"A U.S. judge ordered a former Ukrainian prime minister on Friday to pay nearly $19.5 million to a Ukrainian businessman who said the politician demanded cash and half ownership of his firm in exchange for favored treatment.

Pavlo Lazarenko, who served as Ukraine's prime minister from 1996 to 1997, was convicted in U.S. federal court in 2004 of using his position to extort millions of dollars from his country and then launder it through California banks. The indictment in the complicated and slow-moving case came down in 2000. During the trial businessman Peter Kiritchenko [a former Soviet trade official who was a Communist Party member] testified that he gave Lazarenko tens of millions of dollars and ownership of half of a company to help expand his firm. "I agreed to give him 50 percent of the profit and 50 percent of the company. I didn't see any other way to develop the company," Kiritchenko testified in 2004. He later asked for a court order for Lazarenko to give back the money, and on Friday U.S. District Judge Martin Jenkins agreed the former prime minister should return it." [add. to story is mine](Reuters)

Because tariffs have increased but there have not been corresponding increases in the budget, 16 separate military divisions in the Ukrainian armed forces have now been cut off from electricity and gas, (no more heat or hot water) because of debts. (ukr UNIAN) Update: Minister of Defense Yekahnurov has spoken with the President regarding the situation which lead to the gas and electricity being shut off. (ukr UNIAN)

While PoR politcians are actively demonstrating against the Secret Services of Ukraine and their seizure of items from the Mayor of Kharkiv's office (Dobkin of youtube fame.) "Ukrainian Security Service (SBU) investigators brought a criminal case on the fact of embezzlement of state money by means of misuse of office, which was committed by Kharkiv City Council officials. According to the SBU press-center, the crimes were discovered during the planned inspection of the financial and economical activities of the Kharkiv Oblast Council, which was carried out by the Control-Revision Department in the Kharkiv Oblast. SBU established facts of state money embezzlement at nearly 1.5 million hryvnias [US$ 300 thousand]. On the whole, the inspection revealed in the Kharkiv City Council activities different money crimes at total of 2.4 million hryvnias [US$ 480 thousand]." (UNIAN) And banners were posted in the Parliament denouncing the SBU. Yanukovych is threatening that the Parliament will again be blockaded starting tomorrow (for an unknown period of time.) Circus of Obstructionism is back.

"Kyiv police have detained a minor suspected of murdering a 40-year-old refugee from Sierra Leone on 8 March. This was announced on Thursday during a press conference given by the Minister of Internal Affairs Yury Lutsenko.  He said that it had been ascertained that the minor belonged to a gang of skinheads who had sent him on this “initiation”." (KHPG)

"On Wednesday 12 March, a Crimean newspaper “Krymska Pravda” reported that the police had detained people they suspected of the crime. The police are clearly still reluctant to give any official statement but it would seem that they suspect 10 people living in different cities of the Crimea who had gathered to celebrate a friend’s birthday. They apparently had a lot to drink and the police are still trying to ascertain what happened next. The outfit in question is a pro-Russian “Cossack” organization “The Ataman Sotnia [military company] “Sobol” also figuring as the security firms “Canon” and “Aspect”. It is known for its seizure of a sanatorium, regular beatings of passers-by and residents at places seized and provoking fights with Crimean Tatars. The structure apparently enjoys the support of the head of the “Russian Community” of the Crimea and Deputy Oleg Rodiivilov, as well as of the Department of Internal Security of the Central Headquarters of the Crimean Ministry of Internal Affairs.  It may therefore be worth noting that of 10 suspects only two have been detained. The situation is as yet unclear. ..." (KHPG) Background to story here.

"Human rights groups say that such cases are not isolated, yet it is difficult to do anything since the penal system is secretive and legislation designed to make prisoners totally in the power of the administration.  For this reason from time to day protests flare up against penal personnel. There have been at least five such cases in the last three months." (Full story at KHPG)

"“Ukraine’s judiciary system is very far from perfect. It is the country’s most corrupt branch of power, while the courts are perhaps its most corrupt institutions. This is what any investor in Ukraine should clearly realise,” states Kreynin. ...

A regulatory body does exist which has the unique authority to rule upon a judge’s alleged violation, to withdraw a judge, and to exercise disciplinary procedures against the judges of the Supreme Court and the High Specialised Courts. The body is the High Council of Justice. The High Council of Justice consists of former and current judges. However, it remains idle because the Supreme Court has not nominated its representatives. “Those judges will never rule against themselves, never exercise disciplinary procedures against themselves – they are all friends. The High Council’s idleness lets the judges feel invulnerable,” argues Kreynin. ... “Don’t expect the judges to follow the law. Considering the frequent elections and the ongoing parliament crises, nobody cares about what judges are doing – and they are working on a ‘commercial basis’. Where a monopoly exists, corruption exists, too. The world’s court systems have always been built on a doctrine, logic, and legislation. In Ukraine, the judges interpret laws as the paying client desires instead of strictly following them. Doctrine does not work here,” he adds. “We, the lawyers, are in shock - our knowledge means nothing now,” complains Lukovych, who has worked as a lawyer since 1993. ... As Ukraine contemplates EU integration, NATO membership, WTO accession and an improving international business investment climate, analysts both inside the country and internationally agree that the first priority should be to clean up the country’s notoriously corrupt court system. However, there are little evidence as yet that the government possesses the necessary political will to force through effective reforms." (bold is mine) (Business Ukraine article)

"In light of the fundamental and systematic economic reforms needed in Ukraine, and the ongoing sharp increase in foreign and domestic investment, it is imperative to ensure that Ukraine’s legal system is prepared to serve as a modern pillar for the economy and society. The current legal foundation is inadequate and to a large extent, sabotages the development of a market economy in Ukraine.  It is archaic, anarchic, and at times absurd. The market responds to this situation in a healthy way by avoiding the legal and regulatory regime and corrupt judiciary, while ignoring the more absurd laws and concentrating on developing the best modern business practices. Unfortunately, this creates an ever widening gap between what is written in law, what is understood by those who administer the law (government authorities, regulators, judges), and the business community.  At first, this may seem like a reasonable truce, as it does not interfere with the steady development of Ukraine’s markets. But this solution is not harmless – it encourages non-compliance, greatly increases the risks of doing business, provokes artificial commercial disputes, and fosters such ugly trends as corruption, lack of enforcement, corporate raiders, and lack of corporate governance. The new government’s top priority, therefore, should be to act, swiftly and decisively. Ukraine’s legal system, and consequently the business climate, could be immediately and dramatically improved by simply cancelling the most archaic and damaging legislation, using the so-called “guillotine” principle, which worked successfully in other countries that successfully undertook modernization reforms. However, some of the problems are of course fundamental and cannot be solved in a vacuum and require significant unified political will along with rational systematic effort. The fundamental problems include overall outdated, contradictory, ambiguous and low-quality laws, statutes and regulations; an excessive, inefficient, and poorly qualified bureaucracy; and a corrupt and underdeveloped judicial system.  These problems cannot be solved overnight and will require generations of work. ... The existing commercial code is anti-market and the civil code is flawed, and each is in fundamental conflict with the other. " (bold is mine)(UNIAN op ed)

In the news besides, the potential gas shut off (or partial shut off) to Ukraine by Gazprom, PoR is unwilling at this time end its blockade of Parliament even with a compromise regarding NATO and referendum offered by the Speaker, President Yushchenko's visit to Moscow tomorrow, Ukraine being behind on Euro 2012, Ukrainian schools closed due to the high number of children who have influenza ... The big one for me is pictures of Rudkovsky sitting behind bars.

Former Minister of Transport in PM Yanukovych's government and member of the Socialist Party, Mykola Rudkovsky has been detained by the Secret Services of Ukraine, leading to his arrest. He is known to scandals such as his jaunt to Paris with Miss Ukraine and charges of misspent state funds. (And from Ukrainiana site regarding his involvement in hosting exiled Turkmen leaders.)

"The court decided to choose arrest as preventive punishment since Rudkovskyi did not cooperate with the investigation, violated the written undertaking not to leave town in his living not at the place of registration." (Ukrainian News)

Since being arrested by SBU Rudkovsky has been plagued by illness even being in need of a wheelchair when brought in before the judge. Whether the illness is real of feigned, this formerly robust politician faces charges of not cooperating with authorities regarding investigation into his alleged misdeeds as Minister of Transport and surprising can actually say at this time, "Bandits go to jail." Let's see if others will join him. (Including current Cabinet ministers?)

Aside: Interview in english with Oleh Dubyna CEO of NaftoHaz. While "Board chairman of Ukrhaz-Energo joint venture Ihor Voronin says NJSC Naftohaz Ukrainy cannot purchase gas from Central Asia on direct contracts, bypassing the mediator RosUkrEnergo." (Ukrainian News)

Explosion at coal mine in Donetsk region. Cause currently unknown. Six prisoners injured with four listed in grave condition in the hospital with serious injuries. Those injuried were prisoners of correctional facilities and not regular mine workers.

What were they doing working in a coal mine - was this part of their sentence? is this even legal? isn't this a vioaltion of human rights?

"Secretive Ukrainian ex-pat Serhiy Bondarenko is leading the development of a five-star resort in a Vinnytsia town.  The $269 million project is backed by European investors.  Both Boderenko and regional officials confirm the funding but neither would identify the investors. ... Ukrainian media suggested that Bondarenko was the investor backing the project. Bondarenko stressed he is not an investor nor wealthy enough to back such a project." (Kyiv Post)

“The Ukrainian economy has experienced strong growth since 2000,” reported the Kyiv offices of ING, a leading Dutch bank. “However, we expect a mild slowdown this year caused by the expected general deceleration in developed markets.” The bank lending boom, small business development, money from Ukrainians working abroad and salary growth will fuel increased consumption. “We expect household consumption to remain the major GDP growth driver during 2008 and 2009,” said Vitaliy Vavryshchuk, Dragon Capital analyst. Rising salaries and social payments will boost consumer demand in 2008, stimulating rapid growth of consumer-oriented sectors, such as food, services, and retail, said Anna Cherednichenko, an International Centre for Policy Studies (ICPS) economist. Foreign direct investment (FDI) will continue to grow in 2008. “Rapid economic growth will continue to foster demand for Ukrainian assets,” ICPS reported, adding “FDI will grow from $8 billion in 2007 to $8.5 billion in 2008.” ... High inflation will be the main economic risk in 2008, according to ICPS. Energy imports will not be the only factor driving prices higher." (Kyiv Post)

"Since the Orange Revolution of 2004, Ukraine’s democratic path seems ever more ineluctable. Yet these gains are held back by an economy that stifles small- and medium-sized businesses, imposes high taxes, and fosters rampant corruption. As an article in this week’s Post points out, Ukraine’s strength in formal freedoms - like freedom of association or the right to demand a change in government without fear of persecution - was overshadowed by a miserable performance in economic freedom. Ukraine’s perch among the world’s 90 “free countries” for the second straight year is worthy of applause, yet its economic weakness is lamentable because there’s a simple, long-delayed solution that could kick-start improvement: adoption of a new, liberalized tax code. If anyone has an inherent interest in such a matter, it’s Yulia Tymoshenko. Reforming the tax code would provide that needed breakthrough to dash the anti-business accusations dogging her since the re-privatization campaign. A revitalized tax code with corporate tax incentives and benefits – halving the burdensome payroll tax for starters – will attract much needed budget revenue and encourage companies to emerge from Ukraine’s vast shadow economy. Such reform is accomplishable in one year and it will leave as much of an impression on investors and voters as Tymoshenko’s now-famous campaign to return lost bank deposits. Tymoshenko’s iron will, when pointed in the right direction, can move mountains. It would be a winning recipe for her, Ukraine’s pro-Western coalition, and the country as a whole, to push tax reform through the halls of parliament this year. Given the Tymoshenko-led coalition has a thin majority in parliament, further delays are inexcusable." (Kyiv Post)

"Nearly $195 million was invested into Ukraine by the French during the first nine months of 2007, according to State Statistics Committee of Ukraine figures, ranking the nation eighth among foreign investors. Meanwhile, $742.5 million was invested in 2006, eight times more than the prior year, largely the result of the post-Orange appreciation of business assets. Overall, however, French FDI into Ukraine accounts for a small share of the total, some 4 percent. Activity is expected to remain high, with French companies taking a lead role in the retail and construction industries in particular. Among the biggest French companies in Ukraine are two banks which, along with other European banks, moved quickly to secure a portion of Ukraine’s promising banking sector through acquisitions. France’s BNP Paribas ... Calyon Bank Ukraine, a subsidiary of the Credit Agricole Group" (Kyiv Post)

"Philippe Pegorier is the economic and trade adviser with the Embassy of France in Kyiv. In his interview with the Post, Pregorier highlighted agriculture, transportation and infrastructure as the most attractive business sectors in Ukraine. He added that the presence of French companies on the Ukrainian market will depend on future economic growth and the stabilization of the political and economic environment." (Kyiv Post)

"Political freedom and civil liberties in Ukraine remained strong for the second straight year in 2007, while personal economic freedom was “mostly unfree” for the fifth straight year, according to surveys released this month.“This is an accurate depiction of the current situation,” said Ilko Kucheriv, director of the Democratic Initiatives  think tank. “Ukrainians for the most part feel they can speak and write without fear of persecution, even to demand political change, which we have witnessed in the passed two years.” Political rights and civil liberties, the benchmark indicators employed by the American human rights non-governmental organization (NGO) Freedom House, improved in Ukraine, according to its 2008 Freedom in the World survey. ... Ukraine’s economy was 51.1 percent free in 2007, a 0.6 percent decline from 2006, according to the Heritage Foundation’s 2008 Index of Economic Freedom, which measures “that part of freedom that is concerned with the material autonomy of the individual in relation to the state and other organized groups.” An individual is economically free who can fully control labor and property, in the view of the Heritage Foundation, a US neoconservative research institute. Ukraine is severely deficient in investment freedom, property rights protection, and freedom from corruption, ranking 133rd out of 157 countries and almost qualifying for the repressed category.In the European region, Ukraine ranked 39th out of 41. “ Widespread corruption not only damages relations between the public and the state, but also negatively influences companies’ budget policies, infrastructure, as well as many other society factors,” said Juhani Grossman, chief of party for the Promoting Active Citizen Engagement in Combating Corruption in Ukraine project, funded by USAID and the Millennium Challenge Corporation. Corruption has become a two-way street in Ukraine as well, he said. A fifth of Ukrainians face government extortion, while a tenth voluntarily offer bribes as well.
The Promoting Active Citizen Engagement project’s  studies show Ukraine’s corruption level is comparable with other Eastern European countries, Grossman said, the principal difference being the level of the public’s trust towards government is much lower.“ State officials aren’t perceived to be actively trying to improve or combat corruption,” he said. The report isn’t a final authority, said Volodymyr Yarovsky of Ukraine’s Helsinki Human Rights Union. For example, Poland has police and courts that are truly independent, while that’s only formally the case with Ukraine.“ They have real freedom of association,” he said. “We do only formally, and the legislation for this is outdated.”

Assessing the state of freedom in Ukraine, observers said a key problem plaguing Ukrainians is they still have no real power to conduct government oversight.

 “Although we have political freedom, our low level of holding the government accountable to us, or elected parties to their campaign promises, remains a problem,” Mishchenko said." (Kyiv Post)

"The Cabinet of Ministers has granted the State Tax Administration and the State Customs Service permission to ignore illegal court decisions that grant exemptions on payment of taxes. ... «In order to protect our Customs, Tax Administration, and other [bodies] that are obliged to collect taxes, we have adopted a special resolution that grants the freedom and the right on the basis of the Constitution not to implement criminal court decisions that are knowingly issued,» Tymoshenko said. Tymoshenko read to journalists several rulings issued by courts in Kharkiv and Kremenchuk that exempted businesspeople from paying taxes. Tymoshenko stressed that the existence of criminal groups among representatives of the government, courts, and enterprises was resulting in evasion of taxes and a shortfall in budget revenues necessary for financing increases in pensions and wages. Tymoshenko also said that the Cabinet of Ministers has directed the Justice Ministry to document illegal court decisions with the aim of asking the parliament to remove the judges that issued the illegal decisions and asking the Prosecutor-General’s Office to file criminal cases against them.

According to Tymoshenko, Deputy Prosecutor-General Tetiana Korniakova, who was present at the Cabinet of Ministers meeting, supported the idea of launching criminal cases against judges that issue illegal decisions. Moreover, Tymoshenko said that she intended to ask the Supreme Court’s chief justice to document illegal court decisions and draw the necessary conclusions." (Ukrainian News)

"President Viktor Yuschenko is insisting on abolition of parliamentary deputies’ immunity from prosecution before the end of the parliament’s first session. ...  «A draft law on abolition of deputies’ immunity has been sent to the parliament at my initiative. I am insisting that it should be approved during the current session,» Yuschenko said. He stressed the need to enforce order within the government and that everyone should be equal before the law." (Ukrainian News) 

"According to a statement released today on the Ministry of Justice’s official website, the Cabinet of Ministers is planning to remove the stamps “Not to be printed” and “Not to be published” from Cabinet of Ministers Resolutions and Instructions issued between 1991 and 2005 since these stamps are not allowed for by Ukrainian legislation. The Minister of Justice Mykola Onishchuk informs that the relevant Instruction on revoking these stamps has already gone through checking procedure in the Ministry. He adds that the Instruction is aimed at ensuring citizens’ rights of access to information, as guaranteed by the Constitution and the European Convention on Human Rights. 

The statement goes on to say that the Cabinet of Ministers plans to ensure free access to legislative acts which were not on general access in previous years.

The Minister states that restrictions in access to more than one thousand government acts issued between 1991 and 2005 will be removed.

Approximately 300 others will have the above mentioned stamps removed, however will still not be available to public scrutiny with another stamp “For official use only” being used instead.  It is stated that almost all these acts deal with defence and security or contain issues relating to economic competition." (bold is mine, from KHPG)

Kuzio has authored an article for EDM which provides a summation of the situation regarding the General Prosecutor of Ukraine. "Tymoshenko and Yushchenko Clash Over Battling Corruption".

(I have not written about the situation regarding Medvedko but yes, it was confirmed that the operation for which he went into the hospital is considered 'cosmetic' and not life-threatening. Without personnel changes there can be little hope of reforming the judiciary and rooting out corruption.)

Photo from UNIAN - caption is that girl collects money from fountain by the Sports Palace which tonight will present the Holiday concert which is being financially supported by President Yushchenko. Daytime temp. of Kyiv is close to freezing.

"Novynar, the Ukrainian-language sister publication of the Kyiv Post, named the top-15 Ukrainian philanthropists of 2007 in its first ever Philanthropist ratings published on Dec. 17. Ukrainian billionaire Viktor Pinchuk, son-in-law to former president Leonid Kuchma, was rated as the most generous philanthropist of the year, giving a total of Hr 103.5 million ($20.7 million) to culture and health services charities.The list of the top 15 philanthropists included well-known business and entertainment figures, as well as politicians, who gave money for a range of charitable causes, including education, assistance to children, cultural preservation, health services and AIDS prevention. Others ranked in the top five included Ukraine’s richest man, Rinat Akhmetov (2), who gave Hr 78.8 million ($15.76 million) in 2007, industrialist Serhiy Taruta (3) with Hr 30 million ($6 million), lawmaker and businessman Oleksandr Feldman (4), with Hr 11 million ($2.2 million) and Kuchma’s daughter Olena Franchuk (5), with Hr 7.9 million ($1.58 million). Franchuk is married to Pinchuk." (Kyiv Post article entitled "Businesses Embrace Charity Despite Tax Hurdles")

This is interesting because whereas there is a movement in Western countries to rethink the politics of Caritas, generosity, welfare, etc. it is being lauded in Ukraine. But if it is based on corruption, connections, monopolism or theft is it charity? How much comes from the heart or is it an attempt to engage in a minute redistribution of wealth so that is protected from seizure by legal structures or to prevent tax reform?

"Senior Ukrainian prosecutor poisioned by mercury vapor" (UNIAN) "Three months ago, Holomsha began suffering from bad headaches and a metallic taste in his mouth. An examination of his office revealed a mercury vapor concentration level four times above the norm. Medical tests later confirmed that Holomsha had been poisoned. ... Mykola Holomsha, 45, has undergone intensive therapy since the poisoning, and is now back at work, continuing to head investigations into the murder of Ukrainian journalist Georgy Gongadze and the alleged poisoning of President Viktor Yushchenko in 2004."

City town square sold - surprise to city leaders. Dnipropetrovsk city town square, six hectares was sold and resold but it seems that the documentation was falsified. No one knows who currently 'owns' the real estate because of the transfers and it was only discovered when the city tried to renovate the town square. Re-establishing ownership back to the city will be difficult. (video and report in ukr)

Building in Kyiv was taken over by 'unknown' individuals who showed up after working hours dressed as though police in black and asked all workers still in the building to vacate. Any locked doors were broken and locks were changed throughout. The building housed the Dinpopetrovsk oblast regional administration. The former chairman of RDA Alexander Sotnikov was present with those who took over the premises, who had been releaved of office by Pres. decree on Dec. 13th. The police were called out to the location as well as emergency medical services because some people had sustained injuries incurred during the takeover.

In Kharkiv oblast George Stashenko a soldier died from having sustained a death-blow to the thorax. There was a dispute between two of the servicemen, a third intervened and hit private Stashenko and the blow(or blows) proved to be fatal.

In Odessa, three antique cannons which were relics from the Russian-Turkish War have disappeared. They were located inside a city park.

Donetsk deputies is stil fighting the renaming of monuments, city streets, districts, etc. which was a Presidential national decree to strip away honoring the names of those who participated and organized the 1932-33 Holodomor famine. Last excuse was 'would like to but no money in the budget' to now government officials arguing that Holodomor is a twisting of the truth and is being used for political opportunism. This move is supported by Communist Party members. (I am waiting for the 'astrological defense" - sorry, can't do it - the stars and planets are not in the proper alignment.)

Senior citizens (pensioners) getting scammed out of money and property (apartments) by con-artists because of loopholes in the laws. In some cases even though the senior citizens won in court, the judges's decisions are not being executed.

Sidenote: Huge need for judicial reform in Ukraine. As was pointed out by a member of Pres. Secretariat, "He also said that about 2 million criminal cases have not been investigated." (Ukranews) And then there is the issue of corrupt judges, decisions that are never enacted, loopholes in the legal code, so on and so on.

Chernoco smiling away while at an opening of a new bridge in Kyiv (video and report in ukr). He is initiating changes to the legislation to take away from the President the right to appoint and dismiss city officials of local districts. It was reported that Pres. Yushchenko signed orders which dismissed from office 4 of Chernoco's most vocal critics (looking for link to story.) While at the same time evidence relating to the bribery of voters in the past elections is being turned over to the Prosecutor's office and there is word that the pre-term election of Kyiv Mayor is to go ahead.

I hemmed and I hawed and was involved in other things but matters not ... I am saved. The english language translation was done on some of the articles from this past Saturday's Mirror Weekly. So good news, homework for everyone !  

In order from global, to national, to local ... 

Regional Security and the Tyranny of Deadlines by James Sherr                       In just a few paragraphs covers Russia, Kosovo, Georgia, NATO and Ukraine... Brevity coupled with expert knowledge and awesome writing.

The Victory's Shadow by Yulia Mostova                                                           A view of the OU-PSD, Yushchenko and the Presidential Secretariat. Who could argue with the following, "... the process of forming today’s coalition – the President has chosen the most damaging way for his image. First of all, it ended with undesired results. Second, his rating have fallen. Third, he increased the conflict inside the bloc and ruined his political force’s authority."

Those Who Are Happy When Deceived by Alexei Mustafin                                Write up of the viewpoint from the white and blues of the coalition, individual politicians, and even a motto “Winter is yours but spring will be ours”. [Of course, in my mind I hear the chorus, 'Springtime for Hitler and Germany' - from the movie and play "The Producers" wherein two characters also believed in swindling sweet, little old ladies.]

Mayors Ready to Revolt by Inna Vedernikova                                                 Fight between centralized system and local need for reforms and the needs of the community, especially as in regards to land sale, use and distribution. Very illuminating interviews. (Especially when one remembers that Oleh Sheremet, a lawyer and member of the Lytvyn Bloc was shot and killed when he arrived home, the night this paper was going to press. Inside the house wherein were his wife and daughter, who saw him step out of his car before the shots were heard. It is believed that his death was related to his activities in trying to reverse crooked land deals and his championship of the rights of villages. He was active in the Boryspil area (prime investment real estate as it is located around the airport and near to Kyiv.)