AS YURIY LUTSENKO AWAITS PAGE 2001 NOBLE PRIZE WINNER MICHAEL PAGE VISIT TOP 10 MYSTERIOUS PAGE THE VERDICT, HIS LAWYER REVEALS SPENCE TALKS ABOUT OBSTACLES ON SPOTS IN UKRAINE DETAILS OF THE PROCEEDINGS 14 UKRAINE'S Way TO GROWTH 24 IF YOU DARE 48 № 3 (26) MARCH 2012 WWW.UKRAINIANWEEK.COM FOR FREE DISTRIBUTION Featuring selected content from The Economist |CONTENTS BRIEFING FOCUS POLITICS Kliuyev becomes Getting Ready to Give Cadres Are Important: Secretary of “a Punch in the Face”? Recent appointments the National The government is suggest that Security and searching for mechanisms Mr. Yanukovych does not Defense Council to offset the huge loss of trust the Party of Regions’ with an Eye on popularity cadre reserve Elections 4 6 10 On His Majesty’s Lawyer Oleksiy Secret Service: Bahanets: Whose interests will “Not a single witness the new SBU Chief in court said that protect? Yuriy Lutsenko was 12 guilty” 14 18 ECONOMICS Court on Demand: Offsetting Populism: Addicted to The Constitutional Bringing social policy Spending: Court is losing out of the legislative Ukraine is its reputation as field to be manually increasing foreign an independent managed by the debt, producing less arbiter 19 government 20 and buying more 22 NEIGHBOURS Michael Spence Love in a Cold Camouflaging Its Weakness: explains why Ukraine, Climate: Gazprom’s aggressive policy unlike Brazil or South Germany’s eastern hints at problems in Mr. Korea, has failed to policy has never Putin’s energy empire, make an economic been stronger but Ukraine will not benefit breakthrough 24 27 from this 28 THE AMBASSADOR INVESTIGATION HISTORY Wolf Dietrich Heim Mayhem in Donetsk: Eastern Convicts: talks about cooling relations Food quality check 1942 saw the between the EU and Kyiv, ends in a fight beginning of the mass the prospects of Austrian deportation of people banks in Ukraine and the from Ukraine for forced future of the Eurozone labour in the Third 30 34 Reich 36 CULTURE & ARTS Cloaked in Bearskin: Making It Real: Attack of the Clones: Ukrainian-Georgian- An overview of George Lucas talks German film “Ursus” Ukrainian films on big about why he is is one of the most screens or about to be bringing Star Wars anticipated movies released back to the big of the year 42 44 screen 46 NAVIGATOR Top 10 Mystical Spots in Ukraine: A tour of thrilling and mysterious adventures 48 international monthly edition The Ukrainian Week № 3 (26) March 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: ТОV SKIMP, TOV ART STUDIYA DRUKU; vul. Boryspilska 15, Kyiv Serhiy Lytvynenko, Editor-in-Chief, The Ukrainian Week Ordering number: 134-02. Print run: 15,000 Natalia Romanec, Shaun Williams, Editors; Sent to print on 24 February 2012 Anna Korbut, Translator Free distribution № 2 (25) FEBRUARY 2012|THE UKRAINIAN WEEK|3 BRIEFING| 8 February 15 February BYuT’s Roman Zabzaliuk presents 200 Afghan war veterans turn their backs on the presi- recordings, in which the leader of dent as he arrives to put flowers to the peacekeepers’ the Reforms for the Future faction monument after waiting for 1.5 hours in the freezing discusses payment for opposition cold, on the other side of the president’s security and MPs quitting their factions iron fence QUOTES ARSEN AVAKOV is on the run The former Chairman of the Kharkiv Oblast State Administration from the Orange government faces criminal charges and is on the interna- tional wanted list. Mr. Avakov is in Europe. Meanwhile his apart- ments are being searched VOLODYMYR KONSTANTYNOV feels Ukrainophobic The Speaker of Crimean Parlia- ment gets irritated because many min- isters address him in Ukrainian JOSE MANUEL PINTO TEIXEIRA Kliuyev Appointed does not believe Mr. Yanukovych EC Ambassador sees no point in dialogue with the Ukrai- With Eye on Elections nian president as “no signs of improve- ment can be seen” n February 14, Andriy Kliuyev, be the main candidate for the prime minis- head of one of the key influential ter's chair after Mykola Azarov steps down. OLEKSANDR KOVALIOV groups in the government, was dis- The latest reshuffling once again suggests faces pressure Omissed as First Deputy Prime Min- that Azarov's resignation is imminent — ister and appointed Secretary of the Na- former Health Minister Oleksandr On- The leader of Afghan veterans disloyal to the govern- tional Security and Defence Council ishchenko was said to be close to Azarov. ment says he is facing (NSDC). Raisa Bohatyriova, who is linked Serhiy Tihipko, Iryna Akimova, Serhiy Ar- pressure from tax to Rinat Akhmetov’s financial-industrial buzov and Valeriy Khoroshkovsky are men- authorities and group and had headed the National Secu- tioned as possible successors to Kliuyev. the police. Similar rity and Defense Council (NSDC), became However, the biggest question is how the lat- information is coming Deputy Prime Minister and Health Minis- est reshuffling will change the balance of in from the leader of ter. It remains to be seen who will take Kli- power among various groups in the govern- the Donetsk Union of uyev’s position in the government. Experts ment team? Bohatyriova’s dismissal is no Afghan veterans are inclined to believe that this person will surprise, but Kliuyev’s new appointment is The month 1 February 1897 7 February 1483 8 February 1106 in history Yevhen Malaniuk, Ukrai- Ukrainian scholar Yuriy Prince Volodymyr Mono- nian poet, journalist and Drohobych publishes “Prognos- makh compiles “The Testa- arts expert, is born tic Estimation of the Year 1483” ment”, the first didactic book in Latin in Rome in which he in Kyiv Rus predicts two lunar eclipses, calcu- lates moon phases and mentions planetary movement 4|THE UKRAINIAN WEEK|№ 3 (26) MARCH 2012 |BRIEFING 16 February 17 February 19 February 21 February The European Parlia- 500 prisoners of Vitaliy Klychko defends Disabled miners ment condemns Russia Berdiansk jail go his WBC heavyweight break into the for unfair election and on a hunger strike championship belt Ministry of Social use of force against the to protest against Policy to demand the opposition inhuman conditions recalculation of their compensations gas transport system to Russia. He is also im- NUMBERS plicated in a scandal in Europe. According to some reports, Kliuyev channelled financial Ukraine’s public debt hits aid Ukraine received from the European USD 59.216bn in 2011 Union to enterprises associated with him, according to the Ministry of Finance prompting Europe to slash its aid overall and to shut down some programs completely. Despite these reservations in the media about The Ukrainian army has Kliuyev, arguments for a completely different story behind his change in jobs are just as 18 fighter aircraft in compelling. As NSDC Secretary, Kliuyev will working order focus on preparations for the parliamentary based on data from the Center election. (He concurrently heads the Party of of Army Survey, Conversion and Regions’ campaign headquarters.) In intro- Disarmament ducing Kliuyev to the staff and members of the NSDC, Yanukovych emphasized, according to his press service, that Kliuyev’s task is to build The Russian Black Sea fleet occupies the security sector “in new conditions while 38 berths meeting the challenges faced by our country". in Sevastopol without permission The president expects all power structures to effectively fulfil the tasks set by the new secre- Based on a survey by the Don't Be tary (who is also, let us not forget, the head of Indifferent NGO, the Party of Regions’ campaign headquarters). That the NSDC’s role may increase is acknowl- 66% of coffee shops edged by people close to Yanukovych. “Kliuyev in Kyiv violate language legislation as they offer no menus in Ukrainian is a strong crisis manager… The apparatus of the NSDC has virtually stopped operating in the past several months, so we will see certain Kyiv dormitaries offer rooms for Euro measures to step up its activities,” presidential 2012 guests at a rate of Kliuyev Appointed aide Dmytro Vydrin said. EUR 135 per night Should this be the case, Kliuyev’s appoint- ment is a logical link in a series of reshuffles in power structures aimed at preparing Film Firecrosser collects over them to effectively fulfil the tasks set by the UAH 1mn president for the duration of the election With Eye on Elections at the box office - a record for campaign and the October election itself. Af- Ukrainian films ter all, the upcoming popular vote may lead intriguing. On the one hand, some say that to the biggest tension since the Orange Rev- his transfer is a demotion that will weaken olution. If the government attempts to rig The Ukrainian Ministry of Foreign his position. One possible reason is that, as the results in order to win at any cost, quell- Affairs pays the coordinator of the parliamentary major- ing wide public protests may become its top ity, he failed to keep opposition MPs from priority. “It makes sense that the NSDC USD 100,000 frustrating the president’s speech in parlia- would be the focal link for finding possible for a special promotion insert on ment on the day of a new session. Moreover, solutions at a time of socioeconomic ten- Ukraine in the Washington Post the Association Agreement with the EU, for sion,” Kostiantyn Matviyenko, expert at the Hardarika Strategic Consulting Corpora- which Kliuyev was responsible, has not been According to the Interior Ministry, initialed.