Predatory Peacekeeping. Instead of Settling Conflicts, Russia Freezes Them in Its Own Interests

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PREDATORY PEACEKEEPING. INSTEAD OF SETTLING CONFLICTS, RUSSIA FREEZES THEM IN ITS OWN INTERESTS

GERMAN AMBASSADOR TO UKRAINE ANKA FELDHUSEN: “CONSTITUTIONAL CRISIS IS AN EYE-OPENER FOR ZELENSKY” MEP JERZY BUZEK: “FURTHER REFORMS ARE A PRECONDITION FOR UKRAINE’S SUCCESS IN THE EUROPEAN GREEN DEAL”

WHAT DO UKRAINIAN BUSINESSES EXPECT FROM THE UNPREDICTABLE 2021?

#STOPRUSSIANBRUTALITY

DECEMBER-JANUARY-FEBRUARY 2021 Brussels Ukraїna Review Brussels Ukraїna Review Огляд Україна Брюссель

Edition – 1 February 2021 Journal is published in Ukrainian EDITOR’S and English

Оnline: FOREWORD www.promoteukraine.org

Publisher: NGO “Promote Ukraine” elcome to Business Association executive www.promoteukraine.org the Brussels director’s article, of presenta- Ukraїna Re- tions of successful ideas (“law Address: view №5! firm-boutique”) and climate pro- Velyka Zhytomyrska 33 The Christ- jects “Greening of Ukraine”). Office 611 mas and You will also find the results of Kyiv 01601 NewW Year marathon has just fin- our recent survey and “Cultural ished. It was a period of debriefing, Pages.” What are they about this Address of the attempts to forecast and program at time? Belgian NGO “Promote Ukraine”: least a foreseeable future, as well as Veldstraat 24 seeking a source of energy and in- Read, please! 1731 Relegem Belgium spiration for the next 365 days. ISSN 2736-4224 The same is with this issue, Marta Barandiy which begins with the analysis Email: of 2020: local elections, the chal- [email protected] lenges of the pandemic, the constitutional crisis in Ukraine. Then Editor-in-chief: follows a series of materials that Marta Barandiy resonate with the events in Rus- sia over the detention of Alexei Editors: Navalny: about the Crimea, about Evhenia Kolomiyets-Ludwig Russia’s relations with the Euro- Natalia Richardson pean Union, about conflicts and Illustrations and page making: sanctions. Anna Chernysh-Poltoratska About the future: the best escape from any trouble is work. Journal “Brussels Ukraїna Review” Business. Business in Ukraine. is distributed free of charge among Business in the EU. Business in researchers, experts, opinion leaders, Ukraine and the EU. That is the government officials and politicians leitmotif of several interviews of Ukraine and the European Union. (with the Ambassador of Germa- Reproduction of the materials of the Journal ny in Ukraine, with the head of is permitted only with the reference to Office UkraineInvest, with MEP the Journal. Opinions and other content Jerzy Buzek), of the European published by the authors in the Journal, do not necessarily reflect the position of the Board of Editors. Author is solely responsible for the content of the material he/she provides. Author is only responsible for the material, provided in the original language. Translation of the materials is made by a third party on the request of the Publisher. The Publisher is not responsible for the goods and services, advertised within the publication. Photos are from open sources.

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02 Editor`s Foreword RUSSIAN AGRESSION

EDITOR’S GREEN ENERGY. FIVE MOMENTS OF 2020 32 Predatory peacekeeping. INTERROGATION FOREWORD Instead of settling conflicts, 04 Fight against COVID-19 Russia freezes them in its own 62 Report on the online survey Taras Kozub interests results about the attitude Stepan Nazarenko of the ukrainian population 08 Constitutional crisis to renewable energy (clean in Ukraine RUSSIA. SANCTIONS energy), green economy and our personal impact on the PROMOTHOUGHT FROM 36 “European Union’s teeth” protection of the environment SUSHCHENKO on Ukraine’s service by means of sustainable Leonid Shvets energy sources 12 About local elections Prepared by Evhenia Kolomiyets- Roman Sushchenko BUSINESS. INTERVIEW Ludwig

INTERVIEW 40 Sergiy Tsivkach: “Investors CIVIL SOCIETY. CLIMATE have not lost interest in Ukraine 14 German Ambassador to during the pandemic” 70 The Ukrainian collective Ukraine Anka Feldhusen: success through tree planting “Constitutional crisis is an eye- BUSINESS. PROMO opener for Zelensky” CULTURAL PAGES 46 A “boutique” law firm in the CRIMEA IS UKRAINE heart of Europe 74 Svitlana Lebiga: artist who tells Europe about 20 Crimean political and 48 Starting a business in Ukraine seismic zone Ukraine: is it worth a candle? Natalia Richardson Inna Krupnyk Sergiy Alexandrov

RUSSIA – EU 52 What do Ukrainian businesses expect from the 26 Now and then: assessing unpredictable 2021? COVID-19 impact on EU`s Anna Derevyanko relations with Russia Maryna Yaroshevych GREEN ENERGY. INTERVIEW

31 JOIN THE FLASHMOB 56 MEP Jerzy Buzek: “Further #STOPRUSSIANBRUTALITY reforms are a precondition for Ukraine’s success in the European Green Deal” FIVE MOMENTS OF 2020 FIVE MOMENTS OF 2020 OF 2021 UKRAINEAT THE BEGINNING THE

TARAS KOZUB IS A JOURNALIST AND POLITICAL COMMENTATOR, AN EXPERT OF THE PLATFORM “KYIVSTRATPRO”.

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Fight against COVID-19

Moreover, a number of quaran- n Ukraine, the fight tine-related scandals called into against COVID-19 offi- question the equality of opportunity cially began on 3 March and raised the issue of corrupt links when the first coronavi- between the government and loyal Constitutional crisis rus case was confirmed businesses. These affected func- in the Chernivtsi region. tioning of building material megas- One of the most notable events IInitially, the authorities took tores and restaurants, linked with of the year was the autumn consti- quite decisive measures, in par- government officials, amidst the tutional crisis. In late October, the ticular, by launching a broad restriction on operations of restau- Constitutional Court of Ukraine OF 2021 awareness-raising campaign rants, cafés and pubs. (CCU), responding to a motion about safety measures and cre- Despite all the measures, as of 18 submitted by the members of the ating a special fund to combat December, Ukraine ranked 17th in Opposition Platform – For Life the epidemic. As of 6 November, the world in the number of coro- faction and For the Future par- UAH 39 billion or 59% of the fund navirus cases. The situation with liamentary group, repealed the was spent. A “severe” lockdown/ hospital bed occupancy was con- article of the Criminal Code of quarantine was imposed from stantly deteriorating. There were Ukraine which criminalises false 12 March to 3 April, and then ex- no available beds in some regional information in the asset declara- tended as “adaptive” quarantine. centres, and the supply of oxygen tions. The CCU also declared un- The posts of health minister necessary for seriously ill patients constitutional the powers of the and chief state sanitary doctor was insufficient at the end of the National Agency for Prevention UKRAINEAT were, perhaps, associated with year. Prime Minister Denys Shmy- of Corruption (NAPC) to control the “amplest resources” in the hal and Health Minister Maksym and verify declarations, have country and at the same time were Stepanov were mainly blamed for round-the-clock access to the the shakiest. Almost all health- the inefficient use of funds allo- register of declarations and mon- care officials ran the risk of losing cated to fight the epidemic and itor lifestyles. That is, the NAPC their job. They had a multitude of the lack of preparatory work when was deprived of its main control troubles arising from public out- the spread rate declined from May functions. cries, such as the one that erupted to September. The money from The next day, the Agency point- due to late payments to health- THE BEGINNING THE the COVID-19 Response Fund was edly closed access to officials’ as- care workers. Doctors and jun- spent on the Great Construction set declarations for a wide range ior medical staff were promised programme to improve the road of citizens. In its commentary, 300% bonus to salaries, but not all network. the NAPC pointed out the con- of them received payments. And Poor results of the fight against flict of interest of the CCU judges. then there were the statements COVID-19 undermined the level There was indication that two CCU made by Chief State Sanitary Doc- of trust in the central govern- judges entered false information. tor Liashko about “achieving a psy- ment. As evidenced by the 15-17 Although the judges’ vote was se- chological effect” for which public November 2020 poll conducted cret, the NAPC accused these two places – parks and gardens – were by the Rating sociological group, judges of voting “for” the abolition closed for visits in the spring. Lock- 60% respondents were dissatis- of powers. In the blink of an eye, down yielded results. The rate of fied with the activities of Presi- hundreds of criminal cases be- the spread of COVID-19 in Ukraine dent Volodymyr Zelensky in this came “suspended,” in particular, was nearly the lowest among the area, and only 35% appreciated against Odesa city mayor Hennadiy European countries. But, at the his efforts. Trukhanov over embezzlement of same time, the lockdown exhaust- UAH 54 million. ed its effectiveness, which is why experts began to compare it with “a powerful weapon that can be used only once.” On 4 December, the Verk- hovna Rada restored liability by adopting a “compromise” ever in the independent Ukraine, bill based on the presidential which can only be partially ex- one. The Venice Commission plained by the coronavirus pandem- brought the situation to a close ic as the population clearly loses in- by releasing its opinion on the terest in voting - they have become CCU’s decision on 10 Decem- a catalyst for several important pro- ber. European experts stressed cesses. that the decision has signifi- The main one was the de facto The reaction was outrageous: cant shortcomings and does victory of local authorities over the “This is an anti-state revolt in its not meet the standards of clear “central party apparatus.” purest form in the interests of Kolo- justification in constitutional The main heroes of the elec- moisky and the oligarchs from the procedures. The Commission tion were self-nominated candi- Opposition Platform – For Life par- recommended that Ukraine dates, mayors and their political ty as precisely the members of the should reform the CCU. projects: the Successful Kharkiv For the Future group and the Op- The first recommendation Bloc in Kharkiv, the Proposal par- position Platform – For Life faction was to limit the scope of Con- ty in Dnipro, the Trust in Deeds who submitted motion to the CCU,” stitutional Court decisions. party of incumbent mayor Hen- said Yehor Chernev, a lawmaker The second was to establish a nadiy Trukhanov in Odesa; and the from the Servant of the People fac- screening body for candidates Ukrainian Strategy party of former tion. for the office of judge of the prime minister Volodymyr Groys- Ukraine’s Western partners Constitutional Court, with an man, which took 34 out of 53 seats made it clear that if the crisis is not international component in a of the Vinnytsia City Council. overcome and, accordingly, one of manner similar to other courts. Small electoral “revolutions” also the main reforms, anti-corruption Third, when conclusion is made happened. For example, the era of reform, is abolished, Ukraine may that a legal provision is uncon- traditional a “thumping majority” lose support. After all, the adop - stitutional and should be an- of local government ended in Mar- tion of the asset e-declarations law nulled, confirmation from the iupol town, and the Mykolayiv City in 2014 was one of the main argu- Grand Chamber upon request by Council membership was updated ments for the further process of the the President of Ukraine or the by 85%. Against this background, European Union’s visa liberalisation Parliament should be sought. the results of parliamentary parties with Ukraine. Authorities rushed The following conclusion can were weak. Despite the victorious to search for a way out of the cri- be drawn from this crisis: despite statements, the Servant of the Peo- sis: Volodymyr Zelensky convened the successful implementation ple Party, which used the mobilisa- a meeting of the National Security of the reforms proposed by the tion potential attained during the and Defence Council, ordering the West, there are still many forces presidential campaign during the urgent restoration of access to the in the country interested in curb- parliamentary elections a year ago, e-declarations, which was done. ing these novelties. Their influ- gained not a single mayoral post at He issued an order to dismiss the ence may be so vast that it will the regional centre level, which can CCU judges in the future. In addi- reach central authorities, in par- be considered a clear victory of lo- tion, the President submitted a bill ticular the judiciary. cal authorities. to the Parliament to restore crim- Another conclusion: a consen- inal liability for false declarations. Local elections sus of local elites actually formed in These offences would be punished each region and at the level of cities. with fines and penal custody. This is evidenced by the forma- Local elections were held in tion of “coalitions,” non-formalised Ukraine on 27 October. Despite groups of local council members, the extremely low voter turnout with unusual participants. In fact, of 36.9% - the lowest voter turnout it is a “solitaire” laid out from local officials who are very indirectly -in volved in the central apparatus of the parties. For example, the Op- position Platform – For Life party and the European Solidarity party formed the coalition in the Staro- bilsk Town Council in the Luhansk region, leaving behind the team of

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MP Serhiy Shakhov, another important participant in local political events. And the situation when the Servant of the People party Despite the large deficit, social formed a coalition with the Opposi- expenditures were preserved and tion Platform – For Life party in one even increased in some areas. A local council and with the Europe- gradual increase in pensions is an Solidarity party in another, planned throughout 2021. From explaining the latter choice by July, the state will start paying UAH impossibility of cooperation with 400 more to pensioners aged 75-80 “opposition and pro-Russian forces, years. People aged over 90 years was commonplace. will receive a bonus of up to UAH 500. State budget for 2021 The macroeconomic indicators of the state budget for 2021 are as The budgeting process was follows: revenues – UAH 1.092 tril- closely linked to the risks Ukraine lion (UAH 21 billion added by the faced in 2020. The first one was the second reading); expenditures – coronavirus crisis: Health Minis- UAH 1.347 trillion. The average an- ter Maksym Stepanov insisted on nual U.S. dollar exchange rate for increasing the Health Ministry 2021 is projected at UAH 29.1 per spending up to UAH 296 billion. USD 1. The GDP growth is expected Nevertheless, the final amount at 4.6%, the inflation rate – at 7.3%. is much smaller – UAH 162.68 billion, although there is a 22% increase compared to the budget Education for 2020. This may suspend the The past year was very difficult increased payments to medical for the education system workers. staff. Doctors currently receive up Teachers and professors had to to UAH 30,000; nurses, up to UAH master remote teaching strategies 21,000. However, they will re- during the coronavirus quarantine ceive UAH 9,000 and UAH 7,000, and conduct external independent respectively, from January 1. evaluation amid the epidemic. The The second risk is the need to last challenge was the appoint- balance the budget and reduce its ment of Minister of Education Ser- deficit. This requirement was put hiy Shkarlet. Part of society has an forward by the Western partners, issue with his professional, moral and it was a necessary condition and ethical qualities. for obtaining the next tranch- However, as evidenced by the es from the IMF. By the second external independent evaluation reading, the state budget deficit results, schools performed well in was reduced from 6% to 5.5% of 2020 despite the difficult learning GDP by UAH 24 billion. These pa- environment. Last year, 91.7% of rameters were agreed upon with school graduates passed a test and foreign partners. “We propose a overcame the threshold score in balanced budget that does not the Ukrainian language, compared envisage an increase in taxes for to 84% in 2019. The mathematics business and, at the same time, test was passed by 87.3% of school provides for better spending on graduates, compared to 81.5% social sphere and medicine,” the in 2019, and the biology test was Prime Minister explained in his passed by 94.5% from 91% in 2019. Telegram channel in December. reforming in the socio-political sphere started in Ukraine. One of CONSTITUTIONAL the biggest problems of Ukraine CONSTITUTIONAL is corruption. Major problems arise due to the spread of corrup- CRISIS tion among Ukrainian statesmen. CRISIS The article that was repealed by the Constitutional Court was one IN UKRAINE of the most important in the field IN UKRAINE of anti-corruption. This article defined the competence of The Na- tional Agency for Prevention of Corruption (NAPC), a special body What happened? created in 2015 to fight corruption. In addition, the article determined n 27 October the punishment for providing false 2020, the CCU, information in electronic declara- with its decision, tions and punishment for illicit en- declared arti- This article has been written by Eduard richment. cle 366-1 of the Dudka, a student of political science at Labeling article 366-1 as uncon- Criminal Code the Kyiv-Mohyla Academy and an intern of stitutional had in fact removed of Ukraine unconstitutional. In Promote Ukraine. This article uses quotes O the necessity for statesmen to pro- other words, this article had been from the participants of the closed con- vide in their declarations truth- removed by the court. But why is ference organised by Promote Ukraine ful and complete information this article so important? Short- and Vox Ukraine: “Constitutional Crisis in about their property. This means ly after the Revolution of Dignity Ukraine. Expert opinion”. that now they can lie about their in 2014, a large-scale process of property, income (including the nature of it) and so on. The con-

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example, in July 2020, a group of 49 deputies (47 of whom were representatives of the aforementioned “Opposi- tion Platform for Life”) applied to the CCU to declare as an unconstitution- sequence of this is that great al the law that defined the work of difficulties were created in the the Supreme Anti-Corruption Court work of the above-mentioned of Ukraine. In September, the CCU NAPC. In fact, the agency was declared unconstitutional some laws Constitutional deprived of the opportunity on the National Anti-Corruption Bu- to verify declarations, as its reau (NABU). Furthermore, orders crisis has access to state registers was were passed defining the appoint- denied. Thus, the decision to ment of Artem Sytnyk to the post of become a kind repeal Article 366-1 was a real NABU chairman as unconstitutional gift to the corrupt officials as it (he was appointed in 2015 by presi- of examination has paved the way for numer- dent Petro Poroshenko). for Ukrainian ous financial manipulations. The decision of the Constitution- “This was really a shocking al Court was initiated by a group policy makers decision by the CCU, which of deputies from two parties that undermined much of Ukraine’s are closely related in ideology and and society at achievements in anti-corruption goals. As it is, we must pay attention policy, including electronic to the problem that was described large. Despite the declarations, and undermined the by both Ukrainian and Western ex- credibility of the National Agency perts. This problem is the politici- fact that idea of for the Prevention of Corruption.” sation of the CCU. Politicians have a wide influence on the activities dissolution of the of legal institutions. Experts have Who is responsible? suggested different ways out of this Constitutional situation. Quite popular is the idea The decision that triggered of increasing the quorum required Court of Ukraine the constitutional crisis was for decision-making in the CCU was not realised, made during a closed session of from 10 votes to 15. Also, there is a the CCU, at the suggestion of 47 proposal to reduce the number of it found support deputies from the parties “Oppo- judges from 19 to 12. sition Platform for Life” and “For “The problem exists in the election among some the Future.” It should be noted itself - judges are nominated by that these parties both stand on political parties. This is not right. Ukrainians. Eurosceptic, pro-Russian posi- They (politicians - ed.) should not be tions. Among the members of part of this process. The Verkhovna these parties there are many of Rada (Ukrainian parliament – ed.) those who had once been part of and the President mustn`t appoint the “Party of Regions,” led by Vik- their judges to the CCU”. tor Yanukovych. In addition, the very procedure It is worth noting that the de- of appointing judges is politicised. cision to repeal Article 366-1 can Politicians are trying to put for- be seen just as the last straw in ward the “right” people. As a re- a series of decisions previously sult, judges became those people implemented by the CCU that who will satisfy the interests of effectively nullified anti-corrup- their “patron”. tion reforms in Ukraine by mak- “The reason for this decision ing them “unconstitutional.” For (on declaring Article 366-1 of the Criminal Code of Ukraine unconstitutional – ed.) is the qualification of judges of the Constitutional Court and the method of their selection. It is very politicised, and it is not based on human merits and qualities. A new procedure must to investigators and pressuring be set up. In a few months, or at witnesses. In addition, Tupitsky most a year, we will have a better is accused of not declaring a plot Constitutional Court”. of land in the Russian-occupied Crimea. What did they do? What’s next? The constitutional crisis has become a serious test for the cur- Constitutional crisis has be- rent Ukrainian government. come a kind of examination for “Volodymyr Zelensky and many Ukrainian policy makers and so- officials have shown themselves well ciety at large. Despite the fact that as people who create problems but idea of dissolution of the Consti- not as people who solve them”. Two tutional Court of Ukraine was not days after repealing Article 366-1, realised, it found support among President Zelensky submitted to The constitutional some Ukrainians. Experts warn the Verkhovna Rada a draft law of far-reaching negative conse- on the early termination of the crisis has become quences» after dissolution of the competence of CCU judges. De CCU, for example manipulations facto this law should have legal- a serious test with the judicial system to satisfy ised dissolution of the Constitu- personal interests. tional Court. This proposal was for the current The crisis, caused by the deci- negatively perceived by many sion of the Constitutional Court deputies and after all rejected. Ukrainian of Ukraine, jeopardised not only “The president’s proposal to the domestic situation but also dissolve the Constitutional Court is government. international relations of our unfounded. This is not an ordinary state with western partners. Both court. We are dealing with the partnership with the EU and highest judicial structure in the grant aid from western partners country. You can’t just fire the were under threat. judges who work there. In the end, “Decision (of CCU about it will have far-reaching negative acceptance of article 366-1 of consequences”. the Ukrainian Criminal Code as Ukraine’s parliament has de- unconstitutional – ed.) was not just cided to compromise and rein- directed against the anti-corruption stated anti-corruption laws that achievements of Ukraine but also were repealed by the CCU on against the relationships between 4 December, although in legal Ukraine and its western partners; terms it wasn’t the best solution. fight against corruption is the “False information in declarations cornerstone of our (Ukraine and the must be punished. It’s obvious”. West – ed.) cooperation”. However, the confrontation The Venice Commission pro- with the Constitutional Court vided an assessment on the situ- did not end there. At the end of ation around the Constitutional December, President Zelensky Court of Ukraine. It considered signed a decree on the resigna- that by taking such a decision tion of the head of the CCU, Olek- the CCU de facto assumed power, sandr Tupytsky. He has been in- which traditionally is a preroga- vestigated on numerous charges tive of parliament: to determine of providing false information what is a crime and what’s not. The Commission recommended in this regard initiating a funda- mental renewal of the anti-corruption system of Ukraine. #BUR5 • @PromoteUkraine 10 • Brussels Ukraïna Review • www.promoteukraine.org • • www.promoteukraine.org • Promote Ukraine • Промоут Юкрейн • #BUR5 • @PromoteUkraine 11

Within the context of what happened with the CCU, some experts highlighted problems with “Conclusions of the Venice other courts in the country. Con- Commission are an indicator of sequently, the verdict is unequiv- what the international partners ocal: it’s not just the Constitution- think about Ukraine. In the EU al Court of Ukraine but rather In July 2020, we fight corruption with the all judiciary requires reforms in a group of 49 rule of law, therefore reforms (in Ukraine. Ukraine – ed.) should be focused on “Constitutional Court is one thing, deputies creating a mechanism of preventing another one (and it is important) corruption. Without progress at is a rest of judicial institutions in (47 of whom were the legislative level in the fight Ukraine. The situation there leaves against the abuse of power, Ukraine us to hope for better”. representatives wouldn`t have any progress with Despite Ukrainian parliament international partners”. renewed laws that were repealed of the Despite support from the West, by CCU earlier, it’s crucial to un- Ukraine has to understand that derstand that another question aforementioned the constitutional crisis is pri- remains open: a question of effec- marily its own problem and an in- tive implementation of these laws “Opposition dicator of shortcomings that still in practice. Platform for Life”) remain and need to be resolved. “It is a typical situation in “Don`t expect a resolving of Ukraine when decisions are taken but applied to the CCU this problem by any international then nothing happens. Eventually organisation. The problem with the decisions have no effect”. to declare as an CCU is ours. We have to find the Western experts emphasised solution to this problem by ourselves, the same problem. They count unconstitutional and we have to resolve this problem on development of civil socie- properly”. ty, which would play the role of the law that watcher for implementation of reforms in practice. defined the work “We are afraid of the situation of the Supreme when amendments are adopted but nothing happens. In this regard, civil Anti-Corruption society and parties have to provide support and convey the message of Court of Ukraine. importance of reforms to public”. Undoubtedly, the positive side In September, of this crisis is that Ukraine can count on the support and help of the CCU declared our western allies. “Whatever happens, Ukraine unconstitutional remains a partner not only for EU but for all the West”. some laws on the Foreign experts suggest it`s National important for Ukraine to pay attention to the conclusions of the Anti-Corruption Venice Commission. Bureau (NABU).

ABOUT LOCAL ELECTIONSABOUT LOCAL ELECTIONS

he first municipal elections in Ukraine with a record low turnout (the first round - 37%, the second one - 29%) Tin times of a coronavirus pandemic together with the new, unbalanced and imperfect Electoral Code and incomplete decentralisation did not mark absolute win- ners. However, they demonstrated interesting trends that differ from the steady results of previous local campaigns. Low turnout is a pan-European trend: the voter is less interested in municipal expression than in the national one. In addition, statistics shows that the desire to vote is traditionally higher in the first round than in the second one. Ukraine’s FROM SUSHCHENKO updated election legislation has PROMOTHOUGHT confused candidates and voters more than it has indicated an easy path to election. ROMAN SUSHCHENKO IS A FAMOUS UKRAINIAN JOURNALIST, FORMER POLITICAL PRISONER OF THE KREMLIN, PUBLIC AND POLITICAL ACTIVIST

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In fact, none of the political forces having felt electoral support, became the only favourite of the will not restrain their political electoral preferences. There is no ambitions, and will unite in in- single winner. The People’s Servant dependent political projects to party leads in the number of depu- “capture” the parliament. ties of councils of all levels. Follow- Non-parliamentary, local paring slightly behind, there are two ties won elections in some cities opposing parties at war with each and regions. Representatives of same time, temporary tactical co- other: the European Solidarity and 110 parties became deputies of alitions do not require formalisa- the Opposition Platform “For Life.” local councils with represent- tion. Therefore, at the constituent The top five also includes the Bat- atives of 46 parties among city, sessions, situational diverse alli- kivshchyna and “For the Future” settlement and village mayors. ances are formed in order to elect parties. But none of the mentioned In general, the 2020 municipal chairmen of local councils, secre- political forces has a majority in elections confirmed the triumph taries of city councils and to form the regions. of party pluralism in Ukraine, commissions. Eventually, those In the long run, the increasing from the point of view of demo- majority coalitions are doomed to demand for pro-Russian political cratic processes in Ukraine and reformatting. forces is likely to be limited by the need to balance political and Unbalanced and imperfect the depletion of their electorate, party interests, particularly in election legislation preserves the which will never exceed a quarter relations between central and lo- risks of active use of the technol- of Ukraine’s politically active pop- cal government. ogy of so-called “election tour- ulation. Competition in the strug- Meanwhile, ranked politi- ism.” The technology allows any gle for this part of the electorate cal leaders and the parties they citizen of Ukraine to change their will grow, but these political forces lead, will continue to play a key voting address and exercise their will never have the majority. It is role in the national elections. A right to vote in another region. an indisputable fact of modern sufficiently mobilised electorate In addition, according to NGOs, Ukrainian politics. Local politi- was demonstrated by European technologies with voter bribery cal projects, mostly performed in Solidarity, which was favoured mechanisms will remain serious the pro-Russian electoral field, by the loss of confidence in the challenges, i.e. transportation of will work in favour of local busi- Voice and the lack of real, new voters to the polling stations by ness, and therefore will oppose alternatives for the patriotic elec- private vehicles, “carousel voting” Russian influences and will not torate. It is possible that such po- or mass photographing of ballots. support separatist sentiments. litical projects are a matter of the Given the low voter turnout, such The clumsy actions of the cen- nearest future. anachronisms will be kept in use tral government undermined the Local oligarchic groups have for bribing and activating the FROM SUSHCHENKO PROMOTHOUGHT voter’s confidence in the turbo consolidated power, but in my constituencies. regime know-how and pushed opinion, they are unlikely to go The main task of new political him or her to clear conservative into open conflict with the cen- projects and traditional political decisions in favour of local lead- tral government, despite sharp forces in the upcoming national ers. The Ukrainian voter filled contradictions. Instead, the cen- elections will be to experience the ballots with significant con- tral government will cooperate new social trends and take advan- fidence in local political elites with the local government, re- tage of this. and mayors. And this trend only gardless of their party affiliation. strengthens local self-govern- It will be a matter of time before ment and convinces of the suc- the optimal balance of pow- cess of decentralisation reform. er is found between the central It provided local leaders with government and local self-gov- the necessary powers, adminis- ernment. Situational political trative and financial resources, alliances, based on personal or which not all their predecessors regional interests, will be formed have had since Ukraine’s inde- in most regions of Ukraine. At the pendence. Through appoint- ments and redistribution of local budgets, the elites have increased their influence, and GERMAN AMBASSADOR TO UKRAINEGERMAN AMBASSADORANKA FELDHUSEN:TO UKRAINE ANKA “CONSTITUTIONALFELDHUSEN: CRISIS“CONSTITUTIONAL IS AN EYE- OPENERCRISIS FOR IS ZELENSKY”AN EYE-OPENER FOR ZELENSKY”

The recent ruling of the warm-heartedness with which Ukrainian Constitutional the Ukrainians receive me,” Court on anti-corruption says the German Ambassador reforms created new im- with a smile. petus for judicial reform, and the G7 Reform Support Group works closely with the Ukrainian authorities on that, says Ambassador of the Federal Republic of Germany to Ukraine Anka Feldhusen. In an interview with Brussels Ukraїna Review, she shared her worries about legal insecurity for investors and spoke about the support that Ger- many provides to Ukraine as well as about her love for this

country where she is current- INTERVIEW ly posted for the third time. “What never changes is the

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What is the best achievement and the worst failure of Ukraine For ordinary Ukrainians under Zelensky? this crisis has also other implications. There is some That is for Ukrainians to judge. information that the European Many in the international com- Commission might suspend munity were impressed when the visa-free regime because President Zelensky came into of- relative stability and calm. of failure to provide anti- fice with an enormous amount Pressure will grow to secure corruption reforms. Do you of enthusiasm and willingness to this situation, since peo- think that Ukrainians will need implement change. He managed ple crave for a normal life. visas to travel to Schengen? to push through very difficult le- Therefore, we should all ful- gal projects that had been dead- ly support the continuation I think the visa-free regime is locked for a long time. One of of this ceasefire. Among other one of the biggest achievements them is the unbundling bill for achievements are the two since the “Revolution of Dignity” the gas sector that was adopted prisoner exchanges and the in 2014. People-to-people con- in November. Another one is the opening of two more entry/ tacts were already strong before, land market reform, which has exit points, unfortunately only but the new rules have helped been debated for an even longer by the Ukrainian side. These enormously. Can Ukraine lose time. In addition to these huge are concrete issues where a this privilege? Anti-corruption legal projects, there were many lot of progress has been made, structures were a certain pre- smaller, but similarly important and I believe once the pan- condition for the visa-free re- initiatives. For us as long term demic is over, we will see more gime. For the time being, I think, partners – and also perhaps as results. From a humanitarian the EU will certainly continue to Germans in particular (laughs) – point of view, and also with re- monitor current developments. the challenge posed by this ener- gard to “winning the hearts and From our side, we will support gized and quick-paced work en- minds of the people”, issues like our Ukrainian partners as much vironment is a continuous staff pensions for those living in the as we can to adapt the course. rotation in government and state non-government controlled ter- Personally, I am optimistic that institutions. ritories remain, so does drink- Ukraine will keep the visa-free ing water supplies, and so on. regime. What about the Constitutional crisis and anti-corruption Mrs. Ambassador, one of reforms now? Ukraine is the most pressing issues for plunged into another crisis. Ukraine is the situation in How does it impact Kyiv’s Donbas. Do you see any relations with Berlin? changes, any positive signs in this development? It seems that the Constitu- From our side, we tional Court ruling has, indeed, Progress remains slow. Still, hit the anti-corruption structure will support our from my point of view, there is in a sensitive spot. As EU and no alternative to the Minsk pro- Ukrainian partners G7 Ambassadors, we have con- cess. President Zelensky and his sulted with the Ukrainian side team have clearly demonstrated as much as we on quite a regular basis to help that they are ready to take initi- facilitate a solution. In any case, ative. And they have been very can to adapt the what I consider a real opportu- active throughout the last year, nity in this difficult situation is course. Personally, indeed. The main achievement that the ruling has brought judi- is the ceasefire that has been in INTERVIEW cial reform into focus. As part of I am optimistic place since last summer and that the EU and the G7 Reform Sup- has saved the lives of soldiers port Group, we have put together that Ukraine will and civilians alike. In addition, a few ideas for judicial reform the lasting ceasefire contributes and have presented them to the keep the visa-free to people on both sides of the Ukrainian side. contact line getting used to this regime. This is where the implementation of the Minsk agreements can really make a difference in a shorter term. These issues are debated and can be solved in the Minsk working groups. We Among other problems of are working intensively to sup- We observe Ukraine in the international port that. In any case, a success- arena is the construction of the ful and economically attractive a relatively Nord Stream-2 gas pipeline. Ukraine will serve best as a role Washington is apparently model and, thus, also as a mag- constant change preparing new sanctions against net and also for those living in the project. What is the reaction the non-government controlled of legislation in of Berlin to this? territories. Ukraine. However, Germany, together with the What about Germany and EU, firmly opposes extrater- France? Some experts say that foreign investors ritorial sanctions. Unilateral representatives from these sanctions against close allies countries should be more are often bound by are definitely not the right way. involved in the process. strict compliance A concerted approach towards Russia’s behavior could strength- For the time being, I can hard- rules and can en our transatlantic unity. Ger- ly imagine where Germany and many takes Ukraine’s concerns France could be more involved thus not act the very seriously. That said, we are in mediating between Russia and already working with our Ukrain- Ukraine. Minsk has to serve as a same way as their ian partners on future sources of long-term process because we rival Ukrainian energy supply. One of our focus are convinced that, in the end, areas of support and cooperation there can be only a political and companies with Ukraine is ‘green energy’ not a military solution for this and energy efficiency. In order war. And we continue working to deepen this cooperation, we tirelessly for that. have implemented an Energy Partnership last year. So, with We know that Germany regard to energy, Ukraine is and supports Ukraine’s European will remain an important part- integration. But what does ner. Berlin think about real chances of Kyiv joining the EU? What about the case with poisoning Alexey Navalny? Did Yes, we want the closest pos- the mood in Germany towards sible degree of integration. And Russia change, also including there is still quite a way to go. Nord Stream 2? Ukraine can and should do its part - by implementing reforms, Of course the German public by becoming economically more took great interest in Mr. Naval- successful, by creating fair and ny’s case when he came to Ger- equal conditions for foreign and many for treatment. Many were domestic investors. shocked by the heinous poisoning. We were glad that he made a full recovery. And when laborato- ries in Germany, Sweden and

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are now even thinking about Germany is one of the biggest expanding further to the east in France found evidence – later investors in Ukraine. What do Ukraine in order to satisfy their confirmed by the OPCW (Organi- German business people say demand for labor. By the way, sation for Prohibition of Chem- about Ukraine’s investment one of the biggest German in- ical Weapons) - of the use of a climate? What problems and vestments lately came from Kos- military-grade nerve agent, we obstacles do they have? tal, that invested 39 million eu- came to be a bearer of bad news ros to produce automotive parts to the international community - Indeed, Germany is a big in- near Boryspil. about a grave breach of interna- vestor in Ukraine. There are Nevertheless, both newcom- tional law. On a European level, more than 2,000 German compa- ers and those German compa- this then resulted in sanctions by nies active in Ukraine, many of nies that have been around for the EU-27 against Russian indi- which have been here for a long longer face problems that have viduals deemed responsible for time and most of which being not changed much throughout this crime and breach of inter- quite satisfied. They are earning the last couple of decades. The national norms, based on their good money, and they are em- first and foremost problem re- official function, as well as an ploying many Ukrainians. Some mains legal insecurity. We ob- entity involved in the Novichok enterprises, especially the auto- serve a relatively constant change programme. motive ones in Western Ukraine, of legislation in Ukraine. from war. For example, we have strengthened social infrastruc- However, foreign investors are ture in these communities by often bound by strict compliance helping to renovate kindergar- rules and can thus not act the tens, hospitals, schools, and cul- same way as their rival Ukrainian Our second focus is on energy tural centres along the contact companies. This is why we sup- efficiency and green energy, and line. We have supported local port local efforts in establishing the third being on support for administrations in municipali- clear and sustainable rules in or- small and medium enterprises. ties that have worked with IDPs. der to enable investors for long- In these three fields, we have I have recently been to Krama- term commitments in Ukraine. been active for decades and we torsk and visited a hospital there Investors remain interested in have gained quite a lot of expe- where we were going to renovate Ukraine - especially with what rience and established reliable a laboratory. Last but not least, we have learned from the pan- partnerships with Ukrainian in- Germany provides treatment to demic. There is the concept of stitutions. Ukrainian soldiers in Germany “nearshoring”, which means Our “+1” sector is the support who have been wounded in the that companies have understood for the oblasts that have wel- war in Donbas. that focusing exclusively on pro- comed a majority of Internally Personally, I am often touched duction sites in, let’s say, China Displaced Persons (IDPs) from by “little” projects that aim at or India may not be ideal when the non-government controlled people-to-people contacts on global supply chains are cut off territories after 2014. Those site. For instance, we carry out by something like a pandemic. smaller projects especially have a project for female bloggers Many companies have there- an impact for people who live from both sides of the contact fore already expressed interest along the contact line and suffer in building production sites in Ukraine, especially in the field of pharmaceuticals because of the pre-existing strong pharma- ceutical industry in this country.

Quite recently Berlin made a voluntary contribution of EUR 1 million to support the implementation of the Council of Europe Action Plan for Ukraine to help the country in the areas of human rights, the rule of law and democracy. Can you give us other recent examples of Germany’s support to Ukraine?

That is my biggest “problem” – there are so many projects that I always find it hard to name only a few of them (laughs). Overall, our support is focused mainly on “3+1” sectors. We work most actively in, first, the area of decentralisation and good governance.

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line to exchange their views. I think these micro-projects are so important because they create platforms where people can still talk to each other after six, almost sev- en years of war.

You have been the German Yes, we want ambassador for over a year now. the closest What are the best, the brightest moments possible degree during this period? of integration. One thing that never changes And there is still is the warm-heartedness with which the Ukrainians receive quite a way to go. me. It was like this in the ‘90s, it was the same from 2010 till 2015, Ukraine can and and it has been exactly like that since I arrived in 2019. should do its part - by implementing Natalia Richardson reforms, by Investors remain becoming interested economically more in Ukraine - successful, by especially with creating fair and what we have equal conditions learned from the for foreign and pandemic. domestic investors. CRIMEAN POLITICAL CRIMEANAND SEISMIC POLITICAL ZONE AND SEISMIC ZONE

INNA KRUPNYK IS A FREELANCE JOURNAL- he issue of restoring IST, COMMENTATOR AND the sovereignty of Ukraine and return- COPYWRITER. SHE HAS ing the territories of MORE THAN 15 YEARS Crimea and Donbas temporarily occu- OF EXPERIENCE IN Tpied by Russia is as multi-vector as MARKETING AND AD- life itself. In addition to a need for the observance of international VERTISING BOTH AS A legal principles of territorial sov- PART OF STAFF IN SYS- ereignty and support for the world TEM COMPANY AND AS order, obvious to the majority, politics, diplomacy and economics A FREELANCE MARKET- collided here in a big way. On the ING ENTREPRENEUR. one hand, Russia is an aggressor, condemned by numerous resolu- SPHERES OF JOURNALIS- tions and economic sanctions; on TIC INTEREST: NATION- the other hand, Russia is an economic partner and supplier of oil AL REVIVAL, REFORMS, and gas. The economic weakening HISTORICAL PARALLELS, of the raw material colossus is perceived by many political leaders CULTURAL PROCESSES, as undesirable due to the pro-Rus- MICROECONOMIC PRO- sian lobby in European political circles. Thus, the Crimean issue CESSES IN UKRAINE, has political, diplomatic and eco- GENDER EQUALITY. PAR- nomic aspects. Therefore, the international community, in par- TICIPANT IN CONFER- ticular the European institutions, ENCES, FORUMS AND must use both levers of influence SEMINARS IN MATTERS on the Russian Federation. RELATED TO POLITICAL PROCESSES AND RE- FORMING THE ECONOMY. CRIMEA IS IS CRIMEA UKRAINE

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The main task of Ukrainian diplomacy “here and now” Black Sea and the Sea of Azov”) is to convey the message is marked as “strengthened.” The that Russia’s presence in resolution was supported by 63 Crimea and Donbas is not countries (62 countries abstained, only an internationally 17 countries, including Russia, craft, from 22 to 100; and the number recognised fact of aggres- voted against it). Sixty-three na- of artillery systems of various calibers sion against Ukraine but tions unequivocally condemned from 24 to 283. And by 2025, the Russian also a cause of destabilisa- Russia’s temporary occupation of military presence is expected to double tion of the entire European Crimea and identified it as a threat at the very least. region already with a wider to international, not just regional The resolutions of the UN General geography of Russian insecurity. In addition, the resolu- Assembly of 2016-2019 on Russia’s hu- fluence. Since the arrival tion calls for the withdrawal of man rights violations in the occupied of the Russian military in Russian troops from Crimea and Crimea were a separate instrument of Crimea in February 2014, the immediate return of control political pressure on Russia. The latest international organisations over the territories to Ukraine. In UN General Assembly resolution con- have declared the occupation contrast to previous resolutions, tains information on the replacement and annexation of Crimea the third document of the UN of the population in Crimea, its mili- illegal and condemned Rus- General Assembly referred to Rus- tarisation, intimidation and political sia’s actions largely due to sia’s illegal seizure of former nu- persecution of civilians, enforced dis- Ukraine’s diplomatic efforts clear weapons storage facilities in appearances and other illegal actions on the world stage. Western Crimea and the establishment of and human rights violations, especial- countries imposed economic control over them, the relentless ly against the Crimean Tatar popula- sanctions, despite the resist- militarisation of the peninsula, as tion, of which Russia is accused. The ance and lobbyist influence well as the continued conscrip- resolution urges Russia to immediate- of Russia, which continues tion of Crimean residents into the ly stop gross human rights violations to deny the occupation of the Russian armed forces as violation and to ensure unhindered access of peninsula and calls it nothing of international humanitarian law the UN and OSCE international mon- more than “the restoration of or the inclusion of Crimean edu- itoring missions to Crimea. historical justice”. cational institutions in the Rus- However, the results of these However, the restoration of sian “military-patriotic” education diplomatically declarative levers the only possible historical jus- system. The resolution calls on of pressure on Russia are not very tice lies in the plane of interna- Russia to put an end to this prac- comforting and often illustrate the tional law, not in the legitimisa- tice. In addition, the resolution phrase “The dogs bark, but the cara- tion of the aggressor’s actions. mentioned construction of war- van goes on.” And the caravan here, Ukraine makes significant ef- ships, conduct of military exercis- unfortunately, is Russia, with a firm forts on Crimea issues in the es and other military activities, as conviction of its own truth and vic- diplomatic field, in particular well as the implementation of the tory, which it demonstrates widely. in international organisations, Russian transport project Tavrida The Russian authorities, as in previ- primarily the United Nations. In as a tool for further militarisation ous years, criticised the document, total, there were several resolu- of Crimea. calling it “anti-Russian.” And there tions of the UN General Assem- The disappointing dynamics were few mentions of the resolu- bly (UNGA) on Crimea, in par- and forecasts for the build-up of tion in the Russian media outlets. ticular, the resolution on Russia’s Russian military power in Crimea In particular, First Deputy Perma- “militarisation of the Autono- are evidenced by cold hard facts nent Representative of Russia to mous Republic of Crimea and which may further become blood- the UN Dmitry Polyanskiy tweeted the city of Sevastopol, Ukraine, stained. Thus, according to the statements reiterating Moscow’s as well as parts of the Black Sea website of the Ministry of Foreign claims about “Russian Crimea” and the Sea of Azov” and the res- Affairs of Ukraine, the number and the current “Maidan regime olution on the protection of hu- of Russian military personnel of Ukraine,” “Maidan madness,” man rights in Crimea, annexed increased from 12,500 in 2014 “Maidan fever” and “Maidan virus” by Russia. The latest resolution, to 32,500 in 2020; the number of in Kyiv. approved on 7 December 2020 tanks,from 0 to 195; of fighter air- (“Problem of the militarisation of the Autonomous Republic of CRIMEA IS IS CRIMEA UKRAINE Crimea and the city of Sevastopol, Ukraine, as well as parts of the Another aspect of the Crimean issue is economic, and this is the question of the effectiveness of sanctions pressure on the Russian Federation. For quite a long time, there was overconfidence and production in Russia); ban in Ukrainian society and politics that on the supply, purchase and sale “Western sanctions” are a universal of weapons and equipment; ban on cooperation with five Russian As for the possibility of in- and very effective instrument of pressure that will force the Russian lead- banks and nine enterprises of ternational monitoring mis- the Russian military-industrial sions’ access to the peninsula, ership to make certain concessions on issues of Donbas and Crimea or complex; ban on the use of debt Russia, through Spokesperson and financial instruments by for the Ministry of Foreign Af- to return these territories to Ukraine, reimbursing the material damage three Russian oil and gas com- fairs Maria Zakharova, stated panies; and restrictions on trade, that they were “ready for dia- caused, in the ideal case. According to forecasts, if Russia had refused to financial and other transactions logue with relevant interna- with organisations registered in tional human rights organisa- do this, it should have been prepared for an inevitable economic collapse Crimea. The second package of tions in Crimea, but within the sanctions, namely the sanctions mandate of the corresponding in the near future. However, this has not happened; the effectiveness of “against actions that undermine structures and related proce- the sovereignty and territorial in- dures that can be applied to sanctions in their current form cannot be proved, since the territories tegrity of Ukraine,” applies to 183 visit Russia.” That is, on their individuals, mostly citizens of the own terms. are still occupied, and Russia has recovered from the economic down- Russian Federation and Ukraine; It is worth noting that what- and 47 legal entities, including ever the UN General Assembly turn of the first years. The international sanctions 22 “organisations” (in particular, resolutions are, these are not Battalion Vostok, Battalion Soma- binding documents. Indeed, it against Russia began to be applied in 2014 and were supported by 41 lia, Army of Novorosiia, Donetsk is an increase in legal pressure; People’s Republic, etc.). Despite indeed, it is a consolidation of countries. A phased sanctions pressure was envisaged: the first stage the impressive number, there are international efforts; and in- few real companies on the list (no deed, it is a political and legal – restrictions on cooperation; the second – restrictions on the supply more than 25), including Tech- argument to promote the de-oc- nopromexport, Interavtomatyka, cupation of Crimea as assessed of certain types of technologies; the third – sanctions against certain sec- Almaz-Antey and other Russian by Minister of Foreign Affairs of defence enterprises. Ukraine Dmytro Kuleba. How- tors of the Russian economy. The sanctions of the first and second However, according to Iliya ever, all these measures are a Kusa, an analyst at the Ukraini- long-term prospect and Ukraine stages, imposed on the Russian Fed- eration, were valid for 12 months an Institute for the Future (UIF), needs them “here and now.” despite the large list of sanctions, Perhaps, the international and were regularly prolonged every year. The current sectoral there is no full-fledged pres- summit for the de-occupation of sure on the Russian Federation Crimea within the framework of sanctions of the third stage are re- viewed every six months, they were because the sanctions are not the international Crimean Plat- comprehensive and do not cov- form, scheduled for May 2021, last extended in December and will remain in force until 31 July 2021. er Russia’s entire economy, often will become more effective diplo- leaving Russia room for economic macy in terms of efficiency rath- To briefly list the mechanisms of pressure on Russia, they relate to maneuvers. The ineffectiveness of er than effect. Turkey, the Unit- the sanctions is also evidenced by ed States, Poland and the Baltic the following sanctions: ban on doing business with Crimea; ban the Russian Federation’s GDP: the states have expressed interest in Russian economy grew by 0.3% in participating in the summit. Kyiv on the supply of tools, technologies and products for the develop- 2016, by 1.6% in 2017, and by 2.3% plans to invite Russia to the nego- in 2018 compared to last year. The tiating table. But, so far, this pro- ment of oil and gas fields to Russia (however, this applies primarily situation with the package [of ject is under development, so we sanctions] on Crimea is similar. will keep our finger on the pulse. to tools for deep drilling and does not apply to those used in the old technological process of exploration

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It would work if it was about the peaceful development of Crimea’s economy by Russia. adapt to the new conditions. In In fact, it creates a powerful particular, a technocratic albeit group of troops there and Putin-led government is grad- conducts military rather than ually shifting Russia’s economy civil or economic modernisa- to a new model. It lies in the fact tion. Therefore, sanctions are that the Russian economy will not critical to the implemen- henceforth be based on a pre- The main task tation of these plans by Rus- dominantly domestic financial sia, as they more often relate and monetary system and on its of Ukrainian to peaceful life, and not mil- own monetary unit (rubles) both itary restructuring. It is safe for lending to its own business diplomacy “here to say that the sanctions of and for accumulating wealth. the “Crimean package” affect When the transition to the new and now” is the development of peaceful system is completed, the need infrastructure of the Crimean for external “inflow” of capital to convey the peninsula and significantly in- will almost disappear, because message that crease the cost of maintaining Russia’s wealth will be formed the annexed peninsula for the solely by domestic resources and Russia’s presence Russian budget. However, giv- agents. And there are already en the general state of Russian some results. Thus, according to in Crimea and finances, this is not a critical the Bank for International Settle- problem for the implementa- ments (Switzerland), internal and Donbas is not only tion of Russia’s policy of milita- external liabilities of banks and risation of the region. non-banking businesses in Rus- an internationally For some time, the “Ukrain- sia are successively declining. ian issue” was among the top Sanctions have always been recognised fact three on the international an effective tool when applied agenda and really united sever- correctly, but they change the of aggression al leading countries in putting balance of power in the next 10- against Ukraine pressure on Russia. We were 15 years and are ineffective in already rejoicing at the victory terms of the here-and-now influ- but also a cause and forecasts for a drop in the ence, except for the first 2-3 years level of incomes of Russians, of “sanctions shock.” Russia was of destabilisation a decrease in export volumes, fully shocked by the first peak of a collapse of the national cur- the sanctions impact - the coun- of the entire rency and other processes that try’s nominal GDP fell by 3%, and should have pushed the Krem- exports (in monetary terms) by European region lin to change its political course more than 40%. However, there and, perhaps, even to a “palace is no need to talk about the ex- already with a coup” that would be carried out ceptional influence of sanctions, wider geography by oligarchs from Vladimir Pu- since the Russian economy is tin’s circle of close associates, highly dependent on oil and com- of Russian who were dissatisfied with the modity prices. In 2014-2015, there sanctions affecting their business. was a collapse in oil prices almost influence. But gradually the Ukrainian issue twice. That is, the decline of the was put on the periphery of inter- Russian economy is primarily national politics from the top five associated with the situation in on the agenda of the EU and the foreign markets, and only then US, as it included Syria, Turkey, with the impact of sanctions. This terrorist acts in Europe itself, the is noticeable from the change in U.S. election and the pandemic. the structure of foreign trade of However, the Russian economy itself recovered after the first shock from the sanctions and began to the Russian Federation – a decrease in the share of the oil and gas component and an increase tions is insignificant due to the in the share of agro-metallurgical fact that the imposition of sanc- industry. Thus, we can conclude According to tions requires the consent of all 28 that the Russian economy has ex- members of the Council of the EU perienced a shock since the first the website of on each point of the decision for years of sanctions and has already each company or for each person. adapted to new conditions. Ac- the Ministry of In addition, EU sanctions primar- cording to Dmytro Nekrasov’s re- ily concern European companies port “Limits of Russia’s Strength,” Foreign Affairs and companies with a share of published by the Ukrainian Insti- European capital. They do not ex- tute for the Future in 2017, the de- of Ukraine, the tend restrictions to other Russian cline in GDP stopped in the fourth defence partners. On the whole, quarter of 2016 and, according to number of Russian this suits Russia, since the market various estimates, amounted to outlets for its weapons are located 0.3-0.5%. The ruble strengthened military personnel outside the EU, and the produc- by 31% compared to the peak val- increased from tion process does not involve the ues of early 2016; stock indices use of a large number of European grew by 35-40%. Net capital out- 12,500 in 2014 components. flow by the private sector fell from A separate factor influencing USD 152 billion in 2014 to USD 19 to 32,500 in 2020; the sanctions situation is the ac- billion in 2016. Inflation decreased tions of another more flexible and from 12.9% in 2015 to 4.2% in ear- the number of independent player – the United ly 2017. Russia’s Central Bank cut States. The USA is not among Rus- the key interest rate from 17% to tanks, from 0 to sia’s top five foreign trade part- 9.5%. ners. It is a source of technology We cannot talk about the com- 195; of fighter and technological equipment. plete ineffectiveness of sanctions. aircraft, from In 2013-2017, the volume of sup- Russian President Vladimir Putin plies of technological equipment said in 2015 that the total impact 22 to 100; to Russian companies fell signifi- of falling oil prices and sanc- cantly both in price and quantity. tions cost Russia USD 160 billion. and the number That is, the main sanctions mech- Bloomberg claims that over the anism of the US is a restriction five years of sanctions and falling of artillery systems on the transfer of technology and oil prices, even after overcoming technological equipment to Rus- the first shock, the Russian econo- of various calibers sia, which will affect the develop- my has lost about USD 150 billion. ment of the Russian economy in China, Germany, and the Neth- from 24 to 283. the next 10-15 years. However, in erlands were Russia’s three major practice, there are ways to circum- trading partners in 2018. More vent the sanctions, in particular, than a quarter of trade turnover to sell technological equipment falls on these countries. The sanc- through companies in third coun- tions did not affect the structure tries (Belarus as an example). It of trade with these countries in is important to understand that any way. It should be noted that technological sanctions are a large Russian companies such as long-term prospect. The sanctions Gazprom have not yet come un- that restrict Russia’s ability to im- der sanctions. That is quite under- port technology for scientific and standable as they all do business technological development, pri- in the EU and have support groups marily the oil and gas industry, among the political elites of the may prove to be the most effective European Union. The possibility of their falling under the sanc-

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of all above-mentioned packages. The first signs of industrial crisis due to technological backward- or revenge for getting out of the ness are already visible in Russia. political influence of Russia itself. It is worth changing approach- Thus, the here-and-now decision es to sanctions. The standard on Nord Stream 2 will have a sig- approach assumes that Russia’s pendence on whether Russia will nificant political effect. economy is seriously affected by cope with the construction of Nord Given how Russia has managed the lack of access to foreign cap- Stream 2 solely on its own, with- to maneuver and recover from the ital, saying that it is an incentive out involving front companies. On sanctions shocks of the first years, for the Kremlin to normalise re- 11 December, world news agen- it is worth putting pressure on lations with the West and other cies announced the resumption its most tender place right now, countries and restore the “inflow” of works on a 2.6 km section of up without waiting for the effect of of capital by making concessions to 30 meters in depth between the sanctions in 10-15 years. The Nord in the Crimean issue. However, Danish island of Bornholm and Stream 2 project is almost 97% statistics show otherwise. In addi- the Baltic coast of Poland. For- complete. The United States has tion to strengthening the domes- mally, the construction is being already responded to this and is tic model of the economy, Russia carried out by private companies about to amend legislation to al- does not rule out the possibility of backed by Gazprom and with the low broader consultations with enhancing the economy by active- involvement of exclusively Rus- EU partners before a possible ex- ly attracting investment. All strat- sian pipe-laying vessels. Howev- tension of sanctions against the egies approved in Russia for the er, new U.S. President Joe Biden, pipeline, so that they are not uni- development of certain industries with his tough stance toward Rus- lateral, but multilateral in terms (including energy, transport, tech- sia, intends to expand sanctions of nature and influence. Rapid nology, grain, etc.) are aimed at against construction contractors and joint pressure on Russia is re- improving the business climate for in January, expecting that Russia quired not to close completely but investors (primarily from the US, will not be able to complete the to suspend the Nord Stream 2 pro- Europe, Japan and China). In the construction of another 160 km of ject until the moment when Rus- Doing Business 2014 ranking (con- gas pipeline without shell pipeline sia demonstrates its flexibility and ditions were assessed from June companies. is ready to reach a compromise on 2012 to June 2013), Russia ranked Opponents of the completion of the de-occupation of Crimea. 92nd, Ukraine, 112th. In the Doing Nord Stream 2 call for the need to de- Business 2019 ranking, Russiatook velop alternative energy sources for 31st place, and Ukraine took 71st. Europe and warn against the dan- After 2025, the Russian govern- ger of Russia playing on compro- ment expects a sharp increase in mises with individual European foreign investment, the influx of countries, which may continue to technology and the intensification cause controversy in the EU’s joint of scientific and technical coop- actions. In addition, the growth eration. That is, we can conclude in gas consumption is contrary that by 2025 the Russian Federa- to the Paris Climate Agreement. tion expects to enter the regime According to the German Green of canceling or suspending the Party, the further construction main sanctions packages that are of the pipeline will continue to currently hampering the devel- split Europe, and Russia’s inten- opment of the Russian economy, tions to ultimately abandon gas especially technological develop- transit through Ukraine cannot ment. be called an attempt to diversi- And here, in the eyes of world fy supplies as they try to show. politics, the main target should be This is purely political pressure the Nord Stream 2 project, which contains opportunities for economic and technological pressure on Russia. There is a direct de- NOWNOW ANDAND THEN: THEN: ASSESSING ASSESSING COVID-19COVID-19 IMPACT ON EU`S RELATIONSRELATIONS WITHWITH RUSSIA RUSSIA

– MARYNA YAROSHEVYCH IS A MEMBER OF THE BOARD OF DIRECTORS OF THE FOREIGN POLICY COUNCIL “UKRAINIAN PRISM”, DIRECTOR OF UKRAINIAN WORLD CONGRESS REPRESENTATION TO INTERNATIONAL ORGANIZATIONS IN BRUSSELS (2017-2019), COORDINATOR OF PARTNERSHIPS AND EVENTS . EU RUSSIA RUSSIA

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hile the COVID-19 pandemic is still raging throughout Wthe world, and its aftermath is far away from being readily available to take stock of, it is nevertheless early 2000s. Following Pu- a high time to pose a question on tin’s creeping suppression how the pandemic has already af- of independent media, per- fected a geopolitical balance of secution of political rivals power worldwide. The underlying and, finally, its brutal inter- assumption is that COVID-19 has vention in Georgia in 2008, To put its foreign become a major stress test for any no one in Brussels (both the given inter-governmental relations EU and NATO) could any policy, vis-a-vis that has: 1) either exposed and ac- longer perceive Moscow dif- celerated existing tendencies; or 2) ferently from at best a “stra- Russia, into created additional complications tegic threat.” Russia, on its perspective, the EU and restraints in setting the re- part, has also been quick in cord straight when relations had retaliating by blaming the EU decided in 2016 to been previously compromised. In for extending its own “sphere the sections below, this assump- of influence” over Eastern Eu- come up with tion will be verified based on the rope and South Caucasus via official documents, decisions and its Eastern Partnership initia- a framework based positions upheld by the EU and its tive, which the former has dis- Member States (MSs) via-a-vis Rus- carded from the get-go. Eco- on five principles, sia overtime and, most importantly nomic ties, nevertheless, have recently, in times of global epide- been important for both sides which were miological threat. and had been carefully main- tained all along despite accu- confirmed by the mulating political cleavages. Quick overview of Approaching the point of new HR/VP the past two decades: no return in EU-Russia relations, however, was speeded in March 2020. EU`s growing distrust up by Russia’s outrageous occupation of Crimea and military aggression in Eastern In the last two decades, the EU’s Ukraine since 2014 for which relations with global actors, such it has been sanctioned on four as the US, China and foremost levels: political cooperation; Russia, have been put under the economic restrictions, targeted ultimate test. Towards the end of at Russia’s financial, defence 2020, it is evident that EU-Russian and energy sectors; a near-total Federation (RF) relations resem- ban on EU-Crimean trade and ble anything but normalcy. Long investment and individual sanc- gone are the days when both sides tions comprising visa bans/asset were mesmerized and addressed freezes of around 150 people and each other as “strategic partners” 40 organisations. Today, sanc- at the beginning of Putin’s first tions still are extended twice a presidential term in office in the year (in January and July) and no formal mitigation has been agreed upon despite descending voices of some of the EU member states’ leaders. In addition to Ukraine being dations, its 2019 resolution pro- a bone of contention, over the vided that “the EU should stand years there have been multiple ready to adopt further sanctions, other obstacles preventing the including targeted personal sanc- improvement of EU-Russia relations, and limiting access to fi- tions. The list includes Russia’s nances and technology if Russia’s military intervention in Syria, violations of international law Libya and the Central African Re- continue.” public, to name but a few; torture Despite rapidly growing ev- in detainment that led to death of Approaching the idence calling for the EU’s un- Sergey Magnitsky; murdering of ambiguous response, the EU’s opposition leader Boris Nemtsov; point of no return concrete measures, after heated the attempted poisoning of for- in EU-Russia debates, have been boiling down mer Russian spy Sergey Skripal; to slow and piecemeal efforts. The and Russian “active measures” relations, however, widely cited East StratCom Task consisting of meddling in elec- Force at the EEAS has remained tions and referenda, spread of was speeded overtime nothing more than a disinformation and instigation of team of a dozen EU bureaucrats cyberattacks aimed at destabilis- up by Russia’s fighting multimillion Russian ing the EU and its Member States. propaganda and disinformation To put its foreign policy, vis-a- outrageous machinery with the help of a sin- vis Russia, into perspective, the gle website containing videos, in- EU decided in 2016 to come up occupation fographics and some disinforma- with a framework based on five of Crimea tion debunking narratives. As for principles, which were confirmed countering cyberattacks affecting by the new HR/VP in March 2020. and military the EU MSs since at least 2007, They include: full implementa- after years of working on Cyber tion of the Minsk Agreements on aggression in security toolbox (2017), Council eastern Ukraine as a precondi- framework for new sanctions re- tion for lifting restrictive meas- Eastern Ukraine gime (2018-2019) etc., the EU ap- ures against Russia; attempts to plied its regulations for the first strengthen relations with post-So- since 2014 for time only in July 2020. It sanc- viet states; strengthening the EU’s tioned in total six individuals and resilience to Russian threats; se- which it has been three legal entities, among them lective engagement with Russia from Russia four people and one on issues of common concern sanctioned on four company. such as countering terrorism; levels. Examples of the EU’s under-re- and support for EU-Russia peo- action to Russia’s “active meas- ple-to-people contacts. ures” described before could go European Parliament, while on. The point remains the same: supporting the adopted five prin- lack of the EU’s adequate (strong ciples, has been consistently even and strict, effective and efficient) more vocal (albeit less potent to response to Russia’s amassing act) regarding the “true colours” threats to security and democ- of the Putin regime and the re- racy in the EU and wider region quired course of action for the has unequally harmed the two Union. Among other recommen- sides. EU sanctions allegedly cost the EU 0,2% of its GDP. Yet, the

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Nonetheless, it hasn’t Role of EU plotting “a new beginning” for prevented the Kremlin from bragging MS`s leaders in EU-Russia ties in view of wors- about its benign motives while promot- ening economic realities and ing its geopolitical and geo-economic trying to mend projections. The truth is that de- motives. The irony is that throughout relationships spite Moscow’s intensification of the pandemic Moscow has been active- economic relations with China, ly busy with what it does best: sowing with Russia the EU remains its main econom- discord among EU MSs and distrust ic partner accounting for 42% of vis-à-vis EU neighbours, undermin- In spite of the EU’s gener- Russia’s export as of 2019. There- ing EU unity and creating info-chaos ally uncompromising rhet- fore, it comes as no surprise that by means of infodemia (stuffing me- oric over Russia’s violations from portraying the collective dia outlets with low-quality conflict- back, front and center, with- West as its biggest external secu- ing messages about the virus and its in the EU there have always rity threat, Russia is zooming in cures). Yet, Putin has not shied away been ample voices privileg- on the US while gradually warm- from calling a general moratorium on ing engagement with Russia ing up its citizens’ public opinion sanctions claiming that any restric- over hostility. Incentivised towards Europeans. According to tive measures are counter-productive by Russia, itself or out of Levada Center, in 2019, the EU’s against the backdrop of the global their own convictions, such approval ratings among Rus- pandemic. EU leaders as Czech presi- sians, reached more than 50% While the claims regarding the dent Miloš Zeman and prime for the first time since Russia’s effects Russian disinformation has minister Andrej Babiš, Cypriot military intervention, picking up had on the European public cannot president Nicos Anastasiades, from 20% a few years back. This be realistically measured, the EEAS and Italian prime minister upward trend is not apparently in its report published in April 2020 Giuseppe Conte, have argued shared among EU MSs. A Pew Re- concluded that coronavirus-related overtime that sanctions are search Center study done in 2019 disinformation in the EU was pre- costly, ineffective and should revealed that only three (Bulgar- dominantly stemming from Russia be abandoned. In 2018, then ia, Greece and Slovakia) EU Mem- and aimed at spreading confusion German foreign minister Sig- bers look at Russia rather favour- as well as discrediting the EU’s re- mar Gabriel suggested, albeit ably than warily. sponse to the crisis, and it had in covert language, that should reached millions of European so- fighting stop in Ukraine, some COVID-19, recent cial media users. sanctions could be lifted before By scattering the EU’s attention full implementation of Minsk developments and over an unexpected wave of COV- Agreements. EU deadlock over ID-related challenges, Putin has The most worrying of all “masked” the Russian Constitution- “‘appeasement crowd” voices, relations with Russia al Referendum from internation- however, belongs to French al oversight. Meanwhile, for any Russian scholar it doesn’t take be- President Emmanuel Macron. The COVID-19 pandemic and Driven by desire for the EU to ing a genius to discern that under subsequent lockdowns have hit the pandemic pretext the Russian get strategic autonomy from the hard economically most of the US and distance itself from what President has slipped in constitu- countries around the world (with tional amendments that prolong he called a “brain dead” NATO, China being among the few ex- he sees Russia as at least a situa- and bolster his authoritarian rule ceptions). Neither the EU, nor in Russia and effectively turn him tional partner in achieving these Russia, have been lucky to escape aims. He acknowledges himself, into a “tsar,” according to some the virus’ detrimental effects. commentators. though, that restoring relations However, not only hasn’t COV- with Russia will be a tiresome ID-19 pacified Russia’s aggressive It comes as no surprise that any attempted protests, includ- By way of conclusion ing the ones in Khabarovsk over the detention of governor Sergey Furgal, were suppressed and in- As evidenced from this brief ternational media was distracted overview, the battle of narratives from reporting on the true mag- Incentivised by between the EU and Russia rag- nitude and intensity of popular es on. While the latter steps up discontent. Where internation- Russia itself, or its aggressive policies on many al media attention could not be fronts, both at home and abroad, avoided is the attempt to take the out of their own the EU keeps on trying to preserve life of another opposition leader, convictions, such its unity and clarity regarding Alexei Navalny. The EU was rela- Russia’s actions. Its “real politik” tively quick in adopting individ- EU leaders as vis-à-vis Russia has been virtual- ual sanctions against six individ- ly absent while “soft power” tools uals, days after the Organisation Czech president are not bearing much fruit when for the Prohibition of Chemical it comes to attempts to change Weapons (OPCW) confirmed that Miloš Zeman Moscow’s course of action. For the substance used to poison Na- its part, Russia deplores the EU’s valny was Novichok, a Soviet-era and prime continued adherence to its 2016 nerve agent. five principles, and it insists that This extension of sanctions minister Andrej relations can only be improved if is regrettably the only tangible Babiš, Cypriot the EU and NATO meaningfully measure taken by the EU follow- change their policies. Thus, the ing the events involving Russia president Nicos ping-pong game goes on. The over the months of pandemic. question is how much longer and For the rest, the EU remained Anastasiades, how much more will the EU tol- concerned about the growing list erate before putting its foot down of “hot spots” with Russia’s foot- and Italian prime and interrupting Russia from un- print: now extending to Belarus, dermining it from within, inflam- Nagorno-Karabakh (Armenia and minister Giuseppe ing the neighbourhood and other Azerbaijan) and Kyrgyzstan, but selected states around the world again, as always, did little to ma- Conte, have and critically harming the Rus- terialise its concern. sian state itself? Despite Russia’s own health- argued overtime care system’s misery, the Kremlin that sanctions are cannot miss a race for developing a COVID-19 vaccine. According costly, ineffective to Russian scientists, its Sputnik V (named after the first satellite and should be launched into space by the Soviet Union in 1957) has a 95% effec- abandoned. tiveness rate, and Russia would be happy to share its “recipe” with anyone willing and able to produce it. Thus far, out of all the Member States only Hungary has declared its willingness to test the Russian vaccine, paying little attention to EU’s plea not to risk “unknown substances.”

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he seventh an- brazen poisonings and assassina- ues. Not being sufficiently pun- niversary of the tions of opposition leaders. ished, President Putin’s regime Ukrainian Revo- In addition, Russia fearlessly now ignores international law lution of Dignity violates human rights. altogether, demonstrating its su- has passed. At the According to the Prison- periority over all European states, same time, 2021 ersVoice campaign, at least 99 including yours. Tmarks the seventh year of the oc- Ukrainian citizens are impris- We believe in your ability to be cupation of Crimea, the war on oned for political reasons in Rus- an agent of change and to help the eastern border of Europe and sia and the occupied Crimea, and end the war, bring Russia to jus- the terrorist attack on the down- at least 251 are in the basements tice and restore justice through- ing of the MH17 civilian aircraft of the occupied Donbas. out the European continent. over the Ukrainian sky. During the period of Rus- You can express your support, The shameless invasion of sia’s armed aggression against among other things, by joining Ukraine by the Russian Federa- Ukraine, about 4,150 Ukrainian the flash mob #StopRussianBru- tion was preceded by the inva- servicemen and 3,367 civilians tality on 26 February 2021, the sion of Georgia. It was followed were killed. More than 20,000 day of the seventh anniversary by Kremlin interference in the people were injured. In addition, of the beginning of occupation internal affairs of nearly every reports from the Special Moni- of Crimea, by posting your pho- country in the region of Eastern toring Mission OSCE and Joint to with this card on all social Europe and the South Caucasus. Forces Operation report that networks where your accounts The United States, Norway, and Russian militants, in addition to are registered and writing a few Germany have reported numer- territories under the control of words of support for Ukraine and ous cyberattacks by Russia, and the Ukrainian authorities, are de- the world in the fight against Rus- the EU has already imposed the liberately shelling the occupied sian aggression. first-ever sanctions for this crime. Donbas to increase casualties and Today, we are witnessing no accuse Ukraine of the attacks. Thank you for making a difference! less shameful behavior by Mos- By destabilising the situation, With respect and faith in our cow in Belarus, along with the both internally and externally, common victory, suppression of all possible acts Russian mercenaries are shed- Promote Ukraine of disobedience among its own ding the blood of peace defenders citizens, including the practice of and undermining European val- PREDATORYPREDATORY PEACEKEEPING.PEACEKEEPING. INSTEADINSTEAD OFOF SETTLINGSETTLING CONFLICTS,CONFLICTS, RUSSIARUSSIA FREEZESFREEZES THEMTHEM IN ITSITS OWNOWN INTERESTSINTERESTS RUSSIAN RUSSIAN AGRESSION

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cult of Russia reigns in each of these unrecognised (with rare The presence of Russian troops exceptions) formations, pro- never means the end of the conflict. claiming “forever together” slo- According to the 1999 UN Istanbul gans. Russia literally “feeds” Convention, Russia was supposed these depressed territories in the to withdraw its formations from middle of nowhere. And there Transnistria in 2001 but has not yet are no hints that at least some done so. Moldova’s newly elected thaw will come after the frost. president Maia Sandu called for the The fall of the Berlin Wall withdrawal of all Russian troops became the symbol of the col- from the self-proclaimed Transnis- lapse of socialism for the whole trian republic. She suggests replac- world, and the velvet revolu- ing Russia’s “blue helmets” with an tions in Eastern Europe gave rise OSCE civilian mission. As expected, to the myth of the “end of era” the Ministry of Foreign Affairs of STEPAN NAZARENKO and, consequently, of the geo- the Russian Federation met Sandu’s IS A UKRAINIAN political confrontation inherent initiative with fierce opposition, in the Cold War. Russia grandly JOURNALIST, saying it “undermines the peaceful withdrew a huge military con- settlement”. PUBLICIST, tingent from Germany, which The occupation under the guise it had inherited from the Soviet VOLUNTEER. of peacemaking does not give the Union, while its soldiers in Tajik- main thing – peace. As the outbreak istan and Moldova were becom- of military confrontation in Georgia he armed conflicts ing direct participants in local in 2008 and the recent escalation in in the post-Soviet armed conflicts. The emergence Karabakh have shown, no guaran- space may have dif- of 15 new states on the political tees can be expected from Moscow. ferent causes and map of the world took the inter- It will either stir up the conflict it- different durations national community by surprise. self (as in case of Georgia) or take but almost always By inertia, all former Soviet re- advantage of the resumption of Tthey share the same “depth of publics, with the exception of the hostilities (as in the case of Karab- freezing”. Baltic states, found themselves akh). Putin does not conceal his re- In Transnistria, fighting ceased in a zone of Russian influence. vanchist sentiments. He aims if not in 1992. In Abkhazia, South Osse- Therefore, Moscow undertook to to restore the Soviet Union, then at tia or Nagorno-Karabakh, volca- settle all the wars that arose in least to return Moscow to the lev- no-like conflicts “fell asleep” in the this area, though in a very spe- el of its influence of 30 years ago. early 1990s but periodically “awak- cific way. First, Russian paramil- He needs frozen conflict zones as en,” erupting with new waves of itaries (such as the Cossacks in instruments of putting pressure on escalation. A relative “truce” has Transnistria and Abkhazia) and countries leaving the Kremlin’s or- been prevailing in the occupied regular units participated in the bit. Transnistria for Moldova, Abk- Donbas for less than six months. conflict and later took over the hazia and South Ossetia for Geor- All these territories have common peacekeeping mission. Second, gia, occupied Donbas and Crimea markers by which one can unmis- the alienated territories came un- for Ukraine are safeguards against takably recognise a self-proclaimed der the hybrid occupation of the full integration into the EU and republic under the protectorate of Russian Federation: local govern- NATO. Moscow’s inability to cre- Russia. The late USSR can be seen ments were tied to the Kremlin ate similar enclaves in the Baltic here at the level of symbols, place with an “umbilical cord” and the States greatly contributed to the names, aesthetics of solemn events main display of social mobility successful European integration and rhetoric of local media. From here was the issuance of a Rus- of the three states. an economic perspective, people sian passport – a kind of pass to live here in early 1990s style: the the outside world that also gives railway stations in Abkhazia cov- an opportunity to legally leave ered with trees are the clearest il- this “frozen ghetto”. lustration of these processes. The Russia has had its military base in Armenia since the 1990s but has expanded significantly its presence in the region during the re- The occupation cent outbreak of confrontation in Karabakh: 2,000 Russian fighters of peacekeepers is also the preser- under the guise of have entered Nagorno-Karabakh vation of the status quo “post-Sovi- for the next five years. Accord- et space as a zone of geopolitical peacemaking does ing to the investigation of the In- interests.” Is there an alternative? not give the main formNapalm Ukrainian volunteer It’s a question to be put to Kyiv and network, the Armenia-Azerbaijan its western partners. It is clear that thing – peace. conflict zone was invaded by the the sanctions imposed on Russia service persons of the 15th bri- are unlikely to have a diplomatic gade of the Russian Armed Forc- or security effect. They can weaken es, which took part in the war in the Russian Federation econom- 2020, ICC Prosecutor Fatou Ben- Georgia in 2008, as well as in the ically but certainly will not force souda met with Deputy Prosecu- occupation of Crimea and fighting it to give up claims on Donbas. tor General of Ukraine Giunduz in Donbas. In addition to expand- Moreover, the implementation of Mamedov in The Hague. During ing its military influence, Moscow the Nord Stream 2 project clearly the meeting, it was reported that is gaining political weight: Arme- shows that Europe is not ready to the Office of the Prosecutor of the nia’s pro-Western Prime Minister stop using Russian gas (which is International Criminal Court had Nikol Pashinyan is likely to step the main source of Russia’s foreign decided to complete a prelimi- down soon replaced by a most exchange earnings). Therefore, if nary investigation into the events loyal possible politician (Russia we talk about the peacekeeping in Ukraine related to the interna- still has helped contain the Azer- contingent, it should be deployed tional armed conflict in Donbas baijani offensive). As a result, the on the eastern border of Ukraine, and Crimea. “In the future, the Kremlin will have another “safe- not on the current line of contact, Judicial Division of the ICC should guard” to keep Yerevan from rap- and it is clear that these should be approve initiation of a full-fledged prochement with the West. international formations without investigation into the commission The same fate may befall Don- the participation of the aggressor of war crimes and crimes against bas. The best-case scenario for country’s troops. humanity in the context of armed Putin is to reintegrate the occu- The information sometimes conflict. These include killings, pied territories on the basis of appears in the diplomatic circles enforced disappearances, torture, a special status with the pros- that Russia is allegedly ready to political and religious persecu- pect of further federalisation of make some concessions on the tion of Ukrainians, forced depor- Ukraine. In such a way, Moscow Donbas issue, but only if the issue tation of the Crimean population will receive not only a “safeguard” of Crimea is completely removed to mainland Ukraine and the col- against Euro-Atlantic integration from the international policy onisation of the peninsula. These but also a chance to return the agenda. Such a compromise could serious violations of international country to its orbit, dismember be a modern version of the Mu- humanitarian and criminal law it and annex eight southeastern nich Agreement. First, there is the have been analysed by the ICC regions (the same ones where the UN resolution of 27 March 2014 Prosecutor’s Office since 2015”, the Russian Spring, pro-Russian unrest that states that the United Nations Office of the Prosecutor General of in Ukraine, was defeated in 2014). “calls upon all states, internation- Ukraine informed. At present, it does not seem that al organisations and specialised The examples of Moldova, official Kyiv would agree to such a agencies not to recognise any al- Georgia, Armenia, Azerbaijan and plan. Another thing is the freezing teration of the status of Crimea Ukraine are all sufficient to under- under the Transnistrian scenario. on the basis of this referendum stand that each of these countries It is not a compromise or a settle- and to refrain from any action or has fallen victim to Russia’s ag- ment attempt. It is still a hybrid dealing that might be interpreted gressive “peacekeeping” policies occupation. The legitimisation of as recognising any such altered aimed at maintaining its influence Russian armed groups in the form status.” Second, the Internation- over the former Soviet republics. al Criminal Court should assess Russia’s actions. On 11 December

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LEONID SHVETS IS A FAMOUS POLITICAL COMMENTATOR AND PUBLICIST IN UKRAINE, HEADLINER OF THE MOST POPULAR ECONOMIC AND POLITICAL EDITIONS IN UKRAINE. REGULARLY HE TAKES PART IN TV AND RADIO PROGRAMMES, TALK SHOWS AS A POLITICAL EXPERT. RUSSIA. SANCTIONS

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n 7 Decem- ber, the Council of the European Un- ion adopted a on Russian opposition leader global human Alexei Navalny accelerated the rights sanctions regime. The es- process in August. There is al- O most a symbolic coincidence in tablished legal framework provides for the EU travel ban and the adoption of the EU’s global the freezing of funds applying human rights sanctions regime to individuals and entities list- and the publication of a major ed. Ukraine has to seize the new journalistic investigation by opportunities that arise in this Bellingcat, CNN and Der Spiegel regard to defend the national into the activities of the FSB poi- interests and protect its own cit- son squad, who had been tailing izens who have fallen victims to Navalny and his family, appar- Russian aggression and perse- ently with the consent and on cution in the territories that are the order of Russia’s political temporarily occupied by Russia. leadership. The new mechanism is dif- Back in September, EU’s for- ferent from the previous legal eign affairs chief Josep Borrell practice as it allows sanctions proposed at the European Par- to target specific individuals, re- liament session that a mech- gardless of whether a sanction anism for human rights sanc- regime has been imposed on the tions should be launched and state of which they are nationals. named after Alexei Navalny, in In this sense, it is compared to the same way that the Ameri- the Magnitsky Act, a law passed cans called the human rights in the United States in 2012 to im- sanctions the Magnitsky Act af- pose personal sanctions on viola- ter Russian lawyer and victim of tors of human rights and the rule the Putin’s regime. However, it of law. Initially, it was applied to was rightly acknowledged not to those involved in the death of limit the scope of the sanctions lawyer Sergei Magnitsky, who ex- regime, which is intended to be posed multibillion-dollar thefts global and universal. Accord- of budget funds, in a Moscow ing to Dutch Foreign Minister prison. Steph Blok, the European Union A similar amendment to the is now moving from condemna- law on sanctions and the fight tions and verbal reactions to hu- against money laundering was man rights violations to specific adopted by the United Kingdom punishments. European human in 2018. Laws similar to the Mag- rights policy “got its teeth to nitsky Act were already adopted bite,” Lithuania’s Foreign Min- in the Baltic states and Canada. ister Linas Linkevičius told the Eight Nordic Council members Nu.nl online media outlet and – Denmark, Finland, Iceland, expressed hope that the new Sweden, Norway, Faeroe Islands, regime would also be expand- Greenland and Åland Islands – ed to cover corruption cases. have declared their readiness to amend domestic legislation. This issue had long been discussed at the EU level, but the circumstances caused by the coronavirus pandemic delayed the decision. The assassination attempt The opinion is shared by the leadership of the European Peo- At the same time, the goal of ple’s Party, which has the largest Ukrainian diplomacy and hu- representation in the European man rights organisations should Parliament, so the prospect of fi- be to draw the attention of Eu- nalising and improving the new ropean partners to the human norm is quite real. rights situation in the grey zone Critics of the EU’s decision, of the occupied territories, both primarily and obviously from in Crimea and in Donbas. Rele- Russia, point out that human vant experience has already been rights are violated under the gained here. Thus, in Novem- slogan of protection of hu- ber, the Third Committee of the man rights, as perpetrators are UN General Assembly adopted charged without judicial proce- a Ukraine-sponsored resolution dure and punished with an EU condemning human rights vio- travel ban and prohibition on The established lations in Crimea, including “dis- the use of the Union’s financial criminatory measures and meth- system. However, this is not true. legal framework ods; arbitrary detentions and All those targeted will be able to arrests; torture and other cruel, challenge sanctions imposed on provides for the inhuman or degrading treat- them in the European Court of EU travel ban and ment; sexual and gender-based Justice in Luxembourg, if there violence, in particular to com- is a will. the freezing of pel detainees to give evidence The only somewhat weak point against themselves or to ‘cooper- of the new framework is the con- funds applying to ate’ with law enforcement agen- sensus mechanism for decision cies”. There are many examples making on sanctions. All 27 EU individuals and of such violations, for example, member states have to support in the occupied Donbas where the proposals, although initially entities listed. the legislation of any state is not a qualified majority was meant. enforced at all and total arbitrar- This complicates and slows iness and violence prevail. The down the process, but the very scale and level of horrors are existence of such a mechanism evidenced, in particular, by the outweighs its shortcomings. memoirs of former hostage of Sanctions lists will be drawn the separatists and their Russian up at the request of an EU mem- masters Stanislav Aseev entitled ber state or the EU’s chief diplo- “Path of light. Story of one con- mat, and the first candidates will centration camp” about his cap- appear already next year. First tivity in the Donetsk prison “Iso- of all, it is easy to predict that lation”. these will be people involved in Ukraine is simply obliged to Navalny’s poisoning and Belaru- make every effort to launch a sian security officers known for mechanism of the new EU sanc- suppressing the protests. Allega- tions regime in order to move tions against human rights viola- from condemnations to specific tors in Turkey and Venezuela are punishments, as the Dutch for- also expected. eign minister said. “Teeth of the European Union” must become our teeth.

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Ukrainian diplomats are fully aware of the opportunities that open up and the challenges that follow. The Ministry of Foreign Affairs of Ukraine noted in its commentary on the launch of the new human rights sanctions regime that “the EU has once again proved that it is a recognised world leader in the fight against human rights violations. The goal of We hope that the new EU sanctions regime will be an effective Ukrainian and systematic tool for punish- ing those guilty of violating fun- diplomacy and damental human rights in the temporarily occupied territories human rights of Ukraine and will encourage the occupation administration organisations to stop these crimes… We expect that the implementation of the should be to draw human rights sanctions regime the attention of will be part of our regular human rights dialogue with the EU European partners as well as consultations on the legal consequences of the tem- to the human porary occupation of the Auton- omous Republic of Crimea and rights situation the city of Sevastopol.” The Ukrainian citizens, both in the grey zone from the “mainland” and the occupied territories, also have of the occupied great hopes for these prospects. territories, both in Crimea and in Donbas. SERGIYSERGIY TSIVKACH: TSIVKACH: “INVESTORS“INVESTORS HAVE HAVE NOT LOSTNOT INTEREST LOST INTEREST IN IN UKRAINEUKRAINE DURING DURING THE THE PANDEMIC”PANDEMIC”

kraine got with ment’s investment promotion of- the coronavi- fice UkraineInvest. In an interview rus crisis new with Natalia Richardson for Brus- chances: foreign sels Ukraїna Review, he said that companies, par- now Ukraine has another possibility ticularly Euro- to prove itself as an attractive coun- Upean ones, are disappointed in try for investment. According to some manufacturers and look him, there are many changes for the for new partners in proximity, better, but many problems remain says Sergiy Tsivkach, Executive to be solved. Director of the Ukrainian Govern- BUSINESS. BUSINESS. INTERVIEW

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Experts talk about a cold investment climate in Ukraine. Do you think that it became a Mr. Tsivkach, how has COVID-19 A Moldovan company bit warmer recently? changed these enquiries? Maybe bought one plant of Ukrspyrt new areas of cooperation have for 120 mln hryvnia. Thus, We have a lot of positive emerged? Or have the old ones we see that a foreign investor changes in regulatory reform; disappeared? comes to Ukraine. State Prop- Ukraine has improved its po- erty Fund of Ukraine is pre- sition in the Ease of Doing Yes we saw some changes. paring many more objects for Business index. Denys Shmy- For example, recently there are privatization, also in this field. hal’s government continues to many requests for protective This is an effective way to at- working in this direction. products – I mean, for the relo- tract investment. We work very The investment climate im- cation of companies in this field. fruitfully with the fund and al- proved in 2020 through many Statistics shows that one in five ways promote companies that changes and reforms. These deliveries of gowns, masks and are ready for privatization. include deregulation and sim- other protective products to de- plification of business condi- veloped countries in Europe dur- tions, reform of the agricul- ing the pandemic was not made tural land turnover system, on time. These goods were pro- launch of a competitive gas duced in certain Asian and other market model (reorganisation countries. They did not expect of Naftogaz, national oil and demand to rise by as much and gas company of Ukraine), re- thus were unable to supply, but form of the inland water trans- they processed all the orders that port system, completion of the came to them. Now some coun- main decentralisation phase, tries are thinking about how to launch of urban development diversify production by locating reform, liberalisation of the alco-

BUSINESS. BUSINESS. INTERVIEW it in different regions or parts of hol market and export, creation the world. of the electronic portal “Diia” We have a lot of They are not planning to with- (Action) and large-scale digital- draw from those countries that isation of administrative servic- positive changes have not delivered, but they want es, and creation of the National to have alternative contracts with Intellectual Property Authority. in regulatory other states, particularly in Eu- At the same time, it is neces- rope. Just to be more secure in reform; Ukraine sary to understand the challenges case of nextwaves of pandemic or faced not only by Ukraine but economic crisis worsening. has improved its also by the whole world in 2020. We also see a growing interest So the growth may not have in Ukraine in concessions, pub- position in the been as rapid as Ukraine needs. lic-private partnerships. The But investors have not lost interest Ease of Doing new concessions law of 2019 in Ukraine due to the crisis. On contributes to this. Last year the the contrary, we see a lot of en- Business index. largest concession in the histo- quiries from companies that, as ry of Ukraine’s independence a result of a global, regional or Denys Shmyhal’s took place - the signing of the national crisis during the pan- contract for the transfer of Port government demic, are starting to look at Olvia in Mykolaiv to the Qatari Ukraine as a promising country. group QTerminals for manage- continues to ment. The amount of the deal is $127m of investments. Also 80m working in this hryvnias will be invested in in- direction. frastructure development. We see great investor interest in Ukraini- an privatisation objects. In particular, the privatisation of the alcohol industry has been active. However, we need to be proac- We should develop innovations, tive. We cannot be just satisfied support research centres and with the fact that investors are all projects that will ensure our paying to us more attention than of necessary infrastructure growth in the future. After all, earlier due to the crisis events in at the expense of state and if we draw classical formulas to the world. Let us be frank: they local budgets, assistance catch up with our neighbours, are looking not only at us. They in connecting to heat, gas, it might take us 30-40 years. are also looking at other coun- water and electricity supply We need to think in advance. tries and beginning to change networks, engineering utili- It is clear that companies with the paradigm of thinking about ties. All this will be set out in innovations and digitalization traditional investment partners. a contract to be signed by the approaches are better off. The That’s why they are looking at investor and the Ukrainian Ministry of Digital Transforma- various options. We need to be government. tion has developed a lot of such productive here to ensure the de- The Verkhovna Rada initiatives. You can now register velopment of investment policies, passed this law on 17 De- a company very quickly and ob- legislation, investment incen- cember 2020, and it is now tain a license. Much less papers tives. awaiting the President’s sig- are needed - thanks to the “Diia” We should ensure more com- nature. To implement the (Action) public services app. The fortable conditions for invest- law, the Ukrainian Cabinet of government is also preparing a ments of companies in Ukraine, Ministers will need to adopt reform called «Diia City» (Action both Ukrainian and foreign ones. a number of regulations: on City). It envisages the creation of After all, we do not need to make the requirements for a feasi- a virtual free economic zone for advantages for foreign investors, bility study for an investment IT companies. but we need to ensure equal con- project and a methodology In other words, these compa- ditions for doing business for all for calculating the amount of nies will be able to do business entrepreneurs in Ukraine. It will state support for the imple- in Ukraine with lower taxes, stimulate both domestic and for- mentation of investment pro- under simplified procedures. eign investment markets. Inter- jects. State support for invest- It will also attract attention to national organisations estimate ment projects with considerable our country. We have to present that about 170 countries in the investments will help attract Ukraine as an attractive country world will have a drop in their strategic investors, enhance for the relocation of production gross domestic product. So you Ukraine’s investment appeal, companies in different fields, have to understand that all these and boost the competitiveness including agro-processing, light countries will change, put for- of the Ukrainian economy. industry, technology enterprises, ward new proposals and think etc. At the same time, we need to about how to attract investors Do you think that Ukraine has think about companies which more effectively. transparent conditions of doing create high added value. The key Among such initiatives in business with the state? priority, of course, is agro-pro- Ukraine, one can mention, first- cessing. Our country has suffi- ly, the recent Presidential Law on The new law stipulates that cient agricultural raw materi- incentives for significant invest- these conditions for coopera- als. Nevertheless, the amount of ments. We are talking here about tion between the state and a finished goods produced in our investments of over 20 mln eu- private investor will be spelled country is insufficient. Every ros to be realised within 5 years out in a separate agreement to year Ukraine imports finished in Ukraine, which will create at be signed with the government agricultural products worth sev- least 80 jobs. In this case, com- of Ukraine. This is a big advan- eral billion USD. By analyzing panies can receive the state aid tage for investors and quite a specific indicators, we have seen - up to 30 per cent of the invest- significant incentive for them to that Ukraine can ensure – in the ment amount. This aid includes think of Ukraine as a long-term near future - the establishment exemption from certain taxes reliable partner. of agro-processing enterprises and import duties on new equip- We should take care of the on its territory for a total amount ment required for the implemen- development of regions, taking of about 700-800 million USD. tation of the investment project, into account their specificities Also in other sectors of the provision of land plots in state or and competitive advantages. economy, import substitution municipal ownership for use on can attract investors when they preferential terms, construction think about a country. When set-

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ting up their enterprises or investing in some financial structures, investors always look: where is the sales market? who will buy this product? the local Local authorities market or the neighbours? are from Ukraine, if not more. we talking about global markets? Negative news spreads much need to create We can influence global markets faster than a positive one. indirectly, only through certain And we need to change this more comfortable trends. But there is a local mar- paradigm. ket, and we need to increase de- conditions for mand there. Has the bureaucracy been investors, this If we take Ukrainian raw ma- reduced? When it comes terials, manufacture them in a to the paperwork for will help to neighbouring country and then investment, for starting import them as baby food or projects with investments? attract more semi-finished products, the add- Has the procedure for foreign ed value by 80-90% remains in investors become easier investments in the neighbouring country. But recently? jobs are not being created here, their regions. They and taxes are not being paid, at The system of starting a the same time Ukraine has prob- business itself is more simpli- need to develop lems with fixing its roads, hospi- fied, and it works. Opening a tals, etc. We are thinking about business is not a problem in and understand this too, and we are developing Ukraine. Problems sometimes that an investor programs of industrial relocation arise with getting a permit for and industrial outsourcing. The some or other activities. It’s a comes to them concept of such a programme question of building a facility has already been developed and or getting some specific - for not to ask for we hope to present it by mid-Feb- example, mining - license. ruary. Afterwards, we will organise There might be a grey area or something, but to a large-scale campaign to find misunderstanding between investors. We need to talk about the parties. We have seen such give - in the form concrete projects that can be im- problems, in particular with re- plemented today, showing how gions. I am not just referring to of investments, and where a domestic or foreign corruption. Yes, someone some- jobs, and taxes to investor can earn money while where at the regional level might creating jobs and paying taxes in have a desire to influence the be paid in their Ukraine. And most importantly, process with some advantages developing Ukraine’s interna- for himself. By the way, lately we region. tional image. don’t hear about this very often. Every investor who comes to Local authorities need to create Ukraine and has good profits more comfortable conditions for will bring at least 3-5 more in- investors, this will help to attract vestors. They share information more investments in their regions. with each other. But an investor who comes out of Ukraine with a negative message will push probably 10-20 investors away They need to develop and understand that an investor comes to them not to ask for something, but to give - in the form of investments, jobs, and taxes to be paid in their region. We have to present UkraineInvest deals precisely You said that regional develop- with these issues. Foreign inves- Ukraine as an ment is extremely important for tors come to us, and we have a the Ukrainian economy. What separate division that works with attractive country about investments in Ukraine’s legal issues and regulatory poli- coal-mining regions? How is cy. If necessary, we help them for the relocation the reformatting of these towns solve problems by contacting going? Are foreign investors the relevant state authorities. We of production showing their interest? There is also cooperate with law enforce- companies in information that Germany wants ment agencies if investors have to invest in such projects. problems in this area. Over the different fields, past 3 months, we have managed Yes, this process is called “Just to attract, unblock 275 mln USD including agro- Transition of Coal Regions”. We worth of investments in Ukraine. are working with the Ministry of This is our daily work. Also, by processing, Energy on this issue. the end of this year Ukraine Ukraine and Germany have plans to introduce the digitali- light industry, launched a new energy partner- sation of the country, which will ship in 5 areas (energy efficien- significantly reduce bureaucratic technology cy, decarbonisation, renewable and corruption risks. enterprises, etc. energy, hydrogen energy, transformation of coal regions). Recently there has been a At the same time, There are already agreements problem with foreign investors on 4 pilot projects for the trans- in renewable energy, to whom we need to think formation of coal regions, where Ukraine owes a debt. How is coal mines will be physically Kyiv going to resolve this issue? about companies closed. The first mines to be closed will be Velykomostivska This is a very significant issue. which create high (Lviv Oblast) and 5/6 (Myrnohrad There has been some arrears in Donetsk Oblast), and their ter- since the tariff changes, but the added value. The ritories will be transformed into government is actively working tourism and technology clus- on this issue. We have also been key priority, of ters. There is also an initiative engaging in the process and course, is agro- to create a multi-partner fund looking at how financial instru- to coordinate and mobilise in- ments can be used to find a solu- processing. ternational financial and techni- tion. Now several options are be- cal assistance for pilot projects ing considered. We hope that the to transform coal regions and problem will be solved soon. mines’ closure. We are getting involved in creating an ideology, an environment for the development of entrepreneurship, for attracting investment in towns where mines will be shut.

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The manufacturing relocation programme will include a unit on the just transition of coal regions. This process is not easy. You have to understand that min- Which ers are a labour caste that will countries are only work in certain industries. the most You cannot drastically change active in qualifications from working in investing a mine to, for example, picking in vegetables or fruit, or the restau- Ukraine? rant business. It is impossible. These people have worked in If we mines, which deserves respect. talk about Our office, together with the gov- real inves- ernment, should provide them tors who with nice and decent job offers. do invest in Ukraine most of Are there any new investments all, it is the Neth- in Ukraine’s airports, including erlands, the UK, regional ones? Switzerland, Germany, Austria and France. Yes, there are. For example, If you look at the statistics, a tender has already been an- then Cyprus is the leader. But nounced for the construction of we have to understand that the a runway at Zakarpattia airport, ultimate beneficiaries of Cypri- and funds have been allocated ot companies are often residents for a feasibility study. UkraineIn- of other countries, including vest was approached by investors Ukraine. So, it would be an exag- who were interested in partici- geration to say that Cypriots are pating in this project, namely in the biggest investors in Ukraine. building the airport’s infrastruc- Some companies just use this ju- ture. Now the Ministry of Infra- risdiction to optimise their taxa- structure and the Ministry of tion. In general, Germany leads Economy are working on a list of the way. We have a lot of German facilities that should be the first enterprises. The German part- to enter the public-private partnership is strategically impor- nership system. tant for us, their technology and Thus, work is undoubted- pragmatic approach to building ly underway. We recently had production and supply chains is a a meeting with the Agency for model not only for us but proba- Public-Private Partnerships in bly for the whole world. the framework of the Ministry of Economy. We talked about the Natalia Richardson need to increase the number of public-private partnership projects in Ukraine and their provision. Our office can facilitate this. We hope that this agency will have more capacity for feasibility studies and attract investors to Ukraine for cooperation. A “BOUTIQUE” LAW FIRM IN ATHE “BOUTIQUE” HEART OF EUROPELAW FIRM IN THE HEART OF EUROPE

ith a head office ide- ally located on the pres- tigiousW Avenue Louise in Brus- sels, “boutique” law firm Van- belle provides highly specialised advice, assistance and solutions in the fields of corporate law, international tax and real estate. BUSINESS. BUSINESS. PROMO

#BUR5 • @PromoteUkraine 46 • Brussels Ukraïna Review • www.promoteukraine.org • • www.promoteukraine.org • Promote Ukraine • Промоут Юкрейн • #BUR5 • @PromoteUkraine 47 “Small is beautiful,” begins introductions within the lo- site, blogs, email and videocon- Jo Vanbelle, managing partner cal community for a smooth, ferencing. Essential informa- of Vanbelle. The international day-to-day life in a new coun- tion (such as the client service law expert is joined at his Brus- try. All these services are agreement, the fee structure and sels bureau by a team of sev- provided just by ringing the the privacy and corporate re- eral highly qualified, trained Vanbelle doorbell… sponsibility standards) is imme- and experienced lawyers, all of “You can compare it to diately available on the website, whom speak multiple languag- buying a watch. If you go to guaranteeing full transparency es. “It’s a simple and efficient a department store, you can on the firm’s DNA towards new structure with no complicated come away with a good mod- visitors and clients. chains of command or com- el, but by going to a nice bou- Whether looking after young munication,” reflects the law- tique you will find something start-ups, high-net-worth indi- yer. “Everyone is equal and the extra special,” points out Jo. viduals or international enter- whole team works together.” The firm’s personalised ap- prises, Vanbelle always aims for Thanks to the boutique proach is also reflected in its solutions to match the needs and size of the firm, along with welcoming office, which is far the style of each individual case. its strong partnerships with cry from the often rather sterile “Like the concierge service of a specialists across numerous environment that is typically luxury hotel, we’ll take care of different areas and countries found in law offices. “Ours is everything our client needs,” en- worldwide, Vanbelle offers a a warm, welcoming place that sures Jo. one-stop, personalised, legal feels more like a family home. In addition to its Brussels of- concierge service to its profes- That’s why our clients often fice, Vanbelle has joint offices sional and private clients. An end up staying here longer and partnerships in a large va- entrepreneur who wants to set than they planned to,” smiles riety of cities and destinations, up a new business and needs a the lawyer. making cross-border operations new company, but also an of- The firm keeps up with all easy to coordinate and to com- fice to buy or to rent; tax advice the latest trends and also fully plete with well-established lo- about the most interesting place assists start-ups and young en- cal partners, such as Asters in and way to establish the new ac- trepreneurs in new or growing Ukraine and Navas & Cusi in tivity; opening a bank account; markets, such as crypto curren- Spain. obtaining an insurance policy cies and e-commerce. Vanbelle The law firm is recommended for his staff, etc. A family living understands the importance of by several international groups abroad wishes to move to anoth- efficient and easy communica- and institutions and rewarded er country but requires some ad- tion, even more so during the regularly for its international vice and help, not only for legal latest sanitary crisis, and, there- law department. or tax matters, but also in order fore, invests constantly in im- to find a house and a school for proving its web and social media Avenue Louise 343, B-1050 the kids, to register at city hall tools, and privileges electronic Brussels (Belgium) or at a social or cultural expat communication through its web- T : +32 (0)2 431.64.00 club, or to simply receive good Web: www.vanbellelaw.com

BRUSSELS – BARCELONA – KYIV – LONDON – MADRID – MIAMI – MEXICO CITY – SHANGHAI – VALENCIA – WASHINGTON D.C. BUSINESS.BUSINESS. PROMO PROMO STARTINGSTARTING A BUSINESS A BUSINESS IN UKRAINE:IN IS UKRAINE: IT WORTH IS A IT WORTH CANDLE?A CANDLE? he time for sum- easier and cheaper, which would marising results of also make it easier to start doing the past year has business. Unfortunately, this did arrived. 2020 was not happen. tough but let’s not Even though it is relatively dwell on negative easy, cheap and fast to open a Tthings. It is better to make the business in Ukraine, there are right conclusions, plans for the several legal impediments that next year and decide on how to make the process unnecessari- realise them. This is exactly what ly complicated and sometimes we did when analysing tendencies impossible. As a result, the state of foreigners opening business in budget loses much needed in- Ukraine. vestments. Ukraine had struggled for investments even before COVID time, which made the situation The first director worse. According to the State Statistics Service of Ukraine, the According to Ukrainian law, the capital investments into Ukraine company has to have a hired (em- dropped by 34.9% in the first ployed) director from the first day half of 2020. of its registration. Another legal re- The number of temporary res- quirement – a foreigner’s employer SERGIY ALEXANDROV idence permits in the first half first has to obtain a work permit to IS A FOUNDER AND CEO of 2020 dropped in half – 44,176 hire a foreigner. There are a few ex- in 2019 and 21,548 in 2020. ceptions to this rule but the director OF ASKIVAN. Even though it is a worldwide position is not one of them. Thus, tendency now due to the epi- when a foreigner wants to open a demic, it is Ukraine’s duty to rec- company in Ukraine, he must find tify this situation. some Ukrainian citizen to fill the A year ago, one of the Ukrain- director’s office until theis foreign- ian Ministers asked the question er obtains a work permit. Imagine on his Facebook page about what how difficult it is to find such a should be done to increase the person in a foreign state, it is risky number of foreigners coming to to entrust the business to this per- Ukraine and opening businesses son and it is an additional expense here. This was a good sign that to the foreign investor as a tempo- the Government was working rary director probably won’t agree on something aimed at bring- to take the office for free. It is not a ing more foreign investments to problem for big companies coming the country. In 2020, they were to Ukraine, but for a small and me- going to eliminate some unnec- dium business it is a problem. Al- essary bureaucratic procedures lowing a foreign founder to become that would make the visa process the first company’s director of his own company will make a great difference, and by all means it may hurt any Ukrainian interest. #BUR5 • @PromoteUkraine 48 • Brussels Ukraïna Review • www.promoteukraine.org • • www.promoteukraine.org • Promote Ukraine • Промоут Юкрейн • #BUR5 • @PromoteUkraine 49

An overseas visa

Usually, when a foreigner opens a company and becomes its director, then he/she needs to stay in Ukraine to run the business and, for this reason, he/she needs to obtain residence. To obtain this residence a foreigner needs to get a special visa first that is issued only by an overseas consulate. It is not possible to obtain this visa in Ukraine. It is not relevant when a company is registered by a lawyer while the foreigner is abroad. But when a foreigner comes to Ukraine to participate in his company registration, then he/she will have to leave Ukraine only to obtain that visa and come back. There have already been two attempts to abolish this bureaucratic ru- diment. The first attempt was a Salary and social year ago when amendments to taxes the visa process were passed, but later they were eliminated When a company is regis- because the new rules could not tered it is obliged by law to pay be implemented in life. Then, a a wage to its director from day new bill was submitted to Ver- one. This requirement applies hovna Rada but the law has not even when the company’s found- avoidance and some labor law been voted on by the MPs. The er and director is the same per- violations indeed. But no doubt fact that the Government under- son and when the company does this legislation requirement stands that the current situation not have any income yet. This slows down foreign small inves- with this visa should be fixed is a huge burden for a newly tors in their desire to come and gives hope, yet it has taken too established business. The vast start a business in Ukraine. much time already to solve the majority of our clients don’t un- problem, but foreign investors derstand why they are obliged to still have to travel to another pay a wage for themselves that is country for a visa. It is not only in fact the same as putting mon- expensive, it takes time (a visa is ey from your one pocket into issued within 30 days), but now your other pocket. Of course, it is also not easy to travel when taxes are paid out of this wage, many countries have closed and this part is well understood their borders. by foreign businessmen. We are constantly asked if they can pay social taxes out of their salary but not pay the wage itself. It also should be noted here that the same rule applies even to Ukrainians and not only to foreigners. Abolishing this requirement may result in tax Prolongation of work and residence permits

A foreigner can get a work permit and residence permit for At the same time providing up to three years when he/she is residence to foreigners-FOPs, both the company’s owner and as it is provided to foreign director. After that, both permits workers, will be one extra can be extended for the same impetus for foreigners to re- Ukraine had period of time. These processes locate to Ukraine and spend are not too difficult but require their money here. FOPs are struggled for gathering and submitting basi- entrepreneurs; these are peo- cally the same documents. This ple who create jobs and pro- investments even creates an unnecessary work- duce goods. They provide the before COVID load both on the company and foundation for the national on the immigration and employ- economy that Ukraine needs time, which made ment services. It would make so much nowadays. everyone happy if the extension Even though the number the situation is done simply by notice, provid- of granted residence permits ed that all state duties and fees dropped down twice in 2020, worse. According for the extension of the permits the request for legal servic- will stay the same. This way the es in opening and supporting to the State state budget will keep getting business in Ukraine is still money from the processes while present. Providing legal ad- Statistics Service businessmen will not waste time vice to foreign small and me- on gathering papers. dium businessmen on a daily of Ukraine, basis, we clearly see that the above-mentioned legislation the capital Private entrepreneur improvements would increase the number of foreign invest- investments into The legal status of private en- ments pouring into the Ukrain- trepreneurs (aka FOPs) is very ian economy. Ukraine dropped popular for doing business in Ukraine, and foreigners can do by 34.9% in the business as FOPs as well, but only when they have residence first half of 2020. in Ukraine. But why shall we pre- clude foreigners from running a business in Ukraine as FOPs by which they will bring investment injections into the Ukrain- ian economy and will pay taxes? Ukraine must allow foreigners to register as FOPs without residence. Will Ukraine suffer if a foreigner is registered as an FOP, does business in Ukraine, pays taxes in Ukraine but lives in another country? The answer is evident.

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ANNA DEREVYANKO IS AN EXECUTIVE DIRECTOR OF THE EUROPEAN BUSINESS ASSOCIATION SINCE 2003. UNDER HER LEADERSHIP, THE ASSOCIATION HAS GROWN ALMOST FOUR TIMES AND CURRENTLY INCLUDES 1,001 MEMBER COMPANIES. IT ALSO HAS EXPANDED TO 4 REGIONAL BRANCHES (DNIPRO, LVIV, ODESA, AND KHARKIV). T O D AY, THE ASSOCIATION IS ACTIVELY INVOLVED IN THE IMPLEMENTATION OF BEST EUROPEAN BUSINESS PRACTICES TO IMPROVE THE INVESTMENT ATTRACTIVENESS OF UKRAINE.

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he year 2020 has brought its fair share pace of reforms. Moreover, we of challenges see that dissatisfaction with the to all entrepre- current state of the court sys- neurs. Although tem in Ukraine has grown this Tbusinesses in Ukraine are used year and business leaders con- to working in a fast-changing sider it even a bigger problem landscape, they still faced an than corruption for the first incredible pressure caused by time in five years. the Covid-19 pandemic. According to the recent re- Since the outbreak, the sen- port, presented by the EBA, timent of CEOs has gradually Dragon Capital, and CES, the leveled off after the stressful foreign investors consider debt start of the year. According to default the top threat to the in- the recent EBA survey, only 4% vestment climate, followed by of respondents consider the a shift away from democratic business climate favourable in values and change of the for- Ukraine. Prior to the pandemic, eign policy vector from west this number amounted to 17%. to east. Strategic investors also The majority, namely 62%, con- view loose economic policies as sider the current business envi- the main negative factor, while ronment unfavorable, and an- portfolio investors would neg- other 34% – neutral. atively react to the failure to Before the crisis, CEOs were reach the agreement with the predicting better performance IMF on the next loan tranche. for their businesses and in- An effective fight against cor- vestment climate. At the end of ruption is viewed by business 2019, 41% of directors expected leaders as the top priority for that the investment climate will improving the investment cli- slightly improve over the next mate, just like the relaunch of year. The most cited reasons for the judiciary and appointment optimism were gradual stabili- of credible reformers to top po- zation of the political situation, sitions. The above-mentioned the start of the reform of the steps will help rebuild trust and land market, stable national give more confidence to both currency, reform of the Tax and foreign and domestic investors Customs services, decrease in in Ukraine. inflation, increase in consumer buying power. However, 2020 has drastically changed all the positive expectations. It won’t come as a surprise that the effects of the pandemic and related restrictive measures have had a negative impact on the entrepreneurs’ sense of optimism. However, Covid-19 outbreak is hardly the only reason for business mod- erate opinions. The negative impact of the forced quarantine measures was amplified by the government rotations and slow Most companies will pursue a In today’s uncertain climate, restrained HR policy next year. CEOs are being very careful with Thus, 60% plan to keep the com- their predictions, still we see pany’s staff unchanged. Only the prevailing optimism in the 28% of companies plan to recruit directors’ prognoses for their staff. Another 12% of businesses businesses. The majority of EBA will have to resort to layoffs. member companies, particular- According to the Looking ahead, 60% of the ly 60%, expect positive growth companies will need up to one dynamics for their company in recent report, year to recover from the lock- 2021. Meanwhile, 26% of CEOs presented by down as our surveys report. Ob- expect to maintain business viously, over the next one or two performance at the level of 2020, the EBA, Dragon years, we will have to deal with and another 14% say that their the consequences of the lock- business situation will deteri- Capital, and down, therefore we have some orate. Also, one third of entre- catching up to do. Assuming preneurs plans to implement CES, the foreign that the epidemiological situa- large-scale investment projects tion is favourable and business- in Ukraine next year. investors consider es are able to enter the recovery As discovered by our survey phase, we hope that by the end ‘Business Forecast 2021’ about a debt default the of 2021 most large and medi- third of entrepreneurs expect an top threat to um companies will reach the increase in income up to 10% in pre-lockdown level of business UAH due in the next year. More the investment development. than half of the CEOs, namely The pandemic not only 54%, plan to increase the sal- climate, followed brought obstacles and challeng- aries of employees by 5-10%. es, but it also compelled com- Another 21% will increase sala- by a shift away panies to innovate and adapt ries by up to 5%, and 9% – up to nearly all processes to the new 10-20%. Only 15% of companies from democratic reality. It would be unfair to will not increase staff salaries claim that the lockdown had and no company plans to reduce values and change solely negative impacts on the it. This gives us a strong belief business. The unprecedented that caring about the wellbeing of the foreign circumstances forced compa- of employees remains one of the policy vector from nies to re-examine their costs core business priorities. and operations, interaction with west to east. customers, as well as proved digitalization to be a vital part of modern company’s transformation. Bottom line, there is still a huge amount of uncertainty regarding the recovery process of Ukrainian business. Never- theless, entrepreneurs remain optimistic about their business despite both the unpredictable dynamics of Covid-19 spread and turbulent political and economical situation. Well, after all, optimists win in the long-run.

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Being the largest and one of the most influential business communities in Ukraine, the European Business Association will continue to help our companies thrive. We are dedicated In today’s and proud to contribute to improving the investment climate uncertain in Ukraine to benefit the business industries, society, and the climate, CEOs country as a whole. are being very careful with their predictions, still we see the prevailing optimism in the directors’ prognoses for their businesses. MEPMEP JERZY JERZY BUZEK: BUZEK: “FURTHER“FURTHER REFORMS REFORMS ARE AREA PRECONDITION A PRECONDITION FOR UKRAINE’S FORSUCCESS UKRAINE’S IN THE EUROPEANSUCCESS GREEN IN DEAL” THE EUROPEAN GREEN DEAL”

The European Green Deal is transformative path, it will like a lift which could take us have the chance to modernise to a better future, with growth its economy and become more and prosperity and without competitive on the global scale. endangering the environment, “But getting on the lift is not says Ukraine’s great friend enough; one has to push the Jerzy Buzek, former Prime floor button, implement the Minister of Poland and reforms, and make the change President of the European happen”, Buzek reiterates Parliament, and a current in an exclusive interview Member of the European with Natalia Richardson for Parliament from the EPP Brussels Ukraїna Review. group. According to Mr Buzek, if Ukraine decides to hop into that lift and follow on the EU GREEN ENERGY. GREEN INTERVIEW #BUR5 • @PromoteUkraine 56 • Brussels Ukraïna Review • www.promoteukraine.org • • www.promoteukraine.org • Promote Ukraine • Промоут Юкрейн • #BUR5 • @PromoteUkraine 57

Do we have enough resources to combat these crises in In December 2019, European parallel – COVID-19, together Commission President Ursula with economic crisis and possible to reconcile economic von der Leyen proposed a new global warming? recovery and growth, technolog- ambitious growth strategy – the ical and economic competitive- European Green Deal – which Even the most heroic fight ness, as well as to futureproof aims to make the European against a huge global challenge jobs creation with environment Union climate-neutral by 2050. – COVID-19 – in no way relieves and climate protection. And then Then, at the beginning of 2020, us from our duty and responsi- others will follow – I am sure they the European Union and the bility to combat global warm- will. I am also sure that if we don’t whole world were hit by COVID ing. succeed, the consequences could 2019. Did the pandemic and the In this very context, the Eu- be dramatic: from citizens los- current economic crisis make the ropean Green Deal – the Union’s ing trust in the entire European EU change its approach to the new growth and development project to a complete climate ca- Green Deal? strategy and a tool to reach cli- tastrophe. A lot is at stake, so we mate neutrality by 2050 – is be- just must make it happen. No doubt, the ongoing COVID-19 coming even more vital. This is Speaking about the greening pandemic is one of the biggest why it has been placed in the effect of the Deal which goes and most serious threats we have heart of the EU Recovery Plan beyond the Union borders. How faced in recent decades. The Euro- “Next Generation EU”. The pro- will the Green Deal influence pean Union and the whole world posed measures of the green EU-Ukraine relations? stood in dismay when suddenly recovery – a massive renova- the virus not only attacked our res- tion wave of buildings and in- piratory systems, but also jeopard- frastructure, a more circular Let me start by a brief introduc- ised the jobs of tens of millions of economy, rolling out renewable tion of the history of EU-Ukraine people, our freedom of movement energy projects, cleaner trans- cooperation in energy and climate and assembly, and our habits and port and logistics and the Just fields. In 2011, Ukraine joined the lifestyle. We were deeply shocked, Transition Fund – will not only Energy Community and took on and this is fully understandable. repair the short-term damage obligations to follow the rules of Still, all this could be just a bit- from the crisis but also boost the EU internal energy market. ter foretaste of what might await the European economy, make it Signed in 2016, the Memorandum us soon if we do not stop glob- more future-proof, sustainable, of Understanding on a Strategic al warming: waves of fires and and competitive. Energy Partnership invigorated droughts, hundreds of thousands EU-Ukraine energy cooperation. of premature deaths annual- So, it is natural that the European Finally, the EU-Ukraine Associ- ly due to heat and air pollution. Green Deal focuses mainly on ation Agreement (AA) – one of Scientists have been alarming us the green recovery within EU the most ambitious cooperation about this for years. And recently borders. At the same time, we agreements in the Union’s history, we have witnessed many of these cannot neglect its wider goal: which entered into force in 2017 – threats which became reality. Just to promote the EU, which leads further reinforced Ukraine’s align- to give you a couple of examples: by example in the global fight ment with EU energy and climate bushfires in Australia, where 500 against climate change. Do you policy. The Preamble mentions million species were killed, and think that the world would the parties’ commitment to imple- half a million people dying from follow it? menting the Energy Community smog and air pollution every year Treaty and the special chapters in Europe. It is indeed a historical pro- dedicated to energy and climate. Vaccines for coronavirus have gram, our Apollo (Space Pro- And all this bilateral cooperation already been found; however, a gram, which put man on the in energy and climate fields is car- vaccine for climate change nei- moon – ed.): both for the Euro- ried out under a global “umbrel- ther exists today nor will appear pean Union and worldwide. If we la” of the common international in the future. succeed, we will not only con- commitments under the Paris tribute to protecting our planet Agreement, signed and ratified by and ensure a better future for our both Ukraine and the EU. children and grandchildren, but first and foremost we will prove to the whole world that it is really Ukraine’s adherence to Euro- pean and international norms Besides energy, what areas are in energy field stimulated efficient Green Deal diploma- included in the European Green modernisation of the sector. It cy and an excellent example Deal? also opened for Ukraine a door for the whole world. As I men- to the big European market, for tioned, Ukraine and the EU For the EU, the EGD is not just example, allowing it to sell elec- are both parties to the Paris another policy proposal, it is an tricity abroad. We should not Agreement. Undoubtedly, for overarching transformative agen- forget about another important Ukraine, meeting its EGD com- da covering almost all aspects of aspect of such cooperation – en- mitments will be a huge step citizens’ lives – from energy to ag- ergy security. When, in 2015, towards implementing this very riculture, from circular economy the country stopped buying important global climate pact – to protecting biodiversity, from gas from Russia, the EU legal the Paris agreement. framework served as a base for a new industry to a just transition. The EGD is like a kind of lift, the agreements on reverse gas What exactly does the European which could take us to a future flow from Slovakia and Poland Green Deal mean for Ukraine? where innovative and sustainable to Ukraine. What impact could it have on solutions create growth and pros- its economy? What does Ukraine still have perity without endangering our environment. If Ukraine decides to do to fully implement its As with every new reform, to embark on that lift and follow commitments in the energy implementation of the EGD in on the EU transformative path, field under agreements with Ukraine could pose some threats, it gets a chance to modernize its the EU? but first of all in creates opportu- economy and become more com- nities. Paradoxically, Ukraine’s petitive on the global scale. But I mentioned it on a few occa- low current energy efficiency getting on the lift is not enough; sions, and would like to repeat and the high carbon intensity of one has to push the floor button, now: for me, Ukraine – along its economy could become an ad- implement the reforms and make with other Energy Community vantage under the EGD. On the contracting parties – is de facto a the change happen. part of the Energy Union. Thanks The statement of the Ukrainian to the framework of these inter- Government declaring its inten- national agreements, Ukraine’s tion to join the EGD was welcomed energy and climate commit- at the recent EU-Ukraine Summit. ments were very close to those The EU supports Ukraine’s ambi- of the EU. And here I would like tion to approximate its policies to underline that “commitment” and legislation with the European is not equal to “implementation”. Green Deal and continue the es- I should be honest Any reform, without a real change tablished sectoral dialogues, not with you about the on the ground, transforms into a only in energy, but also agricul- piece of paper. Implementation is ture, transport, industry, and con- potential dangers a long and complicated road with struction. many obstacles. Just to give you of the EGD for an example, it took us five years Does the success of the EGD have to build the Energy Union within any other benefits for the EU and Ukraine if it is the EU. Given different starting Ukraine? points, naturally Ukraine needs not implemented even more time and resources For the EU, Ukraine’s achieve- to reform its energy sector. The ments in implementing the EGD timely and process is ongoing and we do see commitments would be much properly. many achievements, like the Gas more than an example of the Law, but there is still a lot to be structural transformations in done, especially when it comes to the European Neighbourhood: it implementation of legislation. would be a great success story of

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one hand, it would be easier to reach the benchmarks in decarbonising or energy efficiency. On vised high environmental standards. When it comes to concrete the other hand, it might attract in- Also, Ukrainian trucking compa- steps to mitigate the risks relat- ternational “green” funding. After nies might see a decrease in the ed to the EGD, anticipation and all, energy efficiency, new tech- number of contracts as the EU prevention are definitely better nologies, and innovation in the embarks on the ambitious goal of approaches than simple reaction. Ukrainian economy will be very cutting emissions in the transport Let me repeat: the EGD is not only helpful for the country’s future sector. about energy or climate protec- growth and prosperity. As an ex- tion, it covers almost all sectors cellent example, adopting the in- How can Ukraine avoid these of the economy. Therefore, it is dustrial visa-free regime would be threats, or at least better prepare important that the Ukrainian au- a way to facilitate the integration to deal with them? thorities approach it in a systemic of Ukrainian businesses into the way. One step towards developing EU’s new industrial processes. One cannot throw a seed in dry a wider implementation strategy There are also opportunities sand and expect a good harvest. for the EGD might involve pre- in energy sector, for example, in Just the same, the EGD cannot be paring a comprehensive analysis hydrogen generation within the successful if not planted in the of the Deal’s economic risks and European Hydrogen Strategy, fertile soil of democracy and func- benefits to be used as a basis for or batteries production within tioning institutions, including in- future dialogue with Ukraine’s EU the European Battery Alliance. dependent judiciary. Therefore, counterparts. Another might be In agriculture, biomethane pro- the continuation of Ukraine’s re- the appointment of a high govern- duction from biowaste could be form efforts – be it anti-corruption mental official to coordinate the another sector with big potential institutions or legislation in the EGD’s implementation in Ukraine. for growth. Ukrainian organic renewables – is a precondition for farmers could find more clients in the successful implementation of the big EU food market. The EGD the EGD. could also become a key to un- locking EU financial and technical support instruments.

Are there any dangers if Ukraine decides not to go towards the green economy?

I should be honest with you about the potential dangers of the EGD for Ukraine if it is not implemented timely and properly. More stringent climate and environmental regulation could lead to re- stricted access of Ukrainian goods to the EU market. New non-tariff barriers for trade could become a real challenge for resource- and energy intensive branches, which account for a big part of omit Ukrainian exports, like metal- lurgy, the energy sector, heavy chemicals, and machine building. The Ukrainian agricultural sector might face problems related to re- support energy transition – from reskilling and upskilling workers to investments in gas or renewables. That’s exactly why in autumn 2018 – as chair of the European Parliament’s Industry, Research and Energy Committee (ITRE) – I suggested the establishment of the new Just Energy Transition Fund (JTF). Thanks to support of my ITRE colleagues and the whole European Parliament, this proposal has become a part of the Euro- pean Parliament’s official position on the Multiannual Financial Framework (MFF) 2021-2027. And, in May 2020, the new European Commission of President, Ursu- What is the timetable for the Indeed, information plays key la von der Leyen, presented the preparation of the EGD? role in the success of any reform Just Transition Fund proposal as as it helps to promote social one of the main parts of the Green The next year will be crucial for acceptance of new measures. Is Deal. shaping the EGD. This is why it is there enough information about important that Ukraine develops the EGD in the EU? Do European The legislation on the Just its position on the EGD and pro- citizens support the EGD? Do Transition Fund is now in the motes it among its European part- they see it as path to a new making. As JTF rapporteur in ners. As we all know, deeds speak sustainable way of life, or rather the ITRE committee, could you louder than the words. There is as a threat to the economy and to please give a short update on the no better way to make Ukraine’s their jobs and wellbeing? current negotiations? voice heard in the upcoming negotiations than delivering on the The profound change brought Following months of legislative existing commitments in the As- about by the new transformative work, in September the European sociation Agreement, continuing agenda will create many oppor- Parliament has adopted its posi- reforms (in particular in the ener- tunities for growth, innovation, tion on the JTF. As ITRE rappor- gy sector), and decarbonising the and competitiveness. But at the teur, I participated in so-called economy. same time, it will bring big chal- trilogues – informal negotiations Another important role for lenges to the coal- and carbon with the German Presidency rep- the Ukrainian authorities, civ- intensive regions. As you right- resenting the Council (EU Member il society, and media is informing ly mentioned, we can succeed in States) and the European Commis- Ukrainian businesses and citizens transforming the economy only sion. On 9 December we reached a about the EGD. Awareness-raising when all citizens are onboard – be compromise on the final text. This campaigns will not only help they from post-industrial cities or agreement will be voted in the Ukrainians better understand the from small towns dependent on plenary in the first months of 2021 EGD but could also allow busi- the coal industry. Obviously, dif- and then will become a law. ness actors to incorporate new ferent regions have different starting approaches to their planning and points, which influences their level The Just Transition Fund will better prepare for future compli- of acceptance of the Green Deal. It finance projects in EU Member ance of their goods and services is our obligation and moral duty States. Does the European with EU climate and environmen- to help those for whom transi- Union financially support a just tal requirements. tion is more complicated, and not transition in Eastern Partnership to leave them behind. How? By countries? Can Ukraine count providing financial resources to on the EU’s help in transforming and modernising its economy?

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Jerzy Buzek (born in 1940) is one of the prominent Polish politicians in modern history. Buzek was an activist of the anti-communist In May 2017, three years be- On 30 July 2020, I had the honour movements in Poland in the 1980s, fore the JTF was presented by the of speaking at the launch of the including the underground Solidarity European Commission, we pro- Just Transition Platform, financed trade union. He was elected to the posed – together with then-Euro- from the EU Budget for 2020. I was Sejm, the lower house of the Polish pean Commission Vice President happy to see that the Ukrainian Parliament, in 1997. From 1997 to in charge of the Energy Union, regions established cooperation 2001, he served as Prime Minister Maroš Šefčovič – the creation of a with the Platform and took an of Poland, introducing sweeping special Coal Regions in Transition active part in the Coal Regions in reforms in pensions, healthcare, Platform. It was a structural ac- Transition Virtual Week on 16-20 local and regional administration, tion financed from the EU budget November 2020. education and mining. During his which aimed to help these regions term in office, Poland acceded to in their transformation and miti- Do you think that the Ukrainian NATO and made key steps towards its gate its social impact. This initi- regions are lagging behind in EU membership. ative has been running through energy transition? Could this be In 2004, he became a Member 2018 and 2019. And last year, when an obstacle for the modernisation of the European Parliament, and tabling an amendment to increase of its economy? in 2009, he was elected President of the Platform’s budget in 2020, I the European Parliament (for 2,5 also suggested widening its scope Paradoxically, the challenges of years) with the largest ever majority of actions as well as including the the coal regions in transition are so of votes. Buzek is the first person Western Balkan countries and different and so similar at the same from the former Eastern Bloc to Ukraine as possible beneficiaries. time. We should take into account hold this position. Currently, he is a We managed to secure a record that in Belgium, France, or Germa- Polish MEP, Group of the European budget of €18 million and the ny the transition of the coal regions People’s Party. Buzek is a member opening of funds to Ukraine and began 40 years ago. In Poland, we of Committee on Industry, Research the Western Balkans. started not so long ago and are not and Energy (he also chaired the even halfway through the process. committee in 2014-2019). Over the How exactly does the Platform The Platform creates a forum last three parliamentary terms, help the coal regions in for exchange – of information, among others, Buzek lead the transition? Do Ukraine’s coal data, and good practices – which legislative work on different energy regions participate? help participants learn about the issues, security of gas supplies, etc. other and inspires them to propose On top of that, he deals with issues The Platform focuses on building their own solutions. I am sure that related to Ukraine and other Eastern capacity (providing needs-orient- the German, Belgian, or Polish Partnership countries. Also, Buzek ed technical assistance and advice experience will be very useful for actively participates in the discussion in developing strategies and gov- the Ukrainian regions, which are of the European Parliament on the ernance, project identification, only at the beginning of this long situation in Belarus. The Parliament and project design and develop- and complicated road. As one says, Magazine awarded him an annual ment) and developing support “viam supervadet vadens”: the road award in 2020 in the Outstanding materials (toolkits, guidelines and is made by walking, just put one Achievement category. reports). It connects stakeholders foot in front of the other. through facilitating good practices, cooperation, and collective dialogue among regions and the wider stakeholder community. The Plat- form also organises high-level political events. REPORT ON THE ONLINE SURVEY RESULTS REPORT ON THE ONLINE ABOUT THE ATTITUDE SURVEY RESULTS OF THE UKRAINIAN ABOUT THE ATTITUDE POPULATION TO OF THE UKRAINIAN RENEWABLE ENERGY POPULATION TO (CLEAN ENERGY), GREEN RENEWABLE ENERGY ECONOMY AND OUR (CLEAN ENERGY), PERSONAL IMPACT ON GREEN ECONOMY AND THE PROTECTION OF OUR PERSONAL IMPACT THE ENVIRONMENT BY ON THE PROTECTION MEANS OF SUSTAINABLE OF THE ENVIRONMENT ENERGY SOURCES BY MEANS OF SUSTAINABLE ENERGY SOURCES GREEN ENERGY. GREEN INTERROGATION

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PREPARED BY EVHENIA - 62.5% of respondents dis- KOLOMIYETS LUDWIG courage emissions from enterprises in Ukraine, as the 75.1% are residents of most valuable thing in this urvey methodology: cities with a population of world is human life and The survey was con- more than one million, 8.3% health. For 27.8%, emissions ducted in 08-14 Janu- are country-dwellers; 2.5% are the downside of industry. ary 2021 by means of are from small towns (settle- The respondents also noted that the CAWI method and ments) with a population of “emissions are bad, but it is the Google forms. The up to 10,000 inhabitants. The responsibility of the state,” “the link to the survey was posted on remaining 14.1% live in small amount of emissions matters!” and S and big towns. the site of Promote Ukraine, Face- “the damage from emissions can book, and has been mailed to the 37.5% of the respondents be significantly reduced without interested audience. mentioned that there are wind reducing production.” 6.1% be- Development of the survey turbines, solar panels, etc. lo- lieve that escalating the situa- tools and information processing cated either in the towns they tion with harmful emissions is have been provided by the Insti- live in or within a 10 km. radi- an artificial problem. tute of Sociological Research at us. 25.6% have seen renewable The respondents’ evaluation Kyiv National Economic Univer- energy installations in their of alternative and traditional sity named after Vadym Hetman. regions. There are no systems energy has formed the follow- The questionnaire was compiled of that kind in the territories ing ranking of “environmental- together with Oleksandr Sush- where 24.5% of respondents ly friendly energy sources”: chenko, PhD in Economics, an dwell, and 12.3% did not pay Thus, solar energy is consid- UNDP Expert on Green Economy attention to such installations. ered to be the least harmful for and Financing, and Roksoliana 29.6% would permit the in- the environment (57% think so), Liubachivska, PhD in Economics, stallation of solar systems in though there are some clarifying the author of the dissertation on their courtyard if they have no remarks like “solar energy is of a “Formation of High Technology obligations of co-financing or thermal and photovoltaic type. The Clusters in the EU bioeconomy.” maintenance. For 14.1%, the production of photovoltaic modules The sociological data obtained feasibility of installing such is very harmful for the environment is descriptive in nature and re- equipment in the backyard as it is based on rare-earth metals flects the general attitude of the seems questionable, and the mining.” Ukrainian population to renewa- risks and problems are obvious. The second place of our ad ble energy (clean energy), green 2.9% found it difficult to answer hoc ranking went to for wind economy and our personal im- this question. A certain number energy (44.4%), and the third pact on the protection of the en- of respondents commented that place is gained by the tradition- vironment by means of sustaina- they would install such equipment al source – the atom (31.4%). ble energy sources of the Earth. to provide their households with Then, geothermal energy The survey was completed by 277 energy and to be independent (29.6%) and biofuel (24.5%t) respondents aged 18 and above. Of from electricity suppliers; others follow. Regarding the latter, it the respondents, 80.9% have high- would agree to install it on the was noted that “it is important er education (Bachelor, Specialist terms of certain compensation or how biofuels are produced.” Because or Master level). The most active on a commercial basis. It was also there is no guarantee that domestic audience is people aged from 41 mentioned that the current green biofuels’ carbon footprint during to 55 (40.8%) and 29-40-year-olds energy is not the means of protection the production is less than the one (33.9%). The least number of par- the planet, but just a noxiousness for during the usage of the biofuels. ticipants (2.5%) is people aged neighbouring regions. In general, 24.5% consider all from 56 to 65. There were no re- However, 46.6% of respond- renewable energy sources to be spondents of 65 and older. ents would agree to install equip- less harmful to the environment More than half of the par- ment on the roof of their houses than non-renewable ones. ticipants (59.6%) are men. Pro- to use alternative energy sources, fessional activity of 19.5% of as they want to be involved in respondents is related to ecolo- saving the planet from environ- gy; 9.7% of respondents are em- mental catastrophe. ployed in the sphere of traditional energy; and 7.5% work with alternative energy. As just mentioned above, 31.4% of respondents do not above are decisive and should are not ready to change their consider the atom to be a harm- be considered together. 9.4% preferences for the “hybrid” ful source of energy. did not think about the ques- vehicle. So, what is the best perspective tion, and for 8.7% the source Respondents noted that “the for operating nuclear power of energy in everyday use does electric car has a short driving plants (NNP)? 43% are convinced not matter. distance and is too expensive;” that nuclear energy is one of the In any case, 15.2% of re- “an increase in the amount of most cost-effective, low-carbon spondents are ready to pay electrical goods leads to an increase energy sources, so this sphere more for electricity if it is in electricity consumption, which should be developed, not aban- obtained from alternative is currently not produced mainly doned.” sources that are safer for the from solar and wind energy;” “as 14.1% believe that in Ukraine environment. They consider it easy government can support it, there are no alternatives to exist- an investment in the future. as easy it could decline its support ing NPPs as energy sources, so 36.8% do not mind paying then and implement triple tariff on it is necessary to support what more, if the price difference is electricity.” exists and build new sources. up to 10% or up to 20% (25.6% By choosing the sphere of in- 37.2% tend to abandon nuclear and 11.2% of respondents, re- vestment, survey participants energy and switch to alterna- spectively). A similar percent- are inclined to believe in its tive sources, given the risks of age of respondents - 36.8 - is economical profit (45.8%), its operating nuclear power plants not ready for the option “ to pay influence on the health and en- (the Chernobyl experience) and more,” in particular because vironment (28.9%), trends and only 0.7% chose the answer “solar and wind energy should innovations (14.8%). “Ukraine is ready to decommis- be much cheaper than ther- By contrast with 28.5% of sion existing nuclear power mal and nuclear, the price is respondents, 43.7% are ready plants.” Among the comments inflated artificially.” 6.9% of re- to invest in technologies of on this issue, we got the follow- spondents found it difficult to renewable energy or/and in its ing: “We must renounce the NNPs, answer the question, and 4.3% development. That question but there are no alternatives yet;” of respondents used the option emerged to be hard for 23.1% “The price [for renewable energy] is “Other” and detailed their po- percent, whereas 1.4% have al- much higher than for NPPs;” “NPP sition: “an environmental audit of ready invested and are receiv- operational life time in the majority production at all stages is required;” ing dividends, and 1.1% have al- of cases has expired, but 50% of “the state must compensate for the ready made an investment and gross electricity production can difference in price;” “renewable are receiving profit. Some re- hardly be replaced especially with energy should be cheap, as it is not spondents pointed out that they alternative sources;” “It is necessary necessary to pay miners for coal are ready to make an investment, but to increase capacity at the expense production, railway workers for its there must be guarantees from the of NNPs, because green energy is not transportation, etc.;” “It’s bullying! state, however, the main deterrent as environmentally friendly, as it is People won’t be able to pay more […], is still an absence of free funds for presented;” “We need to calculate even if it’s good for the environment.” investing at all. and plan the use of nuclear energy 46.9% of respondents are Those respondents who are properly, because it is, in fact, an ready to “switch” to an electric ready to invest in technologies of enormously powerful source of energy car if the government supports renewable energy, demonstrate that can be environmentally safe.” such an initiative; 2.9% already such priorities: 62.1% would like In general, the source of energy use electric cars, and for 20.9% to invest in solar power plants, used by respondents on a daily a hybrid car is the best option. 36.% - in wind-drive turbines, basis is important for 78.7%, as 18.4% do not have a car and do 35.3% - in biofuels, 16.9% - in energy production affects the en- not plan to buy one, and 7.2% vironment (45.1%) and its cost de- energy of geothermal waters, pends on it (33.6%). It was also sug- 14.7% – in hydroelectric power gested that both factors mentioned stations, while 16.2% of participants qualify that question as difficult to answer.

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“The development of renewable sources of energy could be the basis for the agenda and instability;” “ People and of the Ukrainian renovation after business are not mentally ready in Ukraine. The comments for post-COVID crisis” - 34.3% of for changes, they just don’t that question in the box “Other” respondents agree with that understand that if they didn’t are different: from “Lately, I see a statement and 20.9 rather agree. change, any money wouldn’t little information on to that topic” 13.4% would rather disagree and rescue them, their families and to “There is no constant attention, those who completely disagree is business;” “The key-note obstacle but from time to time it is enough 20.9%. is big commercial groups that by attention being paid to that.” For 37.5% of survey partic- ruling governmental marionettes, Just the same as renewable ipants, the issue of green ener- block the development of RES energy issues are not tended gy is urgent and strategically in Ukraine;” “President and his enough in Ukraine, the govern- important for Ukraine. 34.1% team;” “Ravenous oligarchs;” mental support of development agreed with that, too, but there “Corruption, for instance, in the of alternative energy sources are also more important issues sphere of natural environmental in Ukraine are too insufficient that need a solution as fast as protection, the absence of real (54.5%). Only 16.6% think that possible. 27.4% of respondents forfeits and the small cost of it is one of few spheres that re- are convinced that there are it;” “Lack of governmental ceives a high level of govern- more actual issues, that must guaranties;” “Such factors as mental support. 22.7% men- be resolved first: “we need to be insufficient technical resources tioned that it is hard for them conscious of war and epidemic…” of electricity accumulation and to answer that question, and The question of renewable low efficiency factor;” “Low almost 6% of respondents’ energy sources is still effectiveness and inconstant comment it like: “Ukrainians prioritised on the background generating;” “Financial poorness are predominantly supported by of the pandemic and economic of Ukrainians.” international donations according recession in Ukraine and in the So, what is green economy to that issue, and it is their funds that world for 38.6% of respond- for Ukraine from our respond- further the cause;” “Governmental ents; then, 28.9% would rather ent’s point of view? For 49.1%, support is excessive and useless;” agree with this statement. Near- it is an inevitable future; 24.5% “The state has completely delegated ly 30% disagree; 10.1% respond- consider it like a theme for the support of green energy to ed “Rather no” to that question, demagogy and speculation; consumers and granted that 19.5% -“No”. 2.9% mentioned something comparable to mechanism for future. It is a that they can hardly give an an- space exploration of Ilon Mask: mistake;” “It is an alimentation swer. exciting, useful, but fantastic of oligarchic structures under Only 9.4% of respondents for the earliest decades in do- the pretence of helping in solving believe that there is enough at- mestic reality – for 18.8%. 2.2% ecological problems.” tention for issues of renewable mentioned that it is hard for What obstacles are the most them to give an answer, while energy in Ukraine; the same substantial for the development percentage of people said that 7.6 % chose the option “Other” of renewable energy sources in and clarified their opinion: “It is “rather yes, the issues of renew- Ukraine? able energy in Ukraine are tak- a possibility to decrease generation The business climate – in the en into account enough.” In the of electricity on TPP;” “There is minds of 55.6% respondents; same way, approximately the a guaranteed profit for funders legal and regulatory frame- same amount of those surveyed of ‘green’ energetics thanks to the work – 18.4%; insufficient lev- said “no” and “rather no,” which deficiency of business struggling, el of qualified staff members means that 36.8% and 36.5%, for account of consumers;” – 5.1%. 9% said that there are respectively, think that there “Extremely detrimental initiative no difficulties, and almost is not enough attention paid to both for economy and ecology;” 20% have their own versions the issues of renewable energy “Supracompetitive fares. Economical of the reasons of the alterna- machinations. Removing of financial tive energy development prob- sources abroad;” “Corruption and lems in Ukraine: “Financial loss of energetic independence of preconception and assertiveness the state;” “Bane of our life because of big players;” ‘Political risks of fees such as 5 and 15 kWe*year;” “Benefication of DTEK, severe contamination by TPP;” “Green 49.5% of respondents are economics is not an up-to-date issue not acquainted with the Energy because of unresolved energy crisis. strategy of Ukraine until 2035, However, considering renewable 16.6% found that this document energy sources as an aspect of self- is an attempt of being conscious dependence for houses, villages, UTC without proper understanding of – it could be very useful and beneficial the order of things. For 10.8%, for such core audiences.” this Strategy is utopia; for 7.9%, “Feed-in tariff” (that is it is a document that encourag- “stimulation by National es optimism. 6.5% assess it as an made the audience the most commission, which implements objective document with real, cohesive (82.7%): 64.3% an- governmental regulation in the achievable goals. 8.7% found it swered, “Rather yes.” By giving sphere of energy and community hard to answer this question. comments they also mentioned: facilities, production of electricity Ukrainian participation in “Yes, it is important to explain power from alternative sources”) European Green Deal happened full information about alternative is regarded as an effective eco- to be an even more mysterious sources including negative factors;” nomical mechanism aimed to issue than the Energy strategy “Maybe more importantly will be encourage that electricity gener- of Ukraine: 57% are not aware of the explanation of feasibility of ation be renewable energy – by this yet, 12.3 are not interested energy efficiency and accumulation 38.3% of respondents. For 40.4%, in that field. 6.5% think that they of cheap energy;” “Yes. To talk about it is an instrument of commer- are informed enough, and 24.2% its damage for nature and wallet;” cial enterprises and households just heard about it. and “Yes, especially about corruption to consume budget and grant For 52.3% of the respond- (unjustified spending of taxpayers` funds. 11.9% found it difficult to ents, the Ukrainian Strategy money to cover expenses).” answer this question, and 9.4% of implementing green energy And finally, we have found expressed more personalised must be with the consideration out to what extent our respond- opinions on this issue: The Feed- of mistakes and other countries` ents agree with the following in tariff is… experience. 28.2% see it just the theses on alternative energy for “Robbery of final consumers with same as in developed countries: Ukraine: the prospect of appearing in a dept there is no need to discover the pit for the next decades.” continents again. 10.5% are “Hidden subvention of large convinced that the Ukrainian business groups;” strategy of implementing green “Crime against Ukrainians, energy must be unique because because it leads to increasing of we have black soil, an experi- energy prices for the population and ence of Chornobyl and other nat- enterprises. It must be abolished.” ural special aspects. At the same “The tool of robbing the population time, 5.8% of respondents didn’t of Ukraine by oligarchs.” think about it, and 3.2% find it “Speculation of authorities hard to give an answer. together with the oligarchs.” The question: “Is it necessary “Pretending to be concern about to conduct educational work environment;” with the population on the theme “Temporary measure that must of alternative energy sources?” be abolished when effectiveness of renewable sources will increase.” “A great initiative, insufficient regulation;” “A necessary component of energy policy.”

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(1-disagree, 10 – completely agree)

The answers were distributed as follows: 100

“Alternative energy for Ukraine…”

0 – It is a reputational deal that is profitable for the economy

150

100

0 – It is new work places and improvement of environmental conditions

150

100

0 – It is energy independence 150

100

0 – It is additional expenditures on the level of households and at the state level

150

100

0 – It is landscapes spoiled by giant wind-turbines and solar panels

150

100

0 – It is one more threat of climate changing, for example because of “wind shadows”

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150

100

0 – It is an intervention in circuit of substances in nature that will have negative effects

In any case, 15.2% of respondents are ready to pay more for electricity if it is obtained from alternative sources that are safer for the environment. They consider it an investment in the future. 36.8% do not mind paying more, if the price difference is up to 10% or up to 20% (25.6% and “Brussels Ukraїna Review” 11.2% of respondents, respectively). A readers and its editorial board are interested to know your opinion similar percentage of respondents - 36.8 on the results of this survey. If you are one of the respondents, are you - is not ready for the option “ to pay impressed by the point of view of other participants? If you did not take more,” in particular because “solar and part in this survey, what impression do you have looking through this wind energy should be much cheaper summary? Your feedback for the next than thermal and nuclear, the price is issue of the Journal or on its web page https://www.promoteukraine.org/ inflated artificially.” journal/ is more than welcome!

Compiled by Evhenia Kolomiiets-Ludwig

THETHE UKRAINIAN UKRAINIAN COLLECTIVECOLLECTIVE SUCCESSSUCCESS THROUGH THROUGHTREE PLANTING TREE PLANTING CLIMATE CIVIL SOCIETY. CIVIL #BUR5 • @PromoteUkraine 70 • Brussels Ukraïna Review • www.promoteukraine.org • • www.promoteukraine.org • Promote Ukraine • Промоут Юкрейн • #BUR5 • @PromoteUkraine 71

ctober 17, 2020, became a day when the Ukrain- ian collective success story was created. It is the Oexact day when all regions joined together to preserve the ecosystem of the country and plant more than 1,000,000 trees in one day (24 hours), setting a Ukrainian record. 1,000,000 Trees in 24 Hours Ac- tion was held within the Greening of Ukraine global ecological project. The initiative of the Greening of Ukraine belongs to Serhii Haidai- chuk, president of the CEO Club Ukraine, and Hanna Krysiuk, CEO of the Ukrainian Book of Records; implemented with the support of Roman Abramovskyi, Minister of Environmental Protection and Natural Resources of Ukraine, and Vasyl Kuzovych, Head of the State In the Kyiv region, tree plant- “Today, we are plant- Forest Resources Agency. ing took place mainly in Klavdiie- ing trees with our fam- The project aims at drawing at- vo-Tarasove and Kozyn. ilies, friends and part- tention to the problems of ecolo- In Klavdiievo-Tarasove, the plant- ners to support the first gy and restoration of the Ukrain- ing was led by Minister of Envi- Ukrainian collective suc- ian ecosystem; forming a positive ronmental Protection and Natural cess story. It develops image of Ukraine in the world Resources of Ukraine Roman Abram- eco-culture, instils love through the first Ukrainian collec- ovskyi; in the process participated and respect for nature, tive success story. Deputy Chairman of the State Forest and shows others that we, At 8.30 am, October 17, the ini- Resources Agency of Ukraine Yu- Ukrainians, know how to tiators of the project Serhii Haid- rii Bolokhovets, co-organizer of the unite. Furthermore, every- aichuk and Hanna Krysiuk, along Greening of Ukraine in Kyiv region one can contribute to the with chief coordinators Nadiia Ilona Bauwens, representatives of restoration of the ecosystem Chystiak, Yuliia Bychai, Tetiana political parties, coordinators, part- of the planet. Global chal- Rozvadovska and Vadym Paraso- ners and participants of the project, lenges do not make us think chka, have planted first trees and including Yuliia Davydova, Hanna but push to act, consolidate announced the beginning of the Korshunova, Yaroslava Boiarkina, and protect nature! With our Action in Holosiivskyi National Iryna Yankovska. actions, we have to show a Nature Park. The planting in Kozyn was organ- good example for youth. For As at noon, more than 700,000 ized by the largest business club in this reason, we plant 1,000,000 seedlings have been planted in Ukraine – CEO Club Ukraine – the trees now – to draw both atten- Ukraine within the 1,000,000 Trees president of which is Serhii Haida- tion of the world and Ukraini- in 24 Hours Action. The most ichuk. In the event took part mem- ans to international ecological abundant amount of trees was bers of the CEO Club Ukraine and challenges,” stated Serhii Haid- planted in the following regions: their families, as well as national aichuk. Lviv, Chernihiv, Vinnytsia, Rivne partners Yurii Shynkarchuk, Na- Each region has chosen cer- and Zhytomyr. taliia Yaromenko, Alo Streimann, tain types of trees considering Public, private, educational Nataliia Filipchuk, Iryna Ivano- its specifics. They were dedicat- and diplomatic institutions, min- va, Victor Makovenko, Kostiantyn ed to war heroes, peace, friend- istries, military, city and regional Voitov, Serhii Pozniak, and Serhii ship, family, and the restoration councils joined the Action. Shulha. of abandoned recreation areas. A total of 33 species of trees have Ukraine; Natacha Díaz Aguilera, been planted in Ukraine, most of Ambassador Extraordinary and Mr Pohribnyi was on a business which are Scots pine, European Plenipotentiary of the Republic trip in Beverly Hills, USA. At the fir, oak, birch, apple tree, paulow- of Cuba to Ukraine; Serhii Haid- meeting, a colleague from the Uni- nia, walnut tree, maples and wil- aichuk, initiator of the Green- versity of Oregon presented Andrii lows. ing of Ukraine, president of the with a bunch of pin oak acorns. In Kyiv region, the central loca- CEO Club Ukraine; Hanna Kry- After returning to Ukraine, he tion for planting named trees of siuk, initiator of the Greening of sowed these acorns in the Hardy. diplomats, organizers and nation- Ukraine, CEO of the Ukrainian Only one survived and sprouted. al partners was in Holosiivskyi Na- Book of Records, president of the For ten years this oak had been tional Park. Business Woman Club; Yurii Bo- nurtured; the higher and stronger Among guests who participat- lokhovets, Deputy Chairman of it grew, the faster Hardy nursery ed in planting named trees, the the State Forest Resources Agen- developed! diplomatic and partnership al- cy of Ukraine et al. On October 19, during a press leys were: Viktor Yushchenko, At 5 pm Serhii Haidaichuk conference, the organizers de- the third President of Ukraine; and Hanna Krysiuk – together clared the results of 1,000,000 Olha Stefanishyna, Deputy Prime with Roman Abramovskyi – have Trees in 24 Hours Action. It lasted Minister for European and Eu- planted an iconic millionth tree. since October 17, 9 am till October ro-Atlantic Integration of Ukraine; It became a symbol of Ukrainians 18, 9 am. In one day 1,831,333 trees Roman Abramovskyi, Minister uniting to create a collective suc- were planted in 24 Ukrainian re- of Environmental Protection and cess story. gions. The number of tree species: Natural Resources of Ukraine; Ol- The millionth tree was an 33. Also, in solidarity with the eco- eksandr Tkachenko, Minister of oak donated by the owner of logical project and Ukraine, 115 Culture and Information Policy of the Hardy ornamental nursery trees were planted in 10 countries. Andrii Pohribnyi. Ten years ago, #BUR5 • @PromoteUkraine 72 • Brussels Ukraïna Review • www.promoteukraine.org • • www.promoteukraine.org • Promote Ukraine • Промоут Юкрейн • #BUR5 • @PromoteUkraine 73

These results were marked in uk, Iryna Chernysh; Mykolaiv the Ukrainian Book of Records – Roman Burov, Tetiana Chekali- as the first Ukrainian collective uk; Volyn – Yuliia Vusenko, San- success story. Category: Ecology, dra Minenko; Cherkasy – Serhii mass events. Shmyhol; Chernivtsi – Olha Bau- “Today we are celebrating the er, Pavlo Koliadynskyi; Cherni- The project aims at new Ukrainian record, as well hiv – Serhii Okhonko, Innva as the first Ukrainian collective Kryvenko; Zhytomyr – Liliana drawing attention success story. People united in Dmitriieva; Kropyvnytskyi – Teti- to the problems planting trees to preserve and ana Kotenko. restore the country’s ecosystem. National Partners: A-Bank, of ecology and We have set a worthy example Abipharm, Business Woman not only for our children but also Club, Ukr-China Communica- restoration of for adults throughout the world. tions, LAMEL Professional, Riv- And it is just the beginning,” said ian Owners Club, VIATEC com- the Ukrainian Hanna Krysiuk, initiator of the pany, TVK VECTOR-VS LLC, FGK Greening of Ukraine, CEO of the Financial Group, Cronvest Fin- ecosystem; Ukrainian Book of Records. Stream, SHEN company, Agrii More than 50,000 people took Ukraine, EVA LAB, NGO White forming a positive part in the Action. Bird, Brusviana LLC, NGO I CAN. Most trees, seedlings and bush- image of Ukraine es were planted in the following regions: Zhytomyr, Rivne, Volyn, in the world Lviv, Vinnytsia, and Chernihiv. Vinnytsia region was the only through the one able to consolidate all its first Ukrainian towns and villages to participate in the Action. collective success The largest number of loca- tions for planting trees was in story. the Donetsk region: 70. Regional organizers and coordinators of the project are: in Lviv – Ihor Dulyn and Iry- na Hvozd; Donetsk – Dmytro Lubinets, Mariia Honcharova; Odesa – Maksym Kutsyi, Olha Vanda; Khmelnytsk – Alina Sko- morokhova; Harkiv – Mariia Mezentseva, Anastasiia Maibo- roda; Ternopil – Tetiana Chubak; Ivano-Frankivsk – Lesia Aronets, Tetiana Rozvadovska; Vinnytsia – Hanna Davydenko, Olha Mal- ynovska; Herson – Yurii Husiev, Olha Filina; Luhansk – Valenty- na Ahafonova; Kyiv – Ilona Bau- wens, Sofiia Omelchenko; Rivne – Iryna Tesliuk, Kateryna Yevush- ko; Zakarpattia – Hanna Meleha- nych; Poltava – Olha Makieieva, Oleksandr Kolosovskyi; Sumy – Dmytro Kulibabin; Zaporizhzhia – Borys Shestopalov, Svitlana Va- niukhina; Dnipro – Yurii Ostapi- SVITLANA LEBIGA: ARTIST WHOSVITLANA TELLS EUROPE LEBIGA: ABOUT ARTIST UKRAINEWHO TELLS EUROPE ABOUT UKRAINE

NATALIA RICHARDSON IS A UKRAINIAN JOURNALIST SPECIALIZING IN EUROPEAN AFFAIRS. SINCE 2001, SHE HAS BEEN WORKING IN BRUSSELS. SHE HAS BEEN A STAFF CORRESPONDENT FOR UKRAINIAN NEWSPAPERS EVENING KYIV AND DAY, DEUTSCHE WELLE RADIO, AND RADIO FREE EUROPE/RADIO LIBERTY. SHE HAS BEEN A EUROPEAN AFFAIRS CORRESPONDENT AT THE BRUSSELS OFFICE OF EURONEWS FROM THE BEGINNING OF THE UKRAINIAN SERVICE TO ITS CLOSURE FROM 2011 TO 2017. NATALIA WORKED ON TV 1+1,, THE FIRST NATIONAL CHANNEL OF UKRAINE AND OTHER MASS MEDIA. SHE HOLDS A MASTERS DEGREE OF EUROPEAN INTEGRATION FROM VRIJE UNIVERSITEIT BRUSSEL. CULTURAL CULTURAL PAGES #BUR5 • @PromoteUkraine 74 • Brussels Ukraïna Review • www.promoteukraine.org • • www.promoteukraine.org • Promote Ukraine • Промоут Юкрейн • #BUR5 • @PromoteUkraine 75

his painter, who lives in the Belgian town of Bruges, “I really love has a far-reaching goal: to tell Euro- Ukraine. I love peans about the Ukrainian people. Ttraditions of Ukraine, its beauty and richness of nature. For 20 years of her life in Belgium, Svit- It’s true, it’s not lana Lebiga has been trying to deliver to Europeans an image of just words or a Ukraine that sometimes differs quote from books, from the interpretation by the Western press. The artist is con- it’s life,” says Mrs. cerned that the ordinary West- ern citizens get mostly negative Lebiga. This is the information about the Ukrain- ian state: about the war in Don- feeling the artist bas, corruption, etc. Mrs.Lebiga is the founder and president of carries through the Cultural Centre of Ukraine in Belgium; she organises Ukraini- her life, and her an Art Weeks and other events to help people learn about the histo- paintings are ry, art and customs of Ukraine - a country that the vast majority saturated with this of Europeans overlook. love. And people As a little girl, Svitlana adored drawing. In addition to her natu- feel it. ral gift, the family had their influence. Her mother Lyudmyla was an artist of applied and decora- tive arts and a member of the Na- tional Union of Artists of Ukraine. Two children have followed in her footsteps, both daughter and son Svyatoslav. Both went on to compete and joined the Repub- lican Art School, from which they successfully graduated. At a young age, the studio lessons of Viktor Zaretsky, a well-known artist and public figure, gave a lot for the development of Svitlana’s artistic skills. “When I think back to my childhood, I remember not some toys or friends, but exhibitions,” smiles Mrs. Lebiga. “I am not a supporter of the Soviet times at all, but back then I witnessed very beautiful, bright exhibitions in huge halls in the Zhovtnevyj (October) Palace, the House of Artists. I remember it well.” The “Ukrainianness” - which Both then, as a child and as a and this fills her works with joy now runs like a golden thread young girl, and now, Svitlana and light, but sometimes also through Svitlana’s artworks - was works hard: she considers the day with sadness. inherited rather from her father. lost without painting. The artist Why did the Ukrainian artist end According to Svitlana, Vsevolod creates landscapes of the picturesque up in Belgium? She did not even Lebiga was a scientist, one of the Ukraine and paintings, where em- think about her move to this country, founders of the People’s Move- broidered towels, national cos- but oddly enough, it was her love ment of Ukraine in Kyiv. Even be- tumes and other elements are for Ukraine that caused it. In the fore Perestroika, he introduced made in a style that combines folk ‘90s, Svitlana focused on painting his daughter to books that told the painting, Ukrainian avant-garde Ukrainian themes while listening to truth about the Holodomor and and realistic school. The painter Ukrainian music. She made a lot of other terrible pages in Ukrainian emphasises and plays with colours, figurative paintings with folklore history. She would get more into the national spirit later, during her studies at All-Ukrainian Art Insti- tute, when the students did their artistic practice in the villages of Ukraine. There they were helped by ordinary people to learn the folklore, traditions and history of the country. “You stand with an easel painting a landscape and some old woman was walking by, carrying something in her apron. She says: ‘Child, spread a newspa- per.’ And the woman pours pears. And then she invites you to have lunch at her house,” recalls the director of the Ukrainian Cultural Centre.

#BUR5 • @PromoteUkraine 76 • Brussels Ukraïna Review • www.promoteukraine.org • • www.promoteukraine.org • Promote Ukraine • Промоут Юкрейн • #BUR5 • @PromoteUkraine 77 plots and folk traditions. Many people knew about her work because the artist cooperated with patriotic and women’s organisations. And isn’t that a miracle? One day, Svitlana received a call from the Foreign Ministry of Ukraine proposing that she have a personal exhibition in Belgium dedicated to the 10th anniversary of Ukrainian independence. And then,a real success came: on the one hand, professionally, because Belgians were delighted with her works; on the other hand, personally, because Guillaume Van- beckevoort, director of the West Flanders Art Academy fell in love with both the paintings and the painter herself. A bit later he became Svitlana’s husband. “Carols”

“Fishermen’s boats” “Clouds are approaching”

“Ukrainian dance” “River Snow. View of the church ” from Kharkiv, Yana Gudzan and Serhiy Happy ending? Is it Savchenko from Lviv, and other masters. enough to live in a rich There were also works by two artists from country with your beloved Donetsk. man and to work, if at all, The first is Ihor Musin (now de- only for your own pleasure? ceased), who was not a professional Yes and no. Mrs. Lebiga de- artist. He worked all his life in a mine, cided to fill in the gap in his parents having been repressed in knowledge about Ukraine the Soviet time. His father was shot, among Belgians and and his mother was in the camps. Mr. other Europeans. During Musin started drawing graphics in her first years in Belgium, later years, being in Bruges, where he she organised her own or was taken by his daughter for medical small group exhibitions treatment. The second artist is Serhiy with Ukrainian themes. Zakharov, who was imprisoned in 2014 Then, she started teaching for his graffiti and installations that at the Koksijde Academy on mocked separatists. Ukrainian artists the North Sea coast, where from other countries - the Nether- she, with other prominent lands, Slovenia, even the United States artists, gives lessons during - also come to the art weeks founded school holidays. Svitlana by Svitlana Lebiga. tries to see talent in students She says that the geographical fac- and gives them an academic tor - the weeks and other exhibitions base in drawing. take place mainly in Bruges - is ex- There is also a Ukrainian tremely important. After all, this town leitmotif here: the artist talks (which is called the “Venice of the North” about her homeland and love for its canals) is very touristic; people for it. In this way, the course from all over the world are attracted participants also begin to by the preserved medieval architec- like Ukraine, which was not ture. This is why many visitors come known to most of them before to Ukrainian events in the very cen- the class. A striking example tre of Bruges - both those who have of this: after the outbreak of planned their trip and those who the war in Donbas, Mrs. Leb- happened to be there during a walk iga’s students collected money in the town. There is another bright to buy materials for the art-re- event: the Vyshyvanka Days (vy- habilitation of war victims in shyvanka is an embroidered shirt). the Carpathians. There is more When Svitlana and other members to come. The painter organises of the Ukrainian diaspora walk Ukrainian-themed events at around Bruges in national clothes, the Cultural Centre for Ukraine everybody looks at the charming in Belgium, which she founded. women in beautiful vyshyvankas. These include workshops for Tourists react vividly and even take artists and exhibitions in vari- photos. ous Belgian cities and towns. “I really love Ukraine. I love Started in 2019, the Ukrainian Ukrainian people. It’s true, it’s not Art Weeks have a special sig- just words or a quote from books, nificance. They bring together it’s life,” says Mrs. Lebiga. This artists from different regions of is the feeling the artist carries Ukraine who work in various gen- through her life, and her paintings res. Among the participants were are saturated with this love. And Olena Klochko from Bakhmut people feel it. (Donetsk oblast), Olexandra Ky- rylova from Kyiv, Olga Adam

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