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#7 (101) July 2016 Emerging parties Changes in Ukraine’s Constitution: The past and present and their chances in elections from 1991 till today of privatization in Ukraine WWW.UKRAINIANWEEK.COM Featuring selected content from The Economist FOR FREE DISTRIBUTION CONTENTS | 3 BRIEFING 32 The forced friendship: 4 Multiplication by division: How today’s Finland understands The prospects of two young liberal security and relations with Russia parties FOCUS 7 Brewing and ripening: 34 Looking to Mutti: An overview of new parties and Angela Merkel and her attempts to political projects in Ukraine give the EU new shape POLITICS 35 In a rut: 10 Putin on the squeeze: The woes of Deutsche Bank The anatomy of Yanukovych’s loan 36 Best of frenemies: from Russia How German-Russian relations 14 Constitutional confrontation: shaped the fate of Europe How Ukraine’s Constitution changed and Ukraine in the past 250 years in the past 25 years 40 A subtle balancing act: 18 Chaos and the law: Stephen Szabo of Transatlantic Law expert Ihor Koliushko on how Academy on the nature key reforms are reflected in the of German leadership in Europe Constitution and the world ECONOMICS SOCIETY 21 The fuel of transformations: 42 Double imprisonment: What the gas sector reforms are Ukrainian prisoners bringing in Crimea are being transferred 24 Of vouchers and men: to Russia, given Russian passports The role of privatization in the rise of and punished for rejecting them Ukraine’s oligarchy HISTORY 26 The burden of ownership: 45 The roads of underground capitalism Current state of publicly-owned assets in the USSR: in Ukraine and plans to privatize them The story of a Stalin-era shady businessman 30 Selling it all? An inventory of state enterprises up for sale CULTURE & ART 50 Readings with writers, contemporary NEIGHBOURS jazz and festivals: 31 Ihor Losev on history-related The Ukrainian Week offers initiatives of Polish MPs and Ukraine’s a selection of events to attend responses in August E-mail [email protected] www.ukrainianweek.com Tel. (044) 351-13-00 The Ukrainian Week #7 (101) July 2016 Editors address 37 Mashynobudivna str., Kyiv, 03067, Ukraine Founder ECEM Media GmbH. Publisher ECEM Media GmbH Print run 15 000. Free distribution Address Austria, Am Gestade,1, 1010 Vienna Our partner State registration certificate КВ № 19823-9623ПР 19.03.2013 Chief Editor Dmytro Krapyvenko Editors Anna Korbut, Lidia Wolanskyj #7 (101) July 2016 | THE UKRAINIAN WEEK THE UKRAINIAN WEEK | #7 (101) July 2016 BRIEFING Liberal Parties: Multiplication by division Bohdan Butkevych ithin days of each other, people whom everyone had expected to see in the good ship Mikheil Saakashvili announced the launch of two new liberal parties. On June 28, Saakashvili’s associate David WSakvarelidze finally officially announced that he was beginning to form a party. Then, on July 9, Mustafa Nayem, Serhiy Leshchenko and Co. held an official convention for their revived party, based on the Democratic UNIAN PHOTO: Alliance. #7 (101) July 2016 | THE UKRAINIAN WEEK 6 | BRIEFING | Despite declarations on both sides that these gay rights, legalizing recreational drugs, guns, two entities will be on friendly terms, it is obvi- and so on. For political party that wants to call ous that, in fact, things will be the exact opposite. itself liberal, this is not entirely correct. But ok, Even the virtually simultaneous start testifies to let’s toss doctrinaire positions aside and stick to their rivalry and desire to stake out a place as numbers. the pioneer among the “alternatives.” The fact It turns out that these 10% have just been that these two teams will be pounding the same split in two, and even the personal ratings of electoral turf, which almost 100% the same as Saakashvili, which have fallen in recent months their Facebook followers, suggests a pessimistic from a high of 20% to 5-7%, will not help his outlook. party. In short, even if there were just one par- Here is the sad reality: Ukrainians, as usu- ty, the most that it could hope to bring to the al, but especially in the progressive democratic Verkhovna Rada would be around 20 deputies. camp, don’t know how to get along. And so they With this force split in two from the very start, end up time and again losing to the more consoli- both parties are already wavering on the hairpin dated anti-Ukrainian or simply pro-government threshold of 4%. forces. Some might say, that’s stupid, because Saa- Without being a total skeptic, the synchro- kashvili himself has more than 850,000 follow- nized start of two parties that are so similar in ers in Facebook, and that was more than enough rhetoric and personalities, as well as in their for Batkivshchyna to make it into the Rada dur- theoretical voter bases, can only cause alarm. Of ing the last election. Meanwhile, Leshchenko course, we can make use of slogans like “More and Nayem have something over 200,000 fol- parties that are nice and varied” or “The more lowers between the two of them, and their read- of us, the less of them,” but when it comes right ership is no less than what the ex-President of down to it, Ukrainians now have the launch, not Georgia can claim. And that’s without even tak- of one long-anticipated progressive civic party ing any people away from other parties. More- that was supposed to unite around itself a broad over, Vitaliy Kasko and Chumak are popular in circle of those who want change and have pro- social networks, and equally popular among hip- European attitudes, but two. And any ritualis- sters is the former Deputy Minister of Economic tic laments from both sides about the fact that Trade and Development and one of the authors of they will not fight between themselves seem the revolutionary electronic state procurement quite ­silly. system ProZorro, Maksym Nefyodov. In short, there’s plenty of social capital there. Still, there is practical reality to consider: ANY LAMENTS FROM BOTH SIDES ABOUT THE FACT people in Facebook get to their polling stations THAT THEY WILL NOT FIGHT BETWEEN THEMSELVES SEEM less often than grannies paid off through the kinds of “electoral pyramid schemes” that were QUITE SILLY. POLITICS IS, AFTER ALL, A BATTLEGROUND, once thought up by Chernovetskiy and continue ALWAYS AMONG ALL, AND EVERYWHERE to be successfully exploited by those who want to stay in power—especially in the regions and the backwoods. And less than the witnesses of the Politics is, after all, a battleground, always Tymoshenko or Liashko sects. The main point is among all, and everywhere. All the more so, that that nobody has ever said that all those who fol- neither team bothered to explain why they decid- low someone are prepared to vote for the people ed to go their separate ways since, theoretically, they simply read in social networks. they had no disagreements. Just a few months The biggest question will be that neither team ago, all the members of these two teams were has real party organizers who are not concerned hugging each other at a series of anti-corruption with getting themselves on television but with forums organized by Saakashvili. real, grassroots party-building among an elec- So here we stumble on the eternal problem torate that is poor, apathetic and spoiled by con- of Ukrainian politicians: an inability to unite stant vote-buying over the last 20 years. It’s not and suppress their personal ambitions. All this an easy task. Dreaming about your popularity time, the press and pundits have tirelessly been and star quality isn’t going to work here. Sweat smacking their lips over squabbles within the equity will— something that all the members of hypothetical Saakashvili team over who would both teams will have serious problems with. lead—Mikho himself, MPs Leshchenko and Nay- And that’s without even touching on the eter- em, DemAlliance leader Vasyl Hatsko, Viktor nal issue of financing. Rumors persist that both Chumak, and others. Rumor has it that they all Saakashvili and Leshchenko are being funded by wanted to be the face of the new project. Mean- oligarch Kostiantyn Hryhoryshyn (aka Konstan- while, not one step has been taken towards par- tin Grigorishin). A serious competition between ty-building even as time keeps moving on, along the two projects could end up burying all the with voter confidence. participants of these liberal start-ups. Getting away from hypotheses, the realistic In short, it looks like the one and only chance electoral cap that a united liberal-democratic these freshly baked liberals have to succeed is party might hope to gain, based on opinion polls, by uniting into a single entity. Otherwise, their is around 10%... ideally. And that’s only if such a rivalry will simply lead to the premature death of party avoids raising such controversial flags like an idea whose time has really come. THE UKRAINIAN WEEK | #7 (101) July 2016 NEW PARTIES | POLITICS | 7 Brewing and ripening Roman Malko and Bohdan Butkevych The Ukrainian Week looks at the new parties looking to emerge in the country lthough it’s unlikely that a snap election will SAAKASHVILI STRIKES be called in the Verkhovna Rada this year, Let’s start with the most highly-anticipated political politicians of all stripes are busy preparing for force, the party of former Georgian president and Athem—and not just within existing parties, Governor of Odesa Oblast, Mikheil Saakashvili, which which have been rapidly losing voter confidence over was supposed to bring together all the major movers the last two years.

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