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Ukraine Shackled by Revolution and Oligarchs

Published: March 5, 2014 (Issue # 1800)


Many people see theUkrainian uprising as adirect result ofa sort ofdoubles match that paired ousted Presidents Vladimir Putin andViktor Yanukovych against German Chancellor Angela Merkel andEuropean Commission President Jose Manuel Barroso. Others suspect that Washington instigated theturmoil. But if we clear thehaze surrounding thecrisis, then suddenly we can see that thereal root ofthe problem lies buried deep beneath thesurface: anintricate web woven byUkraines wealthiest business leaders.

It would be amistake tothink that Ukraine wants torepeat Russias accomplishments andYanukovych sought toreplicate Putins success as apowerful leader. Even though thetwo countries share asimilar language andculture, their political systems are vastly different, especially when it comes tothe part played bywealth businessmen ininfluencing politics.

Bythe late 2000s, theoperative influence ofbillionaires ondaily politics had almost completely vanished inRussia, mainly aresult ofmeasures taken byPutin. Clear examples ofthose measures include the10-year imprisonment ofRussias once most wealthy man, Mikhail Khodorkovsky, andthe banishment ofone-time Kremlin powerbroker Boris Berezovsky intoself-exile andapparent suicide inBritain. While Russian billionaires visibly controlled politics via the Family atthe end ofthe Boris Yeltsin era, Putin systematically destroyed their influence byappointing siloviki, who have controlled Russia forthe past decade.

Incontrast with Russia, Ukraine has established afairly unique political system after the1991 dissolution ofthe Soviet Union. Similarly toRussia, several billionaires andtheir clans have emerged due tothe unaccountable andfast privatization offormer state assets under President Leonid Kuchma during the1990s. Dominant clans fromDonetsk, Dnipropetrovsk andKiev have appeared inmetallurgy, banking, energy andother industries.

Bythe early 2000s, Kuchmas presidential powers began tofade thanks toa status quo-based system that lacked reform. That is why thelast few years ofhis regime are known income circles as theKuchma vapidity.

Enter anunexpected andinteresting turn ofevents. In2004, Ukrainian voters elected apresident, Viktor Yushchenko, who was out ofthe reach ofthe clans influence. Yushchenko, with his independence, patriotism andradical anti-corruption andanti-Russian attitude, became asignificant threat tothe billionaires who controlled Ukrainian politics. Yushchenkos supporters were mere businessmen fromthe western part ofUkraine: small fry compared tobillionaires such as Rinat Akhmetov andDmytro Firtash. This is exactly what proved tobe Yushchenkos undoing. He only had thesupport ofthe masses but barely any financial or political support fromthe ruling elite. That disadvantage proved tobe quite costly inan oligarch-controlled nation such as Ukraine.

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ALL ABOUT TOWN

Wednesday, Oct. 1


The St. Petersburg International Innovation Forum 2014 kicks off today at Lenexpo, where it will be presenting the latest and greatest ideas until Oct. 3. Focusing on economic development and the decisions and measures necessary to encourage development in Russias most important industries, the event is a possibility to discuss the innovations currently available in a variety of fields.


Representatives of the Russian and international media industries arrive in St. Petersburg for the first ever International Media Forum being hosted by the city until Oct. 10. With a variety of events on tap, including workshops, lectures and film screenings, the event plans to reemphasize the citys reputation as the countrys culture capital and as an emerging market and location for the visual arts.



Thursday, Oct. 2


The celebration of the bicentennial of the birth of Mikhail Lermontov continues with todays free exhibition in the citys Lermontov Library at 19 Liteiny Prospekt. Titled Under the Rustling Wings, the temporary exhibition will feature the costumes and scenery used in the 1917 production of Lermontovs play The Masquerade, which he wrote in 1835 when he was only 21 years old.



Friday, Oct. 3


Learn more about how to manage and evaluate employee performance during SPIBAs Human Resources Committee meeting this morning on Employee Assessment: Global and Local Trends. Starting at 9:30 a.m., the discussion will touch on such topics as the partnership between HR and business, reliable assessment strategies and more, with Tatiana Andrianova, the head of the SHL Russia and CIS branch in St. Petersburg, as the featured guest. Confirm your participation by Oct. 2 by emailing office@spiba.ru or calling 325 9091.


AmChams Procurement Committee Meeting is at 9 a.m. this morning in their office in the New St. Isaac Office Center on Ulitsa Yakubovicha.



Saturday, Oct. 4


Wine and cheese lovers will get their chance to revel during Scandinavia Country Club and Spas Wine Market Weekend. Going on today and tomorrow, wining diners can listen to live music, take part in culinary classes and, of course, sample a variety of fine wines from around the world. The cost of admission is 400 rubles ($10.30) for adults and 200 rubles ($5.15) for children.



Sunday, Oct. 5


Look for the latest fall fashions at the Autumn Market today in Freedom Anticafe at 7 Kazanskaya Ulitsa. The minimarket plans to offer clothes more flattering than the puffy jackets that are a staple of the citys cold-weather fashion, while offering the same amount of protection from the biting winds blowing off of the Baltic.



Monday, Oct. 6


SKA St. Petersburg, the citys KHL affiliate, welcomes Slovakian club HC Slovan in a match-up tonight at the Ice Palace near the Prospekt Bolshevikov metro station. The puck drops at 7:30 p.m. and tickets can be purchased on the clubs website or in person at either the arenas box office or the clubs merchandise store on Nevsky Prospekt.



Tuesday, Oct. 7


Learn more about Russias energy industry at the St. Petersburg Energy Forum that begins today and runs through Oct. 10. Attracting industry experts and political and business representatives, the forum plans to welcome more than 350 plus companies and their representatives to discuss the future of Russias largest economic sector.



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