MERGERS & ACQUISITIONS IN THE UKRAINIAN IN PURSUIT OF THE PRESIDENCY: TOP FESTIVALS NOT TO MISS IN UKRAINE MASS MEDIA SINCE 2010 INTERVIEW WITH VITALIY KLITSCHKO AND EASTERN EUROPE THIS SUmmER № 12 (54) JULE 2013 WWW.UKRAINIANWEEK.COM Featuring selected content from The Economist FOR FREE DISTRIBUTION 22 | 07 | 2013 (Monday) 10:00 Great Conference Hall, National Academy of Sciences of Ukraine 55 vul. Volodymyrska, Kyiv 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 leure 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 inveed 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 Diribution 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 Statiics Committee personal in his work and the new wave of Source: NBU contemporary Ukrainian photography Banking indury 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 Indury risk hottest festivals in Ukraine 3 and Eastern 5Europe this 5 7 7 7 10 9 8 summer Brazil, South Africa China Іndia Ukraine Kazakha34 n Russia Belarus Uzbekian 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 Crimea 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.