Published: 30 November 2018

 As autumn comes closer, more talks emerge about a probable conclusion of an Association Agreement between the European Union and Ukraine that can come about in as little as a few months in Vilnius. In anticipation of this event, our correspondent interviewed an expert in the politics of Ukraine N., doctor of historical sciences, about the state of affairs in Ukraine and its future.   Being an expert in Ukrainian politics, could you answer why Ukraine marks time for many years and cannot decide which entity to join – the European Union or the Customs Union? By the way, Baltic countries needed very little time for self-determination.” Unfortunately (or luckily), the world’s way is that clerisy cannot compete with criminal groups or big business guys. The latter will dominate in every instance as they have weapons and want to commit crimes; they are mastered in grim business and they reach after getting access to the national budget and material goods resulted from being in power. Everyone in the world would like to have money without working. To steal businessmen’s money on a regular basis through the medium of tax authorities and police…  What can be more alluring than this dream?   Does this only refer to the current government considered as a bad one by the global community? Does Die Zeit have a point when calling for overthrowing the existing dictatorship in Ukraine?   Unfortunately, this tendency is pertinent to both ruling power and the opposition in Ukraine.   Reforms suggested by the European Union are focused on eliminating richness as a result of coming to power. It is required to make sure the clerisy comes to power in this country. It is the only way to create miracle that took place, for example, in Romania. At that time, the national elite practically drew its country, where “people still ride in carts in the cities”, into the European Union.   No matter how educated and developed the Ukrainian nation is, it will reach nothing in the world of international competition and cooperation without a normal elite (photo by A. Franskoy).   However, how would representatives of unarmed Ukrainian intellectuals, modest writers, research officers and university lecturers (economists, lawyers, political experts) come to power?   The revolution of elite is a key factor that will play a crucial part in the European and even Customs and Union Integration. Without it, our country will decay, and the population will work for a “company of one national-wide owner”. Press freedom, absence of selective justice, combating corruption - all these demands by the EU are needed to make sure representatives of the real elite come to power in Ukraine.   Nevertheless, it is a big issue how to move the current elite away from the state budget and easy money within power structures. Perhaps, the European Union may “squeeze out” a solution. As soon as corruption is overcome, it will be possible to beat injustice in courts, and criminal groups will leave the power. Since they cannot make money, there will be no sense for them to stay and “blow cover” yet again.  

Read more: Doctor Oleg Kozerod: “Press freedom, no selective justice, and combating corrupt practices. All...

Published: 30 November 2018

"Although Yeltsin was quite a controversial person, yet in terms of decency he obviously surpassed Putin" – believes President of MAIR industrial group – V.N. Makushin, who had to flee Russia from coercive racket, was put on international wanted list and was forced to surrender his business to the representatives of Russian kleptocracy.

Read more: V. Makushin: 'Although Yeltsin was quite a controversial person, yet in terms of decency he...

Published: 30 November 2018

Specialized Oil-Loading Seaport Vitino captured by Russian security officials through hostage taking keeps on being a subject of carve-up and litigations by Russian and international companies.

The fate of Russian Specialized Oil-Loading Seaport Vitino located on the White Sea coast has been one of the most discussed Russia related topics in Great Britain for past months.

This case is accompanied with a chain of scandals and legal proceedings connected with a struggle for the port at the courts in Cyprus, Great Britain and Russia.

Co-owner of Vitino Seaport citizen of Kazakhstan Mr. Abliazov, known in Europe as enemy to the current government of Kazakhstan, struggles at the courts of European jurisdiction for one of Arctic basin’s largest terminals against his Russian ex-partners Maxim Pukhlikov and Sergey Sheklanov.

In February 2012, London’s Commercial Court adopted a decision to take into custody for the period of 22 months co-owner of the port, citizen of Kazakhstan Mr. Abliazov for the expressed contempt of court – for having refused to disclose his assets. Mister Abliazov appealed against the decision at the Supreme Court of London. Experts believe that the Commercial Court’s resolution may weaken the standing of Mr. Abliazov in his efforts for the Specialized Oil-Loading Seaport Vitino disputed at European courts.

However, the story of Vitino Seaport lies mush deeper. It dates back to the far year of 1993 that Russian businessman Zurab Musinyan made a bold venture to build Vitino Seaport in harsh environmental conditions of the north.

Specialized Oil-Loading Seaport Vitino successfully cooperated with Russian oil-producing companies, loaded and shipped 50-80-metric-ton tankers to Europe and North America. The port reached the peak of prosperity in 2005-2006. The port handled 4.76 million tons of oil products in 2006; the staff of over 1000 people received salaries in time, the trading volume reached USD 80 million a year, and capitalization – USD 400 mln. Ninety-seven percent of the port stocks was held by Zurab Musinyan.

That very time a story occurred, which laid the foundation of further events to become a subject of extended disputed and litigations at the courts in many countries.

The story began in Moscow. On a December day in 2005, Mister Musinian, the port owner, was approached on the street by officials of the Murmansk Regional Federal Security Service (FSB) of Russia demanding making his property over to Alexander Mitrofanov (65 percent) and Dmitry Sorokin (32 percent), within a month. Upon his refusing to do so, FSB would initiate a criminal case on incitement to terrorism.

In April 2006, FSB searched Musinyan company headquarters. On 22 May 2006, Mister Musinyan was summoned for questioning in the city of Murmansk. An investigator at the Investigation Department of the Murmansk Regional Federal Security Service of Russia used to urge Mister Musinyan during the interrogation that he had to sign a document for making his company shares over, and all problems would be settled. Otherwise, Musinyan would have big problems, be charged with terrorism and imprisoned.

Mister Musinyan refused the investigator’s proposal to part with his business. On 22 May at 06:00 pm, he was seized and put into a one-man cell. At 08:00 pm, the official of Murmansk Regional FSB who had threatened harm entered the cell, handcuffed Musinyan to a prison bed, put a plastic bag on his head and demanded selling his company at a nominal price.

On 23 May, at 10:00 am, Mr. Musinyan was transported from the prison to the Head of the Investigation Department of the Murmansk Regional Federal Security Service of Russia, and the latter informed Musinyan that the prisoner’s daughter had been hijacked from a kindergarten, and allowed talking with her on the phone.

The Head of the Investigation Department of the Murmansk Regional Federal Security Service of Russia assured that upon Musinyan’s signing a sale agreement for 97 percent of shares of Specialized Seaport Vitino, at a nominal price of 97,000 rubles (appr. $3,000), whereas its market price was $400 mln, and the record of interrogation, Musinyan and his daughter would be released and his criminal case would be closed in near future.

Read more: Zurab Musinyan: “Let my case lie at door of Russian special services combating international...

Published: 30 January 2011

     Chairman of the Supervisory Board of Finansovyi Soyuz Bank (FSBank) considers that bringing up the issue of the national banking system with the international community is a hasty decision made by the Association of Ukrainian Banks. This was stated by Dmitry Fomenko, Chairman of the FSBank Supervisory Board, at a public meeting in the Center for European Democracy Studies. “Such steps taken by Ukrainian bankers contravene the conventional ethics of relationship between a banking system and government and could give rise to mistrust of international community in all Ukrainian financial and banking system. It’s hard to imagine that, for example, Swiss bankers could ever complain to international organizations about their national government. Who will take such banks and all our financial system seriously outside Ukraine after that?” the banker stressed in his speech.

      Mr. Fomenko thinks that the bankers’ having submitted a complaint about the draft law #0884 on bringing amendments to banking laws to the European Commissioner for Enlargement and European Neighbourhood Policy speaks for their sense of powerlessness and disbelief to strike a compromise, and that their address is unlikely to solve the problem. “Instead of seeking opportunities to participate in discussion of this law in Ukraine, the group of bankers tries to complain and find a kind patron abroad. At present, financial sector reforms are held globally. Experts consider them to be the deepest reforms ever put in place for several past decades. Increase of the charter capital can become one of the ways to consolidate the bank capital and it will enable to stabilize the situation in the banking system. The bank capitalization growth can also improve the protection of depositors and customers of lending financial institutions. However, bankers are aware of the correlation between the regulatory capital and a real reliability of a bank by the example of the collapse of large banks, as the regulatory capital is often created with so called instrumental methods,” Dmitry Fomenko underlined.

      “It’s worth mentioning that it’s not a remedy, because some available instrumental techniques and methods allow for creating financial fakes that give a deceptive impression of a real bank capitalization, which may cause directly contrary results. I think, the results will not take long to appear, taking into account the legerity acquired by our leading bankers in recent years. They can also use the artificial augmentation of capital by issuing loans to investors worth the amount of the bank capital.  So, a transparent dialogue between government and the banking community is required to reach a real reliability. Besides, a financial situation in Ukraine is intricate.  Unfortunately, Ukraine cannot enjoy the backing of powerful EC countries as, for example, Greece can, and we’ll have to tackle problems alone if something serious occurs.  The government has proved it can meet halfway, as it was with businessmen protests against the tax reform. The same situation can happen in the bankers’ case if banks do want to begin a dialogue,” the banker said.   

Read more: Dmitry Fomenko: Different-thinking team for real reforms needed