Ukrainian oligarchs
Ukrainian oligarchs (Ukrainian: українські олігархи, romanized: ukrayins'ki oliharkhy) are business oligarchs who emerged on the economic and political scene of Ukraine after the 1991 Ukrainian independence referendum. This period saw Ukraine transitioning to a market economy, with the rapid privatization of state-owned assets. Those developments mirrored those of the neighboring post-Soviet states after the dissolution of the Soviet Union. The influence of Ukrainian oligarchs on domestic and regional politics, particularly their links to Russia, has been the source of criticism from pro-Western sources critical of Ukraine’s lack of political reform or action against corruption.[1][2]
In 2008, the combined wealth of Ukraine's 50 richest oligarchs was equal to 85% of Ukraine's GDP.[3] In November 2013, this number was 45% (of GDP).[4] By 2015, due to the Russo-Ukrainian War, the total net worth of the five richest and most influential Ukrainians at that time (Rinat Akhmetov, Viktor Pinchuk, Ihor Kolomoyskyi, Henadiy Boholyubov and Yuriy Kosiuk) had dropped from $21.6 billion in 2014 to $11.85 billion in June 2015.[5] (In 2014, Ukrainian GDP fell by 7%; in 2015, it shrank 12%.[6])
Usage
Oligarchs are usually defined as businessmen having direct influence on both politics and the economy. During the 1990s, the oligarchs emerged as politically-connected entrepreneurs who started from nearly nothing and got rich through participation in the market via connections to the corrupt — but democratically elected — government of Ukraine during the state's transition to a market-based economy. Later, numerous Ukrainian business-people have "taken over control" of political parties (examples of this are Party of Greens of Ukraine, Labour Ukraine and Social Democratic Party of Ukraine (united)[1]) or started new ones to gain seats and influence in the Verkhovna Rada (Ukrainian parliament).
The rise of the oligarchs has been connected to the processes of privatization of state-owned assets. These processes usually involved the distribution of property titles of such enterprises, land, and real estate, on equal base to the whole population of the country, through instruments such as privatization vouchers, certificates, and coupons. Given the different preferences of people in relation to risk-aversity, property titles were easily re-sold. Businessmen who could provide initial investment capital were able to collect those property titles and thus take control over former public holdings.
National security concerns of various Western nations from the oligarchic kleptocracy have been alleged since the early 2000s. The issue gained greater salience after the 2022 Russian invasion of Ukraine where widespread sanctions were enforced against both Russian and Ukrainian oligarchs in March through May 2022, and the national security implications of oligarch funds when a great deal of money—sourced from Ukraine or Russia but spent in the West—finds its way into influencing matters of national security.[7]
The oligarchs' influence on the Ukrainian government is extreme. In 2011 some analysts and Ukrainian politicians believed that some Ukrainian businesses tycoons, with "lucrative relations" with Russia, were deliberately hindering Ukraine's European Union integration.[8]
List of oligarchs by wealth
In total, the top 100 wealthiest business people in Ukraine control around $44,5 billion, according to Forbes,[9] which accounts for 27% of Ukrainian GDP in September, 2021.[10]
The top 10 Ukrainian oligarchs in 2021 were identified as:[10]
| Rank | Oligarch | Value | Notes |
|---|---|---|---|
| 1 | Rinat Akhmetov | $7.6 billion | Energy generation and distribution, coal and iron ore mining, metallurgy, media industry |
| 2 | Victor Pinchuk | $2.5 billion | Steel rolling, media industry |
| 3 | Kostyantyn Zhevago | $2.4 billion | Banking, vehicle manufacturing, iron ore mining |
| 4 | Ihor Kolomoyskyi | $1.8 billion | Banking, crude oil |
| 5 | Henadiy Boholyubov | $1.7 billion | Banking |
| 6 | Oleksandr and Halyna Hereha | $1.7 billion | Retail |
| 7 | Petro Poroshenko | $1.6 billion | Vehicle manufacturing, confectionery |
| 8 | Vadym Novynskyi | $1.4 billion | Metallurgy, shipbuilding, Russian Orthodox Church |
| 9 | Oleksandr Yaroslavsky | $820 million | Real estate, metallurgy |
| 10 | Yuriy Kosiuk | $780 million | Agriculture, food industry |
Chernenko study
An economic study by Demid Chernenko identified 35 oligarchic groups based on data points between 2002–2016:[11]
| Oligarch group | Owners (members) |
|---|---|
| System Capital Management | Rinat Akhmetov |
| Smart Holding | Vadym Novynskyi, Andriy Klyamko |
| Energy Standard | Kostiantyn Hryhoryshyn |
| Industrial Union of Donbas | Serhiy Taruta, Oleh Mkrtchian, Vitaliy Haiduk |
| Energo | Viktor Nusenkis, Leonid Baisarov |
| Privat Group | Ihor Kolomoyskyi, Henadiy Boholyubov, Oleksiy Martynov |
| Group DF | Dmytro Firtash, Serhiy Lyovochkin, Yuriy Boyko |
| Universal Investment Group | Vitaliy Antonov |
| Azovmash | Yuriy Ivanyushchenko, Arsen Ivanyushchenko |
| Kernel | Andriy Verevskyi |
| Motor Sich | Vyacheslav Bohuslayev |
| Ukrprominvest/Roshen | Petro Poroshenko, Yuriy Kosiuk, Oleksiy Vadaturskyi |
| Nord | Valentyn Landyk |
| Finance and Credit | Kostyantyn Zhevago, Oleksiy Kucherenko |
| Astarta | Viktor Ivanchyk, Valeriy Korotkov |
| Dynamo | Hryhoriy Surkis, Ihor Surkis, Viktor Medvedchuk |
| Interpipe | Victor Pinchuk |
| TAS | Serhiy Tihipko |
| Konti/APK-Invest | Borys Kolesnikov |
| Obolon | Oleksandr Slobodyan |
| Ukrinterproduct | Oleksandr Leshchinskyi |
| Stirol | Mykola Yankovskyi |
| Creativ Group | Stanislav Berezkin |
| DCH (Development Construction Holding) | Oleksandr Yaroslavskyi |
| AVK | Volodymyr Avramenko, Valeriy Kravets |
| Concern AVEC | Oleksandr Feldman |
| Aval | Fedir Shpig |
| Ukrsotsbank | Valeriy Khoroshkovskyi |
| Pravex | Leonid Chernovetskyi and his family |
| Forum Group | Leonid Yurushev |
| Uvercon | Eduard Prutnik |
| Continuum | Ihor Yeremeyev, Serhiy Lahur, Stepan Ivakhiv |
| EpiCentre K | Oleksandr Hereha, Halyna Hereha |
| Cascade Investment | Vitaliy Khomutynnik |
| Naftohazvydobuvannia | Nestor Shufrych, Mykola Rudkovskyi |
See also
References
- Wilson, Andrew (2005). Virtual Politics: Faking Democracy in the Post-Soviet World. New Haven: Yale University Press. ISBN 0-300-09545-7.
- Feifer, Gregory (2010-06-03). "Ukraine's New Rulers: What Do They Want?". RadioFreeEurope/RadioLiberty. Retrieved 2022-03-03.
- Kuzio, Taras (2008-07-01). "Oligarchs Wield Power in Ukrainian Politics". Eurasia Daily Monitor. Vol. 5, no. 125.
- Wilson, Andrew (2016). Survival of the Richest: How Oligarchs Block Reform in Ukraine (PDF). Policy Brief. European Council on Foreign Relations.
- "A Decisive Turn? Risks for Ukrainian Democracy After the Euromaidan". Carnegie Endowment for International Peace. 2016-02-03. Retrieved 2022-03-03.
- "The Ukrainian Economy Is Not Terrible Everywhere". The Economist. 2016-01-20. Retrieved 2022-03-03.
- "The Transnational Kleptocracy Threat / The Eastern Front: episode 44". AEI.org. 11 May 2022.
- Onyshkiv, Yuriy; Lavrov, Vlad (2011-12-16). "EU Hopes Fade As Gas Lobby Triumphs". Kyiv Post. Retrieved 2022-03-03.
- 100 найбагатших українців 2021. Forbes (in Ukrainian). 2022-03-03. Retrieved 2022-03-02.
- "Report for Selected Countries and Subjects". IMF.org. April 2021. Retrieved 2021-09-27.
- Chernenko, Demid (2018). "Capital Structure and Oligarch Ownership" (PDF). Economic Change and Restructuring. 52 (4): 383–411. doi:10.1007/S10644-018-9226-9. S2CID 56232563.
External links
- Chernovetsky enters Wprost list of 100 richest people by Kyiv Post (October 22, 2008)
- To Catch an Oligarch by Jason Felch and Justin Kane, Center for Investigative Reporting (October 4, 2004)