Archive for the ‘bureaucracy’ Category

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What is past is prologue (Shakespeare)

January 16, 2017

With Vice President Biden bidding adieu in Kyiv having been point man for the out going US Administration, naturally official statements are a mixture of thanks and platitudes for efforts past and also words of hope for the future.

Yet the words used by both President Poroshenko and Vice President Biden at their farewell meeting are hardly the most robust and unambiguous when it comes to confirming continued US policy toward Ukraine.

“We really count on the succession by the new U.S. administration in our common work” and “hope that the Ukrainian issue will further unite the entire American political spectrum and remain among the top priorities” the oratory of President Poroshenko is hardly that of a political leader confident in the future policy of an ally.

Further, despite President Poroshenko’s “hope” it is already fact that the Ukrainian issue will not unite the entire American political spectrum insofar as where Ukrainian issues overlap with Russian issues.  The reverse is abundantly clear.  Divisions are widening within the US political arena where Ukrainian and Russian policy overlaps.

In response, VP Biden stating “I hope that the next administration will also want to be a supporter and partner in your continued progress” does little to convey anything solid either.

Yet more “hope“.

Perhaps one more forlorn “hope” is that the in-coming administration even has a Ukraine policy around which the American political spectrum can either diverge or unite – particularly when it comes to overlapping Russia issues.

What is past is prologue (Shakespeare)

Thus what has gone before may have little to offer by way of predicting, and therefore understanding, what is to come.  It may be that there is, as yet, no policy regarding Ukraine as far as the in-coming Administration is concerned, and thus policy drift and/or meandering is what awaits to be exploited by those that seize the moment.

“Hope” no matter how many times it appears in presidential prose is not a strategy.  And it is certainly not a strategy Ukraine will be wise to employ with regard the emissions of the new US Administration.

If “hope” is to play any part in Ukrainian strategy, it is perhaps better replaced with “optimism” and employed within a domestic political and policy context.  “The essence of optimism is that it takes no account of the present, but it is a source of inspiration, or vitality and hope where others have resigned; it enables a man to hold his head high, to claim the future for himself and not abandon it to his enemy.” (Bonhoeffer).

It may be prudent therefore to deliver some swift, sensible, domestic inspiration by way of policy!

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Odessa gets a NABU Chief (not without history)

January 13, 2017

Odessa has eventually been appointed a regional NABU Chief.

In fact the “Odessa” NABU region covers Odessa, Kherson, Mykolayiv and Kirovograd.  A geographical area larger than some European countries and given the number of NABU mandated public officials within, no small number of fish to shoot at in the regional barrel.

The appointee, following what was probably not a competition but rather a “competition” is Dmitry Rudenko, 15 years in law enforcement in Vinnitsa and holder of 2 law degrees and a further degree in accounting and auditing.

Prima facie a fairly good mixture of education and experience for his future role.

Of course the cynical reader cannot help but note he hails from the same city as Prime Minister Groisman, and Petro Poroshenko’s political stronghold.  One of those “coincidences” that so often occur – no differently than being able to pick the “winner” from “competitions” in sensitive appointments relating to power and regional control almost every time.

Mr Rudenko however does not come without his own skeletons – the largest of which relates to the late, well known human rights activist from Vinnitsa, Dmitry Groisman.

Mr Groisman died a week before a court in Vinnitsa acquitted him of prosecutor nonsense.  Criminal proceedings were opened into those that brought the case which it was stated in court, was fabricated.  Mr Rudenko was one of those against criminal proceedings were opened (and then, it would appear, quietly closed).

Mr Rudenko should of course be wished happy and successful hunting.  There are many fish in his barrel to be easily shot, and some that will require a little more skill.  The cynical reader will also ponder whether some will require tacit political approval or deniable political targeting.

Time will tell whether those close to the leading BPP political lights will suffer NABU attention in Odessa as swiftly or as thoroughly as those that are not.  The perception in Odessa however, will be that Mr Rudenko is already sullied.

(Quite a week for Odessa now President Poroshenko has officially appointed Ihor Kolomoisky’s man Maxim Stepanov as Governor.)

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Ukraine begins to lobby DC – professionally

January 7, 2017

Many times it has been written that Ukraine would be wise to lobby Washington DC beyond the abilities of its own diplomatic mission and occasional delegations.

So it comes to pass, and probably due to a Trump presidency almost being upon Ukraine, the national leadership has decided to engage professional lobbyists to champion Ukraine inside “The Beltway”.

That said, whilst Ukraine as a State has taken its time to arrive at this decision, many of the Ukrainian elite have long since lobbied their own causes/interests within DC.

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Ms Tymoshenko outspends all others (despite her meager income according to her e-declaration.)

The Ukrainian State has chosen to spend a seemingly meager sum of $50,000 per month having BGR Group strengthen ties between the USA and Ukraine, and further encourage US investment and/or US investors to look at Ukraine.

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Not before time, and perhaps only because of who the next US president will be, has Ukraine as a State started to spend money where many of its nefarious elites have done so for years.

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The contract would seem to last for the duration of 2017.

Although this is definitely the right policy for the Ukrainian State to engage in – indeed to belatedly engage in – a reader may ponder just what returns can be expected for $600,000 per annum when considering that Ms Tymoshenko spent more than that amount in 2014, that same amount in 2015, and would appear to have very little to show for it – unless her lobbying was intended to insure very little was publicly shown regarding her.

So, what do you get for $600,000 of lobbying inside “The Beltway” (even if leveraged with a cooperative Ukrainian Ambassador and embassy)?  BGR Group and 2017 will provide the answers!

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Ukrainian MIC to produce the M4 WAC47

January 3, 2017

Although it is perhaps not secret despite being secret, for quite some time the US has been toying with the idea of (limited) tech transfer to Ukraine with regard to matters MIC (Military Industrial Complex).

Issues that have prevented such (limited) transfers are not Ukrainian ability to produce weaponry from the transferred tech, nor those of any licencing limitations,  but its ability to prevent any tech transfer immediately being leaked to Russia.  Kremlin infiltration withing all institutions in Ukraine remains despite sweeps to remove the most obvious traitors from all institutions.

As is almost always the case, the most obvious infiltrators are not the most damaging.  Low hanging fruit etc.

Hence the tech transfer for the much mentioned Javelin (and other) weaponry providing Ukraine with the ability to manufacture its own remains in purgatory.

No surprises at the desire to assist Ukraine to arm itself vis a vis the obvious problems of a compromised and thoroughly infiltrated institutional structure with the latter prudently holding in abeyance the former.

Infiltration of Ukrainian institutions and structure is a problem that is not going to go away, but it is a problem that can be far better managed with a lot of work over the coming years.

However, there are MIC tech transfers and licencing that can occur whereby there are no or manageable classified issues to consider – thus predominantly only commercial issues are to be solved.

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It has come to pass that Ukrboronservis, part of the State Ukrboronprom monolith, is about to commence the manufacture of the M16 (or more accurately the M4 Carbine WAC47) in Ukraine in partnership with the US company Areoscraft.  The aim of this project is to equip the Ukrainian army with NATO standard weaponry produced in Ukraine by Ukraine and for Ukraine.

Messrs Vladimir Korobov (Ukrboronprom), Sergei Mykytyuk (Ukrboronservis) and Igor Pasternak (Areoscraft) made the very clear inference that the M4 WAC47 was the first weapon for this pilot project and cooperative agreement.  Ergo by inference there will be others, similarly of NATO standard.

The question is whether what follows this first project involves a tech transfer far more sensitive than how to manufacture, and licence the manufacture of, a M4 Carbine.  In short, how quickly and thoroughly can Ukraine reduce the amount of institutional and MIC Kremlin infiltration to a level that the US is prepared to transfer the tech and licencing for the manufacturing of weaponry more advanced than an M4 Carbine?

It appears the M4 WAC47 is set to become a Ukrainian produced standard piece of equipment for the Ukrainian military with the unambiguous intent of making its armed forces and its equipment interoperable with those of NATO.  A welcome step along an obvious MIC pathway – as stated in a less than flattering entry from February 2015.

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Pinchuk & the WSJ

January 1, 2017

It has to be said that Viktor Pinchuk of all the Ukrainian oligarchy has always been the most intriguing for this blog.

Firstly, compared to the others, Mr Pinchuk is actually a clever guy.  He had managed to become a multi-millionaire through his engineering creativity before marrying the daughter of former President Kuchma – and thereafter leveraging that marriage during the Kuchma epoch to move from being a multi-millionaire to a billionaire.

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His time directly (rather than indirectly) in Ukrainian political life as a parliamentarian was really rather brief and began in the same year as his marriage to former President Kuchma’s daughter in 2002 and ended with the “Orange Revolution” of 2004/5 with Mr Pinchuk having backed Viktor Yanukovych.  Despite easily being able to buy his way into any parliament, he chose not to do so.

Since then his political influence has been indirect insofar as manifesting via parliamentarians both national and local that are loyal to him.  It should also be noted that “his people” are generally far more subtle than the drones of Kolomoisky, Firtash or Akhmetov.

He also has a penchant for collecting famous friends – The Clintons, Damien Hirst, Elton John etc.

In fact, aside from feeding from the State subsidy trough and self-interest indirect political machinations, Mr Pinchuk set about rehabilitating his image through philanthropy and his own foundation from 2006 onward with very little domestic public oratory or prose.

The annual YES conference is a Pinchuk brainchild that he funds – which in 2016 notably saw Mr Pinchuk pay Donald Trump to speak at (albeit a speech lacking in clarity and not without technical problems) via a video link despite his association with (and donations to) the Clintons for many years.

Perhaps a lesser known fact was that during the “Revolution of Dignity”, Mr Pinchuk funded the provision of medical supplies to treat the injured.

Aside from a few historical legal battles, most notably with Ihor Kolomoisky over assets, Mr Pinchuk rarely features in the news – unlike many of his peer oligarchs.  There is in fact very little that can be attributed to him personally by way of public statements or on the record oratory.  Clearly a deliberate policy on his part.

It was something of a surprise therefore when an article appeared in the WSJ, authored by, or ghost written and then attributed to, Viktor Pinchuk.  The article has ruffled many Ukrainian feathers, both political and societal, being prima facie interpreted as a plan for capitulation to The Kremlin.

In a nutshell he spoke (wrote) out in favour of elections in the “DNR” and “LNR” by politely forgetting about Crimea if it meant an end to the deaths in the occupied Donbas, the abandoning of any thoughts of joining NATO and the creation of a formal understanding that Ukraine would not be joining the EU any time soon.

Now to be fair, there are those on the Crimea Committee of the Verkhovna Rada, even of patriotic leaning, that have privately told the blog that they foresee Crimea returning to Ukraine only if the Russian Federation implodes in similar fashion to that of the USSR – and if that be so then the returning of Crimea will be an issue dwarfed by the ramifications of such an implosion for Ukraine more generally.

That said, there is none on the said committee that would advocate anything other than “Crimea is Ukraine” as a domestic and international policy – quite rightly.

With regard to the EU, as previously written the Association Agreement (and DCFTA) is not an instrument that takes Ukraine into the EU.  Only the completion of the Aquis Communautaire can do that – and that is a process Ukraine has not even asked to commence.  The simplest way to view the Association Agreement is as a document that brings “European norms” to Ukraine at a speed at which Ukraine can achieve them – ie it brings “Europe” to Ukraine at a speed and in chunks that Ukraine can handle/digest.  For Ukraine to go to the EU, an entirely different thing, then it is the Aquis that is the only route – a route more demanding than anything within the Association Agreement.

Likewise, whatever Ukraine may or may not do with NATO, it is currently a long way from being at a civilian and military standard by which it could join.

In short, Ukraine is decades away from meeting the requirements of the Aquis for EU accession – if it ever applies.  It is probably about a decade away from fully meeting the civilian and military standards required for NATO entry – should it ever ask to join.

Those are the bureaucratic realities and limitations of Ukrainian reformation and their speed – notwithstanding political limitations of those that would have to agree to any Ukrainian accession.  None of this is a secret.  The respective institutions know it.  The Kremlin knows it.  Ukraine knows it.  And Mr Pinchuk knows it.

The domestic angst naturally, insofar as NATO and the EU is concerned, comes from his call for codification of such matters and the legislative boundaries they would place upon Ukraine for at best, uncertain and ill-defined “gains”.  Peace at any cost does not bring peace – it brings an armistice fated to fail at some undetermined point in the future.

Why then, has Mr Pinchuk who rarely makes public statements, decided now is the time to make such a statement and one that is guaranteed to irk the public, the political class, and paint him as a Kremlin stooge domestically and among many of Ukraine’s “friends” abroad?

Is it a reaction to witnessing fellow oligarch Dmitry Firtash exiled to Vienna, or Ihor Kolomoisky lose PrivatBank to nationalisation, or seeing all oligarchs with fingers in high energy usage industries (including Mr Pinchuk) now subject to energy pricing that sees an end to subsidies/most favoured user status?  It seems somewhat unlikely.

Will the oligarchy now find common ground for a robust fightback against the government in 2017, and this is somehow Mr Pinchuk declaring unity?  Also somewhat unlikely.

Has Mr Pinchuk simply decided that giving in to The Kremlin is the only way to undo the current deadlock?  Maybe, maybe not.

Has he been bought off or manipulated by Moscow somehow?

As the chances of any of his WSJ points being implemented are currently very slim at best, and will make him extremely unpopular at home, how does Mr Pinchuk benefit from his unusual public intervention?

All questions to be asked.

Also to be asked are why make such statements now, and why chose the WSJ to do it in?

The answer may be that the article was written and published in the WSJ specifically for one reader.  That reader being Donald Trump.

It may well be that Mr Pinchuk has little belief that what he has written will become policy and be implemented.

He may well not believe that this is the right policy either.

However, just as with voting at the UN, it is not that uncommon to see some nations prima facie voting against their own interests in order to curry favour with others – in the full knowledge that the vote will be vetoed by yet another.

Maybe it was written to defend the business interests of Mr Pinchuk in the USA?

Perhaps the end result here, considering Mr Pinchuk’s penchant for collecting “friends” like the Clintons, Damien Hirst and Elton John etc, is that Mr Pinchuk may be seeking to become the Ukrainian “name” most liked and granted most access by Donald Trump – no differently than Nigel Farage is angling to get (and may succeed) more personal interaction with Donald Trump than UK Prime Minister Theresa May.

 

If Mr Pinchuk can achieve a personal status that grants him more access to Donald Trump (and a kinder ear) than President Porosehnko simply by writing something he believes Mr Trump would read agreeably within the WSJ, then he may feel it a gamble worth taking with the repercussions among Ukrainian domestic politics a prize worth chasing.

Perhaps a lens through which to view Mr Pinchuk’s rare public prose?  Perhaps all it takes is being a billionaire, a few well chosen (if never implemented) words in the WSJ agreeable to a personality like Mr Trump and suddenly Mr Pinchuk becomes “Don’s man in Ukraine”.

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Odessa Port Side shuts down

December 30, 2016

Having twice failed to privatise the Odessa Port Side plant during 2016, and with debts mounting to creditors such as Naftogaz, the decision has been taken to temporarily, or perhaps better stated indefinitely, close the plant down with effect from 30th December.

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Valery Gorbatko, the plant Director since 1986 has resigned – which for any eventual buyer or State operational reshuffle/efficiency/transparency policy for the plant is no bad thing.  Accepting that resignation promptly would be a wise move.

From now the cost to the State will be dramatically reduced to those of maintenance and salaries – minor costs in comparison to running the plant with a (currently) low global demand for product and high gas demands to produce it.

It remains an open question as to when or even if a buyer (or long term leaser) will be found for Odessa Port Side.

Some 2017 national budgetary discipline implemented before 2016 has ended?

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New Media Rules – ATO (Donbas) wef 01/01/17

December 29, 2016

For those few journalists that still attempt to cover the war in eastern Ukraine and the continuing almost daily death toll, be advised that with effect from 1st January 2017, new rules apply:

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“Since January 1, 2017, a new procedure of work for media representatives covering the ATO in the east of Ukraine will be implemented.

According to this procedure, media accredited to the Security Service of Ukraine will receive two types of press cards such as first and second level accreditation.

Second level accreditation press card (blue) allows working within the ATO area, except for forward positions of the Armed Forces of Ukraine. The procedure of reception of this press card is the same.

Meanwhile, the first level accreditation press card (pink, with number 1) allows working within the ATO area and allows working directly at the conflict line (at forward platoon strongpoints, company defence positions).

Media must undergo three day training at the Ministry of Defence of Ukraine (National Defence Ivan Chernyakhovskyi University — two days of theory, as well as at the 169th Training Centre of Land Forces of the Armed Forces of Ukraine in Desna, Chernihiv oblast (one-day practical training) to receive the press card of first level accreditation.

Foreign media accredited to the Security Service of Ukraine will receive first level accreditation press card only after obligatory one-day briefing!

More than 250 persons are undergoing training and will receive first level accreditation press cards this December. Considering the popularity of the training, three-day training will be conducted in January 2017, please, follow our updates.

Please note, a new procedure of visiting the ATO area is implemented as required by the Order of the First Deputy Director of the Anti-Terrorism Centre at the Security Service of Ukraine (Director of the Anti-Terrorism Operation in Donetsk and Luhansk oblasts) of 19.01.2016 No. 45 ‘On procedure of media admission to military facilities in the Anti-Terrorism Operation area in Donetsk and Luhansk oblasts’ (Annex 4, Order of First Deputy Director of the Anti-Terrorism Centre at the Security Service of Ukraine (Director of the Anti-Terrorism Operation) of 27.10.2016 No. 555).

If you have questions don’t hesitate to contact us +38 (067) 223 16 43; (044) 245 44 01″

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