Inside Ukraine

Total Page:16

File Type:pdf, Size:1020Kb

Inside Ukraine Inside Ukraine September 25, 2014 №30 Content The Government Policy . 1 Shaky truce in Donbas . 1 Reform of MIA in Facebook . 3 Economic Situation . 5 Ukraine’s economy continues its fall . 5 NBU changes rules on FX market . 6 Russia extends trade war against Ukraine . 7 Russia set itself to destroy Ukrainian energy system . 7 Political competition . 9 Oleh Lyashko’s electoral jackpot . 9 Serhiy Tihipko is uniting big business . 10 Inside Ukraine 30 The Government Policy Despite the fact that the pro-Russian separatists conflict, but as a method to temporarily freeze it. The signed the Minsk protocol on peaceful settlement lack of public explanations from the President re- of the conflict in Donbas, they do not adhere to the garding the need to sign the Minsk protocol and to truce and continue to attack positions of ATO forc- adopt corresponding draft laws has become the main es, though these attacks are less intensive. In addi- information failure of the President’s administration. tion, they are making major efforts to provide the Some representatives of the government use the so-called republics with institutional attributes of statements on reform implementation in order to autonomy. Thus, the truce in Donbas is extremely improve pre-election positions of their political shaky. Active confrontation can be easily resumed forces. In particular, Arsen Avakov presented the if Russia gives a corresponding order to militants. concept of MIA reform, prepared in collaboration Petro Poroshenko put at stake his own rating in with civil experts. The concept contains a number order to push through the idea of his peace plan. of positive changes, but does not envisage radical However, conditions of Minsk Memorandum con- renewal of MIA staff. The fact that the government tain provisions that will be ignored by both sides of is going to be changed after election casts doubts the conflict. Thus, this document cannot be consid- on the possibility to start reform implementation in ered as a mechanism for long-term solution to the accordance with the announced strategy. Shaky truce in Donbas The problem of the Minsk protocol and presiden- at the domestic political arena suffered a complete fi- tial Donbas initiatives is not only the vagueness of asco. Petro Poroshenko tried to remedy the situation statements in these documents, but the lack of ex- and organized an interview with leading journalists planation from the President on inevitability of such on September 20, 2014. In addition, he announced a decisions due to the situ- Public full-scale press conference to be held on September ation at the front. While communication of 25. It is quite positive that the President took into ac- communication of the the President as count the experts’ criticism on establishing effective President at foreign policy regards peaceful communication with citizens, but the laws of 16 Sep- level is very effective, Pres- initiatives suffered tember and the Minsk protocol remain information ident’s information policy a complete fiasco failures of the President’s administration. Inside Ukraine 30 1 The Government Policy On September 19, 2014, representatives of the a 30-kilometer buffer safety zone should be es- OSCE, Ukraine, Russia and pro-Russian Donbas tablished. However, this condition means that the rebels have signed the Memorandum on the imple- separatists will have to withdraw all heavy weapons mentation of the Minsk protocol. Unlike the latter, from Donetsk, Luhansk and Horlivka and Ukrai- the Memorandum is more specific, but raises a num- nian artillery will have to leave Mariupol. There are ber of new questions to the Ukrainian government. some doubts that at least one of the parties is going First of all, the document specifies the area con- to fulfill this condition completely. trolled by rebels, as of September 19, not as of Sep- Retreat of the Ukrainian artillery from Mariupol tember 5, when the protocol was signed in Minsk. will be possible only after Russians’ withdrawal of The separatists have greatly expanded the territory heavy weapons from the south of Donetsk region, as under their control over the past two weeks. For in- a group of their troops near Novoazovsk is a direct stance, ATO forces retreat from Lutuhino in Luhansk threat to Ukrainian troops in Mariupol. Mopping- region, shifted the front line 50 km to the north, and up the south of Donbas from heavy weapons and dozens of small settlements happened to be under all foreign armed groups can be also found among control of separatists. The main motivation was the nine points of the document signed in Minsk. menace of encirclement for Ukrainian troops. How- In addition, the Memorandum provides for im- ever, criticism is caused by the fact that ATO com- posing a ban on the use of combat aviation, includ- mand does not comment on changes to the map and ing drones, by any party, except for the OSCE. It also does not explain the need for such a step. envisages a ban on planting minefields. The OSCE Such problems could have been avoided if the representatives will control the implementation of Minsk protocol and President’s laws on Donbas status the Memorandum. The number of OSCE monitors contained a clear list of set- will be increased to 350 persons allocated to 5 sectors. tlements controlled by sep- There are no The NSDC does not comment on this, but the aratists. This red line was specific borders water lines were chosen as the borders of the terri- not drawn, and, as a result, of the area tory under control of separatists. In Luhansk region, these boundaries remain controlled by a significant part of the imaginary border runs open to speculations. separatists along the Siverskyi Donets river, and in Donetsk Similarly, after the signing of Memorandum on region — the Kalmius river. On the one hand, it September 19, ATO forces left Zhdanivka, Rozivka, makes easier to control a dividing line between the and Yunokomunarivsk arguing that the front line territories controlled by Kyiv and separatists, and needs to be aligned. Following this logic, Ukrai- does not require a large number of additional en- nian troops are likely to leave Debaltseve, which gineering structures. On the other hand, it evokes is an important transportation hub on the border historical analogies when the countries were divid- of Donetsk and Luhansk regions and is now con- ed by rivers as a result of wars. trolled by Ukrainian forces. Throughout the period Nevertheless, hopes for a lasting peace are pre- of the so-called truce, separatists continue to inten- mature. Pro-Russian separatists continue to receive sively attack ATO forces in this town, and a win- support from Russia. In addition, separatists con- dow of opportunity for retreat is closing. The only tinue attacking ATO forces during the truce and point that gives hope that Debaltseve will remain build up their so-called republics institutionally. under control of official Kyiv is that, according to There were a number of reports about massive issu- the OSCE map (annex to the Memorandum), this ance of Russian passports, intentions to have their town is situated on the territory not controlled by own currency and to conduct election of the “head separatists. of the republic” and “parliament” on November 2, However, it is unlikely that the Memorandum 2014. It should be noted that the law on special or- will be implemented. The document stipulates that der in local self-governance in certain districts of both sides should take It is unlikely Donetsk and Luhansk regions, which is a part of back artillery and heavy that the Minsk Poroshenko’s peace plan, Separatists military equipment 15 memorandum envisages only local elec- are building up km from the contact line will be completely tion to be held on De- their “republics” as of September 19. Thus, implemented cember 7, 2014. institutionally 2 Inside Ukraine 30 The Government Policy Reform of MIA in Facebook On September 18, the Minister of Internal Af- Extremely positive idea is a separation of po- fairs Arsen Avakov presented the “concept of the litical and administrative positions at the ministry MIA reform” in social networks. The concept was level. The Minister will Separation of prepared in cooperation with experts’ public coun- carry out political func- political and cil headed by Yevhen Zakharov. This reform is one tions, while heads of administrative of the most urgent in Ukraine, as it will allow re- departments are profes- positions is a building trust to the public authorities, increasing sional employees in their positive idea the sense of security under the conditions of con- respective fields. Cur- stant Russia’s attempts to destabilize the internal rently, when the Minister is changed, all the vertical situation in Ukraine and, in comparison with other of command up to the regional units should also be reforms, requires less time for its implementation. changed. It significantly affects the efficiency of the However, the Interior Minister is included in the system and its professionalism. list of Arseniy Yatsenyuk’s “People’s Front” party. The number of police officers will be reduced That is why his desire to Announcement of from the current 376 per 100 thousand people to speed up the presentation the MIA reform as 300 police officers per 100 thousand people, i.e. by of the concept is associ- a PR move on the 20%. Such 20% reduction by 20% took place in Rus- ated with the beginning eve of elections sia as part of the police reform, but such a step did of the campaign. Even if not bring qualitative changes in police forces. It is the current Cabinet of Ministers approves this text, important to change the very principles of the func- it will not be able to further proceed with the con- tioning of law enforcement system and provide pre- cept implementation and the text will be inherited ventive measures of power misuse, but not to ma- by the next government.
Recommended publications
  • Yes 2012 Report.Pdf
    CONFERENCE OPENING Dear Friends, Today, countries are in a global race that gets faster and faster. I am not a political scientist - as an art collector I like to use art when I speak about global challenges. Let me use the famous photographer Andreas Gursky’s “Boxenstopp” as an analogy. A pit stop in Formula 1. One team is blue and yellow. This is Ukraine; these are Ukraine’s colours. What is the Ukrainian team doing? I believe - reforms. In the global race, reforms are pit stops allowing you to change and speed up. Some countries which were slow before improve their position. Like cars that put on the right new tires and fill up with the right amount of gasoline, they can overtake others. Others put on the wrong equip- ment or lose too much time in the pit stop and fall behind. I hope Ukraine’s team will be successful. And I hope for all of us this conference will be an intellectual pit stop where we refuel and re-equip ourselves, take in new energy and ideas, to help all our respective countries become smarter, better, more productive, more just. For this, we have fantastic speakers with us in Yalta, political leaders, business leaders, social leaders, intellectuals. I look forward to our discussions. Victor Pinchuk, Founder and Member of the Board, Yalta European Strategy 1 AGENDA 9th YALTA ANNUAL MEETING Ukraine and the World: Addressing Tomorrow’s Challenges Together AGENDA Thursday, September 13 21:20 – 21:25 Welcoming Remarks Aleksander Kwasniewski, President of Poland (1995-2005); Chairman of the Board, Yalta European Strategy
    [Show full text]
  • EURASIA DAILY MONITOR Volume 5 , Issue 125 (July 01, 2008)
    EURASIA DAILY MONITOR Volume 5 , Issue 125 (July 01, 2008) OLIGARCHS WIELD POWER IN UKRAINIAN POLITICS By Taras Kuzio The leading Ukrainian magazine Korrespondent (June 12) published its annual list of wealthy Ukrainians. The most surprising new information was the estimate of Donetsk oligarch Renat Akhmetov’s wealth. Akhmetov, the head of Systems Capital Management, is worth $31.1 billion, making him the wealthiest person not only in the CIS but also in Europe. This revelation comes on top of the highest real estate purchase ever recorded in Britain to Olena Franchuk, the wife of Ukrainian oligarch Viktor Pinchuk and daughter of former President Leonid Kuchma (London Evening Standard, February 26). The purchase was for 80 million pounds ($160 million). London is fast becoming a refuge not only for Russian but also Ukrainian oligarchs. Russian political exiles, such as Boris Berezovskiy, flee to London while Ukrainian exiles (Ruslan Bodelan) flee to Russia. This is testimony to the different approaches to money laundering and due diligence undertaken by the United States and the EU. In the U.S. former Prime Minister Pavlo Lazarenko was convicted and jailed in 2004 for money laundering $120 million into the United States, $40 million less than Franchuk paid for her new London home. Four years of political instability in Ukraine have not damaged the ability of Ukraine’s oligarchs to increase their capitalization during President Viktor Yushchenko’s administration. Political instability has not affected the economy, which has continued robust growth; purchasing power is high and foreign direct investment is at record levels. According to Korrespondent editor Vitaliy Sych, Akhmetov’s estimated wealth has doubled in the past year because of three factors.
    [Show full text]
  • Inside Ukraine 33
    Inside Ukraine October 16, 2014 №33 Content The Government Policy . 1 The President summed up the peace plan implementation . 1 A breakthrough in anti-corruption legislation . 3 Economic Situation . 5 Donbass losses from Russian aggression . 5 Separatists seek “energy autonomy” . 7 Political competition . 9 Diversification “Privat-style” . 9 Increasing role of Serhiy Lyovochkin . 10 Inside Ukraine 33 The Government Policy Experts’ criticism regarding presidential adminis- This issue can be resolved by identifying and punish- tration’s mistakes in information policy on Donbas ing those responsible for provocations and unrest. issues has brought positive results. Communication The Verkhovna Rada has adopted a package of between the President and citizens became more anti-corruption laws proposed by Petro Porosh- regular. Recently, he has summed up the first month enko and Arseniy Yatsenyuk. The package includes of his peace plan implementation. Stopping the en- laws on prosecutor’s office, determining final ben- emy along the frontline and decrease in the number eficiaries of legal entities, anti-corruption strategy, of casualties have become the key achievements of the National Anti-corruption Bureau and National the plan. Peaceful settlement of the conflict remains Commission for the Prevention of Corruption. On the only possible option for the President. the same day, the President established the National Nevertheless, the President took several regional Council for Anti-Corruption Policy with similar trips in order to inspect the level of defense capabil- functions as those of the National Commission. ity and made several appointments in security block. This testifies that the President and the Prime Min- Russia’s attempts to destabilize the situation in Kyiv ister will be trying to personally control the issue of using protests of radical groups and law enforcement combatting corruption.
    [Show full text]
  • The Oligarchic Democracy: the Influence of Business Groups On
    42 THE OLIGARCHIC DEMOCRACY THE INFLUENCE OF BUSINESS GROUPS ON UKRAINIAN POLITICS Sławomir Matuszak NUMBER 42 WARSAW September 2012 THE OLIGARCHIC DEMOCRACY THE INFLUENCE OF BUSINESS GROUPS ON UKRAINIAN POLITICS Sławomir Matuszak © Copyright by Ośrodek Studiów Wschodnich im. Marka Karpia / Centre for Eastern Studies Content EDitors Adam Eberhardt, Wojciech Konończuk EDitorS Anna Łabuszewska Katarzyna Kazimierska Translation Ilona Duchnowicz CO-operation Nicholas Furnival Graphic Design Para-buch CHARTS Wojciech Mańkowski PHOTOGRAPH ON COVER Shutterstock DTP GroupMedia Publisher Ośrodek Studiów Wschodnich im. Marka Karpia Centre for Eastern Studies ul. Koszykowa 6a, Warsaw, Poland Phone + 48 /22/ 525 80 00 Fax: + 48 /22/ 525 80 40 osw.waw.pl ISBN 978-83-62936-14-4 Contents THESES /5 MAIN SEctORS OF BUSINESS ActIVITY OF THE KEY UKRAINIAN OLIGARCHS /8 INTRODUctION /9 RESERVATIONS /11 I. THE EMERGENCE OF THE OLIGARCHIC SYSTEM AND ITS FORM IN 1991–2004 /13 1. The genesis of the oligarchic system /13 2. The formation of the clans /13 3. The beginnings of a system crisis /17 4. The Orange Revolution /20 II. THE OLIGARCHS IN 2005–2010 /23 1. The orange ‘oligarchic democracy’ /25 1.1. The business circles linked to the Party of Regions /26 1.2. ‘Orange’ business /27 1.3. The others /30 2. Tymoshenko’s conflict with the RUE Group /32 3. The attempt to form a grand coalition /32 4. The presidential election of 2010 /34 III. THE OLIGARCHS AFTER VIKTOR YANUKOVYCH’S VIctORY /37 1. The key groups of influence in the state administration/37 2. ‘The family’ – an attempt at a new quality /40 3.
    [Show full text]
  • For Free Distribution
    AN OVERVIEW OF PARTIES AND CANDIDATES WILL KHARKIV BECOME STORY OF A MAN WHO SPENT RUNNING FOR SEATS IN PARLIAMENT THE NEXT SEPARATIST HOTSPOT A MONTH IN CAPTIVITY IN DONBAS № 13 (79) OCTOBER 2014 WWW.UKRAINIANWEEK.COM Featuring selected content from The Economist FOR FREE DISTRIBUTION |CONTENTS BRIEFING Where Are Estonia’sF riends? A New World Order: The NATO does not know how to deal with small, confusing new rules imposed on challenges, so Russia unleashes them. If they go unpunished, the world by the Russian they set a precedent dictator create a cruel no- holds-barred game. When 27 it is in full swing, the soft Nuclear Whimper: Edward Lucas on trust and the West comfort of Western life may easily disappear forever 28 4 ECONOMICS On the Edge of Recession: The West’s sanctions are hitting POLITICS Russia’s contracting economy Back to Black: The Ukrainian Week looks at party lists and independent candidates to see how many “new faces” the 29 upcoming parliament will have A Plea for Change: Transition from oligarch economy to EU membership for Ukraine 6 The Next People’s Republic? Without “tourists” from Russia, 30 the separatist movement in Kharkiv has quickly marginalized. If Nobel-winning economistR oger Myerson: not for pro-Russian sympathies of the local authorities, it would “Many arguments against decentralisation are based hardly pose any threat at all on a misconception of what it means” 10 34 Separatism From Top Offices of Kyiv: SECURITY Separatism in Ukraine is Ex-Defence MinisterM ykhailo Koval talks about the army, predominantly
    [Show full text]
  • Secret Archives from Soviet Era Presented to Kyiv-Mohyla Academy
    InsIde: • Binghamton remembers victims of 2009 shooting – page 4. • Theater review: “Scythian Stones” at La MaMa – page 8. • Archeological field research continues at Baturyn – centerfold. THEPublished U by theKRA Ukrainian NationalIN AssociationIAN Inc., a fraternal Wnon-profit associationEEKLY Vol. LXXVIII No.17 THE UKRAINIAN WEEKLY SUNDAY, APRIL 25, 2010 $1/$2 in Ukraine Secret archives from Soviet era Russia grants Ukraine gas discount presented to Kyiv-Mohyla Academy in return for extension of fleet’s lease by Larysa Syvolozhska RFE/RL of Ukrainian-Russian relations, are a clear signal of the warming ties between the KYIV – The National University of Kyiv KYIV – Ukraine has agreed to a two countries after years of hostility. Mohyla Academy has received a digital lengthy extension for the Russian Black Moscow had been unable to win a copy of historic declassified documents of Sea Fleet’s base in Crimea in exchange lease extension from President the Soviet era (1918-1991) from the for a major discount on Kyiv’s imports of Yanukovych’s predecessor, Western- Archives of the Security Service of Ukraine. Russian gas. leaning Viktor Yushchenko, who per- The transfer of previously secret NKVD- The lease on the base will be extended ceived the Russian fleet as a hostile pres- KGB (People’s Commissariat for Internal for another 25 years beyond the current ence on Ukrainian soil. Affairs – Committee for State Security) files term, which was due to expire in 2017. In Ukraine’s new government, in turn, is regarded as a remarkable event and illus- return, Russia has pledged to cut the price badly needed a Russian gas discount to trates the need for transparency and the Ukraine pays for Russian natural gas.
    [Show full text]
  • ANNUAL REPORT Message from the Chairman of the Chamber Board of Directors
    2012 ANNUAL REPORT Message from the Chairman of the Chamber Board of Directors Dear Chamber Members, tees’ performance and internal and external communication. The same can be said about the successful development of the has put in Ukraine’s path, the Chamber and its executive team remainDespite focused all the on politicalthe future and and financial look forward challenges to the continuedthat 2012 - successes of the Chamber and each of its Members. Over the Business Networking platform – the Chamber has focused on- tomerfurther service. developing a well-rounded offering of benefits and ser vices by being proactive, innovative, and oriented towards cus last 20 years the Chamber has been striving to unite the leading- businesses in Ukraine, irrespective of their national origin, to On behalf of the Board of Directors I would like to once again work together to create a better business environment and fa express our sincere gratitude for the support and involvement cilitate new investment in the country’s economy. Celebration of of every one of our Member Companies. Their efforts have been the organization’s 20th Anniversary – a major milestone in the key to driving the Chamber’s activities in 2012. The road has areChamber’s proud to history have been – made a witness us once to again and participant think about in how Ukraine’s much proudnot always of. been easy, but by working together and supporting developmentthe country has as anaccomplished independent throughout nation as it all has these moved years. to emWe- each other we have collectively achieved a lot that we can be brace the principles that are the hallmarks of successful market Sincerely, economies.
    [Show full text]
  • Inside Ukraine
    Inside Ukraine October 16, 2014 №33 Content The Government Policy . 1 The President summed up the peace plan implementation . 1 A breakthrough in anti-corruption legislation . 3 Economic Situation . 5 Donbass losses from Russian aggression . 5 Separatists seek “energy autonomy” . 7 Political competition . 9 Diversification “Privat-style” . 9 Increasing role of Serhiy Lyovochkin . 10 Inside Ukraine 33 The Government Policy Experts’ criticism regarding presidential adminis- This issue can be resolved by identifying and punish- tration’s mistakes in information policy on Donbas ing those responsible for provocations and unrest. issues has brought positive results. Communication The Verkhovna Rada has adopted a package of between the President and citizens became more anti-corruption laws proposed by Petro Porosh- regular. Recently, he has summed up the first month enko and Arseniy Yatsenyuk. The package includes of his peace plan implementation. Stopping the en- laws on prosecutor’s office, determining final ben- emy along the frontline and decrease in the number eficiaries of legal entities, anti-corruption strategy, of casualties have become the key achievements of the National Anti-corruption Bureau and National the plan. Peaceful settlement of the conflict remains Commission for the Prevention of Corruption. On the only possible option for the President. the same day, the President established the National Nevertheless, the President took several regional Council for Anti-Corruption Policy with similar trips in order to inspect the level of defense capabil- functions as those of the National Commission. ity and made several appointments in security block. This testifies that the President and the Prime Min- Russia’s attempts to destabilize the situation in Kyiv ister will be trying to personally control the issue of using protests of radical groups and law enforcement combatting corruption.
    [Show full text]
  • English%20FINAL.Pdf
    ALMANAC ON SECURITY SECTOR GOVERNANCE IN UKRAINE 2012 Geneva-Kyiv, 2013 Editors: Joseph L. DERDZINSKI, Valeriya KLYMENKO Design and layout: Oleksandr SHAPTALA This volume offers a selection of articles by the Ukrainian and international authors. They present different points of view and assessments of the current state and perspectives of the Ukrainian Security Sector development including its defence, internal security and defence industry. The analysis also covers broader issues of national domestic and foreign policy directly infl uencing security of the Ukrainian citizens, society and the state. Such an approach helps better appreciate ongoing developments in the Security Sector and the essence of problems related to national security. General assessments, conclusions and proposals are those of the authors and do not necessarily coincide with the positions of DCAF or the Razumkov Centre. Publication was made possible in the framework of NATO-Ukraine Partnership Network and thanks to the fi nancial support of the Swiss Ministry of Defence Partnership for Peace programme © DCAF, 2013 © Razumkov Centre, 2013 ISBN 978-966-7272-93-7 © “Zapovit” Publishing House, 2013 А Table of Contents ABBREVIATIONS . .7 FOREWORD Philipp FLURI . .9 SECURITY SECTOR Chapter 1. SECURITY SECTOR IN THE CONTEXT OF GENERAL SOCIO-POLITICAL DEVELOPMENT OF UKRAINE Oleksiy MELNYK, Mykola SUNGUROVSKYI . .13 Chapter 2. UKRAINE’S SECURITY SECTOR MANAGEMENT SYSTEM: A MODERNISED SOVIET MODEL Oleksandr LYTVYNENKO . .29 Chapter 3. UKRAINE’S SECURITY: PROGRESS AND REGRESSION James SHERR . .37 DEFENCE SECTOR Chapter 4. NEW MILITARY DOCTRINE: PRINCIPLES OF UKRAINE’S MILITARY POLICY IN THE CONDITIONS OF A NON-BLOC STATUS Volodymyr MOZHAROVSKYI, Oleksandr ZATYNAIKO, Viktor PAVLENKO, Viktor BOCHARNIKOV, and Serhiy SVESHNIKOV .
    [Show full text]
  • Perceptia Rusiei
    Iulian Chifu Oazu Nantoi Oleksandr Sushko THE PERCEPTION OF RUSSIA IN ROMANIA, REPUBLIC OF MOLDOVA AND UKRAINE PERCEPÞIA RUSIEI ÎN ROMÂNIA, REPUBLICA MOLDOVA ªI UCRAINA Ediþie bilingvã Editura Curtea Veche Bucureºti 2010 The present book is the result of the research of the East East Project of the Soros Foundation “The Perception of Russia in the trilateral Romania, Republic of Moldova and Ukraine” where the following participated: Prezenta carte este rezultatul cercetãrii în cadrul proiectului East East al Fundaþiei Soros “Percepþia Rusiei în trilaterala România-Republica Moldova-Ucraina” la care au participat: UKRAINE/UCRAINA Natalia Belitser, Pylyp Orlyk Institute for Democracy Oleksandr Sushko, Institute for Euro-Atlantic Cooperation Hryhory Perepelitsya, Kyiv Diplomatic Academy Volodymyr Horbach, Institute for Euro-Atlantic Cooperation ROMANIA/ROMÂNIA Iulian Chifu, Centre for Conflict Prevention and Early Warning Cornel Codiþã, CPCEW Vlad Cucu Popescu, National School for Political and Administrative Studies Narciz Bãlãºoiu, CPCEW REPUBLIC OF MOLDOVA/ REPUBLICA MOLDOVA Oazu Nantoi, Institute for Public Policy Radu Vrabie, Foreign Policy Association Ion Preaºcã, IPP Iurie Pîntea, IPP Editing/Editare: Gabi Radu, Iulian Chifu Publication financially supported by the Soros Foundation Romania, through the East-East: Partnership Beyond Borders Program. The content of this publication and/or opinions expressed therein do not necessarily reflect the views of the Soros Foundation Romania, but solely those of the author(s). Publicatie editata cu sprijinul financiar al Fundatiei Soros Romania, prin programul East-East: Partnership Beyond Borders. Continutul prezentei publicatii si/sau opiniile prezentate in cadrul acesteia nu reflecta, in mod necesar, vederile Fundatiei Soros Romania, ci numai pe cele ale autorului(autorilor).
    [Show full text]
  • Oligarchs, Obfuscation, and Political Connections John S
    WORKING PAPER · NO. 2019-142 Preventing Predation: Oligarchs, Obfuscation, and Political Connections John S. Earle, Scott Gehlbach, Anton Shirikov, and Solomiya Shpak DECEMBER 2019 5757 S. University Ave. Chicago, IL 60637 Main: 773.702.5599 bfi.uchicago.edu Preventing Predation: Oligarchs, Obfuscation, and Political Connections John S. Earle, Scott Gehlbach, Anton Shirikov, and Solomiya Shpak∗ This version: December 8, 2019 Abstract We examine the decision of wealthy business owners to protect their holdings from expropriation and arbitrary taxation through proxies, shell companies, and offshore firms. Our theoretical framework emphasizes the role of political connections in de- cisions to obfuscate. Linking information from investigative journalists on Ukrainian oligarchs with firm-level administrative data on formal ownership ties, we observe ob- fuscation among more than two-thirds of oligarch-controlled firms, but such behavior is much less common for connected oligarchs. Further exploiting the abrupt shock to political connections that accompanied the Orange Revolution, we find a sharp rise in obfuscation among previously connected oligarchs. Keywords: property rights, predation, oligarchs, ownership chains, political connec- tions JEL codes: D23, G32, P26 ∗Earle: George Mason University, Schar School of Policy and Government, 3351 Fairfax Drive, Arling- ton, VA 22201, [email protected]. Gehlbach: University of Chicago, Department of Political Science and Harris School of Public Policy, 5828 South University Avenue, Chicago, IL 60637, [email protected]. Shirikov: University of Wisconsin{Madison, Department of Political Science, 110 North Hall, 1050 Bascom Mall, Madison, WI 53706, [email protected]. Shpak: George Mason University, Schar School of Policy and Government, 3351 Fairfax Drive, Arlington, VA 22201, [email protected].
    [Show full text]
  • The Ukrainian Weekly 2010, No.13
    www.ukrweekly.com InsIde: • Interview: former head of NATO Liaison Office in Ukraine – page 3. • “Ukraine and Sweden: At the Crossroads of History” – page 19. • Ukrainian Kozaks, Devils Alumni face-off for a cause – page 20. THEPublished U by theKRA Ukrainian NationalIN AssociationIAN Inc., a fraternal Wnon-profit associationEEKLY Vol. LXXVIII No.13 THE UKRAINIAN WEEKLY SUNDAY, MARCH 28, 2010 $1/$2 in Ukraine Ukraine’s NATO experts present Cabinet of Ministers is packed proposals for New Strategic Concept with questionable appointees by Zenon Zawada isters isn’t the only cause for controversy. Cite need for clearer Kyiv Press Bureau With 29 members, Ukraine’s Cabinet is the largest in Europe. The average age of security guarantees KYIV – KGB agents, Ukrainophobes its ministers is 53. It includes not a single and leaders of business clans have packed by Zenon Zawada female appointee. the Cabinet of Ministers led by Prime The far-from-eloquent Mr. Azarov Kyiv Press Bureau Minister Mykola Azarov, which was sparked an international hubbub when KYIV – Ukraine’s NATO experts and approved by Ukraine’s Parliament on commenting that “it’s not a female matter supporters of the alliance on March 15 pre- March 11. to conduct reforms,” just several weeks sented their proposals for its New Strategic Many of the 29 ministers served in the after Mr. Yanukovych suggested former Concept, which is currently being devel- authoritarian regime of former President Prime Minister Yulia Tymoshenko go to oped by NATO member-states and part- Leonid Kuchma, and the majority are the kitchen to demonstrate her talents.
    [Show full text]