Thursday, July 10, 2014

News from the oligarchic front in Ukraine

Analytically, there is insufficient information to conclude what the latest round of oligarchic squabbles in Ukraine leads to. Nevertheless, new facts, taken together, shed light on the emerging political disposition in this country. Potentially, the centrifugal force that initiated in Kiev last February has acquired sufficient strength to break the state forever. But let me mention the context before proceeding with the facts.

As I have mentioned before (see Creeping decentralization of Ukraine), Dnipropetrovsk governor Ihor Kolomoyskyi is a maverick oligarch who has broken the rules of the game played by the Ancien Régime in Kyiv. Apparently, his refusal to follow the rules - which can be a witty move as this chess game develops - has worried President Poroshenko (and supporting him oligarchs, most of all Dmitro Firtash and Rinat Akhmetov) so much that the latter may feel now that Mr. Kolomoyskyi is a greater threat to his group than the Donbass separatists. A few facts point in this direction.

July 8: the TV channel "Inter" broadcast a film that blamed Mr. Kolomoyskyi for, among his other sins, the creation of "private battalions." The channel belongs to Mr. Firtash who is currently on bail in Vienna waiting for his extradition, on the U.S. request, hearing to be completed. Other media attacks have been reported as well.

July 7: Mr. Kolomoyskyi proposed that the Ukrainian government "today is simply obliged to confiscate property ... of supporters of separatism (e.g.) ... UkrTeleCom ... (to form) a special company, in which shareholders are members of anti-terrorist operation, veterans, relatives of the victims. Why do some have to die for their country while the rich get richer?" UkrTeleCom is the owner of Ukrainian national telephone network and it belongs to Mr. Akhmetov.

July 6: Mr. Kolomoyskyi may visit Vienna (at least, some of his close affiliates were reported to be there), apparently, to meet Mr. Firtash. The reasons for such a meeting could be numerous: Mr. Kolomoyskyi purchased recently arrears from a bankrupt Ukrainian bank and came to discuss the terms of payment - in shares, if necessary - that Mr. Firtash owed. Apparently, with little success.

It should be added that the battalions funded by Mr. Kolomoyskyi were the prime force capturing Mariupol last month. This city is at the center of Mr. Akhmetov's business empire. The attack took place despite Mr. Akhmetov's plea to prevent military activity in the region.

Mr. Kolomoyskyi has pioneered the use of paramilitary formation to attain business means in Ukraine. Appealing to the confiscation of large property in favor of "veterans", he has made another step towards dismantling the "old" Ukraine.


P.S. July 11: The Ukrainian Ministry of Defense is reported to have rejected Mr. Kolomoisky's request to provide arms (e.g. automatic grenade launchers and machine guns) to his battalions. Minister Geletey recommends Mr. Kolomoisky to negotiate this issue personally with President Poroshenko (see Geletey refuses to transfer weapons to the volunteer battalions, in Russian)

P.S.S. July 11: A blogger reports that some Sergey Krasnovsky has come to the separatists. According to the report, he has claimed representing "a large businessman" who expects the political structure of Ukraine to be radically changed in 2-3 weeks. Mr. Krasnovsky has sought opinion on what structure the Donbass leaders would agree upon (see 
Benya prepares a coup d'état, in Russian)

The report refers, apparently, to Mr. Kolomoisky. Knowing that Mr. Kolomoisky is a seasoned corporate raider, I have mulled a wild idea that he might plan to split the region he controls (Dnipropetrovsk, Odessa, and Kharkiv) from the rest of Ukraine in the hope of signing a separate deal with Russian President Putin. The latest news is consistent with other information. First, rumors are that Mr. Kolomoisky's affiliates planned to meet with people linked to Mr. Putin in Kharkiv a few days ago but failed due to the change of leadership in Donetsk. Second, the interview given by 
Gennady Korban, the right-hand man of Mr. Kolomoisky, contains a paragraph of what the Kolomoisky's group considers to be the Putin's plan in Ukraine (see I do war and finance, in Russian.) Thus, the idea of Mr. Kolomoisky being a separatist may not be crazy after all.

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