that the court refused to ment have not been found in any start the case. But the investiga- of the above- mentioned cases. U.W.: In your view, what are Ms. tor did not risk issuing an official Tymoshenko’s chances to appeal refusal. We have already filed an JUDICIARY REFORM HAS against the verdict that is appeal against his actions to the probably going to be made in Pechersk District Court for the DEPRIVED THE UKRAINIAN the next few days? second time. In October last year, COURTS OF THEIR – Her chances to overturn the the Prosecutor General’s Office verdict through appeal are next to overturned the decision of one of INDEPENDENCE zero, because the judges of the its investigators on the refusal to relevant court are no more inde- initiate a case against Messrs. U.W.: How can Mr. Lutsenko’s ill pendent than any judge of a dis- Kuchma, Lytvyn, Derkach and health affect the proceedings? trict court. The cassation proce- Eduard Fere (Colonel General of – Apparently, the right of Ms. dure is more promising. A lot will the Interior Ministry, considered Tymoshenko, Mr. Lutsenko and depend on the specific persons to be one of the key witnesses in Mr. Ivashchenko to medical care who will be reviewing the appeal. the Gongadze case. The Prosecu- has been violated. Art. 6 of the If they are judges who have no tor General’s Office had sent nu- Basic Legislation On Health Care concerns about their own past or merous requests summoning him entitles every citizen to medical that of their family members, they to an interrogation but Mr. Fere help and the free choice of a doc- will not be afraid of being black- stayed in coma until his death in tor. They have been denied such mailed, if they are not counting on 2009 – ed.). As far as ex-Presi- choice and in some cases, this has getting housing or any other ben- dent Kuchma is concerned, the already resulted in a serious de- efits anytime soon, so their depen- investigator has already made a terioration in physical health. dence on the government will be decision and has even presented They cannot trust the doctors minimal. the charges. Moreover, the pre- chosen by those in power or the trial investigation is over. As for judiciary. This is because the for- U.W.: Are there such judges in the rest, for over a year now, the mer has sent people who will Ukraine? prosecution has been unable to “The complicity carry out their orders. The pre- – Yes. Moreover, they realize determine elements of a crime in of Russian en- liminary diagnosis for Yuriy that governments change. Today, the actions of the above men- forcement agen- Lutsenko is cirrhosis of the liver. the people in power have ordered tioned people already even though cies in the mur- Such a diagnosis calls for round Tymoshenko’s arrest, and tomor- the law only allows 10 days for der of Gongadze the clock care. As soon as this di- row this will be done to them for this. Given the power of Prosecu- cannot be ex- agnosis is confirmed, the court executing the order against her. cluded.” tor General’s representatives to will have to decide on changing a Therefore, they should not leave Valentyna influence the judges in the Su- Telychenko preventive measure other than Kireev’s verdict in effect. With preme Council of Justice, the out- imprisonment. The European such a pile of violations during come of any criminal proceedings, Court qualifies inadequate medi- proceedings in the Pechersk particularly those involving cal care for someone in detention Court, especially given the extent Kuchma, largely depends on the as torture. to which the charges are ground- position and the intentions of less, the verdict must be can- Prosecutor General’s Office of U.W.: Mr. Lutsenko’s appeal is celled. Clearly, Judge Rodion Ukraine. under extraordinary Kireev realizes that a guilty ver- 8|the ukrainian week|№ 9 (21) october 2011 dict is impossible in this case. But ship between Kyiv and the EU chances are few that he will cor- generates additional, more pow- rect his mistakes on his own, be- erful, leverage for the EU in cause he has gone too far in his Ukraine including in terms of pro- conflict with Tymoshenko. After tecting human rights. As far as I all, he is very weak in comparison understand, signing the agree- to the system. ment as soon as possible is in Ukraine’s interests. U.W.: How justified, in legal terms, are the charges of THE LIMIT “exceeding powers” against U.W.: Ukraine is among the top Tymoshenko regarding the gas five countries in terms of appeals deals? The deal was struck to the European Court of Human between two entities, Naftogaz Rights. Why is this so? and Gazprom, not the Ukrainians don’t trust the justice governments of Ukraine and in their country, find no truth at Russia. Can the ex-Premier be home or, as one diplomat once liable in any way other than said, “they have realized where politically in this case? appeals can be filed now”? – Yulia Tymoshenko is ac- – I think they can’t find the cused of instructing the Naftogaz truth they seek in Ukraine. But as management to sign the deals long as they seek the protection of that set a specific gas price (the the court, even the European instruction was referred to as the Court, it is possible to sleep peace- “directive from the Prime-Minis- fully. Once disenchantment and ter). Although Naftogaz is a frustration with the judiciary state-owned company, its offi- reaches a critical point, conflicts cials are not required to execute will be solved outside the courts. the Premier’s instructions but This is dangerous. We’ve come too the Premier can still give them. close to this point Ms. Tymoshenko undertook po- litical responsibility for a tough U.W.: Why has Ukraine failed to economic decision and the man- establish an effective judiciary agers fulfilled the instruction and system that the government signed the deals, since the deci- would not be able to manipulate sion was made by the Premier. over its 20 years of Therefore, speaking of exceeding independence? powers is hardly justified in this – We haven’t reached the bot- case. Moreover, the conviction tom of this abyss, which will does not list any motives to con- teach us that the law and inde- firm the supposedly criminal ac- pendent courts, however uncom- tions of Ms. Tymoshenko, nor fortable they may be, are better has the court proven any. Her than the willfulness of those who reasoning was the prospect of are stronger. The politics of today disrupted gas supply to Europe if are also part of falling into this no agreement had been signed. abyss. Everybody has to realize This means there is neither abuse that neither power nor force is of powers, nor the elements of a eternal, while independent courts crime in the case. and the law are the only safety net for the weaker in the country. U.W.: Some believe that Ukraine This is what must become the will sink into authoritarianism if motivation for planning true ju- the EU does not sign the diciary reform rather than politi- Association Agreement as a cal or private interests, as has result of political persecution. Do been the case in the recent so- you agree? called judiciary reform. It cor- – It’s not only Tymoshenko or rected individual elements, yet Lutsenko who need to be rescued left the key problem, i.e. the lack today; it’s the whole country that of independent judges, unre- has to be rescued. Europe is forced solved. Thus, the judiciary today to find the right balance. On the is virtually an infallible instru- one hand, it does not need a ment in the government’s hands. Ukraine that does not share West- There can be no talk of human ern democratic values. On the rights in a situation like this. No- other hand, though, Ukraine will body violates human rights as fall to the Kremlin’s feet if Europe long as those in power don’t need rejects it. An Associated Partner- or want to do so. politics|opinion: damon wilson Image-Making or Policy-Making Damon Wilson, Executive Vice President of the Atlantic Council: “The best thing Ukraine can do to improve its image is to not prosecute the opposition”

Interviewer: resenting a diagnosis of the fate. Time goes by. What can you the transfer of power in the future; it Zhanna problems of democracy and say about the situation today? creates dynamics that makes it more Bezpiatchuk human rights in post-soviet – There are number of alarm difficult to pull off a democracy. If PEastern Europe is not the top bells going off right now. If Ukraine John McCain had to worry about go- priority of the US in the political truly wants to become a modern, ing to prison when he was running in context. However, if one undertakes free nation-state and democracy in the presidential elections against Ba- such a task, it must include clear, Europe, it’s doing things half right rack Obama, our system would have rational sense – political and even and half wrong. On the one hand, it been crushed into smithereens. It economic. And this emerges when is a good sign that the authorities in would become completely dysfunc- the situation in a specific country is Kyiv are indeed concerned about in tional. If you only set standards and far from being hopeless and when their reputation and image in the high requirements only for you po- the very concept of "democracy" world. This underscores the impor- litical enemies and not your friends, and "human rights" actually fits tance of Washington and Brussels this arouses strong concerns, partic- into its development program, or is continuing to be actively involved in ularly when talking about democracy at least officially declared by the Ukrainian matters, critical when where institutions and the judiciary government. Fortunately, experts necessary and helpful when possi- are weak. This is why Tymoshenko’s in Washington still have genuine ble. So if your government is disen- case is so important. interest in regards to Ukraine. This chanted with the criticism which can is a good sign. be heard from these geopolitical FRONTMAN OR “TRACTOR” The Ukrainian Week met centers, it shouldn’t be angry at U.W.: Isn’t it time for Ukraine and with Damon Wilson, the Executive them, but respond to them with pos- its friends in the democratic world Vice President of the Atlantic itive changes in domestic policy. to clearly articulate what is Council, who was a co-author of obvious: “It is the fate of the Freedom House special report, U.W.: Should Yulia Tymoshenko be democracy that will determine published in April on the status of convicted, in you view, how will Ukraine's position in the whole democracy and human rights in this affect Ukraine-USA relations? non-EU region of Eastern Ukraine, in order to hear the views – I think it will cast a really dark European”? In other words, neck of Ukraine’s sympathizers from the shadow on US-Ukraine relations. or nothing. Or does this sound a other side of the Atlantic regarding And this is not because the US has little too idealistic? events in and around Ukraine. some obligations or sentiments to- – Ukraine is an unbelievably im- wards Tymoshenko. It has nothing portant country because of its scale MAUVAIS TON to do with any of this. To be honest, and territory. Obviously, Ukraine has U.W.: 18 months ago, in an as far as we were concerned, she was the potential to be one of the most interview with The Ukrainian a disappointment as a prime-minis- important countries on the conti- Week, you stated that next 10 ter and a difficult interlocutor in dia- nent. However, at present, this is just years would determine Ukrainian’s logue on a range of issues. We didn’t a hypothetical possibility. When talk- see much progress on issues related ing about the new Eastern Europe, bio to energy transparency. Even the ne- then the direction of Ukraine’s devel- Damon Wilson is an American foreign policy advisor and the gotiations on the EU and Westing- opment is particularly significant for current director of the International Security program at the house agreements were difficult. A it. We can see steps backward and Atlantic Council of the United States, a foreign and public pol- lot of things that we have on our bi- forwards in Moldova and Georgia. icy think tank based in Washington, D.C. lateral agenda did not make great This is important, after all, it is your 1998 – Wilson completed his master’s degree (MPA) at Princ- progress when she was prime-minis- country that could become a leader eton University's Woodrow Wilson School of Public and Inter- national Affairs. As a fellow of the Presidential Management ter. So, it’s not that the US is saying in the region and help it move to- Fellowship, Wilson worked on the State Department's China “We pick Yulia Tymoshenko up”, be- wards Europe. On the other hand, it desk and at the U.S. Embassy in Beijing. cause she was a great partner of the could become the “tractor” that pulls January 2004 – November 2006, as Director for Central, US, that we allegedly want to see her the whole region into some post-so- Eastern and Northern European Affairs at the National Secu- become a president of Ukraine in the viet fog. So, it does have outside im- rity Council, Wilson strengthened ties with the German Chan- future. No. But let us not forget that portance. Reforms in the post-soviet cellery, coordinated interagency policy in support of reform in she is a former head the Cabinet of space are not going to be promoted Ukraine, including the time during the Orange Revolution. Ministers of Ukraine, a popular by Moscow. The reforms in this re- December 2007 – January 2009 Wilson worked as a Senior leader, the runner-up in the presi- gion will be driven by what happens Director for European Affairs at the National Security Council. dential election, a viable political op- in Chisinau, Tbilisi and Kyiv, and Since early 2009 to present, Wilson directs the International Security program at the Atlantic Council of the United States, a position. The point is that the winner possibly even in Minsk. A flourish- foreign and public policy think tank based in Washington, D.C. in a democratic race is trying to elim- ing, prosperous democratic free His work focuses on NATO transformation, European defense, inate the viable opposition. This is market Ukraine will also influence emerging global security challenges and transatlantic defense really dangerous for an unstable de- debates within Russia, regarding its and intelligence cooperation. mocracy. It destroys incentives for own future. 10|the ukrainian week|№ 9 (21) october 2011 opinion: damon wilson|politics U.W.: How can problems with Foreign Affairs is in difficult spot. government has performed admira- states budget of the USA and But if you assess Ukraine in terms of bly in relations with Russia since the subsequent political crisis foreign policy it does quite well. I Kharkiv deal. I think many in the influence its foreign policy? Will think quite interesting how seriously Ukrainian Government have learnt Eastern Europe become an even Ukraine has handled relations with a lesson “the more you give, the lower priority in this respect? the EU, has continued to maintain more Moscow demands” and – Clearly we have major serious its strategic partnership with Poland Ukraine is simply incapable of sati- domestic issues related to our bud- and has got better about not negat- ating the appetite of the Russian get and how to overcome its deficit. ing and managing its relationships government on certain issues”. The It’s not as if we have never had seri- with Russia in a constructive way. Kharkiv treaties were a low point. ous debates on immigration policy Your Ministry has been working ef- But from then on, one way or an- and social security in the G.W. Bush, fectively on issues of energy cooper- other, the government was able to Clinton, Reagan or Carter adminis- ation with the USA, foreign invest- prove that it was prepared to do that, trations. However today’s disagree- ments, and tax issues faced by which is first and foremost needed ments in Washington are absorbing American citizens in Ukraine or how by Ukraine. And that’s a good thing. all the oxygen, if you will, in the po- to deal with highly enriched ura- I think that President Yanuk- litical space of America. So, foreign nium. The foreign policy of Ukraine ovych has realized that it is much political issues are very much sec- has been pretty good. The problem more enjoyable to be the president of ondary today. I personally am con- lies in your domestic policy which is an independent country rather than cerned about what it means in terms viewed negatively around the world. a vassal state. Look how he re- of sustaining US engagements And this cannot be fixed with a PR sponded to the challenge of choosing around the world. At the same time plan to improve its image abroad. between the free trade agreement we are superpower. We live in a real- This can only be fixed with the aid of with the EU and the Customs Union ity in which our president has a lot internal reforms, transparency at with Russia. I think the Ukrainian more freedom to act in the interna- home and ensuring the indepen- government handled this well, and tional arena, that in domestic policy. dence of the judiciary system. by doing so, asserted its strategic So, what you see with the American The best thing that Ukraine can choice to move forward in negotia- presidency is that it’s very difficult do today to improve its image in tions with the EU. Even though good for it to move on its domestic agenda, Washington is to find a solution political and economic relations with when Congress has to be involved in and stop the criminal persecution Russia are very important, they can- the process. This is actually why a of high-profile representatives of not develop at the expense of turning president tends to play a very active the political opposition, beginning away from the possibilities of your role in foreign policy, because it is with Yulia Tymoshenko and Yuriy future in Europe. easier to act independently. If you Lutsenko. We have some backslid- think about this in relation to ing in negotiations about handling Ukraine, you are right; it’s not going high-grade uranium. If Ukraine is to be on the top of president’s unable to continue it effectively, it agenda. But Ukraine has a lot of will lose a huge opportunity in rela- friends in Washington. There is a tions with this White House. strong community here in the US that wants to see Ukraine succeed. U.W.: What about next elections Specialists in the White House, State in Ukraine? Department and Pentagon – they all – There has only been one elec- intend to continue working on US- tion under this administration – last Ukrainian relations, regardless of year’s local elections which were con- what it going on in the domestic pol- ducted badly. They represented the icy of your country. first step back since 2005. Will this government be able to ensure an U.W.: This year the Ministry of electoral process that is free, honest Foreign Affairs of Ukraine and transparent? This is truly the published a strategy for number one task and a test. improving Ukraine’s image abroad. What recommendations U.W.: You were one of the first could you give to change it for experts who, after the signing of the better, particularly in the Kharkiv Treaty on the Black Sea Washington? Fleet, acknowledged that it would – It’s not just the problem of im- restrict Ukraine’s ability to approve age; it’s a problem of policy. I would independent political issues. Have like to say that your Ministry of For- you personally seen this confirmed eign Affairs has a very experienced since then? Foreign Minister right now, but the –I have to admit, that to this issues that are the problem for day, I still have a pretty negative Ukraine on the international stage view of the Kharkiv deal. I stand by have to do with the Prosecutor Gen- my original concern about it in terms eral, Ministry of Justice, Constitu- of what it represents for long-term tional Court and the Verkhovna Ukrainian control and sovereignty. Rada. So, I think the Ministry of But I also think that this Ukrainian № 9 (21) october 2011|the ukrainian week|11 politics|opinion: david kramer Freedom House: We Will Continue To Tell the Truth Freedom House President David Kramer: “It looks like Ukrainian leaders are using the judiciary to prosecute their opponents”

Ukraine dropping in the Freedom in the World report reached all leading mass media and govern- ment centers in Europe and the US on the same day. Over the past few months, the current government has essentially been communicat- ing with Freedom House through Hanna Herman and Inna Bo- hoslovska. These politicians are the people who have been respond- ing to critical reports and letters from Freedom House’s David Kramer and his colleagues on the state of democracy in Ukraine. The Ukrainian Week spoke with Mr. Kramer to hear his opinion on re- cent developments in Ukraine and the quality of communication with the Ukrainian government.

U.W.: The case against Yulia Tymoshenko brings to mind two opposite views: either her hypothetically possible sentence to prison will have a catastrophic impact on Ukraine’s democracy and European integration or the life of the country will not depend on this case so critically. What is your opinion on that? – This is a serious threat to Ukrainian efforts to move in a more democratic direction. It's more than one case. This prosecu- tion of Yulia Tymoshenko started last year first over ambulances and the Kioto fund, and then over the current case as well as gas dealings when she was in the private sector in the 1990s. It has created the im- pression that the government is intent on going after her, convict- ing her, putting her in jail, making photo: reuters photo: her ineligible to run for president Interviewer: scetics often live in caves to low authoritarian or totalitarian again and essentially keeping her Zhanna seclude themselves from regimes. No matter how much one away from having any opportunity Bezpiatchuk the world. Unlike caves in wants to criticize institutions like to return to office. So, this whole Areligion, in politics caves Freedom House, turning away situation suggests that the Ukrai- have hardly anything in common from them means running away nian leaders are using the judicial with reverent solitude. They are from the world and into all the re- system to go after their main oppo- cold, damp places sheltering hol- lated consequences. The news of nents. It's not just Tymoshenko. 12|the ukrainian week|№ 9 (21) october 2011 opinion: david kramer|politics It's also Yuriy Lutsenko and oth- bio have commented on them. How would be premature of me to sug- ers. The Tymoshenko case is, obvi- David J. Kramer do you see the situation? gest any change, but the trends so ously, the one that has received the is President of – Ukraineis a member of the far this year have not been encour- most publicity. Freedom House, Council of Europe and a member aging. which he joined of the OSCE. Ukraine is a signatory U.W.: What criteria are most in October 2010. to the UN Declaration on Human U.W.: Who is the target audience important in assessing democracy Prior to joining Rights. All these things mean that of the democracy and human in Ukraine? Is it the procedural Freedom House, these kinds of concerns — human rights surveys carried out by aspect of the case against the Kramer was a Se- rights concerns — do raise the level Freedom House? nior Transatlantic of attention from other countries. former prime minister — i.e. not Fellow at the – The audiences are all those ensuring her right to defense, German Marshall And so other countries have the re- who are interested in the develop- disproportionate preventive Fund of the sponsibility to raise the issues and ment of freedom all around the measures and the rejection of United States. concerns about these kinds of ac- world. That includes the US gov- defense witnesses, or that it is a Before joining tions. And the Ukrainian authori- ernment, US Congress, European trial against the opposition GMF, Kramer ties need to ask themselves why governments, European parlia- leader despite the other served as Assis- nobody outside of the country (and ments, the defenders of civil soci- problems? tant Secretary of even a lot of people inside the ety and human rights. It's global. It – To be honest, it is a combina- State for Democ- country) attaches any credibility to covers the entire world. So we get a tion of all of this. I think this has racy, Human this process. Criticism is coming lot of attention. We have been do- Rights, and Labor reached the point where there is not from March from everywhere, including from ing it since 1972. The report has much that can be done to fix it. The 2008 to January Moscow. And yet the Ukrainian developed the reputation for being investigation, the charges and 2009. He also authorities say that everything is a key standard for how countries courtroom proceedings, in my view, was a Deputy As- in the hands of the judicial bodies. are developing. need to be abandoned. The whole sistant Secretary President Yanukovych needs to procedure has been compromised. of State for Euro- show some leadership and dismiss U.W.: Does the country’s ranking It lacks credibility. When the judi- pean and Eur- the case and order the legal au- in your report affect potential cial proceedings lack credibility, asian Affairs, re- thorities to do this as well, because investors? then you kind to start from the be- sponsible for no one finds it credible. – When a country is moving in ginning, you start from scratch. I Russia, Ukraine, the wrong direction on freedom Moldova and Be- don't think that there can be fixes larus affairs as U.W.: This July you disclosed an scores, it generally still does have made in procedures to make this a well as regional open letter to President sufficient rule of law to attract the better, more credible process. This non-proliferation Yanukovych where you called on proper or adequate foreign invest- whole prosecution of Tymoshenko issues. Before him to stop “digging a hole” for ment. But I do know that US gov- lacks credibility. At the same time, joining the U.S. himself. Have you got any reply? ernment agencies attach signifi- former government officials should Government, – I did not get one directly, cance to the scores and rankings not be exempted from responsibil- Kramer was a Se- personally. There were comments we report. ity. The way this has been con- nior Fellow at the made by Hanna Herman who dis- ducted almost from the beginning Project for the missed the criticism and denied U.W.: There is a caste of smacks of politics rather than the New American political persecution. Inna Bo- politicians in the FSU who say Century, Associ- true pursuit of justice. There are a ate Director of hoslovska wrote a response in the Freedom House promotes the US number of other issues and cases the Russian and KyivPost saying that we are the government’s interests. What is that if judicial authorities wanted to Eurasian Pro- ones digging the hole for President your answer to them? investigate, I'm sure they could find gram at the Car- Yanukovych. There seems to be a – There is very rigorous some interesting information such negie Endow- lot of press attention to it, but I methodology for evaluating coun- as in the second round of the presi- ment for Interna- would say the government did not tries. There are experts who con- dential election in November 2004, tional Peace, and seem to receive it positively. The tribute to the process. There is a or the gas deal that was signed in Assistant Director response from the government to committee that reviews the ana­ January 2006. And Yulia Tymosh- of Russian and our report that we released in June lysis and gives scores. It goes enko had nothing to do with that. Eurasian Studies in Ukraine was more positive. through a very rigorous process. at the Center for Or the manner in which the Rada Strategic and In- Anna Herman was there, she That's not to say that we are per- ratified the Kharkiv Treaty last year. ternational Stud- stayed through the presentation, fect. We struggle every year to It seems that the bulk of attention ies, all in Wash- though she left after she made her make the analysis and ranking is being devoted to Yulia Tymosh- ington. Kramer first comment. The president is- better than the year before. But I enko because — in the minds of the received his M.A. sued a statement that he was tak- think that it is about as good as it current authorities — it seems she in Soviet Studies ing it seriously. Unfortunately, I could be. It does not surprise me poses the greatest threat. So they from Harvard would say those comments proved that countries that are authori- have dug an enormous hole for University and to be rather empty. The test is re- tarian in nature and that are themselves. And they have to stop his B.A. in Soviet ally in the policies of the govern- moving in an anti-democratic di- Studies and Po- digging. litical Science ment which it still has to pass. rection don't like what we do. from Tufts Uni- They don't like the spotlight be- U.W.: Representatives of the versity U.W.: Eight months of 2011 have ing shined on their deficiencies, current government claim that passed. Is it possible to forecast shortcomings and abuses. I'm not foreign governments and Ukraine’s position in the next sure what we can do in the minds organizations should not Freedom in the World ranking by of such government officials to interfere with cases against Freedom House? improve this reputation. We will former top officials. Still, virtually – We still have four months to continue to tell the truth and to all Western Foreign Ministries go before the book is closed. It do the best job we can. № 9 (21) october 2011|the ukrainian week|13 politics|opinion: steven pifer Mr. Yanukovych's Foreign Policy Dilemma Steven Pifer: “You have some people in Europe and the US asking if it is time to apply possible restrictions on certain Ukrainian officials”

Interviewer: Zhanna Bezpiatchuk

n his interview with The Ukrainian Week, Steven Pi- fer, former US Ambassador to IUkraine and now expert at the Brookings Institution, talks about official Kyiv running out of room to maneuver in the international arena. U.W.: You previously said that Ukraine will get weaker in negotia­­ ­­ tions with Russia and lose its ability to defend its interests if democracy in the country is scrapped. Could you elaborate on this? – It seems to me that over the past year and a half, the relations be- tween Russia and Ukraine have im- proved. However, there are still is- sues on which Moscow and Kyiv have different interests. For example, the question of the price that Ukraine pays for gas imported from Russia. The Ukrainian prime minister is again talking about lowering this price. There is an obvious conflict in doing so. The lower price for Ukraine means lower revenues for Russia. The countries also have different unian photo: views on the South Stream pipeline talks with Russia. If Ukraine has a the current president’s because if Russia builds this pipeline strong relationship with Europe, it authoritarian inclinations and (and at this point there is no new gas will be in a stronger position to bar- deeds in order to keep Ukraine supply to fill South Stream) the gas gain with Russia. Because of the within the European framework? that would fill it would be gas that backsliding on democracy, it will – I think the risk is the oppo- would otherwise be pumped through have a harder time having a good re- site. You already have Europeans Ukraine. So, there are issues on lationship with Europe. I think Presi- talking about whether the EU which they differ. And my point is dent Yanukovych's position will be should slow down negotiations on that if the democratic backsliding weaker. That is the concern I have an Association Agreement because leads to weaker relations between for Ukrainian foreign policy. of declining democracy. I do not Ukraine and Europe and between think that is in Ukraine's interest. Ukraine and the US, it will weaken U.W.: Do you think the US and Here in Washington, I hear there is Ukraine's bargaining position in Europe could forgive or overlook significant concern about democ- 14|the ukrainian week|№ 9 (21) october 2011 opinion: steven pifer|politics moshenko trial. A lot of people are impression is that the US govern- really concerned that this is in fact ment is very supportive of the idea a politically motivated trial and of an Association Agreement be- Mr. Yanukovych's Foreign Policy Dilemma that there is no substance in the tween the EU and Ukraine and a charges. For example, we have seen deep and comprehensive free trade expressions of concern from the zone because that might ensure racy declining in Ukraine. As I said Congressional Commission on Se- very positive links with Europe. before, it makes it very hard for curity and Cooperation in Europe And that’s why they became con- President Yanukovych to get a and from Senator John McCain cerned about the backsliding on meeting with President Obama. who comments on Republican for- democracy, because that backslid- The government has to think about eign policy. The further the Ukrai- ing will make it more difficult for what it wants to do. It can't have nian political system goes back in Ukraine to follow its path to Eu- declining democracy and still have terms of democracy, the harder it rope. You have some people in Eu- the kind of relations it says it wants will be to achieve that meeting. I rope and the US asking if it is time to have with the EU and the US. am not saying this is what the US to apply possible restrictions on government thinks, my comments certain Ukrainian officials. This is U.W.: Beyond any logistical and are based on my own assessments. not good and it's not healthy. Pres- organizational matters, what is ident Yanukovych has the power to necessary to make a meeting U.W.: Is it possible to draw a line stop it. with President Obama possible? between support for Tymoshenko – If you go back a year ago, re- that comes from abroad and that U.W.: How would you comment member, the administration orga- came previously when she was in on the statement that Ukraine nized a bilateral meeting between politics and support for the cannot afford to be authoritarian President Obama and President democracy in Ukraine as such? because unlike Russia with its Yanukovych when Yanukovych was Many will argue that Ms. greatness, Kyiv can only rely on in Washington in April 2010 for the bio Tymoshenko is no angel herself. its own democratic achievements Nuclear Security Summit. I think Steven Pifer – I don’t think that people had when it comes to dialogue with the White House reached out to the Born December unrealistic illusions about Tymosh- Europe and the US? Yanukovych administration very 8, 1953 in Califor- enko, they recognize that she has – I don’t think it’s black and quickly, recognized the presidential nia flaws. But I think it came as an un- white. But a democratic Ukraine election and accepted Yanukovych 1976 – graduated pleasant surprise to many when will be seen as a more compatible as president because he won in from Stanford the government prosecuted her. It and acceptable partner for Europe University what everybody saw as a free and 1985-1988 – seems the essence of the charge is and the US. I think President fair election. That gave him a sig- worked at the US that she negotiated a bad contract. Yanukovych's foreign policy is nificant degree of democratic legiti- Embassy to the I have heard people here criticize pretty sensible for Ukraine – a macy. What happened over the last USSR the terms of the contract. But it’s good relationship with Russia and year are the problematic local elec- 1988-1990 – not a criminal matter that she ne- a good relationship with Europe. tions in October 2010, actions by Deputy Director gotiated that contract. It contrib- He has made clear that he wants to the Security Service of Ukraine, the for Multilateral uted to the fact that she lost the bring Ukraine into a comprehen- trial of Tymoshenko and what ap- and Security Af- election in 2010, but you don’t sive free trade arrangement with pear to be politically motivated fairs, Office of So- have to criminalize that and that’s the EU as opposed to the Customs prosecutions of other leaders of the viet Union Affairs causing concern. This has been Union with Russia, Belarus and 1990-1993 – Dep- opposition. Basically these events uty Political Coun- something that has not been seen Kazakhstan. I think that is a very have called into question how com- sellor, US Embassy in Ukraine previously. Despite the sensible policy. But again his abil- mitted the Yanukovych presidency in London political differences prior to Presi- ity to move that policy is going to is to democracy. And many people 1993-1994 – dent Yanukovych, that has not be much stronger if people see are very concerned about the back- Deputy to Senior been your history. And last year it Ukraine as a democratic state that sliding on democracy. I think two Coordinator for seems to have become common – shares the political and democratic things would have to happen to the Newly Inde- politically motivated prosecutions values of Europe. If Ukraine con- make a meeting between the two pendent States of opposition leaders. And that is tinues to be seen as moving in the presidents possible. First, this 1994-1997 – Na- not healthy for democracy. wrong direction, as backsliding on White House would like to have tional Security democracy, it will be harder for Council Director some positive results. There have for Russia, Uk­­ U.W.: Do you see any difference Yanukovych to promote this kind to be specific achievements. But I raine, and Eurasia; between the American and of foreign policy. think it is more important to stop special assistant to European approaches to Ukraine? the backsliding on democracy, be- the National Secu- – I think there is a lot in com- U.W.: What solution do you see cause if President Obama were to rity Council presi- mon between the American ap- from the American perspective? meet President Yanukovych, I dent and senior di- proach and the European ap- – I worry that the longer the think he would raise significant rector proach. Your president made very Ukrainian government continues questions and significant criticism. 1998-2000 – US clear that he was not interested in on this course of digging themselves If he was not very tough in criticiz- Ambassador to the NATO membership action into a deeper and deeper hole, the ing President Yanukovych back- Kyiv 2001-2004 – plan, he was interested in practical harder it will be to change course. sliding on democracy, there would Deputy Assistant cooperation. People here in Wash- But I do think that if they want to still be pressure from Congress. Secretary of State ington, DC say that’s fine, that’s stop a trial that has lost credibility, Why have you met him without ex- in the Bureau of Ukraine’s choice. That it is a logi- they could find the technical rea- pressing concerns? A lot of people European and cal course for Ukraine to develop a sons to do so. That would certainly in Congress are following the Ty- Eurasian Affairs relationship with the EU. So, my be a positive signal. № 9 (21) october 2011|the ukrainian week|15 politics|Jose Manuel Pinto Teixeira

A Tango for Two Jose Manuel Pinto Teixeira talks about the effect of scandalous trials in Ukraine on the prospects of signing the Association Agreement with the EU Interviewer: he situation around the talks false. Nobody in Europe dispu­ I don’t think that anybody Zhanna on the Association Agreement ­tes Ukraine's European iden­ can say with an absolute guar­ Bezpiatchuk between the EU and Ukraine is tity. I come from Portugal where antee that the resolution on Ty­ Tabout to reach its zenith: tech- there are about 100,000 Ukraini- moshenko or other leaders Photo: nical aspects will soon be clarified in ans. They are extremely welcome in now in custody is a pre-condi­ Andriy full and big European politics will our country. No-one doubts they tion to signing the agreement. Lomakin once again take the spotlight. Cur- are Europeans. They are hard work- There are three steps leading to the rently, the outlook does not look like ing. We are the fortunate ones to initialization. The first is negotia- a big hit for Ukraine as it is shad- have received an influx of people tions on each side. When no open owed by the dark clouds over Pech- from Ukraine and the loser here is issues are left, they do the initialing ersk. It was during this intriguing Ukraine itself. Ukraine is an inte- of all pages of the document. The time that the Ye Bookstore met Jose gral part of Europe but not yet an next stage is the signing which is be- Manuel Pinto Teixeira, the EU Am- integral part of the European Union yond the technical process and in- bassador to Ukraine. The Ukrainian and its institutions. But then again volves consultations with the repre- Week presents some excerpts of Mr. Ukraine has to do its job. I get the sentatives of the 27 member states Teixeira’s presentation below. chance to have conversations with and the European Council to agree Ukrainian politicians, people in re- to actually sign it. Then you move There is a tendency to so­ sponsible positions, and they say, into ratification by the parliaments, metimes­­ present a distorted “Look, you have to take us, other- plus the European Parliament. reality to the Ukrainian peo­ wise somebody else will.” The EU is Sometimes parliaments don’t agree ple, that Europe does not give not in the business of taking any- with what the governments in these them a European integration one. It’s always about people want- countries decide. We don’t have ver- perspective, thus demonstrat­ ing to join. The EU is called a soft tical power structures in the EU. ing that it does not want power; we are not a power that im- I do not want to make you be- Ukraine. That is completely poses decisions on other countries. lieve that the European Parliament 16|the ukrainian week|№ 9 (21) october 2011 Jose Manuel Pinto Teixeira|politics will necessarily be in favor of ratify- case in court. When we claim that raine. Why is that? The situation ing the agreement if the situation in Ukraine wants to pay the same price here has deteriorated over the past Ukraine does not improve by the as Germany does, we must under- year, I must say. We used to have the time the process of ratification be- stand that when a contract is signed Bureau for European and Euro-At- gins. Most political groups in the with a party that has lost credibility lantic Integration and a national co- European Parliament, even the so- because at a certain point in time ordination unit at the Ministry of cialists who now have some kind of things were not delivered, the flexi- Economy. One was eliminated, the cooperation with the Party of Re- bility to negotiate is reduced. The other is still there. The reason might gions, share unequivocally the need EU must now think how to diversify be the current public administration to respect fundamental principles its energy supply. We should start reform that every country unques- in Ukraine. buying liquid gas on spot markets. tionably needs. But we’ve seen very Nobody can preempt the deci- knowledgeable and experienced in- sions that need to be taken by the The pillars of the Ukrainian terlocutors who used to work with 27 members. economy are the same today as the EU for a long time being shifted they were 20 years ago. Twenty to other positions. At this moment This raises the issue of co­ years ago Ukraine was producing we are a bit lost. Deputy Prime Min- herence between the EU offer­ steel, iron, coal, fertilizers and agri- ister Klyuyev with whom I have very ing this kind of prospect and cultural products. This is still the case good relations has taken on these re- agreement to a country where today. 40% of Ukraine’s exports are sponsibilities recently. But I think such events are taking place. steel. These industrial assets largely he’s still in the process of getting his This is incompatible with its princi- moved from being state-owned in a house in order, the structures I mean. ples. Therefore, we are in a dialogue communist country to the hands of At the moment there is a need for im- with the authorities to press for un- several businessmen. Since then, provement in this area. If European derstanding of the problems. If inte- Ukraine has not diversified into new integration is indeed the objective, gration is really the objective, these products, into higher quality prod- everything is very simple with issues will have to be resolved. Some ucts, or into attracting foreign and Ukraine: just do what others have legislation that still applies in domestic investment. What is quite done — set up structures, engage civil Ukraine does not reflect the follow- important, Ukraine has not moved servants in the respective depart- ing democratic principle: decisions towards having small and medium ments seriously in the cooperation made by political leaders elected by enterprises that really constitute a with their foreign counterparts, adopt people during their mandate should substantial percentage of the econ- and implement the legislation, and be judged by voters. I would expect omy, offer flexible employment op- change the public services that have that the current and future authori- portunities, and absorb economic to conduct these processes. It takes ties of Ukraine will want to avoid two to tango, therefore both partners having the aberration of legislation must work. from the times of Mr. Khrushchev. I would expect that the It was better than the legislation un- authorities of Ukraine I wish Ukraine had no hy­ der Mr. Stalin, perhaps, but still not pocrisy. When the authorities good enough. It’s up to the politi- want to avoid the say “we want this” they should cians in Ukraine to find a solution. aberration of legislation really do it, not just say it to look sympathetic to us and to In 2009, when Slovakia, shocks similar to the one we had in make the public believe things Serbia and Bulgaria were freez­ 2008. The Free Trade Agreement has are going to happen when ing, the lady who is now in jail two objectives. One is the liberaliza- they are not. We need serious found a solution. That was recog- tion of trade when Ukrainian produc- commitments to not only nized and welcomed by the EU. The ers can access the European market adopt the right decisions but position of the EU always was and of 500m people with a much higher to implement them as well. still remains that the EU is not part income level. The demands of this Ukraine has joined the Bologna of the gas agreements. These are more sophisticated market will en- process. If Ukraine is going to inte- agreements between companies that courage you to make higher quality grate into the EU, the sooner it starts earn money in Bulgaria, Slovakia products. Also, the zone is deep and harmonizing its education system and so on, and make agreements comprehensive which means that with the European Union, the bet- with Gazprom in Russia to be sup- Ukraine will have to use the same ter. If Ukraine wants to have more plied gas at a certain cost. Ukraine is regulatory approaches to the econ- people in European universities or a transit country but Naftogaz is not omy as the EU does and have the rule companies gaining the experience a signatory to any company in the of law in the country. But Ukraine they can bring back to their country EU in this case. The EU in a way had has lost 20 years already and should later they need to have academic to organize meetings with the par- not waste another week. qualifications that are recognized in ties to the gas conflict and try to get Europe. I met with the Minister of them to sort out their problem. Ukraine receives all the as­ Education some time ago and we Eventually, they were solved by the sistance that all candidate coun­ talked about the independence of Prime Minister at the time. If this tries in the process of negotiat­ universities and their European in- gas conflict drags on, I’m afraid the ing EU integration do. It has all tegration. But I cannot dictate any- EU will be squeezed between the instruments available including thing to anyone. If the government parties, the supplier and the transit- Twinning programs, TACIS and says tomorrow that they don’t want ing party. But I think it’s important so on. Unfortunately, I think to follow the process they are sover- to take the lessons from the current they are very ineffective in Uk­ eign to stop following it. № 9 (21) october 2011|the ukrainian week|17 neighbours|Russia Time to shove off The Soviet Union was undermined by stagnation and a sense of hopelessness. Is the same thing happening again? n 2000 a group of young Rus- sians, just back from their stud- ies in America, started the web- Isite WelcomeHome. Ru. “Life in Russia is becoming more nor- mal. It is possible to live here, make a career and bring up chil- dren. Many of those who had left have come home. We are among them,” the site read. It was a typi- cal reaction by young Russian professionals to the growth, op- portunities and promise of stabil- ity from Vladimir Putin, the new president. Soon, after years of capital flight, money started to flow back into Russia. Twelve years later, as Mr Pu- tin appears to be preparing to re- take his presidential office for an- other 12 years, the mood is starkly different. WelcomeHome.ru is dead. Instead, a new popular blog has sprung up on a Russian social network. It is called “Pora valit”, which means roughly “Time to shove off”. Its few thousand users exchange stories about how best to leave Russia. The blog’s title sums up perfectly the mood among Russia’s urban and edu- cated class. Emigration is the talk of the town. Dmitri Bykov, a popular and prolific author, dedicated a recent weekly feuilleton to the flight of money and people and the travelling ban imposed briefly on two opposition politicians, Bo- ris Nemtsov and Vladimir Milov. THE MASTER OF RUSSIA The Soviet government punished The prospect of having Vladimir Putin back as dissidents by expelling them, Mr president discourages young and ambitious Bykov quipped. “Now they punish Russians to expect changes for the better in them by keeping them in.” their country A recent opinion poll by the

photo: ap photo: Levada Centre shows that 22% of 18|the ukrainian week|№ 9 (21) october 2011 Russia|neighbours Time to shove off Russia’s adult population would tion indicator went up to 21%. De- optimistic analysts, argues that like to leave the country for good. valuation and default had wiped the economy is in a better state This is a more than threefold in- out savings and Boris Yeltsin had than people think—for the mo- crease from four years ago, when fired his government, raising fears ment. “Things can go on like this only 7% were considering it. It is of an unstable succession. But for another two years. Maybe the highest figure since the col- now the succession is in no doubt. three. But then…” lapse of the Soviet Union, when Mr Putin will remain in power for only 18% said they wanted to get the foreseeable future. And even Misusing oil out. Those who are eager to leave if, by chance, Dimitry Medvedev, Russia’s most immediate vulnera- are not the poor and desperate. the present president, is allowed bility is its growing dependence On the contrary, most are entre- to stay on in his post, the current on energy. During Mr Putin’s rule preneurs and students. 22% regime will continue in some form the share of oil and gas in Russia’s The Levada Centre recently of Russians would or another. export revenues has gone up from conducted a survey of people aged like to leave their The economy also shows no half to two-thirds. This increase is country and live 25-39 living in large cities and somewhere else sign of immediate distress. After almost entirely due to higher earning five-to-ten times the av- the 2008 financial crisis, which prices rather than growing pro- erage income in Russia. Almost a hit Russia harder than most coun- duction. The budget depends on third would like to emigrate per- tries, output bounced back and is them. Five years ago Russia manently. They are not dissidents now growing at between 4% and needed $50-a-barrel oil in order or romantics. Half say they have 5% a year: not as fast as in the to balance its budget. Next year no interest in politics, a third are mid-2000s, but certainly no worse the price will have to be $120 to Kremlin supporters, most work in than in many other emerging mar- meet its spending obligations. The the private sector and have done kets, including Brazil. The oil current price is $113 a barrel. As well over the past decade. “These price is 1.5 times higher than it Russia gets closer to elections, its are not just people who would like was in 2007, the peak of general budget expenditure (which is al- to leave Russia, but people who optimism; inflation is heading ready growing by more than 10% have the means to do so,” says down; employment is up and con- a year) is bound to increase. Lev Gudkov, the head of the Le- sumption is robust. Evgeny Gavr- The fact that Russia has a lot vada Centre. ilenkov, chief economist at Troika, of oil to export is not a problem in These figures do not necessar- a Russian investment bank, calls itself; as Clifford Gaddy of the ily indicate a brain drain. Mr Gud- it “a good muddling through”. Brookings Institution has argued, kov, who has been measuring Yet, despite this, people and it ensures a competitive advan- Russia’s emigration over the past firms are taking money out of Rus- tage. The problem is the country’s 20 years, says the number of peo- addiction to it, and its misuse of ple who will actually leave is prob- oil revenue. Instead of investing ably small. Among the young and Russia’s economy in human capital—such as better well-off, only 6% have filed for a is more flexible than schools and hospitals—and mod- visa, are negotiating a contract or ernising the oil and gas industry, have applied to study abroad. the Soviet one was Russia has used the money to per- (Though, given Russia’s unfavour- petuate the inefficient structure of able economic and social trends, sia. Last year the net outflow was the Soviet economy in exchange it can ill afford to lose even a small $34 billion (see chart). Some of the for political support. Instead of number of its best educated young capital flight, Mr Gavrilenkov says, encouraging people to look for people.) What these figures really can be attributed to the unexpected newer opportunities, Russia ties show is a startling level of frustra- windfall from higher energy prices: them down with handouts to di- tion with the state of the country. unable to invest everything at short nosaur enterprises and one-com- “This is a cardiogram of Russian notice domestically, energy firms pany towns. society,” says Mr Gudkov. If so, are parking it abroad. But a lot of A good example is the case of things are going badly. capital is leaving the country in Avtovaz, maker of the Lada car. small sums and can only be attrib- After the 2008 crisis, Mr Putin The suitcase syndrome uted to individual transfers. Soar- should probably have let the ail- In some ways, the urge to leave ing sales of mid-price properties to ing company go bust. It simply now may seem odd. Mr Gudkov Russian buyers in Europe confirm could not compete with the new says that what he calls the “suit- the trend. models being produced elsewhere, case mood” usually spikes either So while the sense of acute cri- especially in Japan. Instead, Mr in anticipation of a crisis or just sis has gone, it has been replaced Putin gave Avtovaz more than $1 after one. After the financial crisis by a feeling of stagnation. Mr billion and shielded the company in 1998, for example, his emigra- Gavrilenkov, one of Russia’s more from foreign competition. Since № 9 (21) october 2011|the ukrainian week|19 neighbours|Russia sioned by the World Bank in Moscow, and is bringing in Cisco, Greener fields 2007—a year before the crisis— an internet-services giant, as a Would you like to leave the country to live elsewhere? revealed that only 5% of firms flagship firm. But this will do May 2011, % replying “yes” were created or destroyed in the nothing to free up competition or 0 10 20 30 40 50 60 decade of high growth. In a make Russia an attractive place healthy market economy the rate to do business. When two Rus- Entrepreneur is much higher, sometimes ap- sian physicists who live and work proaching 20%. in Britain won a Nobel prize last Student As a result, Russia now lacks year they were asked to come and Professional capacity for strong economic work in Skolkovo. “You must growth. The continued increase in have all gone mad over there if Unemployed consumption, backed by a high oil you think that for a sack of gold price, has led to an astonishing in- you can invite anyone,” Andre Housewife crease in imports (up 40% a year), Geim replied. The fact that Rus- but it no longer stimulates the do- sian scientists want to work Blue-collar worker mestic economy. Such stimulus abroad is not a problem in itself; Senior manager can come only from a boost in large numbers of Chinese scien- productivity and investment. tists do the same. The problem is Retired Fresh investment, both for- that so few want to return. Ac- eign and domestic, is deterred by cording to the World Bank, 77% Source: Levada Centre, Novaya Gazeta Russia’s poor business climate, of Russian science and engineer- which shows little sign of chang- ing students studying in America ing. When Walmart tried to buy a will never come back. retail chain there—a three-year In the past, Russian entrepre- The money drain flirtation that eventually ended neurs were prepared to put up Net private capital inflows/outflows, $bn last year—it was apparently with bad institutions and corrup- 100 fobbed off by bureaucrats who, tion because of high returns. Now according to a source familiar that the rewards are smaller and 50 with the negotiations, “did not the appetites and impudence of want another whiner like Ikea, bureaucrats greater, large Russian 0 which had exposed corruption.” firms are reducing the domestic sector of their business to a mini- Not for a sack of gold mum, while smaller ones are look- -50 That corruption crushes the pros- ing to sell up. A recent survey by pects of active and talented peo- Campden Media and UBS, a bank, -100 ple. The rent-seeking behaviour of 19 Russian businessmen with a of Russia’s rulers, who control personal wealth of more than -150 the money and the levers of re- $50m and a turnover of $100m 1994 96 98 2000 02 04 06 08 2011* pression, stifles competition. showed that 88% had moved their Many of the elite have back- personal wealth abroad and were Source: Central Bank of Russia *To June 30th grounds in the security services; prepared to sell their companies. their instinct is to raid, grab and Few planned to pass their busi- control, rather than create and nesses on to their offspring, which Avtovaz employs 70,000 people compete. The occasional firing of is hardly surprising, since most directly, and millions of parts- high-ranking officials such as the children of the rich and powerful suppliers and car-dealers rely on former mayor of Moscow, Yuri are now ensconced in the West. it, the prime minister’s invest- Luzhkov, leads not to a change in Parents send their children abroad ment is expected to pay off on the system but to the simple re- not to learn to run their busi- election day. Asked who should be distribution of cash flow. nesses more efficiently, but so Russia’s next president, Igor Ko- Investing in innovation and they never have to come back. marov, the plant’s boss, replied: raising productivity makes little “If you weigh up who has helped sense when your well-connected A future amputated us in our hardest time, the answer competitor can hire the tax police All this is breeding a sense of stag- is obvious: Mr Putin.” and prosecution service to force nation that compounds the glum Mr Putin’s rule, however, is you out of business. As Dmitry mood of the middle class. It is not far from being as beneficent as it Kamenshchik, owner of Moscow’s fear of impoverishment or unem- seems. Throughout most of his Domodedovo airport (now being ployment that makes people think vaunted “period of stability”, dis- eyed by state-backed competi- of emigrating, as in many other posable income and retail-trade tors), says wryly: “Like anyone countries, nor the threat of insta- volumes have grown twice as fast else I don’t know whether I will be bility or revolution, which have as GDP. In the 2000s soaring con- sent to prison or not. We are all forced out Russians in the past. sumption translated into eco- citizens of the Russian Federation People want to leave because they nomic growth, but this was largely and live under the Russian crimi- feel there is nothing more for achieved by using up the spare ca- nal code.” them in Russia. The sense of a fu- pacity of Soviet assets and under- Mr Medvedev has a grand ture has been amputated. Accord- investing in new industries and plan to create a Silicon Valley in ing to the Levada Centre, three- infrastructure. A study commis- Skolkovo, a special zone outside quarters of Russians do not plan 20|the ukrainian week|№ 9 (21) october 2011 Russia|neighbours more than two years ahead; only In some ways, says Vladimir 3% plan more than ten years Mau, Russia’s leading economic Roots of discontent ahead. The degradation of infra- historian, Russia’s situation is What causes frustration or anxiety in your life? structure, institutions and, most similar to that of the Soviet Union May 2011, % replying: important, human capital, creates in the 1970s and early 1980s, the a desire to tune out of it all. “era of stagnation (zastoi)”, after Unreasonably high cost of living 67 Those who want to go abroad a thaw in the 1960s. Then, too, Low quality of medical services 53 often have higher material stan- the oil price was high and con- dards of living than their peers in sumption rising, but the country Widespread corruption among public servants 49 the West. They are looking for was consumed by a sense of High level of crime 48 hopelessness. Life was reason- things they cannot buy: recogni- Influx of migrants 41 tion of achievements, protection ably comfortable for the well-ed- of property rights, physical safety, ucated, but social mobility was Deplorable state of education system 39 a functioning health service, a blocked by party apparatchiks. Moral decay of society 39 proper education for their chil- The gap between expectations dren. They want to live a life and reality was unbridgeable. Weak protection of property 36 which does not involve paying When the oil price fell, food Limited career opportunities 35 bribes, or losing one’s business shortages and fury at the privi- for political reasons, or being leges of the elite became catalysts State of pension system 35 jailed at the whim of a corrupt for change. Increasing intolerance in society 27 bureaucrat. Russia’s economy is more Absence of an independent judiciary 26 The story of Sergei Magnitsky flexible than the Soviet one was, looms large in the minds of pro- but frustration with the unfair- Growth of Russian nationalism, xenophobia 16 fessionals. Mr Magnitsky, a suc- ness of the system is no less Authoritarian regime 15 cessful corporate lawyer, blew the strong. Shortages of goods have whistle on a big corruption scheme been replaced by lack of property Restriction of media eedomfr 14 run by a group of police investiga- rights; the humiliation of queue- Source: Levada Centre, Novaya Gazeta tors, only to be put in jail and ing for meat has been replaced by hounded to death by the same po- the humiliation of being milked licemen. The government failed to by bureaucrats. Most important, The Kremlin undoubtedly investigate the accusations, and is the gap between rhetoric and re- likes things that way. It has still covering up the circumstances ality is just as wide. The question learned from the mistakes of the of Mr Magnitsky’s death. is whether Russia’s middle class, Soviet Union, which raised levels The feeling that nothing will whose demands and expectations of education and science to com- change, improve or open up is exceed the capacity of the system, pete with America, but in the end exacerbated by the likelihood of can play the same role as the rel- created pressure from within the Mr Putin’s return as president. atively affluent Soviet intelligen- system that it could not contain. His restoration will be largely tsia who helped to sweep away This is one reason why Mr Putin is symbolic, since he never let the Soviet Union. so keen for Russia to have a visa- power shift out of his hands. But In the 1980s the intelligentsia free travel arrangement with the it does, nevertheless, symbolise a believed that removing senile rest of Europe. The other is that it reversal, rather than a forward Communist apparatchiks would would give the Russian elite un- movement. be enough to put the country on a hindered access to their European And the roots of unhappiness path towards normality. Millions properties. go much deeper. After the collapse of young technocrats who faced Yet it is important to remem- of the Soviet empire, the country spending the rest of their lives be- ber that Russians are not going to was left without a clear sense of hind the Iron Curtain, unable to emigrate in their millions. The purpose or destiny. After seven fulfil their ambitions, did not ex- overwhelming majority will stay decades of trying to set up Utopia, pect the Communist system to at home, discontented. The big Russia’s only aim in the 1990s was collapse; but when Mikhail Gor- question is what will they do? Will to become a normal, civilised bachev started his reforms, they their frustration be transformed state. But two wars in Chechnya were a powerful force behind into protest and an attempt to and the destruction of Yukos, Rus- them. change things? Or will it simply sia’s most successful oil company, Today, Russian society as a be dissolved in the general con- in 2003 put an end to that hope. whole is much more cynical and formism and cynicism which has Mr Putin has stirred and ex- distrustful than it was in Soviet been nurtured to such harmful ef- ploited the country’s nostalgia for times. Aggression, hatred and na- fect over the past decade? its Soviet past. But the narrative tionalism have risen to levels not The stagnation in the dying of resurgence and restoration was seen even after the Soviet collapse days of the Soviet Union was both combined with contempt for ordi- in the 1990s: 34% of Russians more restrictive and more produc- nary Russians who, in the view of “want to shoot” those they blame tive. Russia’s current stagnation is the Kremlin’s rulers, were not for their troubles. As for the mid- comfortable for most people, but ready for democracy. The double- dle class, it is much less cohesive © 2011 The also less promising. It may take a digit growth of incomes masked and idealistic. It is also less des- Economist new generation to make fiercer problems for a while, but when perate. “They would rather ex- Newspaper demands on the system and force growth slowed down stability change their country than change Limited. All change. But what kind of change turned into immoveability. it,” says Mr Mau. rights reserved that will be, nobody knows. № 9 (21) october 2011|the ukrainian week|21 neighbours| eu & ukraine Greek Consequences The EU is leaning towards signing an Association Agreement and Free Trade Agreement with Ukraine but ratification will depend on whether political repression stops

Author: Ploshchad (Red Square), Rome has less individual. Reluctant to spend Alla Lazareva the Capitoline Hill, Berlin has the extra cash, Europeans are afraid of Brandenburg Gate and London has new expansion eastwards. They all he crisis in Greece potentially its Big Ben, while the person on remember how much it cost them followed by one in Portugal, EUROPE TAKES the street have no idea what Kyiv is to bring East Germany, Poland and Ireland, Spain and Italy has A BREAK. known for”. the Czech Republic up to the West- put talks of EU enlargement The future of “Perhaps, older people remem- ern standard. They simply have no T the Association on a back-burner for the time be- ber Ukraine as the producer of a available cash for Ukraine, Mol- ing. The idea of solidarity between Agreement lot of coal and fed the whole USSR dova or Georgia at this point.” and the FTA Searching for a way out of its the poor and the rich used to be in- between EU with bread,” says Valérie Serère, a teresting only for idealists in better and Ukraine communications expert. “Chor- own crisis is itself quite debilitating times. Currently though, the realis- will be known nobyl is another symbol. But for for the EU. Gerhard Schröder, ex- tic prospect of lending more cash to in November at most people in France, Belgium Chancellor of Germany, currently Greece, Spain and Portugal is met the earliest and Spain, Ukraine is like a face- employed by Russian Gazprom, with little enthusiasm by Old World tax payers, making it more difficult for European politicians to pass un- popular decisions through parlia- ments. Keeping power and ensur- ing a safe political future is also be- coming a challenge. In such a turbulent context, the issue of Ukraine is in second or third place. Most often, it comes up in debates about relations be- tween Kyiv and Moscow and the premonition of a possible gas war. The second most important issue is undoubtedly the political perse- cution of opposition leaders. The Ukrainian government has failed to convince the world that Ukrai- nian judges are “completely inde- pendent.” The pathetic attempts to blame conflicts with the Kremlin on Western leaders who “are far too critical of Ukraine” have been a fiasco as well. Official Kyiv contin- ues to hamper Ukraine’s progress towards its declared European choice. EASTWARD FROM THE EAST “The average person in France knows very little about Ukraine,” says Daniel Desesquelle, host of Carrefour de l'Europe (The Cross- roads of Europe), a popular pro- gram on Radio France Interna­ tionale. “Generally, the French think of Ukraine as a European suburb somewhere behind Poland, Eastward from the East. This country generates very few sym- bols. Moscow has its Krasnaya 22|the ukrainian week|№ 9 (21) october 2011 eu & ukraine|neighbours suggests that Europe should turn “Ukraine is not Croatia. It has There is another factor that into the United States of Europe. 47 million people, not 7 million,” clearly affects the dialogue pro- “This is the best way to withstand explains an MP from France’s rul- cess: the coming winter and the competition from America and ing Union for a Popular Move- anticipation of a new gas war, Asia,” Mr. Schröder comments. An- ment defensively. “As long as 27 something Moscow is insistently gela Merkel and Nicolas Sarkozy EU members do not agree on se- preparing Western consumers for. are proposing the creation of a “real curity, foreign or monetary policy, “Euro­­pean capitals prefer to keep European government”. Behind the nobody is in a rush to invite new some of their cards out of Russia’s scenes EC members are thinking members.” reach, just in case,” claims econo- about the establishment of a com- This is all true, yet there was mist Gabriel Dufour. “That said, mon finance ministry, which would less talk of Ukraine’s population the EU still has no common en- report to the European Parliament. in 2009 when the Eastern Part- ergy policy. But it’s not only Obviously, the Greek crisis has nership project was approved. “I Ukraine, but Poland, Germany, clear political consequences in ad- Greece and Italy as well, that seek dition to financial and monetary to review their contracts with Gaz- ones that directly affect Ukraine’s Euro­­pean capitals prefer prom however they can”. prospects. Only a few years ago, to keep some of their cards Meanwhile, the Ukrainian Western diplomats said that the government is inexhaustibly giv- Eastern Partnership program out of Russia’s reach ing interviews to the Western me- should be seen as a warm-up be- dia, delicately blaming current fore the competition to join the have always said what the West conflicts with Russia surrounding EU. Today they open their eyes should have admitted a long time gas contracts on those who have wide in private conversations and ago: Ukraine is 100 times more been criticizing official Kyiv for claim that “it would be wrong to European than Turkey,” Bernard manipulating the judiciary. “Your make a link between Eastern Part- Lecomte, a writer and publisher, criticism encourages Russia to nership and candidacy.” insisted back then. “Europe with- think we’re in a weak position and out Ukraine is a historical and gives us ultimatums”, complains geographical misunderstanding!” Mykola Azarov in an interview for What has changed since then? Le Figaro. “Our door must have shrunk,” a “The Party of Regions takes ev- French MP admitted. ery opportunity to stress that politi- cal repression in Ukraine is none of SYMBOLS AND PRACTICES Europe’s business”, Olha Herasym- Most European experts expect the iuk, a member of Ukrainian delega- EU to sign an Association Agree- tion to PACE and Member of Par- ment and an FTA with Ukraine at liament, told The Ukrainian the end of 2011 as planned, despite Week. “They have been showing the furious statements of Western up more often at PACE Committee leaders about no agreement as long meetings just in case they have to as Yulia Tymoshenko is behind defend themselves. They do so even bars. Also, they claim that signing when the issue of repression is not alone does not launch cooperation on the agenda”. under new rules. Ultimately, signing a new “The ratification of agree- agreement with the EU is impor- ments by EU-member parliaments tant for official Kyiv, at least sym- will be a big test for Ukraine,” says bolically. However, that doesn’t political analyst Maurice Dupré. mean that the government will “Keep in mind the words of the rush to add any practical sense to French Minister of Foreign Af- the document. What for? The fairs, Alain Juppé, that the ratifi- agreement is a perfect chance for cation, not the signing of the those in power to advertise them- Agreement is impossible until Ms. selves prior to the parliamentary Tymoshenko and other leaders of election, and what they will do Ukrainian opposition are set free next – we’ll see later. and all groundless charges are As for the EU, the test of its at- lifted.” titude towards Ukraine, as well as It makes little sense for Brus- Georgia, Moldova, Azerbaijan and sels to slam the door in Kyiv’s face. Armenia, will be participation of The gesture of signing the Associa- the Eastern Partnership summit tion Agreement does not take on 29-30 September in Poland. Al- much effort. The implementation, though Angela Merkel has already though, might serve as grounds for promised to attend, the French profound dialogue on real compli- government has been hinting that ance with European values, not a Mr. Sarkozy will probably not go to pretense thereof. In this case, the Warsaw, but in all likelihood, will wolves would be sated and the send his Prime Minister François

photo: reuters photo: sheep wouldn’t be touched. Fillon. Also symbolical, isn’t it? № 9 (21) october 2011|the ukrainian week|23 economics|gas deals WAR AND MYTH The uproar surrounding the gas wars hides the real roots of Ukraine’s energy dependence. It originates from oligarchs who prefer to not to modernise their plants and rely on their shadow arrangements with Russia

Arguments in favor Arguments undermining of the Ukrainian government OLIGARCHS THE KREMLIN the Ukrainian government Key arguments of both parties

There are many arguments to help Ukraine cut the price of Russian gas yet the government might have a hard time using them, since the Kremlin holds enough trump cards of its own

A series of European companies are Dome ic political processes, such as repressions, successfully negotiating or winning price cuts undermine the EU’s tru in the arguments from Gazprom in court presented by Kyiv; Russia contributes to anti-Ukrainian and anti-Naftogaz propaganda Ukraine guarantees that gas price debates with its own tools with the Russian Federation will not affe the Similar to 2009, Russia might once again bleed transit of Russian gas to Europe off the gas pipe and accuse Ukraine of “non-authorized gas extraion”, with the Under the intergovernmental agreement support of such atement of Russia-friendly dated 2004, the annual supply of gas, transit observers in EU countries terms and the price is determined in a joint protocol of the governments The parties have not been meeting contra terms, therefore the Kremlin will mo likely Kyiv might announce the division of Naftogaz. announce the contra invalid As a result, the party to 2009 gas contras will no longer exi Russia has raised the issue that Naftogaz mu have a successor in case the contra is deemed invalid to meet the contra liabilities. Otherwise, The government talks of plans to cut the Russia will demand that the Ukrainian State consumption of Russian gas covers expenses by 10bn cu m in 2012 Moscow insi s on the “take it or not, but pay for The government plans to art the it” principle: even if Ukraine does not use the conruion of the NLG terminal amount of Russian gas determined in the on 1 January 2012 contra, it mu ill pay for the contraed amount The Energy Miniry is announcing plans to increase the domeic extraion of gas to The Committee for National Projes will not 27bn cu m over a period of five years. The launch the feasibility udy for the NLG terminal until Oober. The udy itself will take another government is also talking about shale gas 4-5 months extraion (deposits in Ukraine are eimated at 5-8tn cu m), coalmine methane and so on. Using alternative energy sources does not affe For this purpose, Ukrhazvydobuvannia (the the current gas price. Inve ors are scared off by bigge gas extraing company the poor business environment, non-transparent in Ukraine, a subsidiary of Naftogaz) signed decision-making by the Ukrainian government an agreement on cooperation in exploring and the risk of seleive ju ice and extraing carbon in the Dnipro-Donetsk basin with Shell. Similar talks continue Pro-Russian lobbyi s within the Ukrainian with other transnational companies political e ablishment

24|the ukrainian week|№ 9 (21) october 2011 gas deals|economics Authors: ses moves and 18 months after you have to pay for it.” Konstan- Oleksandr Kramar, undertaking relevant commit- tin Simonov warned that Ukraine Rostyslav Pavlenko ments - a requirement for joining would “have to pay for the gas it the Energy Community. did not receive as well as penal- krainian and Russian offi- However, the problem of ties… in the amount of up to cials keep reciting their Ukraine in its gas conflict with 300% of its value. Such is the gas parts diligently in the play Moscow is the latter’s utter con- business”. Ucalled “the gas war” yet mu- viction that Mr. Yanukovych’s re- In addition to firing arguments tual frustration can no longer hide gime is bluffing and is incapable at each other, Russians have behind words and gestures. The of bing independent of Russia’s turned on their TV. Local TV chan- Ukrainian government did not ex- energy hold. Konstantin Simo- nels, including the state-controlled pect Russia’s tough stance on gas nov, President of the Russian Na- Channel One, pour criticism on price. It looks like the Party of Re- tional Energy Security Fund Viktor Yanukovych. They mention gions has convinced itself that (NESF), has admitted that Gaz- every tiny detail, from broken standing alone by the steering prom will run into big troubles promises to Russify Ukraine, to the wheel in Ukraine is sufficient for should dramatically Kyiv cut its rejection of the Customs Union the Kremlin to make concessions. imports of Russian gas. “These and integration of gas transport Russia has underestimated the statements are a typical trick of systems. motivation of Mr. Yanukovych & Ukrainian government,” Mr. Si- Co to administer the resources of monov claims. “When our talks European perspective the country they rule without Ukrainian politicians say that they handing over its sovereignty to are still hoping that negotiations bodies where the Russian Federa- decision-making in Ukraine will continue. Regardless of the tion controls over 2/3 of all votes, relies too heavily ever more heated statements such as the Customs Union. made by both parties, on 6 Sep- Yet, saying that the “war” be- on the short-term tember, Naftogaz announced that tween Russia and Ukraine is inevi- interests of oligarchs it had paid USD 487mn for Rus- table while the government is sian gas supplied in August. Al- fiercely protecting national inter- about gas price end in a stale- though the price will grow to USD ests is an over-simplification. mate, Ukraine always says “we 354 and USD 388 per 1,000 cu m don’t need your gas”. The Ukrai- in Q’3 and Q’4 this year respec- Exchange of greetings nian government probably thinks tively, Naftogaz says nothing of its On 29 August, Mykola Azarov that this is an effective way to ex- intentions to stop meeting its con- said he had warned Vladimir Pu- ert pressure on the Russian Fed- tract liabilities. tin that: “You are pushing us into eration, but in reality, it has no Both Kyiv and Moscow are a dead end where our only way choice other than to continue doing their best to present them- out will be to terminate the con- such imports”. selves as perfectly compliant tract.” The contract entails nego- This is why Russia is deter- with international law in front of tiations whenever any party mined to break Ukraine’s resis- the EU, the third party in the gas claims the market situation has tance, saying that Kyiv must meet triangle and the major consumer changed dramatically and the the commitments undertaken ear- of Russian gas. If the situation price no longer meets the market lier; that it is “bluffing”; and that goes so far that Ukraine decides value of gas. Should the parties Ukraine should join the Customs to stop fulfilling the contract, it fail to come to a written agree- Union “completely” and the unac- will be the EU’s position that will ment about price review within ceptability of any other form of determine the winner. In the three months, each of them has cooperation. On August 31, Dmitri earlier conflicts of 2006 and the right to take the case to arbi- Medvedev went as far as to say 2009, the governments of Uk­­ tration in Stockholm. that Russia was “subsidizing” raine and Russia managed to Later, news surfaced of a po- Ukraine while Premier Putin once come to terms without involving tential radical mechanism for the more repeated his usual mantra the EU, even though the quality liquidation of Naftogaz and the Kyiv wants to buy on liberation from the “dictator- of the final compromise raised establishment of three separate Russian gas for ship of transit countries”, as he questions. However the experi- companies on its basis for transit- opened the “North Stream”. ence of 2009 showed how skill-

ing, selling and extracting gas, as USD 230 Lower-level Russian officials fully Russia manipulates its le- per 1,000 cu m provided for in the EU’s 3d En- expressed themselves more har­­ verage to affect public opinion ergy Package. On 2 September, shly. Gazprom CEO, Alexey and politicians in EU countries, Viktor Yanukovych instructed the Miller, stated that there was only starting with the circulation of government to submit draft laws one way in which Naftogaz could information that it is namely be- on the amendment of laws for re- be re-organized – by means of a cause of Ukraine that Europe forming Naftogaz “as a result of merger with Gazprom. Other- faces the threat of “cold pipes” Ukraine’s joining the Energy wise, Russia would follow a sin- that are empty of Russian gas Community and the need to adapt gle-minded policy of forcing the and ending with pro-Russian ad- Ukrainian legislation to that of the company to go bankrupt. “In any vocates calling on the EU to im- EU” to the Verkhovna Rada for case, Naftogaz will pay for at least pose sanctions against Ukraine. consideration. He did this two and 33bn cu m of gas,” Mr. Miller In 2011, Ukrainian govern- a half years after signing the Brus- said. “These are the terms of the ment has done everything possi- sels Declaration that entailed the- effective contract: take it or not, ble in domestic politics to turn № 9 (21) october 2011|the ukrainian week|25 economics|gas deals European countries against it. The role of oligarchs Virtually everyone has already Russian gas covers the needs of big companies. The public use gas extracted claimed that proceedings against domestically. Consumers of expensive Russian gas include huge industrial opposition members were politi- plants that are mostly owned or controlled by oligarchs. However, cally motivated and that Yulia the government is the one that negotiates about gas imports, frequently Tymoshenko’s arrest was the fi- leading to the implementation of opaque scams. nal straw, as Europeans mostly dropped diplomacy when speak- GAS SOURCES IN 2010 ing to the Ukrainian government. Naftogaz of Ukraine’s plan – 60.89bn cu m. Actual amount – 57.6bn cu m The French Ministry of Foreign Affairs has even brought into IMPORTED GAS question the signing the Associa- 20,67 tion Agreement should political bn cu m persecutions not be brought to an end. While we share the frustra- 13,22 bn cu m **3.77cu m were pumped into tion of the Europeans, at the Domestic extraction underground storage facilities in 2010 same time, it is impossible to for- ■ Ukrhazvydobuvannia – get something else: taking away 14.75bn cu m the prospect of Ukraine joining ■ Ukrnafta OJSC – 2.87bn cu m GAS ■ Chornomornaftohaz – 1.1bn cu m IN UNDERGROUND the EU will have a totally oppo- ■ Other gas extraction STORAGE* site effect to the original goal. If companies – 1.95bn cu m 27 bn cu m this happens Kyiv will lose any reason, even if purely formal, to m m

comply with European norms. ne i ro The oligarchs, in ttheir turn, ra might be tempted to “sell every- thing and flee this hopeless coun- THE GAS CONSUMPTION Naftogaz of Uk of Naftogaz try” rather than keep playing STRUCTURE IN UKRAINE IN 2010 f comes data All

against their Russian rivals hop- Service Statistics State the and ing to be accepted by the club of rich Europeans at some point in ■ Public consumption – 17bn cu m return. ■ Municipal heating companies – 8.3bn cu m The litmus paper regarding ■ Public institutions – 0.7bn cu m the position of European politi- cians will be discussions on the Gas consumption has barely declined, prospects for Ukraine’s signing of even though the government insists on the opposite the Association Agreement and (Total consumption, bn cu m) Free Trade Zone Agreement, which is scheduled for 12 Septem- 66,3 51,9 57,6 ber at the European Parliament. The draft resolution that has been ■ Industrial plants – 23.8bn cu m leaked to the Ukrainian media 2008 2009 2010 ■ Engineering and manufacturing needs – 6.59cu m calls on the EU to speed up the signing and ratification of these documents. But the resolution …until trouble sponse rather than courage. was drafted in July, before the ar- troubles you Ukraine lacks the former, since rest of Ms. Tymoshenko, thus the Ukraine’s problem is that it has ap- decision-making in Ukraine relies debate could turn out to be quite proached yet another “war” unpre- too heavily on the short-term in- passionate. pared. It is well known that victory terests of oligarchs. in wars comes from a systemic re- This sometimes results in par- Another battlefield adoxes. For instance, Mr. Azarov says that the construction of the Some European consumers of Russian gas have similar demands to those of Ukraine, and sometimes these are eventually satisfied. At the end of August, Leonidas Dragatakis , the President of DEPA, a Greek NLG terminal will start early next gas buyer, said that negotiations to cut the gas amount to an “acceptable” level of 70% of the contracted year, while the Committee for Na- 3bn cu m and the price of Russian gas under Greece’s long-term contract with Gazprom were completed tional Projects chaired by Vladys- successfully in July 2011. Italy’s Edison also negotiated price cuts with Gazprom at the end of July. lav Kaskiv reports on an upcom- Gazprom is in the middle of a big-time gas war with E.On Ruhrgas, one of its major European gas part- ing 4 to 5 month-long feasibility ners, that has already taken the case to the arbitration court. E.On Ruhrgas is seeking to adjust contract study. The latter looks more likely, prices to rates that meet spot prices for gas in Europe. since various interest groups are On 31 August, Radoslaw Dudzinski, Vice-President of the Polish PGNiG, claimed his company would con- still competing for control of “the tinue to demand that Gazprom cuts gas price for nearly 9bn cu m of gas that the company is buying new gas gate”, the two key rivals from it. Talks have been on-going since February 2011. If necessary, PGNiG will also to apply the arbitra- being PR’s Andriy Kliuyev and ty- tion court. In 2010 and early 2011, Russia’s gas monopolist negotiated a review of contracts with E.On Ruhrgas, coon Dmytro Firtash, or, more WIEH, WINGAS, RWE (Germany), GDF – Suez (France), ENI, ERG, Sinergio Italiano, PremiumGas (Italy), specifically, the entities linked to GWH Gashandel GmbH, EconGas (Austria), GasТеrra (Netherlands), EGL (a transnational gas sale company them. Similar issues arise when it operating in Europe), and SPP (Slovakia). All of the above examples involve companies in the process of comes to drawing investment into economic debates. With Ukraine and Russia, though, this is more about politics than anything else. the extraction of gas and its sub- 26|the ukrainian week|№ 9 (21) october 2011 stitutes in Ukraine, i.e. non-conventional carbon such as shale gas and coalmine methane. In the end, all the backstage hustling scares off investors and drags out the exploration and extraction of minerals that even without this will take more than one year. The effectiveness of decision making is another headache. Clearly, choosing advisors is up to the government, but talk of the “prospect of a gas war” sounds weird, particularly given the fact that the Presidential Administration employs citizens of the Russian Federation or people who are proud of working for the sake of “bringing Ukraine and Rus- sia closer together”. For example, in one of his in- terviews, Ihor Shuvalov, First Deputy Premier of the Russian Federation, accented his role in telling the Ukrainian government how Russia would respond to its decisions. Strangely though, the gas turmoil has bypassed Andriy Portnov, an Advisor to the President, who had drafted gas contracts together with Ms. Tymoshenko back in 2009, while now ob- servers claim he that was involved in the decision to arrest the ex-Premier that came like thunder out of the blue. On the whole, the maneuver space for the Ukrainian government will now be limited by a slew of factors including the chance to make Ukraine’s gas market more European under the Brussels Declaration – something that would, at the same time, significantly undermine Gazprom’s position – wasted for almost 18 months now; con- cessions in the form of state sovereignty and stra- tegic objects; the loss of potential allies in the Ukrainian political environment and electoral sup- port, something Moscow sees very clearly, causing the Kremlin to doubt the ability of the current re- gime to withstand a possible gas war; and the cool- ing of relations with the West. As a result, Mr. Yanukovych might face the fate of Mr. Lukashenko who found himself between the devil and the deep blue sea at a critical point in time, rather than continuing to walk a fine multi-vector line be- tween Russia and the West. On the one hand, the Be- larusian scenario means turning to the Customs Union and handing over Ukrainian gas transit system that will lead to the loss of sovereignty and eventually power. On the other hand, the current government’s preparation for a “war” with Russia looks more like a myth that the government is using to win back at least some of the electorate. Meanwhile, internal con- flicts within the party in power and the overall situa- tion with the decision-making process make it super- difficult to effectively combine the diplomatic, infor- mational, organizational and economic moves necessary for a successful campaign to change the ef- fective gas deals. Especially, given the crowd of Rus- sia’s supporters among those in power. Under such conditions, there is only a “slow”, yet only right way out. Having survived the shock of growing prices for fuels, as Western Europe did in the 1970s and East- ern Europe did in the 1990s, Ukraine should start cutting energy consumption in the economy, develop the domestic extraction of fuel and introduce alter- native energy sources. Movement in this direction should already have been started yesterday. The criti- cal growth of the gas price will, at the very least, pos- sibly push the Ukrainian government and oligarchs in this direction tomorrow. investigation|white pills & dollar bills You’d Rather Be Dead The war of pharmaceutical groups is leading to a catastrophically short supply of vital medicines in Ukraine

Author: to a higher administration. The The cost of pills in the country, Yuriy Nikolov Prosecutor General immediately in dollar equivalent, grew 100- responded to the case while pub- 300% over 2005-2009, while the oes Premier Mykola Aza­­ lic activists went straight to the hryvnia dropped 60% compared rov know that every 6th Health Care Ministry for help. to dollar. Ukrainian with AIDS, of The cargo was a salvation for the This all changed dramatically Dthe 24,000 officially reg- Ministry as it has been having a last autumn when President istered with the Health Care Min- hard time purchasing medicines Yanukovych appointed Illia istry, lives in Donetsk Oblast, the for HIV and AIDS carriers this Yemets, a well-known doctor, as harbour of his Party of Regions? year. The Ministry explained to the Health Care Minister. This This is not a rhetorical question, the Prosecutor General that this was the first step in the collapse nor is it meant to point the finger was not a case of smuggling and of the then available medicine at the troubled region. Civil ser- the investigators would have public procurement system, un- vants are now doing their best to THE BIG MONEY closed the case if not for the cus- der which the Ministry was at give the necessary salvation med- In money terms, the toms officers, who refused to re- least purchasing pills and vac- icines to people with AIDS in Do- pharmaceutical mar- call their complaints that served cines, even if it was at a price ket grew netsk and elsewhere. Meanwhile, as the ground for the alleged three times higher than normal. the Premier is personally ham- 17.7%, crime. As a result, the pills are Mr. Yemets immediately froze pering the campaign to purchase to UAH 19.7bn in still under arrest. all tenders of the Health Care 2010 pills for public money which was This case is just one element Ministry until the government recently launched by the Health in the pharmaceutical chaos settled all its issues with the big All public institutions Care Ministry. have held tenders to Ukraine’s hyperactive, or inert, players on the pill market. In The situation looks disas- purchase medicines government has dragged the winter rumours circulated of the trous. The last time the Health worth country into. Cynical as it looks, huge sums suppliers had to de- Care Ministry bought medicines UAH 5.5bn it was business interests that left posit at slate clubs to meet the was autumn 2010! Hospitals the hospitals short of medicines. needs of some of the Minister’s without aspirin is one thing, but The Health Care Min- assistants. This lasted until mid people who cannot survive with- istry has spent Monopoly pill pushers summer when journalists soun­­ out pills is something much more UAH 1.5bn Over the past few years a pool of ded the alarm because hospitals serious. at the tenders companies has emerged in had no, or a next-to-zero supply, There is, however, one alter- Ukraine that has been involved in of vital medicines. native supply channel for people The Ministry buys every large scale procurement of The Public Procurement with AIDS. An NGO established medicines based on medicines by the Health Care Newsletter’s investigations con- target state pro- by the international AIDS in- grams for specific Ministry. The most powerful firmed that the Ministry had been fected community imports the diseases, such as tu- players were entities owned by trying to do something. At least, it necessary treatment into Ukraine. berculosis, AIDS, he- Petro Bahriy and Andriy Lirnyk, announced the tender eventually. mophilia, cancer and But there is a problem, this year so on, for hospital though the industry looks Yet, nobody turned out willing to the government has rather alarm- treatment strongly fragmented to an out- take part in it. The whole market ingly clogged that channel. The sider. Still, numerous companies that had looked so fragmented be- NGO’s Dmytro Sherembei says On 19 July turned out to be related in differ- fore suddenly completely ignored the organization recently tried to the Health Care Min- ent aspects that were hidden the Ministry’s invitation, as if fol- import a large amount of medi- istry admitted from the public eye, such as off- lowing a wave of a magic wand, Ukraine has virtually cines for people with HIV and no vaccines for chil- shore zones, common addresses despite the huge annual budget AIDS, but filled in an old, now dren because the and remote, yet ultimate owners. for public procurements which unused, customs form, which was procurement plan Their growth peaked in 2008- exceeded UAH 1bn. Obviously, no has not been fol- a purely technical mistake. The lowed 2010 when Zynoviy Mytnyk was one said aloud who exactly was paper could have easily been re- running the Health Care Minis- holding the magic wand. filled instantly and the pills try’s procurements. Mr. Mytnyk would have arrived at their desti- was a member of both Yulia Ty- New kings bring nation in Donetsk. Yet, the cus- moshenko’s and Mykola Azarov’s new players toms officers who received the governments, getting to the lat- This was when the president per- shipment noticed a good chance ter through the quota for the sonally interfered, as medicine, to advertise themselves. They im- Communist Party. Clearly, this along with utilities and commod- mediately put the cargo, worth monopolized public procurement ity prices, is a direct electoral shot UAH 15mn, under arrest and re- system for medicines affected the in the government’s head. Mr. ported it as potential smuggling whole pharmaceutical market. Yemets was sent back to his hos- 28|the ukrainian week|№ 9 (21) october 2011 white pills & dollar bills|investigation programs and articles on the cat- astrophic shortage of medicines in hospitals, yet they never men- tioned the role of the ex-favorites in this sad outcome. Mykola Azarov did not take long to respond to all this. The very next morning after a report about the lack of medicines for hemophilia patients appeared on TV, the premier called this an emergency and instructed the Emergency Ministry to contact foreign producers and urgently purchase the medicines with no tender. Viktor Baloha, the omni- present Emergency Minister, hurried to carry out the order. With a list of a dozen foreign pro- ducers of the necessary pills from the Health Care Ministry in hand, he ran to buy something some- where. No one know what and where though, because two weeks after Mr. Azarov’s instruction there was still no news of any contracts for medicine supply. According to sources at the Health Care Ministry, handing the procurement budget to Mr. pital and replaced by Oleksandr trend will only become clear after Baloha was still better than noth- Anishchenko, a Donetsk-born the government arranges tenders ing. It makes the arrival of medi- medical bureaucrat. The new min- worth at least UAH 1bn. cines in hospitals more likely as ister launched the first public pro- Obviously, this case looks very no tender and no direct contacts curements of medicines, which much like corruption, with viola- with producers will prevent any- apparently affected the then key tions right on the surface. In fact, one from interfering with the players on the market. however, the tender has a justifi- procurement process. Yet, the ex- Mr. Bahriy’s Hanza company cation of sorts: at least it has oc- favorites have another bargaining still had its contracts but they curred, encouraging Ukrainians chip which they are apparently were incomparable to those of to hope that the medicines will trying to play. They can turn the the previous year in terms of pro- eventually arrive in hospitals. situation upside down, i.e. re- curement amounts. Back in 2010, Clearly, the ex-favorites could move Minister Anishchenko, the the entity had won tenders to not sit idle and watch outsiders one who stirred the medicine supply medicines and medical steal “their money.” At the end of procurement revolution. equipment worth UAH 564mn, July, Mr. Bahriy’s Hanza filed Premier Azarov talked of the confidently beating other public several complaints with the Anti- great likelihood of the Health suppliers. Meanwhile, Mr. Anish- Minister’s resignation as he took chenko brought companies that away a share of his Ministry’s had been dragging behind when medicine, along with medicine procurement quota. Mr. Mytnyk had been Minister, utilities and commodity For sick people, though, the shift to the forefront using some illegal of ministers is like a poultice on ways. For instance, the Health prices, is a direct electoral a wooden leg, or worse than that. Care Ministry’s tender to buy shot in the government’s Everybody knows that it was Mr. vaccines had only two price bids: Azarov who last year supported UAH 101mn from NVTs Bionika head Mr. Mytnyk, the minister who and UAH 108mn from Farmex monopolized public procure- Group, two companies with com- monopoly Committee about what ment for medicines. And it was mon owners. A big player on the they described as discriminating Mr. Azarov, also known as a pharmaceutical market said in an terms of the tenders by the Health friend of Mr. Bahriy, who openly interview for The Ukrainian Care Ministry. The latter termi- protected Mr. Mytnyk from his Week that this signaled re-dis- nated the tenders. Hanza with- PR colleagues when they blamed tribution of the Ministry’s tender drew the complaints a few days all possible tender flaws on the flows from Mr. Bahriy’s entities later but accomplished its task, “outsider” from the Communist to a group owned by Borys Ly- i.e. postpone the tenders. This Party. Could it be that if Mr. An- tovsky, another gray cardinal in aggravated the problem which ishchenko is fired, the premier the market. Whether these devel- was also fuelled by some influen- could once again step up for the opments will turn into a stable tial media frequently producing group? № 9 (21) october 2011|the ukrainian week|29 society|pedaling & happy Tour de Ukraine Ukrainians are switching to bicycles, pushing local authorities to develop the country’s infrastructure

Author: he Shevchenko part in down- Currently, the Lviv administration Inna town Kyiv has colourful iron is planning to design a large circle Zavhorodnia stands that kids just love. In around historical heart of the city Tfact, the place is one of the that will be built next year. Photo: very few bicycle parking lots in Mr. Shmid quotes a survey that Viktor Kruk town. Surprisingly, this one hosts found that 28% of Lviv’s citizens not a single bicycle most of the own bikes, while 83% support the time. Rough estimates are that development of bicycle lanes people in Kyiv own nearly 300,000 around the town. Moreover, the Accidents in Ukraine this year: bicycles. However, they have a sale of bicycles nearly doubles ev- hard time riding a bicycle from ery year in the city. 1,494 where they live to the city centre. Zaporizhzhia, Vinnytsia and car accidents As a result, the 20-piece parking Kyiv also have new separate lanes, involving cyclists. 153 people died and lot is almost always empty. while Yevpatoria (Crimea), Cher­­ 1,071 were injured. Cyclists in Ukrainian cities kasy and Dolyna (Ivano-Frankivsk Source: have two main options: risk their Oblast) are planning to build ones. Traffic and Auto- lives as they ride on the roads or mated Systems break traffic rules and take the Clumsy Kyiv Safety Center at the Ministry of Internal pavements. The third option is to Kyiv is, however, putting lanes in Affairs ride their iron horse solely in parks quite slowly. The first two are at or the suburbs. Most mayors pre- Zdolbunivska street and on Ba- fer to think of bicycles as just part zhana Prospect. “Dniprovska Nab- of a healthy life or hobby, rather erezhna has only a white line but than as a fully-fledged means of no low curbs. It’s impossible to transport. Some cities though have ride a bicycle there,” laments Iryna already planned, or embarked on, Bondarenko, President of the Kyiv developing bicycle infrastructure. Association of Cyclists, about other walking on the lane as they do not Sustainable projects of the city administration. understand what it is for. Therefore mobility The very first steps “The cycle lane at Rusanivska Nab- a cyclist can hardly ride the lane at principles Lviv has been the leader in terms erezhna crosses the exit paths from high speed. He will have to slow • Restricted traffic of private cars (higher of bicycle infrastructure so far. “Bi- the park in many places.” down at the very first curb or will parking rates and cycle lanes are constantly emerg- The program to improve cycle rush round the twist straight into a gasoline prices, cars banned from ing all over the town,” says Oleh lanes was approved in 2009. It en- passer-by. But the biggest question entering the city Shmid, Advisor to the Mayor on tails the construction of 17 routes, is where to go after the lane ends. centre, paid city the issue of Bicycle Infrastructure each 160 km long. Sadly, though, entrance for cars, high fines for and a keen cyclist himself. “Lviv the construction is taking quite a Interested parties violations of parking can park at least two hundred bi- while. Other than average cyclists, some rules and so on). cycles now.” At this point, lanes are being privately-owned companies are •More intense use of Developing bicycle infrastruc- laid on the streets which are under also interested in infrastructure alternative transport means, i.e. ture in Lviv is a promising trend reconstruction. The city adminis- development. They encourage encouraging people and the city is perfectly suited to it. tration has instructed shopping their employees to pedal to work, to use public “We’re doing everything methodi- malls to build parking lots for bi- and not always to sell their own transport, ride bicycles or walk. cally,” Mr. Shmid says. “We have a cycles next to the buildings too. bikes. “We not only produce medi- program to set up 268km of lanes Biltek Ltd. has recently won a ten- cines, but care about people’s within the next nine years and a der from Kyiv Road Service worth health,” Iryna Sytnykova, an em- separate bicycle network scheme UAH 1mn to design five lanes. ployee at a Kyiv-based pharmaceu- has already been approved. The In Iryna’s opinion the brand tical company, explains. “We want project will cost us UAH 59mn.” new cycle on Prospect Bazhana is people to be healthy and take to next to perfect, though it does have sports. We exercise every week and F.y.i. a few flaws: The Ukrainian are now riding between 50-70 kilo- Sustainable mobility is a way of moving around the town Week found a dozen high curbs meters training for the Kyiv-Lviv using any form of public transport, riding a bicycle or walk- there that do not make for what we tour in September.” ing. The term comes from the sustainable growth notion could call easy riding. The lane A Kyiv-based transnational IT that means meeting the needs of modern people without twists badly at one point and has company has an 80-piece bicycle exhausting resources for fulfilling the needs of future gen- only a few white marks along its parking lot next to its office. It is al- erations. length. Therefore, pedestrians keep ways filled with bicycles and every 30|the ukrainian week|№ 9 (21) october 2011 pedaling & happy|society

floor of the office has a shower cabin European expertise for those who arrive in need. “We do Some Ukrainian cities are getting our best to make it comfortable for advice on bicycle infrastructure our staff to take an alternative trans- development from the German port to work,” Eleonora Fedoriy, an Association of International Co- employee, says. Kyiv IT specialists operation (Deutsche Gesellschaft were encouraged to use bicycles af- für Internationale Zusammenar­ ter talking to their colleagues abroad beit – GIZ). “Ukrainian standards and the company’s management of lane construction are obsolete supported the idea. “The initiative today,” says Svitlana Nazar, coor- has come from us, not the US head- dinator of Sustainable Mobility in quarters,” Eleonora claims. “We the Cities of Ukraine. “Under the A TRICKY ROAD. realizes a rule which was imple- work with leading international current requirements they would Activists mark mented in the West a long time ago: companies and often talk to their take huge street and road space the road at the more roads, the more cars.” Un- staff about these issues. A healthy and modern compact cities cannot Volodymyrsky der the Strategy of Kyiv Develop- life style and environment protec- afford that. Hence the initiative to Uzviz in ment by 2025 submitted for discus- tion are now global trends.” set up a working group at the Min- downtown Kyiv sion, roads are supposed to cover However, cyclists can hardly feel istry of Regional Construction in to remind the space three times larger than they safe riding into town in Ukraine. “A order to update and adjust Ukrai- authorities of cover now. This, in turn, will lead to their promise to security guy did not allow me to leave nian standards to Western Euro- arrange a lane a growing number of cars that will my bicycle in front of the Mayor’s pean criteria.” there once again fill the roads at some Hall,” Iryna Bondarenko said. “You In reality, though, bicycle infra- point. This is not the way out of this can park a car there, but not a bike. structure development is hampered sort of transport collapse. Another guard at the WWII Museum by people’s mindset, not just legal “The Mayor of London gave said he would cut our tires if we didn’t requirements. “Ukraine is not im- Kate Middleton and Prince Wil- take our bikes away. We talked to the plementing the sustainable mobil- liam a tandem bicycle as their wed- museum director and he agreed to ity principle that has been the basis ding gift,” Svitala Nazar notes. arrange a bicycle parking lot but for transport development in Eu- “London is one city which is really asked us to find a sponsor for it, so rope for nearly ten years now,” Ms. implementing the sustainable mo- that is what we’re doing now.” Bondarenko claims. “Nobody here bility policy.” № 9 (21) october 2011|the ukrainian week|31 society|cybermen be transferred to Ukraine. The Turk- ish court rejected the request of the Who is scared U.S. Department of Justice to extra- dite him to the USA and instead sen- tenced him to 30 years in prison in of Ukrainian hackers? the spring of 2009. DARK MARKET So far Ukrainian cybercriminals have done damage The person who acted online used the nick “Maksik,” not the name of to Western Europeans, but they may target Maksym Yastremsky. Showing the Ukrainians at any moment link between a real person and a nick is one of the greatest challenges Author: them for in Ukraine, because they for both investigators and research- Bohdan Tsiupyn have stolen, at least until recently, ers like Glenny. “If Dmytro Holubov largely from foreign banks. “Another is Script, then he is one of the best yivite Vasyl did not lose aspect which makes Ukraine rela- known hackers of the past decade. much – a little more than tively safe is that majority of cyber- Script is also linked to another USD 200. But it remains a crimes target credit card owners,” Ukrainian hacker with the pseudo Kmystery who stole his money Glenny says. “Credit card data is sto- Boa – Roman Veha,” Glenny says. and exactly how. Never again will len online and sold all the time. Most He met him in Metropolitan Deten- he have trust in the shiny bank card of their owners live in the US, West- tion Center in Brooklyn, New York with the proud inscription “Visa.” ern Europe, Japan and regions like City. Veha’s case is shrouded in mys- All he knows is that in the far-away In 2009, Ukraine's the Middle East.” The number of in- tery, and his situation is somewhat Egypt, a country he has never been Interior Ministry set ternet users in Ukraine is growing like that of prisoners suspected of up a unit to fight to, someone withdrew 500 Egyp- cybercrime However, and has reached over 50% of the en- terrorism and kept in the Guantan- tian pounds from an ATM located the official Kyiv tire population. Ukraine's commer- amo Bay by the Americans. thought the unit cial and financial sectors are under in Cairo. This amount was charged would have too little The author even betrays a note to Vasyl’s account which he opened work and added pressure to offer a growing number of sympathy as he writes about Veha, a while ago when he, a student at human trafficking to of online services. who was arrested in Cyprus back in the time, was working in Europe. A their job description DarkMarket mentions several 2004: “It is important to remember respectable Western bank did not Ukrainians, including Dmytro Hol- that the court has yet to prove that credit the sum withdrawn back to ubov. The smart former Odessa resi- this Ukrainian is guilty, and the fact his account. Moreover, it charged dent stunned the author and his re- that he has spent many years behind him commission for a foreign cur- search assistant during meetings in bars is a serious concern.” What do rency transaction. And now his bal- 431mn Ukraine with his methodicalness, American investigators charge Uk­­ ance is ridiculously low. people have lost commitment to his goals and cha- rainian hackers with? How did it nearly risma, as well as his ability to evade, happen that Vasyl’s bank card sud- THIS PARTY DOES EXIST $114mn always with a nice smile, numerous denly had a clone which traveled to Misha Glenny, British researcher of to cybercriminals this awkward questions. One of them is Egypt and was used to withdraw a organized crime, can explain to Va- year, writes the this: How were investigative bodies, neat sum for someone else’s beneft? Norton Cybercrime syl how his money could end up in Report 2011 from including the FBI and the U.S. De- Glenny writes that initially, it all a thief’s pocket and who most likely Symantec partment of the Treasury, able to looks like a boring computer game helped the culprits. It took Glenny collect and transfer to Ukraine such with no-one reaching into anyone several years to collect materials for convincing evidence about his duties else’s pockets. Hackers’ work is his new book on how criminals use that he was arrested? He was moved purely intellectual. For example, the Internet. DarkMarket: Cy- from Odesa to the Lukianivka pre- they create computer viruses which berThieves, CyberCops and You trial detention unit in Kyiv where he clandestinely plant themselves in has just been published in Great spent about six months. Why did hundreds and thousands of comput- Britain, USA and Canada. His con- two Party of Regions MPs decide to ers to one day launch a coordinated clusion is that Ukraine is one of the get him released on bail? attack on the online databases of centers of international cybercrime Glenny gives Holubkov the ben- companies that store their clients’ and that Ukrainian hackers laid the efit of the doubt. He says that Hol- financial information. Some hackers foundation of the criminal industry ubkov may indeed not owe anything are commissioned by true criminals which has milked international fi- to anyone, as he claims. This case, to do so, while other simply offer the nancial and commercial institutions like many others in Ukraine, never stolen info for sale, again online. for billions of dollars. In 2010, Brit- reached court. After his release Hol- Glenny drew the idea for his ish banks lost ₤46.7 million due to ubkov went into politics: he founded, book’s title, DarkMarket, from a court internet fraud alone. In the US, the headed and officially registered the case about an internet forum with total losses in various industries for Internet Party of Ukraine in 2010. this name. Hackers used it to trade the same year stand at nearly $1 In one of his interviews he jokingly stolen information. DarkMarket was billion. said that he did not know a single closed in 2008 after an FBI agent had IN PURSUIT Glenny agrees that ordinary OF TRUTH: hacker and asked to be shown at infiltrated it under a well-chosen Ukrainians are not too concerned Misha Glenny least one. His party is actively lobby- alias. As a result, nearly 60 people about cybercrime. Hackers are not is not afraid ing for Maksym Yastremsky, former were arrested in different countries. put in prison in Ukraine itself. There to write about Kharkiv resident accused of online From hackers, information often seems to be nothing to prosecute organized crime crimes and imprisoned in Turkey, to goes into dirtier hands: bank cards 32|the ukrainian week|№ 9 (21) october 2011 One of these is your perfect travel companicompanion.

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are cloned and given to trusted peo- among young educated people who ple who are told to use them to with- have no prospects for applying their draw money. This is best done in talents and the inefficient law en- exotic countries like Egypt where the forcement and judiciary systems. police are less vigilant and more cor- Another reason is that influential of- All the highlights. rupt than in America or Europe. ficials or MPs offer protection. There are, of course, many other Glenny believes that China, Turkey Kyiv ways hackers can cooperate with and Russia are the biggest centers of vul. Lysenka 3 criminals but Glenny says this cybercrime, even though this type of tel: (044) 235-8854 method is one of the most common. criminal activity is less tied to state vul. Spaska 5 borders and national boundaries tel: (044) 351-1338 LINKED BY THE NET than other types of connections. The Povitroflotskiy prospekt 33/2 In the words of the British re- Pentagon announced this year that tel: (044) 275-6742 searcher, Ukraine has turned into cyberspace is the fifth space, in addi- Lviv one of international cybercrime cen- tion to land, sea, air and outer space, bul. Svobody 7 ters due to the combination of such in which enemy attacks and warfare tel: (032) 272-8574 factors as a high unemployment rate can occur. www.book-ye.com.ua persona|divine power The Quantum of Wisdom

Interviewer: Vladyslav Olkhovsky, Doctor of Physics Ihor Petrenko and Mathematics and Master of Theology, ladyslav Olkhovsky, Doctor of Physics and Mathematics talks about attitudes towards religion today and Master of Theology, Vtalks about attitudes to- wards religion today. Mr. Olkhovsky’s research fo- cuses on theoretical nuclear phys- ics, quantum mechanics, quantum electrodynamics and Christianity. He works at the Nuclear Physics Institute, the National Academy of Sciences, and holds a master’s de- gree in theology. The scientist sees no conflict between fundamental science and a religious outlook.

One of the pastors in Rome, when introducing me to the audience, said: “Professor Olk- hovsky will speak to you today as a Christian, not only as a scientist. Why would someone involved in physics and mathematics talk on liberal issues, such as “The Problem of Evil”? Here’s why: he lived in a totalitarian atheistic country for many years and saw a lot of evil.”

I’m from a family of a Navy serviceman. My father laid bombs in the Volga river near Stalingrad. My family was atheist. But I began to think about the mean- ing of life and read books on world- outlook back in school. In my fifth year at university, I asked someone at the Central Research Library, “Do you have a Bible?” They said, “Yes, but you need special authorization from your dean to read it.” Then I went to the seminary in the basement of the Andriyivska Church (on Andri- yivskyi Uzviz, Kyiv – Еd.) and saw two students playing chess. “Do you have a Bible?” I asked. “Of course,” they replied in Ukrainian but my re- quest to borrow one upset them. “Don’t you know Soviet rules? Reli- gious propaganda is prohibited.”

Yuriy Tsekhmistrenko, my scientific adviser, was a ­dissi dent. When the trial began against Viacheslav Chornovil1 in Lviv in 1967,

34|the ukrainian week|№ 9 (21) october 2011 divine power|persona

The Kyiv letter of protest Mr. Tsekhmistrenko was one of the a brilliant expert from the Nu­ reach everything alone would make After the start of the signatories in the letter of protest. clear Research Institute in any learning impossible. Later, us- trial against Viache- slav Chornovil in Dubna near Moscow. “You did a ing this belief as a foundation, ev- The Quantum of Wisdom 1967, a group of I often visited him at home. I great job, because if the slightest eryone develops his or her own rea- Ukrainian intelligen- asked him one day, “Why didn’t doubt emerges in science, it should sonable arguments and theories. tsia compiled a pro- test against political you let me sign the letter too?” “I not be covered up, the truth has to persecution and sent didn’t want you to feel pressured by be found”, this was how he sup- The attitude towards reli­ it to the leaders of the USSR. Film direc- my reputation as a scientist,” he said. ported our hypothesis. Some say gion as a reservation is only tor Serhiy Paradzha- Later the KGB did not permit Mr. that Chornobyl was the Wormwood possible from an atheistic an­ nov was the first to 2 signed it. Physicists Tsekhmistrenko to defend his doc- star from the Book of Revelations gle. Artists, writers and composers Yuriy Tsekhmistrov toral thesis on physics, he and his wife to John, and that could be true, too. realize that their work does not cover and Iryna Zaslavska, Iryna lost their jobs and his fate be- everything. Religion is something cyberneticist Viktor Bodnarchuk, mathe- came quite dramatic. One of my latest My colleagues from the Nu­ different. Anyone can be a believer - matician Anatoliy articles was a tribute to him. ­clear Physics Institute and I a physic, an artist, someone who is Skorokhod, authors and literary experts are currently working in a lab unemployed - anyone. This is be- Ivan Svitlychnyi, Va- When Chornobyl exploded that I head on the time analysis of cause religion embraces everything. syl Stus, Hryhoriy Mikhail Gorbachev asked us, nuclear reactions, radioactive decay I think that’s the sense of theology, Kochur, Lina Kos- tenko and Ivan Dzi- through the President of the Acad- and quantum processes in general. i.e. to show the unity of truth. uba, and artists Ivan emy of Sciences, to find the cause of Marchuk, Alla Horska and Viktor Zaretskyi the accident. Apparently, it was My Italian friend Erasmo There is only one truth. Ac- followed suit – in all, nothing but negligence. We remem- Recami, who is Catholic, and I cording to one theory, which was 139 signatures. Virtu- ally all signatories bered the Wigner effect in nuclear have created a new chapter in shared by Galileo, that there are suffered from repres- technologies when graphite changes quantum mechanics, focusing two paths which lead to the truth – sion at the hands of its features. Essentially, we criticized on time as a quantum observable. one is through nature and other is the Communist gov- ernment graphite reactors in general and Pro- It goes beyond nuclear physics. through religion. To this we can fessor Aleksandrov, a founder of the add: not two, but many. But it is soviet nuclear power industry, im- All scientists were theolo­ worth talking not about different plicitly. At that point, such reactors gians earlier, including Isaac truths, but about different perspec- qualified as the most reliable in the Newton, Johannes Kepler, Francis tives of the only truth, that is USSR. As a result of this criticism we Bacon and Galileo. Only later, after higher than the human mind. almost lost our academic status. a certain point in time, did some turn to atheism. If the truth exceeds the Later, I spoke about the di­ mind, this doesn’t mean that saster at the nuclear power Our post-soviet world has the truth contradicts the mind. plant with Yakov Smorodinski, many atheists and sceptics. The environment shaped by 70 No-one has managed to de­ 1 MP, long-time advocate of Ukraine’s independence and a key member of the People’s Movement of years of Marxist-Leninist ideology velop an effective model of the Ukraine political party is full of arguments against Chris- naturalistic origin of the tini­ 2 Then the third angel sounded his trumpet, and a great star, blazing like a torch, fell from the sky on a tianity. Many believe that science est living cell yet, let alone the third of the rivers and on the springs of water— 11 is absolutely flawless. entire biosphere. Therefore, the ar- (The name of the star is “Wormwood” (Bitterness)). A third of the waters turned bitter, and many people guments of atheists take a much died from the drinking the waters that had become bitter (The Revelation to St. John) “It’s inappropriate for an blinder faith to believe than con- expert in physics to conduct re­ templation about the wise Creator. bio ligious propaganda,” Anton Nau- movets, Vice President of the Acad- Science is changeable and Vladyslav Olkhovsky emy of Sciences, once said about me. its truths are relative, unlike Date of birth: 5 February 1938 He suggested that the Director of theological ones. For instance, 1960 – graduated with merit from the Physics Department Nuclear Physics Institute deals with the Bible, just like quantum physics, of the Taras Shevchenko State University of Kyiv, specializ- me. Surprisingly, though, even my does not define clearly how old the ing in nuclear physics atheist colleagues never judged me. I universe and the Earth really are. 1964 – Candidate thesis in nuclear physics 1978 – member of American Mathematical Society responded to this with an article on The Bible is not a textbook, nor a lab 1982 – Senior Researcher, Nuclear Research Institute the moral choice of a scientist and guideline, but it answers the key 1989 – Doctor of Physics and Mathematics (physics of sent it to the Newsletter of the Na- question – how to save yourself. atomic nuclei and elementary particles) tional Academy of Sciences. 1992 – Professor at the Taras Shevchenko National Univer- Whoever studies the laws sity of Kyiv People always believe in of nature, realizes that God is 1992 – Correspondence Member of the Italian Peloro Acad- something. Children believe their behind it, creating this har­ emy of Science Hunters (Accademia Peloritana dei Pericol- parents, students believe their mony. God is a brilliant physicist anti) in Messina and the Academy of Natural Sciences in teachers and scientists believe their and mathematician, while natural Catania predecessors who discovered some- and scientific apologetics only re- 1994 – head of the laboratory at the Nuclear Research In- thing earlier. Thinking is based on moves the artificial controversies of stitute of the National Academy of Sciences of Ukraine axioms, postulates and dogmas. Christian revelation and natural and 1997 – member of the New York Academy of Sciences Doubting everything and trying to scientific exploration. 2003 – Master of Theology photo: andriy l omakin photo:

№ 9 (21) october 2011|the ukrainian week|35 history|the breakup of rus No Unity, No Statehood The failure of Ukrainian elites to agree among themselves for the sake of independence in the 14th and 15th centuries led to the breakup of the Rus’ principality and incorporation of its parts into Poland, Lithuania and Hungary

Author: hen one speaks about manovych dynasty and the Lithua- of Galicia-Volhynia in 1323-40, Oleh turning points in Ukrai- nian and Polish fight over Galicia- was not a direct descendant of Ro- Odnorozhenko nian history, the first Volhynia.” This period is one of the man Mstyslavych via parental lin- Wdates that come to mind so-called dark ages in Ukrainian eage. The last representatives of are 988 when Volodymyr the Great history – we have virtually no sur- this dynasty on the Ruthenian baptized Kyivan Rus; 1569 when viving written sources from this throne were the sons of Yurii the Kingdom of Poland and the time. At the same time, the data we Lvovych – Prince of Galicia and Grand Duchy of Lithuania signed do have is sufficient to challenge Volhynia Andrii Yuriiovych and the Union of Lublin merging into these conclusions. Did the Ro- Prince of Lutsk Lev Yuriiyovych – the Polish-Lithuanian Common- manovych dynasty indeed cease to who likely died while fighting the wealth; 1648 when Bohdan Khmel- exist in 1340, and were Ukraine’s Mongols in 1323. Their relative, nytsky fought in the Battle of Kor- lands really divided between its King of Poland Władysław the sun, the second significant battle of neighbors? Short, wrote to Pope John XXII re- the Khmelnytsky Uprising; 1917, ferring to the Ruthenian princes as the year of October Revolution, and The last Ruthenian ruler his nephews: “We are grieved to 1991 when Ukraine gained inde- Formally, Yurii II Boleslav, son of say that the last two Ruthenian pendence. The year 1340 is also of- Trojden II of Mazovia and Maria, princes of Or- ten added to the list. Ukrainian his- daughter of Yurii Lvovych, who thodox origin torians usually take 1340 as the ruled the Principality who were an starting point of a period in which “Ukraine did not have its own state and foreigners ruled over its territory.” The cause is perceived to be “the dying away of the Ro-

36|the ukrainian week|№ 9 (21) october 2011 the breakup of rus|history These two entities did not dare at- tism connected him closely to the tack the Ruthenian principality, be- Ruthenian state and its elite. cause it protected them against the In foreign policy, Liubartas Golden Horde. This parity lasted naturally counted on his relatives, for a while after the death of Yurii II above all his brothers Algirdas in 1340 when he was replaced on and Kęstutis. Liubartas gave No Unity, No Statehood the throne by Liubartas. Kęstutis the land of Brest as a re- ward for military aid, though this invincible shield against the Tatars The arrival of Lithuania is erroneously interpreted by departed this life; this is the reason As far as Prince Liubartas and the some as its annexation to the we and our lands now face a clear nature of his rule is concerned, Lithuanian state. In turn, Yuriy, danger from the Tatars.” there is one incorrect view which the son of Narimantas and Li- Yurii II Boleslav was merely completely blocks an adequate un- ubartas' nephew, received from one of many who aspired to the derstanding of the political pro- the latter first Kremenets and later Ruthenian crown. Having dynastic cesses that were taking place in Belz. Liubartas also possibly ties to the Romano­­vychs, he was Ukrainian (Ruthenian) lands dur- helped his other relatives, the not, however, their direct descen- ing this period of transition. Li- sons of Karijotas, to take control dant. By 1323, there was an abun- ubartas is most often described in of Podilia to which his ruling dance of contenders for the throne. historical works as a representa- power evidently also extended. For example, the Pope recognized tive of an arrogant Lithuanian state When Casimir III of Poland that Heinrich II and Jan, princes in Ruthenian lands, while the ter- contested Liubartas’s rule and set The castle of Głogow (Silesia) and brothers- ritory he controlled is referred to his eyes on Ruthenian lands, the of Liubartas in-law to Lev Yuriiyovych, had a as a province of the “Lithuanian” help of brothers and relatives in Lutsk from rightful claim to the Ruthenian state of the Gediminas dynasty. proved crucial. Casimir III was re- a 19th cent. throne. The latter’s son-in-law, Li- At the same time, it is easy to lated to the last of the Romanovychs Drawing by Napoleon Orda, ubartas (baptized as Dymytrii), see that he was an independent and thus considered his aspirations Polish and son of Grand Duke Gediminas, ob- ruler – he did not depend on his for the crown quite legitimate. He Belorussian tained the land of Lutsk after his older brothers in any way, consis- made his first raid into Ruthenian composer and father’s death and maintained con- tently employed the title of a sov- lands in 1340, immediately after artist trol over its eastern part through- ereign ruler and used Ruthenian, the death of Yurii II, but succeeded out the rule of Yurii II Boleslav. rather than Lithuanian, heraldic only in capturing Lviv for a short As a contender for the throne, figures (a lion and a cross) which while and sacking the king’s trea- Yurii II was a sort of compromise to are also featured on his signet and sury. More coordinated action came bring balance to political forces in coins. Finally, his Orthodox bap- from Poland in the second half of Central and Eastern Europe, pri- the 1340s. marily between the restored Pol- ish Kingdom and the emerging Polish and Hungarian Grand Duchy of Lithuania. Expansion Casimir III seems to have sought a certain compromise with the elite

№ 9 (21) october 2011|the ukrainian week|37 history|the breakup of rus in the Galician portion of the Ru- sion, but the true cause behind the thenian principality. And as later disintegration of the Ruthenian events showed, he had some suc- principality was internal discord cess. The Sanok land was likely the rather than external invasion. This first to recognize the supremacy of entity had already faced external this Krakow king. In 1349, Casimir threats much more dangerous than III seized Lviv, the seat of the Ro- those that emerged in the mid-14th manovychs. Remarkably, this came century. amidst a plague epidemic among The main cause behind the po- the Golden Horde. The demo- litical catastrophe which befell the graphic catastrophe caused by the medieval Ruthenian state was the plague in the northern part of the deep internal conflict among the Black Sea region pulled the Mon- Ruthenian elites, namely between gols out of the big geopolitical the political leaders of Galicia and game of the era and greatly dis- Volhynia. This conflict started in rupted the balance of forces in the 13th century when the Vol- Eastern Europe. hynian nobility was the bulwark of Consequently, Casimir III was the Romanovych dynasty in its bid able to disregard the Mongolian to unite Rus’, while various Gali- factor and instead focus on his cian groups took steps to limit this struggle against Liubartas and his dynasty’s power in Galicia or re- Lithuanian relatives and allies. move it completely from the Gali- Prior to this, he signed an agree- cian throne. It was only the ment with the Hungarian king en- planned and coordinated action by titling the House of Anjou to the King Danylo and his descendants Polish and Ruthenian thrones if that significantly curbed separatist Casimir III happened to have no trends among the Galician boyars. male heirs. But with the death of the last Ro- The pivotal events in early manovychs, the old problems re- warfare took place near Belz, a key CASIMIR III The House of Anjou viewed the surfaced. Unlike his predecessors, fortified city in the defense system (1310-1370). Ruthenian principality as a sepa- Yurii II Boleslav did not have the of Western Volhynia. A prolonged Was the Polish rate polity in a union with the reliable support of the local elite. siege during which King Louis of king who Kingdom of Hungary. This ex- Rumors of his poisoning may be Anjou was wounded ended in a annexed Galicia plains why, in 1372, Louis gave the false, but they are a good indicator to Poland peace treaty signed in 1352. The part of Ruthenia he controlled to of the atmosphere of distrust and sides agreed that Liubartas would his relative, Władysław II of Opole confrontation that reigned in the “keep the Volodymyr, Lutsk, Belz, who used the title of a sovereign Ruthenian court. Chelm and Brest lands in their en- ruler. The close political connec- Liubartas found himself in an tirety,” while “the kings would tion with Hungary was severed in even more complicated situation: keep the entire Lviv land.” This 1387 when the Ruthenian lands his rule was strongest in Volhynia, treaty was clearly a tactical move, were invaded by Polish troops loyal which is why he chose Lutsk as his because one year later warfare re- to Queen Jadwiga and King Con- seat. In Galicia, however, he had sumed and continued with vary- sort Władysław II Jagiełło who es- limited power and ruled through ing success until 1366. The second tablished the rule of the Polish his authorized representative stage of the confrontation over royal house. However, the Ruthe- Dmytro Detko (Diadko) who ex- Ruthenian lands ended, again, nian principality had a measure of pressed the political interests of near Belz, but this time Liubartas political distinctness until 1434 the Galician elite. The latter evi- was clearly on the losing side. He when its lands were incorporated dently liked the idea of breaking retained Lutsk but was forced to in the Polish kingdom. away from the rest of the principal- give up Western Volhynia in which ity into a distinct polity which his relatives and former vassals Internal discord seemed to offer the best possible ruled. The grand Ruthenian principality access to power for the local aris- It was only after 1370, the year retained its independence through- tocracy. Casimir III died, that Liubartas out Liubartas’s rule until 1384. But succeeded in regaining control the protracted and exhausting Serving foreigners over Western Volhynia, but the en- struggle for keeping it united and Just as in the 13th century, the way suing war against Louis, Casimir’s reliance on Lithuanian military aid to accomplish these political plans heir and king of Hungary, Croatia, inevitably put this polity out into was to throw support behind for- Poland and Ruthenia, did not give the political orbit of the Lithua- eigners aspiring to the Galician either side a clear edge. The an- nian-Ruthenian state. Liubartas’s throne – this time Casimir III, cient Ruthenian principality was son Fedor lost Lutsk in 1386 and Hungarian King Louis of Anjou split into two entities, both called Volodymyr in 1393 after which and their successors. In the politi- “the lands of Ruthenia” but politi- only smaller principalities in the cal inner circle of the above rulers cally associated with different ex- region survived. The dramatic there were numerous representa- ternal forces – the Hungarian-Pol- Podillia coin transformations that took place tives of Ruthenian nobility. ish and Lithuanian-Ruthenian co- of Kostiantyn here in 1349-87 are usually taken These people actively sup- alitions. Koriatovych to be a result of neighbors’ expan- ported the Hungarian and Polish 38|the ukrainian week|№ 9 (21) october 2011 LIUBARTAS (1300-1383). A Lithuanian who turned into a "political Ruthenian"

PAST GLORY. The stamps of Ruthenian nobility kings in their fight for the Ruthe- The Ruthenian nobility suf- nian crown. Now, in the territory fered from internal rifts and was of a formerly united kingdom, Ru- unable to maintain political unity; thenian knights from various lands this was the main cause behind the shed their blood as they fought for disintegration of the Ruthenian warring parties. There were even state and its piecemeal incorpora- divisions within families. tion into other polities. Ruthenian The situation that arose in the (Ukrainian) statehood evidently Ruthenian principality was not did not cease to exist in the mid- unique. The withering of dynas- 14th century, but it was at this ties and the resulting crises were juncture that political unity was a hallmark of medieval political lost and the great state dissolved. relations. Virtually no European The one great Ruthenian state country was spared such pivotal which played a key part in Eastern periods of uncertainty and tribu- and Central Europe from the 9th lations. It was at times like this through the 14th century no longer that the elites’ political maturity, existed. In the second half of the responsibility and their ability to 14th century and the first half of keep internal unity and maintain the 15th century, Ukrainian lands stability in the country were turned into a complex conglomer- tested. ate of bigger (large principalities After completing a stage of and estates) and smaller (appa- fighting fraught with contradic- nage principalities) polities which tions among the elites and military could only occasionally claim a sig- and diplomatic confrontations nificant role in Eastern and Central with their neighbors, European European politics. Even though states either reached political unity Rus’ preserved the fabric of its gov- and restored their standing in for- ernment structures in most of its eign policy or formed dynastic territory (Volhynia, the Kyiv re- unions, thus becoming parts of su- gion, Polisia and Sivershchyna), pranational empire-like entities. from then on these local polities In the worst case, they fell apart, had to coordinate their political later usually losing political inde- development with the rulers of pendence and turning into satellite large multiethnic empire-like states of their more powerful states like the Grand Duchy of neighbors. In each of these scenar- Lithuania and Rus’ and later the ios, military-political elites played Polish-Lithuanian Commonwealth the key roles – the very existence which included the greater part of of any polity revolved around their Ukrainian lands in subsequent political will. centuries. culture & arts|poetry The Poems of Passion Donbas writers promote sociality

Author: sense of the epoch’s pulse and take first place, Ukraine is a very poor Bohdan Butkevych interest in it, shunned it. If you country, giving rise to a mass of read most of what the generation social flaws. Our elite is totally im- he writers from STAN associ- of the 2000s is writing, there is the moral and as distant from its na- ation have presented an an- impression that Ukraine is sort of tion as it probably was in feudal thology of social poetry in Lu- a second Poland, a typical Eastern times. It has no notion of honor or Thansk, provocatively entitled European country without any dignity, which is subsequently The Lessons of Troublemaking, specific problems; a tranquil coun- spread throughout the whole na- Passionate. Sabotage and Spying. The book is Kostiantyn try that has no collective mind tion. We are turning into a banana the first Ukrainian conceptual pub- Skorkin goes crippled by wars, repressions and republic with the speed of light, lication of this sort, bringing to- on his knees to famines or by the soviet burden. eating out the last soviet resources gether versatile writers under one show the role of But this idyllic picture has nothing we have left and saving nothing for book-cover. The Ukrainian social poetry to do with the real situation. In the the future. Week was at the presentation and talked to Luhansk-based writer Ko- stiantyn Skorkin, the mastermind behind the book and its editor.

We borrowed this scary ti­ tle from a propaganda bro­ chure of the Stalin terror ep­ och. We, the compliers and the au- thors of the selected works, want to caution the public of the looming danger of dictatorship the disturb- ing signals of which are first and foremost experienced by people from the art world. Today, the gov- ernment and conservative classes see poets, who do not shun social ulcers, as a potential threat to the ruling order. In their eyes, these po- ets are spies, who don’t recognize borders and bureaucratic patrio- tism; troublemakers as they teach the youth bad things; and sabo- teurs, since they do not bend to the government’s power.

The creation of this book took a long time, almost a year. Everything looked more like a dead end when we began to work on it, but some events shortly be- fore the publication were quite in- spiring. These were Lina Kostenko’s Diary of a Madman and the explo- sion of debate around Vasyl Shkliar’s The Black Raven. In other words, literature began to tackle is- sues of real concern to the public.

Here is a quote from Osip Mandelstam: “We live, but feel no country beneath us.” I’ve always wondered why first of all young writers who, I would think, should have the strongest 40|the ukrainian week|№ 9 (21) october 2011 poetry|culture & arts This town of mine The list of authors in our Where emo angels criminal. Real Ukraine, possibly vision of the current situation in her anthology includes Viktor Wander about stoned with the exception of Kyiv and Haly- rhymes. Oleksandr Syhyda, a Yanukovych. That’s our small And the night club chyna (Western Ukraine) is truly a unique, true Donbas poet whose Is called Armageddon trick for a wide audience. According terra incognita in art. It is neither il- stanzas, which appear to be poured to Oleksandr Syhyda, one of our This town of mine lustrated nor represented in the lit- from steel, but are yet sophisticated, Where Golgotha is re- poets, the past of the president’s placed by erary process. Never mind the aes- are a classical example of the art- poems is a mystery. We got them Waste heaps of bar- thetic whining about literature and work of an artist who lives among from a Donbas-based poet with a ren rock, art being too sublime for “everyday people and with people. We’ve in- Big ugly mugs in- pile of other manuscripts. Despite stead of icons life”. Of course, the USSR overfed cluded Russian poet, Andrei Rodi- his assurances, we didn’t initially pouring vodka. us with sociality in Nekrasov, Maya- onov, in the book because this per- believe that Mr. Yanukovych him- This town of mine kovski, Gorki and many others. But son, who grew up in Mytishchi, a self could have written this. But we Where this does not mean that there should town near Moscow, knows the other Porn barons are hunt- had to, after Ivan Drach (MP and ing humans be no social lyrics whatsoever. So- side of living in a big city known as poet) informed the country that our And dollars open ev- cial poetry is the artist’s conscious- a symbol of welfare and wealth bet- president writes poetry. Actually, ery door, ness; his payback of the debt to his ter than anyone else. Rodionov’s Where stars on epau- we’re still not completely sure that lets nation. Aesthetes will say an artist is poetry fits into the concept of this these poems were the product of Are all that matters. only in debt to his muse but I’m not social anthology so well, that we Mr. Yanukovych’s pen. A fragment of sure they’re right. History remem- couldn’t but invite him to take part This Town of Mine bers the writers who illustrate their in the project. Moreover, a wider Modern Ukrainian litera­ by Olena Zaslavska epoch in their artwork and become artistic geography always brings in ture has contributed so little to its symbols. After all, most people more benefits. the nation that it verges on the picture certain historical periods through a prism of the artwork that We’re not doing this proj­ reflect them. ect for money. We did it at our own expense and on pure enthusi- If prose cannot keep up asm. That’s why we uploaded the with life, it is worthwhile turn­ whole PDF book on STAN’s web- ing to poetry. However stereo- site right after the presentation. tyrpical this may sound, poets do However, we are planning to pres- have bleeding hearts and this raw ent it in all the largest literaty cen- emotion cannot but evolve into a ters including Kyiv, Kharkiv and rhymed piece. I can proudly claim Lviv. We would really like to bring that all the writers included in our it to Russia as well, especially Perm book fit 100% with the social crite- where Andrei Rodionov lives. We rion of their creativity. There’s been chose Luhansk as a starting point enough talk about Serhiy Zhadan because we wanted to create a who has always responded sharply symbol of a cultural wave moving to everything in our country. Poet against stereotypes from the East Olena Zaslavska has undergone a westward, i.e. from Luhansk to the huge creative evolution in recent western border of our country, and years from her erotic and intimate not because most STAN members lyrics to real civil poetry. Yaroslav live in Luhansk. It is as if we are Minkin, a public activist, has always laying down an artistic challenge stood out with the social direction from Donbas to the whole of of his creativity. Liubov Yakymchuk, Ukraine to join this movement of a recognized writer, also shares her non-indifference.

international experience Thomas Wohlfahrt, the founder and director of Literaturwerkstatt Berlin (Literature Institute) and curator ofL iterature Express Europe 2000 and Berlin poetry festival, comments on the role of poetry in life today: – Poetry can affect collective consciousness enough to inspire a protest. I once watched Serhiy Zhadan (one of the most popu- lar modern Ukrainian poets) read his social poems to music and young people dance enthusiastically. It was a celebration, these rhythmical moves to the cheerful “Hey, hey, hey!” was a chance to open the mind and the eyes wide! Poetry can do it all! Although this effect often lasts much longer than that. Another example of this influence is Hamada Ben Amor known as El General Tunissa, a reader of political poetry to rap music. He is believed to have inspired the Jasmine Revolution in Tunisia. He was put in jail while his poetry records spread online moving crowds of young people. People used his lyrics as slogans at protests. But this is a rare case. Chilean and German poets arranged an exciting campaign at the Berlin poetry festi- val last year – they threw several thousands of poems from a helicopter. That was ex- tremely efficient; like a rain of poetry. Some older people had tears in their eyes. This

photo: inga te l ikanova photo: reminded them of the time when airplanes shed bombs that ruined their cities. № 9 (21) october 2011|the ukrainian week|41 culture & arts|the pursuit of freedom Success Against All Odds The only Ukrainian on the British rating list of Top 100 Living Geniuses, artist Ivan Marchuk, could not stay abroad and opened an exhibit in his home village of Moskalivka

Author: tablished prize to a young artist. spite his non-involvement in pol- Marina Gnatenko He recalled how he was awarded itics, having only signed a few ap- the Lepky brothers prize. peals in support of the Moscow is paintings cost tens of Marchuk knows what it means dissidents. But this nipped his thousands euros and repre- to be a self-made artist. He was born career in the Union of Artists in sent Ukraine in the best ex- into a family of a hard-working, but the bud, which meant no studio Hhibition halls all over the poor weavers. He learned the art of and no exhibits. world, but he keeps working in a weaving the world into his mind Marchuk reacted with an out- small studio in the attic. frоm his father. Then followed seven burst of desperation over new re- Ivan Marchuk ignores his sta- The world has only years at the Ivan Trush School of pression, censorship, and the sti- tus of a living classic and leads a 99 Applied Art in Lviv, then service in fling atmosphere of the 1970s in more people Spartan lifestyle. like Mr. Marchuk the army followed by college…. As a Kyiv. He began to paint mazes with He looks young for his age, and student, he always ran away from no way out, and the characters of he has got more pep than many home, as far as possible. He fell in his contemporary paintings were young people. He gets phone calls love with Lviv at first sight. strikingly tragic. That was when he from all over the world, yet he is Later, he worked at the Kyiv In- got noticed. He was summoned to always alone. He says he has nei- stitute for Superhard Materials for the KGB office, intimidated, ad- ther a wife nor a muse. But he al- three years and Kyiv factory of deco- monished, but to no avail. He per- ways remembers his home village rative and applied arts. It would take sistently refused to notice the “op- of Moskalivka near Ternopil. And him two hours to cope with his re- timistic soviet reality.” he keeps painting it. sponsibilities, and he would use the “If you have a backbone, noth- This year, the main street of rest of the time to look for his own ing can break you down,” he says, the village leading straight to his individual style in art. He felt that he “but 10 out of 20 years I lived in museum was named in his honor. had to be different. And when he did Kyiv are completely lost. There is The artist was invited to be present find it, he said the biblical “I am!” nothing worse for an artist than at the inauguration. The street was “And then all the locks burst painting without exhibiting.” so crowded that he could hardly open, and my hand could hardly His first unofficial exhibit in the drive through in his gold-colored catch up,” the artist recalls. “For some Ukrainian capital took place only in Opel Astra. time, I didn’t even give names to my 1981, at the headquarters of the “There are still real men in the paintings. I was so terribly happy.” Union of Artists. “The line was as village, kind, sincere, and warm,” Marchuk’s works are executed in long as one at a store when every- says the artist. “It is next to impossi- an elaborate technique of hundreds thing was in short supply,” recalls ble to rally them for a formal meet- of intertwining fine lines. He dubbed Marchuk. “And two days later or- ing – but this time they all came. his manner of painting pliontanism ders came to remove the exhibit. I They decorated ‘my’ street and filled (from dialectal Ukrainian pliontaty – said, remove it yourselves if you all of the potholes in the road.” to knit, intertwine. – Ed.), and it is will, I’m not doing anything.” Marchuk brought a few more virtually impossible to imitate it. His Then followed exhibits at the canvases to Moskalivka, but there is country landscapes from the early Union of Composers, at the Library nearly no room to exhibit them. The cycles are even more unique, since of Medical Literature, and at Dr. village club building, which dates the paints are unavailable. “They Amosov’s Clinic. Those were places back to the soviet era, houses a school stopped manufacturing the tempera devoid of any ideological officialism. now and is not meant for storing I painted with back in the 1970s. The However, soon Marchuk’s work was paintings. But the artist has hundreds world does not know it, but it worked criticized in the soviet press with de- of pictures, and he is anxious to show like a charm for me,” he smiles, “I in- nouncing articles like Making Circles people all of them. Marchuk brought vented this technique in 1972.” or Making Progress? which ap- them all to Ukraine and was happy His works were a tremendous peared in Prapor Komunizmu (The when Viktor Yushchenko wanted to success, first due to the grapevine Banner of Communism) in 1982. open a museum of his paintings on and exhibitions held at home. But “Kyiv was still afraid to exhibit Andriivsky Uzviz in Kyiv. However, if you are engaged in something me at its galleries when Ternopil his joy was premature — now an of- unauthorized, you fall under sus- did it in 1986. Then there were ex- fice building and entertainment cen- picion. Moreover, if you arrived hibits in Ivano-Frankivsk, Kolo- ter will be built in that place. from Lviv, and have only a mod- myia, and at Shevchenkivsky Hai, Marchuk did not stay in est command of Russian, then a skansen in Lviv. However, the Moskalivka long before moving on you must be a nationalist. The big bosses from the Union never to Ternopil, to award a newly es- master fell among dissenters de- showed up at the shows.” 42|the ukrainian week|№ 9 (21) october 2011 the pursuit of freedom|culture & arts bio In 1989 the painter moved to Ivan Marchuk was Australia, and later, to Canada and born on May 12, the US. He recalls that at that time 1936, in Moska- he could have bought three or four livka near Terno- apartments in Kyiv with his fees, pil. After finishing they were so cheap. seven classes of secondary school Marchuk spent over 10 years in he applied for the the US. Over this time “nine department of Marchuks” were born: the artist kept decorative paint- experimenting with his palette, tech- ing at Ivan Trush nique, style, and forms. He painted School of Applied landscapes, surrealistic pieces, nu, Art in Lviv naïve, portraits, and so on. (1951-56) In 2001, after witnessing the 1965 – graduated fall of the Twin Towers in New from the Lviv Insti- York, he took a new look at his life tute of Decorative and returned to Ukraine. Since and Applied Art then, he has been working in an 1965-68 – worked old studio and jokingly calls him- at the Kyiv Insti- self an easel guy. tute for Superhard Marchuk believes that obsession Materials is the first and foremost quality for 1968-80 – an artist. “Art is not a mill. It re- worked at the Kyiv quires absolute concentration. If you factory of monu- are a run-of-the-mill artist, you have mental and deco- fun, sell your pictures, drink and in- rative art dulge in your pastimes… But if you 1989 – emigrated are a Van Gogh, forget about it. to Australia, later “I am not bound to a non-exist- moved to Canada and the US ing state. The so-called state so far called Ukraine is a Titanic. I am the 1996 – awarded kind of man who can break loose at the Merited Artist of Ukraine any moment and take everything with me, just like Shevchenko put it. 1997 – awarded When it is all sold out, when artists Taras Shevchenko National Prize of can’t look at it anymore because they Ukraine will either be eaten by dogs or shot, then I can run all the way where the September 11, 2001 – decided to road takes me. I don’t care if I die on return to Ukraine the road,” says Marchuk. He is convinced that it will take 2006 – the Inter- national Academy a hundred years and a complete of Modern Art in change of generations to uproot Rome admitted the soviet mentality. Marchuk to the “Ukraine has been in the state Golden Guild, of civil war for 20 years now. Un- now including der the soviets everything was so only 51 artists oppressed that no one dared say a from various word. Meanwhile now everyone is countries at war with everyone else, in the government, in art, education, ev- erywhere. This territory is suffo- cating in an atmosphere charged with malice, hate, and envy. People breathe it and become ill.” He says he could just as well live in Europe, in Prague or Krakow, where there is no big language bar- rier. “But then I think to myself, okay, I run away from here – and what then? People know that I live an honest life, in truth and justice. My way of life pleases both ordinary people and big bosses who don’t even know my work. But after all, it doesn’t really matter if they like my paintings or not.” № 9 (21) october 2011|the ukrainian week|43 navigator|shypit waterfall

Author and photographer: The Shypit waterfall and surrounding villages lure Dmytro Stakhovsky thousands of tourists from Europe and Asia

hypit or Shepit, the name of the waterfall, means whis- per in Ukrainian. This re- Smote place in the mountains has turned into a massive pilgrim- age spot. People following an “al- ternative lifestyle” from all over Europe have been travelling here for over 10 years. Hotels, restau- rants and tourist buses are mush- rooming, as Carpathian tourism evolves. CHILDREN OF NATURE “Shypit is a waterfall in the village of Podobovets, Volovets County, Zakarpattya Oblast. It is located by the Gemba hill 744 meters above sea level. The waterfall is nearly 10km away from Volovets railway station,” is the meager de- scription in guidebooks. Yet some people spend all summer here, returning every year. These children of nature, all kinds of punks, hippies and oth- ers, spotted the plateau back in the early 1990s. They have been travelling to hang out here ever since, coming from other parts of Ukraine and neighboring Euro- pean countries. Some hitchhike to the waterfall from as far away as Siberia, even with young children in tow. In the middle of summer, the huge plateau hidden deep in the Carpathians looks like the wild American West. Wigwams stand next to tents and young men and women frolic naked in pairs. This is a typical view here in summer. And if you decide to bring your kids here, don’t be alarmed when naked boys and girls, lathered in soap and completely naked, ap- pear on the upper level of the most 44|the ukrainian week|№ 9 (21) october 2011 shypit waterfall|navigator

aqueous cascade of the waterfall. They are not embarrassed. For them, it is just an opportunity to take a shower. The residents of the camp treat newcomers as if they were state reserves, especially a month after their arrival, when they have run out of cereals, cigarettes and tea. The least lazy hippies boost the welfare of the nearby villages. They are several kilometers away, so those who don’t mind taking a walk get all the fresh supplies – homemade cottage cheese, eggs, milk and wine, and at bargain prices. THE BORZHAVA PLATEAU The local population is no longer as poor as it used to be. Podo- bivka, one of the villages, now has newly-built restaurants and ho- tels, and a repaired skiing resort. The flow of tourists to the wa- terfall keeps growing, even in win- ter. Groups from hotels and re- sorts in Zakarpattya are trans- ported in to see the place almost every day. The entrance to the reserve, or rather the path leading to the waterfall, has a turnpike and a hut with a guard who collects two hryvnias, the equivalent of about 25 cents) as an entrance fee. You can get a coffee; eat banosh, a traditional Hutsul meal of corn flour boiled in cream, sprinkled with cheese made from sheep’s milk or mushrooms; or pick up some souvenirs. Tables with benches and huge trash cans are found closer to the waterfall. Paradoxi- cally, before the ‘furniture’ and ATTENTION! ONE NAME – different PLACES! the trash cans arrived, there was The waterfall, the river and the village, all called Shypit, are in fact different spots located far from each never any garbage lying around. other. Make sure you know which one you are going to or you’ll end up in the wrong place! River Shypit is Now, cultural tourism has in Zakarpattya, but a totally different county, while the village is in Kosiv County, Ivano-Frankivsk Oblast. reached even this remote spot, The well-known summer rock festival takes place annually at the Shypit waterfall. Lyubko Deresh, a young bringing cash to the locals. Ukrainian writer, made the place more popular after he mentioned it in his book A Little Darkness. № 9 (21) october 2011|the ukrainian week|45 navigator|shypit waterfall top 10 beautiful waterfalls on the planet In Pylypets and Podobivets, in and close – sites where mushroom Angel Falls, Venezuela, 979 m addition to the appearance of new grow can be found in spruce thick- hotels, many private homes have ets, which break up the ancient been built or renovated. This beech forest. shows the pretty good income that Swimming in the waterfall, the locals earn from tourists as especially naked, is a challenge they come to see the waterfall and even for the well-trained Shypit ski in winter. Green tourism is be- contingent. Some Carpathian riv- Victoria, the border between coming more popular and grow- ers warm up a little by mid-sum- Zambia and Zimbabwe, 128 m ing more civilized: decent indoor mer but here, the water is not just rather than outdoor bathrooms cold, it’s freezing, all year round. are no longer a wonder here, hot The entrance to the “shower running water, bicycle rental and cabin” is the most dangerous. To many other services have become get to the most convenient tor- Niagara Falls, the border be- a common thing. rent, falling off the cliff you have tween Canada and USA, 53 m More hotels sit along the Vo- to balance on the edge of a huge lovets - Mizhhiria road, namely in slippery rock with soap and towel Volovets, as well as in Huklyve in hand. After that, you do your and Skotartsky. They are all within wild dances under the ice-cold a radius of 15-20 km of the water- stream of water. fall so to get there by car is not a Those who prefer to refresh Kjosfossen, Norway, 669 m problem. New hotels charge UAH themselves, but in a less extreme 100-200 for a double room. form, can ascend a little higher The village of Izky, which is above the waterfall to beautiful about 2 km from Pylypets on the and convenient “bathing spots”, way to Mizhhiria, has become yet filled with the same crystal clear another tourist destination for and freezing water. It is no warmer skiing. It is a small resort with than in the waterfall but much Southerland Falls, New Zea- land, 580 m cozy wooden cottages, restau- safer. rants and a fantastic sau­­na – and From there you can walk to all this can be found right above a Velykiy Verkh (The Great Peak) highland stream. The classical and Stohy (The Heaps), the two selection of entertainment also local peaks. The latter is the high- made its appearance in Izky: with est peak of the Borzhavsky Range Yosemite Falls, USA, 739 m shashlyk at a Kolyba (a Hutsul- at 1,681 m. A strategic radio com- style tavern), coffee and a great munication station crowned by Hutsul sauna that for some rea- three locators – huge white son, the owners called “SPA globes – used to to be located House”. The locals offer their there. Even at such a height, own products, including fresh standing next to the globes that meat, milk, bread, vegetables look like tyrannosaurus eggs, a Reichenbach Falls, Switzerland, grown in the Carpathian gardens person appears small and help- 250 m and honey from their own bee- less. You do not need any equip- gardens. ment or training to get there but the walk is fantastic, with breath- WILD DANCES taking views and huge mouthwa- Turn left just before the waterfall tering blueberries. Waihilau Falls, Hawaii, 792 m and you will find a huge clearing In our case, the walk back was in the woods. This is a perfect more rapid descent, an escape place for a tent. We stayed right from the huge black cloud that over Shypit. The end of summer is can trap you in the mountains in a tranquil and quiet here. We are thick fog. At the same time, it was short of wood to burn though, as an opportunity to enjoy the fog, the hippies have burned every- picturesquely flowing down from Mutarazi Falls, Zimbabwe, 762 m thing. But mushrooms are plenty the hilltops like thick cream.

sightseeing St. Michael’s Church (1785) in Bodobovets is a wooden church with an old cross adorned with painted Bible scenes (1903) A spring of naturally sparkling mineral water, 7 km from Pylypets in the village Iguazu Falls, the border of Kelychyn on the Volovets-Mizhhiria road between Brazil and Argentina, 82 m Synevyr is the biggest lake and one of the seven wonders of Ukraine, located about 40 km away from Podobovets on the way to Mizhhiria, then on to the Synevir meadow Stohy Mount is perfect for the warm season. A gentle slope onto the Borzhava Range, about 8 km from the waterfall. 46|the ukrainian week|№ 9 (21) october 2011 underground portraits|the regions Sublime and Earthly Things Author: Daria Trusova

ai Guo-Qiang, the Chinese art- ist known worldwide for his visual effects at the opening Cand closing ceremonies of the Olympic Games in Beijing, de- scended 1,040 meters into a Do- netsk mine this spring. His ‘cover- age’ is presented in an art project displayed in the workshops of a one- time Donetsk plant, producing in- sulation materials, now known as the Isolation. Art Initiative Platform opened on 27 August through 13 November. Liubov Mykhailo­­ va,­­ the founder of this center, invited Cai Guo-Qiang to create a project in Donetsk, based on the unique features of the indus- trial valley of waste tips. Along with 18 local artists and a group of volun- teers, Mr. Guo-Qiang visited Artem- sil salt mine in Soledar and Oktiabr- sky Rudnyk (October ore mine) in Donetsk, to create gunpowder por- F ROM ORGANI Z ERS PHOTO traits of 27 miners using his signa- Portraits on the for the re-building of the railway – stadium or the newly-opened Push- ture special event explosion tech- shoulders: gun- “… can be compared to building a kin restaurant at the business center nique. He framed them in a similar powder images state and doing something good for owned by Borys Kolesnikov, Uk­­ manner to that used by workers to of miners one’s own home,” she explains. raine’s Vice Prime Minister and Min- frame the portraits of Communist The introduction of modern art ister for Infrastructure, where waiters leaders for soviet propaganda rallies performed by Mr. Guo-Qiang to Do- greet their customers with the words and titled the series “Monuments on netsk can truly be seen as a blessing “Would you fancy a drink?”, that will Shoulders”. The installation is lo- for Donbas. The Chinese-born and open the door for the people of Do- cated in the plant’s one-time work- currently New York-based artist netsk to the world community, It is as shop with the floor sprinkled with does not have the same kind of ag- if they are saying that they have to see ground minerals, salt on the right gression as that with which the who they are for themselves, and only and anthracite on the left. Visitors PinchukArtCenter, broke onto the then will the world notice them. Still, have to walk on the fruit of the Kyiv scene, to say the least. The there is a certain artfulness in the fact workers’ labor to see all the por- show, located in the partially burned that Guo-Qiang created the site spe- traits. They can use boot covers are down workshop No. 2 comprises an cific resorting to time specific. Ifhe available at the entrance to avoid exhibition of old railcars placed in a had combined them, we would not dirtying their shoes. line, each individually decorated, have felt any delight and nostalgia, Some people could find such swaying slowly with the help of small but fear and repugnance – the emo- angle of looking at the Donetsk-born engines, to the quiet sound of a ban- tions people experience when, for ex- site specific (a currently popular dura1 player, as if the cradles con- ample, staying out of the way of a concept, when an object of art is cre- taining our past are travelling young drunk guy (during the celebra- ated to fit a specific place) offensive. through an imaginary mine tunnel. tion of Donetsk Day in combination Others have objected to these work- On the curtain of each railcar, a with Miner’s Day), shouting “I’m so shops, where “people could be earn- video of soviet films from the rele- angry that I could beat up anyone I ing salaries”, be used for the presen- vant era is shown, ranging from the want… and I will be right!” tation of some kind of “art”. How- enthusiastic destruction of church One wants to believe that Cai ever, Liubov Mykhailova says there domes in the 1920s, right up to the Guo-Qiang's gunpowder will meet is no turning back as the white’n’blue Chornobyl newsreel from 1986. its original intent, to manifest those owners of the region have privatized The employees and numerous properties that were used in medi- the railway depot that used to ser- volunteers working on the project eval China, i.e. banish evil spirits out vice all 26 local companies, thus firmly believe that it is the Isolation’s of the region. After all, when a per- making their further operation im- site specific projects, not football son is shaped by site specific to too possible. The percentage of expenses matches at the luxurious Donetsk great an extent, he/she is unable to for inviting the popular Chinese art- do anything, nor can he/she reach ist, compared to the costs required 1 Ukrainian folk string instrument. for the sublime. № 9 (21) october 2011|the ukrainian week|47 B OOKSTORES KYIV vul. Lysenka 3 tel: (044) 235-8854, vul. Spaska 5 tel: (044) 351-1338, Povitroflotskiy prospekt 33/2 tel: (044) 275-6742, vul. Saksahanskoho 107/47 tel: (044) 383-6149, LVIV prospekt Svobody 7 tel: (032) 235-73-68 VINNYTSIA 50-richchya Peremohy prospekt 26 tel: (0432) 26-5904 TERNOPIL vul. Valova 7-9 tel: (0352) 25-4459 KHARKIV vul. Sumska 3 tel: (057) 731-5949 IVANO-FRANKIVSK vul. Nezalezhnosti 31 tel: (0342) 72-2502 VOLODYMYR-VOLYNSKIY vul. Kovelska 6 tel: (03342) 2-1957 www.book-ye.com.ua

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