The Ukrainian Week

The US Senate passes page Open letter: The Ukrainian Week page Despite low support, page a resolution against is facing pressure after Yanukovych wants a majority top Ukrainian officials 4 the World Newspaper Congress 19 in the new parliament 20

№ 16 (39) October 2012 Autumn blitzkrieg against the last free media underway

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www.ukrainianweek.com for free distribution Featuring selected content from The Economist 2|the ukrainian week|№ 14 (37) September 2012 THE US SENATE PASSES PAGE OPEN LETTER: THE UKRAINIAN WEEK PAGE DESPITE LOW SUPPORT, PAGE A RESOLUTION AGAINST IS FACING PRESSURE AFTER YANUKOVYCH WANTS A MAJORITY TOP UKRAINIAN OFFICIALS 4 THE WORLD NEWSPAPER CONGRESS 19 IN THE NEW PARLIAMENT 20

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01_FACE.indd 1 26.09.2012 18:25:58 |contents briefing focus From Isolation to Disgracing a Sleeping Beauty Sanctions? Why Country: and Bread Crumbs: some representatives The government The lack of an of the government fails to used the effective media could face personal foreign media to market deprives sanctions in addition to improve its image Ukrainians of the international isolation 4 in the world 6 Fourth Power 10 Politics Ukraine’s Last Open Letter: The Ukrainian Minority Rule: Independent Week reports harassment Viktor Yanukovych is Magazines are after the World Newspaper preparing for a constitutional under Threat Congress in Kyiv majority in the new parliament despite low support 16 19 20

Powers of Persuasion: Voting Wrong? Thorbjørn Jagland: The Party of Regions Yuriy Makarov on “the Trial against is exploiting every why Ukrainians Tymoshenko possible financial and choose inefficient should not have administrative resource leaders over and been initiated at of the government for its over again all” election campaign 24 28 29 ECONOMICS Neighbours Why is Ukraine Brand New: Jerzy Buzek: “The a Cade for Emerging- most convenient way Entrepreneurs? market for Ukraine to resist The challenge of companies are Russian influence doing business trying to build would be to sign in Ukraine global brands the Association 30 34 Agreement” 36

Andreas Gross: Brussels against Leonidas “Ukraine Gazprom: Can the Donskis on needs another European Commission criminals in democratic win the conflict regarding politics revolution” Gazprom’s monopoly prices on Central 38 European markets? 40 43 SECURITY INVESTIGATION Society World Without Bird Rebellion: A Planetary Megalopolis: Leadership: Berkut fighters Blair Ruble on how cities Ian Bremmer on protest against adjust to global climate why the global corruption change and the new structure is within the economic environment becoming less special service manageable 44 46 48 history culture & arts navigator Urbanization He who became a Thrill Seekers According to Plan: Strongman: A new Find Adventure in The source of the film about Ivan Firtsak, Ukrainian Cities: modern look of a Ukrainian who was Extreme city tours Ukrainian cities recognized as the reveal a different strongest man in the Kyiv 50 world in 1928 54 56

The Ukrainian Week № 16 (39) October 2012 Mailing address: PO Box 2, Kyiv, 03067 Founder: ECEM Media Ukraine LLC Publisher: The Ukrainian Week LLC Publisher address: vul. Mashynobudivna 37, Kyiv 03067 Ukraine First published in January 2010 E-mail: [email protected], Tel.: (044) 351-1300 State registration certificate 16412-4884P of March 13, 2010 www.ukrainianweek.com Bohdan Andriytsev, Director, ECEM Media Ukraine LLC Print: The Novy Druk, LLC, 1 Mahnitohorska Str. Serhiy Lytvynenko, Editor-in-Chief, The Ukrainian Week Ordering number: 12-6211. Print run: 15,000 Natalia Romanec, Shaun Williams, Editors; Sent to print on 27 September 2012 Anna Korbut, Translator Free distribution № 16 (39) october 2012|the ukrainian week|3 briefing| 16 September 20 September 21 September The law banning the The Ukrainian The International advertising of tobacco Stock Exchange Memorial for Victims comes into effect in suspends trade of Totalitarianism is Ukraine in protest opened near Kyiv against the law on depository record keeping From Isolation to Sanctions?

he events of the last week are evi- (although according to our information, dence of the increasing likelihood a meeting is planned with the Secretary of personal sanctions being im- General of the UN, Ban Ki-Moon).” Tposed against of the representa- These are the means by which the im- tives of the current government. pression is created of the remarkable in- The fourth Ukrainian President has ternational activity of Mr. Yanukovych already become a person not to shake “as a regular” occurrence, his ability “to hands with (or not even to greet from a resolve issues” with the heads of leading distance) for a number of Western politi- countries and international organisa- cians. Those who continue to communi- tions. “What isolation can you be talking cate with the Ukrainian leader generally about ” — is the question for which the do so because of official necessity, but mass reader is programmed. keep it to a minimum. Against such a However, the reality is something background, the efforts of the Ukrainian completely different. Immediately prior Ministry of Foreign Affairs and govern- to the visit, the US Senate approved a ment-controlled media resources to resolution — more harsh than the docu- deny obvious facts and search for all ments of this kind issued by European possible pretexts to argue “the absence institutions (PACE and the European of isolation” of the current guarantor, Parliament). The resolution condemns Mr. Yanukovych, appear somewhat the “politically motivated persecution comic. In this sense, Yanukovych’s last and imprisonment” of Tymoshenko; visit to the 67th session of the General warns that “the continued detention of Assembly of the United Nations in New Tymoshenko threatens to jeopardize ties York was quite revealing. between the United States and Ukraine” For example, one of the main mouth- and calls on the State Department to im- pieces of the current government, Rinat pose sanctions, initially in the form of a Akhmetov’s Segodnia daily newspaper ban on issuing visas to “those responsi- announced it as follows: “This is the ble for the imprisonment and illegal The desperate attempts of the Ukrai- third time that the President is partici- treatment of Tymoshenko and more nian Ministry of Foreign Affairs to con- pating in the main UN forum, but over- than a dozen political leaders, connected vince us that the Resolution was suppos- all, this is his fifth visit to the USA as the to the Orange Revolution of 2004”. This edly merely approved due to a question- head of state.... Although visits to the is the first instance of the approval of able procedure emphasize even more the USA are not a rarity for Mr. Yanukovych, such a document by a legislative body of desperate corner into which the Yanu- this one is of great significance. How- a specific country, which has not yet kovych regime has painted itself. It is ever it is true that the issue at hand is happened in Europe. The Resolution well-known that such expectations were the possibility to have one-on-one talks was approved after the former Secretary also expressed to the last, as regards on political and economic issues with of State, Condoleezza Rice, demonstra- Angela Merkel on the eve of the EURO the leadership of the USA and the IMF, tively ignored Viktor Yanukovych during -2012, however, the issue ended with the rather than the General Assembly itself the recent YES meeting in Yalta. German side switching from ever more

HISTORICAL 23 September 1872 28 September 1939 29 September 1845 DATES Solomia Krushel- The USSR and Germany Ivan Karpenko-Karyi, nytska, one of the sign the Treaty of Friend- a prominent Ukrai- best Ukrainian so- ship, Cooperation and De- nian playwright, is prano opera singers, marcation, dividing Poland born is born into occupation zones

4|the ukrainian week|№ 16 (39) october 2012 |briefing 22 September 23 September 24 September 26 September The Central Elec- The parliamen- Yuriy Siomin is An unknown man tion Commission tary election in replaced by Oleh shoots three security makes the deci- Belarus is boy- Blokhin as head coach guards at the Kara- sion to restrict cotted by the of Dynamo Football van shopping mall in the migration opposition and Club Kyiv in the middle of of voters to one not recognized the day constituency by the West

At least business in Ukraine is already aware of the serious implications of the continued worsening of relations with its Western partners if the Ukrai- nian government fails to change its stand, or if there is no change of the government itself. More specifically, Bradley Wells, an analyst at Concorde Capital investment company recently stated that he does not believe that the Ukrainian government will react duly to the US Senate Resolution, since “the current functionaries are simply too os- sified”. However, if there are no changes, “both the EU and the USA will carry out their threats and apply severe sanctions against Ukrainian officials”. And this, of course, will also influence the investment climate in Ukraine, as well as the prospects for currency-financial stability. “The elections will come to an end — new, restored relations will begin with many countries of the EU and the USA ,” declared Viktor Yanukovych in New York. The West has similar expectations. The problem only lies in the fact that each of the parties has its own view of the process for the normalization of relations. For the West, a condition for the rebooting of relations is the rejection by the Yanukovych regime of the usurpa- tion of power and the marginalization of the political opposition, public organisa- tions and an independent mass media. In Ukraine it appears that the government is counting on attaining an abso- transparent hints to the frank formula- Affairs stated that “the difference be- lute (ideally a constitutional) majority in tion of the assessment of the Yanu- tween the approved document and the parliament during seemingly demo- kovych regime as a “dictatorship” and actual implementation of any restric- cratic elections and the strengthening of such, that is conducting political repres- tions on the issue of visas is so vast, its positions in relations with foreign sion. that we should just wait and see.” If partners. Thus, realistic improvements Another manifestation of the inad- this is to continue to be the reaction to in relations between Ukraine and the equacy of the Ukrainian Ministry of ever more transparent hints on the civilized world will most likely only be Foreign Affairs, was the attempt to de- part of the USA, then Ukraine can ex- possible after a change of government in valuate the significance of the Resolu- pect that closer to the New Year, the Ukraine. tion, particularly when Oleh Voloshyn, US will also resort to undisguised the Director of the Information Policy statements at all levels, following the Department of the Ministry of Foreign German example, and even sanctions. Oleksandr Kramar

1 October 1903 4 October 1890 2 October 1990 12 October 1947 Vladimir Horowitz, The Rus-Ukrainian A student hunger sive post-war de- American classical Radical Party strike, known as portation of Ukrai- pianist and composer (RURP) is estab- the Revolution nians is launched in of Ukrainian origin, is lished in Lviv as the on Granite, starts Western Ukraine born in Kyiv first political party in Kyiv of Ukraine The most mas- № 16 (39) october 2012|the ukrainian week|5 focus|attack on the freedom of speech

Disgracing a Country The Ukrainian government has tried, and failed miserably, to improve its image in the world through the foreign media

Author: kraine is moving At the time, the organisation Ukraine dropped to the 130th Oleksandr steadily forward to- completely lacked governance. It place in the Freedom House free- Mykhelson wards creating a was only in April 2011 that it dom of the press ranking due to “Udemocratic society elected its new president, Indian “increasing government control and building an independent me- Jacob Mathew, CEO of Malayalam over mass media” was pursuing dia,” Viktor Yanukovych wrote in Manorama Group. In May 2011, its vested interests that had little Phоtо: his letter to Christoph Riess, CEO he accepted Yanukovych’s offer. in common with the needs of Roman of the World Association of News- Reportedly, there was opposition Ukrainian journalists. Like Euro Malko papers and News Publishers to accepting Ukraine’s offer: some 2012, the newspaper congress (WAN-IFRA), which was pub- WAN-IFRA leaders unofficially was viewed by the government as lished by the president’s press ser- called on their colleagues to refuse a way to legitimise itself in the vice on 6 May 2011. In his mes- to go to Ukraine to protest the cur- eyes of the West, to create a posi- sage, Yanukovych invited the or- tailment of freedom of the press tive image that would neutralise ganisation to hold the 64th World by the Ukrainian government. information about a clampdown Newspaper Congress and the 19th on freedom of the press in World Editors Forum, which tra- A SEMBLANCE OF FREEDOM Ukraine before the parliamentary ditionally take place together, in It was clear even then that the election and create a semblance Kyiv. current government under which of democratic freedom. Proof of 6|the ukrainian week|№ 16 (39) october 2012 attack on the freedom of speech|focus

Disgracing a Country The Ukrainian government has tried, and failed miserably, to improve its image in the world through the foreign media Crushing the media: While the president was delivering his speech, his guards tried to rudely snatch posters from the Stop Censorship! activists

This would reaffirm Ukraine’s Akhmetov’s media holding where choice to be a country that seeks journalists once accused her of to strengthen democratic values, publishing paid-for materials fa- of which the freedom of speech vouring the government. The and press is an integral part.” general partner of the congress It is no surprise that the was Group DF, a group of compa- Ukrainian government chose to nies controlled by oligarch Dmy- build a Potemkin village in pre- tro Firtash. paring for the event. Oleksandr It was clear even before the Kurdynovych, Chief of the State congress that the Ukrainian gov- Committee for Television and Ra- ernment would try to use it to its dio Broadcasting, said that US best advantage and share its own $800,000 had been allocated view of “freedom of the press in from the state budget for the fo- Ukraine” with its foreign guest. rum and congress, a sum cover- Oleh Nalyvaiko, president of ing only 15% of costs, while the UNIAN, one of the largest Ukrai- rest was paid for by large private nian information agencies, which donors. All of these and the part- is controlled by the government, ners of the event were people symptomatically remarked: “The close to the government. For ex- congress will be attended by ample, the idea to hold the con- managers who are used to solv- gress in Kyiv came from Borys ing specific issues: increasing Lozhkin, Vice President of the print runs, earning more money, Ukrainian Association of Periodi- attracting advertisers, optimising cal Press Publishers and member costs, etc. I believe that this tone this is found in the fairly cynical of the WAN-IFRA management. will prevail, and this is exactly expectations of what the event He is also president of the UMH what Ukraine needs now. If we would yield that were published Group, a media holding known in politicise it all and start discuss- on the website of the Presidential the West – the Frankfurt Stock ing other things, we will bore the Administration: “Ukraine is mov- Exchange estimated its value at congress.” ing steadily towards creating a US $300mn in May 2008. How- “From the viewpoint of democratic society and building ever, the group has distinct Ukraine’s international image, independent media … Recently, Donetsk-Russian roots and it’s an issue of recognizing hu- transparent and efficient rules of openly seeks to monopolise man rights and civil liberties. The access to public information have Ukraine’s market of published very fact that Ukraine is hosting been introduced at the legislative mass media. The official commu- the World Newspaper Congress level, real work has begun to cre- nications partner of the event was and the World Editors Forum ate public television, the investi- the Ukrainian Media Develop- speaks volumes,” an enraptured gation of Georgiy Gongadze’s ment Institute (UMDI) headed by Kurdynovych said at a press con- murder has been conducted more Olena Hromnytska, a former ference on 14 June 2012. actively … Conducting these press secretary of ex-President Official Kyiv set about con- events in Kyiv is an important Leonid Kuchma. Prior to this ap- vincing foreign visitors of the step on Ukraine’s European path. pointment, she worked in Rinat great progress democracy has № 16 (39) october 2012|the ukrainian week|7 focus|attack on the freedom of speech critically of the situation in Ukraine. – Ed.) At this point, about two dozen Ukrainian journalists known to be active in the Stop Censorship! movement suddenly stood up and unfolded homemade posters which read “Ukraine ranks 130th in the freedom of the press rating”; “Access to public information is not working in Ukraine”; “2/3 of assaults on journalists are made by the authorities”; “Yanukovych is destroying freedom of speech in Ukraine”. And then the president’s guards reacted in a way that completely erased every effort of the Presidential Administration to SO, WHAT ARE WE DOING NEXT TIME? During Jacob Mathew's whitewash its image. Numerous speech, Yanukovych was constantly whispering something into video recordings clearly show the ear of the man who owns one of the biggest media holdings that security guards primarily in Ukraine tried to snatch the anti-presidential posters from the hands of the supposedly made in Ukraine and of published mass media in journalists. Ideally, the guards of they did so in the most typical of Ukraine. He shared an age-old any president would do the exact soviet traditions. According to maxim that honesty, enthusiasm opposite: carry any slogans you sources which spoke to The and US $10mn were needed to wish but don’t come near the Ukrainian Week, an order was launch a successful newspaper head of state. If the activists sent down from the top to create and called on both the govern- wanted to disrupt Yanukovych’s conditions in which the guests ment and the opposition to “view speech (as the Presidential Ad- would not have the opportunity the press as a business rather ministration firmly believes) to speak to “outsiders”. The pro- than a way of settling accounts.” rather than attract attention to gramme of the congress and fo- Finally, he thanked Yanukovych the problems they raised, they rum was designed to serve the were quite successful. same purpose. Official Kyiv tried to Yet, Yanukovych did not stop. Foreign delegates were ac- But what he said next was literally commodated in the luxury Inter- convince foreign visitors the following: “In history which continental Hotel, where Yanu- of the great progress spanned many centuries, various kovych’s headquarters was lo- legends were made about our cated during the last presidential of democracy in Ukraine land. Of course, if you look at the elections. On Sunday, 2 Septem- in a typical soviet style globe, there are many nice places ber 2012, a closed party was or- about which good and bad legends ganised for them nearby, on the and Firtash for organising the can be invented. But now, when territory of St. Sophia’s Cathe- event. Among more specific state- we live in the 21st century, when dral. Nonetheless, “amateur” vid- ments was a request for a “fa- we are gathered here in Kyiv, we eos reached the Internet audi- vourable” tax climate for publish- cannot but notice such beauty.” ence. The day after the official ers like himself, but he failed to Simultaneous interpreters had a opening, all the guests were indicate his addressee. nightmare of a job. taken to a “traditional Ukrainian After Jacob Mathew’s speech, Gradually, the president took dinner” in Pyrohiv. Moreover, noted TV anchorperson and grip of himself but not fully: “One people close to Yanukovych per- model Olha Freimut announced, of the obstacles to the develop- suaded him to have a personal in heavily accented English, the ment of the media space in meeting with the most influential next speaker, President Yanu- Ukraine is incorrect stereotypes delegates. That event was not an- kovych. about a lack of freedom of the nounced and took place behind “We recently celebrated the press in our country. In my opin- closed doors. 21st anniversary of our indepen- ion, this is caused by a lack of ob- dence,” he said after the welcom- jective information about the real FREEDOM OF THE PRESS ing statement. “I would like to state of affairs… Ukraine has OPERATION FAILS thank Jacob Mathew for the won- made a transition, without exag- The marathon of official speeches derful words he said about Kyiv geration, from total censorship to began with UMH Group Presi- and Ukraine in general.” (Yanu- open society.” But his gaffe close dent Lozhkin. Speaking in nice kovych’s lack of English language to the end of his speech made the Russian, he told how he, as a pa- proficiency or simply inattentive- passage an instant hit: “I urge triot of Ukraine, expected the ness again played a nasty trick on journalists to maintain a high congress and forum to give “a him, because the WAN-IFRA ethical standard, adhere to the great boost” to the development president actually spoke fairly principles of objectivity and po- 8|the ukrainian week|№ 16 (39) october 2012 litical involvement.” It is easy to sandr Popov and Anna Herman lis- guess that the last word was sup- tened hard, visibly surprised. In the posed to be disinvolvement. But meantime, Yanukovych was mostly the agitated president missed the discussing something with Lozhkin prefix. during Mathew’s speech. The efforts by the presidential The foreign participants of the administration and the “official” congress with whom The Ukrai- Ukrainian organisers came to nian Week was able to talk were naught at the end of the forum. Us- also critical of the Ukrainian gov- ing the reasoning and terminology ernment. “Today I have seen evi- of the presidential administration, dence that Ukraine also has prob- it can be said that the captains of lems with freedom of press,” Ana- the world press came to Kyiv with a bel Hernández of Mexico, the 2012 certain “bias” against the commit- laureate of the WAN-IFRA Golden ment that the Ukrainian govern- Pen of Freedom, said. She received ment has to the ideals of freedom of the prize for uncovering drug traf- the press and classical democracy. ficking affairs in her home country Speaking to Ukrainian journal- and risks being killed for her arti- ists on the first day of the congress, cles. Eighty-two journalists who 3 September, Mathew admitted that reported corruption links existing there had been calls to boycott the between drug cartels and the gov- congress and forum: “But we came ernment have been killed in Mex- to Kyiv to see everything with our ico since 2001, and 16 have gone own eyes and understand it all.” missing. Hernández believes that In his opening address the they have died, too, but the police WAN-IFRA president said straight- have not found their bodies. forwardly: he welcomes the cre- “I have been blacklisted by influ- ation of a working group on coop- ential people… Remember me as I eration with journalists in the Pres- am today,” she said from the stage idential Administration, but it in the October Palace in Kyiv. The would be nice if “journalists them- audience gave her a standing ova- selves trusted this group”. More- tion. But immediately after her ad- over, he believes that the legisla- dress, contortionist Anatoliy Za- tively fixed punishment for inter- levsky, a Cirque du Soleil artist, ference with journalism is a good came onto the stage. He was fol- thing, but it would be good if these lowed by the ManSound band and, regulations were enforced consis- finally, an ensemble of teenagers – tently rather than selectively. girls wearing in wreaths and boys in Crimes committed against media traditional loose trousers. The im- representatives must always be pression was that, despite the clear solved. Mass media outlets that are fiasco of the Freedom of the Press in uncomfortable for the government Ukraine Operation, the hosts con- are “sometimes” artificially de- tinued to dictate their own reality to prived of advertisement, he admit- the audience, trying to make them ted. But the worst thing is paid-for forget as soon as possible that jour- materials, or dzhynsa in Ukrainian, nalists are killed in the streets in the word Mathew actually used. He some countries for their honest cov- considers it to be one of the biggest erage of facts. scourges of the Ukrainian press. In any case, foreign mass me- Mathew quoted Taras dia people will go back home with Shevchenko’s line about breaking their own impression of freedom of the shackles but emphasised that, speech Ukrainian-style. Despite as a follower of Mahatma Gandhi, certain apprehension prior to the he does not support calls to sprin- event, its participants did not help kle anything (or anyone, for that legitimise the Ukrainian regime matter) with blood. But precisely and, instead, pointed out to Yanu- as a Gandhiist he is strongly in fa- kovych & Co. that the growing cur- vour of breaking chains. This sug- tailments of freedom of speech un- gests he did not fully believe what der the cover of increasingly cyni- Yanukovych wrote to WAN-IFRA cal declarations to the contrary are almost 18 months ago. unacceptable. However, official Mathew showed a stunning famil- Kyiv will likely continue to live in iarity with Ukrainian reality. Chief of its invented reality, telling voters the Presidential Administration Ser- that the government’s efforts to hiy Lovochkin, Foreign Affairs Minis- “secure freedom of speech” have ter Kostiantyn Hryshchenko, Chief of borne fruit – the foreign guests did the Kyiv City Administration Olek- come to Ukraine. focus|The Media Market in ukraine: is there one? Sleeping Beauty and Bread Crumbs In lieu of an effective media market, Ukrainians will have to realize that they are deprived of the “Fourth Power” in yet another crisis period, something that the Yanukovych and the Kremlin regimes are using to their advantage

how can this be possible? Is some- ness; Kommersant (Businessman); This is a reprint of the article pub- thing wrong with the readership? Delovaya Stolitsa (Business Capital); lished in Is. 14 (37) to give the read- Understanding the system for Vlast Deneg (The Power of Money); ers a better overview of the situation on the media market in Ukraine measuring a publication’s success in Forbes. This comes from the stereo- Ukraine clears things up. The suc- type thrust on advertisers that the cess of a printed publication has readership most capable of paying Author: Samiylo Vors nothing to do with its print run. for the magazines is the one reading Ukraine has no print run certifica- these publications, but isn’t this too t first glance, the situation in tion and every publisher reports much for a country with such a weak the Ukrainian media does numbers that are impossible to ver- business climate? not differ significantly from ify. Sometimes, there is an impres- Tabloids are underdeveloped. Athat in many developed sion that the number is picked at Their function is clearly performed country: print runs shrink, the tele- random, reflecting desire rather by equally underdeveloped publica- vision is becoming debilitated and than reality. Therefore, advertisers tions. Good quality and influential the pensive consumer is switching tend to rely on the regular sociologi- daily press is hardly present. Dis- to the net. It too has restrictions, but cal surveys of a single agency, TNS. crimination against Ukrainian-lan- apparently, the opportunity for peo- It determines market “leaders” and guage press is palpable in a country ple to express themselves does, after assesses the delusive criteria of the where two thirds of the population all, remain… careful! Things are not “popularity” of a publication speak Ukrainian. And there is an what they seem! Who said that? through selective polling in cities abnormal number of publications Doctor House, or was it one of the with a population of more than that are franchises or simply heroes in Matrix? 50,000, on the basis of which, branches of powerful foreign play- In fact, the difference between equally delusive “audience per is- ers, especially in the general reader- the media and the web is crucial, sim- sue” data is determined. Advertisers ship segment. These include Kom- ilar to that between live and fake tend to choose the top five “leaders” somolskaya Pravda v Ukrayine flowers, freedom and imitation from the TNS rating. As a result, (Komsomol Truth in Ukraine); Ar- thereof. What is currently unfolding publications relying on the agency’s guments and Facts in Ukraine; in the Ukrainian mass media sector is rating, are more concerned about Kommersant; Izvestia v Ukrayine a large-scale simulation of market, finding effective ways of spending (News in Ukraine) and others. competition, the free exchange of money on promotion, so that as This raises a reasonable suspi- ideas and social responsibility. The many Ukrainians as possible re- cion: clearly, the major players are outcome is completely satisfactory member the title of their publica- perfectly happy with the status quo? for the government because it keeps tion, than about improving their This seems to be true as the Ukrai- the existing relations in society intact. quality (content) and increasing the nian “market” is perceptibly monop- print run. Experts realize that this is olized. On the one hand, the small Quasi market flaws not the right way to do it: one issue circle of media owners allows control Huge disproportions are the first of a serious newspaper cannot be of the “market” in general, because things that catch the eye in the me- read by fifteen people – it would not it’s difficult to rid oneself of the sus- dia market: top places in the audi- survive. Even so, it is on the basis of picion of an agreement between ence coverage ratings of the print this poll that ratings are deter- them, and on the other, government media (and the chart of advertise- mined, and according to which ad- control over media owners. ment revenues respectively) go to vertisers buy space. A closer look at each individual niche glossies. The list of champions Hence, the disproportions which player reinforces the initial suspi- is a mix of daily newspapers, week- neither experienced media experts cion. UMH Group, better known in lies and monthlies. With informa- nor average consumers notice. There Ukraine as Ukrainian Media Hold- tional publications removed from is an excess of business publications ing, chaired by Borys Lozhkin is an the mix, serious newspapers and with 50-80% of business content, example of the most successful pub- magazines are beaten by tabloids – such as Kontrakty (Contracts); Busi- lisher which, from a business per- 10|the ukrainian week|№ 16 (39) october 2012 The Media Market in ukraine: is there one?|focus A typical newspaper stand: Just a few Ukrainian-language publications spective, looks perfectly transparent are barely noticeable in the sea of the Russian-language press and is listed on the Frankfurt Stock Exchange. The company has been on the market for 12 years. Its Ukrai- nian portfolio includes nearly 30 print publications and several large online projects, most of which are mentioned above. It is presented as the “No. 1 publisher on the advertising market”. UMH’s total declared print run is over 200mn copies. The holding has been present in Russia for nearly ten years and its partners include Vladimir Potanin, one of Russia’s top oligarchs. On the whole, the company is profitable even though the annual EBIDTA worth USD 18mn in 2010 is hardly an out- standing success. However, it is no secret that some of its publications consistently incurr losses. No other option is possible in Ukrainian circumstances. In that case, what is the point of the business? Why does one portfolio contain publications that are directly competitive with each other, such as Korrespondent and Focus, for instance? These questions are not super- fluous, because in such a sensitive and socially important industry as the media, the presumption of guilt should be applied until the opposite is proven. Assuming that a mono poly agreement truly exists, this could explain the distortions. The warped system dictates its terms to competitors, advertising agencies, and consumers. This is not to say that these distortions satisfy all the players. In May 2012, Ukrayin- sky Tyzhden/The Ukrainian Week discontinued participation in TNS Ukraine’s marketing research, measuring print media readership, after its own analysis revealed discrepancies with TNS MMI 2011/4 data, which significantly dis- torted the real presence of the publication in some regions. Literally two months ago, another scandal broke, as several well-known publications, including Business, Delovaya Sto- litsa (Business Capital), Vlast Deneg (The Power of Money) and Kon- trakty (Contracts), publicly ended their cooperation with TNS Ukraine. They did so after Korre- spondent and Focus, both part of Ukrainian Media Holding, were switched from the general to the business category, since in their view, they do not qualify as such. These publishers believe that the current situation in print media readership research does not reflect

photo: andriy lomakin photo: the actual popularity of publica- № 16 (39) october 2012|the ukrainian week|11 focus|The Media Market in ukraine: is there one? tions, and the research cannot be Too small to feed them all used as a proper tool for planning Virtually all print publications operate with losses an advertising budget “because because the print press advertising market is too Number of Number of some publishing holdings use it to small. One or two major media holdings run the magazines newspapers manipulate advertising budgets.” market and control advertising through Source: State Stati ics Committee In fact, the measuring system manipulation prevents advertisers from spending their budgets efficiently. TNS Ukraine’s questionnaire is worded 2,885 2,886 in such a manner, that it actually determines the number of people who 2,647 know the brand rather than the ac- 2,420 tual readership. Therefore, publica- 2,422 tions that have small print run 2,266 which sells well, but invest in adver-

tising, get to the top of the TNS rat- 216 ing, while those offering content the readers are interested in and a large 177 print run, most of which is sold, end 171 up at the bottom. International practice is based on the fact that ad- 3 vertisers receive transparent infor- 3 mation on the number of copies ev- 10 ery publication sells on the one hand 10 and the quality of its audience on the 75 other. The first is based on certified 73.1 35.7 89.2 64.4 35.7 33.1 print run data, the second – by means of the competition between research companies. In the reality of 2007 2008 2011 Ukraine, TNS Ukraine has a mono poly in conducting research on the Total advertising in magazines, USD mn Average annual advertising per publication, USD th printed mass media market, and Total advertising in newspapers, USD mn Average annual advertising per newspaper, USD th since the certification of print runs based on data by Cortex The Ukrainian Week does not exist in Ukraine, this company also determines the readership ordered article in their publication dence, while the print run of Rus- of publications from a monopolist because they simply have no other sian-language publications has standpoint. Therefore, advertisers, sources of income. Some journalists grown by 150%. Over the past 20 relying solely on the TNS rating, risk get used to this practice and often years, the share of the annual print placing their ads in publications that write articles or programmes to or- run of Ukrainian magazines has people have heard of, but never der, thus confirming the general fallen from 70% to 10%, while that of read, thus overpaying for a non-ex- opinion that all journalists can be Russian-language publications has istent readership. This suggests that bought and sold. skyrocketed from 18% to 90%. Only “the situation is under control”... The final consequence of this one third of all publications are in The volume of the advertising distortion of priorities, is public dis- Ukrainian today. This is one of the market itself is overstated, since it is trust of the press as a whole, a sharp consequences of the myth imposed determined by guesswork. Those decline in social capital and a crisis of on advertisers that the readers of conducting the assessment multiply values, making it easier for govern- Ukrainian-language publications are the number of advertising pages by ments and oligarchs to manipulate not well-off enough to buy the things the prices reported by the publica- society. Just look around – isn’t this they advertise. This is blatant mation. However, everyone knows that what you see in the Ukraine of 2012? nipulation. A notable example of this the actual prices paid by advertisers The problem with freedom of speech is Kontrakty, a Ukrainian-language are much lower than those indicated in Ukraine is that Yanukovych & Co business magazine, which earned in price lists. What is worse is the are taking advantage of the lack of a the highest income from advertising fact that the unfair split of the al- mass media market in Ukraine and of all other business publications. It ready small advertisement pie and the rules dictated by major media lost its leadership after the introduc- the resulting poverty of most news- holdings. Thus, the government is tion of its Russian-language version. papers and magazines facilitates actually helping to implement Rus- However, such manipulation suc- something that should, in theory, sian scenarios concerning Ukraine, ceeded. Many Ukrainian-language ruin the reputation of any publica- particularly its inclusion in the so- publications have closed down over tion, yet is essentially routine for vir- called “Russian World”. For in- the past few years, since they could tually all of them in Ukraine: the stance, the Ukrainian-language seg- not survive without income from ad- publication of specially ordered arti- ment is disappearing from the news- vertising, as revenues from substrip- cles without the “advertisement” paper and magazine market. tions and retail sales do not, as a rule, sign or in the vernacular “plugola”. According to the Book Chamber of cover the cost of paper and presence Sometimes, prudent and democrati- Ukraine, the total print run of Ukrai- in retail chains. The latter is also cally-oriented editors see no way nian-language newspapers has caused by the monopoly factor, out, other than printing a specially halved over the years of indepen- which makes it ridiculously expen- 12|the ukrainian week|№ 16 (39) october 2012 The Media Market in ukraine: is there one?|focus sive to get onto the shelves. In the changes in the measuring device, ment’s attempt to influence indepen- meantime, only one or two publica- whereby several viewers who were dent online resources was observed. tions in Ukraine can sell at prices particularly loyal to one button or LB.ua, one of the most visited web- that cover their expenses without another, were suddenly removed. sites in Ukraine, has recently been losing a significant amount of their Coupled with the tax police raid on sued for violating the secret of corre- readership. TVi and resulting in the initiation of spondence and privacy, although the Food for thought: the UMH a criminal case for alleged tax eva- plaintiff renounced his claim against Group portfolio does not include a sion after this issue had been won by the internet publication. As long as single Ukrainian-language publi- the TV channel in court, a picture Ukraine does not turn into another cation. emerges of undisguised administra- Belarus or China, at least in the in- tive pressure. ternet, it can count on its territory of No picture, no sound After the two violators of the freedom. However, this does not Qualifying radio as mass media in peace were removed from the guarantee good quality journalism. Ukraine is hardly reasonable or widely accessible media pool, they even possible. An absolute majority found themselves on its sidelines Once more about of radio stations are purely for en- with ratings ranging from 12th to freedom of speech tertainment. Radio Era, the only so- 20th places. As for the leaders, à la Ukraine cio-political radio channel in Kyiv, comprised of a never-changing pool On 2-5 September, Kyiv will host the does not even try to hide its misera- of six channels, they are full of con- 64th World Newspaper Congress and ble state as it gives away its air-time fidence. They just have one little the World Editors Forum. Despite to so-called “joint projects.” Today, problem: they are all unprofitable, the potential importance of the event Era has turned into a branch of the which doesn’t surprise anyone. Ac- for the development of the Ukrai- state-owned Radio Rossii (Russian cording to reliable estimates by ex- nian media market, increased inter- Radio) with all relevant conse- perts, revenues from advertising on est in both the market and Ukraine quences. television mounted to USD 400mn in the world and the integration of As for television, it is undergo- Ukrainian journalism in the world ing what appear to be confusing Ukrainian society has been professional community, in truth, processes, which can be easily ex- this year’s forum is addressing a plained from the “presumption of deprived of its fourth range of specific features, that raises guilt” perspective. After the change power in yet another crisis doubts as to how useful it will be un- in the administration of Ukraine der the existing circumstances and two years ago, several dozen hith- period of its history format. In fact, the idea to hold the erto unknown new channels joined forum in Kyiv was initiated by the the TV advertising market – already in 2011 while expenditures totaled Yanukovych regime in the spring of limited at that point, with an annual USD 800mn. last year. In May 2011, Viktor Yanu- value of USD 400-425mn. Mean- Everything becomes clear when kovych wrote a letter to Christoph while, the state regulator kicked out one remembers that all leading TV Riess, the CEO of the World Associa- the two most bothersome broad- companies are owned by a handful tion of Newspapers and News Pub- casters: the Kyiv-based Channel 5 of Ukrainian oligarchs, such as lishers, proposing that the congress and TVi, which specialize in socio- Dmytro Firtash, Viktor Pinchuk, and forum be held in Kyiv. Obvi- political programmes and are Ihor Kolomoyskyi and Rinat ously, the current Ukrainian govern- known for their openly independent Akhmetov. For them, television is a ment, under which Ukraine dropped position. Notably, most Ukrainians tool of political influence rather to 130th place in Freedom House’s still watch analogue television while than business. Several media man- Freedom of Press index because of cable is only available in big cities. agers insist that they increase the the growing control of the govern- Since these two unruly channels capitalization of assets for their ment over the mass media, is pursu- were kicked out by the regulator, owners through operating expenses, ing its own personal interests that they have been having problems but this explanation seems lame in have no bearing on those of Ukrai- with local operators who have view of the upcoming election. nian journalism. Quite the contrary, started to delete them from their Against the backdrop of the they may pose a threat to freedom of packages for obscure reasons, with- transformation that leading TV speech. out any explanation. brands have undergone over the past There is a risk that the govern- A lot of questions are also raised few years, whereby fully-fleged me- ment will use the newspaper con- regarding GfK, a company that mea- dia with their powerful informa- gress, just like it did the Euro 2012, sures TV ratings. In June, a small tional blocks have turned into purely to legitimize its regime in the eyes of broadcaster complained about entertaining tabloid projects, this no the West, create a positive informa- leaked information regarding the list longer matters that much. Ukrainian tional background to neutralize of addresses where audience mea- society will have to realize that it has news about pressure on the free- suring devices, known as people me- been deprived of its fourth power in dom of speech and authoritarian- ters, were installed. This opens the yet another crisis period of its his- ism in Ukraine, and create the illu- door for uncontrolled manipulation tory. There is nothing left other than sion that Ukraine still has demo- with supposedly objective popularity to escape to the internet where the cratic freedoms, it’s alleged indicators, on the basis of which, TV business component is still small, as democracy and European vector. companies determine the price for online resources account for a mere Mr. Yanukovych’s press-service has their advertising time. Mykola Knia- 2% of the advertising market and the already posted the expectations of zhytsky, Director General of the TVi 1 Bankova Street is the lo- government’s ability to control it is the Presidential Administration cation of the Presidential channel, has noticed obscure Administration limited. But even here, the govern- from the congress on its website to- № 16 (39) october 2012|the ukrainian week|13 focus|The Media Market in ukraine: is there one? gether with the announcement of will be attended by managers who ited, who opposed state regulation of his letter proposing that the forum are used to resolving specific issues: the press market in Australia. Surely be held in Kyiv, stating: “Ukraine is how to increase a print run; earn after Mr. Yanukovych’s speech, they confidently moving ahead towards a more money; attract advertisers; will not be silent and ignore the obvi- democratic society and the develop- minimize costs, etc. I think this tone ous facts of the current government’s ment of an independent mass me- will prevail. This is what Ukraine ever more aggressive attacks on the dia”, “transparent and efficient rules needs right now. If we politicize all of freedom of speech, which has been for access to public information this and begin to discuss other attested to by reputable international have been introduced in legislation things, we will talk the congress to organizations? and the investigation of the Georgiy death.” The problems with freedom of Gongadze’s case has been signifi- At the same time, congress par- speech in Ukraine are not limited to cantly intensified”, “these measures ticipants should realize that their pressure on independent media. A are an important step for Ukraine in position will define whether they series of successful media projects its European progress; they will approve the political course of the sponsored by Ukrainian oligarchs once more confirm Ukraine’s choice current president (who is both an have been reformatted in cases as a state willing to strengthen dem- initiator and a VIP-speaker at the where sharp criticism of the govern- ocratic values to which freedom of forum) with their participation and ment was an unwanted irritant for speech and the press is integral”. especially potential silent consent, the regime. Officials at Bankova1 expect that thus facilitating the regime’s legiti- Instructions from above on how these theses will be confirmed in the mization, or on the contrary, use the to cover or not cover certain events world information space as a result forum to show Yanukovych & Co or issues, forbidding any positive in- of Kyiv hosting the congress. the inadmissibility of the situation formation about opposition forces According to Oleksandr Kurdyn- regarding the intensified attack on have been reinstated at state-owned ovych, the Head of the State Com- freedom of speech under the cover media. The scope of self-censorship mittee for Television and Radio of ever more cynical declarations has intensified in the leading media. Broadcasting of Ukraine, the author- about the creation of an environ- Managers loyal to the government ities are going to allocate less than ment for the development of free have been appointed to top positions USD 0.8mn, which is no more than press in Ukraine. in several influential media together 15% of the cost of the forum and the The forum will be attended by with a relevant change in editorial congress, from the state budget, with such renowned journalists as Gwen policy. UNIAN, one of the most long- the rest being covered by major pri- standing news agencies in Ukraine, vate sponsors. One of the initiators will Congress participants is an example of this. Some journal- of the event being held in Kyiv is a ists left their TV channels in protest media holding with an ambition to show yanukovych that against the unacceptable censorship monopolize the print media segment intensified attack on of their materials. Access to socially in Ukraine. The official communica- important information has been re- tions partner is the Ukrainian Media freedom of speech is stricted for journalists, in spite of the Development Institute, chaired by inadmissible? passing of a relevant law. There has Olena Hromnytska, the former press been gross interference on the part secretary of Leonid Kuchma, who Lister, Executive Director of “The of government representatives in the then worked at Rinat Akhmetov’s Namibian”, a newspapaer founded work of journalists without any ad- media holding. The journalists there during the South African occupation ministrative or criminal punish- claimed that she published specially of Namibia as the “voice for the ment. All these facts have accompa- ordered articles flattering the gov- voiceless”, promoting the idea of its nied the development of the Ukrai- ernment. The general partner of the independence and recognized as a nian media market over the past two congress is the DF Group, a group of world press freedom hero by the In- years. Meanwhile, they did not stand companies owned by another oli- ternational Press Institute in 2000; in the way of the dynamic growth of garch, Dmytro Firtash. This appears Erik Bjerager, President of the World business empires owned by media symptomatic. Editors Forum, who is also Editor- tycoons loyal to the government, Obviously, the purpose of such in-Chief and Managing Director of which had an adequate level of self- measures is the symbolic establish- the Danish newspaper Kristeligt censorship. ment of the dominant positions of Dagblad, a determined advocate of All told, the important task of monopolist media holdings, secur- freedom of speech and the press; congress participants will be to ing their roles as “legislators of fash- well-known US investigative jour- avoid blessing and mothballing all ion”, and the marginalization of nalist David Boardman, Executive the abovementioned problems of other participants on the Ukrainian Editor and Senior Vice President at the Ukrainian media market and media market that are not incorpo- The Seattle Times, and member of showing Yanukovych and all other rated in the existing government-oli- the Board of Directors at the Center Ukrainian participants, that the garch conglomerate, continue to for Investigative Reporting, the freedom of speech situation in demonstrate the independence of Steering Committee of the Reporters Ukraine is not satisfactory and their own position and avoid the Committee for Freedom of the Press; that it is moving in the wrong di- pursuit of maximum commercial ef- Caroline H. Little, President and rection. It is crucial to show that fect at all costs. Oleh Nalyvaiko, CEO of the Newspaper Association international events, such as the President of UNIAN, one of the big- of America and President of the congress, - significant as they are - gest news agencies in Ukraine con- American Press Institute; and Greg cannot be used as a rehabilitation trolled by the government, made an Hywood, Chief Executive and Man- tool for the authoritarian policy of expressive comment: “The congress aging Director at Fairfax Media Lim- the current Ukrainian regime. 14|the ukrainian week|№ 16 (39) october 2012

Focus|The media in Ukraine Ukraine’s LastI ndependent Magazines Threatened The World Newspaper Congress in Kyiv was supposed to give the impression that there is freedom of speech in Ukraine. Shortly after, a blitzkrieg was unleashed against the last free Ukrainian media he government’s previous nian Week discussed the gov- Freedom for the chosen statements and actions sug- Author: ernment’s attempts to exploit the At the Yalta European Strategy con- gest that it is still clinging to Oleksandr World Newspaper Congress and ference arranged annually by Viktor Tthe belief that it will be legit- Kramar the World Editors Forum that Pinchuk in mid-September, Vice imized in the eyes of the West took place in Kyiv in early Septem- Premier Valeriy Khoroshkovsky, a when its October election is de- ber to mislead the West as to the major contributor to the creation of clared democratic. With this strat- true state of free speech and de- Viktor Yanukovych’s image as a “lib- egy in mind, it is extremely impor- mocracy in Ukraine. However, eral pro-European politician”, tried tant for the Yanukovych regime to their hopes were dashed – partly to assure Condoleezza Rice that all convince Western politicians that by The Ukrainian Week. Prior political forces in Ukraine have equal Ukraine’s media market is idyllic. to the congress, we published a access to the media. Meanwhile, In the previous issue, The Ukrai- special issue dedicated to manipu- monitoring of press freedom con- lation on the Ukrainian media ducted in August by the Equal Op- market by its biggest players that portunities Commission showed that may allow the Yanukovych regime the Party of Regions dominates the to easily control the fourth estate, media in all regions but Ivano- and distributed it to international Frankivsk Oblast. The monitoring media participants. Forum partic- surveyed 230 regional media outlets, ipants saw just how remote the including TV channels, print and on- statements by top officials about line publications in all oblasts of Ukraine’s idyllic media space were Ukraine. In Donetsk Oblast, the rul- from the truth when security ing party receives 100 times the me- guards forcibly removed the edi- dia coverage of the opposition. tors of a number of Ukrainian me- Inter, a nationwide TV chan- dia outlets and members of the nel owned by Vice PM Khorosh- “Stop Censorship!” movement. kovsky, had the most positive cov- The activists unfolded posters erage of the government’s activi- stating “2/3 of all attacks on jour- ties as well as a poor balance of nalists in Ukraine are made by the different opinions, the August government”, “Yanukovych is monitoring showed. His response crushing freedom of speech in in defense of the channel’s objec- Ukraine” and the like during Vik- tivity is striking: “people watch In- tor Yanukovych’s speech at the fo- ter and see reality. The fact that rum. Subsequently, a number of they don’t express distrust means well-known international publica- that we’re reflecting what is hap- tions reported that Yanukovych’s pening in the real world.” statements about the support of The real argument is different free speech in Ukraine are not though: the Ukrainian media market true, as the government’s efforts is monopolized by a small circle of to control the media grow more people and business entities linked and more visible. to the government, whose manipula- Post-congress developments tions prevent the implementation of indicate that the government has real market mechanisms. An over- decided to destroy the last remain- whelming majority of publications in ing free media now that its efforts Ukraine operate at a loss because the to mislead the West have clearly advertising market is so small, worth failed. One possible scenario is that just $180mn a year with just over the government is rushing to carry 5,000 newspapers and magazines. out this plan prior to the election so According to estimates, one publica- that it can have complete control tion could hypothetically earn no over the way Ukraine’s “democratic more than $36,000 in yearly adver- election” is reported. tising revenue. Yet, most earn even 16|the ukrainian week|№ 16 (39) october 2012 The media in Ukraine|Focus less because the advertising sector is divided between two or three leaders with the greatest audience coverage. This is true for virtually every segment of the media. The so-called leaders that advertisers focus on are determined by TNS Ukraine, a monopolist in media audience research that recently attracted the ire of several media outlets. They claimed that TNS Ukraine’s rates do not reflect the true coverage, and that certain large media holdings use the company to manipulate advertising budgets. The only possible objective in- dicator for publications is their circulation, yet this is not an effective measure either because there is no certified circulation auditor in Ukraine. Meanwhile, Ukrainian publications cannot earn enough from subscription and retail sales because proceeds do not even cover the To: A. M. Reshetnyk cost of paper or distribution (the Director of Ukrayinskiy Tyzhden LLC high cost of which is a result of a monopoly in that sector). Most Ukrai- Dear Mr. Reshetnyk, nian publications cannot afford to Availing of this opportunity, AT Media management assures you of our respect and informs of the following. Boryspil airport employees were forced to remove Ukrayinskiy Tyzhden (The Ukrainian Week) from the press stands as a result of set prices that would cover their the publication of articles against the current government. After Ukrayinskiy Tyzhden (The Ukrainian Week) was removed for the overhead costs without losing part of second time, the airport’s administration banned putting it out. Based on the information mentioned above, we are unfortunately their audience. Because of their low forced to discontinue distribution of your publication there. earnings, most Ukrainians cannot afford to pay EUR 2-3 for a publica- Equal criticism Ukrayinskiy Tyzhden and The ministration, was one of the initiation. A successful publication in of Ukrainian Week on its territory tors behind the idea of hosting the Ukraine (with a population of 46 thus depriving us of access to an im- World Newspaper Congress in Kyiv. million) is one with a print run of ... the portant audience. We learned this This was the focus of the issue 10,000 copies, compared to those government from AT Media, an advertising blocked from distribution. with at least 100,000 copies in Po- agency that distributed the publica- If the trend continues, it may land and the Czech Republic, and tion at the airport (see a copy of the have a serious impact on the publi- 300,000 in Germany. letter forwarded by email on Sep- cation. Founded by the Austrian Despite their losses, several me- tember 11th). ECEM Media GmbH, it is not re- dia holdings controlled by oligarchs, UMH Group, a media holding lated to any Ukrainian oligarchs or among others, still have competitive presided over by Borys Lozhkin and political entities. With no proper publications in their portfolios. One the biggest player on the Ukrainian advertising market and a no-paid- possible explanation is that in lieu of market for print publications, has article policy, Ukrayinskiy Tyzh- a proper media market in Ukraine, blocked the distribution of Ukray- den/ The Ukrainain Week’s main this is being done to dictate condi- ... the inskiy Tyzhden as well. Several source of income is proceeds from tions to other market participants, opposition retail chains linked to UMH Group, sales. It appears that by restricting ensure beneficial cooperation with including Press Trade in Kyiv and our access to readers directly and the government and exert the latter’s Tvoya Presa (Your Press) in Kharkiv through linked media entities, the influence on public opinion. This have refused to sell the magazine re- government is hoping to force the pushes entire segments, such as gardless of effective contracts and foreign investor to discontinue the Ukrainian-language publications, without explanation. publication. from the media market, fills publica- The workers at press retailers in tions with paid articles (one method Kyiv informed us that people linked No TV of survival for most Ukrainian me- to the UMH Group bought out every Print publications in Ukraine have a dia), degrades journalistic integrity, copy of Ukrayinskiy Tyzhden is. much smaller audience compared and erodes trust in the media. ... the oligarchs 36/2012 dedicated to the media, the to television. According to Iryna negative impact of press market mo- Bekeshkina, Director of the Demo- An inconvenient Week nopolization in Ukraine, troubles cratic Initiatives Foundation, televi- The Ukrainain Week focused on free speech in Ukraine and the failed sion is an absolute leader in the these problems in its special issue attempt of the Presidential Adminis- communication sphere. 46% of citi- dedicated to the World Newspaper tration to use the World Newspaper zens receive pre-election news from Congress in Kyiv. Then, access to its Congress to whitewash the Yanu- TV while only 23% do so from print audience began to be blocked. kovych regime. UMH Group has the media, 8% from the Internet and Starting with that issue, the ad- potential to monopolize Ukraine’s 4% from social networks. ministration of Boryspil airport How to deal print media market, and Borys Lozh- Although TV channels mention banned the distribution of both with oligarchs kin, along with the Presidential Ad- the Party of Regions over nine times № 16 (39) october 2012|the ukrainian week|17 Focus|The media in Ukraine more often than other participants of Expert comment time before the election. In addition sored by the Party of Regions’ Vi- the election campaign, as research to that, TVi’s administration faced taliy Zhuravsky, the draft law was by the Equal Opportunities Commis- criminal charges for tax evasion. It actually designed at the Presidential sion and Democratic Initiatives had to pay over UAH 4mn (col- Administration as proven by an Foundation shows, the government lected by Ukrainian citizens in sup- electronic file posted on the parlia- seems to be pushing for a complete port of their favourite channel) in ment’s website. The list of crimes in monopolization of television cover- tax debt and fines, although it never the new draft law includes slander, age. Two out of three TV channels admitted to owing any debt to the punishable with prison terms of one with the biggest audience on a na- Tax Administration and considers to two years or two to five years. tionwide scale that are often the only the debt illegal (TVi previously won Slander that accuses someone of a ones available in much of rural Mikael Pen- a similar case in court). serious crime may carry up to a tikäinen, Senior Meanwhile, the government has three-year jail sentence. Ukraine have long been under the Editor-in-Chief at government’s control. The adminis- Helsingin Sano- turned a blind eye to protests in sup- If passed, the law on slander will tration of the First National channel mat and partici- port of TVi and free speech. These destroy the remnants of indepen- has openly stated that its task is to pant of the took place in most Ukrainian cities dent journalism in Ukraine. In lieu of promote the interests of the ruling World Newspa- even after some courts banned the a fair judiciary, any journalist who party rather than those of the nation. per Congress and rallies using weak excuses. Kharkiv’s criticizes an official or publishes an Inter TV is owned by the current World Editors Fo- District Court, for instance, banned investigation on potential corruption Vice Premier and is allegedly closely rum in Kyiv the protest based on a request from will automatically become an object linked to a highly influential group in I was not sur- the city council because it “prevents of criminal persecution with the out- the current government that in- prised to find out people from moving around the city come known in advance. This is es- that Ukraine has cludes the President’s Chief of Staff problems with freely.” sentially an attempt to apply the Serhiy Liovochkin and oligarch freedom of tools used against jailed opposition Dmytro Firtash. Controlled by other speech. We have The congress is over, let members to attack legitimate free oligarchs, the rest of the TV channels had discussions the repression begin! media outlets using obsolete soviet have been forced to implement self- on the board of After the World Newspaper Con- provisions of the Criminal Code. De- censorship – more or less visible, yet WAN-Ifra regard- gress in Kyiv, the attack on freedom spite promises from government growing – in issues that the Yanu- ing the situation of speech has mounted. The impres- representatives to soften the draft kovych regime finds sensitive. with the Ukrai- sion is that the Presidential Admin- law following sharp reactions by the After Ukrainian oligarch Petro nian press. There- istration intentionally waited for the Western and Ukrainian public and Poroshenko joined the government, fore, I was ex- congress to end in order to avoid politicians, the law, if passed, will pecting some- it became obvious that his Chan- thing to happen more accusations of limited press signal the end of free speech and nel 5 would no longer act as an al- at the ceremony. freedom. The government’s latest journalism in Ukraine. After that, ternative source of information dur- I think that it is initiatives signal that it is purging journalism in the country may de- ing the election as it did in the 2004 crucial for Ukrai- the media space to prevent the pub- grade completely.The government Orange Revolution. Moreover, the nian journalists lication of whatever damaging in- seems to have taken a step back un- government has taken every effort to take care of formation the few remaining media der pressure from the public. When over the past few years to prevent the editorial cul- outlets can muster. this publication was being prepared, TVi, the last nationwide indepen- ture of every free On September 12th, the govern- the Party of Regions’ Vitaliy dent TV channel, from taking over media. ment issued an instruction “On Rais- Zhuravsky stated that he would re- the mission that had once been The trust of reading Awareness for the Prevention of call his draft law on slander. How- ers is the most Channel 5’s. First, TVi lost its li- valuable asset we Terrorism” to the State Television ever, he also said that he was going cense for some frequencies to have. The inter- and Radio Committee and law en- to submit a finalized version to the Khoroshkovsky’s Inter. After the national media forcement agencies. They are or- parliament after the election. Ac- election campaign kicked off, cable community is dered to reveal and stop any materi- cording to The Ukrainian Week’s operators began to turn off TVi in carefully monitor- als calling on terrorist activity “in any source in the Party of Regions, legis- their regions without any sound ex- ing the develop- form”, overthrow of the constitu- lative changes on criminal liability planations. On September 5th, the ment of Ukrai- tional order, “actions that threaten for slander will “definitely” be passed last day of the World Newspaper nian media and civil order” or the overthrow of the after the parliamentary election. Congress, the biggest Ukrainian ca- supporting it with government. Despite a heightened If the tactics employed by the ble operator Volia removed the all the tools we protest culture, the threat of terror- government on a massive scale suc- have. We have to channel from the basic package of fight together for ism is very low in Ukraine. Accord- ceed to win them a constitutional channels it offered, causing the loss the freedom of ing to sociological surveys, only 3% majority in the new parliament (300 of up to 2/3 of TVi’s audience ac- the press, every- of Ukrainians consider terrorist at- out of 450 seats)—even if supported cording to estimates by the chan- where in the tacks to be a real threat. Independent by no more than 25% of the popula- nel’s administration. On top of it all, world. experts assume that the last two pro- tion—the Yanukovych regime will be there was an attempt to ban TVi’s visions of the instruction may be able to completely ignore the inter- foreign economic transactions with- used primarily to coerce, intimidate national community. In doing so, he out a special license from the Minis- and persecute representatives of in- may point to having “absolute popu- try of Economy. As a result, trans- dependent media. lar support” and a constitutional ma- national payments for satellite On September 18th, the Verk- jority in the parliament as signs transmission – an alternative way hovna Rada passed a bill “On thereof. “All questions about Ukraine to communicate information to au- Amending the Criminal Code and will be answered after the election,” diences – could have ended up com- the Code of Proceedings of Ukraine said Yanukovych at the Yalta Euro- pletely under government control. to Increase Liability for Attacks on pean Strategy conference. In this The mechanism has not been im- the Dignity and Business Reputa- light, this phrase may gain an en- posed yet, but there is still some tion of Individuals”. Officially spon- tirely new meaning. 18|the ukrainian week|№ 16 (39) october 2012 The media in Ukraine|Focus Open Letter The Ukrainian Week would like to inform the Ukrainian and international community of the harassment of the publication after the World Newspaper Congress in Kyiv

he Ukrainian Week has been published since January 2010 as the international English-language edition of Ukrayinskiy Tyzhden published in Ukrainian by ECEM Media GmbH, Austria, since 2007. It is one of the few publications on the Ukrainian media market, guided by European standards. Having its own clear position on events taking place in Ukraine, the editorial office has never given in to external Tinfluence and did not publish customized materials, which, unfortunately, is a standard practice for most members of the Ukrainian mass media. In January, the publication won the Gerd Bucerius “Free Press of Eastern Europe-2012” award, which has been awarded by the German Zeit-Stiftung Ebelin und Gerd Bucerius, together with the Norwegian Fritt Ord (Free Word) Foundation – “for impartiality, professionalism, quality of work, social activism and courage”. The publication consistently stood by the real European integration and irreversible changes within Ukrainian society, the business environment and the state administration sector, which would pave the way for the transformation of Ukraine into a modern European democracy; it always strongly criticized various pro-government and opposition political forces and organizations, the actions of which did not promote, profaned or impeded relevant transformations. There has been constant pressure on Ukrayinskiy Tyzhden on the part of the government and monopolists of the media market associated to it, although it manifested itself in different forms. But as of the beginning of September, it reached a new level, which lies in the single- minded squeezing out of the publication from the market by means of blocking its access to readers. This became particularly noticeable after a critical publication dedicated to the World Newspaper Congress in Kyiv, which took place in early September of this year. The article addressed the problems related to the monopolization of the printed media market and manipulations related to it, which distort the Ukrainian media market and make the functioning of market mechanisms impossible. As a result, large media-holdings, owned, as a rule, by Ukrainian oligarchs, dictate their conditions on the market. These media-holdings are generally not self-sufficient market participants, merely subdivisions of these oligarchs’ business empires. At the same time, since the media business is, a priori, unprofitable under existing conditions in Ukraine, for the most part, controlled media execute the function of a manipulator of public opinion within the country. More specifically, Ukraine, with an absolute majority of Ukrainian-speakers is experiencing discriminatory conditions for the functioning of the mass media published in the Ukrainian language, which has already led to the actual destruction of the Ukrainian-language segment of printed publications. It was after the publication of this issue that the management of State Enterprise Boryspil International Airport banned the distribution of both Ukrayinskiy Tyzhden and The Ukrainian Week on its territory. We were informed about this by the advertising agency, through which our magazines were placed at the airport: “Boryspil airport employees were forced to remove Ukrayinskiy Tyzhden (The Ukrainian Week) from the press stands as a result of the publication of articles against the current government. After Ukrayinskiy Tyzhden (The Ukrainian Week) was removed for the second time, the airport’s administration banned putting it out. Based on the information mentioned above, we are unfortunately forced to discontinue distribution of your publication there.”(see copy of the letter, forwarded by e-mail on September 11th). Thus, Ukrayinskiy Tyzhden and The Ukrainian Week have lost access to an important readership. In addition, the distribution ofU krayinskiy Tyzhden was blocked by the UMH Group media-holding (President Borys Lozhkin), a major player on the Ukrainian market of printed publications, which is trying to monopolize it. Several distribution networks, related to UMH Group, particularly Presa Trade LLC (Press Trade LLC, Kyiv), Tvoya Presa (Your Press, Kharkiv) etc., refused to sell our publication without giving any ex- planations, regardless of signed contracts. It was the President of UMH Group who was an inspiration behind the holding of the World Newspa- per Congress in Kyiv in a format designated to make the Yanukovych regime look good in the eyes of the international community. Thus, the government is restricting our access to the reader, acting both directly, and indirectly through “friendly” media structures. In a situation, where there is no normal advertising market in the country, under conditions when Ukrayinskiy Tyzhden and The Ukrainian Week refuses to publish customized materials in principle, and the main source of income is funds received from the sale of its magazines – the situation with the artificial blocking of access to the readership could be a heavy blow to the publication. Thus, we view these actions as an attempt by the government to force a foreign investor to withdraw from the publication ofU krayinskiy Tyzhden and The Ukrainian Week.

Management Board Ukrayinskiy Tyzhden The Ukrainian Week

№ 16 (39) october 2012|the ukrainian week|19 Politics|Election fraud in the making Minority Rule With the support of no more than a third of Ukrainians, Viktor Yanukovych is preparing for a constitutional majority in the new parliament

ublic opinion in Ukraine on Author: hovna Rada if the election were 9 August stated that events in the eve of the parliamentary Oleksandr truly representative. Almost two- Ukraine were developing in the election is such that the rul- Kramar thirds (63%) of the respondents in wrong direction. The discontent Ping coalition parties would a poll conducted by four sociologi- was felt by majority (54-55% in not be able to count on more than cal services at the beginning of the Southern and Eastern Ukraine, a third of the seats in the Verk- election campaign from 27 July to which are the traditional support

THE THREAT OF A CONSTITUTIONAL MAJORITY 112(119)+15(20)+176=303(315)* * *

The number of pro-government MPs Opposition MPs Seats that may be won Seats in the new parliament that will under the proportional sy em likely to be eleed, by the Party of Regions, give the government that Ukrainian society is being brainwashed who will subsequently its satellites and potentially defeing a con itutional majority into believe is legitimate defe “independent” candidates and some opposition candidates, if all leading opposition forces fail to agree on candidates in ﬁr -pa -the-po di ris Government-di ated matrix Through polls, Ukrainian society is now being brainwashed into accepting eleion results which, according to various scenarios, will give the ruling coalition 112-119 seats under the proportional sy em

Potential PR Ukraine – United Party Communi PR, CP defe ors R&B poll and Forward!, Other Opposition, Opposition of Regions Party and UF Undecided UDAR, % Svoboda, % from the CP (UF), parties % total (PR), (CP), total opposition’s total % % % party lis

Among those who 27 10.9 37.9 3.7 41.6 17 3.1 20.4 13.4 4.5 38.3 intend to vote

Among those who have made 32.6 13.1 45.7 4.5 50.2 – 3.8 24.5 16.1 5.4 46.0 their choice Percentage and number of seats under the pro-portional syem in the new parliament (out of 225 seats)

Eimate 35.6 14.3 49.9 0 49.9 26.6 17.5 5.9 50.1 (15–20) with the “prize fund” – – (votes ca for (80 (32) (112) (112) (60) (40) (13) (113) ultimately unele ed seats) parties)

Similar eimate if the result 33.9 13.6 47.5 5.0* 52.5 25.4 16.6 5.5 47.5% (15–20) of Ukraine – Forward! – – is rigged enough for (76) (31) (107) (11) (118) (57) (37) (12) (107) it to enter parliament

Similar eimate 37.8 15.2 53% – 53% – 28.4 18.6 – 47.0 (15–20) if Ukraine – Forward! – and Svoboda fail (85) (34) (119) (119) (64) (42) (106)

These calculations have been made based on ﬁgures reported by R&B, a company whose results are always mo favourable to the ruling party and which is currently prediing the viory of the Party of Regions and its satellites over the opposition under the proportional sy em Various scenarios have been considered, based on an e imation of preferences among those who intend to vote, assuming that the votes of the undecided are proportionately di ributed between them *Under a scenario whereby the party will receive an additional 0.5% owing to a “assi ance” of one kind or another

20|the ukrainian week|№ 16 (39) october 2012 Election fraud in the making|Politics base for the Party of Regions and kivshchyna (Fatherland) and Ar- boda (Liberty)) had the advantage its satellites (see Disillusion- seniy Yatseniuk’s Front Zmin over ruling coalition parties: of the ment with the government). (Front for Change) – it must have respondents intending to vote, However, an analysis carried out caught the government flat- 40.5% favoured the opposition by The Ukrainian Week shows footed. It had hoped that banning (36.1% without Svoboda) and that under these conditions, the blocs from elections would rule 30.1% backed pro-government Yanukovych regime will try to gain out this scenario, but has now parties, including 20.3% for the a constitutional majority (two- faced a new challenge. The gov- Party of Regions. On 27 July to 9 thirds of the seats) to fully take ernment did not previously con- August, at the beginning of the power into its own hands, have sider Batkivshchyna and the Front election campaign, four compa- full liberty to do as it pleases, pass for Change jointly winning more nies (GfK Ukraine, Rating, Sotsis arbitrary decisions and deprive votes than the Party of Regions as and the Razumkov Centre) re- the Ukrainian society and the op- a threat, because the latter still ex- ported similar figures – 42.2% position of opportunities to offer Pollsters predict pected to lead the pack. The (38%) against 34% (24.6%) for the resistance in parliament. nearly merger posed a real threat as it Party of Regions. 35% could end up in second place, However, by mid-August, the for the Party of Re- Maintaining the lead gions and its satel- which would clearly give it the situation began to change radi- For a long time, it appeared that lites in the election. negative image of a “losing party” cally. On 10-15 August, the Ra- the government was going to win Thus, a fair result and hurting the prospects of Yan- zumkov Centre and the Demo- would be for it to the election by utilizing the first- have ukovych or any other Party of Re- cratic Initiatives Foundation past-the-post system, just like it gions candidate in presidential found, quite unexpectedly, that 150 did in 2002 when the then Presi- seats in the new par- elections after 2015. It is worth re- pro-government forces had gained dent, Leonid Kuchma, formed a liament rather than membering how fiercely Yanu- a slight edge over the opposition the more than relatively stable parliamentary kovych fought to obtain at least a (the Svoboda party was excluded majority that he could control, de- 300 minimal edge over Viktor Yush- from the comparison, since its that it has set its spite the fact that at most, the lists sights on chenko in the first round of the support level (3.8%) surprisingly of the pro-government parties 2004 presidential election and turned out to be below the 5% par- only garnered 18% of the vote. how nervously the Presidential liamentary threshold). According This led politicians and observers Administration reacted to Nasha to the poll, Batkivshchyna and to seriously believe that the Presi- Ukrayina's (Our Ukraine’s) rela- UDAR commanded the support of dential Administration would opt tive majority in 2002. 36.1% of voters, while the Party of for a relatively representative elec- Regions had 28.1% and the Com- tion under this system, in order to Sociological paradoxes munist Party - 8.2% (jointly - at least partly legitimize the vote In the past month, there has been 36.3%). both inside the country and, most an obvious effort to “programme” However, the transformations importantly, abroad. However, Ukrainian society and the interna- recorded by the Rating group were most recent trends suggest that ei- tional community for the impend- the most significant. Its early Sep- ther it did not have such inten- ing victory of the Party of Regions, tember figures contrasted with its tions or that they had to be modi- not only in first-past-the-post dis- findings for July: the govern- fied under the pressure of circum- tricts, but also in those where pro- ment’s support level leaped from stances which emerged in the first portional party lists are applied. 30.1% to 37.9%, while that of the six months of 2012. When the ma- Back in July 2012, the Rating So- opposition declined from 40.5% to jority of opposition forces rallied ciological Group reported that 38.7%. around the most popular parties – three leading opposition forces In late August - early Septem- Yulia Tymoshenko’s Bat- (Batkivshchyna, UDAR and Svo- ber, R&B, whose poll results are traditionally most favourable to AT THE START the government, reported on even Support levels for pro-government and opposition forces at the art of the eleion campaign greater support for the ruling co- (late July to early Augu ) in a joint poll carried out by four services (GfK Ukraine, Rating, Sotsis and the alition with a large advantage over Razumkov Centre) point to the clear advantage of the opposition under the proportional sy em the opposition: 37.9% (of which 27% was for the Party of Regions) against 33.8% (without Svoboda, Ukraine – Forward! 42.2 Opposition forces likely which, according to R&B, was be- (Natalia Korolevska) 4.3 to be eleed low the threshold). These figures t People’s Party (Batkivshchyna, were immediately picked up and (Volodymyr Lytvyn) 1.3 UDAR and Svoboda) disseminated by the mass media Communi Party 9.4 outlets close to the Party of Re- gions. For example, the Segodnya (Today) daily wrote that “the GfK NOP opinion poll from 20 August to 1 September showed that the government’s rating (32%) was higher than that of Batkivshchyna Party of Regions 24.6 35.3 – coalition Percentage and UDAR (29%), while with its majority in the new parliamen new the in majority Members of the ruling ruling the of Members of support for a political force 3%, Svoboda did not stand a

otential members of the pro-government pro-government the of members otential among those who P

ogether with Ukraine – Forward! – 39.6 – Forward! – Ukraine with ogether chance of getting into parliament.” T intend to vote The report was accompanied by a № 16 (39) october 2012|the ukrainian week|21 Politics|Election fraud in the making powerful online advertising cam- Disillusionment with the government paign. The level of disillusionment and discontent in the main ay obla s of the Party of Regions is much Data followed from the Insti- higher than that in those favouring the opposition tute for Research of Regional De- Answers to the que ion: Answers to the que ion: velopment, based on its 1-10 Sep- “If parliamentary ele ions were to take place soon, “Are developments in Ukraine heading in the right tember poll, which showed a simi- would you participate?” or wrong dire ion?” lar lead for the government over 30.8 74.3 the opposition (33.3% against 27.7 68.3

30.3%) and the surprisingly high 30.3 23.6 54.4 55.1 support level for Natalia Korolevs- 49.8 48.0 ka’s Ukraine – Forward! party, 39.3 which, according to The Ukrai- 35.0 nian Week's sources, is a technical project run by the government. Pre-programming the We, % Centre, % South, % Ea, % We, % Centre, % South, % Ea, % Total: 80.6 Total: 75.7 Total: 65.3 Total: 62.9 In the wrong direion desired election results I am sure I will participate Since there were no events in Au- Probably not gust that could cause such a steep Source: Poll condued by GfK Ukraine, the Rating Sociological Group, the Sotsis Centre for Social and Marketing Research and the Razumkov increase in the rating of the gov- Centre on 27 July to 9 Augu 2012 ernment and decline in that of the opposition, the question arises as in southern and eastern regions, the election – “so that there are to the nature of the above change which is the support base for the no doubts later as regards ballot- in popular attitudes. All the de- ruling coalition. This fact is re- counting and the final results.” velopments that are invoked as ported by all sociological ser- arguments, such as the merger of vices. Two and a half years ago, The end justifies the the Party of Regions and Serhiy the situation was almost the ex- means Tihipko's Sylna Ukrayina (Strong act opposite. Finally, people are At the same time, the government Ukraine), the “social initiatives” disillusioned with the current is using the wide arsenal of mea- of the PR and the law on lan- government. The disillusion- sures it applied in previous elec- guages it steamrolled through ment is manifested in the passiv- tion campaigns and others that parliament, were completed by ity of its traditional electorate are new by virtue of their audacity the end of July. The obvious and has encouraged some of its in Ukraine. These include the ma- movements within the opposition supporters to switch their prefer- nipulation of the composition of camp (between Batkivshchyna, ences to Ukraine – Forward! and election commissions or informa- UDAR and Svoboda) were all in- UDAR. tion on reported orders sent down ternal. However, sociologists re- Thus, the rapid increase in from the centre specifying how ported a decline in support for support for the government as re- many votes the Party of Regions the entire opposition. Similar ported by sociologists in the last gets from one particular settle- movements between the Commu- month appears suspicious. There ment, district or region. nist Party and the Party of Re- is no direct evidence of their “co- Together they can ensure the gions were also internal, so they operation” with the Ukrainian required level of distortion of the can in no way explain the increase government, but it is as clear as real picture to suit the govern- in the popularity of ruling coali- day that the latter will use the re- ment’s purpose. This includes the tion parties in the polls. cent surveys to justify the unex- bribing of voters using budget Moreover, these most recent pected high level of support that funds, as well as administrative government – opposition ratios the Central Election Committee and repressive resources to limit are at variance with the outcome will record based on voting re- or make it impossible for the op- of the previous parliamentary sults under both systems. More- position and especially its candi- election in 2007 in which demo- over, the government is also con- dates in the first-past-the-post cratic pro-European forces had a sidering ways to legitimize its districts, to conduct their election significant advantage over the pre-programmed results with the campaign; the intimidation of op- soviet-minded and Russia-lean- help of “authoritative Western position candidates, activists and ing Party of Regions and Com- polling companies” by continuing agitators; the large-scale use of the munist Party. The structure of its old tactic of financing expen- numerical advantage of pro-gov- allegiance among various age sive PR campaigns in the West, ernment representatives on elec- groups over the past ten years in something that has long been ap- tion commissions during ballot all regions, to the parties cur- plied by the Yanukovych regime. counting; keeping Svoboda below rently in power, which are ori- More specifically, in an interview the parliamentary threshold (for ented on the past, is falling with with Gazeta Wyborcza, Valeriy example, giving it 4.95% of the every new generation. The refer- Khoroshkovsky said that Kyiv is vote), while boosting the result of ence to Yanukovych’s rating in prepared to invite not only for- Korolevska’s Ukraine – Forward! the first round of the 2010 presi- eign observers but also foreign party; supporting technical proj- dential elections is also ques- political analysts to carry out exit ects such as Our Ukraine, the Rad- tionable, since far more people polls during the parliamentary ical Party, etc. which are supposed intend to vote in western and election in Ukraine, in order to to draw away votes cast for the op- central regions of Ukraine than show the democratic nature of position; conceal objective infor- 22|the ukrainian week|№ 16 (39) october 2012 Election fraud in the making|Politics mation regarding the actual pro- used against their “independent” vote. Moreover, the opposition’s cesses taking place in Ukraine candidates, whereby they are sup- passive response to the Presiden- from most citizens by means of ported by the government (admin- tial Administration’s orchestra- the total monopolization of media istrative resources) and oligarchs tion of a modification to the pro- space in one way or another. close to it (financing). cedure, granting parties the right If Yanukovych’s regime gains to nominate their representatives The spectre of a a constitutional majority in parlia- to election commissions, also has constitutional majority ment, this could pose the threat of a negative impact. It has opened Recent opinion polls are designed fatal consequences for the coun- the way to the mass falsification, to make Ukrainian society believe try. 300 and more votes will elim- of the results of opposition forces, that the Party of Regions and its inate the last remaining barriers achieved under current difficult satellites can legitimately claim and top officials, including the conditions and despite adminis- 112-119 seats in parliament. All of president, will have carte blanche trative pressure and the informa- the abovementioned measures are to implement what they think is tion blockade. being used to this end. Add to this the ideal social order. Ukraine’s Is it possible to avert this sce- 15-20 potential turncoats among statehood will be jeopardized as nario? That depends on how coor- opposition forces (see an analysis the regime’s actions will lead to dinated opposition forces will be of the party lists of leading opposi- even further isolation from the and whether they will be able to tion forces in UW, Issue 31 and 32, civilized world. Nothing will pre- withdraw obviously weak candi- 2012). This enables the Presiden- vent the government from accept- dates in first-past-the-post dis- tial Administration to set its sights ing the initiatives of the Kremlin tricts in favour of more popular on a constitutional majority in the which seeks to restore a soviet-like figures. This can be done, among new Verkhovna Rada if it succeeds empire. A consequence of this will other things, by reaching agree- in obtaining 170-180 mandates in be that the state system will un- ments with independent candi- first-past-the-post districts. This is dergo entirely predictable dates who could potentially resist quite feasible, considering that op- changes, making it impossible or parliamentary defection. Opposi- position forces are not acting in a nearly impossible to rotate the tion candidates should not only be coordinated fashion there. Many government, using the instru- agreed upon, but their results of their candidates are weak, and must be secured through the joint sometimes the opposition is obvi- action of opposition forces. Ob- ously playing into the hands of Why is it that a minority servers from various opposition pro-government candidates. Rep- government, that has parties, who will be monitoring resentatives of Batkivshchyna and ballot counting, should cooperate UDAR continue to point fingers at never had the support of closely to prevent pro-government each other for failing to abide by half of the population, and technical parties from vote- the January agreement on a com- rigging. mon, jointly approved list of can- is going to claim a A genuinely independent exit didates. Another negative factor is constitutional majority? poll will play a very important role that a number of notable opposi- and special care is needed in the tion members are being elbowed ments of representative democ- selection of its participants, con- out. For example, in a telling im- racy. Thus Ukrainian society will sidering that the government may age-crushing address in Lviv on 16 have to pay a heavy price for the succeed in finding a common lan- September Oles Doniy accused Party of Regions’ constitutional guage with even authoritative Batkivshchyna of selling places on majority. polling companies, which remain its party list and in first-past-the- under its jurisdiction. Meanwhile, post districts (which allegedly Not too late yet in many or possibly most cases an costs USD 1.5mn apiece) and also Why is it that a minority govern- exit poll may prove to be the only said that the leadership of the ment, that has never had the sup- counterargument against pre-de- United Opposition often nomi- port of even half of the Ukrainian termined results being reported by nates clearly weak candidates. population, is going to claim a election commissions, most of According to calculations constitutional majority in which are controlled by the Party made by The Ukrainian Week, Ukraine. What has made this pos- of Regions. if the opposition fails to nominate sible? The answer should be Voters, especially those who agreed-upon candidates, the Party sought, among other things, in are skeptical, often for good rea- of Regions, its satellites and po- the inability of the opposition to son, of existing opposition forces, tential defectors may claim 176 join forces and a number of tacti- should understand that, more mandates under the first-past-the- cal errors. It all began with its than ever before, these elections post system. In oblasts where the support of the election law pro- are about saying “no” rather than ruling party has at least a rela- posed and imposed by the gov- “yes”. First and foremost, they are tively higher rating, its representa- ernment in autumn 2011. It not about averting a scenario whereby tives stand the best chance of win- only opened the way for the gov- the very opportunity to say either ning if they make full use of ad- ernment to obtain a majority via “yes” or “no” could disappear. This ministrative resources and don’t first-past-the-post districts and is a case whereby society will be have strong rivals supported by all placing the Svoboda Party under victorious even if the government opposition forces. In regions threat of not attaining the parlia- gains a simple, rather than a con- where the latter have an absolute mentary threshold, thus stripping stitutional parliamentary major- advantage, a successful strategy is the opposition of nearly 5% of the ity. № 16 (39) october 2012|the ukrainian week|23 Politics|voter bribery

Potatoes: UAH 2 per kilo

The Party of Regions, Ukraine Social initiative of Oleksiy Azarov: Our Region Powers of Persuasion The Party of Regions is exploiting every possible financial and administrative resource of the government for its election campaign

ranking of election law Authors: terference of law enforcement tions for the solution of socio- violators released on Sep- Oles agencies in the pre-election pro- economic problems in cities and tember 4th by the OPORA Oleksiyenko, cess (9). counties of Donetsk Oblast.” A (Resistance) NGO fea- Milan Lelich Unlike their more cautions Similar approaches are now in tured the Party of Regions and Kyiv bosses, Party of Regions place in most parts of Ukraine its representatives in centre functionaries in other regions where the Party of Regions stage. The statistics tracked po- never concealed their desire to gained control following the litical parties and candidates return to the soviet reality where “free” 2010 local elections. running for parliamentary seats. the party and the government 188 violations by the Party of were one, as it is in Putin’s Rus- Follow the leader Regions were registered in the sia today. Andriy Shyshatskyi, Administrative coercion is the month of August alone. In sec- First Deputy Head of the Party of most ubiquitous in South-east- ond place with 47 registered vio- Regions’ oblast office and Head ern Ukraine, which the govern- lations were several formally “in- of the Donetsk Oblast Council, ment believes to be its core elec- dependent” candidates with claimed openly at a party confer- torate. Thus, any efforts by the close ties to the Party of Regions. ence, “The Party of Regions is opposition there outrage the The total number of violations the party in power; the Party of Party of Regions. Apart from the made by opposition forces fulfill- Regions and the government are Donbas, this is also a clear trend ing the required 5% threshold, one and the same.” Thus, the in Odesa Oblast, where Head of including Batkivshchyna, UDAR ruling party is putting all of the the Oblast Voters’ Committee and Svoboda, as well as their government’s financial and ad- Anatoliy Boyko has noted in- first-past-the-post (FPTP) candi- ministrative resources behind its creased efforts by the ruling dates, was eight. The most com- own re-election campaign. In a party to interfere with the cam- mon violations by ruling party statement reminiscent of the so- paigns of other candidates. include abuse of administrative viet era Communist Party, the These manoeuvres threaten the leverage and voter bribery (109 Party of Regions’ Donetsk Oblast legitimacy of the election pro- and 103 instances respectively), office announced the following cess in Odesa Oblast, and in- interference with the political strategy: “Ensure the coopera- clude the libelling of competi- activity of other candidates (58), tion of local authorities, FPTP tors, indirect bribery of voters, illegal campaigning (42), and in- candidates and party organiza- and involvement of civil servants 24|the ukrainian week|№ 16 (39) october 2012 voter bribery|Politics and public funds in the Party of tions are “requested” of busi- candidate in district No. 216 in Regions’ campaign. Sometimes ness owners. Kyiv, has reported intimidation these efforts go beyond sound Opposition forces and NGOs as well. On August 31st, his of- reason. Sevastopol City Council monitoring the election process fice was robbed. On September has banned a fan zone for Vitaliy have recorded and disclosed sev- 3rd, his car was stolen. He has Klitschko’s boxing match in the eral troubling developments. On also received anonymous city because he is the leader of July 31st, the Central County threats. the second most popular opposi- Court of Mykolayiv arrested Li- Sometimes the ruling party tion party. udmyla Nikitina, head of the uses soft intimidation tactics, Attempts to spread the use of United Opposition’s election of- threatening to fire opposition administrative leverage to Cen- fice in Pervomaysk, a town in members and activists. UDAR’s tral and even Western Ukraine Mykolayiv Oblast, as a preven- candidate in district No. 61 in are crystallizing as well. In his tive measure. On August 29th, Donetsk Oblast Yevhen Korzh address to the Head of the Cen- leader of UDAR’s office in dis- reported that he had been fired tral Election Commission, trict No. 105 in Luhansk Oblast from an engineering plant before BYuT’s Mykola Tomenko noted Serhiy Zlobin was arrested. On the party meeting on July 31st that local authorities intention- September 1st, a representative where he was nominated be- ally interfere with meetings be- of Svoboda in district No. 128 in cause he refused to quit the cam- tween voters and opposition Mykolayiv Oblast was arrested at paign. The same thing happened FPTP candidates. Their call to the railway station in Mykolayiv to Roman Volkov who is running action came in a letter entitled when he arrived from Kharkiv. as UDAR candidate in FPTP dis- “Working with Competitors in Apart from this, opposition trict No. 43. According to Single-Member Constituencies,” candidates often face criminal Volkov, his boss summoned him signed by Anatoliy Prysiazhniuk, charges and are summoned to after he returned from the UDAR Head of the Party of Regions’ interrogations. Cases against meeting in Donetsk and de- election campaign in Kyiv Oblast Ihor Reshetnyk and Oleksandr manded that he cease his politi- and Chair of the Kyiv Oblast Romaniuk, two United Opposi- cal activity, otherwise, he would State Administration. The direction candidates, have recently be sacked. tive was sent to heads of district, been launched in Mariupol, In some cases, the pressure city and county election offices Donetsk Oblast. Volodymyr placed on opposition candidates and district coordinators from Derkach, a United Opposition does work. In Zaporizhzhia the Party of Regions. candidate in district No. 41 and Oblast, UDAR candidate Olek- According to BYuT-Bat- proactive participant of protests sandr Volkov resigned from the kivshchyna MP Volodymyr arranged by Chornobyl victims campaign in FPTP district No. Bondarenko, “Social Services in in Donbas last year, was sum- 80. He said that his nomination Kyiv have hired a hundred new moned to an interrogation and is posed a threat to his successful workers each at public expense. accused of beating a student and business. They will deliver gift packages to forging documents that entitled Reports of pressure on aver- people as if from the local civil him to privileges as a Chornobyl age activists are mounting, com- service while promoting specific victim. candidates.” A similar practice is BYuT’s MP Mykhailo Sokolov Reports of pressure being used in Bukovyna. Accord- recently found himself linked to ing to UDAR’s oblast office, so- the case of terrorists who set on average activists are cial workers collect information four bombs in Dnipropetrovsk in mounting, coming from on political preferences from spring 2012. The investigation people in local villages and cam- found that the two suspects virtually all parts of paign for the party in power. charged with arranging the ex- Ukraine on a daily basis Based on the data collected by plosions worked as Sokolov’s ad- social workers, opposition party visors, and their letter with de- ing from virtually all parts of supporters are likely to be re- mands was allegedly printed at Ukraine on a daily basis. They moved from the voters’ register his office. Sokolov has already include interference with the under various excuses. received two invitations to inter- distribution of promotion leaf- rogations and ignored one. As a lets, attacks on opposition party Are you looking for result, the SBU has threatened to tents, blocking of promotion cars trouble? bring him in for interrogation by by the road police, attempts at Administrative pressure takes force. psychological pressure on aver- many forms—intimidation by Valentyn Koroliuk, a United age activists, recording of their law enforcers, the assault of op- Opposition candidate from dis- personal data and much more. position candidates, civil activ- trict No. 154 in Rivne Oblast, In some cases, the police are di- ists and campaigners by uniden- was recently threatened with rectly involved in such efforts— tified assailants, forced registra- physical harm, according to Bat- “unknown men of athletic ap- tion of teachers and other public kivshchyna. On August 27th, an pearance” do the dirty work sector employees for the Party unknown assailant tried to break while the police are conveniently of Regions, abuse of administra- into the apartment of Svoboda’s absent. A group of unknown men tive leverage for propaganda Andriy Bortnik who is running in attacked activists while they purposes, and “courtesy letters” district No. 71 in Rivne Oblast. were distributing promotion in which campaign contribu- Oleksiy Davydenko, UDAR’s brochures for candidates other № 16 (39) october 2012|the ukrainian week|25 Politics|voter bribery

Public trust: With the people Dnipropetrovsk City Organization of the Party of and for the people. Serhiy Regions: Earned with your mind Shakhov Stipend from Yevheniy Morozenko than Speaker Volodymyr Lytvyn venient information from reach- be at least UAH 60-70mn each. in the district in Zhytomyr ing voters. There is no reason to Over UAH 50mn was allocated Oblast where he is running. The expect that this pressure on the from the budget before the elec- brochures were mostly about opposition and the media will tion for social projects in Kyiv Lytvyn’s role in the passing of stop. These actions are likely to Oblast district No. 97 where Ser- the notorious language law. mount and the arsenal of tools is hiy Fedorenko is running. He is Lytvyn’s brother Petro was rec- likely to expand as Election Day the leader of the Party of Re- ognized among the attackers. He draws nearer. So far, the govern- gions’ Brovary office, better denied allegations of his involvement has not yet exploited the known as Premier Mykola Az- ment in the incident. Later, the loyal judiciary for election pur- arov’s massage therapist. activists were arrested, brought poses to the extent that it could. The Party of Regions does to the police station and beaten not seem to be concerned with up again. Bribing taxpayers at the fact that its candidates are In Rivne Oblast, an unknown their own expense using taxpayer money for elec- man sprayed something on a Incentives from pro-government tion campaigns on a massive promoter of the United Opposi- candidates include conventional scale. tion. She was taken to the hospi- bribery at the candidates’ ex- Sometimes budget funds are tal with symptoms of poisoning. pense and speculation about ef- not enough and the government On July 30th, unknown assailants forts to get funding for social burned the car of Iryna Zolotar- projects in candidates’ districts iova, head of the United Opposi- that are already in the budget. government uses tion’s campaign office in Izmail, The candidates use taxpayer administrative leverage Odesa Oblast. On August 8th, a money to open playgrounds, buy fire broke out in the garage of medical equipment for hospitals to force business owners Maksym Volkov, leader of the Iz- and fix roads, advertising as to pay for its candidates’ mail Youth Union, a member of their personal contribution what the United Opposition. An un- is in fact merely the fulfilment of campaigns known man assaulted Taras government commitments. Diachenko, an UDAR activist in This practice is most com- uses administrative leverage to Dnipro District, Kyiv. On Sep- mon in districts where candi- force business owners to pay for tember 9th, a group of unidenti- dates come from families that its candidates’ campaigns. In fied people attacked activists have power but no extensive particular, local authorities sent who were spreading leaflets business assets of their own. “courtesy letters” to company about the crimes of the ruling They are reluctant or cannot af- owners with requests to transfer party. The attackers insisted that ford to pay their own money for a certain amount to a specified the activists accompany them to the election campaign. Apart bank account. The most common a police station while refusing to from the case with Volodymyr purpose listed in such letters was provide any police ID. A group of Lytvyn who got over UAH 80mn “social projects” for developing policemen and Berkut special for a campaign in his district, Ar- the oblast, county or town. One forces crashed a campaign tent tem Pshonka and Oleksiy Az- telling example was reported by for Batkivshchyna and injured arov, the sons of the Prosecutor Svoboda: on September 14, 2012, activists and a Batkivshchyna General and Premier, have sig- a businessman from Dniprope- candidate from a FPTP district. nificant public funding for cam- trovsk Oblast released copies of The intimidation of average paigns in their districts in Zapor- invoices demanding his contri- activists stems from the govern- izhzhia and Donetsk Oblast. bution to fund the election cam- ment’s desire to prevent incon- Both allocations are estimated to paign of the Party of Regions and 26|the ukrainian week|№ 16 (39) october 2012 voter bribery|Politics

The Party of Regions: Socio-cultural fair supported by the office of MP O. Plotnikov

With kindness to people: Halyna Hereha the Communist Party. He was campaigns, some candidates THE PARTY OF Administrative Court of Appeals told that his business would be have been more creative. They LIFE: Pro-gov- ruled that Davyd Zhvania, a closed down if he refused to pay pay for a village or city day cele- ernment candi- FPTP candidate in district No. dates convince the bill. He did so but indicted bration, take people to football voters that all 140 and a turncoat, bribed voters the true purpose of the transac- games, offer free haircuts or they need, from by distributing free school uni- tions in the invoices as a re- breast examinations, fill cell water and pota- forms to students. The ruling sponse to the intimidation by the phone accounts, give out free toes to culture, was sent to the Central Election two parties. Invoice No. 31 eyeglasses, distribute envelopes is the result of Commission, which merely is- dated July 13, 2012, paid by with money (in amounts rang- their devoted sued a warning. Meanwhile, in the Elegia company says that ing from UAH 50 to 300) or efforts the case of the premier’s son, the the transfer was made “To gifts for school or pre-school court was forced to deny that Az- cover pre-election promises students. arov Jr. had engaged in bribery by the Party of Regions and So far, only one instance of using public funds, and dropped the Communist Party of voter bribery has been officially the charge immediately after it Ukraine to install a water recorded by the court. Odesa’s was filed. supply system in Pivdenne village” (invoice SF-00067 dated May 28, 2012) and “To cover court fees for the election campaign of the Party of Regions and the Commu- nist Party of Ukraine under the order dated September 16, 2012, case No. 5005/2590/2011” (see copy of the invoice). Shortly there- after, the businessman was summoned to the SBU office in Pav- lohrad where he lives. Before the official election campaign kicked off, no one could hold candidates liable for bribing voters. Under the law, bribery is classified as “charity” until nominees get their candidate certificates from the Cen- tral Election Commission. Still, most candidates have continued to bribe potential voters even after the election campaign started. They are doing so through hastily registered charitable funds, making the cause perfectly legitimate. In addition to distributing gift packages familiar from earlier election № 16 (39) october 2012|the ukrainian week|27 Politics|opinion Voting Wrong…

inally, someone has uttered the sacramental leftist liberals. “Society should be ruled by a special words I have been waiting for so long. “This class whose interests do not come down to its nar- country needs censored democracy” a leading row class interests,” he wrote in the article that as- FUkrainian economist said in an interview. Be- tonished the Internet community. According to low, I will explain what “censored democracy” is, Žižek, this special class should possess the knowl- but now I sadly admit: after a good laugh at sarcas- edge that will allow it to “overcome the initial defi- tic appeals for grandchildren to hide their grannies’ ciency of democracy which is the non-existent ideal passports to keep them from voting in elections or image of a well-rounded citizen.” In other words, posters of an old woman saying that her cat will in- average voters are not capable of taking reasonable herit her house after she found out that her grand- decisions. They lack the necessary knowledge and son voted for the Party of Regions, the public and competence as well as the habit to think and re- some opinion leaders have begun to think that de- flect. mocracy, as it is, does not work in Ukraine. The modern intellectual struggling to save himself Using their free right to vote, the electorate keeps from ultimate cynicism under the pressure of choosing the wrong people. Ukraine has bad luck mounting entropy of life is hardly someone to with presidents. Mayors and MPs are even worse. judge and condemn. The question is how reason- Sadly, it is becoming clear that we may once again able it is to use his pains as the ground for general trade our birthright for a mess of pottage. Some- conclusions. Frankly, I am not happy with the thing should be done to prevent this. preferences of the mob, lumpenproletariat, the Doubt about democracy as a universal tool to orga- crowd… negative words to refer to the “wrong nize a state and society is nothing new. The last Ukrainians” are aplenty. Yet, what are the criteria time it arose was in the by which the right ones 20th century when the the search for criteria are distinguished from most terrible political re- the wrong? A long Author: gimes in the world as- to distinguish the right proven fact is that ethnic Yuriy cended to power demo- voters and isolate the purity is a myth and na- Makarov cratically. Leo Strauss, a tionality resides in one’s German-American polit- wrong is moral and mind, not in his genetic ical philosopher and the code. father of neo-conserva- intellectual capitulation Is it money? In that case, tism, offered a cynical from the very beginning – all rights to vote should diagnosis of democracy: immediately go to the people are not equal, not tempting, yet erroneous “smart” ones in their all people can be respon- luxury cars. Is it resi- sible for the future of their country, therefore dency, then? But we know how those who have the chosen ones, who understand supreme in- lived in their hamlets for three to four genera- terests of the nation and humanity, are entitled tions keep voting for every new Yanukovych. to making decisions under the guise of liberal de- Perhaps, we should come up with a voter-eligibil- mocracy. Numerous attempts to make his words ity test? sound politically correct and interpret them so that I fear that the search for criteria to distinguish the they would not hurt liberals’ noble feelings fol- right voters and isolate the wrong is moral and intel- lowed. lectual capitulation from the very beginning – However, research has found that voters become tempting, yet erroneous in its foundation. Not be- reasonable after their annual income per person ex- cause this runs counter to John Locke’s natural and ceeds USD 5,000, while those who earn less are will- unalienable title, but because this exempts people ing to choose a Lukashenka and tolerate political who think and reflect from the need to reach under- police and “ministries of truth.” Hence the concept standing and social dialogue – in fact, from any of returning to mandates for participation in indi- communication at all. All they need to do is keep rect ruling of a country, such as entitlement to vote performing their useful, highly-intellectual acts. based on residence (to remove immigrants from the Somehow, I still believe that Ukrainians are not scene) or property ownership like in medieval Eng- dumb. Their repeatedly embarrassing choices are land, which is not far from the antique division into a result of the crowds’ limits as much as it is the re- voting citizens, idiots (which literally stands for sult of the lack of a trustworthy supply from the someone not entitled to vote in Latin), and slaves. elites. This is what the indifferent must realize in The ultimate blow came recently from Slavoj Žižek, place of looking for excuses in intellectual tech- Slovenian philosopher considered the flagman of niques. 28|the ukrainian week|№ 16 (39) october 2012 council of europe|Politics has issued similar statements from her prison cell. Do you share this view? Thorbjørn Jagland: This is a very unfortunate consequence of recent events in Ukraine. It is possible that the “Trial against Tymoshenko should not have been elections can be technically free and fair, but not respected politi- launched at all” cally, because of the fact that the main opposition leaders are ex- Ukrainian parliament adopted two cluded from the process. This is new articles of the Criminal Code an unfortunate consequence of that impose criminal penalties for the situation that has been cre- political activity.W hat will the ated by bringing Tymoshenko to Council do about this? court instead of having a real po- First of all, you have to note litical debate in the parliament, that Ukraine recently adopted a so that the people could decide new Code of Criminal Procedure and give their judgment about the that took into account nearly all of whole thing. our recommendations, so productive dialogue is possible. Unfortu- U.W.: How is the CoE’s Action Plan nately, the two articles that you for Ukraine being implemented? referred to still appear in the I launched this action plan one Criminal Code. The whole mess year ago. There has been a little around the [Yulia – Ed.] Tymosh- progress, but there are also some enko case stems from these two controversies. Interviewer: horbjørn Jagland, Secretary- articles, which made it possible to Alla Lazareva General of the Council of Eu- launch a case against her based on U.W.: Can you comment on some rope, recently visited Ukraine. political decisions. My view is that of the points that are controver- TOn the eve of his trip to Kyiv, this trial should not have been sial? Mr. Jagland spoke with The launched at all because the gas I can give you one example, Ukrainian Week about his atti- deal with the Russian Federation since we have talked about the tudes toward Ukraine’s new lan- was a purely political decision. Criminal Procedure Code, in which guage law, the work of the Ukrai- Those who wanted to dispute it more or less all our recommenda- nian judiciary and parliament, and should have done so in the parlia- tions have been taken. But there the prospect of Strasburg imposing ment and not brought it to court. has to be a follow up. For instance, sanctions against Ukraine. If we look at the realities of the by revising the law on the Prosecu- time, Tymoshenko was under tor’s Office, which still has not been U.W.: The Council’s latest resolu- heavy pressure because the Rus- done. That is very important, be- tion on Ukraine, adopted by the sians were threatening to stop gas cause it has to do with the power of Parliamentary Assembly in Janu- delivery to the West. Now, there the Prosecutor, which as we see it ary, was quite a firm and demand- could have been an excellent op- has to be reduced. So the role of the ing text. Among other things, it re- portunity to let the people judge Prosecutor’s Office has to be referred to possible sanctions if the this for themselves by letting Ty- formed and we are going to discuss Ukrainian authorities continue to moshenko run for president. Un- the issue in Kyiv. use the judiciary for political pur- fortunately, the Central Election poses. What do you think about Committee had another view. The U.W.: As for the parliamentary the effectiveness of sanctions in two articles to which we are refer- elections inU kraine, how should general? Do you think that sanc- ring here have allowed the author- election observation by theC oun- tions will be adopted against ities to act in an inadmissible way. cil of Europe be organized? Ukraine? There will be election observa- In general, I cannot rule out the U.W.: So the Council of Europe will tion by the Parliamentary Assem- possibility of sanctions against any actually come back to these two bly. And it will be coordinated member country that does not com- articles, section 364 and section with the OSCE [Organization for ply with its membership obligations 365 of the Criminal Code? Security and Co-operation in Eu- or refuses to receive assistance Yes, absolutely. We believe that rope – Ed.]. There will also be aimed at helping them comply. As they should be changed. pre-election observation headed for Ukraine, we are trying to pro- by Andreas Gross, leader of the so- vide assistance to make the neces- U.W.: Elmar Brok, who is the cialists group. The mission will in- sary reforms. We will soon see chairman of the Foreign Commit- clude both reporters of the PACE whether the promised changes are tee of the European Parliament, Monitoring Committee. It is very possible or a political will to reform stated in an interview withT he important for us to anticipate the exists. That will determine our sub- Ukrainian Week that he felt the situation before the elections, to sequent course of action. elections were undemocratic from see how candidates and political the start becauseT ymoshenko parties organize their campaigns U.W.: Despite the recommenda- and Lutsenko were not able to and make sure all the participants tions of the Council of Europe, the take part in them. Tymoshenko have equal access to media. № 16 (39) october 2012|the ukrainian week|29 economics|doing business in ukraine Ukrainian business: a fraud of the century All Ukrainians wanted to cast off the yoke of the commu- Why Is Ukraine a Cage nist dictatorship and the planned, ration-based socialist economy. What did they obtain after succeeding in doing so? Most people did not receive a better life. The “reforms” were such that fraud and embezzlement of public property were not just permissible but even prestigious. for Entrepreneurs? How can Ukrainians come to terms with this fraudulent and largely criminal business? Most importantly, how The profits were reaped not by Entrepreneurship should be dis- can things be put back on the right track? Without a free enterprises that were economical, tinguished from scientific research, market and the energy of entrepreneurs, Ukraine will innovative or otherwise economi- the creation of innovative products, continue to eke out a miserable existence. In this series of articles, I attempt to expose the main problems faced cally efficient, but by those whose design, branding and building a typ- by Ukrainian business and show what alternative paths products were sold at prices cen- ical technological process. All these of development exist. This article is about the impor- trally fixed at a level higher than unit elements are prerequisites for man- tance of free entrepreneurship for the economy and cost. Meanwhile, some other enter- ufacture and business, but without how it is in Ukraine. prises were forced to sell their prod- entrepreneurship, they remain on ucts below unit cost, so they were paper only. unprofitable according to the eco- This special entrepreneurial t is often said that privately owned nomic plan. process yields better products, the companies seek only their own Prices were fixed in a centralized highest productivity, minimum benefit, and the country's econ- fashion, which was the fundamental costs and the best supply/demand Iomy can do well without them. distinct trait of the planned econ- ratio. Following this line of reasoning, omy. Profits were reaped by the Entrepreneurial profit is, as a state-owned enterprises are the only state and the state then distributed rule, short-lived. Its maximum value ones that secure the welfare of the them among certain economic enti- is achieved at an initial stage when entire nation. Most Ukrainian politi- ties. As the sole proprietor of all new production ideas are imple- cians and government officials sub- profits, accumulated capital and in- mented or a new good is manufac- scribe to the idea of seeking an opti- vestments, it did not need other en- tured, as long as it is unique. Author: mal balance between the two types tities willing to seek and obtain With time, others begin to mas- Volodymyr of companies. them. That system was fundamen- ter the new production methods, Lanovy, Another widespread opinion is tally flawed and could not be suc- production volume grows and PhD in that private companies require effi- cessful, because it failed to stimulate higher demand for such innovations Economics, cient owners. It follows that, lacking entrepreneurial activity, which is the is met. Then the size of the entrepre- President of such owners, companies must re- human initiative that leads to the neurial profit decreases, while other the Centre for main property of the state. There is production and realisation of inno- components of net profit (rent, in- Political also the well-known view that all vative consumer values, the applica- terest, payroll and depreciation) re- Reform forms of property need to be sup- tion of innovative production tech- main virtually unchanged. ported and developed. Is this really nology and/or the opening of new Entrepreneurial profit disap- true? Evidently, it is not that simple. markets. pears completely when organiza- The means of production and la- tional and technological improve- Entrepreneurial profit as bour have no sense without entre- ments spread throughout the indus- common good preneurial ideas and actions. It is try and when no one has an If there is no economic profit, there only jointly that means of produc- individual advantage in terms of is no accumulation of capital or in- tion, labour and the organisational economy, or when a new product vestment nationwide, and this efforts of entrepreneurs create value begins to be manufactured by all means that the conditions for and become part of it. Land and competing companies and con- growth in production, more jobs monetary capital that are involved sumer demand is fully met. and R&D are not in place. This is in creating value also need to be fac- By standing still, an entrepre- axiomatic. Profitability can be found tored in. neur risks losing everything and go- only in a market economic system Some companies receive profits ing bankrupt. with private property. exclusively due to special entrepre- There was no economic profit neurial qualities, and these profits Entrepreneurial activity under feudalism and previous social are the difference between revenue as an enemy of the systems. The few exceptions were and production costs after interest planned administrative obtained by confiscating the prop- has been paid on the capital re- economy erty, goods and labour of peasants, ceived. Without ownership of a com- Why did socialism remove entrepre- urban workers and scientific institu- pany, a person will not show entre- neurs, and can the CEOs of soviet tions and by expropriating private preneurial qualities. Nor will he plants and factories (and chiefs of capital accumulated in tsarist Rus- channel his own and borrowed ministries and agencies) be called sia. The soviet government also money to establish a new enterprise entrepreneurs? In some cases, so- claimed land rent and in-kind rent, and develop it. viet directors exhibited entrepre- exploited the military and convicts Notably, entrepreneurship plays neurial qualities: they reequipped who did penal labour and earned in- an active, creative part in the eco- their plants, implemented better come on war indemnities and the nomic process unlike other, passive technology, serialized new products, lend-lease in WWII, etc. components. optimized production capacity, etc. 30|the ukrainian week|№ 16 (39) october 2012 doing business in ukraine|economics SLUMPING BUSINESS Employment in small businesses, 2008-2010 Why Is Ukraine a Cage 7000 Number of people employed, in thousands Including hired labour, in thousands 6000 6308 6451 5000 for Entrepreneurs? 4000 4960 3000 But they never became entre- 3745 3666 preneurs. First, they did not receive 2000 3034 any of the profit resulting from their innovations. Instead, they only re- 1000 2008 2009 2010 ceived their salaries which, truth be 0 told, included various bonuses and Source: State Stati ics Committee stimuli, special one-time payments for technical upgrades and personal Dynamics in the number of legal persons in 2000-2011, % of previous year benefits awarded by ministries. 25,0 Aive In other words, such improve- Inaive ments could never materialize with- 20,0 out the consent of the owner (the 15,0 state, or its ministry), which viewed plant directors exclusively as hired 10,0 labour. Second, the changes made at 5,0 state-owned enterprises were not, in 0 essence, innovations because they only replicated — in a planned econ- -5,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 omy — the achievements of other Source: State Regi ration Service entrepreneurial entities, which were normally located abroad. Typically, Dynamics in the number of physical persons in 2000-2011, % of previous year they did so inaccurately, because 30,0 foreign models often had to be mod- Aive ified or altered. 25,0 Inaive In general terms, three waves of 20,0 technological import may be singled out: during industrialization; after 15,0 WWII (American lend-lease and 10,0 war indemnities imposed on Ger- 5,0 many); and in the 1970s and 1980s, when a strong flow of petrodollars 0 after crises in world energy allowed -5,0 the USSR to purchase new equip- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ment in the West. Source: State Regi ration Service Soviet constructors who designed products that were serialized ministrative, pricing at work. In this preneurs who have not achieved by the industry, from footwear to case, price is an external factor for a similar results incur production and cars to ships and nuclear reactors, specific enterprise and a common marketing costs that are on the level were copied from foreign speci- quantity for every player, indepen- of market prices or higher, and thus mens, including those procured by dent of individual costs. their activity does not bring that the soviet special services. Second, entrepreneurial profit much profit. emerges only in companies that out- In this case, entrepreneurs are WHY Is the profit-oriented perform others by installing newer content with bonuses for special entrepreneurial economy or more productive equipment, us- managerial functions (formulating NOT working today? ing better or cheaper materials or the overall concepts, finding markets, Several prerequisites must be in organizing the production and ad- landing large contracts, involving place for a profit-oriented entrepre- ministrative processes more effi- highly qualified CEOs) or receive rent neurial economy to function. First, ciently. payments as owners of land, miner- prices must not be set on an individ- Another source of profit is pric- als, buildings, communications and ual basis. Instead, an average price ing: when an entrepreneur first so on. The corresponding expendi- should result from the interaction of comes out on the market with a fun- tures are, of course, part of produc- all sellers and buyers of a certain damentally new product, he sets a tion cost. Entrepreneurial profit is product on the market. This price price that is much higher than that only one part of all profits received by correlates with average costs in the of traditional products. company owners, so when it disap- industry and goes up or down de- The same thing happens when a pears, other components remain. pending on the supply/demand ra- businessman opens new markets for Third, entrepreneurship brings tio. This is market, rather than ad- his traditional products. Other entre- together components of the manu- № 16 (39) october 2012|the ukrainian week|31 economics|doing business in ukraine facturing process and marketing only hamper him and will hurt the objectively be able to set a much procedure and secures the operation economy in general. higher price compared to products of a company established for this Fifth, anyone can become an en- in the same group on the same mar- purpose. Success depends on how trepreneur, but he must have an in- ket. This price will reflect the real well the components are made to fit tellectual, businesslike, socially and value and will include entrepreneur- together, as well as the choice of politically independent personality. ial profit as payment for innovation. equipment, labour and technology. This enables a businessman to carry However, a monopoly on innovation A true entrepreneur lives by in- out an objective financial analysis of is short-lived in conditions of a com- novating. Innovations are what en- existing production facilities, do petitive market economy. ables businesses to put products on marketing research, select the best Other producers also desire to the market whose value greatly ex- new ideas in terms of design, tech- receive innovation-generated profits ceeds that of similar products made nology and production and invite and will try to start producing the by other suppliers. Products of this highly qualified specialists. unique product themselves as soon kind bring the owner temporary en- This kind of freedom is impossi- as possible. The growing supply will trepreneurial superprofits. ble in an unfree, closed, undemo- Fourth, the entrepreneur is not, cratic, utterly bureaucratic and cor- The entrepreneurial sector for all intents and purposes, a credi- rupt society. It also follows from this tor, investor or financial partner. A that a government employee, a law in Ukraine is very narrow, person who seeks to accumulate and enforcement officer, a serviceman, a sparse and marginal save money, receive interest on capi- tax inspector, etc. cannot be an en- tal and make successful temporary trepreneur. Where people like that meet the spiking demand, and a mo- investments never turns into an en- do “business” social goods are em- nopolistically high price will go trepreneur. He is a financier. The bezzled, bribery is forced upon citi- down. In this way, the price will be- goal of an investing financier is to re- zens and criminally punishable gin to reflect production costs. Thus, duce the risks of capital placement abuse of office is rampant. More- competition destroys innovation- (if possible), diversify investments, over, if an enterprise is launched generated superprofits, and this is a pull out of unsuccessful investments and controlled by bureaucrats who positive phenomenon. The initial in good time and move his money cannot possibly have entrepreneur- monopolistic supplier will be forced elsewhere. A person who has ac- ial qualities, it will not bring profits. to come up with new types of prod- crued savings is primarily interested In other words, n most cases it is im- ucts. in investing in property, stocks, land possible to adjust Soviet enterprises Artificially created and natural and whatever else might secure the to a competitive market economy. monopolies and their protection un- highest interest, dividend or rent. Sixth, a profit-driven entrepre- der the government, which was part None of the above pertains to neurial economy requires a compet- and parcel of the socialist economy the entrepreneur. His task is to orga- itive environment and a free market. (and could not be otherwise because nize and improve a specific busi- The entrepreneur has to seek profits the state, as the sole owner, also ness. Thus, if he has to also search that arise from new combinations craved for monopolistic superprof- for money needed to implement his and improved business. If he is a its) and survives, to an extent, in the business idea, solve tasks to mini- monopolistic supplier of a special current Ukrainian realities. How- mize investment risks, etc., it will product on a certain market, he will ever, the above suggests that this is a road to degradation. Moreover, entrepreneurial activity alone – without the government's involvement LACKLAC OF ECONOMIC FREEDOM to support competition and overcome monopolism – may fail to pro- Property Rights 30 97 duce positive social results and may, RULEU OF LAW to the contrary, lead to economically Freedom From Corruption 24 136 unacceptable business structures and skewing the market. 90 Seventh, society must work out LIMITED Government Spending 78.2 a tolerant and reverent attitude to GOVERNMENT Fiscal Freedom 29.4 154 entrepreneurs, both at the everyday and state level. This is the starting point for the mental and physical at- 150 Business Freedom 46.2 titude of government officials, tax REGULARE TORY inspectors and policemen to busi- Labour Freedom 51.2 128 EEFFICIENCY nessman as a social group and to en- Monetary Freedom 67.7 154 trepreneurial expenditures and profits (including superprofits). If these financial resources that entre- 49 Trade Freedom 84.4 preneurs have are viewed as unde- OPENOPE MARKETS Inve ment Freedom 20 155 served, unfair and earned at the cost of “exploiting the working class”, Financial Freedom 30 132 taxes will be superhigh; policemen and inspectors will be unduly bi- Ukraine’s total score 46.1 Rank (1-179): 163 ased; and the investment and busi- Source: Heritage Foundation 2012 Index of Economic Freedom ness climate will be unfavourable. 32|the ukrainian week|№ 16 (39) october 2012 doing business in ukraine|economics Unattra ive erty. Moreover, since Ukraine be- Dynamics of Ukraine’s inve ment attraiveness came independent in 1991, sky-high bank interest rates have made bank 3.25 3.39 ness ness 3.20 loans unaffordable. Bank loans do

ve 3.14* 3.08 3.40 3.28 not account for even one-tenth of ai 3.0 the demand in the national econ- 2.64 2.56 omy. The annual increase in credit

e ment attr e ment 2.5 resources has been at a mere UAH nv 2.56 2.57 2.19 60-70 billion in the past several 2.22 2.22 years, which is less than five per cent Index of i of Index 2.0 3rd qtr 4th qtr 1 qtr 2nd qtr 3rd qtr 4th qtr 1 qtr 2nd qtr 3rd qtr 4th qtr 1 qtr 2nd qtr 3rd qtr 4th qtr 2nd qtr of Ukraine’s GDP. 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 But independent entrepreneurs *Index of invement attra iveness (highe value 5.0) Source: European Business Association have received virtually none of this money – it is distributed among Social acceptance and intoler- standard solutions encouraged. those who are close to the governance have to be based on the under- Thus, it should not come as a sur- ment, own financials institutions standing that entrepreneurial profit prise that college graduates look for and who are not entrepreneurs by originates from labour. In contrast, jobs only in existing organizations definition. When resources are lack- monopolistic superprofits and cor- and fail to find them. They do not ing, there is no sense to seek innova- rupt political rent generated by cer- even think about starting their own tions, manufacture new products tain businessmen must become a business. and build the necessary equipment. target of social obstruction and pu- Our country lacks the cult of in- That is the reason why there are no nitive persecution on the part of violability of a private individual and Ukrainian-made innovative goods government, law enforcement and the protection of personal informa- to be seen. judicial bodies. This may not be an tion. The rights and freedoms of The entrepreneurial sector ac- easy thing to do, because profits, just people are not a supreme value like counts for an unacceptably low part like money, do not smell. in the Western world. of the national economy and is The entrepreneurial sector in mostly marginal, which hampers the Ukraine as a cage for Ukraine is very narrow, sparse and profitability and progress of entrepreneurs marginal. The authorities view it as a Ukraine’s economy. An extremely Does Ukraine possess the above fea- place for small-scale flee market heavy burden is placed on the na- tures and meet the requirements set transactions and related industries tional economy by unprofitable for a profit-oriented entrepreneurial (delivery, transport and financial companies – at least 45% of the total economy? A hostile attitude to pri- services). The entire system of finan- number in some years and 56% dur- vate entrepreneurs – independent, cial and legal relationships between ing the crisis in 2009. This means innovative and creative – is undis- the authorities and entrepreneurs is that true entrepreneurs did not have guised and widespread in Ukraine. built on this foundation. access to such companies. It is also The public has formed an image of It is still “permissible” to engage worth noting that the lion’s share of in impudent and greedy fraudster. in individual activities that involve profits is secured by the financial Most people perceive the state as the providing various intellectual and sole benefactor that guarantees jus- other professional services. There tice and develops the manufacturing are few other sectors where entre- Society must work out industry. Mentally, Ukrainian soci- preneurial zeal can be seen: residen- a tolerant and reverent ety tolerates entrepreneurs as the tial construction and business prop- unnecessary addition to the free- erty development, entertainment attitude to entrepreneurs, doms and property rights enjoyed centres, resorts, shopping malls, etc. both at the everyday and by the citizens. Tax inspectors and Due to destructive privatization policemen have been set on entre- and government-backed elimina- state level preneurs like hounds. Fiscal pres- tion of competition, the new owners and credit sector of the economy. sure has cut off energy supplies to of industrial, communications and Approximately one-third of enter- entrepreneurs. agricultural enterprises inherited by prises in the industrial sector make Only those who cooperate with Ukraine from the USSR never any profit, and of these no more officials and those who have billions turned into entrepreneurs. They are than 10 per cent are entrepreneurial, command respect because they can content to receive other types of net according to my calculations. nicely reward a judge or a journalist. profits – corrupt and monopolistic Another roadblock is the non- Entrepreneurs are not being raised profits, various subsidies and soft market character of Ukraine's econ- or educated in Ukraine. Specialized loans, rent on mineral mines and omy: prices are set by the authori- colleges and institutes equip stu- fertile land, etc. Thus, most of them ties, certain commodities are regu- dents with technological expertise continue to lose their markets and lated in an administrative fashion; and knowledge of economic rela- revenue. the central government interferes tions in their respective industry Unfortunately, entrepreneurs with the distribution of financial re- (manufacture, construction, trans- are unable to obtain sufficient finan- sources; the government puts report, commerce, tourism, the res- cial means to develop production. straints on foreign economic activ- taurant and hotel business, design, The state is of no help, not even in ity and so on. Therefore, Ukraine etc.) but not with the skills needed R&D and socially significant proj- has found itself in an impasse — for entrepreneurial activity. Neither ects. Instead, it sets tax traps to there is no future without entrepre- are individual approaches or non- freeze revenue and confiscate prop- neurship. № 16 (39) october 2012|the ukrainian week|33 Economics|Brand building Brand New sons: non-branded companies typ- Emerging-market companies ically earn gross margins of 3-8% are trying to build global brands and are constantly at risk of being undercut by cheaper rivals. Branded firms enjoy fatter margins (15% or more) and more loyal customers. Yet becoming a global brand is exceedingly hard. Emerging-market firms must struggle with limited budgets and unlimited preju- dice. GfK, a consumer-research company, found that only one- third of Americans were willing even to consider buying an Indian or Chinese car. Wipro, a successful Indian out- sourcer, points out that its total sales are roughly the size of IBM’s marketing budget. Only four emerging-market brands make Interbrand’s list of the world’s 100 most valuable: Samsung and Hyun- dai of South Korea, Mexi- co’s Corona beer and Tai- wan’s HTC. How can others make the leap? The New Emerging-Market Multinationals, a book by Amitava Chattopadhyay, of INSEAD, and Rajeev Batra, of the University of Michigan’s Ross School of Business, offers some clues. First, they must exploit their two basic advantages—economies of scale and local knowledge—to expand into new markets. Some have become so dominant in their home markets that they can hardly avoid mericans can stop worry- supplement their meagre stipends. expanding abroad. Turkey’s Arcelik, ing about China’s plans to It spent years building its busi- for example, controls 50% of the take over their country. ness in China. But then in 2005 it Turkish market for domestic appli- The worst has already hap- burst onto the global scene—and ances and is now expanding rapidly A th pened: on July 25 Lenovo, a Chi- rattled America’s Congress—when in Europe. Lenovo gets 42% of its nese computer firm, announced a it bought IBM’s ThinkPad per- sales from China and has 40 times deal to sponsor the National Foot- sonal-computer business. The more stores there than Apple has ball League. America will continue company is now the second-largest worldwide. Some firms use their to provide muscle-bound line- PC maker in the world and hopes understanding of local markets to backers, but the Chinese will pro- to grab the top spot from Hewlett- expand globally: India’s Marico vide the clever laptops and desk- Packard soon. produces shampoo suited to the tops that make their tussles possi- Lenovo is one of several emerg- highly chlorinated water that flows ble. ing-market firms striving to become from Middle Eastern taps. Others Lenovo was founded in 1984 by global brands. They are no longer move swiftly to exploit opportuni- 11 engineers at the Chinese Acad- content to do the grunt work for ties: Turkey’s Evyap established it- emy of Sciences who wanted to Western firms, for two simple rea- self as a leading seller of cheap 34|the ukrainian week|№ 16 (39) october 2012 Brand building|economics soaps and scents in Russia when the ments that keep ice-cream soft (for brands is complicated and demand- Soviet Union collapsed. impatient gluttons). Ranbaxy, an ing: people who made their fortunes Messrs Chattopadhyay and Ba- Indian drug firm, has developed manufacturing things may not be tra argue that emerging-market controlled-release systems that al- suited to the airy-fairy world of companies need to add three more low patients to take only one pill a brand management. ingredients to these basics. The first day instead of several small doses. is focus: they should define a mar- The third ingredient is old- Will the next Toyota be ket segment in which they have a fashioned brand-building. Emerg- Chinese, or Indian? chance of becoming world-class. ing-market bosses must grapple Still, there is little doubt that emerg- Natura Cosméticos, a Brazilian cos- with many traditional branding ing-world brands are on the rise. Non-branded metics-maker, zeroed in on the puzzles. Should they slap the com- companies typically HTC is one of the biggest-selling market for “natural” cosmetics with pany’s name on the product (as earn gross smartphones in America. Huawei, a ingredients extracted from the rain- Toyota does) or another name (as margins of Chinese firm, has just overtaken forest. Lenovo focused on comput- Procter & Gamble does with its sta- 3-8% Sweden’s Ericsson to become the Branded firms enjoy ers for corporate clients before ex- ble of brands, from Gillette razors fatter margins of world’s largest maker of telecom- panding into the consumer market. to Pampers nappies)? How can munications equipment. BYD, an- 15% Haier, a Chinese maker of dish- they market themselves effectively or more other Chinese company, produces washers and fridges, focuses on in multiple countries without bust- 85% of the world’s lithium-ion bat- consumers that many of its rivals ing the budget? Lenovo has hired teries for mobile phones. neglect, such as students. an expensive American marketing Emerging-market firms are The second ingredient is inno- boss, but saves money by doing evolving in much the same way as vation: firms need new products most of its advertising work in Japanese firms did in the 1960s and processes that generate buzz. Bangalore. and 1970s, from humble stitchers HTC produces 15-20 new mobile- It is easy for companies to botch to master tailors. In 1985 Philip phone handsets a year. Natura re- brand-building. The quickest way to Kotler of Northwestern Universi- leases a new product every three build a brand is to buy one—but ty’s Kellogg School of Manage- working days. Haier keeps produc- bought brands can be difficult to in- ment observed that Japanese ing new ideas such as fridges with tegrate (as Lenovo discovered with companies had shifted from “in- locks on them (to keep dormitory IBM’s ThinkPad) or can take a long © 2012 The juring the corners” of their West- mates from snaffling your tofu), time to pay off (as Tata Motors is Economist ern competitors to attacking them compact washing machines (for discovering with Jaguar). Building a Newspaper head-on. The same pattern is be- clothes for pampered Japanese brand from scratch can take de- Limited. All ginning to repeat itself, but on a pets) and freezers with compart- cades. And managing a portfolio of rights reserved much larger scale. neighbours|ukraine-eu Jerzy Buzek: “The most convenient and successful way for Ukraine to resist Russian influence would be to sign the Association Agreement”

Interviewer: n 2009, Jerzy Buzek was the Oleksandr first East European politician Pahiria to become President of the Eu- Iropean Parliament. His election victory with 555 out of 738 votes, an unprecedented majority in such elections in the history of European legislature, contributed to Poland’s success, rein- forcing its role in European policy. Jerzy Buzek was one of the first European politicians who said that the Yulia Tymoshenko case was politically motivated. Even after his term as a Euro- pean MP expired at the beginning of this year, Jerzy Buzek continues to monitor the situation in Ukraine. UW: Is the European community still hoping that the upcoming election in Ukraine will be free and transparent, and lead to a change in Ukrainian policy, after the repressions initiated by the current government against its political opponents and the pressure that has been put on the independent media? We always try to be optimis- tic and believe the governing bodies of any country when they say that they are preparing an entirely free, transparent and fair election. However, we will, of course, be observing it. We know that not everything is as it should be now, at the beginning of the campaign, in terms of freedom of media and speech, and the imprisonment of some important political figures. This is all against the rules for a democratic

and fair election. But let’s wait A ndriy lomakіn P hoto: and see. We still have another six weeks before the election and we USA or international even want to think about the ne- continue to hope that many of institutions, should the will of cessity of the imposition of sanc- the weaknesses that exist today the people be misrepresented tions against Ukraine or the de- can be eliminated. during the election? How can velopment of a Belarus scenario – Ukraine avoid the Belarusian I believe that the latter is UW: What are your views on scenario? impossible. Of course, generally possible sanctions against It’s extremely difficult for me speaking, sanctions are always Ukraine on the part of the EU, to answer such a question. I don’t possible. They should always be 36|the ukrainian week|№ 16 (39) october 2012 ukraine-eu|neighbours directed against individual per- Bіо thorities have committed to un- you expect him to influence sons, not a society or citizens. To- Jerzy Buzek is a der the framework of our rela- relations between Ukraine and Polish politician, day, however, we are thinking of participant of tions; the reforms that were nec- the EU? good cooperation and signing the the Solidarity essary to achieve the Each EU ambassador has to Association Agreement. We are movement and compatibility and cooperation of stick to the EU’s general policy. ready to help you with the trans- Prime Minister our systems. It is difficult to co- From this viewpoint, the ambas- parency of your election and cam- of Poland from operate with one another if there sador’s nationality does not mat- paign if you need advice or help. 1997 to 2001. is no compatibility. From my ter. On the other hand, the Am- We are hoping for a positive sce- He joined the perspective, three issues, namely bassador from Poland has a nario rather than a negative one. European Parlia- a transparent and independent much better understanding of ment in 2004 judiciary, far-reaching municipal the situation in Ukraine, of what UW: In his recent interview for and was elected reform and the fight against cor- as its President Ukraine needs, of Ukraine’s feel- Gazeta Wyborcza, Ukraine’s Vice in 2009 ruption, are probably the most ings regarding the EU and rela- Premier Valeriy Khoroshkovsky important ones. A strong and in- tions with it. I know Mr. Tom- admitted that the Ukrainian dependent judiciary is necessary binski personally. He is a top government was preparing for a to rebuild trust and confidence level diplomat both in Poland bad scenario in relations with between the government and the and the EU. He was responsible the EU, that could end up with citizens, and between individual for Poland’s presidency in the the freezing of economic and citizens. Rapid growth, welfare EU for six months: that was a financial contacts if the EU and prosperity are extremely dif- huge responsibility for my coun- believes in the speculations and ficult to attain when there is a try before the EU. Everything decides to unilaterally support high level of corruption. Corrup- worked out very well and Po- the opposition. Are you tion exists in every country, but land’s presidency was a great considering this scenario? the key difference is its level. It is success. A big part of that suc- I believe that freezing contacts very high (in Ukraine – Ed.). It cess was his achievement and his will not be a necessary solution, prevents prosperity, rapid efforts. From this point of view, because it is the worst possible he will be a good ambassador scenario. I believe that you Step by step, we are who understands Ukraine. (Ukraine – Ed.) can improve a lot in the electoral system, even in discovering that this could UW: The European Commission the last few weeks of the cam- simply be a game of recently launched an paign and the election will be fair investigation against Gazprom’s and transparent enough for us yanukovych with brussels monopolist schemes on the (the EU – Ed.) to decide that the European market. outcome is correct and in line growth and the creation of new There is nothing unusual with the desire and expectations jobs. In terms of municipal re- about this investigation – it can of Ukrainian citizens. In any case, form, you need new power to de- happen with any company. Some we wouldn’t want to influence the velop your country on the level of time ago we had a similar inves- outcome itself. It is not the out- municipal authorities. You need tigation against Microsoft, one of come itself that is the most impor- to create jobs and decrease un- the richest companies in the tant issue for us. What is most im- employment with the help of world that resulted in a fine of portant for us is transparency, healthy municipalities and self- almost USD 1.5bn. Our investi- fairness and the way that the governing regions. gation against Gazprom pertains votes are counted – whether the to its use of improper rules that results can be verified by your UW: For many years, Poland has do not comply with our clear and civil society and independent peo- been a promoter of Ukrainian transparent rules. This is very ple in the polls. interests in Europe. How has the important for us. Russia is trying situation changed over the past to do the same in post-Commu- UW: Do European leaders realize 2.5 years? nist Central European countries that Mr. Yanukovych is playing Actually, nothing has that are now EU members. Of games with them by promising changed. We are still strong sup- course, we resist this practice at to fulfill obligations regarding porters of Ukraine and its coop- the EU because it is the strongest democratic values and judicial eration with the EU. The general type of reaction. We’ve also had reform, but not actually doing attitude of the Polish people has troubles in Poland with selling anything to implement them? not changed over the past 2.5 some of our products to the Rus- Step by step, we are discover- years. We are deeply involved – sian market and the EU sup- ing that this could simply be a in our hearts, but not by partici- ported us in this battle. The most game. Two years ago, we be- pation in decision-making, which convenient and successful way lieved the authorities that were can only be done by Ukrainians – for Ukraine to resist Russian in- elected by the citizens of the in- in all processes in Ukraine. We fluence would be to sign the As- dependent Ukraine. This is what are, however, worried about the sociation Agreement and develop we always assume in cases where level of democracy, transparency our Eastern Partnership. We are we recognize an election to be and freedom of the media. ready to invest into Ukrainian transparent and free. Now, we gas pipelines and your economy, have considerably more doubt UW: Polish politician Jan providing our economic, judicial concerning the various reforms Tombinski is now the new EU and democratic systems are that your (Ukrainian – Ed.) au- Ambassador to Ukraine. How do compatible. № 16 (39) october 2012|the ukrainian week|37 neighbours|Election 2012 Andreas Gross: “Ukraine needs another democratic revolution”

Interviewer: Oleksandr Pahiria n September 20-21, a dele- totally dominated by money. The gation of observers from people who made the Orange Revo- the Parliamentary Assem- lution, especially its many thou- Obly of the Council of Europe sands of young supporters, are to- (PACE) visited Kyiv to conduct pre- tally disappointed today, have election monitoring and evaluate turned their backs on politics and the election campaign in Ukraine. are lost for Ukraine’s future and no- After meeting with top Ukrainian body is trying to get them back. officials, diplomats, members of Only an open and pluralistic system major political parties, NGOs and would attract them. Instead, it is reporters, they called on the Ukrai- closed and dominated by big money nian government to take a number and oligarch interests. These people of steps to ensure free elections and are fed up with this situation and pluralism in the media, and stop the would prefer to leave the country. I abuse of administrative influence. have been observing elections in The Ukrainian Week talks to Ukraine since 1990 and I’ve visited Andreas Gross, head of the delega- the country 30 times since then. My tion and Chairman of the PACE So- impression is that the parties are cial Democratic Group, about fighting for power for themselves PACE’s evaluation of the election only, not for the general social inter- situation in Ukraine. est. I’ve lost many of the illusions I still had the last time I came here. UW: Can you share your Public denies any positive element observations about the pre- about the opposition, and the oppo- election process inU kraine? sition does the same about but real — I’m very concerned about the society and real politics are much political situation in Ukraine. I’m more subtle and diverse than that. particularly referring to those who see no real political alternative. UW: How does PACE evaluate the Many citizens feel helpless, con- government’s planned crackdown fronted with the fact that politics is on independent media over the past few months? — The media situation is a disaster in Ukraine. It is a symbol of all that is wrong in the country. I’ve heard that one can even buy news on TV. All the big TV channels, other than TVi (which is now losing its audience because it has been removed from the lists of channels provided by operators) are owned by oligarchs who thus determine the state of democracy in the media. Ukrainian TV and radio has no pluralism. This undermines the essence of professional journalism and is essentially the end of journalism. At the same time, the government dominates the courts. With all this on your plate, you might think that you need another democratic revolution. But to do this, you have to wait 25 years for another generation to make it happen, because you cannot make a revolution every ten years.

UW: Does the procedure to set up

photo: andriy lomakin photo: election commissions 38|the ukrainian week|№ 16 (39) october 2012 Election 2012|neighbours implemented by the Ukrainian at that in our meeting with the Cen- Bіо mobilized civil society here, which government meet Council of tral Election Commission Chair- Andreas Gross are the assets of Russia. Since last was born in Europe standards? man. There is no way that every 1952. He co- December, demonstrations have — This looks like farce to polling station will use web cameras founded the In- been the sign of a growing and me. The composition of nearly all as it wishes. This is also an expres- stitute for Direct strengthening civil society and election commissions will be one- sion of the total failure of demo- Democracy there have been many positive de- sided. The main task of election cratic institutions in Ukraine be- (1989, Zürich), velopments in Russia. Ukraine commissions at all levels – from lo- cause you have a law that does not became member hasn’t had any. Eight years ago, cal to central – is to choose people help to organize fair and good elec- of the Swiss par- Ukraine had a revolution. Since who will act as referees, not players. tions. On the contrary, it is a source liament in then, millions of Ukrainians have In Ukraine, there are too many of confusion and conflict, and may 1991, repre- become disillusioned and turned contribute to the election’s lack of sented Switzer- players on the commissions. There- land at the Coun- their backs on politics. Today, I see fore, many citizens have lost their legitimacy. A legitimate election cil of Europe many similarities with the times of trust in the election process because process requires transparency and since 1995, Kuchma again, especially in the there are no conditions for a trans- clarity. It is organized so badly in served as PACE's lack of free speech, open media and parent and fair process, no plural- Ukraine, with so many flaws and Vice-President fair laws. Everybody thought after ism in the media, and no reliable deficiencies, that the outcome will from 2002 to the Orange Revolution that plural- sources of information. People feel be very questionable. The webcam 2004 and ism and freedom of speech could helpless. This is the reason why so law is just a typical example of this. chaired the PACE never ever be destroyed again. many of them have turned their Social Demo- Now, they are almost ruined. back on the system, resulting in the UW: Has the Ukrainian cratic Group Ukraine’s democracy is regressing, government failed its free election since 2008. Mr. degeneration of the political pro- Gross has taken Russia’s is progressing. My impres- cess. That is why you have so much and democracy test? part in sion is that Yanukovych is not fol- cynicism and no power alternative — It’s too early to say this. My election observa- lowing Putin. Instead, he is orga- to that of money in politics. The personal opinion is very pessimistic tion in many for- nizing his own clan and trying to power of money can only be bal- when I see what has been happen- mer Soviet Union “clanify” Ukrainian politics. This is anced with the power of citizens, ing over these past weeks in countries as the even worse. but Ukrainian citizens are now los- Ukraine. The worst thing is when Council of Europe ing their faith in themselves and big money has the power which representative their future. I find it so disappoint- dominates and breaks a party’s UW: Over the years of ing, even depressing. promises after the elections and Yanukovych’s rule in Ukraine, people no longer trust them. This is oligarchs have gained much more UW: Yanukovych’s government is a disaster for the development of a influence over the country’s trying to persuade the democratic society. That’s why I’m economy and politics. How does international community that it very pessimistic at this point. But I this affect democracy inU kraine? can control the election using still hope that some things will hap- — This is the question I asked Putin’s video observation system pen that will change the situation. many people in Ukraine and could at the polling stations.W hat is never get a clear answer. No other your opinion on the effectiveness UW: What is your opinion on the country in Europe has such influen- of this technology? draft law to restore criminal — The web cameras in Russia liability for slander that the Confronted with the fact were counterproductive for the parliament passed in the first Kremlin because they helped the reading? that politics is completely opposition prove what had really — Now is the worst moment to run by money, most happened in the March election. do such a thing even if it were well And at the end of the day, the web done. But this is a very bad draft Ukrainians feel helpless cams documented the vote counting law. Doing it in this way shows that process. In Ukraine, we’ve just its aim is to intimidate society fur- tial and powerful oligarchs. This heard from the Central Election ther and restrict open debates in the shows the legacy of totalitarianism Commission Chairman that the law media. Slander is a very sensitive is- and a specific weakness of Ukrai- was prepared so badly that he does sue, so you should be very careful nian society. You don’t have many not know whether the cameras will with it and follow the experience of forces that unite the country but be turned off after 8 p.m. before the democratic countries and the stan- many who divide it. After the suffer- counting, or whether the counting dards of the Council of Europe, the ing caused by totalitarianism and will also be recorded – and if so, will EU and the UN. However, the cur- the imposed Famine of 1932-1933 this be for the Central Election rent draft law denies them. organized by Stalin that killed mil- Commission only, or for the overall lions, many people are even more public too? This proves that the par- UW: The government’s attempts to afraid of politics. Some grave mis- liament is not functioning properly impose elements of a police state takes were made after indepen- because such laws should be clear. based on the Russian practice have dence. With weak rule of law and a A good discussion is a necessary recently crystallized inU kraine. lack of understanding of the market condition for making the right deci- Does this mean that Yanukovych’s liberalization needed, the oligarch sion – this is one of the essential regime is primarily following system had a chance to establish it- roles of any parliament. Good laws Russia’s lead? self firmly. We need a basic com- cannot be made without good dis- Ukraine is in some ways worse mon reflection on why this hap- cussions. Now, there is a law that is than Russia today because you pened and what has to be done to difficult to implement. We pointed don’t have big demonstrations and change this. № 16 (39) october 2012|the ukrainian week|39 neighbours|gazprom & the eu come, and impact, of the investigation. Based on earlier experience with similar proce- Brussels Against dures in the EU, however, Euro- pean experts claim that their reluctance will not be a decisive factor. Political prices Gazprom “Real energy competition will be the best argument in favour of the EU,” said Lithuania’s President Dalia Grybauskaitė at her meet- President Putin is nervous. Western experts believe ing with the European Commis- that the European Commission has a good chance sioner for Energy, Günther Oet- tinger. “When EU citizens start of winning the conflict regarding Gazprom’s paying less for gas and electricity monopoly prices on Central European markets they will see how efficient the Eu- ropean project is. Yet, this real competition still needs to be he common energy policy Authors: have jointly supported the initia- launched into action.” that has been much debated Alla Lazareva, tive. And so they should, as this In addition to complaining in Brussels’ top offices is Alain issue concerns them directly due about Moscow to the European Tslowly gaining shape. The Guillemoles, to the fact that they depend on Commission, Vilnius is also mak- EU has launched a special inves- France Gazprom more than others. By ing sharp statements. Lithuania tigation based on Lithuania’s contrast, several big Western is in the process of actively chang- complaint against Gazprom’s use states, including France, Italy and ing its energy supply system. It is of unfair competition instru- Germany, are still surprisingly si- building a liquid gas terminal in ments. So far, most Central and lent. Many think it is their sup- Klaipeda, negotiating a new gas Southern European countries port that will determine the out- pipeline project to Poland, erect-

40|the ukrainian week|№ 16 (39) october 2012 gazprom & the eu|neighbours ing new electricity lines with Swe- small majority, primarily thanks on the situation so far: “Out of all den, and designing a nuclear to the Polish and Baltic delega- big countries, Poland is the only tions. On the whole, countries determined supporter of the EU which will be involved in the Gaz- common energy zone. This con- Putin often mentions the prom investigation, such as Bul- cept has long been overdue but prospect of turning to garia, Hungary, Poland, Latvia, has not yet crystallized com- Lithuania, Estonia, Czech Repub- pletely. Former Soviet Union China, however gas pipes lic and Slovakia, have proved countries view Gazprom as a tool there are yet to be ready to fight for greater transfor making them more dependant parency in the gas supply system. and obedient, while France, Italy completed Meanwhile, old-time big partners and Germany see it as a source of of Gazprom and Russia respec- income.” power station, in essence, prepar- tively, including France, Germany ing itself to leave the energy orbit and Italy, do not have a clear po- Legal component of the former USSR. “We’ve sition.” Experts claim that it will take at BYPASSING started a chess game with a dan- The new mechanism essen- least several years to implement PIPELINE: gerous rival,” says Lithuania’s tially demands that EU member- the new EU energy cooperation After the Nord Energy Minister Arvydas Sekmo- states sign contracts with Gaz- mechanism, even though funda- Stream was kas. “We started playing with prom and other similar compa- mental principles have already opened in white and our pawns are confi- nies only if approved by the been introduced. “Negotiations November dently moving forward.” European Commission. However, have been ongoing since Febru- 2011, Russia “The Directorate General for some of its big clients have grown ary 2011,” Latvian international gained a direct Competition has compared the used to a certain amount of privi- lawyer Rita šerpiņa explains. “EU path to supply prices other consumers of Rus- leges and they would prefer to ne- member-states decided then that gas to Western European sian gas pay for it and deemed gotiate gas supply terms with they would coordinate their ac- markets. Now, Lithuania’s complaint justified,” Moscow directly. Kariņš, the tions with third party countries, it will hardly be its press-service told The sponsor of the ‘revolutionary’ re- primarily Russia. But it’s a chal- able to fully use Ukrainian Week in Stras- port, has given the best comment lenge to make everyone share this this leverage bourg. “Lithuania is buying gas against the EU at a price that is 13% higher than Estonia’s and 20% higher than Latvia’s. It pays EUR 403 per cu m, which is EUR 90 more than Germany is paying. Therefore, the Commission will examine how politically motivated Gaz- prom’s prices are.” Vilnius officials believe that Lithuania is buying Russian gas at the highest price in the EU as a result of its determination in im- plementing the EU Gas and Elec- tricity Directive. Lithuania is hoping to complete the segrega- tion of energy production and sales and build an NLG terminal by 2014, when its current contract with Gazprom expires. Latvia is also struggling to get better gas prices through EU mechanisms. Days ago, Krišjānis Kariņš, Latvian EPP MP, passed an unprecedented document through the European Parlia- ment. Based on Kariņš’s report, the parliament approved a new mechanism for EU member- states to exchange information on big energy contracts they seal, or approve, with non-EU partners. Its primary effect is to tilt Gaz- prom’s monopoly position. “The voting on September 13th was difficult,” a European Parlia- ment administrator told The Ukrainian Week. “The docu-

photo: r e ut rs photo: ment was passed with a very № 16 (39) october 2012|the ukrainian week|41 neighbours|gazprom & the eu The victory over collective European interest. A nounced, the EU launched an- Microsoft was proba- trust and Ukraine had signed the man with a full belly thinks no other equally big antitrust case bly the most signifi- Association and Free Trade Area one is hungry, as the saying goes. regarding monopolized export of cant antimonopoly Agreements with the EU,” says investigation ever Kariņš has spent nearly a year ne- solar panels from China. The in- undertaken Mykhailo Honchar, Energy Pro- gotiating with various political vestigation was initiated by Eu by the EU. gramme Director at Nomos. “Last The giant was im- groups and promoting the con- ProSun, a group of European so- posed huge fines of year, the European Parliament cept of a joint front against Gaz- lar panel producers. It looks like recommended the Commission prom, but some countries still re- the Chinese exporter is dumping EUR support Ukraine in gas negotia- sist it. They failed to obstruct the European prices by 60-80%.” 497.5bn tions with Russia. In its basic voting at the European Parlia- Experts estimate that by 2020 document on partnership with ment (on the approval of big en- Europe will be using 50 times in 2004, non-EU countries that are signifi- ergy contracts – Ed.), therefore more solar panels compared to EUR cant for the EU’s energy security, they are likely to sabotage the co- what it does now. The solar en- dated September 7, 2011, the Eu- operation concept at the level of ergy market is becoming as sig- 280bn ropean Commission suggested the EU Council.” nificant as that for gas and China in 2006, and initiating trilateral negotiations The comment of Philippe Lal- is openly struggling for a monop- with the EU, Ukraine and Russia. liot, Speaker for the French Min- oly on it. Now, it looks like the EUR It looks like Kyiv has missed the istry of Foreign Affairs, to The EU is finally coming to realize 899bn opportunity. Given Ukraine’s cur- Ukrainian Week on whether the threat. rent relations with Brussels, I Paris supports the European Par- After WWII, the EU – then in 2007 don’t think there is any hope that liament’s directive to coordinate known as the European Coal and someone in the EU will deal with big energy contracts with non-EU Steel Community – started from a the problem of Ukraine’s discrim- states partly confirms the fears of common energy project. Six Eu- ination in gas relations with Rus- the Baltic States regarding the re- ropean states decided to manage sia. Meanwhile, Kyiv still hopes to luctance of Old Europe. “We sup- these rare strategic resources find a ‘scheme’ and is preparing port the introduction of the new jointly. Since natural gas has to grab Naftogaz’s extraction as- mechanism to share information equal strategic meaning and is sets. Ukraine can’t possibly revise on energy contracts sealed with gradually being exhausted, the at- the effective contract in the cur- non-EU partners within the EU,” tempts to revive the energy part- rent circumstances.” he says. “As for the Gazprom in- nership have once again gained Experts assume that the investigation, we are observing the symbolic sense. And more impor- progress but not making any tantly than this, the 1957 Roman Russia cannot afford early conclusions.” Agreement – the first EU founda- Could the reluctance of big EU tion agreement – had a provision to ignore countries affect the outcome of the on the right to competition. the European market antimonopoly investigation? “Not Vladimir Putin’s angered at all,” claims Michel Pamuis, a statements in response to the vestigation against Gazprom will French expert on alternative en- EU’s investigation against Gaz- last at least two years. This may ergy sources. “The Directorate prom make it clear that Russia be sufficient for the European- General for Competition has ex- cannot afford to ignore the Euro- energy-NATO type organization tensive experience in the area. It pean market. Putin often men- to emerge that Lech Wałęsa once gets appeals from countries, com- tions the prospect of turning to dreamt of building on the ruins of panies and even individuals. Basic China, however gas pipes there the Berlin Wall. charges sometimes run counter to are yet to be completed and there the Commission’s position. How- is still a long way to go. Gazprom ever, investigations are still held, is the biggest gas entity in the All charges although they often last more than world, yet it sells only 25% of its of the European Commission one year.” gas at a profit to the West. The are potentially lethal for The victory over Microsoft other 75% is consumed at dis- Gazprom’s business model was probably the most significant count prices domestically. Losing “Gazprom underestimated the powers of the European antimonopoly investigation ever the European market will turn Commission, which has pushed member countries to “unbundle” (liberalise) their gas markets... It has tried to undertaken by the EU. Bill Gates’ into a disaster for Russia. Thus, block unbundling with a mixture of carrots and sticks. But empire was imposed huge fines of the Russian president is outraged this has brought more trouble... A year ago the commission EUR 497.5mn in 2004, EUR by the investigation. launched a series of spectacular raids on 20 offices 280mn in 2006 and EUR 899mn It is probably true that small belonging to Gazprom and related companies. That dispelled in 2007. The giant paid them all, countries such as Lithuania and the idea that the company’s political ties in big European although it appealed against the Latvia could not win against the countries gave it immunity. On September 4th the fines to a court of cassation. More ambitious giant on their own. The commission launched an antitrust probe based on three importantly, though, the investi- slow, yet determined European charges: preventing gas trading across national borders; gation did push Microsoft to machine gives them a much bet- hindering diversification of supply; and unfairly linking gas make some concessions. ter chance. Indirectly, Ukraine and oil prices. All these are potentially lethal for Gazprom’s business model. It likes to strike deals country-by-country, “The investigation against could also benefit from this situa- which enables it to reward friends and punish enemies. It Gazprom is in line with the Di- tion. However…, “Ukraine could will be hard for Gazprom to defend single-country deals rectorate’s general agenda,” the have hoped that the European against the rules of the EU’s common market. ...as press-service of the European Commission would take its inter- America’s Microsoft learned, expensively, in its row with the Parliament explains. “A few days ests into account too, if the cur- commission, in Europe monopoly power brings more after the investigation was an- rent regime had not lost Brussels’ enemies than profits.” 42|the ukrainian week|№ 16 (39) october 2012 opinion|neighbours Criminals in Politics

s politics free of criminals? Has it ever been so? tique; others failed to achieve it and were excluded In fact, it hasn’t. Far from war criminals, who, as or jailed. a cynic’s dictionary would suggest, are states- Who were Vladimir Putin and his entourage when Imen who lost the war (whereas the heroes solely their notorious company The Lake came into exis- remain on the winning side), felons squeeze into tence? Who was Viktor Yanukovych in his youth? politics from time to time. Crooks, charlatans, vari- What kind of political elite exists in post-soviet ous other dodgy figures and even mobsters become countries where wealth was not accumulated part of the classe politique. As the witty saying throughout decades and centuries, but was instead goes, the dividing line between parliament and acquired in the fast lane for state-favoured profiteers prison tends to be quite thin. protected by former uniformed agents? It could Politics has always been about a watershed between hardly have been something other than a fusion of legitimate and illegitimate figures in power. In fact, the so-called siloviki, that is, KGB officers, secret legitimacy is the most precious property of politics. service agents, state-protected thieves, and some en- Yet well before political leaders reach the heights of trepreneurs who accepted the challenge of closing legitimacy and law, they tend to draw close to the ranks ad cooperating with this sinister mishmash world of crime. Suffice it to remember Machiavel- left of the former empire’s power machine. li’s concept of the prince as un mezzo bestia e Curiously enough, sometimes they can bear a fam- mezzo uomo (half beast, half man) to prove this to ily resemblance to the powerful and wealthy groups have always been the case. of Renaissance Italy – such as famous families that A successful ruler who succeeded in his end to unify ruled Italian city-states for centuries. Recall the Or- and centralize the state at any cost becomes a hero, sini family and the Colonna family in Rome, the whereas those who did the same as the victorious, Medici family in Florence, or the Sforza family in but failed to achieve their ends get painted in his- Milan. They had their own court judges, court art- tory as bloodthirsty villains hungry for power. A ists, court scholars, and court historians; quite fre- successful rebel becomes a revolutionary and a re- quently, they acted not only as political dynasties former, while a failed one is relegated to the mar- and noble families but as political groups and crime Author: gins of political history as the head of a pointless units as well. Leonidas uprising. Just look at Mario Puzo’s perceptive novel The Fam- Donskis Successful dictators and tyrants cannot achieve ily, which explores the Pope Alexander VI family as a much without the help of prototype of the modern the underworld, for they Successful dictators and mafia. His son Cesare always need assassins, Borgia becomes a cardinal thieves, crooks, tortur- tyrants cannot achieve in age 18, yet then he ers, and manipulators. much without the help of abandons his early eccle- On a closer look, what we siastical career and goes take as the heroic saga of the underworld on to reach the heights of the clash between liberal genuine political and mili- political regimes and dictatorships is in fact tary glory. Judging by Machiavelli’s account in the clash between civilized politics and the The Prince, a perfect embodiment and incarna- brutal exercise of power by criminals. tion of un mezzo bestia e mezzo uomo, Cesare Even the Shakespearean tragedy of Russia in the Borgia took to the political path as a beast of prey and 20th century began as the collapse of a withering, a merciless killer, yet he ended up as a political vi- albeit imperial, power and as an onslaught of a sionary and an architect of a unified and strong Italy. criminal element. After all, Stalin, on the rise and, Even for a killer and criminal, a chance exists to be- especially, during his Baku period, was much of a come a statesman. Or vice versa. Much of Shake- mere thug. In more than one way, he was a success- speare’s plays and sonnets may well be described as ful criminal who was uniquely successful in consol- the metaphysics of crime committed in the name of idating power and creating his self-aggrandizing good and humanity. This has been witnessed by myth as the legitimate heir to Lenin, and also as his Europe’s historians, dramatists and poets; and we brother-in-arms and disciple. The Russian state ourselves can testify to this, as we have seen so collapsed as it was taken over by a criminal regime much turmoil, unrest, and ups and downs in East- disguised as the Universal Church of the Left. ern Europe from 1990 onwards. Criminalization of politics and, conversely, the What is crucial is whether a family, a household, or swift politicization of criminal groups and gangs is a clan, is held superior to the state, and whether not an exclusiv phenomenon of the dark past, they remain opposing agents. However, the worst though. Suffice it to recall the beginning of a rapid happens when the two merge. Misdemeanour and period of painful change in the former Soviet Union felony are inescapable parts of politics until they when, to call things by their right names, criminals become watered down, washed away or otherwise and various shadowy groups sought to surface by marginalized. True, a former felon can become a legalizing themselves and their agendas. Some of committed statesman. Unfortunately, we have seen them were solemnly accepted into the classe poli- too much of the opposite. № 16 (39) october 2012|the ukrainian week|43 security|global leadership crisis World Without Leaders

American political scientist Ian Bremmer talks about why the global structure is becoming less manageable

Interviewer: n the 1970s, it was known as May 2012, Vladimir Putin as Rus- UW: Why is the world growing Bohdan the Library Group because the sia’s newly elected president re- more regionalized despite Tsiupyn leaders of half a dozen major fused to attend the G8 summit. globalization? Iworld powers held their unof- Why has Moscow, once so eager I think that there are two im- ficial meetings at the White to get a seat at the prestigious ta- portant reasons for this. One is House library. Later, the meet- ble, now rejected the group? Does that we’ve experienced an enor- ings transformed into official this signal the decline of the G8? mous shift in geopolitical and summits, the first one held in American political scientist economic power and it’s not just France in 1975. At that point, it Ian Bremmer agrees with this as- the “rise of the rest” as Fareed Za- was a Group of Six or G6, joined sumption and believes that the karia likes to say. It’s the rise of by Canada the next year, turning power of other international or- the different – the countries and it into the G7. The name was ganizations such as the UN and emerging markets which are changed to “G7+1” in 1997 when NATO is declining, coupled with poor, more politically unstable Russia was admitted to the group the narrowing leadership of the and more domestically focused. in an effort to support what then US worldwide. He presents his And some of them have very dif- seemed to be Boris Yeltsin’s pro- opinion in his new book titled Ev- ferent economic and political sys- democratic policies. The plus was ery Nation for Itself: Winners tems. One is China, a country later dropped and Russia became and Losers in a G-Zero World with an authoritarian regime po- simply a member of the G8, a along with the warning that the litically and state capitalism eco- club of countries considered to be world will become less and less nomically. We’ve experienced the the major powers in the world. In predictable from now on. “rise of the rest” before, when the 44|the ukrainian week|№ 16 (39) october 2012 global leadership crisis|security Europeans and the Japanese rose call it the G7+1 before it became change. It has been deteriorating after WWII. It wasn’t a challenge the G8? Well, +1’s don’t usually into dictatorship over the course to the United States, even though work. of the last 10 years. Their ability some were concerned, particu- to attract FDI outside of the en- larly about Japan. It was a group UW: You wrote that Ukraine ergy sector has been very limited. of allies that worked together “does not pivot” in your book. You see the opposition on the very closely, and occasionally What did you mean by that? streets in Russia and you see the they had their differences, but In this world, the G-zero budgetary situation: how they that didn’t change the structure world, you clearly want options. need to price oil up to make the created by the US and the West. You want to have lost of countries budget work. But that doesn’t Now, G20, global climate deals finding you an attractive place to mean that Russia can’t change. and global trade deals require a invest. But when Angela Merkel We hope that it will. meeting of the minds not just be- calls a country a dictatorship it tween a lot more countries but makes it harder for the country to UW: Zbigniew Brzezinski once between countries that really work closely with Europe. Histor- said that Russia will not become don’t agree on much of anything. ically Ukrainians have expressed a normal country as long as it They don’t share the same values a lot of interest in EU accession, tries to keep Ukraine under its and priorities. It doesn’t make control, because it continues to emerging markets wrong, it’s just the US is less willing to be an empire by subduing that we won’t see clear leadership Ukrainians. Do you agree with in the world. provide leadership him here? The second reason is the de- while the Europeans It’s much more about state creased willingness to provide capitalism and economic influ- this leadership, with the Europe- and Japanese are caught ence than about direct military ans and Japanese currently up in their domestic subjugation. But certainly Rus- caught up in their own domestic sians are using political influence struggles. And there is no one re- struggles to keep Ukrainians acquiescent. I motely electable in the US right do think that that undermines now to talk about a Marshall being part of the European Cus- Russia’s ability to be a normal- Plan in Europe. The US is not toms Union and building closer ized international player. prepared to remove Bashar trade ties. Unfortunately, for Assad from power in Syria or many reasons, that has not been UW: How pragmatic is Mr. Putin lead a global climate deal. It’s possible in terms of Ukrainian when he says that the USSR the underlying balance of power political and economic systems. collapse was the biggest and the nature of the countries In reality, Ukraine does not have disaster of the 20th century? that comprise it, but also the a lot of options. It is fundamen- Don’t Russia’s actions against willingness of the US and its al- tally tied to Russia. And a lot of Georgia hint at Moscow’s policy lies to play that role. Ukrainians, including some offi- being guided by imperialistic cials, aren’t happy about that. We ideology? UW: There are other countries BIO see that in the problems with gas This certainly implies that he that are willing to increase their delivery that Ukraine has nearly is willing to use populism and na- international impact. President Ian Bremmer was born in every winter. But the reality is tionalism for his own ends. But Putin is an ambitious leader but 1969. He at- that the Russians are more than ultimately all these leaders can be he did not come to the latest G8 tended Tulane happy to use that political and very pragmatic—brutally prag- summit. Do you see this as University and economic privilege over Ukraine matic—when they look at issues validation of your analysis? Stanford, and to limit its opportunities. And the such as how to maintain power. Certainly. The truth is that it presently teaches political system in Ukraine also was much easier for that conver- at Columbia Uni- does some damage. So, Ukraine UW: Is your book just good sation to happen with the Rus- versity. Bremmer does not have that pivot at all. reading for people interested in sians absent. They talked about is the founder I hope that my analysis will be geopolitics or can it be helpful to bailing out the Eurozone, about and president of useful to those Ukrainians that politicians in choosing their Eurasia Group, a direction for the future? Syria and Iran. The issues that leading global are pushing for better opportuni- are dominant on the G7+1 agenda political risk re- ties. And I’m not talking about A lot of government officials are the issues Russia is either not search and con- the Orange Revolution or democ- have been calling me. I don’t interested in or is on the opposite sulting firm. He racy. Instead, I’m talking about a think that my book necessarily side of. If Putin and Obama had has authored more attractive economic and in- tells politicians “here is what you had a direct bilateral meeting, it eight books, investment environment, transpar- have to do.” A lot of it has to do would probably have been bad cluding the best- ency, rule of law, lack of corrup- with their own preferences and enough to derail the conversa- selling Every Na- tion – all kinds of things that their understanding of how much tions on normalizing trade status tion for Itself: would make the Europeans feel risk they are willing to tolerate. that are going on in Congress. Winners and Los- that Ukraine could once again be What I hope it does do, though, is ers in a G-Zero [The US Congress is considering World and The a bread basket and an important make it a little bit clearer for lifting the restrictions on trade End of the Free area for partnership. The Europe- them just how different the geo- with Russia established by the Market: Who ans don’t feel that way at all right political environment we’re look- 1974 Jackson-Vanik amendment Wins the War Be- now. ing at today is from what we’ve inherited from the Cold War – tween States and But things change over time, experienced over the past half Ed.] Remember how we used to Corporations? everything does. Russia could century. № 16 (39) october 2012|the ukrainian week|45 investigation|Police corruption

A Bird Rebellion The fighters of Berkut, a special-purpose police unit in Ukraine, are forced to pay a tithe to their commanders, participate in illegal deals and disperse protesting crowds. Such activity is not acceptable to all, so the first voices of discontent are being heard from the ranks photo: U nian photo:

Author: he actions of the Berkut ter unhappily, but still hand over later: whatever happens, the initia- Valeria (Golden Eagle) special forces the money,” their colleagues say. tors will be forced to leave their Burlakova unit set a precedent for UAH 150 is a ridiculously small unit. TUkraine’s Interior Ministry sum. With a monthly salary of Doubts have also been raised bodies. No, its fighters did not rise more than UAH 4,000 no-one over the integrity of those who against the current government by would raise havoc about having to went public. “Were the Berkut casting off their helmets and join- make such paltry “charitable” do- fighters themselves as pure as the ing protesters, as German law en- nations. driven snow? They don’t violate the forcement officers recently did. “I will write down what I per- law, empty people’s pockets and They simply tried to inform the sonally know,” stresses a user, reg- beat up faces?” another policeman public at large that each of them istered as Unknown on a forum for inquires indignantly. “Did the com- was forced to pay a certain amount, Interior Ministry employees. “The mander keep all the money for around UAH 150 per month, to sum is about UAH 1,000, rather himself? He didn’t pass it on up- their commanders. A criminal case than UAH 150, per person.” This stairs? He didn’t use it to help the over abuse of office has already amount is far more tangible, but unit? I don’t believe it… This is the been initiated against the com- not beyond the means of police- reality of the contemporary police manders of a Berkut unit. men. According to law enforce- force. In all units, commanders col- ment officers, this money is used lect money from their subordi- Money earned for a variety of purposes, from pur- nates. Perhaps he is completely off on the side chasing stationery and computers his rocker and his demands exceed This extortion is a routine matter to gifts and bribes to higher offi- their capabilities. If that is the case, in law enforcement agencies, but it cials for turning a blind eye to the they are right; the information does normally surface. Speaking failures of the rank-and-file. Many should be leaked [to the press]. But off the record, officers say that ex- Interior Ministry employees are not in such a dumb manner…” tortion “has, and always will exist” convinced that the Berkut fighters Interior Ministry employees in Berkut and other structures of should not have gone public about mention their illicit earnings un- the Ministry of Internal Affairs. the extortion, regardless of the comfortably often. “In this case, Moreover, policemen are sure that amount of money they were forced the commander is a real stinker,” the Berkut protesters in Sumy are to fork out. Some believe squealing a major from Luhansk says. The understating the amount they are of this kind is simply wrong, while reason for his contempt for the forced to pay. “It is inevitable; others say that silence would be commander of the Sumy fighters there’s no getting away from it. The golden if only because now these is not the extortion as such, but majority understand this and mut- men will lose their jobs, sooner or because he “taxed their legitimate 46|the ukrainian week|№ 16 (39) october 2012 Police corruption|investigation pay, not the money earned on the And then, not only do they not ar- later, after carefully editing the re- side”. This is what has outraged rest the drug dealer, surprise, sur- cording, they can give the mass the fighters, he maintains. Curi- prise! – they return the confis- media nice videos in which a ously, “taxes” on unofficial earn- cated drugs to him. According to strong fighter in camouflage is ings may be in a range that goes the source that spoke to The beating up “a helpless fighter for far beyond the official pay. “The Ukrainian Week, they receive the good of the people”. It turns rate in our unit is up to USD half of the price originally paid by out that, in addition to journalists, 5,000,” says a Lviv-based Berkut the client. However, it would be protesters themselves give Berkut fighter. absurd to implicate only Berkut in fighters a hard time: “It is hard cooperation with drug dealers – during protests when, standing Law enforcement others are also involved. The com- opposite a crowd shouting “fas- as a “business” plicity of persons from the Interior cist”, “communist henchman”, Where do Berkut fighters obtain Ministry in drugs trafficking is of- “servant of a convict” or “Bandera this much money and how? These ten not denied even by their supe- lackey” at you (depending on the questions are almost rhetorical. riors. political preferences of the pro- The two sources are largely the ex- What policemen themselves testers) or simply yelling “Death to tortion of money from people lead- think merely confirms the wide- cops”, you have to silently clench ing illegal ways of life and kick- spread practice of illegal earnings. your fists because the commander backs from drug dealers. “People in trouble are left to their said: ‘No action without my com- At the same time, there are own devices,” they say, when dis- mand.’” few media reports on proven facts cussing their low salaries. “Smart of criminal activities perpetrated people do not sit still and earn No right to speak by the police. This is possibly be- money any way they can.” However, not all Berkut fighters cause when faced with the choice want to be the “dogs of the re- of a bribe or a complaint against why berkut? gime”. Many romantically-minded extortionists, most Ukrainian citi- “Welcome to the TRUE COPS! young men join Berkut, and be- zens view it as a choice between site.” reads the welcoming message lieve that society’s negative atti- losing a specific sum of money and at http://mvd-ua.com. On the “Re- tude to them is partly justified. their own freedom. Speaking on They are in no hurry to blindly ex- condition of anonymity, a young “taxes” on unofficial ecute inadequate orders. “I don’t student from Kyiv said that he want to bow and scrape,” a Berkut used to have a stable source of ad- earnings may be in a range fighter comments on his attitude ditional income by selling drugs. that goes far beyond the towards the current Ukrainian Berkut fighters grabbed him dur- government. “But that’s the kind ing a drugs deal and later let him official pay of job I have… I am forced to take go for UAH 50,000. Similar fig- people in hand. Unfortunately, ures are mentioned in official realities of Service” page, future law this is not always fair.” ports. For example, a criminal enforcement officers can read the On the same forum, many po- case was opened in Mykolaiv reflections of experienced police- licemen offer their views, despite against three Berkut fighters who men about what youngsters can ex- opening themselves to ridicule, demanded USD 5,000 from a man pect in one sphere of law enforce- about ways to make their col- in exchange for not filing charges ment or another, including Berkut. leagues honest and change the sys- for the possession of drugs. They emphasise that just about the tem from within and ridding it of A Kyiv resident who sold ille- only benefit of working in this spe- its numerous flaws: miserable sala- gal substances for many years as- cial unit, is that one year of service ries that lead to corruption; inter- sures us that this is a well-oiled is counted as one and a half. nal extortion; huge “taxes” on system. Small drug dealers do not Novices are not assigned to se- money earned on the side, which is survive on the market for very rious missions, which according to often the reason forcing policemen long: they soon have to pay kick- forum participants are few and far to seek these illicit earnings in the backs or they end up in jail. Mean- between. The young guys are told first place, etc. Some contributors while, law enforcement agencies they will be simply “standing guard say that this year’s little demarche openly protect big dealers, which during searches where your very by Berkut fighters in Sumy is the includes helping them to maintain appearance in masks alone will in- first high-profile protest of Ukrai- a monopoly in a certain territory timidate the proprietor, or con- nian law enforcement agencies for regular pay. Allegedly, there ducting boring raids at night clubs since the soviet era. are less profitable but more sur- without storming into rooms and However, the main thing that prising schemes. For example, shouting: “This is Berkut! Every- bothers those tasked with dispers- there are a number of drug sale body get down!” ing popular protests, is their own points in the Borshchahivka dis- Experienced colleagues warn inability to protest. In Ukraine, trict in Kyiv, says local resident, would-be fighters that their main this is something that is directly Petro. Sometimes Berkut fighters mission will be dealing with pro- prohibited by law for Interior are “on duty” nearby. A person test actions. A big headache is Ministry employees. Law enforce- walks out of one such point with journalists: “[Journalists] often ment officers point to the only drugs, directly into their hands. make a preliminary deal with rep- possible way of expressing their They confiscate the drugs and resentatives of radical movements protest today: simply throwing money, unless, of course, the drug or simply politicians about pro- your ID in the face of your boss user wants to end up behind bars. voking [Berkut] members so that and saying: “I quit.” № 16 (39) october 2012|the ukrainian week|47 society|changing cities A Planetary Mega lopolis Cities adjust to global climate change and the new economic environment

Interviewer: unprecedented trials of global now. Despite shared experiences Hanna Trehub climate change. As we look for- with socialist city building, those ward, planners and municipal cities now within the European ny urban citizen wants to leaders are increasingly con- Union are guided by very differ- live in a comfortable and cerned with how to structure cit- ent policy assumptions from safe environment. Unfor- ies to be attractive to the so- those further East. Urban plan- Atunately, Ukrainian cities called ‘creative class’ taking ning and assumptions about cannot boast having even the shape as a result of the increasing technology and transportation minimum of benefits for their economic dominance of know align with similar policies else- citizens. In Ukrainian the urban ledge-based economic sectors. where in the EU (as can be seen reality is that municipal services Sustaining this class requires in investment in public transpor- are economically underdevel- large scale investment in human, tation, including facilities for bi- oped and unready to face envi- rather than fixed capital. The cycles). Former soviet cities are ronmental challenges. When heat challenges of climate change struggling to find the most ap- peaks in summer or heavy rains present other tasks, including propriate balance between plan- flood cities, it emerges that utility greater reliance on public trans- ning and the market. More im- services are unprepared to deal portantly, cities in the European with the whimsical weather. As a Kyiv entered the post-soviet Union adopt models of meaning- result of uncontrolled frantic ful and open citizen participation construction in Ukrainian cities, period with unique assets in local decision-making while park and recreation areas are of its green areas, democratic participation in all rapidly shrinking. The Ukrai- too many cities of the former So- nian Week talks to Blair Ruble, an asset which is busily viet Union remains little more a world-renowned expert on ur- than fakery. ban studies, about the develop- being destroyed for the ment of post-soviet urban space short-term benefit of a few UW: In certain countries of the and how cities in the world are world, such as South Korea and adjusting to economic and cli- portation, more efficient energy Japan, cities are built to fit into mate change. use, enhanced coastal security, the natural landscapes in the and retrofitting cities for new cli- best way possible, and green UW: What urban development matic realities. Chicago perhaps spaces are essential benefits for concepts are currently popular represents a compelling example urban dwellers. Is this trend in the West? What will cities of a city that is rethinking its fu- widespread in contemporary look like in 10 or 20 years? ture along both fronts, as local urban development? In Kyiv, for The latest concerns in urban leaders are reimagining their city example, the destruction of planning and development re- by 2050 with the climate of New green zones to make room for volve around two sets of issues: Orleans in the deep American new skyscrapers has become a economic and environmental South. norm over the past 10-15 years. sustainability. These two concerns are linked, of course, and UW: How do you see the While there are examples of emerge from the global chal- development of East European the greening of urban landscapes lenges of international economic cities, considering post-WW II in South Korea and Japan, I am stagnation and fiscal crisis in reconstruction, plus the not at all sure that they are the many countries, as well as the construction boom of the 1950s, only - or even the best - examples intense building in the of what is possible. Returning to BIO 1970s-1980s, and the the issue of environmental sus- Blair Ruble is the Program Director for Comparative Urban contemporary urban tainability, we see the construc- Studies at the Woodrow Wilson Centre in Washington. development of the 2000s? tion of new - and the retrofitting Dr. Ruble received his MA and PhD degrees in Political Sci- How are the situations in of existing - urban landscapes ence from the University of Toronto in 1974 and 1977. Prior to August, he chaired the Kennan Institute, and worked at the Prague, Budapest, Warsaw with green zones, even at the Social Science Research Council in New York City, as well as different from those in Kyiv, level of grass-covered roof gar- at the National Council for Soviet and East European Re- Minsk and Moscow? dens on high-rise buildings. search in Washington. Dr. Ruble is the author of six mono- I believe that the trajectories “Green” is considered to be an graphs and is an expert on urban and political processes in of East European and former so- amenity to be valued, not thrown Ukraine, Russia and Eurasia. viet cities are quite different right away. If the goal of a city is to at- 48|the ukrainian week|№ 16 (39) october 2012 changing cities|society America. China is a different 50-70 years, it has passed the story. Over the past 20 years, significant state of urbanization nearly 200mn people have lived and has valuable experience in Chinese cities. Many rural worth sharing. But look at the dwellers moved to cities in Africa deeper changes, such as climate A Planetary Mega lopolis which, however, are not big transformations, health care and enough to fit them all. The same urbanization. They are all inter- thing had happened in North twined. If you look at the Earth Cities adjust to global climate change and the new America and Europe over a hun- from the sky, the density of cities dred years ago, when people is shrinking even when the cities economic environment moved from villages to cities themselves expand. This results where jobs were created for in the shrinking area of farm- tract a creative labour force as them. Nothing like that is hap- land. We have to realize the pro- the new ‘creative class’ that adds pening in Africa now. Its cities cess. It cannot be stopped but it the greatest value to the local develop rapidly, yet they are can be controlled. economy, then what better way is overridden with epidemics and there to do so, than to value your poverty, where people earn a dol- UW: Megalopolises have always green spaces? Kyiv entered the lar or less a day. These people been popular migration post-soviet period with unique shape the world, so it is time to destinations. Are there any assets in the form of its green ar- think about how to resolve the specific phenomena or changes eas, an asset which is busily be- situation. that are typical for our time? ing destroyed for the short-term In the first place, this refers People always move and mi- benefit of a few. This is a conse- to Latin America - a hyper-ur- grate. The difference between the quence, of course, of elevating banized continent today. After present and the past is technology. the quick gain of a few at the ex- They can now move faster and fur- pense of a more significant long ther. The Internet allows people to term gain of the many; a strategy stay in New York while living a which sadly appears to stand at life as if they were in Kyiv. the centre of Ukrainian political This changes the essence of and business plans at the mo- a migrant’s life. When ment. someone wakes up one morning in Kyiv and says UW: What role do modern that he or she will move megalopolises play in the to the USA and become modern world? How specific is an American because life in the biggest urban centres Kyiv offers no economic of the world? prospects, this is not an There are a few trends, in my accurate definition of mi- opinion. If you talk about post- gration. We are witnessing soviet cities, they have opened to great acceleration today. the world and turned into inter- The way we move has national migration and tourist changed and the meaning destinations. However, the two of these moves has changed,

urban trends I’ve mentioned ear- too. A ndriy L omakin P hoto: lier are both great challenges and good chances for cities. In the first place, they facilitate the evo- lution of city dwellers who are in- tegrated into the international economy and oriented towards each other rather than towards their country. There is a category of global cities which manage to feed on each other, such as New York, Tokio, Lon- don and increasingly Shanghai. They all begin to exist sepa- rately. Another big challenge is that most of the plan- et’s population lives in cities. They are concen- trated in Africa, Asia and Latin № 16 (39) october 2012|the ukrainian week|49 history|How urban Ukraine emerged

Urbanization According to Plan Most flaws of modern Ukrainian cities stem from the soviet construction boom of the 1950s-1970s

Author: odern Ukraine is an in- 2010 report by the World Health Ukrainian cities grew even Yaroslav dustrial country with a Organization (WHO), the total more rapidly, adding half a million Hyrych predominately urban share of urban population world- people annually in the 1960s. Cen- Mpopulation. To a large wide was 50% in that year. Mod- suses of the late 20th century extent, its cities developed upon ern humanity is more urban than showed a permanent increase in a material and demographic base it has ever been in its entire his- Ukraine’s urban population, that was established during the tory. This is the result of the de- mostly due to migration from vil- era of rapid soviet urbanization. mographic boom of the late 20th lages, which contributed 47.8% of In the UN’s 2007 demo- century and advancements in growth in 1959-1970 and 51.6% in graphic report, Ukraine was science and technology . In 1900, 1970-1979. As a result, the Ukrai- listed 24th out of the 25 most ur- urban populations comprised nian SSR became an urban country banized countries in the world. only 14% of the total global pop- in 1965 when the urban population The growing number of cities ulation. This share grew to 29% exceeded 50% of the total. By 1994, with rising populations is a by 1950, 38% by 1970 and 46% the rural population was half the global trend. According to the by 1990. size of the urban population. 50|the ukrainian week|№ 16 (39) october 2012 How urban Ukraine emerged|history Utilitarian Approach The key focus was intense con- enough for a person to stand with The massive migration from vil- struction of civilian housing. To cut bent elbows, while 110cm would lages to cities was sparked by a the cost of a single square metre by suffice to take off clothes and put slew of factors, such as the impact 1/3, standardized projects and gen- them in a closet, so that was the of World War II, the natural trend eral city plans were introduced; in- width of the corridor. toward urbanization with people dustrial construction was Made to fit this universal stan- moving to towns and cities, the launched; campaigns against “ar- dard, buildings and cities lost their policy of enlarging small villages chitectural excessiveness” includ- architectural face. Functional effi- and collective farms, the elimina- ing adornment of facades, eleva- ciency and a pragmatic approach to tion of hamlets, the declaration of civil and residential housing be- small villages as unpromising, the came top priorities. A new wave of flooding of territories with man- Facilitated by rural the war with religion further facili- made lakes, labour mobilization resources, urban tated the drastic change of urban campaigns, the fact that rural pop- space as the authorities revived the ulations had no passports and the development brought campaign to wipe out any remain- socio-cultural environment devel- forth a pseudo-urban ing religious structures. oped slower in villages than it did in cities, and the crisis of the collec- culture and a low-quality Temporary housing tive farm economy. social infrastructure In cities, huge residential districts Soviet urbanization was nomi- were erected wherever there were nal, reflected in statistics only, yet vacant lots. This typical soviet never shedding its rural traces. Fa- tors, high ceilings, steep roofs and practice was in stark contrast to cilitated by rural resources, urban so on, were declared. Cities were the West, where getting a plot of development brought forth a being filled with newly-built resi- land for construction was difficult. pseudo-urban culture, the margin- dential districts. To complete the Residential districts replaced set- alization of migrants and a low- planned amount of work on time tlements around plants and facto- quality social infrastructure. and cut construction costs, the au- ries. Moscow’s Cheriomushki built Rapid urbanization was caused thorities had to launch massive in 1956 was the first residential by the great demand for labour in production of building materials district of this kind in the Soviet the industries of the Ukrainian essentially from scratch. A short- Union. Kyiv’s first new residential SSR. Villagers were an important term need for apartments facili- district was Pershotravnevyi (May resource for new factories and tated innovation in construction, 1st), constructed from 1957-1963. plants. With the soviet practice of yet the results were often of poor A decree of the Ukrainian residency registration for those quality. SSR’s Council of Ministers passed who lived in cities and the lack of In terms of interior design, so- in May 1958 launched the epoch of passports among the rural popula- CHEAP & viet architects used the “economy standard khrushchevka apart- SIMPLE: tion (this gradually changed from Khrushchevka of squares” concept offered by La- ments. One of the project’s found- 1953-1981), the workforce was apartments zar Cherikover in the 1930s-1940s. ers was Vitaliy Lagutenko, Head of ‘purged’ from agriculture in favour became a He claimed that a human needed the Moscow Architecture and Plan- of industry through labour mobili- symbol of 90cm to iron laundry and 85cm to ning Department, and grandfather zation, organized labour camps, massive urban put on shoes. A 75-80cm wide toi- of Ilia Lagutenko, leader of the Komsomol and other civil cam- construction let room was considered large popular Russian band Mumiy paigns. In the 1960s, the government focused more on the population’s social needs in Ukraine. It implemented pension reform, changed the system of education and began to pay salaries to collective farm workers in cash, not in kind. Nikita Khrushchev’s key social project was housing reform. Intense residential construction in the Ukrai- nian SSR spurred rapid urban growth. Urban development policy of that time was based on the land- mark decision to expand housing construction made at the 20th Con- gress of the Communist Party in February 1956 and the respective decree by the Ukrainian SSR’s Council of Ministers issued in summer 1957. These acts triggered a series of important decisions that brought residential real estate to a new level in the Ukrainian SSR. № 16 (39) october 2012|the ukrainian week|51 history|How urban Ukraine emerged tially innovative, the ideas of 1920s-1930s modernism were implemented as mere caricatures in the 1960s-1980s for the sake of cheap and standardized construction. The Communist Party was trying to keep as much control as possible over urban development, so it passed the relevant decisions. The programme approved at the Party’s 22nd Congress in 1961 fixed the roadmap for the construction of Communist society. Thus, social infrastructure dispar- ities between cities and villages had to be wiped out. Officials were given the task of halting excessive concentration of the population in big cities while facilitating the de- Troll. One version of the story RUSH HOUR: France, Israel and the USA. After velopment of smaller cities and claims that the K-7 project was Massive con- the Second World War, industrial towns, and the gradual transfor- borrowed from a similar French struction of resi- construction and the rejection of mation of collective farm villages dential districts project that included five-story without proper neoclassicism were universal and hamlets into bigger ‘town- buildings with no elevators, low infrastructure trends. First and foremost, this like’ settlements. One important ceilings, small apartments, shared led to never- was caused by the need to quickly issue for soviet demographers was bathrooms and poor sound and ending commut- rebuild the war-ravaged infra- that of an “optimal city size”. Re- thermal insulation. ing problems in structure. The Soviet Union was search by the Urban Development The new buildings were liter- soviet agglom- unique in its strict compliance with Institute under the Academy for ally produced in chunks at factories erations standards whereby identical build- Construction and Architecture of and the ready-made panels were ings were constructed everywhere, the Ukrainian SSR held in the moved to the construction site and from the capital to the villages. 1950s found that a population pieced together over short periods Soviet architects borrowed ranging from 20,000 to 300,000 of time. Obviously, the Communist some points from the concept of meets the optimal standard. In re- leaders viewed khrushchevkas as the “international style”. Its fore- ality, however, the existing settle- temporary housing that would last bears included Swiss architect ment practice was preferred. It 20-25 years until Communism was Charles Le Corbusier. He viewed entailed economic and demo- firmly established in 1980. The urban construction as a tool of so- graphic domination of the Soviet buildings of the “first period of in- cial transformation and a block of Union’s southwestern and south- dustrial construction” were built apartments as the key city object. ern economic zones. As of June 1, 2012, both in the Soviet Union and other His main goal was to improve ur- Urbanization processes in the 68.7% socialist countries, therefore they of the Ukrainian pop- ban comfort through widespread Ukrainian SSR evolved according were the most widespread ele- ulation lived in cities transportation networks and park to several trends. The galloping ments of the “expanding victorious zones, made possible by higher growth of urban populations led to socialism”. According to official buildings and greater population new forms of settlement: agglo data, more housing was built in density in residential districts. merations. From 1957-1979, Uk Ukraine from 1956-1964 than over Later, Le Corbusier’s ideas for “ra- raine’s major agglomerations the previous 38 years of Commu- diant cities” were tested during the emerged. Kyiv hit the one million nist rule. The authorities failed to construction of Brazil’s new capi- mark in 1957, followed by Kharkiv completely eliminate the shortage tal, Brasilia, from 1957-1960. in 1962 and Odesa in 1974. By of housing, but made the problem With the launch of the 1955- 1976, Kyiv’s population measured much less acute. The relocation of 1957 housing reform in the Soviet over two million. The 1979 USSR over one third of the urban popula- Union, creative architectural pro- Census revealed two more “mil- tion of the Ukrainian SSR out of cesses came to a halt. Although ini- lionaire” cities: Dnipropetrovsk collapsing communal houses and and Donetsk. In big cities, so- into their own apartments became An Eastern Trend called pendulum migration devel- a revolution in the social sphere. Western Europe has relatively few multimillion-resident cities oped, whereby most people com- today. Germany has four; the UK, Spain and Italy have two muted from suburbs and residen- From the capital to the each, while Austria, Belgium, Bulgaria, Poland, Serbia, Roma- tial districts to workplaces and villages nia, Hungary, France, and the Czech Republic each have just schools in business or industrial The construction of cheap stan- one. Cities with over two million people include London, Ber- zones in the morning and returned lin, Madrid, Rome and Paris. The USA, whose population to- at night. Filling the cities with res- dardized housing in the Soviet tals 313 million, has only 9 megalopolises. Meanwhile, Russia, Union was not unique. Weimar with a total population nearly half that of the US, has from 9 idential districts caused transpor- Germany was the pioneer of stan- to 14 megalopolises, according to different estimates. The tation problems, exhausted op- dard industrial construction based number of multimillion-resident cities in modern India ranges tions for land development and on the Bauhaus concept in the from 39 to 55. China has around 100. Australia’s five giants aggravated criminal activity. 1920s, followed by post-WWII are home to nearly half of its population of 22-million. These were essentially Eastern 52|the ukrainian week|№ 16 (39) october 2012 How urban Ukraine emerged|history

models of settlement culture PLANT CITY: cities. As a result, monofunctional velopment and the increase of its whereby the focus was on the Cities growing cities, towns and worker villages urban population […] while all progress of huge cities (see An out of workers’ mushroomed in the Donbas. Still, preferences were given to the Rus- Eastern Trend). villages and big the employment of the entire pop- sian SSR”. plants were a ulation in just one industry and the The soviet command-adminis- typical element Canadian historian Orest Sub- trative system was an integral part of urban dependence of a city or town on a telny focused on the increasing of urban development. The num- development major nearby plant carry the threat number of urban citizens and the ber of cities increased greatly from along the Dnipro of socio-economic collapse. transformation of the mental por- 1956-1965 as a result of amend- River and in trait of Ukrainian society, referring ments to legislation that allowed Eastern Ukraine “The Great to this as “the Great Transforma- executive committees of oblast Transformation” tion”. He also noted a shift in the councils, in addition to the Ukrai- Diaspora researchers provide in- ethnic structure of cities where nian SSR’s Verkhovna Rada, to teresting interpretations of the “Ukrainian majorities finally grant city status to settlements. In process of urbanization in Ukraine emerged”. Thus, the share of 1946, Ukraine had 258 cities; by during the last two decades of so- Ukrainians in the population of 1959, it had 331, 370 by 1965 and viet rule. They claim that the gov- Kyiv grew from 60.11% in 1959 to 385 by 1970. 72.45% in 1989. In addition to the regulation of The construction of a lot of city status, government instruc- Made to fit this universal cheap housing launched in the late tions affected the way cities devel- standard, buildings 1950s fuelled urban population oped. After the administrative ter- growth, satisfied industry’s labour ritorial reforms of the 1920s- and cities lost their needs and made the Ukrainian SSR 1930s and 1950s-1960s, a city or architectural face more urbanized. county centre that lost this status Still, the soviet authorities eventually faded. However, some ernment controlled the movement failed to control the rapid growth settlements developed due to ad- of the population, and urban of cities dictated by the demand for ministrative orders. Uzhhorod, a growth was an instrument of Rus- labour. The process unfolded unac- town of 17,000 people after the sification (despite the formation of companied by an increase in the war, evolved after it was granted a Ukrainian ethnic majority) by amount of available housing, well- the status of oblast centre and a which a different ethnic element planned infrastructure develop- university was opened there (one was proactively settled in cities. ment or support of culture at an of only seven in Ukraine at that Bohdan Kravchenko, Canadian po- acceptable scale. As a result, urban time). litical analyst and sociologist of construction was often chaotic, The population’s concentration Ukrainian origin, said that the creating new inconveniencies for in industrially advanced areas of Ukrainian SSR did not have equal residents. Other negative impacts the Ukrainian SSR, such as the status in the Soviet Union com- of soviet planned urbanization in- Donbas, the Dnipro area and the pared to other republics. Dmytro cluded higher crime rates, demo- Black Sea coast, was another sig- Solovey, member of the Ukrainian graphic crises, socioeconomic nificant element of soviet urbaniza- Free Academy of Sciences in the problems in villages, the spread of tion. Intense construction policies U.S., viewed this as “planned ham- alcohol and drug addiction and ag- spurred the emergence of plant- pering of Ukraine’s industrial de- gravated pollution. № 16 (39) october 2012|the ukrainian week|53 culture & arts|reviews & event calendar films He Who Became a Strongman The end of August saw the start of the filming of Strong Ivan, the currently little-known story about Ivan Firtsak, a Ukrainian who was recognized as the strongest man in the world in 1928

Author: ased on the novel by Uzh- producer’s condition was a child it. What is the level of the direc- Yaroslav horod-born author, Olek- ren’s theme. This is what we tor’s freedom in this situation? Pidhora- sandr Havrosh, The Amaz- agreed on. So I started to search. In other words, does the ani- Hviazdovsky Bing Adventures of Ivan I saw Oleksandr Havrosh’s book matic model leave little space Syla, the Strongest Man in the at my friends’ house in Lviv. Ev- for a director to be creative? World, the project for the film erything started from there. – You have to understand was born last year, when Dnipro- that the animatic model is cre- petrovsk-based producers Volo UW: Your film has to have up to ated under my supervision. It dymyr Filippov and Andriy 10% of animation. This is an ob- helps to work with actors: before Suyarko were shooting the final vious novelty in Ukrainian cine- filming a scene, I gather the ac- scenes of Mykhailo Illyenko’s matography. But it’s quite an tors and specifically show them Firecrosser. Strong Ivan is being expensive endeavour, isn’t it? how it should look. Olha Sumska filmed at four locations and – Well, let’s think about it: in once clapped her hands, saying: touches on three countries. The the screenplay, for the scene at a “It should always be done like main character is played by railway station, we need — the this so that I know what I’m sup- Dmytro Khaladzhi, who, just like actual train station, which has to posed to do in the shot!” Ivan, was recognized as the look like one from the early 20th strongest man in the world, and century, carriages with the same UW: I think that such a system is now a performer in an Ameri- requirements and a crowd scene also significantly simplified can circus … requiring 300 people. Isn’t it your work with Dmytro Khalad- better to simply draw all of this? zhi, because he is not an actor. UW: How did this project start? How did you choose him and – My condition was for a good UW: In addition to the anima- how did you prepare him for his quality screenplay with a clear vi- tion, so-called animatics — a first ever role in a film? sion of its development — I wasn’t visualized computer model of – I found him by accident. even interested in money. The the film – has been created for And the fact that he is not an ac-

Events 16 October, 7 p.m. 17 October, 7 p.m. 17 – 20 October Romeo and Juliet La Traviata UA/PL ALTERNATIVE MUSIC MEETINGS National Opera of Ukraine National Opera (50, vul. Volodymyrska, Kyiv) of Ukraine Dzyga, Dyvan festival (50, vul. Volodymyrska, Kyiv) restaurant Sergei Prokofiev’s ballet in 3 (35, vul. Virmenska, Lviv; 2, acts, is known for its beauti- When Giuseppe Verdi’s opera was Bessarabska Ploshcha, Kyiv) ful set, exotic costumes and first presented to the public in masterly choreography. The 1853 in Venice, both critics and the The festival will be a platform for dancers immerse themselves audience did not like it because Ukrainian and Polish underground in their performance to such of its immoral subject. Today, La musicians to meet and interact with an extent, that it seems as if Traviata attracts full houses and alternative music fans. This year’s the heroes of William Shake- long standing ovations. The opera festival will take place in two cities of speare’s tragedy have been is based on The Lady Ukraine. Polish bands The transferred from the pages of of the Camellias by Kurws, Baaba feat. Gaba the book and relive this story Alexandre Dumas, fils, Kulka and drum’n’bass on stage, over and over again. where a once famous band 60 Minut Projekt Surprisingly, the original ver- courtesan dies of tu- will present the latest sion of the ballet had a happy berculosis, forgotten trends on their music ending. In time, the directors and abandoned by the scene while Ukraine will changed it so that it cor- people closest to her. be represented by the responded with the original. The opera is a convinc- Stepan & Meduza trio The premiere took place in the ing drama from begin- and the Singleton indie Czech Republic in 1938. ning to end. rock band. 54|the ukrainian week|№ 16 (39) october 2012 reviews & event calendar|culture & arts but at the beginning of the film, he himself still looked like a child — he came from a village to the metropolis and saw a car for the first time, wow!.. The most important thing for us in the film is that everyone who speaks to Ivan, changes. The boy was a thief, but becomes an honest person. And even the anti-hero, Fix, who does nasty things to Ivan – when Ivan breaks a record, winning against the Czechoslovakian champion, the only one in the hall who claps for him is Fix. Ultimately, Fix gives up his life for him. UW: What is the moral of the story? – A person who has a pure soul, unconsciously changes the world around him/her. I’m not going to argue about whether Firtsak, the real man behind the protagonist, was such a person or not. A movie is a movie, and this one is also a children’s movie. So we show this to children, literally tor – well, we had no other op- thing that everyone can do – not show them, because a person has tion. But we came up with one necessarily an actor. We spoke to to either say or do something. So interesting thing — when we un- the young actor playing the role we allotted actions to our heroes. derstood that we couldn’t find of the boy (the young Ivan – Ed.) Cinematography is not theatre, it someone who was both an actor as if he was an adult, psychologi- doesn’t have to have visualiza- and a person with the physique cally preparing him for the adult tion. In conclusion: the brief ac- we required, we simply took the execution of his role in the scene tion of a person says more than a text away from Dima. So he be- and for serious communication long-drawn out ambitious talking gan to work with his eyes, he be- with adults, with Ivan himself, without doing anything particu- gan to work internally, some- who can break a person in half, lar.

19 – 21 October 29 October, 7 p.m. 1 November, 7 p.m. Cheese and wine Scorpions Deep Purple festival Sports Palace Sports Palace Lviv (1, Sportyvna Ploshcha, Kyiv) (1, Sportyvna Ploshcha, Kyiv)

Lviv will soon host a big day The legendary hard rock band will One of the most popular rock bands for gourmands and a delicious once again rock Kyiv as part of its of the 1970s will visit Kyiv. Its heavy celebration for all locals and visi- “The Final Sting” world tour. This is music still unites generations of tors. They will have the chance to the second part of the Scorpions’ last young and older fans. This is all savour a wide selection of cheeses tour where they will play a completely about Deep Purple, a UK band that and wines and learn about cheese different programme, including songs has a history covering almost 45 and wine-making traditions in from their latest album Comeblack, years. When the musicians are on Lviv. Each of the released in 2011, is a record made up stage, charging the audience with three days will of completely new versions of their their drive and energy, it’s hard to offer a variety of greatest hits. The rich programme will believe that so many years have entertainment give everyone a wealth passed. “It’s including music of positive emotions. so great, to sit concerts. The list This is the last chance next to your of guest stars is for all Scorpions fans to dad who is over currently being see their idols on stage. 45 and shout kept secret, but The Scorpions are ending out the lyrics organizers prom- their music career with along with the ise only pleasant this second part of the band,” excited surprises. tour. fans claim. № 16 (39) october 2012|the ukrainian week|55 navigator|Urban exploration Thrill Seekers Find Adventure In Ukrainian Cities Extreme city tours reveal a different Kyiv

Article and photo: Vladyslav Vozniuk

rban explorers have found a unique alternative to the routine of Uhousework and peaceful beer sipping in pubs. Their hobby is a radical kind of city tour. They might climb a 136 metre high bridge over the Dnipro, descend into metro tunnels or discover an abandoned bunker – all within their own city. Underground waters The bigger the city, the more exciting its sites, such as abandoned houses and labyrinths of old courtyards. Most of the extreme tourists who enjoy this sort of exploration are photogra- phers. In pursuit of a unique shot, they forget their fear and end up in places that very few people have the privilege of see- ing. Some view this as a great way to relax, admire urban beauty or plunge into extreme adventures without even leaving the city. Once the urban explorer emerges from the city’s depths, he or she can be at home taking a warm shower within less than an hour. The hobby can reveal new horizons within cities that seem so familiar. Few Kyivites know that their city has nearly 60 underground rivers mentioned in ancient chronicles. Long ago, the place that now hosts a modern megalopolis had been home to wooded hills with deep ravines where small rivers and streams ran. As the city grew and ex- panded, the clear waters turned into sewage channels completely concealed under concrete. These modifications were made a long time ago, so the underground reservoir tunnels often have interesting old designs or carefully built brick walls. The most attractive underground rivers are 56|the ukrainian week|№ 16 (39) october 2012 Urban exploration|navigator Thrill Seekers Find Adventure In Ukrainian Cities

Klov, Hlybochytsia and Nevod- Extreme city tours A night atop Kyiv’s nychi. Klov, Khreshchatyk and reveal a different 136 metre high the rapid Klovytsia run into a Southern Bridge single river called Prozorivsky. Kyiv The Khreshchatyk stream runs in an old brick tunnel under Kyiv’s central street. Construction of the tunnel was launched in 1888. Until then, the place that would once host the central street was often flooded during heavy summer rains. According to some sources, people and horses even drowned there. The names of the Verkhniy and Nyzhniy Val streets (Upper and Lower Wall) come from the earthen retaining walls built along the Hlybochytsia river (the Deep River) that now runs be- neath the centre of the boule- vard. Hlybochytsia was straight- ened in the early 19th century and later hidden under asphalt. The name of Hlybochytska Street also comes from the stream flow- ing under it. Kadetskyi Hai or Cadet Park, a small river under the Railway District, is also surrounded by solid walls. They form a spacious modern box of iron and concrete. Since the water flows under the railway in many places, engineers used some unique solutions when designing the reservoir. If you prepare to travel underground you should bring rub-

Urban exploration trends Diggers prefer anything that is below the floor. They descend into abandoned bomb shelters, underground river reservoirs, drain tunnel labyrinths and other underground pas- sages. Roofers are less extreme than diggers. They prefer to have professional cameras every time they watch a sun- set on the roof with a glass of wine. Industrial tourists enjoy huge abandoned (or still used) industrial sites, abandoned houses and military objects. Infiltrators see no boundaries. They penetrate no-entry zones, guarded objects and always stick their noses into something they should have stayed away from. Their greatest de- light is to get past the guards unno- ticed. № 16 (39) october 2012|the ukrainian week|57 navigator|Urban exploration

A dungeon of the Kyiv fortress

The abandoned luxury of a pre- revolution mansion

An abandoned ber boots, a construction hard that simple – romance is at arm’s service elevator in hat and old clothes you are not length. You can savour the sun- an old mansion afraid to stain. Two headlamps set with your sweetheart or enjoy are a mandatory element. The meditation in solitude. The easi- tour may turn out to be fatal: est way to get to a roof is via the rain can fill the tunnels with wa- fire escape, yet not everyone will ter. They serve as storm drain- risk doing that. Even experi- pipes, sending rainwater to the enced roof-hoppers consider this Dnipro. Four urban explorers extreme. Another way is to find a have already died in the Pro- building under construction in zorivsky reservoir during heavy the downtown or on top of a hill rains. Following some rules (see and ask the guards to let you Safety Guideline) will help you climb to the roof. Just come avoid the threat. around on a weekend when the Explorers often encounter se- builders have the day off and curity guards while in pursuit of spend a day on the roof for just exciting sites. Every interesting UAH 50. Many entrances to the place in Ukraine is most often roofs are open – it just takes hidden from sight, while any some time and effort to find place open to the public inevita- them. bly has some annoying attri- Abandoned houses merit spe- butes, such as crowds of people cial attention. Clearly, one will and chaotic hot-dog and souve- find no treasures there, yet the nir kiosks. Urban explorers al- special ambience is often worth ways choose the first option – no it. Everything is interesting and matter what the outcome will be. mysterious there, from the smell As Mark Twain once said, in the attic to spacious empty “Twenty years from now you will rooms with high ceilings and be more disappointed by the deep multi-layered cellars. Most things that you didn’t do than by abandoned houses are guarded the ones you did do.” because they are often owned by someone who does not care what Romance next door happens to the building itself. As Where is the most romantic a result, architectural sites often place in town? A roof! Yes, it’s fall into disrepair. They are even- 58|the ukrainian week|№ 16 (39) october 2012 Urban exploration|navigator

A labyrinth of corridors between abandoned ballistic missile tunnels in Vinnytsia Oblast

A giant ventilator resembling an airplane turbine feeds metro tunnels

Batkivshchyna or Fatherland, 1,350 metres deep, located in Kryvyi Rih, is one Ukraine’s deepest, oldest mines tually demolished and the owner a code of conduct on locations, gets what he wanted. The guards as well as safety guidelines. For are there to ward off squatters instance, urban explorers are who occupy houses without title, not allowed to take away any- right or rent payment. A curious thing they find in abandoned explorer may wander through the houses, leave garbage or destroy rooms and corridors, provided anything there. In fact, the ur- that nobody sees him. Without ban exploration trend has all of guards, hordes of homeless peo- the elements typical of a subcul- ple quickly turn the buildings into ture, such as art dedicated to it, trash piles. Moreover, marauders concerts and exhibitions in un- and metal hunters are frequent usual places, and tours for urban guests there, and running across explorers from other countries. one may be dangerous. In terms of legitimacy, an ex- Ascending the highest part of plorer may go anywhere that is the Moscow Overcome the barriers not locked in Ukraine. Issues Bridge in Kyiv The Internet hosts many web- with guards are largely solved on sites where urban explorers the spot. The latter often look at share insider info about inter- urban explorers they run across esting objects, arrange tours and as insane and let them go be- discuss anything related to their cause they see that the tourists hobby. They post guidelines and have no criminal intentions.

Safety guidelines 1. Never go underground alone – you should always have someone to save you if you get into trouble. 2. Your family or friends on the surface should know where you have gone. 3. Go to the underground only in dry weather with no possibility of rain. The best time to do this is in winter. 4. Light is your life so you need reliable headlights. 5. Before going anywhere, think twice about how you are going to get out of there.

6. Do not drink any alcohol prior to or during your expedition. y e vh n lata photo: № 16 (39) october 2012|the ukrainian week|59