Mergers & acquisitions in the Ukrainian In pursuit of the presidency: Top festivals not to miss in mass media since 2010 interview with Vitaliy Klitschko and Eastern Europe this summer

№ 12 (54) jule 2013

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Dr. Ryoji Noyori is the President of RIKEN, the The Embassy Initute of Physical and Chemical Research of Japan, and Chairman of the Science and of Japan presents Technology Council at the Japanese Miniry of Education, Culture, Sports, Science and Technology. His scientific contributions have been recognized by numerous awards includ- Science Shapes ing the Tetrahedron Prize (1993), the Japan Academy Prize (1995), the Arthur C. Cope Our Future Award (1997), the King Faisal International Prize for Science (1999), the Order of Culture (2000), the Wolf Prize in Chemiry (2001), a le ure by Dr. Ryoji Noyori, and the Roger Adams Award (2001). In 2001, he shared the Nobel Prize in Chemiry with a Nobel Prize-winning chemi W. S. Knowles and K. B. Sharpless.

Inquiries: Embassy of Japan in Ukraine FREE ENTRANCE tel.: (044) 490 55 00 |contents BRIEFING FOCUS Beyond Tolerance: Media & Acquisitions: The Purging of the Media: Do local revolts New media empires rise The owners of Ukraine’s reflect wider social and oust old moguls. fourth estate – present sentiments? One thing they have in and past common is secrecy of 4 ultimate owners 6 8 POLITICS The Hidden is Becoming More United Twice: Despite the successful Evident: The sale of the UMH merger of the Front for Change and Inadequate depositsgroup to a friend of the Family Batkivshchyna, theThe united bigge party risks risk The real deposit rate has grownis unlikely more to worsenthan thesevenfold quality over three years, from facing more dissentOver and January-April lose voter 2013, the deposit base grew by almo UAH of Ukrainian journalism, since support unless Yatseniuk revises his 2.4% in 2009 to almo 17% in 2012 43bn. However, banks inve ed less than 30% into produion most of it has long become a 10 approach to party building 12 paid notice board segments. Over 52% was borrowed in loans to the government NEIGHBOURS Intere rates for hryvnia-denominatedIn Pursuit of the Presidency deposits Philippe de Lara Di ribution of funds availableKeeping Up at banks over 20 An interview with Vitaliy 17.2 on the myths of the With the Croats: Change of consumer price indexKlitschko and16.7 The Ukrainian Great Patriotic WarJan-Apr , 2013 After Croatia’s Week’s impression: he and why they are accession, Europe improves his rhetoric but bound to fail should be ready 14.7 14.6 avoids giving clear answers UAH 28.2bn to admit more UAH 1.3bn to crucial questions 14 (UAH 22.6bn) 17 new members 18Other seors 15 ECONOMICS 12.3 Society Systematic Recession: The Illusion of Securities, includingRefugees in Ukraine: Why Ukraine’s Big Business: Not Our Problem? economy and public The results of the government securitiesUkraine often turns a finance are in a much government’s blind eye to international worse state today detrimental refugee law adding 10 compared to 2012 economic another blow to its 19 policies 20 reputation in the world 22 12.3 HISTORY UN’s Vincent Cochetel on The First Economic Revolution: refugees in Europe and New ways of procuring food Ukraine and asylum granting freed ancient people from the 5 9.1as a humanitarian act rather dependence on natural factors than political statement and caused their numbers to UAH 11.4bn -0.2 0.1 25 grow exponentially 26 4.6 Loans to CULTURE & ARTS UAH 2.4bn 0 Nude Interpretation: Sony World Photography Leonidas Donskis non-financial 2009 2010 2011 2Award-winning012 Roman 04. Pyatkovka2013 talks about Household loans on George conservative Kyiv, the balance of social and Orwell’s legacy corporations Source: State Stati ics Committee personal in his work and the new wave of Source: NBU contemporary Ukrainian photography Banking indu ry risks – BICRA assessment The bigge risk. 30 32 Source: Standard & Poor’s Economic risk Navigator 5 The Ukrainian6 Week 5 10 8 7 10 7 7 offers a selection of the Indu ry risk hottest festivals in Ukraine 3 and Eastern 5Europe this 5 7 7 7 10 9 8 summer Brazil, South Africa China Іndia Ukraine Kazakh a34 n Belarus Uzbeki an Azerbaijan

E-mail [email protected] Tel. (044) 351-13-87 www.ukrainianweek.com The Ukrainian Week № 12 (54) July 2013 Editors address 37 Mashynobudivna str., Kyiv, 03067, Ukraine Founder ECEM Media GmbH Print Novy Druk LLC, 1 Mahnitohorska str., Kyiv, 03056, Ukraine Publisher ECEM Media GmbH Ordering number 13-6990 Sent to print on 4 July 2013 Address Austria, Am Gestade,1, 1010 Vienna Print run 15 000. Free distribution State registration certificate КВ № 19823-9623ПР 19.03.2013 Head of editorial board Roman Tsupryk Our partner Editors Anna Korbut, Natalia Romaneс, Shaun Williams № 12 (54) July 2013|the ukrainian week|3 briefing| 19 June – 3 July The Constitutional Assembly ap- Taliban terrorists attack The screenings of Open Access, proves in principle the draft concept of a group of alpinists in a cycle of short films includ- amendments to the Constitution: this Pakistan, killing three ing one about the president’s could signal the preparation of a back-up athletes from Kharkiv residence in Mezhyhiria, were for Yanukovych in the form of a premier’s disrupted all over position with extended powers Beyond Tolerance he injustice and impunity of Prosecutor’s Office does not back- those in power are pushing pedal cases and opposition MPs Ukrainians towards decisive supervise the process, the Vradiy- Taction that grow ever more ivka precedent could well stir frequent and consistent. The riot quite a few investigations against in the small town of Vradiyivka in a substantial number of local po- Mykolayiv Oblast is merely the licemen. Overall, the Mykolayiv latest link in a chain of many police is known to have con- spontaneous revolts against those ducted 63.3% of all non-public in power. In Vradiyivka, people proceedings in Ukraine, which stood up with the demand to pun- could be evidence of profound ish two policemen who brutally corruption. raped and beat a local female res- Meanwhile, the government ident and tried to hush up the reacted to the riot, just like to crime under the protection of other local protests, in a perfectly highly-placed superiors. The po- predictable manner (especially lice kept secret the name of one of provided that it has never admit- the rapists, Captain Yevhen Dry- ted its own obvious mistakes and zhak, for quite a while. He turned has never surrendered its peo- out to be the godson of Valentyn ple). It tried to intimidate poten- Parseniuk, Chief of the Mykolayiv tial protesters, in order to dis- Regional Office of the Interior courage them to take to the Ministry. However, in addition to streets. For example, instead of at demands to bring the guilty peo- least apologising for the actions ple to account, the protesters rec- of his subordinates, the Interior ollected other numerous crimes Minister announced that “the committed by law enforcers. The forms of protest chosen (by the Ukrainian Week’s reporter heard people in Vradiyivka – Ed.) are many horrendous stories about unacceptable.” The Interior Min- people who were tortured or istry has initiated criminal pro- driven to suicide by the police, of ceedings regarding the unrest confessions that were beaten out and storming of the regional po- of them and the moral terror lice station in Vradiyivka upon committed by the now detained charges of hooliganism, con- officers, as well as other “defend- ducted by a group of people, and ers of order”. Opposition MPs, deliberate destruction or damage who had come to Vradiyivka, of property. On July 3, TVi, 1+1 called on the victims as well as and LB.ua journalists were ar- their families to report this to the rested and taken to the regional Prosecutor’s Office. People who station. spoke of the terror were hesitant In the last three years, similar initially but then started sharing riots have flared up in various re- their evidence one by one. If the gions. The murder of student Ihor The month in history 27 June 1663 28 June 1940 2 July 1853 The Chorna Rada (Black The Red Army The Crimean War for domi- Council) in Nizhyn seals enters Bessara- nation in the Middle East the split of Ukraine into bia and North and the Balkans between Left-Bank and Right- Bukovyna the Russian Empire and the Bank hetman states coalition of allied states is launched 4|the ukrainian week|№ 12 (54) July 2013 |briefing

Lithuania’s presidency in the Croatia joins the Local authorities EU Council kicks off, setting the EU as the 28th report that the State signing of the Association Agree- member-state Treasury has blocked ment with Ukraine at the Vilnius their funding on a Summit in November as one of its massive scale top priorities

Indylo while in detention at a po- lice station in May 2010 infuri- ated Kyivites and led to a human rights campaign, demanding an impartial investigation of the case. In Kyiv Oblast, fellow villag- ers stood in defence of Vitaliy Za- porozhets, who killed a police- man who terrorized the local resi- dents. The Mykolayiv cases of Oksana Makar and Oleksandra Popova, the victims of rape and violence from Mykolayiv, have also gained resonance thanks to the people, who pressed law en- forcement agencies to act effi- ciently within the law, bringing the rapists to account. The latter were sentenced to a significant prison term – more than ten years. In June, in Lysychansk, Luhansk Oblast, people who had sunk into despair because of mass unemployment due to the closure of enterprises around which the leads to a wave of violence, as whole village comes together, town had been built, twice seized was the case in Vradiyivka, when then no one is afraid any longer.” the meeting room of the city local residents tried to storm the Today, opinion polls show council. In Mykolayiv Oblast, vil- regional police station. that Ukrainians consider the lagers working at an agricultural Sociologists feel that the de- worsening of their financial company of opposition politician gree of protests could increase. standing as the main reason Arkadiy Kornatskiy are currently Iryna Bekeshkina, Chairperson of which would make them take to engaged in guerrilla war against the Board of the Democratic Ini- the streets. Indeed, riots often raiders, who are supported by the tiative Foundation, notes that ac- flare up in poor areas. But pov- local authority. cording to survey data, a rela- erty is hardly the main reason. Riots repeat with new force tively small number of people are There is not much in common for various reasons, and some- prepared to participate in protest between the cases of Vitaliy Za- times are of a new quality. In a actions today (25.5% of Ukraini- porozhets, Iryna Krashkova, the country where the level of trust ans are willing to do so), but they victim of Vradiyivka’s police- in power bodies is critically low can be exceptionally effective in men-rapists and raider attacks (up to 20%, talking into account terms of organizing one in certain against Kornatskiy’s agricultural “partially trust” responses in a circumstances: “People don’t see company. In all of these cases survey conducted by the Demo- how their protests will change people had just one motivation cratic Initiative Foundation) and anything. This view is held by for protest – the reinstatement less than 1% in law enforcement more than 50% of those surveyed. of justice. This once led to the officers, the high degree of pro- One third of those surveyed are 2004 Orange Revolution when test sentiments appears com- afraid of repression. But there is a Ukrainians felt that they were pletely normal. It’s indicative point when they stop being afraid. fed up with blatant falsifications that public anger ignites sud- The loss of fear is directly propor- during the election, in other denly, without any thought-out tionate to the number of people words, injustice on the part of organization, which sometimes who came out to protest. When a the authorities.

3 July 1973 4 July 1893 5 July 1943 7 July 1923 The Conference on Danylo Demutskyi, the The Battle of The Ukrainian Security and Co- Ukrainian photographer Kursk, the larg- High Peda- operation in Europe, and camera operator est armoured gogic Institute of the predecessor of involved in the production clash in human Mykhailo Draho- the OSCE, begins in of Oleksandr Dovzhenko’s history, begins manov opens in Helsinki Zemlia (Earth), is born Prague № 12 (54) July 2013|the ukrainian week|5 focus|Media Media & Acquisitions The Yanukovych circle is launching a media purge: Some media moguls have already lost their assets. Meanwhile, new empires are emerging in Ukraine. The secrecy of their real owners is a typical common feature

hen Author: were produced, following a notori- since and shows no intent of return- was president, the ac- Oleksandr ous scandal after the chief editor ing to Ukraine indirectly confirms quisition of media assets Mykhelson left what was one of the most popu- this. Wwas a kind of sport for lar dailies. Profile, another busi- In April, it was the turn of TVi. the oligarchs, who viewed the mass ness magazine, went out of busi- The journalists of the cable TV media as convenient political lever- ness. The online version of Telekry- channel, owned by a number of off- age. However, the 2008 economic tyka and the Izvestiya v Ukrayine shore companies, criticized the gov- crisis shifted priorities and media (News in Ukraine) newspaper left ernment so harshly, that many op- projects turned into something like the holding and underwent re- erators refused to broadcast TVi be- a suitcase without a handle for busi- branding. This was, in effect, the fore the 2012 parliamentary ness conglomerates. First and fore- end of the holding. election. In April, it suddenly most, this was true for print publi- Meanwhile, Kolomoyskyi main- changed hands: control went from cations. In 2009, the first ones to tained control of the UNIAN news the offshore companies controlled face change were KP Media with the agency. In early 2010, he bought a by Russian political migrant Kon- American publisher, Jed Sunden, as group of TV channels, including stantin Kagalovskiy to those osten- its main shareholder; and Glavred- 1+1, TET, Kino (Films) and City. sibly founded by an Odesa-born Media controlled by tycoon Ihor Many saw a political motive be- American businessman Alexander Kolomoyskyi. hind this, particularly since most of Altman. However, the public Sunden had closed down Kolomoyskyi’s publications’ teams couldn’t help but notice the obscure Novynar, a Ukrainian-language were critical of the Yanukovych re- role of Mykola Kniazhytskyi, an op- magazine that had survived just one gime. However, it turned out that position MP and TVi’s former CEO, year, back in summer 2008. In the government hadn’t even started who backed the change, or the 2009, he sold Kyiv Post, an English- the media purge at that time. The shady ownership structure of the language weekly published since fully-fledged campaign kicked off in “fair channel” (the authorized capi- 1995, to the Pakistani-born steel ty- 2013. tal of the ultimate offshore company coon, Mohammad Zahoor. In sub- Inter Media Group was the first that owned TVi turned out to be a sequent months, he got rid of a to go. On February 1, news surfaced mere USD 1,000). Most journalists number of glossy magazines. of the sale of Inter Media Group to left the channel, while its reputation In spring 2011, the time came to gas and chemical tycoon Dmytro among the narrow but loyal audi- sell the entire holding whose triune ence suffered a devastating blow. face was the weekly, the relatively weakest Speculation as to who really stands as well as the bigmir.net and korre- behind the new owner still varies, spondent.net websites. Petro Po- players will probably fall but it is the Family that is men- roshenko and his Ukrainian Media prey to the ambitions of tioned most often. Holding (UMH), run by media mo- The deal to sell UMH, a huge gul Borys Lozhkin, became the new the new media moguls first media holding, to the golden boy, owners of KP Media. Poroshenko 27-year old multimillionaire Serhiy joined the deal as a minority share- Firtash. Until then, Valeriy Kurchenko, was relatively transpar- holder of UMH. Salary arrears be- Khoroshkovskyi who was first vice ent. UMH is mostly comprised of gan at Kolomoyskyi’s holding in premier in February-December various print publications, includ- 2009, even causing a strike at 2012, owned the controlling stake. ing the Korrespondent and Forbes- Glavred. “I am unable to ensure the Group’s Ukraine business weeklies, the development under current circum- Komsomolskaya Pravda v Ukrayine A turning point stances, and these circumstances (Komsomol Truth in Ukraine) daily The real changes came after Viktor are my main motivation for the newspaper, tabloids, as well as Yanukovych became president. By sale,” Khoroshkovskyi stated imme- sports and cooking magazines. The the end of 2010, the holding diately after selling his company. holding also includes a number of stopped publishing the magazine The leaked price of the deal left radio stations and the most popular and the Novaya (New) daily, as experts shocked: the holding sup- online portals. well as the print version of the posedly cost the buyer an incredible In his comments shortly after Telekrytyka media publication. USD 2.5bn. However, rumours in the deal, Borys Lozhkin hinted that Summer 2011 saw the closure of political circles have it, that it wasn’t he had sold 98% of UMH for around Gazeta po-Kyivsky (Kyiv Newspa- the price that made Khoroshkovskyi USD 450mn. This is expensive, but per), the brand under which a accept the offer. The fact that Inter’s the license for the Ukrainian ver- number of regional publications former owner has been abroad ever sion of the international Forbes, a 6|the ukrainian week|№ 12 (54) July 2013 Media|focus lars a year today to support a news- paper distributed for free, but it’s not a problem for our neighbours,” an experienced PR expert shares his assumptions. “The Kremlin has probably not yet decided whom it will support in the 2015 presidential election but it is already preparing propaganda instruments.” The owners of media holdings who have so far managed to protect their assets from the appetites of Russia and the Family must feel very insecure in this situation. The biggest ones include Petro Porosh- enko with his Channel 5, Ihor Kolo- moyskyi with the 1+1 Group, Viktor Pinchuk whose group of STB, ICTV and Novy Kanal (New Channel) ac- counts for nearly 1/3 of the total viewing audience, and Rinat Akhmetov who owns Segodnya multimedia group and Ukraine TV vast distribution network and the bankruptcy. Someone also bought Group, which recently merged into advertisement market it dominates, four channels of the Business Group. a single holding. may have swelled the price. There is an interesting story behind Naturally, the relatively weakest Experts surveyed on our web- this: the group’s owner, Ruslan players will probably fall prey to the site assume that there will be no Demchak, was detained on charges ambitions of the new media moguls sudden changes in the editorial pol- of the misappropriation of state first. “The less powerful the asset, icy of Kurchenko’s publications, but funds shortly before he was going to the greater the doubt that it remains gradual ones are inevitable. Some run against Hryhoriy Kaletnyk, a in the hands of the current owner,” projects may close down. “Perhaps pro-government businessman and Oleksiy Mustafin explains. “First, all this was a kind of strategy, whereby the father of the current First Vice the rubbish will be bought (fortu- Borys Lozhkin used mass publica- Speaker of the VR, in the last parlia- nately, the buyers don’t know much tions like the Komsomol Truth to mentary election. Demchak was re- about the Ukrainian media market), keep Focus and Korespondent in- leased in February, and signed the followed by small assets.” tact,” says Oleksiy Mustafin, the Di- deal to sell the channels shortly However, the reality is more rector General of the Mega TV thereafter for an undisclosed sum. complex than this. Since last year, Channel and one of the Inter Kolomoyskyi’s group has been in a Group’s top managers. “But it looks more new players long-drawn-out war for the advertis- as though with time, it will become The Family is not the only rising ing market against the united front more and more difficult for them to media mogul. Ex-chief editor of of Pinchuk, Akhmetov and Firtash, stick to this strategy. It is quite pos- Akhmetov’s Segodnya (Today) making it financially vulnerable. sible that a demand (by Kurchenko daily newspaper, Ihor Huzhva, re- Meanwhile, Kolomoyskyi’s interests – Ed.) to fold everything down pre- cently headed a new media holding are backed by other businesses, pri- vailed here, or the magazine covers based on the Vesti (News) daily marily banking, and links to the es- were simply irritating because far newspaper distributed for free in tablishment in Israel and the US. more people looked at them rather big cities (see The Purging of Similarly strong is Pinchuk’s posi- than the articles.” the Media). The group’s sources tion in the West. Akhmetov has So, some media moguls have al- of funding are a secret. According enough authority within the country. ready lost their resources. Mean- to Huzhva, it operates on “bor- Still, everything comes to an while, new media empires are on rowed funds” and the free daily end at some point. “I think many the rise. One feature they all share is should start bringing profits within are frozen in anticipation to see the secret owners. This cannot but fuel four years, mainly due to advertis- fate of UMH in the television seg- suspicion of government support in ing. Media experts see a different ment,” Natalia Lyhachova con- the establishment of the new infor- purpose. “As a non-market but cludes. “For now, Kolomoyskyi, mal media groups. Experts unani- quality product, Huzhva’s Vesti Akhmetov and Pinchuk still have mously claim that the Family is thus may well oust Segodnya and Fakty their holdings. Given the circum- establishing its propaganda arsenal. from the market,” Natalia Lyha- stances, the Family trusts none of Unknown people have recently chova, chief editor of Telekrytyka, them as much as it trusts itself. Ev- bought a number of TV channels and notes. eryone can thus draw their own established several new newspapers. Rumour has it that Dmytro conclusions… But the monopoly of This is not easy to do at a time when Firtash may be one of the new me- one group poses the threat of the es- most big businessmen are cash- dia group’s financial donors, while tablishment of total media purge strapped and do not expect invest- the media talk of Russia, more spe- regime and a return to the times of ments. Someone bought Tonis, a TV cifically Gazprom. “Nobody in “party hierarchy and party litera- channel that was on the brink of Ukraine has a spare few million dol- ture.” № 12 (54) July 2013|the ukrainian week|7 focus|Media

8|the ukrainian week|№ 12 (54) July 2013 Media|focus

№ 12 (54) July 2013|the ukrainian week|9 focus|Media The Hidden is Becoming More Evident The sale of the UMH group to a friend of the Family is not likely to worsen the quality of Ukrainian journalism, since most of it has long become a paid notice board. However, the good news is that from now on, the government will be held responsible for the use of manipulative techniques in the print media he huge deal to sell Boris Lo- UMH holding, said openly that he is thriving Ukrainian media, at least zhkin’s UMH group, one of leaving the magazine because he is print and online ones, as opposed to Ukraine’s biggest media hold- convinced that Kurchenko bought television. They all seemed to be in- Tings, to , a the holding for political purposes, dependent, diverse in content and new-coined 27-year old oligarch, such as to “Shut up journalists be- audience, some even competing stirred a tsunami of publications la- fore the presidential election”, among themselves. Boris Lozhkin menting “the end to free press”. “whitewash his own reputation” and his UMH always managed to Volodymyr Ferodin, Chief Editor of and “use the publication to solve is- persuade everyone around that his Forbes Ukraine, which is part of the sues that have no bearing on the business was actually business, and media business”, thus Fedorin sees a profitable one, with undeniable the sale of Forbes Ukraine as “the success. He even maintained the il- end of the project in its pres- lusion of success during the crisis ent form.” period, when companies started In fact, it is too late to cutting their advertising budgets shed tears over the freedom and many publications closed down of press in Ukraine. It was in 2008. How and at what expense stolen a long time ago, he did this is still unknown. not least by the peo- Anyone who deals with the do- ple linked to the big- mestic media is well-aware that gest media hold- profitability is almost impossible in ings. Ukraine. A simple calculation of the Until recently, number of pages in a publication, UMH was an in- the size of advertisement banners, carnation of the discounts and barter advertisement reflects this. All this is a conse- quence of the lack of a media mar- ket in Ukraine. The biggest media holdings, pri- marily UMH, made every effort to build a system with rules that suit them but bear little relation to mar- ket conditions. UMH’s promotion strategy in Ukraine focused on the expansion and takeover of the adver- tising market. The first objective was a success: UMH now has 860 own points of sale and an extensive pres- ence in all retail chains, from Soyuz- Druk, a nationwide chain of press ki- osks, to supermarkets. So was the second: UMH is now No. 1 in cumu- lative print advertising in Ukraine. This leadership comes largely from the distorted division of the adver- tisement market, while advertisers’ choice is based on misleading and subjective criteria. One is the brand recognition survey conducted regu- 10|the ukrainian week|№ 12 (54) July 2013 Media|focus larly by TNS Ukraine. There are no UMH. Advertisers see these manip- owner bought the holding with all specific facts to confirm the manipu- ulations with ratings and overblown the manipulative instruments avail- lation of monitoring results, but print run figures, so are reluctant to able in the Ukrainian mass media. practical experience has often proved work with the press because they do No matter what Serhiy Kurchenko that domestic conditions distort the not trust its effectiveness. This says, he clearly did not acquire activities of the well-known interna- forces the print media to product UMH as a business because it is not tional companies compiling media placement masked as unpaid cov- one, but as an instrument of influ- ratings (see Sleeping Beauty and ers, interviews or Company News or ence. How effective this influence Bread Crumbs at ukrainian- Position sections, which is blatant will be is a different matter; the sys- week.com). Numerous attempts to PR. As a result, the Ukrainian mass tem that turned most Ukrainian introduce a comprehensible, uni- media system created by the leaders print media into an advertisement form and objective system of print of the present quasi market was cor- board has deprived them of it. In- run and sales certification (there rupt from the very beginning. The deed, a publication can hardly influ- have been two initiatives so far) have overall system of relations in a seg- ence the readership without a sus- faced sabotage and resistance from ment with no transparent competi- tainable and accountable editorial key players. tion, the blocking of proper feed- policy, its own opinion and stance. Obviously, segment leaders de- back from the readers and flirting Meanwhile, only market conditions fine the rules, support their home- with those in power, has in no way allow the profitable operation of boys and oust strangers. In other facilitated the freedom of speech. publications, such as The Econo- words, they act as masters. Among And the UMH management is not mist, that do indeed have their own other things, they impose the notion the only one responsible for this. editorial policy and intellectual plat- that Ukrainian-language media are Just recollect Borys Lozhkin’s pro- form. unpromising and unattractive in the active participation in the 2012 Paradoxically, the acquisition country where 2/3 of the population World Newspaper Congress and of UMH by Kurchenko may be a list Ukrainian as their native lan- World Editors Forum held in Kyiv good thing. As the talented illu- guage. “The Ukrainian readership under the patronage of President sionist Lozhkin walks away from can’t afford to pay,” an advertising Yanukovych and his Administration the business and the Family’s agency once explained. with its relevant content and mes- friend enters the print media sys- The key problem of the print sages (see The Ukrainian Week tem, things may well become much media market in Ukraine is the lack No.16(39) of October 2012). more transparent. At least now it of one. Instead, the segment is dom- Therefore, the fact that a friend will be clear that the government is inated by the “standards” imposed of the Family has acquired UMH watching over most publications in by the biggest holdings, such as does not change anything. The new Ukraine. United Twice Despite the successful merger of the Front for Change and Batkivshchyna, the united party could face more dissent and lose voter support unless Arseniy Yatseniuk revises his approach to party building

atkivshchyna’s merger con- created specifically for Yatseniuk, the Front for Change have con- gress on June 14 could well amendments to the party’s charter sented to merge with Bat- turn into a scandal, given all entail the transformation of Bat- kivshchyna. Many of the former’s Bthe earlier turmoil in the kivshchyna’s executive secretariat current members once left Bat- party. However, its leaders man- into its headquarters chaired by kivshchyna for Yatseniuk’s party aged to stage a pretty show and the Oleksandr Turchynov, who was and are now reluctant to go back. merger of Batkivshchyna, Front also appointed the party’s first Four MPs, including Andriy Zmin (Front for Change), Reformy i deputy head. From now on, a per- Pavelko, Leonid Serhiyenko (who Poriadok (Reforms and Order) and son will be elected to this position have long been considered the part of Narodnyi Rukh (People’s by the party’s congress rather most likely to jump ship soon), Movement) did indeed take place. than appointed by its political Volodymyr Polochaninov and Apparently, the party leaders tried council. At first glance, looking at Hennadiy Zubko have already ex- to seek a compromise and avoid a the new composition of the politi- pressed their opposition to the war at the congress, so some of Bat- cal council and its presidium, the merger at the congress to dissolve kivschchyna old guard’s claims were old BYuT members have appar- the Front for Change. Zubko has fulfilled: the Front for Change dis- ently managed to maintain their been in a conflict with Serhiy Pa- solved itself (but did not suspend positions and did not allow repre- shynskyi, the head of Bat- activity), Arseniy Yatseniuk was not sentatives of the Front for Change kivshchyna’s branch in Zhytomyr authorized to fire local party leaders to take over the new united party. Oblast where he used to head the singlehandedly, while his grey car- The Batkivshchyna to Front for Front for Change branch, would dinal, Mykola Martynenko, does Change ratio is around 3:2 in the thus become first deputy head to not hold any position, nor has he political council and 2:1 in the Pashynskyi after the dissolution become a member. Representatives presidium, which holds the exclu- of Yatseniuk’s party. For this rea- of Batkivshchyna’s old guard who sive right to dissolve territorial son, Zubko has recently been pro- signed the notorious letter to ex- branches. moting his own regional project, premier Yulia Tymoshenko were The Front for Change dis- Zhytomyr is Our Home. not expelled from the party. The solved itself and recommended congress confirmed the decision to all of its members to join the new Old vs new nominate Yulia Tymoshenko as a united party. The leaders of the Objectively, the merger of the candidate in the upcoming presi- Front for Change’s local branches Front for Change, Batkivshchyna dential election without any men- will then become first deputy and Reforms and Order has ex- tion of Yatseniuk in this context. heads of Batkivshchyna’s local posed the fracture within the branches. This is precisely how new united party that could ag- A precarious advantage Serhiy Tihipko’s Strong Ukraine gravate the discord within the Apart from the new position of merged with the Party of Regions. Batkivshchyna parliamentary chairman of the political council, However, not all local branches of faction. Thus, in effect, Anatoliy 12|the ukrainian week|№ 12 (54) July 2013 photo: Unian Hrytsenko, Mykola Katerynchuk normal cooperation with fellow ger exists. There were and will and the Viacheslav Kyrylenko MPs in the faction. According to continue to be crossovers in the group (which has long exhibited Hrytsenko, Yatseniuk views them Rada,” so he expressed support its intent to reincarnate its own merely as powerless button-push- to those opposition members party, Za Ukrayinu!, (For ers. Hrytsenko’s destructive criti- who have decided to stay out of Ukraine!)) gain a wider field for cism aside, the number of those the united Batkivshchyna. manoeuvre. Moreover, new party unhappy with the united party Clearly, each group that lob- structures alternative to Bat- who are ready to jump ship and bied the merger – the leaders of kivshchyna are being established oriented at alternative political the old Batkivshchyna headed by within its faction. More specifi- projects will continue to rise un- Oleksandr Turchynov, and the cally, a group of MPs is forming, less Yatseniuk starts to respond to new party members led by Yatse- that got into parliament under constructive criticism. niuk – is counting on using it for Petro Poroshenko’s quota in the Yuriy Lutsenko has essen- its own benefit. The former believe united opposition. On June 17, tially launched a new project that that the merger will allow them to his top manager and Bat- could ensure a comfortable new keep the party rolling and finan- kivshchyna MP Yuriy Stets be- political force for those in the cially safe. Under favourable cir- came head of the Solidarnist united opposition who are frus- cumstances (such as the release of (Solidarity) party and became its trated with Yatseniuk’s volun- Tymoshenko from prison or the representative in the united op- tarism to switch to, without ruin- position’s political council. Olek- ing their opposition image and sandr Bryhinets, another Bat- turning into crossovers. Al- the number of those ready kivshchyna MP linked to the though Lutsenko stressed at the to jump ship will continue chocolate billionaire, has wel- congress that his formal greeting comed this move. Moreover, to its participants addressed “the to rise unless Yatseniuk given the rumours of Yatseniuk’s party of Yulia Tymoshenko”, he starts to respond to and Poroshenko’s rapproche- claimed that he had not become ment, these processes could sig- a member because he will “em- constructive criticism nal Poroshenko’s growing influ- bark on a path to the same goal ence on decision-making in the pursued by Batkivshchyna from rise of a more promising candi- united party. His nomination in the bottom up and from the peo- date than Yatseniuk), they will be the upcoming mayoral election ple, by organizing a connection able to remove the new head of the in Kyiv may be one of the first re- between opposition parties and political council from his position sults thereof. the populace”. He also noted that or eliminate his influence in the Immediately after the merger “an important component of fu- party, as was the case with Serhiy congress, Yatseniuk tried to con- ture victory is not the debate on Tihipko in the Party of Regions. front the most proactive fron- who will be the single candidate Yatseniuk can count on a chance deurs. However, his failed attempt (representing the opposition in to “win Batkivshchyna from in- to exclude the initiators of the the upcoming presidential elec- side” turning what is a relatively scandalous letter to Tymoshenko tion – Ed.) but efforts to encour- strong party structure in the cur- from the party was followed by an age millions of those who do not rent opposition into a foundation attack on that belong to any party to support for the presidential, local and par- has also proved to be fruitless so this candidate”. This implies Yat- liamentary elections. He has a far. Attempts were made to dis- seniuk, who hopes that his mem- much better chance of implement- grace him for his public criticism bership in Batkivshchyna will al- ing this scenario under current of the opposition that plays into low him to be said candidate. A circumstances than Serhiy Ti- the hands of the government, and more candid signal came from hipko did in the Party of Regions. force him to voluntarily leave the Yuriy Hrymchak, one of Lutsen- The release of Tymoshenko prior Batkivshchyna faction and resign ko’s allies, who stated in an open to the Vilnius Summit of Eastern from parliament. He refused to do letter on Facebook that he was Partnership this autumn is the this, and continues to criticize Yat- forced to leave the party because only factor that could ruin these seniuk for his inability to establish “the party I belonged to no lon- chances. № 12 (54) July 2013|the ukrainian week|13 Politics|Opposition

Vitaliy Klitschko spent almost two days in Paris. The French audi- ence found him much more interesting than Premier Mykola Az- arov who had visited Paris a week earlier. After the debate enti- tled “What is the political future for Ukraine?” held by the Paris- based Centre for International Studies and Research (CERI) In Pursuit of the Presidency together with the Robert Schuman Foundation, Vitaliy Klitschko talked to The Ukrainian Week. Similar to his earlier interviews, in- cluding those for our publication, this one shows that he is consis- tently cautious and unspecific in answers on language, oligarchs Vitaliy Klitschko is improving and his party’s action plan when and if it comes to power. This sig- nals that the priority is to attract the majority of voters, and not his rhetoric, but fails to give only the protest-oriented ones. The goal is apparently to become the most popular opposition candidate by spring next year, thus clear answers to crucial forcing opposition partners to support him. Meanwhile, specific questions regarding answers would outline UDAR’s stance on crucial issues for society and probably cause some backlash among potential supporters the nation’s development and even its core electorate. So far, they have been supporting Klitschko rather than UDSR’s platform, which essentially does not exist. Apparently, UDAR’s greatest fear today is to lose support. This was confirmed by Vitaliy Klitschko’s answer to the question Interviewer: UW: You stated that you do not about how his party would implement changes in Ukraine, to Alla Lazareva take part in the Rise Ukraine! which he replied that the main thing is the people who implement campaign in person because the programme, rather than the programme itself, followed by the the vacation season has begun, usual “we have developed specific steps for the transformations therefore there is no point in that we will implement”. This is nothing specific. In fact, other op- holding them at this time. So, position leaders do the same, but this only signals that they are what tactics do you propose for once more try to sell a pig in a poke to the voters, just like in the struggle against the gov- 2004. If Klitschko really intends to become an alternative to the ernment during the summer current regime, he would be wise to walk away from this image. period? Or do you prefer to do As part of the parliamentary opposition, UDAR has yet to realize nothing? that the necessity to change the oligarch-controlled economy is — If we do anything, the one of the top priorities of a political force aspiring to lead the event should give maximum ef- country after the Yanukovych regime. Among other things, Klitsch- fect. On the one hand, summer ko’s answers raised doubts as to whether he and his allies realize is vacation season. On the other that this is a priority task in unleashing the nation’s development. hand, many Ukrainians are Perhaps he prefers to not focus on this until the presidential elec- working on farms. Political ac- tion. Does this signal that he hopes to become the most accept- tivity is low. Therefore, it makes able candidate for oligarchs, too? This seems to be perfectly in line no sense to hold events in late with the logic of UDAR’s “grey cardinal”, Vitaliy Kovalchuk (deputy June, July and August if we want head of UDAR and leader of its executive headquarters) who once to achieve a maximum result. Of expressed the expectation that “the time will come and elites will course, this does not mean that be forced to support Klitschko”. Moreover, given Klitschko’s an- political activity should be swers, he does not really understand the difference between halted altogether. But as for wealthy people, big entrepreneurs and oligarchs. The latter are rallies… It will be strange to plundering the nation’s assets and resources, backed by adminis- employ a lot of human trative leverage and their influence on ruling regimes, instead of and organizational re- developing business. sources at rallies Klitschko also avoided giving a definitive answer to the question where there will be of his possible support of oligarch Petro Poroshenko, known for a low turnout. his political opportunism (co-founder of the current Party of Re- gions, one of the leaders at Nasha Ukrayina (Our Ukraine) and minister in Tymoshenko’s and Azarov’s cabinets), in the Kyiv may- oral race. And, just as before, he continues to ignore discrimination against the . “The language issue is not the top prior- ity,” he says over and over again, and does not insist on the aboli- tion of the language law passed a year ago, although he opposed it back then. This time, his answer to the question of “Should this law be abolished?” was an obscure “it could be”. Unfortunately, this means that he and UDAR on the whole, do not realize the role of the Ukrainian language as a basis for the consolidation of the nation, the overcoming of its postcolonial inertia and Ukraine’s exodus from the Kremlin’s orbit and neo-imperialistic concepts, based on the expansion of the Russian language as a determining civilization marker.

14|the ukrainian week|№ 12 (54) July 2013 Opposition|Politics In Pursuit of the Presidency

This is why the format of com- munication with people should change in summer. And work should continue. UW: Yuriy Lutsenko recently stated that voters should unite around a programme of changes in the country rather than a leader. UDAR’s election platform contains many reason- able provisions but it is not very specific, and has no algorithm for accomplishing the goal. This may be enough for a platform, but does your party have a step-by-step programme for the transfor- mations that the country needs? — I don’t entirely agree with Lutsenko. A pro- gramme is very important but look at the platforms of, say, the Party of Re- gions or the Communists. You will find well-written rea- sonable things there. Any party can have a nicely-written plat- form. But the most important thing is the people implement- ing it. Unfortunately, there is a huge gap between the declara- tion and implementation of in- tents in Ukraine. Of course, we do have specific steps for trans- formations that we shall imple- ment. UW: Are you ready to name ten members of your team who could take the top offices in the country if your party comes to power? — First of all, it is too early to talk about this now. We have two more years before the presi- dential election. Secondly, I be- lieve that we should nominate a single candidate from all oppo- sition forces in the presidential race. This should be someone who stands the best chance of winning against Yanukovych. Thirdly, My team is made up of people who meet three key cri- teria. First, they must be hard-

hoto: PH L P hoto: working; second, they must be № 12 (54) July 2013|the ukrainian week|15 Politics|Opposition professional, and third, they prove the chances of a pro- language law passed last year. must possess moral qualities. government candidate. Have your MPs drafted a bill to — First and foremost, we de- abolish this law? UW: You mentioned the oli- mand that the mayoral and city — We will do our best to garch-controlled economy that council elections are held si- abolish laws that run counter to hampers the development of multaneously in Kyiv. With an the interests of society, more- society and throws the country illegitimate Kyiv City Council, over split it. Currently, the is- into regression and poverty in the mayor will be forced to sign sue of the language is not the your speech today. What are illegitimate decisions. This is a top priority. Ukrainians are you planning to do with oli- matter of principle. But the gov- first and foremost interested in garchs? How do you intend to ernment does not want to hold employment, salaries, high restrict their political and fi- the Kyiv Council election simply prices, social standards and nancial impact? because anti-government senti- pensions… The language issue — I don’t want to run too far ments among city voters are at a is not quite so acute. However, ahead. Let’s remove the “ifs”. As critical level, and opposition some politicians are deliber- I said today, oligarchs also want deputies in a new council would ately fuelling animosity to gain to have rules that don’t change. political dividends. This frac- That’s the first point. Secondly, tures society. we shouldn’t struggle to elimi- the issue of nominating nate rich people, as was the case a single candidate UW: Do you think that this law in the past. We must take real- should be abolished? ity into account. People who in the first round — I believe that this law work in Ukraine should pay is still on the agenda. could be abolished. taxes rather than transfer funds to offshore accounts, but create The person with UW: Have you ever heard new jobs. They should be so- the most electoral questions about UDAR’s coop- cially accountable. Unfortu- eration with Svoboda in con- nately, Ukraine does not have support should be versations with Western politi- this today. The financial means the candidate. cians? The Ukrainian govern- of people are currently being ment’s lobby has shaped a depleted at an alarming rate. This is the only criterion pretty negative image of it in Europe. UW: Should the EU sign the As- comprise 90%. The government — I haven’t been asked such sociation Agreement with knows this and categorically op- questions. We are united in a Ukraine if the government poses holding the election. struggle against the current re- does not release Yulia Tymosh- gime. We are different political enko? UW: Do you think that the op- forces and we have different — Let’s think about it to- position, including UDAR, programmes, platforms and gether. The Association Agree- would support Petro Porosh- voters. However, we are joining ment includes provisions whereby enko in the mayoral race? He our efforts to reboot the power Ukraine undertakes to implement is not really an opposition pol- system in Ukraine. judicial reform. Let’s imaging that itician, is he? the agreement is not signed and — Let me reiterate: we have UW: Do you support Tymosh- Yulia Tymoshenko is in prison in to choose a candidate before we enko’s idea of three opposi- a country where no one puts pres- can support one. Meanwhile, we tion candidates running in the sure on the government, or insists don’t have the election but al- 2015 presidential election? Or on reforms, or says that there ready have a crowd of candi- do you think that the opposi- should be no political prisoners… dates. First, the designation of tion should nominate a single And another option: the govern- an election, then we can talk candidate agreed upon before ment has not released Yulia but about candidates to support. the first round? has committed to implementing —I believe that the issue of reforms, particularly of the judi- UW: You said at the confer- nominating a single candidate ciary and a profound reform of ence today that Ukraine lacks in the first round is still on the law enforcement as crucial ele- independent and unbiased agenda. I think we will have an ments, by signing the agreement. judges. How do you propose opportunity to decide on this in Both opposition forces inside the to ensure the independence of spring next year and opposition country and foreign observers su- judges? forces will be able to nominate pervise and control these trans- — They must be elected one. Who exactly? The politi- formations. Let’s choose the rather than appointed. The cian who stands the best chance course that is the least painful Ukrainian judiciary is currently against Yanukovych. We have both for Ukraine and Yulia Ty- a closed clan; life-long judges to think about this, about a moshenko. and appointments through ad- change of government in the ministrative leverage. This must country. Therefore, the person UW: If the mayoral election be changed. with the most electoral support takes place in Kyiv, what could should be the candidate. This is force you not to run? After all, UW: Both UDAR and you your- the only and most logical crite- this would significantly im- self have spoken against the rion. 16|the ukrainian week|№ 12 (54) July 2013 Opinion|neighbours Freedom for History

Author: he myths of the Great Patriotic War are a mas- mains for our time. Newly disclosed archives and Philippe sive misrepresentation of history and a tricky testimonies, new perspectives and deeper under- de Lara political trap for Ukrainians who are forbidden standing have proven more than once than it has Tfrom recovering their own history and claiming been wrong to believe that “we already know every- recognition of their suffering. They are suspected of thing that is to be known”. “fascism” as soon as they part from the orthodox Sceptics will say: “This is an issue for academics, for narrative of the GPW, and forced to struggle against readers of history books, it has no political bearings.” doubts about crimes whose memory should belong Activists will say: “We just have to fight for the recog- without question to the universal conscience. But, nition of our status as victims, don’t complicate like Chornobyl, GPW spin doctoring is a poison things, let’s keep the skeleton in the closet.” They are which is not confined to local devastation — it is both wrong. The progress of historical understand- spreading all over Europe by distorting the memory ing becomes widely known sooner or later, it spreads and understanding of events which shaped the conti- in the global culture, creates new standards for the nent. This is a well-known fact, but one which needs historical narrative. This is a piecemeal but inevita- constant reassessment, since the poison was inocu- ble process. The Russian policy of forbidding free lated very early in the 1940s and it cannot be fought history and imposing an official (actually Stalinist) by brisk counter propaganda but only by a patient, version of the GPW by law and threat, with its heroes steady quest for the truth, by unfolding all the facts and villains and its secrets and lies is of course a and placing them into the big picture, while fostering frightening policy. It seems to be finding success in On June 24, Rus- an open historical discussion through education and corrupting the youth, imprisoning generations in ig- sian Duma regis- media. The action of norance and false con- tered a United states is crucial in estab- sciousness. But it is Russia-sponsored lishing this freedom of re- the Great Patriotic War bound to fail. Russia is draft law to intro- search and discussion, in story-telling is bound no longer a closed for- duce criminal lia- supporting academic re- tress hiding the world bility for anyone search, education and to fail despite its from its inhabitants. who denies the verdicts of the memorial policies. temporary hegemony Whenever a Russian citi- Nurnberg Trials, Even in Western coun- zen travels abroad, be it the contribution tries where freedom of speech and strong inde- an oligarch skiing in Austria or a student study- of an anti-Hitler pendent academic institutions have been estab- ing in France, books, talks, movies, etc. put them coalition armies, lished for a long time, it has not always been in contact with an open history which cannot but and spreads “in- easy to free ourselves of the grasp of the “antifascist in the long run challenge and overcome the story- tentionally mis- legend”, which muddled the facts of WWII by put- telling in which they are trapped. However invasive, leading informa- ting all the Allies on the same footing, colouring any this story-telling is weak. Pretence, even violent pre- tion on this con- criticism of the USSR as impossible or illegitimate. tence backed by the state is still pretence and does tribution by not have many true believers. accusing them of Of course, in liberal countries, we did not have to war crimes.”One struggle against the bigger tricks of the Soviet illu- That is why the fight for the freedom of history, for of the reasons sionist, like the downplaying of the Holocaust by a liberal education, without imposed textbooks, the behind this was a merging all the “victims of fascism” together, or the sharp and patient criticism of all the flaws, to say scandal caused denial of the Holodomor or the Katyn massacre. But the least, of the orthodox narrative of the Great Pa- by a publication there was all the same a difficulty in coping with triotic War are important for all Europeans and, let of Leonid Goz- history, for instance in acknowledging and giving me insist on it, for the Russians which are the first man, a well- all its significance to the Nazi-Soviet alliance in victims of a policy than can bring them no good, known politician 1939-1941, which is still downplayed and misunder- which is a false pride that has very little to do with and Director of stood, as if it were a strictly defensive move by the authentic memory and spoils even the glorious as- Humanitarian Projects at Rus- Soviets and as if they did not invade Poland (and pects of their history. nano. He com- hereby Western Ukraine). Soviet lies about Katyn To put my point briefly, the meaning of WWII is not pared Soviet and about the Holodomor were only recently fully a mere intellectual affair but a critical political is- counterintelli- disclosed to Western educated opinion. sue, a barometer of re-Sovietisation or democrati- gence agency The improvement in knowledge about WWII and zation in eastern Europe, and therefore a key for its SMERSH to the the political massacres perpetrated by the Nazis future, and GPW story-telling is bound to fail de- Nazi SS divisions and the Soviets in Eastern Europe is a task that re- spite its temporary hegemony. № 12 (54) July 2013|the ukrainian week|17 Neighbours|EU Keeping Up With the Croats

After Croatia’s accession, Europe should be ready to admit more new members

RITICS who say the Euro- The EU's next poor cousin suffered from enlargement: pol- pean Union has been icy squabbles are mostly among tipped into inaction by the $32,690 older members, not between old Ceuro crisis are mistaken. and new. Romania and Bulgaria Despite it, policymaking in such may indeed have joined too soon, areas as competition, energy, the but the admission criteria have single market and telecoms car- been toughened since they ries on. And on July 1st the club signed up. Countries with frozen will admit its 28th member, Croa- conflicts should be told to re- EU Chroatia tia. solve them before they join and To many this marks the be- 11.1 not after. Hungary is being ginning of the end of a process. nagged back into line, albeit with Most people accept that the $17,810 difficulty. Turkey was accepted western Balkans must eventually as a European country at least as join the club, so membership far back as 1963, when it signed talks continue with Montenegro an association agreement. and will open next year with Ser- Clearly, people in the EU are bia. But further negotiations worried about immigration. But with Turkey, already almost fro- it will be decades before many of zen, have at German insistence these countries can join, and been put off until October, be- 21.6 even then they will have long, cause of the Turks’ crackdown on potentially unlimited, transition protesters (see article). And no- periods before enjoying full free body even raises the possible ac- movement of labour. Size, pov- cession of Moldova, Ukraine or erty and religion have never the Caucasus. GDP (PPP) Unemployment, Inflation, stood in the way of membership This is a mistake. Enlarge- based on WB 2012-2013, % 2012, % and should not suddenly become ment has been the EU’s most data, 2011 obstacles now. Democracy and successful policy bar none. The the rule of law remain funda- hope of membership was crucial mocracy. Others, like Turkey, are mental requirements for the in fostering and smoothing the not really European at all. Public EU—indeed, this is precisely transition to democracy, first in opinion is against more expan- what gives it such powerful le- Greece, Spain and Portugal and sion, partly because of rising re- verage over would-be members. later across large parts of eastern sistance to large-scale immigra- Europe. The lure of joining the tion. Potential candidates from Fending off a bear hug rich democrats’ club led coun- There are also strategic argu- tries into social and constitu- ments for continuing to dangle tional reform and persuaded Democracy and the rule of the prospect of EU membership, them to free statist economies. law remain fundamental however far off it may be. Russia The results benefited not just is promoting its own Eurasian new members, but existing ones, requirements for the EU— customs union. It has little to too. indeed, this is precisely offer beyond cash and cheap en- Those who oppose further ergy. But if Ukraine, for in- enlargement offer several argu- what gives it such stance, concludes that EU mem- ments. The EU club is already powerful leverage over bership is off the table for ever, too large to function well, they it may drift eastward. Turkey’s say, and is anyway in too big a would-be members adherence to Western alliances mess to afford new distractions. is similarly embedded in its Some countries were let in be- the east are too big (Ukraine), EU aspirations. If these are fore their institutions were suffi- too poor (Moldova), too Muslim thwarted, it too could look else- ciently developed (Romania and (Turkey again), too autocratic If Ukraine, for where. Europe would do better Bulgaria in 2007), or with unre- instance, concludes (Azerbaijan)—or some combina- to have hopeful neighbours that solved territorial disputes (Cy- that EU membership tion of the above. aspire to its standards than is off the table for prus, 2004). Hungary (also ever, it may drift Yet all these points have an- grumpy ones that feel they have 2004) has regressed in its de- eastward swers. Decision-making has not been rejected. 18|the ukrainian week|№ 12 (54) July 2013 |Economics Systematic Recession

ast week, the State Statistics Author: It is becoming ever more difficult for the Ukrainian government to finance Service of Ukraine released Lyubomyr the budget deficit – external borrowings are becoming more expensive Shavalyuk Net placement of domeic government bonds (the margin between those placed Ukrainian industry indices for 12 and repurchased) over a month, UAH bn (left scale) 1000 May 2013: the decline com- 9.83 EMBI + Ukraine spread *, bps (right scale) 11.10 L 10 8.89 pared to the same month in 2012 900 constituted 9.3%. A closer look at a 8 839** 815 6.41 6 5.31 wider range of data reveals that the 836 781 6.33 800 current pace of decline is not ran- 4 4.66 4.77** dom and the economic situation is 683 2 0.95 700 in fact worsening rapidly. In May, 650 0 the volume of work in the construc- 598 0.13 0.03 600 -2 616 tion industry dropped 29.1% year- 588 588 -1.89 582 570 on-year (in April – by 21.7%). As a -4 547 500 result, the industry lost 17.8% in -6 production volume in the first five -7.55 -8 400 months of 2013 and fell below the 06.2012 07.2012 08.2012 09.2012 10.2012 11.2012 12.2012 01.2013 02.2013 03.2013 04.2013 05.2013 06.2013 lowest figures of 2010, the period *EMBI + Ukraine spread – the difference between the co of Ukraine’s and the US’ external borrowings (the difference of weighted between the 2008–2009 economic YTM between Ukrainian Eurobonds and US Treasury bonds) **As of 24.06.2013 Source: NBU and CBonds crisis and the recovery in the run-up to the Euro 2012. Since the lack of years of continual growth. Unsur- have been enough to finance the investment today means the ab- prisingly, this made Ukrainian me- budget deficit “from loan to loan”, sence of growth tomorrow, such dy- chanical engineering an outsider of but for two factors. First, Ukrai- namics signal that the worst months domestic industry after it lost 18.1% nian Eurobonds have already for the economy lie ahead. The cri- in May, since the Russian Federa- started to see a rapid loss in value. sis is also deepening in the trans- tion is its main target market. How For example, Ukraine-2013 is cur- portation industry: over Jan-Apr deep down the industry will drag rently trading with a 9.75% YTM, 2013 cargo turnover dropped 10.7% Ukraine’s entire economy will be although these bonds were listed at compared to the same period last clear in the second half of 2013 7.5%, and traded at 6-7% only two- year; over the past five months the when Russia is likely to plunge into three months ago. Foreign borrow- decline hit 11.4%. The crisis is miti- recession itself. ings are growing more expensive gated by a moderate growth of agri- Financial sector indices look and this is unlikely to improve, if cultural output and retail trade at menacing against the backdrop of only Ukraine will be able to borrow 5.1% and 11.6% accordingly in the declining industry. In four months anything at all. Secondly, domestic first five months of the year, com- of 2013, Ukraine’s consolidated borrowings are seasonal: In 2012, pared to January – May 2012. How- budget deficit hit UAH 18.9bn, the amount of domestic govern- ever, this is not enough since agri- which is three times more com- ment bonds increased by UAH cultural output growth remains un- pared to the same period in 2012. 28bn in the first six months, but changed for the second month in a Meanwhile, this year’s budget rev- did not change for the rest of the row, while retail trade turnover fell enues listed UAH 10.7bn of ad- year. While banks had sufficient li- 12.7% in four months. The situation vance income tax payments from quidity to help out the government on external markets is more likely enterprises in Q1’2013. Thus, if the by buying out bonds worth almost to deepen the economic crisis in government had not pumped UAH 18bn in the first half of 2012, Ukraine rather than lead to eco- money out of business, the consoli- subsequent liquidity problems nomic recovery. dated budget deficit of Jan-Apr caused them to reduce their gov- According to Eurostat, the de- could have been almost twice as ernment bond portfolios and the cline of industry in the EU contin- high. Over Jan. 1 through June 24, NBU was forced to intervene by re- ues, although it slowed to 0.8% in the amount of outstanding domes- purchasing them. April year-on-year, after almost 18 tic government bonds increased by This signals that the solvency of months of 2–3% monthly declines. UAH 41bn. Of this, the NBU un- the government will be under threat This could be seen as a positive dertook the liabilities worth UAH within the next few months. The trend that could support Ukrainian 23bn by issuing the relevant present condition of the economy industry in time, particularly if amount of hryvnias for this. Com- and public finances is far worse Ukraine signs the Free Trade Zone mercial financial institutions un- than it was last fall. The Family’s Agreement with the EU in Novem- dertook another UAH 19bn.Two young reformers team is making ber 2013. However, the Russian fac- more international government last-ditch efforts to stave off eco- tor is currently putting pressure on bonds placements were made re- nomic collapse turning to Treasury the Ukrainian economy. According plenishing the Treasury with USD bills, struggling with transfer pric- to RosStat data, Russian industry 2.25bn. This left the government ing, etc. However, all these mea- faced a 1.4% decline year-on-year in with a UAH 13.1bn reserve on the sures will merely worsen Ukraine’s May. This is now the third negative NBU’s accounts and UAH 5.2bn in prospects once “stabilization” re- monthly result in 2013 after several commercial banks. This should sources have been exhausted. № 12 (54) July 2013|the ukrainian week|19 economics|Banks ance of payments. The current ac- count deficit grew from USD $3bn to USD $14.8bn in 2010-2012, com- The Illusion of pared to USD $12.8bn in the crisis year of 2008. This is close to the balance of trade worth USD $14.8bn. In this case, where did the money come from to buy the im- Big Business ported goods and services? The gov- ernment took funds from foreign- exchange reserves and borrowed High deposit rates with zero inflation, expensive money thus boosting government loans and a production sector underfinanced by debt. In 2011-2012, the National Bank of Ukraine (NBU) sold a net of banks whose funds are channelled to support the USD $11.2bn from foreign exchange reserves, compared to USD $10.4bn cash-starved budget are all results of the in the crisis year of 2009. How did government’s detrimental economic policies the crisis differ from the “recovery”? Moreover, foreign exchange re- Author: swimmer’s performance de- construction, transportation, steel serves were higher back then. An- Oleksandr pends on the water in which production and chemistry, to name other source of foreign currency is Suhoniako, he swims, its temperature, a few. These economic conditions the growing government debt. It Chairman of Achemical composition and are hitting the state budget hard. grew by almost USD $25bn from the waves. Banks similarly depend on The budget deficit for 2012, less the 2010 to 2012, adding another USD Association of the economic environment in which deficit of NaftoGaz Ukrayiny, was $4.7bn over the first four months of Ukrainian they operate. twice that of 2011, reaching UAH 2013. In 2009, government debt Banks Ukraine’s GDP remained over 53.5bn. Four months into 2013, the per capita was around UAH 7,000 5% short of the pre-crisis level in budget deficit was UAH 16.2bn or USD $864. Now, it exceeds UAH 2010-2012. The economy has been compared to only UAH 4.5bn over 12,000 or USD $1,480. Sooner or in downfall and recession the past the same period in 2012. Mean- later, Ukrainians will pay this three quarters, and experts, interna- while, budget revenues were lower through inflation and devaluation. tional financial organizations and in April this year compared to April Keeping the hryvnia exchange rating agencies are not optimistic 2012. rate stable and inflation low has about 2013. The industries facing The fundamental problems of been the government’s strategic negative trends include processing, Ukraine’s economy show in the bal- goal for the past three years—one

Inadequate deposits The bigge risk The real deposit rate has grown more than sevenfold over three years, from Over January-April 2013, the deposit base grew by almo UAH 2.4% in 2009 to almo 17% in 2012 43bn. However, banks inve ed less than 30% into produion segments. Over 52% was borrowed in loans to the government Intere rates for hryvnia-denominated deposits Di ribution of funds available at banks over 20 17.2 Change of consumer price index 16.7 Jan-Apr, 2013 14.7 14.6 UAH 28.2bn UAH 1.3bn (UAH 22.6bn) Other seors 15 12.3 Securities, including government securities

10 12.3

5 9.1 UAH 11.4bn -0.2 0.1 4.6 Loans to UAH 2.4bn 0 non-financial 2009 2010 2011 2012 04.2013 Household loans corporations Source: State Stati ics Committee Source: NBU The bigge risk. Banking indu ry risks – BICRA assessment Source: Standard & Poor’s Economic risk 5 6 5 10 8 7 10 7 7 Indu ry risk 3 5 5 7 7 7 10 9 8 Brazil, South Africa China Іndia Ukraine Kazakh an Russia Belarus Uzbeki an Azerbaijan

20|the ukrainian week|№ 12 (54) July 2013 that damaged both the economy Ukraine’s banking sector has the and the banks. The government ac- worst possible rating of 10. Its in- complished these political goals dustry risk is 7. Standard & Poor’s through a liquidity crunch in 2011 BICRA rates Ukraine’s banking at 9, and 2012. The deficit of hryvnia that one of the lowest among all post- was manually kept out of the econ- USSR states with only Belarus lag- omy and artificial rise of the hryvnia ging behind with 10. exchange rate froze production, Over the past four months, knocked GDP down and increased banks have drawn more deposits the debt burden on banks. The sta- than they issued loans to non-finan- ble hryvnia cost Ukraine the stifled cial corporations over sixteen economy, a government debt months. Soaring credit interest 1.75-times larger than that of 2010, rates on the one hand and huge and the sale of foreign exchange re- risks in lending to the economy on serves worth USD $11.2bn over the the other have stifled the key func- past two years. All these negative tion of the banking system, which is economic trends are damaging the to channel free assets drawn from banking sector. The artificial liquid- households into the economy. In ity crunch in 2011-2012 boosted the this situation, banks need to cut cost of bank liabilities. From Janu- their spending to stay afloat. Thus, ary-April 2013, banks earned 8.3% many banks have already resorted on interest rates, while spending to layoffs and network branch clo- 21.9% to cover interest on their own sures. Most of the UAH 2.3bn in- liabilities. Over 2012, interest in- come the banking sector reported come grew 3.7% while spending to over the past four months came cover interest charged on banks from cutting expenses, namely the went up by 14.6%. This trend began reduction of provisions for transac- in the last quarter of 2011. tions with assets (UAH 2.4bn), The deposit rate as a difference rather than the growth of income between the interest rate and infla- from lending. Meanwhile, subsid- tion has grown seven times over the iaries of Western banks are leaving past three years, from the normal the Ukrainian market because they 2.4% in 2009 to almost 17% in 2012. see no economic prospects of stay- This signals the extent of the manu- ing in the country. ally created hryvnia deficit, deposit Economic and industry distor- risk growth and lending to the pro- tions have accumulated some ex- duction sector hampered by high plosive ingredients in Ukraine’s credit interest rates. Over four banking system. The share of bad months of 2013, the deposit base loans is 20% according to S&P and grew almost UAH 43bn. Household 35% according to Moody’s. The risk deposits increased 8% over this pe- of hryvnia devaluation is pressing riod. Less than 30% of this newly- the banking sector. The gap be- drawn funding went to the produc- tween their liabilities and assets in tion sector that creates the added foreign currencies is over UAH 6bn. value. Instead, over 52% was used Devaluation will cause direct losses as credit to help the government proportionate to the depth of deval- deal with its budget problems. The uation and the foreign-currency de- government spends this on social nominated liability to asset ratio. benefits rather than production. The intense drawing of free funds Where will it get the money to re- from the population and enterprises turn it to banks under the current under huge real deposit rates and state of the economy and budget? the channelling of these into unpro- Ukrainian bankers should keep this ductive consumption by the govern- in mind when they channel their cli- ment (through government bonds), ents’ deposits into the Cabinet of consumer or import lending is ag- Ministers’ default liabilities. They gravating Ukraine’s economic crisis should remember the sad experi- and increasing the risk of default of ence of the Cyprus banks that also the banks’ liabilities. invested their money into the Greek With this crisis in the economy, government’s bonds. industry, banking and other sectors, At least 70% of the banks’ re- banks will only be able to resume sources should be channelled into normal operation if the govern- the economy. However, this is not ment’s economic policy changes happening due to the huge risks in- dramatically, focusing on maximum volved. In terms of the economic employment of the population and risk that includes economic stabil- economic growth boosted with bank ity, distortions and credit risk, lending. Society|Refugees Refugees in Ukraine: Not Our Problem?

Author: he world gets a new refu- denied entry into Ukraine, being UNHCR Regional Representa- Hanna Trehub gee every 4.6 seconds. Af- arrested and extradited to their tive for Belarus, Moldova and ghanistan, Somalia, Iraq, country of origin. This policy Ukraine, “the long-lasting ad- Tand now Syria are just four pushes Ukraine farther from civ- ministrative reform imple- of the many countries where ilized countries that respect in- mented in Ukraine is just one of wars, persecution and terror ternational law, and is an obsta- a slew of obstacles.” He claims have prompted millions to join cle on the path to the full liberal- that too many Ukrainians still the most vulnerable members of ization of the visa regime with view refugees as simple migrants society by seeking refuge abroad. the EU. seeking a better life. 2,435 Sadly, Ukraine is not a par- Ukraine has not yet devel- officially recognized ticularly welcoming place for A way out? oped or implemented effective refugees from refugees and asylum seekers. People fleeing their home coun- refugee legislation. According to 47 Despite the efforts of interna- tries for justifiable reasons face the UNHCR, refugee related countries live in tional services and human rights complex obstacles when apply- procedures do not comply with Ukraine today Source: State organizations dealing with this ing for refugee status in Ukraine. international standards, just as Migration Service issue, refugees still risk being According to Oldrich Andrysek, before, despite a new law on ref- 22|the ukrainian week|№ 12 (54) July 2013 Refugees|Society because many oblast offices of tion of international asylum the national migration service seekers or people with refugee were not operating for most of status is illegal. 2011. Some of the protesters To a large extent, this is a So- were repeatedly detained and viet legacy. In the USSR, human Refugees in Ukraine: placed in temporary shelters af- rights and anti-discrimination ter authorities refused to grant laws were unheard of, something them refugee status and tried to from beyond the Berlin Wall. force them to leave Ukraine. The Even after 19 years of UNHCR hunger strike ended on February activity in Ukraine, Ukrainian 17 after the oblast migration ser- prosecutors, judges, and law en- vice assured detainees that it forcers still do not understand would resume applications for the key principles of protection Not Our Problem? refugee status and protection. for vulnerable people such as A significant impediment is refugees and asylum seekers. the fact that most Afghan, So- For some reason, the Minsk Ukraine has often turned a mali and Syrian asylum seekers Convention on Legal Aid and Le- detained by the border or migra- gal Relations in Civil, Family blind eye to international tion police are unable to fill out and Criminal Cases has no refugee law. This is the seven-page application for clauses regarding asylum seek- refugee status or additional pro- ers, although there are many CIS another blow to its tection in Ukrainian without as- citizens fleeing to Ukraine and sistance from lawyers and inter- seeking asylum there due to po- reputation in the world preters. As a result, they are litical persecution. Most of them treated as illegal economic mi- come from Russia, Belarus and grants in Ukraine. By contrast, Central Asia where authoritari- EU member-states provide legal anism thrives. assistance and translation free A 2013 Amnesty Interna- of charge, while the border po- tional report lists the most noto- lice fill out applications which rious cases of rights violations refugees must simply sign. against political asylum seekers In 2012, only 12% of appli- in Ukraine. These violations cants received protection in show the international commu- Ukraine. Some were only nity and the EU (with which granted refugee status after they Ukraine hopes to sign an Associ- appealed the initial refusal in ation Agreement) that in prac- court. In the EU, 26% out of tice, Ukraine is not implement- 268,000 were granted refugee ing a key European value: the status or additional humanitar- protection of human rights and ian protection without court ap- prevention of discrimination. peals. Kyiv ignored Ukraine’s com- mitments under the UN Con- Political flavour vention against Torture and the It is no secret that many asylum Refugee Convention when it seekers in Ukraine fled their tried to extradite Ruslan Suley- countries because of political manov to Uzbekistan. He moved persecution. However, Ukraine to Ukraine in November 2010 tends to break its international out of fear of an unfair trial, tor- commitments under the UN Ref- ture and violence in his home ugee Convention by satisfying country after competitors tried extradition requests. Such cases to acquire Karavan Bazar, the ugees passed by the Verkhovna have grown more frequent under development company where he Rada in 2011. Among other the current government. Very worked. He was arrested in things, asylum seekers with no often, Ukrainian judges seem to Ukraine on February 25, 2011 documents may be detained for forget the fact that UN conven- and placed in a detention centre up to 12 months. tions are the top priority in the when he came to the Chernihiv In January 2012, a group of police station to apply for per- 81 refugees, mostly from Soma- mission to work in Ukraine. lia, announced a hunger strike to Too many people in Ukraine Ruslan did not have access to a protest their detention in camps still view refugees lawyer until May 18, 2011, al- for illegal migrants. They were though this was a violation of placed in two camps in Volyn as simple migrants Ukrainian and international and Chernihiv Oblasts following seeking a better life law. That same month, the a police operation to eliminate Prosecutor General’s Office “illegal migration” in late De- hierarchy of legal commitments confirmed that he would be ex- cember 2011. Most of them had in a UN member-state. Under tradited to Uzbekistan where he no chance to apply for asylum these conventions, the extradi- would be tried for economic № 12 (54) July 2013|the ukrainian week|23 Society|Refugees Exporting refugees Countries 476 of origin,‘000, end of 2012 Germany 746 868 Top ho countries 728 2,586 by number of refugees, ‘000, end of 2012 589 Syria Iraq Afghani an Iran Over 45.2 million Paki an people were displaced in 2012 569 This was the highe since 1994 376 Sudan Ethiopia Somalia 15.4mn 28.8mn Democratic Kenya Refugees 937,000 Internally Republic 1,136 Asylum displaced persons of the Congo 1,639 seekers 565 52% men 48% 46% women children 509 Source: UNCR Global Trends 2012

crimes. His request for asylum law enforcement entities” of two Ukraine, alongside a slew of lin- in Ukraine was rejected, but the neighbour states rather than as a guistic and other technical issues UNHCR recognized him as a crime. Ukraine is not yet ready to solve. refugee in May 2013 and took Almost ten months later, no- Equally unsolved are the issues an active part in his resettle- body can be say whether this will of proper recording of incoming ment to a third country that be an exceptional case that will asylum seekers, provision of so- would agree to grant him asy- never happen again, or a prece- cial assistance while their appli- lum. dent followed by more similar cations are considered and the Another notorious violation 23,000 cases and subsequently a blow to lack of a real mechanism to inte- surfaced in October 2012 when refugees leave their Ukraine’s image in the world. grate recognized refugees and homes in search of Russian special services kid- shelter from wars Thus, many Russian, Belarusian people in need of additional pro- napped Leonid Razvozzhayev, a and persecution and Central Asian citizens who tection into society. Russian citizen and activist of every day fled to Ukraine due to actual or Sending peacekeepers to the Left Front, a union of leftist potential political persecution conflict zones is obviously not organizations in Russian and face the question: can Ukraine enough. Ukraine must properly former soviet countries, in really protect them? receive refugees on its territory, Ukraine. Alongside Konstantin just like most countries in the Lebedev and Sergei Udaltsov, A matter of values world do. To accomplish this, Leonid faced charges of “plot- According to the State Migration Ukraine has to make a long- ting mass disturbances” known 35.8mn Service, 2,435 officially recog- awaited move and adopt the as the Bolotnaya Square case. people in the world nized refugees from 47 countries anti-discrimination law. This occurred after he filed all of are under protection reside in Ukraine today. This is In its two decades of inde- of the UN High the required documents to apply Commissioner for nothing compared to the 16mn pendence, Ukraine has managed for refugee status in Ukraine. Refugees seeking shelter in 2012 according to shift the responsibility for ref- His illegal extradition to Russia to the UN’s estimates. Despite of- ugees to the UNHCR one way or was followed by torture and vio- ficial statements whereby Ukraine another. The latter provides sig- lence to force him to admit that is gradually becoming a destina- nificant help but cannot solve he and other activists were plot- tion for refugees, it is still just an- the problem for Ukraine. ting mass disturbances in Rus- other transit country on the way This issue is not simply sia. Subsequently, the Ukrainian to Europe, the US or Canada. about Ukraine’s interest in the Interior Ministry confirmed that As they leave their native liberalization of the visa regime Leonid was kidnapped by “law There are countries, asylum seekers leave with the EU. It is about whether enforcement employees of a for- 10mn the direct threat to their life and Ukrainians are living in a truly eign country”, qualifying this as stateless people health behind, but face burden- democratic country that will “an act of cooperation between in the world some local bureaucracy in protect their rights. 24|the ukrainian week|№ 12 (54) July 2013 Refugees|Society UNHCR's Vincent Cochetel: “Ukraine has to realize that granting asylum to someone is a humanitarian act. It’s an act of protection, not a political statement”

UW: Which countries are the top there are none in many institutions, destinations for refugees in so the administration has a hard time Europe today and which ones dealing with such cases and often produce the most refugees? makes a negative decision. C: Right now, the biggest destination country for refugees is Turkey. It has UW: We’ve had some negative accepted 400,000 Syrian refugees. experience in terms of political This is more than the number of refu- refugee protection over the past gees who arrived to the rest of Eu- few years. What problems do rope in 2012. In Europe, the main you see in this respect in Ukraine destination countries for asylum today? seekers are Sweden and Germany Ukraine has to realize that granting with refugees arriving from Syria, Af- asylum to someone is a humanitar- ghanistan or Russia. ian act. It’s an act of protection, not a political statement. The fact that a UW: Where does Ukraine stand country recognizes someone as a ref- on this map of refugee migration ugee does not mean that it con- in Europe? demns the person’s country of origin In 2002, Ukraine signed the interna- or expresses a judgment about the tional refugee protection instrument. situation in the country of origin. It is it, and another doesn’t because of Every year, there is a certain number not just Ukraine, but several more skin colour, nationality or any factor. of people crossing Ukraine and apply- countries in this region that do not The only thing that matters is ing for refugee status here. The im- understand it this way. Some of them whether there is a well-founded fear portant thing is that this is not a say that they can’t have asylum seek- of persecution, and the authorities large number. Last year, you had less ers from certain countries because should be looking at that. They than 2,000 asylum seekers coming they are neighbour states or the ones should not look at whether the per- to Ukraine. This is nothing. Turkey they don’t want problems with, so son is a trouble maker or whether he has 2,000 crossing its border with they prefer to not recognize asylum will be able to integrate easily. And Syria every day. seekers from there as refugees. How- this is not an easy fix. It takes time, It has taken Ukraine a lot of time to ever, the 1951 Refugee Convention resources and commitment. put the adequate legislation in place, says that people who flee persecu- and we still see many gaps in the lo- tion for political reasons, religion, UW: Can you speak of any cal procedures. It’s a pity because nationality, race or membership in a examples of effective refugee progress has been made since 2002 particular social group can qualify as integration in the European in legislation but not the implemen- refugees regardless of where they society? tation thereof. And different govern- come from. All Nordic countries are doing very ments in Ukraine have seen it as a well in this respect. Germany and transit country. So, they were reluc- UW: What are the biggest the Netherlands do, too. The inter- tant to take any effort to determine challenges you face in terms of esting aspect here is not only the re- the status of refugees, since they had refugee policy and protection sponsibility of the authorities, but the impression that people are just not only in Ukraine, but in the private and public partnership. transiting the country and there is no Europe in general? Authorities admit that they cannot point in integrating them into soci- One of the problems in Europe is ac- do this all on their own. They have ety. Now, Ukraine has to wake up a cess to territory. We realize that laws and procedures, but when it bit and realize that some of those states have their national security comes to practical implementation, people are coming to stay in Ukraine concerns. They need to protect their they need principalities or NGOs to as a middle-income country which citizens and borders. However, bor- implement government projects and may be attractive for some. You also der management should be protec- programmes. They realize that the have people coming for economic tion-sensitive to help people who BIO government can’t do everything. In- reasons who have no right to stay in move because they face persecution Vincent Cochetel tegration is not just about one gov- the country, while others flee perse- in their country of origin. Sometimes has been Direc- ernment taking a decision on some- cution in their country. And they people flee persecutions and wars, tor of the Bureau one staying in its country and inte- think that they can’t find asylum, and do not have the necessary pa- for Europe of UN- grating into it. It takes a welcoming peace and protection in this country. pers to cross borders. Border man- HCR since March community. This means that the In fact, asylum seekers face numer- agement has to recognize that these 1, 2013. Mr. Co- process can involve neighbours, a ous practical problems in Ukraine, people flee for their life and freedom, chetel joined UN- local organization or a church. They the first one being inability to talk to and they need to be identified. They HCR in 1986. He make sure that the kids can go to a the authorities. They can’t make are not economic migrants. That’s managed UN- local school or young men in a refu- themselves understood without inter- one of the big challenges in Europe. HCR field offices gee family can join the local football preters. In principle, the local legisla- The other one is consistency in deci- in Central Eu- club. Integration has several compo- tion provides for interpreters who sion making. It shouldn’t be like a rope, Eastern Eu- nents to it: it’s not just an economic should assist asylum seekers in filing Russian roulette where one person rope and the issue, but a cultural and a social and examining their applications. But applies for a refugee status and gets Middle East. one. № 12 (54) July 2013|the ukrainian week|25 history|Neolithic Revolution The First Economic Revolution By mastering new ways of procuring food, ancient people were freed from the dependence on natural factors, causing their numbers to grow exponentially

A new era. climbed atop a 70-metre-high Rock art proves rock, left his glasses on a parapet the emergence of and jumped off the cliff. His sui- animal husbandry in cide was a tragic consequence of primitive societies his deep disillusionment with Marxist the dogmas that he had upheld throughout his life. Yet his concept of the Neolithic Revolu- tion lived on. Rather than being instantaneous, this revolution un- folded over the course of several millennia and represents a turn- ing point in the history of human- ity in which ancient people began to gain independence from their natural environment. The Neolithic Revolution was a transition from food procure- ment by means of hunting, fishing and gathering to food production by means of agriculture and ani- mal husbandry. This important event, which divides history into two great eras (procurement econ- omy and production economy), is called Neolithization or the Neo- lithic Era. In earlier periods, population growth was constrained by natural factors—primarily limited access to naturally occurring food sources. By mastering relatively nature-in- dependent and efficient ways of ob- taining food, mankind freed itself from the yoke of natural limita- tions, enabling its exponential pop-

th Bio: Author: the 20 CPSU Congress, he gained Leonid Zalizniak is Head of the Department for Stone Age Ar- Leonid Zalizniak a new perspective on the Soviet re- chaeology at the NANU Institute of Archaeology. He represents ality and the condition of science Ukraine in the International Union of Prehistoric and Protohis- he concept of the Neolithic in the USSR, a country he had toric Sciences as a member of a commission on the Paleolithic Revolution was introduced considered the only alternative to period. He has authored several books, including Narysy staro- by legendary Australian ar- capitalism. davnioyi istoriyi Ukrainy (Outlines of the Ancient History of chaeologist V. Gordon Disillusioned, Childe returned Ukraine, 1994), The Swidrian Reindeer Hunters of Eastern Eu- T rope (1995), Vid sklavyniv do ukrainskoyi natsiyi (From Sklaveni Childe, one of the founders of the to London where he wrote a bitter contemporary version of the pre- letter to leading Soviet archaeolo- to the Ukrainian Nation, 1997), Naidavnishe mynule Ukrainy (Ukraine’s Most Ancient Past, 1997),Peredistoriya Ukrainy X-V history of mankind. He was a con- gists, speaking about the hopeless tys. do n.e. (The Prehistory of Ukraine, 10th to 5th millennium BC, vinced Marxist and even sympa- backwardness and political moti- 1998), Finalnyi paleolit pivnichnoho zakhodu Skhidnoyi Yevropy thized with the Bolshevik experi- vation of Soviet science. He volun- (The Northwestern Region of Eastern Europe in the Late Paleo- ment in the USSR. When he last tarily resigned as the director of lithic Era, 1999), Pervisna istoriya Ukrainy (The Earliest History visited and Leningrad in the Institute of Archaeology in of Ukraine, 1999), Pokhodzhennia ukraintsiv: mizh naukoyu ta 1956 after Nikita Khrushchev’s de- London and went back to Austra- ideolohiyeyu (The Genesis of the Ukrainian People: Science vs nouncement of Joseph Stalin at lia, his homeland. There he Ideology, 2008) and others. 26|the ukrainian week|№ 12 (54) July 2013 Neolithic Revolution|history The First Economic Revolution enough food. The spread of bows tion. Population density in early and arrows further depleted the hoe culture communities was 50- population of game animals and 100 times that of hunter-gather- led to a hunting crisis. Primitive ers. Dnieper Proto-Indo-European communities were forced to seek The fundamental change of Trypillia alternative methods of food pro- lifestyle and diet in the Neolithic curement. era also had some negative conse-

s A large part of the diet in the quences. Crowded settlements Eastern Mediterranean consisted had worse sanitary conditions and of wild wheat and barley, lentils often suffered from epidemics. and vetch, which were found in The amount of food in farming large quantities in mountain val- communities increased, but its

Danube leys in the Near East. As they gath- quality was greatly inferior to the ered wild cereals, women acquired meat ration of hunters. The crop skills in working the land and diet consisted largely of carbohy- gradually began cultivating crops drates, while protein, amino acids in a primitive form of hoe agricul- and vitamins were lacking. This ture. sapped energy from the human Anatolia In conditions of food shortage, body, making it an easy target for male hunters had to make more various diseases. It is believed that HHaHattitt and Hurians efficient use of their spoils. Wild the degradation of teeth and gra- baby goats and lambs were kept in cilization of the skeleton (weaken- special pens until they grew large ing of the bones) were caused by enough to be killed and consumed. the transition from a meat-rich In this way, cereal gathering and hunter’s diet to a farming ration ulation growth. As a result of the Areas populated hunting led to the emergence of largely consisting of carbohy- by the earliest drates. Neolithic Revolution, the Earth’s Neolithic two types of production agricul- population has increased 1,000- farmers in ture in the Near East – cattle fold in the past 5,000-7,000 years. Europe, 7th-5th breeding and farming. Neolithic colonization Production agriculture (farming centuries BC Cooking cereals required heat- The demographic explosion in the and animal husbandry) emerged resistant waterproof utensils. Near East created a population some 10,000 years ago in the Near Moreover, containers were also surplus that was unable to obtain East. It came to Europe (and in par- needed to preserve grain until the enough food in its indigenous ticular Ukraine) through the Balkan new crop. Thus, early crop grow- lands, forcing it to migrate to Peninsula. However, the process ing was accompanied by a massive neighbouring territories with was preceded by significant natural spread of earthenware, which sparse hunting communities. The and climatic changes. even became an archaeological far more developed Neolithic new- marker of the Neolithic era. comers brought along production Natural and social By focusing their efforts on agriculture, cultivated crops (bar- preconditions farming, formerly nomadic hunt- ley, wheat and peas), domesti- In the Ice Age, warm humid air ers adopted a more sedentary life- cated animals (goats and sheep), from the Atlantic did not move and their lifestyle, culture, lan- across Europe as it does now, but guage, and beliefs. The settlers rather traversed the Mediterra- Hunting and fishing implemented their economic nean, North Africa and the Near continued to dominate in model in new lands, leading to East, making these regions more new demographic explosions. To- humid. When the Scandinavian Polissia and Eastern gether with soil depletion, this glaciers melted away 10,000 years Ukraine, while Right-Bank stimulated migration to even more ago, the Atlantic cyclone belt remote fertile lands. Scientists moved northward to Europe, Ukraine quickly adopted have calculated that the demo- stripping North Africa and West agriculture and cattle graphic wave of early farmers Asia of oceanic humidity and leav- spread out from the Near East at ing vast deserts there — Moroc- breeding about one kilometre per year. can, Libyan, Sahara, Arabian and Farming and animal hus- Judeaen. Unfavourable climatic style as crop fields required con- bandry came to Europe some changes depleted the flora and stant care and protection. Im- 8,000 years ago from the Anato- fauna, forcing ancient hunters to proved nourishment and a lian Peninsula (modern Turkey). improve their weapons in order to sedentary lifestyle led to drastic The bulk of Neolithic settlers provide their communities with increases in the human popula- moved from the Near East across № 12 (54) July 2013|the ukrainian week|27 history|Neolithic Revolution islands in the Aegean Sea to east- 1 2 3 4 ern Greece and from there north- wards to the territories along the Danube. Some colonists pro- ceeded along the Danube river valley to Central and Western Eu- rope, while others crossed Tran- sylvania to reach the territory of modern Ukraine. In Europe, the earliest Neo- lithic cultures emerged in Thes- saly, a region in eastern Greece, 5 6 from the late 8th to 7th century BC. 7 The wild ancestors of domesti- cated animals (sheep and goat) and cultivated plants (wheat, bar- ley, lentil and pea) can still be found in the Near East, which points to the origins of the Neo- lithic culture of the Balkans. The settlers’ material culture and Near 8 Eastern (Armenoid) anthropologi- 10 cal type provide further evidence 9 of their origins. In the late 7th century BC, early farmers reached the northern boundary of the Balkan Peninsula, giving rise to the Criş culture that represented a large Mid-Danube Neolithic community. Its mem- bers advanced far to the east to the basins of the Prut, the middle Dniester and the Southern Buh. These influences shaped Ukraine’s earliest Neolithic culture, known as the ‘Buh-Dniester culture’, Trypillian ing hunters. However, due to the gether with words of Near Eastern around 5700 BC. culture. intensive use of bows and arrows origin. A new stage in the Neolithic Clay figurines in hunting, the numbers of forest The border between the two colonization of Europe began in (1, 3 and 4), ungulates (aurochs, elk, deer, roe cultures also cut across Ukraine. the mid-6th bull’s head and wild boars) declined sharply. Hunting and fishing would pre- century BC when early made of farmers advanced from the middle bone (2) and A crisis of the hunting economy dominate in Polissia and Eastern Danube to the north of the Alps earthenware forced European hunters to first Ukraine for a long time to come, and the Carpathian Mountains. (5-10) adopt earthenware from Neo- while Right-Bank Ukraine, which The Criş culture gave rise to the lithic colonists and then learn was close to the Danube region, Linear Pottery culture in what is farming and cattle-breeding quickly adopted hoe agriculture now Hungary. Its members skills. and cattle breeding. quickly spread westwards to the Thus, two parallel ancient The conversion of Ukraine, Paris Basin and eastwards to worlds took shape in Europe much like Central Europe, to pro- southern Poland, Volhynia, the around the 5th century BC. Eu- duction-based Neolithic culture Dniester region and Moldova. Col- rope’s southern part was inhab- took place under influences that onization of the forested area of ited by Neolithic farmers and cat- originated in the Balkan Peninsula Central Europe was made possible tle-breeders from the Near East. and filtered through the Danube by the implementation of the The forests in the north continued region. From the 7th to 5th centu- slash-and-burn agricultural tech- to be populated by hunters and ries BC, four powerful waves of nique. fishers. These were distant de- migrants came from the Danube The agricultural colonization scendants of near-glacial commu- region: the Grebenyky culture of Europe stopped at the south- nities that hunted mammoths, bi- (Odesa region) and the Neolithic ern frontier of the Middle Euro- son and moose, and ancestors of Criş, Linear Pottery and Cucuteni- pean Plain: the North German As a result of the the contemporary European peo- Trypillian cultures. The arrival of Neolithic Revolution, lowlands, the Polish Plain and the population ple. The skills of production agri- Cucuteni-Trypillian farmers who Polissia. Abounding in sands, of the Earth has culture were disseminated settled in the forest-steppe zone clays and marshes left behind by increased through the forest belt much later between the middle Dniester and a glacier and overgrown with im- 1,000-fold in than in the Balkan Peninsula and the southern part of the Kyiv re- penetrable forests, this territory the past the Danube region. Neolithic in- gion in the late 6th century BC re- was not attractive to farmers. 5,000- novations were borrowed by the sulted in the final triumph of the This is why it remained home to indigenous forest population from production economy in Right- Europe’s aboriginal forest-dwell- 7,000 years their southern neighbours to- Bank Ukraine. 28|the ukrainian week|№ 12 (54) July 2013 Neolithic Revolution|history Who were the Dobrovody, etc.) with up to 3,000 kan Neolithic culture exhibits a Trypillians? inhabitants and the area of 200- powerful Hattic-Hurrian influ- More than 100 years ago, Vicenty 400 hectares did not have urban ence. The Neolithic cultures of the Khvoika conducted excavations structure. In other words, these Danube region and Right-Bank near the village of Trypillia in the were large rural-type settlements, Ukraine have distinct parallels to Kyiv region, thus initiating the not cities. A Trypillian state and a Asia Minor, according to archaeo- study of this significant phenom- Trypillian writing system are top- logical, anthropological and paleo- enon in Ukraine. However, con- ics that have not been raised even linguistic data. trary to popular belief, Khvoika Not the by the boldest researchers. The genetic connection be- was not the first to discover this ancestors of Proto-cities and an elaborate tween the Balkan Neolithic cul- ancient culture. Even before he Ukrainians. The system of signs suggest that the ture—and through it the Cucuteni- made his finds, the same culture Mediterranean Trypillian culture can be viewed as Trypillian culture—with the South “Armenoid” a proto-civilization that was was known to Polish and Roma- appearance of Anatolian (pre-Hattic) centre of nian archaeologists as the the Trypillians emerging concurrently with the Neolithization suggests that, eth- ‘Painted Ceramics’ culture and based on their earliest states in the Near East. nolinguistically, the earliest farm- the ‘Cucuteni’ culture, respec- clay figurines However, the Trypillians ulti- ers in the Balkan Peninsula, the tively. mately failed to cross this thresh- lower Danube and Right-Bank The culture took shape in old because of deficiencies in their Ukraine were most likely related present-day Romania and Mol- economy and natural calamities to the pre-Hatti people. This is dova on the basis of several cul- that befell them in the late 4th cen- also true of the Trypillian culture tural expressions of the Balkan- tury BC. in Right-Bank Ukraine as the Danube Neolithic era. Moving The Trypillians were able to northeasternmost manifestation eastwards, the carriers of the Cu- complete agricultural coloniza- of the Balkan Neolithic proto-civi- cuteni culture crossed the Dnies- tion of the forest-steppe zone in lization. ter in the late 6th millennium BC Right-Bank Ukraine stretching Therefore, the Neolithization and reached the Dnieper at a point from the Prut to the Dniester ow- of Ukraine took place under influ- between Kyiv and Cherkasy ing to a warm humid climate in ences coming from the Balkan- around the middle of the 4th cen- the 6th to the 5th centuries BC. The Danube region in the 6th to 5th cen- tury BC. extensive system of hoe agricul- turies BC and followed a typical The economy of the Cucuteni- ture caused black-soil depletion Central European scenario. Early Trypillia culture in the territories in Right-Bank Ukraine, and the farmers (including Trypillians) of modern-day Romania, Moldova economic potential of the region came to Right-Bank Ukraine from and Right-Bank Ukraine revolved Trypillian was exhausted. The increasingly the Danube Region. Through the figurine around growing wheat, barley and of a woman dry climate and the advancing Balkans and the Danube, they had peas and breeding cattle, goats, steppe delivered the final blow to a genetic connection to the earliest sheep and pigs. When land was the Trypillian agricultural econ- centres of the Neolithic Revolu- depleted, the Trypillians moved omy, causing it to disintegrate tion in the Near East, particularly eastward, gradually colonizing all around 3,000 BC. southern Anatolia. Their entire chernozem (black soil) lands from cultural and economic complex the Carpathians to the Dnieper was essentially Near Eastern in that were suitable to their farming The Neolithic cultures nature. The northern neighbours system. of the Balkan Peninsula, of the Trypillians were the indige- Trypillian rectangular wattle nous hunters and fishers of Polis- and daub homes are a typical ex- the low Danube and Right- sia and the Dnieper region who ample of the Balkan tradition of Bank Ukraine have distinct borrowed Neolithic innovations house construction. Numerous from their southern neighbours clay vessels and figurines of parallels to Asia Minor 1,000-2,000 years later. women that have been found in The advance of the steppes Trypillian settlements are also The “nationality” and their drier climate led to the convincing proof of the Balkan or- of the Trypillians collapse of the Trypillian culture igins of this culture. The Mediter- Some scientific data, primarily and the spread of free-range ani- ranean anthropological type of the from archaeological sources, per- mal husbandry in the late 4th cen- The Trypillians were rd Trypillians provides further evi- not directly involved mits genetic attribution of the Bal- tury BC. In the 3 century BC, for- dence. It has been reconstructed in the genesis of the kan Neolithic era (including its mer Trypillian lands in Right- based on rare skeletal remains of Ukrainian people Ukrainian form, the Trypillian Bank Ukraine came to be popu- Trypillians themselves and culture) to specific ethnic commu- lated by the earliest cattle-breed- through anthropological studies of nities in the Near East. The pri- ers of the ‘Yamna’ and ‘Corded Neolithic burial places in the Bal- mary suspects are the Hatti from Ware’ cultures which are believed kan Peninsula and the Danube re- The Trypillians Southern Anatolia and the Hurri- to be ancestors of the Baltic and ultimately failed to gion. cross the ans, a related people that lived in Slavic people. In this way, the con- Trypillian agriculture reached civilizational the upper Tigris and Euphrates. nection of the Trypillians with the a peak and was on the verge of be- threshold because of Because the Neolithic colonization subsequent generations that in- deficiencies in their coming a civilization complete economy and natural of the Balkan Peninsula and the habited the territory of present- with cities, a writing system and a calamities that befell Danube region began precisely day Ukraine was severed, which them in the late state, but ultimately failed to de- th from Anatolia, which was home to rules out their direct involvement velop these aspects. Huge settle- 4 the Hatti and partly to the Hurri- in the genesis of the Ukrainian ments (Maidanetske, Talianky, century BC ans, it is no surprise that the Bal- people. № 12 (54) July 2013|the ukrainian week|29 Culture & Arts|Photography photo: andriy l omakin photo: Nude Interpretation Photographer Roman Pyatkovka talks about conservative Kyiv, the balance of social and personal in his work and the new wave of contemporary Ukrainian photography Interviewer: his spring Roman Pyatkovka But it’s not the same as pornography, Mykhailov, the most respected Bohdan won the prestigious 2013 Sony which is an applied thing. A lot of Ukrainian photographer, one of the Butkevych World Photography Award for people really need it for understand- top ten artists in the world and my TConceptual Photography. His able purposes. It should definitely be teacher, who created this concept. photographs are in the collections of legalized yet put into a strict legal We started working in the USSR several top galleries and museums in framework. But I personally am not where we had no quality photo mate- Europe, Russia and the US. He is also interested in photography that will rials or equipment. The only avail- a coordinator for the Ukrainian Pho- only evoke sexual drive. able “Svema” brand film and paper tographic Alternative (UPHA) union. were terrible. Then we decided to Pytakovka chose to utilize the nude I like to take photographs in make the most of our problems, so body as his artistic medium without Ukraine specifically because we started to make images of poor trying to shock the public or be scan- our people are more beautiful, quality intentionally. For instance, dalous. Sometimes dubbed the emotionally expressive and ar- we did not rinse the film or colour the “Tinto Brass of photography”, the tistic than Europeans. Of course, images well, did the toning wrong, artist uses nude images as a prism I don’t like working with professional and even worked with expired mate- through which he interprets the models because they follow the cli- rials. The resulting brutality of the world, human relations and social chés of their profession, plus they images became one of aspects that problems, while accurately sensing have glamour. I am interested in av- defines contemporary art in the the line between art and profanity. erage real women and men in realis- whole world today. tic interiors, real situations where we I investigate the collective live our real lives. This is nude social There is no reason for the Ukrainian and global body. By photography for me. word “situational” to have the this I mean relations within the social negative connotation it now environment from this perspective. The Kharkiv school of pho- has. This may sound very cliché but Therefore, I can guarantee you that I tography where I come from understanding a trend or, to be more won’t show my photographs to any- transformed the poor quality of specific, a context is fairly important one if they only evoke physical desire. photographs into an aesthetic for an artist. Every new day brings Of course, my art is based on libido. category. In fact, it was Borys changes into art. If an artist does not 30|the ukrainian week|№ 12 (54) July 2013 Photography|Culture & Arts see and follow them, and doesn’t zation are virtually exhibited in su- BIO these two poles, and it creates a per- know what is exhibited in the world permarkets and library corridors. Roman Pyat- fect environment for the new and fu- art galleries and sold at auctions, he kovka is a Ukrai- turistic in all branches of art. nian photogra- risks crawling into his own shell. There is barely any photo pher, curator and Treating the situational as business, infrastructure in Ukraine: gal- tutor. Born in KNOCKDOWN SUCCESS i.e. when you produce crap but pres- leries selling photographs, col- Kharkiv, he grad- An artist should strike the ent it as art because you know what is lectors, and very few photogra- uated from the viewer metaphorically, make “in”, is a whole different matter. Cre- phy festivals. Fortunately, a new Kharkiv Polytech- him stop, surprise and shock ating art with the thought “will it generation of 30-something art deal- nic Institute. Be- him. Only then will there be a work?” is unacceptable. Indeed, it ers is emerging. I am now willing to fore taking on chance that the viewer will start does work sometimes, even earns sell my works as inexpensively as photography, he thinking, looking and deciphering a you a penny, but it will still be cheap possible just to give those young peo- worked as a the- certain system of signs the artist laid and crappy. The biggest mistake is to ple a chance to develop and sell my atre director. in his work. My older colleagues Pyatkovka is a co- try to make things like everyone else. art here, in our homeland. We have ordinator of the taught me that. That’s why my erotic An artist should let everything to eliminate this terrible stereotype of annual Ukrainian images are social if intimate because through his or her own perception. I a true artist who is drunk all the time Photography in they are an attempt to study human normally do six or seven projects a and completely unknown. Luckily, France project behaviour in society. year but show only half in public be- Ukrainian artists are finally getting and the Ukrai- cause I feel that the rest didn’t come opportunities to live on what they nian Photo- Artists have no formula for out right, so it makes no sense to create and sell. graphic Alterna- success. Art is not maths – there is show them. tive union. His ar- no such thing as a+b+c=perfect. Ev- The financial crisis created tistic biography erything is very subjective and objec- I’m crossed out of the Sony the impulse for a new wave of includes over 100 tive at the same time in art. The time personal and Awards winners list in Russia. art photography in the world group shows in and place where the work was cre- This is because an old photograph I and in Ukraine. I remember how Ukraine and ated and the location where it is ex- made of a woman with a bag on her photography was in stagnation in the abroad, participa- hibited are very important. An artist head that resembles a balaclava the very lucrative mid-2000s. It must tion in Les Ren- cannot live without sensing a coun- Pussy Riot girls wore. It was used in have been some sort of a counter contres d’Arles, try in him. The work of a contempo- my Soviet Photos series that won the force, but it brought forth the tal- the oldest inter- rary artist should contain the right award. The series is a compilation of ented generation of young Ukrainian national photog- balance of social and personal. It’s agitprop images from the Soviet artists during the five years that fol- raphy festival in very important because one’s opin- Photo magazine published in the lowed the crisis, and this new genera- the world; ion and world matter in the context USSR from 1926 through 1992, and tion is now winning its place under FotoFest, an in- of a specific social problem because ternational pho- my own underground photographs the sun. Earlier, the notion of con- tography festival that is how the general and personal of that time which could easily send temporary art was only associated in Houston, USA; perception of a phenomenon is one to jail back then. In fact, I was with painting here. And even if many the International shaped. Boring artists who focus on summoned to the KGB a few times like whining that “there is nothing to Photo Biennale the social only act as propaganda. for them. Moreover, it’s the witch do here, we should flee asap,” I’m in Rotterdam, Digging into oneself is equally unin- hunters that run the show in Russia very optimistic about the future of Netherlands, and teresting. today. For them, any naked body is a Ukrainian photography. more. taboo. Overall, the Russians often The archive is a dominating find it very hard to admit that Ukrai- The periphery often gener- trend in contemporary photog- nians are not worse than they are and ates art waves that are much raphy. I don’t mean rolls of film that can be just as great as their photogra- more interesting than the capi- are 50 years old or dusty cards with phers. Still, I love Russian photogra- tal does. I saw many extremely names, but searching for one’s place phy and amazing Russian photogra- good works from Donetsk, Luhansk, in the past and understanding one’s phers. my hometown Kharkiv, Lviv etc., as a future through this. reviewer at the latest Kyiv Portfolio There are three pillars on which THE FUTURE OF UKRAINIAN (an annual photography fair where an artist’s work should be based. The PHOTOGRAPHY photo experts are invited to assess first is ideology, intellectual content. I think Ukrainians should first the works of their younger colleagues The second is a new or at least an in- of all switch from the usual ask- – Ed.). Kyiv tends to be much more dividually revised form of creativity ing to offering. Offering will bring conservative than the Donbas in and the extent to which it fits into the them more benefits. Therefore, my many aspects. In the Donbas, there general context, i.e. the extent to generation should help young Ukrai- will most often be just one interesting which the contemporary audience re- nian art just like the giants of the photographer in a distinctly hostile sponds to one’s artwork. The third Kharkiv school once helped me. We environment and it’s very hard for pillar flows out of the second one – it have only 80 people at the Ukrainian him. But he will do things that no- s erie , 2012 P hoto From the Soviet is the visual joy of the work for the Photographic Alternative now. Most body in the capital could think of. PLAYING WITH artist primarily, and then the audi- of them are the talented youth. I can’t CONTRASTS: ence. After all, a nail stuck into the say that they are an alternative to the Kharkiv is a city of tension Roman wall, no matter how important in the Pyatkovka made Soviet-type Union of Photo Artists where you can’t relax. On the one a compilation context of a given moment, is not but you can’t be an alternative to a hand, it has a massive creative class of Soviet something a viewer can enjoy aes- half-decomposed corpse. Interest- of students and artistic youth. On the agitprop photos thetically as a beautiful thing. Visual ingly, I was one of the founders there, other hand, it has an equally massive and his own pleasure is a very important compo- but things have changed over time conservative class of real proletariat. underground nent of art to me, although many art- and now the members of that organi- There is constant tension between images ists ignore it. № 12 (54) July 2013|the ukrainian week|31 Culture & Arts|opinion The Legacy of George Orwell

n June 25, 2013, George Orwell (1903–1950) critical adoration of Russia, even failing to notice Rus- would turn 110. He appears to have been the sian imperialism and colonialism. real prophet of totalitarianism, and far and G. K. Chesterton’s love for Italy and France led him so Oaway the most insightful writer in the West to far as to fail to notice the emergence of Mussolini and get the very essence of the tragedy of Eastern Europe. Italian fascism, whereas H. G. Wells was blinded by With sound reason, then, the Russian poet, translator, Russia to such an extent that he refused to see the and dissident Natalya Gorbanevskaya called George Or- crimes of Lenin and Stalin. That our propensity to fool well an honorary citizen of Eastern Europe. and deceive ourselves is nearly limitless was closely ob- A left-winger who was bound to examine his political served with wit by a perceptive British journalist and views with his own life, Orwell was a maverick and dis- writer who easily surpassed all British and European senter among those who were inclined to think about thinkers put together in his ability to foresee the tragedy themselves as mavericks and dissenters by vocation. of Europe. Orwell’s critical essays appear to have been Fiercely attacked by his fellow leftists in Great Britain as even more original and groundbreaking than his famous a traitor or, at best, as a fellow traveler, Orwell avoided satires and dystopias. ideological blindness and selective sensitivity so wide- Animal Farm has been widely celebrated in the world spread among his brothers-in-arms. Like Ignazio Silone, without paying much attention to the fact that it was the described by Czeslaw Milosz as one of the most decent Ukrainian writer Nikolai (Mykola) Kostomarov (1817– political figures in Europe, Orwell held humanity prior 1885) who preceded and anticipated Orwell’s vision be- and superior to the doctrine, and not the other way coming the first writer who depicted the future Russian around. revolution in the form of the allegory about the rebellion A passionate collision took place between Orwell and of animals against their masters. We would never know the left of Great Britain over the roots of a supposedly if Orwell knew Kostomarov’s fable, but we do know that Author: bourgeois and reactionary concept. Deracination was he was perfectly aware of the Holodomor as well as the Leonidas always favoured by the left as a sign of personal liberty tragedy of Ukraine, since he wrote the Preface for the Donskis and dignity, yet Orwell Ukrainian Reader in the tried to reconcile natural He was the real prophet Ukrainian edition of his patriotic feelings with celebrated social and po- other modern sensibili- of totalitarianism and litical satire. ties, first and foremost the most insightful writer Neither was his master- with individual freedom, piece 1984 terribly origi- dignity, equality, and fel- in the West to get the very nal. Orwell owed much to lowship. He believed that essence of the tragedy Yevgeny Zamyatin whose our existential need for novel We (1923) served as the roots and home, if ne- of Eastern Europe a great source of inspira- glected or, worse, de- tion not only for his 1984 spised, may make an awkward comeback in the but for Aldous Huxley’s Brave New World as well. form of symbolic compensation, such as a fierce Yet whereas there is not a single mention and word attachment to the doctrine or ideology that be- of credit to Zamyatin in Huxley’s work, Orwell ac- comes our symbolic home. Our homelessness calls for knowledged the genius of Zamyatin in the review he compensation which comes in the form of ideological wrote for the British edition of We (incidentally, it saw substitutes. As Karl Marx would have had it himself, a the light of the day after a good deal of delay, compared genuine proletarian does not have home, for his home to the American edition which came out much earlier). is socialism. The point was that Orwell received from Pyotr Struve In his essay Notes on Nationalism, Orwell drew a strict the manuscript of Zamyatin’s We in French. At that dividing line between patriotism, which he understood time, Struve, having escaped from the Bolshevik terror, as identification with a way of life and all earthly forms lived in Paris. The author of Down and Out in Paris and of human attachment, and nationalism, which appeared London spoke French, and it took little if any effort to to him as a belief that one’s group is superior and better fully appreciate the superb literary quality of We. In all than other groups. What results from such a divide, ac- likelihood, 1984 has become a variation on all major cording to Orwell, is a carefully disguised propensity to themes developed in We with the stroke of genius. classify human individuals as if they were communities However influenced by Zamyatin, George Orwell, much of bees or ants. For him, patriotism is silent and defen- to his credit, was quite profound in making his nuances sive, nationalism is offensive and aggressive. of thought, such as petty attachment of Winston Smith Far from several major forms of radical forms of nation- to little favourite things – a seemingly bourgeois weak- alism and ideological zeal and fervour in general, na- ness for which he was severely criticized by Raymond tionalism may come in many faces. According to Orwell, Williams and other critics. His keen observations have the transferred or transposed forms of nationalism sig- become history, such as his somber vision of the death nify our willingness to find an object of worship which of privacy, the colonization of human sexuality, and infi- may vary from time to time. A pious Zionist may be- nite control over us through the tyranny of TV screen. come an ardent Marxist, or the other way around, while For this, Orwell will long be remembered as a true it takes little effort to move from left-wing views to un- prophet of our present condition. 32|the ukrainian week|№ 12 (54) July 2013

Navigator|Festival Summer 2013 Festival Season

ArtPole (ArtField) July 10–14, Unizh, Ivano-Frankivsk Oblast Every year, this festival becomes ever more compact, cosy and home-like. It always offers sur- prises with its lineup, which rarely coincides with other festivals. ArtPole is a small event, but none- theless, it is one of the most vivid ones in Ukraine. This year, there will be some very interesting pre- sentations beyond the actual festival grounds – on the closing day, elderly ladies from Drevo (see photo) will be singing in the field above the village. The organizers plan to engage the residents of ore festivals ore festivals Unizh in the festivities. There will also be a water- stage at ArtPole, so part of the music will resound directly from the River Dnister. There will be a stage m for for the most hardy of listeners – a night-time pub- lic- stage with DJ sets and open jam sessions. At the fourth experimental stage stories will begin at mid- night. In spite of the rapid rotation in the lineup at each festival, the irreplaceable headliner is always the Ivano-Frankivsk orchestra of joy and luck, Perka- laba. The programme also includes performances by Yoriy Klots, Hych Orchestra (Ukraine), Fantazio (France), Evolution Dejavu (the Czech Republic), En-

go to ukrainianweek.co go to chanted Hunters (Poland) and Napra (Hungary).

Bazant Pohoda July 11–13, Trencin, Slovakia

This is even closer to the Ukrainian border than the Hun- garian Sziget festival. It is the biggest Slovakian music open air festival, which first and foremost, always stood out with a great selection of performers. Bazant Pohoda is more than just a festival. It’s a meeting place for artists from around the world: musicians, artists, writers and performers. They in- clude Australian Nick Cave (see photo), Atoms For Peace (USA), The Smashing Pumpkins (USA), Bonobo (UK), Kate Nash (UK), Midi Lidi (the Czech Republic).

The Best City July 12–14, Novoselytsia Recreational Park, Novomoskovsk County, Dnipropetrovsk Oblast

The festival will feature some of the top Ukrainian bands - VV, Kozak System, TNMK and Motor’rolla, and Russian rock bands, such as Leningrad, Spleen, Dolphin, Mumiy Troll and Bi-2 – alongside international headliners, including Scorpions, Hurts (see photo), Guano Apes, Enter Shikari and La- cuna Coil. The festival also has a competi- tion for young musicians, in which anyone who has registered for the event on-line, can enter.

34|the ukrainian week|№ 12 (54) July 2013 Festival Summer|Navigator Zakhid August 18-19, Rodatychi, Lviv Oblast

This is the biggest festival in Western Ukraine in terms of audience and sections. Its music part ranges from traditional light to hard rock. This year, however, the list of performers includes Rocky Leon, inspired by Bob Marley who hardly fits into the usual nature of the music at this festi- val. Other bands playing at Zakhid this year in- clude the Russian Noize MC, Moldovan Zdob Si Zdub (see photo) and Belarussian Liapis Trubets- koy, the latter being perhaps the most popular and eagerly awaited guest in the lineup of any festival in Ukraine. And, of course, the pro- gramme will feature top Ukrainian bands, such as Boombox, VV, Skriabin, O. Torvald, Khrykhitka, Rolliks, SunSay and The Vyo.

Tauron Nova Muzyka August 22-25, Katowice, Poland

As always, the programme offers a great selection of world music, from to experimental electronic music. In previous years, the festival invited top performers, such as Autechre, Fe- ver Bay, Bonobo and Flying Lotus. According to the European Festival Awards, Tauron Nova Muzyka was the best small festi- val in Europe in 2010. This year, the audience will hear Mod- erat from Germany, Jon Hopkins from the UK, Za! from Spain, Jets from the US, Coma from Poland, MMOTHS from Ireland and many more.

Koktebel Jazz Festival, September12-15, , Crimea Running ahead a little, we are listing the festival that traditionally takes place when Indian summer kicks off in Ukraine. For many years now, the Koktebel Jazz Festival has not been the purely jazz festival that it ini- tially was. However, the lineup continues to excite the audience every time, on major and smaller stages. It is still too early to talk about the programme, but we al- ready know that the 2013 Koktebel Festival will feature Nils Petter Molvaer from Norway, the Erik Truffaz Quar- tet from Switzerland and France, Bonobo from the UK, Telepopmusic Live from France as well as the Ukrainian Pianoboy and The Hardkiss.

Respublika September 13-15, Kamianets-Podilskyi, Khmelnytskyi Oblast

The biggest contribution of this festival is the upgrade and promotion of this old Ukrainian town with its beautiful medieval fortress overlooking a vast and calm river. Traditionally, the festi- val invites graffiti artists from all over the world to turn several typical grey Soviet apartment blocks into works of contemporary art. Needless to say, it will also involve a lot of music. This year, headliners include Serhiy Babkin (see photo), Skai, Tartak, Kozh- anyi Olen, Vivienne Mort and many other popular bands. Con- certs are held within the old fortress. So if you haven’t been there yet, make sure you visit this festival and one of the most beautiful and serene towns in Ukraine.

№ 12 (54) July 2013|the ukrainian week|35 B OOKST ORES KYIV 3, vul. Lysenka tel: (044) 235-88-54; 5,vul. Spaska tel: (044) 351-13-38, 33/2, Povitroflotskiy Prospekt tel: (044) 275-67-42 LVIV 7, Prospekt Svobody tel: (032) 235-73-68 VINNYTSIA 89, Soborna tel: (0432) 52-9341 TERNOPIL 7-9, vul. Valova tel: (0352) 25-4459 KHARKIV 3, vul. Sumska tel: (057) 731-5949 IVANO-FRANKIVSK 31, vul. Nezalezhnosti tel: (0342) 72-2502 VOLODYMYR-VOLYNSKIY 6, vul. Kovelska tel: (03342) 2-1957 www.book-ye.com.ua

ONLINE BOOKSHOP WWW.BOOK-YE.COM.UA/SHOP