Voices from Russia

Thursday, 26 June 2014

Kiev Provokes War to Try to Avoid Revolution

00 Winter 2015. Those Moskali aren't Freezing! 26.06.14

Winter 2015: Those Moskali aren’t Freezing!

Aleksandr Shabunov


Literally: “They’re not freezing, those Moskali!”


In recent days, despite its peace “announcement”, official Kiev gradually moved from violence against civilians and bombardments of Donbass cities to direct provocations on the Russian border and attacks on the Russian Federation’s diplomatic missions. In international affairs, such actions constitute provocation to war. Yet, Kiev doesn’t have the slightest chance of winning a military conflict with Russia. What pushes P A Poroshenko to such adventuring?

Whilst the Kiev junta wages war against its own people in the Southeast, protests swell across the country due to a catastrophic drop in living standards. From 1 July, all utility services will see an increase in rates. In particular, the price of gas for consumers will rise 55-70 percent, hot water and heating will rise 40 percent, electricity will rise 10-40 percent depending on the volume of usage, and central water and sewerage will rise 78-96 percent. The greatest increases will come in Kiev. On 1 July, hot water will rise by nearly 70 percent and for central heating will go up almost 60 percent.  This is only the first stage of price increases for utilities, which will gradually go up until 2017. According to O N Kaletnik, the First Deputy Head of the Verkhovnaya Rada Budget Committee, in 2015 utility rates will go up 40 percent, and 20 percent per year in 2016 and 2017. However, these figures may be bogus, because as of 1 May 2014, consumers paid, for example, only 24 percent of the real cost of electricity.

At the same time, the IMF requires an increase in residential utility rates “to economic levels”, that is, the total elimination of state subsidies for public utilities. If the total debt of Kiev’s population, the Ukraine’s richest city, is now close to 80 million USD (2.7 billion Roubles. 85.8 million CAD. 85.1 million AUD. 58.7 million Euros. 47.1 million UK Pounds), the new rates would be completely impossible for Ukrainians to pay. This is a real disaster as it threatens all life support systems. You can estimate its size by the fact that, even now, before the rate increase, “Kievenergo” shut off hot water in 754 apartment buildings due to arrears in bills, and it started to switch off lighting in the Pechersky, Goloseyevsky, and Shevchenko Raions of the city.

Meanwhile, winter approaches. Because of threatened termination of Russian gas deliveries, the junta introduced emergency energy policies, which may in fact lead to frozen apartment buildings and hospitals. However, that’s not all. Due to the grivnya’s depreciation and the domestic agricultural crisis, some products have more than doubled in price, and drugs are up by 60-70 percent. Minister of Finance A V Shlapak officially admits that these figures are true. In fact, consumers are seeing some imported drugs rise in price by 200-300 percent. Along with this, “Prime Minister” A P Yatsenyuk‘s  “government” froze the minimum wage and cut cost-of-living indexing. The Razumkov Research Centre concluded, “The freeze in wage increases, pensions, and social benefits due to the fact that the Ukrainian economy has crashed. We observed a decline in industry and in other areas … In such a situation, neither the Ukrainian economy nor the state budget has the resources to raise salaries to a level to support minimal living standards. This year, we see a decline in real income and real wages, which creates additional social problems in the country”.

Moreover, the junta doesn’t deny persistent rumours about the removal of all salary increments to government employees and civil servants. Although the corresponding bill appears to have dropped off the Rada’s agenda, in some areas, state employees have already lost them under the law on surcharges. For example, teachers and librarians in Novo Kakhovka (Kherson Oblast) lost their allowances, which were 50 percent of their base salary. Teachers in Berdyansk (Zaporozhe Oblast) avoided wage cuts only by threatening a strike. On 1 March 2014, civil servants lost their allowances for long service and exemplary performance of duty, which were about 40 percent of their base salary. If the removal of allowances does occur, the salary of librarians, for example, would be slightly more than 1,000 grivnya (2,840 Roubles. 85 USD. 90.50 CAD. 89.50 AUD. 62 Euros. 50 UK Pounds), doctors, 1,200 grivnya (3,400 Roubles. 101 USD. 108 CAD. 107.50 AUD. 74 Euros. 60 UK Pounds), state municipal officials, 1,500 grivnya (4,260 Roubles. 126 USD. 135.50 CAD. 134.50 AUD. 93 Euros. 75 UK Pounds). Compare this to the coming average cost for utilities of 1,100 grivnya (3,120 Roubles. 92.50 USD. 99.50 CAD. 98.50 AUD. 68 Euros. 55 UK Pounds) per month.

In the manufacturing sector, the situation isn’t much better. The Accounting Department of Dneprospetsstal in Zaporozhe said, “They told us that from 1 June, the work week would go to a four-day schedule, that is, the average worker would lose 1,000 grivnya in wages”. Workers at Azovmash in Mariupol lost their holiday pay. According to Rada People’s Deputy Yuri Shapoval, enterprises in Kremenchug almost completely stopped production because they lost Russian customers, which were the main consumers of Kremenchug products. Tourism, real estate, and the wholesale market trade are at a standstill. People simply don’t have any means to survive. According to the poll run by the website HeadHunter, 54 percent of men and 58 percent of women regularly can’t “last to payday”. In addition, another 20 percent feels financial difficulties at least once every 3 months. Only 20 percent of men and 11 percent of women say admit that they don’t have any problems from payday to payday.

Yatsenyuk’s “government” doesn’t deny that they carried out this “price genocide” in the Ukraine due to IMF demands and that it exactly mirrors “austerity” measures in the EU. By the way, the Ukraine plans to sign a so-called “Association Agreement” with the EU on 27 June {it won’t give them real membership… they get to be Germany’s nigger slaves at wetback peon wages, that’s all: editor}. Yatsenyuk said in the Rada that the Ukraine would need to reduce social benefits and public sector wages, as did Greece and Italy. How it ended in Greece and Italy, I don’t think that it’s necessary to tell you.

Depriving citizens of their last piece of bread, the junta has no difficulty in finding funds for its war against its own people. Experts estimate that the junta spends 3 million USD (102 million Roubles. 3.22 million CAD. 3.2 million AUD. 2.2 million Euros. 1.8 million UK Pounds) per day on its so-called “anti-terrorist operation”. Increasing the intensity of hostilities will just up this amount. You must factor in the fact that men slotted into the armed forces and into the oligarch’s private armies aren’t in the productive economy, which is clearly not conducive to helping the Ukraine’s budget woes. In addition, massive casualties in the junta forces and the terrible living conditions in the service have already caused mass protests in the western Ukraine, the region most loyal to the Kiev junta. Mothers and wives of junta soldiers blocked international motorways in Rovno, Ternopol, Lvov, and Khmelnitsky Oblasts. There’s a high probability that the angry women will march on Kiev shortly, without waiting for their relatives to come home from the army.

We can’t but welcome the beginning of negotiations for a peaceful settlement, which took place in Donetsk under the auspices of the Russian Federation and the OSCE. However, we can’t overlook the fact that time is working against Kiev junta, as the Ukraine faces an imminent economic catastrophe. Therefore, a war with Russia is vital for the junta, allowing it to throw the blame for the complete failure of the current government on “Muscovite aggression”. This explains the border provocations and false ceasefire announcements, when the junta only increases the intensity of the fighting. However, Kiev has a dilemma… its tactic of provoking a war will show its true position on the Donetsk talks.

26 June 2014

Olga Shchedrova

TsIA Novorossiya



This explains much. VVP is waiting for the “fruit to ripen on the tree”. The LNR and DNR leadership was at the Centre last week. No doubt, Vova told them of his plans (and how they should react to them for public consumption). There be some accomplished “belly-talkers” at the Centre and in Novorossiya. “Belly-talk?” Oh, that’s a Japanese concept (haragei), which means that one makes a convincing implication one way, but that one actually intends to do the exact opposite (it also means that one makes vague non-specific statements that give one “deniability”). Note well that the fascist junta is so stupid that they’re falling for it. Actually, they have no option… if Russia doesn’t send a soldier into the Ukraine, the junta can’t put its draconian “emergency” plans into effect. In short, VVP screwed them to the wall… and the Russians and Novorossiyans know it.


Sunday, 6 April 2014

World Bank Sez Ukrainian Economy to Shrink by at Least 3% in 2014

01 burning money


On Friday, the World Bank (WB) predicted a 3 percent contraction for the Ukrainian economy in 2014 compared with the growth of 1.5 to 2 percent they estimated in October. The WB cited the Ukraine’s continuing political crisis, increased economic imbalances, decline in consumer demand, and lack of fresh investment as reasons for the gross domestic product (GDP) performance revision. WB economist Anastasia Golovach said, “First and foremost, the government should pay attention to macroeconomic and financial stabilisation. Moreover, the Ukraine should ensure cost transparency and reduce corruption”. She said that Kiev needed to make structural reforms in energy, financial, and business sectors to accelerate the nation’s economic growth. According to Fan Qimiao, the WB’s country director for Ukraine, Belarus, and Moldova, the Ukraine’s GDP might return to growth next year, saying, “If the Ukraine implements an appropriate set of rapid reforms, it’d resume economic growth in the early 2015″. The WB projected the pace of economic growth in Ukraine at 3 percent for 2015. The Ukraine’s economy stagnated last year, with a nominal GDP amounting to 180.7 billion USD.

4 April 2014




This is OPTIMISTIC. When the junta cuts pensions, it’ll cut demand; when demand falls, it’ll drag down the economy. Furthermore, when the junta cuts salaries to please the ravening crapitalists at the WB, it’ll cut demand further. In short, an economic disaster is in the making, and we can stamp it, “Made by the IMF and the WB”. Of course, they’ll wash their hands of it and sleep like babies… they’re soulless pigs who only care about money and power (they’re perfect bedmates with Zbig and Nuland). This is an economic perpetual motion Jack Kevorkian death machine that’ll end in a Weimar-style inflation. God preserve the poor Little Russian people… the WB and the IMF don’t give a hoot in hell for them. By the way, neither does Langley or K Street (or their denizens and hangers-on)…

With “friends” like these…


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Thursday, 3 April 2014

From a Ukraine for the Oligarchs… to a Ukraine for the People! Programme of Candidate for President of the Ukraine Pyotr Simonenko

00 NO TO FASCISM! 02. 03.04.14


In all the years since independence, the Ukraine as a state has never been so close to a loss of sovereignty and territorial integrity as it is today. The fight for power amongst the oligarchic clans sharpened to the limit all the problems that the oligarchy spawned.

The “new-old” junta is frantically looking for protection and support in America and in Europe, it sides with those who ruled in 2005, with the oligarchs who actually control our country. Under their rule, the oligarchy gained power, hiding the money that they stole from the people in Western banks. Their so-called “reforms” led to the destruction of the domestic economy, the destruction of the world’s best public health, education, and social welfare systems. The dictation of American and European “consultants” led to annual budgets that brought on social genocide.

With direct foreign participation and financial support, a bloody coup occurred in our country. Nationalist extremists, spiritual descendants of collaborators with the German fascists during the VOV, came to power, utterly deranging our relations with Russia, bringing us to the brink of a military confrontation. Our people need to know and understand that contemptible and selfish geopolitical and economic interests guide the West. In their plans, the Ukraine would only be a place where they’d rob the natural resources and use its territory to deploy NATO military bases. For the revival and preservation of a sovereign Ukraine, we need a well-balanced and independent policy that meets the interests of the entire multinational Ukrainian people.

If I become the head of state, I’ll exert all efforts to overcome the major threats facing the Ukraine:

  • The danger of the loss of statehood and the division of the country
  • The attacks of fascism and aggressive nationalism
  • An economic disaster and the reduction of the Ukraine to an effectual colony
  • The final destruction of the social gains of the Soviet era
  • The loss of the Ukraine’s defence capability
  • The spiritual and moral degradation of society
  • To fight the criminalisation of society, to protect the personal safety of citizens and guarantee their human rights

These threats developed over the more than two decades of the corrupt rule of the criminal-oligarchic system, they led the Ukraine to the brink of the abyss. Oligarch groups privatised government institutions, turning them into tools of private business for their private profit. The apotheosis of this system was the Yanukovich régime, characterised by shameless rip-offs, boundless greed, and unprecedented corruption, a grasping for unitary totalitarian power. Other oligarchic groups, who benefited from a powerful wave of genuine popular protest, overthrew him. In gratitude, the new junta paid off the oligarchs for their support, leaving whole parts of the Ukraine at their tender mercies, letting them “devour” the country. The oligarchic division of the country and the raping of its wealth led to even more outré actions, as they took aggressive radical nationalists, frank neo-Nazis, as their allies.

Today, the Ukraine is openly under foreign control from the West. That outside interference led our country to the brink of military confrontation with the fraternal Russian people. To eliminate the salient reasons why the Ukraine teeters on the brink of national disaster, a mere change of characters in the Ukrainian political operetta won’t do anything good. Without the elimination of the oligarchy as the powers-that-be, we won’t be able to overcome the systemic crisis in our country. Therefore, our main policy goal is the elimination of the oligarchic system and building a socially just state, responsive to the will of the people.


00 NO TO FASCISM! 03. 03.04.14


Restore democracy: The means to preserve the unity of the country

The head of state should act to preserve our statehood, lead its reconstruction, and to foster democracy. The oligarchy’s Constitution is a deceit; the country needs a new social contract in the form of a new Constitution, which would return democracy to the Ukraine, to guarantee Ukrainian citizens their civil, political, economic, and social rights. We must ensure the accountability of the authorities to the people, as that’s the crux of any proposed constitutional reform. The Constitution must become a reliable guarantor of the rights and freedoms of citizens, a barrier to arbitrariness, and a basis for political stability. To do this, we must complete the transition from a presidential-parliamentary to parliamentary form of government, in which we’d abolish the institution of the presidency. We need a number of irreversible changes to consolidate democracy, to separate business from politics, and to return control of the government to the people:

  • Restoration of independent organs of people’s control over the work of the state apparat, the introduction of a mechanism of review for ministers and deputies of all levels, allowing the principle of “no confidence”, extend the control functions of the parliament
  • Empowering oblasts, along with local and regional authorities, with real powers; abolition of regional, city, and district state administrations, with the transfer of their functions to Ispolkoms (executive committees) of popularly elected local Soviets
  • The election of Deputies of Soviets under a proportional system with open lists, which will separate business from government, as it won’t allow “fat cats” to buy mandates from party leaders and buy constituencies
  • Elimination of parliamentary immunity and privileges of Deputies and other senior officials
  • The adoption of a new law on popular referenda to give the people a real opportunity to exercise power directly
  • The Constitution would have to pass an all-Ukrainian referendum before it came into force

A revival of fascism threatens our country; the oligarchs nourished it to seize control of government power. National-Chauvinism, which is a modern form of neo-Nazism, has become one of the main threats to the unity and integrity of the country. Its outburst resulted in the severe crisis that sègued into the coup. The state ignores the activity of fascist thugs; they attack the legitimate rights and interests of citizens. The majority of the Crimean population wouldn’t put up with that, leading them to vote to secede from the Ukraine by an overwhelming majority. The current junta is entirely responsible for this blow to the territorial integrity of our state. Our country’s unity is continually under attack by the activities of radical nationalist extremists. To put an end to this threat, we should ban propaganda of fascism and political extremism, and outlaw organisations engaged in such activities. It’s impossible to end this permanent crisis, to prevent its recurrence, and to preserve the integrity of the country without recognising the fact that the Ukraine isn’t homogenous ethnically, economically, or culturally, or to exclude consideration of these differences from the implementation of our public policies. As an alternative to the disintegration of the country, the KPU proposes to carry out a phased transition of the Ukraine to a federal structure, with the necessary constitutional guarantees for its unity. For this, we propose specific measures:

  • Conversion of the Verkhovnaya Rada of the Ukraine in a bicameral parliament consisting of a Chamber of Deputies and of a Council of Regions (with a smaller number of deputies), enabling it to fully take into account the characteristics and interests of the regions
  • Reform of the electoral system; election of People’s Deputies by proportional system with open regional party lists, and members of the Council of Regions elected from single-seat constituencies
  • Widespread use of instruments of direct democracy (referendums, popular initiative, impeachment, recall of Deputies)
  • Vertical decentralisation of security agencies and a reform of the MVDU (subordination of regional MVDU components to their respective local Soviets)
  • Election of lower-level judges (district and city) in local communities
  • Creation of budgets from the “bottom-up” (create legislation necessary for the region’s share of taxes and fees to remain in the local budget)
  • Reform of the tax system (tax collection at the place of production, not at the place of registration of business entities)
  • Transfer all local issues (including the language issue) to the decision of the oblast and local authorities

An indispensable condition for the preservation of the territorial unity of the country is its spiritual unity. The state must protect the spiritual values ​​and national traditions of all the peoples of the Ukraine. To that end, we’d strengthen laws to protect cultural monuments, rescue historical truth from revisionism, and protect all languages ​​and cultures of all nations and peoples resident in the Ukraine. We must preserve and strengthen the status of the Ukrainian language as a state language, but the Russian language must have the status of a second state language.


00 NO TO FASCISM! 04. 03.04.14


For the revival, modernisation, and increase of the domestic economy

To overcome the crisis, to ensure the full development of the country, and to make a better life for the people is possible only on the basis of the recovery, modernisation, and development of the domestic economy. To this end, the Komparty proposes a concrete program of economic reforms, an Anti-crisis programme, the relevance of which has increased even more. It provides:

  • Return property to state ownership (nationalisation), in a lawful way, of strategic economic sectors that undergird national power (primarily military-industrial complex, metallurgy, electric power)
  • Return the mineral wealth and natural resources of the Ukraine to state control
  • Ban the sale of agricultural land (except land acquisition between villagers)
  • Modernise the economy, industry, agriculture, construction, and transport
  • Government support and preferential loans to domestic producers
  • Investment of no less of 10 percent of GDP in domestic basic science, advanced research, and technology development
  • Investment in rural development not less than 5 percent of GDP, government support of large-scale agricultural cooperatives, a return to guaranteed state orders for agricultural products, a ban on imported food products that have Ukrainian analogues, tightening controls on agricultural exports
  • Terminating the disastrous and crippling credit relations with the IMF
  • Revision of discriminatory conditions for the Ukraine’s membership in the World Trade Organisation (WTO and closing our economic borders to low-quality imported consumer goods
  • Implementation of competitive joint Ukrainian-Russian projects in nuclear energy, aviation, shipbuilding, and space exploration

We can meet these tasks can only if we can fill the state’s coffers in a reasonable and fair way. This means that the rich must pay more taxes.

Our suggestions:

  • Exempt those of modest income from taxation, introduce progressive tax on incomes of the rich and super-rich, introduce taxes on luxury items
  • Close “offshore loophole” in the budget, impose taxation on all capital deposited abroad
  • Introduce a state monopoly on the production of alcohol and tobacco products, with profits directed to social welfare, especially, healthcare
  • Honest and transparent public procurement system to minimise corruption in the allocation of budget funds
  • Tax cuts for businesses engaged in real production, who create new enterprises, who create new jobs, but not for those engaged in purchase and resale, nor for financial speculators
  • Cancel or lower VAT (Value Added Tax) for essential/staple goods and services


00 NO TO FASCISM! 05. 03.04.14


Proposals for solving the most pressing social problems

To overcome poverty and the crisis in property ownership, and to promote social justice, we believe:

  • Adoption of a new Labour Code to protect the rights of employees, set real guarantees for decent wages and working conditions, rest, and paid holidays
  • Annul as soon as possible all anti-people laws imposed on us by the IMF. Firstly, we must cancel the unconstitutional pension “reform”
  • Increase in the minimum wage based on the real cost of living
  • Indexing of real cost of living, all wages, pensions, and social benefits to keep pace with inflation
  • Maintain the existing system of benefits for the socially disadvantaged, strengthening it, and introducing more targeted assistance
  • Restore fair utility rates, rents shouldn’t exceed 10 percent of family income
  • Increase spending on health and education to the world average (5.6 percent of GDP), prohibit tinkering with the national healthcare system, and abolish all anti-people “healthcare” reform. Establish strict liability for violation of the constitutional ban on closing hospitals, polyclinics, and medical care points
  • Provide free high-quality public health care, private clinics can only be a supplement to a full public healthcare system
  • Guaranteed state care for all children and youth, free education for all, the elimination of a shortage of places in kindergartens, restoring recreation programmes and children’s holiday schemes, guaranteeing a first job to all graduates of higher education institutions


00 NO TO FASCISM! 06. 03.04.14


For an effective non-aligned foreign policy

The late 2013/early 2014 coup resulted in Ukrainian domestic and foreign policy coming under full Western control, especially, the USA. They openly directed the change of power in our country. Washington and Brussels actually decide the composition of the Ukrainian junta, they decide our state budget, they tell us what “reforms” to carry out, in short, they tell us everything that we can do, and what we can’t do. They know better than Ukrainians do about what’s “good” for the Ukraine and what’s “bad” for it. The Ukraine has become a hostage in the geopolitical showdown between the West and Russia.

Be aware that the era of free market and free access to the market is long over. The world sees a fierce competition for resources and for access to markets. In this situation, the Ukraine, with its natural wealth and resources, is of particular interest to the leading geopolitical players fighting over the division of the world. Communists know that the first priority of a country to assert its sovereignty and independence. Otherwise, it faces extinction and colonisation. The interests of the citizens of our country and the national interests of the Ukraine should inform our foreign policy. We mustn’t allow the Ukraine to become part of any military-political bloc, especially, NATO, as it’d led to a final loss of our sovereignty.

Our foreign policy priority should be to maintain equal and mutually beneficial relations with all countries, expanding the number of our permanent allies and partners. We must do everything that we can to restore good relations with the SNG countries, primarily Russia, Belarus, and Kazakhstan. A neutral non-aligned status most fully meets the national interests of the Ukraine at this time.

The new Ukrainian junta is pulling our country into the EU. Meanwhile, European leaders don’t hide their intent to solve their countries’ economic problems by opening markets in the Ukraine, but not guaranteeing her membership in the EU, at least for the next 15-20 years. However, they want access to our resources. A sharp increase in imports from the EU and the introduction of European standards will require a lot of time and money. This will finish off the Ukrainian economy, which is on the brink of default. They’d destroy Ukrainian machine-building, light, and food industries, and our agriculture, too… they can’t compete with powerful foreign capital.

Our people need to know that the so-called European integration policy has close links with the IMF’s attempt to enslave the Ukraine. Its antisocial credit policy will result in further de-industrialisation of Ukraine and a complete dismantling of the remnants of our social safety net. An alternative to this disastrous course is membership in the Customs Union of the Eurasian Economic Community (TS EvrAsES), in cooperation with countries with rapidly developing markets and with great potential.  Primarily, that’s Russia, India, and China. I’d pursue this foreign policy if I became President of the Ukraine.


00 NO TO FASCISM! 01. 03.04.14


Everyone should have confidence that the state would protect their lives and rights

Of particular concern is that the state isn’t able to defend its interests, to protect itself and its citizens. After the collapse of the USSR, the Ukraine inherited the third-largest in the world nuclear arsenal. All of it was looted, stolen, lost, and abandoned. Twenty years later, the Ukrainian army is in ruins, and it’s unfit for action. Military equipment is utterly outdated; some of it doesn’t even work. To revive our Armed Forces, we have to start from almost scratch. We must make the military profession respectable again. This means that we must give military housing and a decent level of material and social security. We believe that our military-industrial complex should work primarily on implementing state defence orders, ensuring that our armed forces have modern military equipment and weapons.

Today, one of the most acute problems is that our citizens don’t feel protected. The state isn’t able to guarantee the people any of the basic constitutional norms. This applies not only to citizens’ rights to work, to free health care or education, but also to personal safety. On the streets of many cities, armed criminal groups run rampant, engaging in frank racketeering and banditry. Our security agencies are broken and demoralised. The first thing that I’d do is to ensure that the country follows the rule of law, not the law of the jungle. We’d disarm all illegal armed criminal groups, no matter what they called themselves, and bring their members to justice.

We hear a lot of talk about “freedom of speech” and “democratic values” from the junta; in fact, they impose censorship and persecute dissent. They arrest people for political reasons; they gin up fraudulent criminal cases against them. The new junta outlawed its political opponents without any reason. However, they give radical nationalist groups “Most Favoured Nation” status; in fact, they’re above the law. Our consistent position is that the Ukraine is a multinational state, where there should be no manifestations of superiority of one nation over another, of racism, or of any form of xenophobia. We shouldn’t only talk about the right of citizens to freedom of thought and of freedom of expression of political and religious views; we should hold ourselves strictly to them. We believe that the Ukrainian people will unite to overturn the oligarchy’s dictatorship; they’ll build a truly democratic and fair socialist state for the people. We’d eradicate poverty, corruption, social inequality, banditry, and ethnic intolerance from every corner of Ukrainian society. We’d honour the working man, whose mind and hands hold all the values ​​in the world. We’d return the country to the people.

Voters should cast their vote for the candidate of the Communist Party of the Ukraine!

27 March 2014


KPU official website


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Tuesday, 1 April 2014

Western Businesses Sceptical about the Ukraine’s Ability to Overcome Corruption

01 favours from the devil


In the last 20 years, the problem of corruption is on the agendas of all major political actors in the Ukraine. It became a prominent part of international development and assistance to the region, too. The Ukraine is the third-most major aid-receiving country in Europe. Almost half of Ukrainians say that they desire IKEA products more than any other global brand, yet the large home-furnishings retailer hasn’t been able to crack the market in a decade of trying. The reason… it won’t pay bribes.

Stuck between the EU and Russia, Transparency International said that the Ukraine emerged as the most corrupt country on the continent. Analysts said that corruption and “incompetent” leadership are the why a nation endowed with most of the ingredients needed to create a vibrant economy fell so far behind its peers. Nielsen, chief global economist at UniCredit SpA (UCG) in London, said, “Even before this latest crisis, the Ukraine was a mess beyond description. Successive governments must take collective responsibility for what’s been one of the worst-managed countries in modern history, as many officials and their family members became immensely wealthy along the way”.

Lennart Dahlgren, the retired IKEA executive who spearheaded the company’s entry into Russia, said in an interview with Russky Reporter magazine in 2010 that Russia “is whiter than snow” compared with the Ukraine. Walter Kadnar, the company’s Russian chief, said that IKEA plans to invest 2 billion euros (96.8 billion Roubles. 2.76 billion USD. 3.05 billion CAD. 2.98 billion AUD. 1.66 billion UK Pounds) in Russian retail centres, manufacturing, and logistic chains through 2020. On Monday, ITAR-TASS reported that IKEA hoped by 2020 to double the 76.4 billion rubles (2.18 billion USD. 2.4 billion CAD. 2.35 billion AUD. 1.58 billion Euros. 1.31 billion UK Pounds) revenues it generated in the 2012-13 financial year. Currently, KEA operates 14 retail stores in Russia and plans to open 5 to 6 more sites, including several in the Moscow area. The company is considering 25 cities for possible future expansion.

The poorest EU states, Bulgaria and Romania, and even Belarus, are all now twice as rich as the Ukraine, where total output is about the same as New Zealand, a country of 4.4 million people. Lilit Gevorgyan, senior analyst at IHS Global Insight in London said that whoever wins the Ukrainian presidency in May would face longer-term challenges such as cleaning up the courts and putting in place checks and balances to help eradicate corruption and to attract the likes of IKEA. World Bank figures show that the Ukraine hasn’t yet recovered from 2009, when output in current dollars plunged a record 35 percent from its 180 billion USD peak the year before,. The government expects GDP to shrink another 3 percent this year in real terms, as it cuts spending.


I believe that whoever wrote this piece (it has the “feel” of a piece written by a young staffer smitten with the West) has no clue about what’s really going on in the Ukraine. The Ukrainian economy is at an utter standstill. What’s worse, gas prices just jumped up, and there’s no domestic supply to pick up the slack (the Crimea gas production is now in Russian hands). The junta just jacked up utility rates for consumers and slashed pensions radically… this means less money circulating, which means that the economy will go into further free fall. The only way to mend the situation is to take a fourfold path:

  1. Restore pensions to their former level and announce a tax surcharge on all incomes above 100,000 USD (3.52 million Roubles. 110,000 CAD. 108,000 AUD. 72,500 Euros. 60,200 UK Pounds) a year
  2. Announce a five-year “holiday” on loan payments
  3. Require Yaytsenyuk, Avakov, and Turchinov to resign immediately, as they were major players in political corruption in the past, and declare Yuliya Timoshenko ineligible for all political office in perpetuity due to her former massive corruption
  4. Tell the IMF to go to hell

This isn’t going to happen (especially, not point nr 4)… therefore, the only thing that the junta can do is either to crawl to the EU or to crawl to Russia. It has no other choices. Russia WOULD offer a better deal, but the junta won’t accept it, for political reasons. The oligarchs and Western business interests (aided by soulless diaspora Ukrainians) sucked the Ukraine dry for immediate gain. Today, there’s nothing left. They “ate up all the seed corn”. Actually, what the EU should’ve done was to have let Russia have the whole banana (and the whole headache)… Putin would’ve had to take this raw deal, or lose “face” domestically and internationally. Instead, the EU stuck itself to the Tar Baby. One of two shitty outcomes await them… either they have to funnel billions into this kleptocracy (or lose the game outright) or lose the poker game to Vlad & Co anyway. Put up or shut up time is coming… what sort of hand DO they hold?


31 March 2014

Voice of Russia World Service


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