Gaidar becomes Presidential Adviser – Why, and why now?

As unusual as it is to read anything so clearly favorable about a Ukrainian politician on this blog, or to write about a politician rather than policy per se, the following prose will be something of an exception.

Maria Gaidar has featured in the blog several times having arrived in Ukraine, being granted Ukrainian citizenship (and relinquishing her Russian citizenship), and subsequently acting as Deputy Head of Odessa Oblast Administration under Governor Misha Saakashvili.

She is perhaps the closest thing Ukraine currently has to political aristocracy, albeit her political aristocracy is rooted in Russia via her late father Yegor Gaidar (Prime Minister of the Russian Federation 15 June – 14 December 1992) and Great Grandfather Arkady Gaidar.

Nevertheless there are few, if any current Ukrainian politicians that can claim 4 generations of political lineage that have all featured at the pinnacle of national policy shaping.

(She also worked with an old friend of this blog, the late Boris Nemtsov.)

All of that said, to be fair, it is all somewhat irrelevant even if interesting.

What matters is what, if anything, Ms Gaidar not only accomplished, but how she went about it, as a Ukrainian politician in Odessa since her adoption of Ukraine (or perhaps vice versa).

Having met her several times, she is undoubtedly one of the best mannered, humble, accessible and intelligent women in Ukrainian politics – and certainly to grace the political and policy stage of Odessa.

She is clearly more than capable of acting upon a stage far greater than Odessa Oblast and yet decided to remain as a local Deputy in the Oblast Rada when the rest of “Team Saakashvili” moved on/was eased out/quit and headed to Kyiv, thus honouring her public mandate.

She has remained a solid, reliable, conscientious, almost media invisible Oblast Deputy who has, so far as can be ascertained, avoided the usual trips and traps of local governance corruption.

She also did a decent job, where it was possible, at clearing up the unintended mess left behind by Hurricane Saakashvili as he whirled around the Oblast when she was his Deputy (while allowing the intended devastation to do what it was intended to do) .

It follows therefore that the blog has no issue with the surprise appointment of Maria Gaidar as Presidential Adviser.   She is certainly brighter and far less tainted than many within the Presidential Administration.

Two questions however – Why, and why now?

Is Ms Gaidar deemed a “Saakashvili legacy” by the new Governor of Odessa, akin to an unwanted fly in his soup – and thus this appointment giving opportunity to have her officially out of Odessa often, despite her local public mandate?

Is it nothing more than a cheap. non point scoring poke at The Kremlin?

Is it a poke at Misha Saakashvili?

Is it an attempt by the Presidential Administration to lure some former “Team Saakashvili” people across?  (Albeit Ms Gaidar was clearly different in her approach to her work than the majority of that team – publicly at least.)

Cynicism asks whether Kyiv simply bereft of smart people to advice the President?

Are there other reasons, be they less than obvious or distinctly motivated by events behind the curtain, for this appointment?

And why now?

For almost a year Ms Gaidar has been, by choice, a lowly Oblast Deputy having resigned as former Governor Saakashvili’s Deputy when the Law on Civil Service came into force in May 2016.  She has been left to fester in Odessa in a political position far below her abilities, so what has now changed to warrant her appointment as a Presidential Adviser (along side her local mandate)?

Is this a reward for perceived loyalty to the President and/or people of Odessa because she did not abandon her responsibilities in Odessa and follow Misha Saakashvili?

It has to be said the appointment is a surprise, and although she is more than equal to the role, the questions of why, and why now, thus far provides for few convincing answers.  Nevertheless President Poroshenko has made this appointment for a reason and that may become clearer only later.

What is past is prologue (Shakespeare)

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!

Odessa gets a NABU Chief (not without history)

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.)

Good business, bad politics. Tigipko

Having written about Viktor Pinchuk in the previous entry, this post concentrates on another Dnipro Clan oligarch and long time acquaintance, Sergei Tigipko, who has been spending money recently.

Mr Tigipko it has to be said is an interesting soul whose business activities are somewhat difficult to keep an all-seeing eye upon.

Perhaps he is fated to be that way, for ever since birth Mr Tigipko has not been what he appears to be.  Mr Tigipko was actually born on 13th February 1960 – officially, but in fact he was born in the early hours of 14th February.  Due to a bureaucratic mix up between medical night shift and morning shift workers the wrong date was officially recorded.  It is claimed, similar to Queen Elizabeth II, he therefore has two birthdays, an official one and a real one.

Fair enough – surely all oligarchs can afford to have two birthdays.

In the late 1970’s the family moved from Moldova to Odessa and Mr Tigipko then headed to Dnepropetrovsk and the Metallurgy Institute where (perhaps with the help of a well placed step-father) he became a member of the Komsomol Committee.  In true Marxist-Leninist adherence he busied himself with organising discos and supplying the evils of western decadence – Pepsi.  It appears that a disco-loving Ihor Kolomoisky was a regular and that they became good friends.

(As an aside Mr Tigipko, or more precisely Mrs Tigipko, retain their interest in Odessa in an act philanthropy annually organising and sponsoring the Odessa International Film Festival – which is actually a very good event.)

Indeed Mr Tigipko has had good fortune in meeting business acquaintances, whilst suffering an equally poor fortune in the world of politics.

A few years of questionable military service and teaching intervene before Mr Tigipko lands the role of chief of psyops/reflexive control when he became the Second Secretary of the (Communist) party and Komsomol committees in Dnipro.  Propaganda and agitation commonly being the role of the Second Secretary – a role he was destined to fail at with the date being 1989 and the implosion of the Soviet system only 2 years away.

Nevertheless, having already forged a friendship with Ihor Kolomoisky, it is within the regional Komsomol committee he also meets Olexandr Turchynov (the current head of the Ukrainian national security apparatus and once upon a time, an ardent Tymoshenko ally).

When the Soviet nonsense all eventually crashed, Mr Tigipko had become First Secretary and in charge of the regional Komsomol cash box.  He was also by then known to Gennady Tymoshenko who was head of ideological manipulation for the Kirov District.  Gennady is the father of Alexander Tymoshenko – the unfortunate husband of Yulia.  Indeed it is rumoured that Mr Tigipko played a role in funding Ms Tymoshenko’s video empire back in the day – presumably with Komsomol cash.  Controlling that cash, he also came to the attention of Dnepro Regional Council Chairman, the infamous Pavel Lazerenko.  He had also made direct acquaintance with (soon to be President) Leonid Kuchma and Viktor Pinchuk.

A reader can now literally see the Dnipro Clan forming.

As the Komsomol system was collapsing Mr Tigipko was swiftly given a senior position within Dnipro Bank – no doubt moving to the position along with the Komsomol regional cash.  (There is no reason to believe that events in Dnipro would be any different than those elsewhere in Ukraine at the time when it comes to moving regional Komsomol cash).

Within a year the bank owners were far from getting along well and Mr Tigipko set up PrivatBank with Ihor Kolomoisky, Gennady Bogolyubov, the late Leonid Miloslavsky and Alexie Martynov.  From 1992 – 97 Mr Tigipko was Chairman of the Board of PrivatBank – although what share holding he had will probably never been known.  What is known is that the initial shareholding was not equal.  How much Komsomol/Dnipro Bank cash was used in the creation of Privat is somewhat unclear – and will undoubtedly remain that way.

Meanwhile Mr Kuchma became President Kuchma and Pavel Lazarenko became Prime Minister – leading to a split within the Dnipro Clan and President Kuchma using Mr Tigipko to keep an eye on the out-sized and out of control criminal appetites of Pavel Lazarenko.  He becomes Vice Prime Minister for Economic Reforms in order to carry out that task.

(This move obviously ruffled feathers and PrivatBank came under scrutiny for laundering money via its Riga branch.  Some things don’t change.)

Whilst in post, Mr Tigipko acted as “roof” for the French cement company Lafarge who then had a few issues with assets in Ukraine.  As Bernadette Chirac (wife of Jacques) then sat on the Lafarge board it is perhaps no surprise that Mr Tigipko was awarded French honours personally by Mrs Chirac in 1997.

By 2000 Mr Tigipko wisely quit as the conflict of interests of those around him in the Kuchma government were in all probability intractable at best and very bad for the health at worst.

By 2001 whatever shares in Privat he had were sold for a figure unknown, and he set up on his own with the TAS brand containing banking, insurance, and numerous other interests held under the usual Cypriot holding company  – which today is a beast of many tentacles – and is in fact the reason for this entry.  (Indeed Mr Tigipko sold one of his banks to Swedbank pre 2008 crisis for $735 million via TAS Overseas Investments (Cyprus)).

If business has been good, politics has not been.

Politically Mr Tigipko did not fare well under Viktor Yushenko and Yulia Tymoshenko.  Having chosen the Kuchma side of the Dnipro Clan split, thus backing Yanukovych in 2004/5 elections, that clearly did not sit well with the new “Orange” president, nor a Prime Minister that chose the Lazarenko side of the Dnipro Clan split.

Further when Yanukovych eventually became president in 2010, despite initially welcoming him into the fold, he very clearly and publicly shafted by Mr Tigipko politically.

Lo, tax avoidance aside, it clearly pays in a business sense to hold your assets offshore and in a different legal jurisdiction in a predatory political environment like Ukraine.  It is simply far easier to defend and retain your assets.

Under the current president Mr Tigipko has kept his head down making no discernible political moves and very few business moves.

However, in the past few months Mr Tigipko appears to be going on a spending spree domestically.  Having recently bought another insurance company and rolled it into his TAS insurance entities, it appears he is now entering the hotel business too.

Not only is he entering the hotel business his seems to be doing getting good deals.  For a mere $10 million Mr Tigipko has bought the Radisson Hotel in Kyiv from the Russian owners who for a long time have desperate to sell.

Now a reader may think that the hotel business in Ukraine is not one where returns will be swift – and they’d be right too.  There are no swift returns with anything to do with hotels in Ukraine.  That said, the price paid for this asset being so low, it is possible he will see a 7 year ROI.

However, it may also be that Mr Tigipko has some insider knowledge regarding the return of licensed gambling in Ukraine and any amended parameters regarding what premises can host casinos – and which can’t.   It may well be that the absolute nonsense proposed a year ago for the return of gambling has now had a more sensible eye cast upon it – or is about to have a more sensible eye take a look.

If so, then the Radisson in Kyiv would have additional potential – and a far swifter ROI.  As Mr Tigipko has a knack for good business and poor politics, then who would be surprised if that will ultimately prove to be the case?

More generally, does Mr Tigipko now think that the bottom has now been reached and that the small economic bounce is likely to continue in an upward trend, so now is the time to buy?

Civil Service reform – 12 months later, sabotage?

One year ago, the blog lauded the passing into statute of a new civil service law, a law that addressed two significant historical issues – “…..the Ukrainian civil service has frequently appeared as a source of disillusionment and frustration.  The reasons for this have been many, but primarily relate to two distinct causes – the first legislatively, and the second functionally (as has oft been stated here…..”.

That entry however contained a caveat – “It now falls to civil society and the diplomatic corps to defend this law from politically sabotaging “amendments”, but it also now falls of the Europeans that stated they would fund the civil service reform to do so effectively not only financially, but with no small amount of leadership and determination when it comes to making the law work as it is intended.”

So where are we at 1 year later?

This entry will not concentrate upon the usual failures associated with Ukrainian policy, be that policy good, bad, or counterproductive – the usual failures of implementation.

It is sufficient to say that implementation is at the very least problematic, and also that the processes employed to deliver results/civil service appointments have been far from transparent nor the standards consistent when carrying out the basic legislative requirements of civil service appointment.

(Let us not dare speak of the seamless functioning of an effective national nervous system – which any civil service actually is.)

Shoddy, less than transparent and inconsistent implementation and internal processes aside, that such really rather good legislation has survived 12 months without sabotage is in itself worthy of note.  Those hardened souls that have several times had to scramble to man the ramparts to beat back attempts at sabotaging this statute have managed to do so – thus far.

Those battlements will have to be robustly manned once again in 2017, for sabotage is once more at the gates.

MP Artur Gerasimov has submitted Draft Bill 4370-1 which would effectively destroy much of the right-minded text within the current statute.  His proposed amendments would critically undermine the a-political and professional civil service the current legislation provides statutory framework for.

Not good when institutional independence, structure and processes have to be robust enough to repel political shenanigans if Ukraine is to move forward with a fully functioning State nervous system.

Who then (and perhaps what) is Artur Gerasimov, that would seek to undo one of the very few laws of real quality that the Verkhonvna Rada has managed to pass (and that came into effect from 1st May 2016)?

Mr Gerasimov is a parliamentarian from the presidential party.  Indeed he is a recognised “presidential representative” within the Verkhovna Rada.  Ergo that the President is unaware of Draft Law 4370-1 being submitted by his Verkhovna Rada envoy is somewhat unlikely.  The question is whether Mr Gerasimov submits it (deniably) on behalf of The Bankova and by extension President Poroshenko – or not.

If not, then who does he submit such a toxic Draft Bill for?

Without providing an unnecessary curriculum vitae and full personal history, a brief outline of the last few years is sufficient to paint a picture of this legislative assassin.

Skimming over his various scandals mostly contained within the Donbas, it is sufficient to state that he is closely associated with Sergei Shakhov a dubious “businessman” (read organised crime) from Luhansk.  Mr Shakhov in turn is closely associated with former Prosecutor General Viktor Pshonka, part of “The Family” that formed the elite of the former Yanukovych regime.

Indeed Mr Gerasimov stood for election to the Verkhovna Rada in a single mandate seat ably supported by the shadowy team of Sergei Shakhov.  Part of that team was Igor Bezler and his organised thuggery – yes the Igor Bezler of Donbas warlord and “separatist” infamy.  That is not to imply Mr Gerasimov has any (overt) separatist tendencies.  Mr Bezler’s participation in the election campaign of Artur Gerasimov clearly occurred long before the current events within the Donbas.  Nevertheless Mr Bezler and team were employed for the purposes of intimidation and voter bribery.

The outcome however was that Mr Gerasimov came second in the single mandate vote for his constituency and therefore did not reach the Verkhovna Rada (and lobby for/defend the interests of Mr Shakhov and others in his orbit).

During that failed 2012 election campaign, Mr Gerasimov did not hide the fact that he was in the orbit of Petro Poroshenko.

A reader will not be surprised therefore that Mr Gerasimov eventually made it to the Verkhovna Rada in 2014, not by winning a single mandate seat, but via the plain sailing of proportional representation and the party list of President Poroshenko’s party.

Indeed it appears Mr Gerasimov and President Poroshenko go way back – although specifically how and why remains somewhat opaque.  Nevertheless as President Poroshenko puts loyalty ahead of ability, for him to tap Mr Gerasimov as the presidential representative within the Verkhovna Rada in May 2016, there is some form of personal bond and/or understanding.

Whatever the case, unsubstantiated rumour has it that Mr Gerasimov was selling candidacy for single mandate seats, as well as for local governance, for the presidential party during the elections having been given a party list spot and the Donetsk region to “administer” for the presidential party electioneering.  (Maxim Efimov is apparently one such successful buyer and two stories broke in local media in two locations by candidates allegedly wronged.)

Also closely associated with Mr Gerasimov is MP Oleg Nedavoy.  Mr Nedavoy is inextricably and undeniably linked to the wanted and much loathed Yuri Ivanyushchenko, a close ally of former President Viktor Yanukovych.

There is perhaps no need to continue and sufficient has been written for a read to draw their own conclusions about the character and morality of Mr Gerasimov.

From this glossary however, it is difficult to see who benefits (the most) from Mr Gerasimov’s Draft Bill 4370-1 if not The Bankova, or those most trusted by the President to (deniably) misuse the system the “right way” – Messrs Granovsky, Kononenko and Berezenko.

If this draft Bill passes through the Verkhovna Rada then toxic executive political interference will once again legitimately sully and/or mortally wound the internal workings of the civil service.  The President will then either sign it into law if the cacophony of shrieks and screams from European “friends” and Ukrainian civil society prove not to be loud and rude enough, or he can veto it and the issue can be internally spun as a false flag for external consumption and “proof” of an unwavering trudge toward European normative.

If the Europeans and Ukrainian civil society have any sense however, the maximum efforts will be made to have this Draft Bill withdrawn, or smothered by the relevant Verkhovna Rada committee before it ever gets as far as a vote.  A large diplomatic stick should be wielded now – proactively.

Still, regular readers all knew that quality legislation would sooner or later be subjected to attempts at sabotage – it always is in Ukraine.  That’s why 1 year ago the blog warned that would be the case.

Treading on the toes of Angels – Odessa machinations

The name Alexander Angert also know as Angel to use his mafia name, has appeared in this blog numerous times (a reader may use the search facility if particularly interested).  How could it not?  His links with Mayor Trukhanov and Alexander Zhukov (father of Daria, the current Mrs Roman Abramovich) among others of notoriety and the numerous joint and associated business enterprises that do well out of City Hall and Ukraine more broadly, demand that every now and again his name is mentioned.

Indeed Mr Angert was mentioned so often by Yuri Lutsenko when he was Minister of Interior in the Tymoshenko government it would be difficult to have seen him as anything other than a personal nemesis.  (A reader may ponder why he no longer mentions it now he is Prosecutor General).  Misha Saakashvili as Governor was also not adverse to throwing Mr Angert’s name about when it came to the organised criminality in Odessa.

Mr Angert no longer lives in Odessa – but he does visit when the situation is serious enough to demand he personal participation in a “negotiation”.  His last know place of abode (for many years) is London.  Indeed if asking the personal assistant of Mr Zhukov who also lives in London, messages can apparently reach Mr Angert through that channel.  (It seems that via this route Leonid Minin can be reached in Rome too).

The full extent of Mr Angert’s (business) interests is very difficult to gauge.  In some cases his control is “unofficial”.  Others there are clearly cut outs who are known associates.  There are overtly known long term business partners like Igor Uchitel.  There are even one or two business where Mr Angert’s name actually appears.  Thus quite where all the metaphorical and literal bodies are buried is unknown – but there are definitely both metaphorical and literal bodies buried.

Perhaps the best way to identify the assets controlled by Mr Angert are those in Odessa that were left alone by Viktor Yanukovych and “The Family” from 2010 to 2014.  Former President Yanukovych did indeed meet with Mr Angert in Odessa and whatever was said between them seemingly saved Mr Angert’s interests from the attentions of “The Family” – or perhaps saved “The Family” from a slighted and vengeful “Angel”.

Of the businesses that are transparently associated with Mr Angert, one is Odessagaz.  It is co-owned by Messrs Angert and Uchitel and has been for decades.  Neither oligarchs such as Firtash or Kolomoisky and not former President Yanukovych have ever made an attempt upon Odessagaz, nor interfered as they have with other regional and national gas companies.

Clearly tangling with those behind Odessagaz was not worth the blood and treasure – even for such odious, nefarious and powerful men.

Any regular reader is well aware of the frequent mention of the business appetites (by hook but mostly crook) of Igor Kononenko, President Poroshenko’s long term friend, occasional business partner and parliamentary “leg breaker”.  He is, to be blunt, as bad as they come when it comes to scams, schemes, and coercion.  His current appetites and methodology as to feeding them have hardly gone unnoticed – neither has the completely absent desire of President Poroshenko to rein them in.

It would appear however that Mr Kononenko is about to go not only where angels and oligarchs fear to tread, but indeed is about to stand on Angel’s toes.

Mr Angert, or more precisely Odessagaz, for many, many years has been trying to bring about the insolvency of Odessa CHP (thermal power plant).  Bankruptcy petitions have been made and various internal nefarious financial acts have been “encouraged” of the employees within Odessa CHP by Odessagaz (Mr Angert).  The net result was to engineer the bankruptcy of Odessa CHP beholding of large debts to Odessagaz who would then take Odessa CHP as debt settlement.

Recently however, that plan has quickly been undone via the purchasing of a significant quantity of Odessa CHP debts by Energomerezha.  This company is controlled by the brothers Surkis who are in turn puppets of Igor Kononenko.  In buying up those debts Energomerezha has therefore taken control of Odessa CHP financials that can either prevent Odessa CHP bankruptcy or assume the role of leading creditor thus undoing the plans of Odessagaz (Mr Angert).

In short when Energomerezha decides to allow Odessa CHP to go bankrupt at a time of its chosing it would be the largest creditor with a claim to taking control of the asset as settlement.  Thus that can be expected when all the ducks are lined up to insure the loser would be Odessagaz – and by extension Mr Angert.

(In the meantime as usual there is a scam whereby an agreement has been reached between Odessa CHP and Energomerezha that enables Energomerezha (read the brothers Surkis and Igor Kononenko) to clear UAH 1000 in profit for every thousand cubic meters of gas).

Quite how this situation will play out remains to be seen when even the appetites of Yanukovych, Kolomoisky and Firtash left the machinations of Angel well alone in Odessa.

Perhaps Messrs Kononenko and Angert will come to an agreement amicably.

Or perhaps there will be made an offer than cannot be refused.

The new Governor of Odessa is (not going to be a media celebrity) Maxim Stepanov

A few days ago an entry appeared listing the 31 candidates to replace Misha Saakshvili as Governor of Odessa, and within which made brief observation of the most suitable (and unsuitable) applicants.

After tests, situational tasks, and interviews a winner has emerged.

Maxim Stepanov scored the most points and is now awaiting presidential appointment.

Naturally Maxim Stepanov is not Misha Saakashvili and most readers will have never even heard of him.  The international media are unlikely to be beating down his door for an interview either.

So a few lines about Mr Stepanov.

He is 42, graduated from Donetsk State Medical University in the late 1990s and then further studied International Economics at Kyiv National Economic University, completing his studies in 2004.

He has worked in both the private and public sector.  His early public sector resume consists of roles within energy.

The last decade has been spent thus; 2003/04 – Deputy Chairman of the State Tax Authority.  2004 -08, Chairman of the National Legal Union.  2008-10 Mr Stepanov was the First Deputy Head of the Odessa Regional Administration, thereafter Viktor Yanukovych came to power and he was banished from political life and exiled in a purely civil service role as the Director of Ukraine Printing Plant – the entity charged with producing passports, driving licences et al. – where he has sat ever since.

Clearly Mr Stepanov is a man well versed in Ukrainian bureaucracy and not indifferent to the politics of Odessa having previously spent 2 years within the Odessa Regional Administration.  Thus the tedious, systematic, boring and predictable work of a governor will no doubt be well within his grasp.

It now falls to President Poroshenko to appoint him and bring him in from political exile to fill the most senior civil service role in the oblast.

* * * * *

A note to readers – You are all granted a 48 hour hiatus from the daily churn of the blog as your author will be traveling.

 

 

Local elections, the CEC, and political control by proxie – Ukraine

December witnesses local elections in several areas in Ukraine.  11th December and 18th December respectively saw voting in newly formed combined territorial communities designed to best leverage local politics (in particular budgets) within “decentralisation” – or so the theory goes.

Clearly at the time of writing the results of 18th December voting is unknown.

Results from 11th December are known.

Yulia Tymoshenko’s Batkivshchyna Party secured 123 local deputies, in part because when it comes to party outreach into local politics Batkivshchyna has always had the best party administrative set up in Ukraine.  No other party can or does come close to Batkivshchyna when it comes to the number of local and regional party offices.

A reader may ponder just how well Batkivshchyna would do if it were actually a real political party if only it could free itself from being nothing more than a political vehicle for Yulia Tymoshenko.  It could then develop some genuine policies that define what the party stands for rather than having to cope with Ms Tymoshenko’s ego, her empty populist rhetoric, and politically expedient flip-flopping.

When it comes to the number of elected deputies, second with 86 came Nash Krai, and Block Poroshenko coming third with 60 elected officials.

As regular readers will know however, Nash Krai is a technical party created by The Bankova (Presidential Administration) to split the Opposition Block (former Party of Regions) vote in October 2014.  This it successfully did and has continued to do.

That is not to imply that Nash Krai is without agency.  It certainly can and does do its own political thing and also votes in the interests of its parliamentarians (not necessarily its constituents) – ergo not always in line with the designs of the President or Government does it vote.  That however is within the parameters expected of a technical party if the facade of independence is to be projected.  When it truly counts support for The Bankova is expected.

However, Nash Krai as a technical party may prove to be problematic in the near future.  It is starting to convincingly out perform Block Poroshenko at the ballot box frequently.  Technical parties also expensive.  Not only does Block Poroshenko require financing, so does Nash Krai.  If finances are diminishing and the electorate continue to swell the Nash Krai machinery via electoral success after electoral success, then sooner or later the tail may start to wag the dog.

That tail wagging dog issue may start in the provinces, but eventually it may reach the centre.  This combined with quality local candidates preferring to run for parties other than that of the president will, by extension, make the next Verkhovna Rada elections interesting.  Even if (or when) state administrative resources are misused by the current powers that be to further their cause, how likely is it that it will be returned the largest party?

For now The Bankova’s pet project (Nash Krai) may remain loyal when required to be so – but for how long?

It is perhaps now necessary to focus upon how well it does vis a vis Block Poroshenko in every electoral vote henceforth, for losing control of the provinces because a pet project goes rouge will have an impact come larger national elections if the decentralised local budgets cannot be abused for the electioneering benefit of those at the centre of power.   Things begin to fray at the edges – and can completely unwind if care is not taken.

(Lo it is no surprise that since new legislation came into force in May 2016, new regional Governors selected by transparent “competition” have all been Block Poroshenko.)

Further, these elections occur under an illegitimate Central Election Committee.  As noted in an October entry, 12 of the 15 CEC members have long since lost their legal mandates to be part of the CEC.  That elections continue under a clearly illegitimate CEC is no surprise.  (The entry also explains why the current electoral laws are unlikely to change.)

As stated in the aforementioned link – “However, despite any and all the political rhetoric that will surround the CEC issue prior to the year end, it seems extremely unlikely that those who currently compose the current CEC will be changed or be given new mandates.

Firstly the budget and other legislative matters will simply take priority.  Thus it follows that the issue will (once again) be put on the back-burner.  Sometime in early 2017 would appear to be the most hopeful (perhaps even fanciful) time frame when it will be addressed.   Secondly a reader may question any real political desire to actually do anything about changing the current CEC composition, providing doubt that early 2017 is indeed realistic.

As is always the case in Ukraine far too much attention will be given to who is put forward for the CEC positions rather than the institution, its role, and the legislation that it is charged with implementing and overseeing – and that legislation is certainly poor.”

Since that entry was written, the Chairman of the Central Election Committee, Mikhail Ohendovsky is now subject to criminal investigation by NABU (the anti corruption agency).  Thus the “fanciful” early 2017 timeline in the above quote may now be a little more realistic.  With the Chairman subject to criminal investigation and 12 of 15 committee members with mandates that expired in June 2014 it remains to be seen just how much longer this can be willfully ignored.

Thus the usually headline avoiding local elections this December may yet again avoid the headlines – but (local governance and local democracy aside) they act as a timely reminder of increasing reliance upon The Bankova technical party Nash Krai in the provinces by the Poroshenko centre and the prospect of tail wagging dog, and also the potential time frame for dealing with the still willfully unaddressed CEC issues.