Kiev Cracks Down on Corruption, But Will it Solve the Oligarch Problem?

As Ukraine continues to struggle with separatist violence and looming economic collapse, its government officials hope to regain some stability with an aggressive anti-corruption initiative. On March 25, Ukraine televised the arrests of Sergiy Bochkovsky, director of the emergency services ministry, and his deputy Vasyl Stoyetsky. Many other top Ukrainian officials have recently been arrested on corruption charges. The surge in arrests stems partly from government officials’ concern over private militias financed by powerful oligarchs. It also comes in response to pressure from the IMF, the EU, and other Western groups that are willing to provide economic aid under the condition that Ukraine crack down on corruption.

While Ukraine’s anti-corruption campaign will likely help the country to rebuild economically, the state still faces a threat from the oligarchs who have financed battalions to fight against separatists. The Dnepr-1 battalion, backed by oligarch Ihor Kolomoisky, has been accused of kidnapping the head of Ukraine’s state land fund to prevent him from replacing another official. Groups of fighters backed by oligarchs as exemplified by Dnepr-1 and the similar Azov and Dnipro battalions have raised concerns about an emerging system of warlords.

Conflict between oligarchs and the Ukrainian government came to a head on March 25 when President Petro Poroshenko forced Kolomoisky to resign from his position as governor of the central region of Dnipropetrovsk. Kolomoisky had financed defense units to fight on the side of the Ukrainian government against pro-Russian separatists. However, he recently deployed his private militia in Kiev in response to government regulations of his business interests, and was subsequently ousted from his post as governor.

Oligarchs have played an incredibly influential role in Ukrainian politics, and they have made structural reform immensely difficult. If Ukraine wishes to rebuild its stability after Russian annexation of Crimea and amidst economic downturn, it must continue to strengthen its anti-corruption campaign. However, attacking corruption will not be enough to stifle the problem of wealthy oligarchs with powerful private militias that threaten state sovereignty. Kiev must also take a broader approach toward dismantling these oligarchs’ immense power if it is to avoid more instances in which non-state militias challenge government authority.

Sources:

http://www.economist.com/news/europe/21647355-building-nation-means-putting-plutocrats-their-place-president-v-oligarch

http://www.washingtonpost.com/opinions/the-rise-of-warlords-threatens-ukraines-recovery/2014/12/30/a23b2d36-8f7b-11e4-a412-4b735edc7175_story.html

http://www.newsweek.com/evidence-war-crimes-committed-ukrainian-nationalist-volunteers-grows-269604

http://www.nytimes.com/2015/03/26/world/europe/ukraine-arrests-2-officials-as-nation-watches-on-tv.html?ref=topics

http://www.vox.com/2015/3/23/8279397/kolomoisky-oligarch-ukraine-militia

Leave a Reply

Your email address will not be published. Required fields are marked *