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Monday, March 19, 2018

Nationalization in DND: the Ukrainian oligarchs were going to deprive of the largest enterprises

The day before you leave for the summer, the DPR people’s Council unanimously voted for the law on the nationalization of, among other things, declaring all Ukrainian property, the property of the breakaway Republic. The threat of nationalization hanging over the largest enterprises of the Ukrainian oligarchs in Donetsk, Yenakiyevo, Khartsyzsk and Gorlovka. The decision was so controversial that members of the self-proclaimed Republic in Minsk on the words rushed to disown him. However, talk about the transition of the entire industry under the control of the DNI go since its inception, and every year this problem is becoming more acute.

photo: ru.wikipedia.org

The bill was voted on June 24, however, until now the text of the controversial document was never published. “No need to make mountains out of molehills, on condition of anonymity, says “MK” one of the deputies of the self-proclaimed Parliament. Just this text, no one was in the agenda of the session, the nationalization was not. The head of DNR Alexander Zakharchenko surprised everyone with a voice has called for a vote the new law and urged him to support himself, and he went to the explosion in regional traumatology. There is access to the local morgue Ukrainian saboteurs attempted to undermine the Motorola. Without Zakharchenko, the text of the law was read out by his representative Svetlana Egorova. The feeling was that she is also the first time reading. Well, I voted for the text in the first and second readings, as the head asked. Unanimously! Now the text bring to mind the people’s Council, then served on a signature Zakharchenko, he will sign and publish it. All staff! Do not inflate”.

At the same time on the results of the talks in Minsk Darya olifer, press Secretary of the Plenipotentiary of Ukraine Leonid Kuchma said that representatives from DND called the information about the law “untrue”, while Moscow agreed with Kiev that such initiatives can ruin the entire negotiation process.

For some time it seemed that everybody can relax, but there it was. On Saturday, the Ukrainian media broke the news that the militia occupied the premises of NEK “Ukrenergo” in Gorlovka and was not allowed to the Ukrainian officials. While the armed men forced the technical staff to sign papers on the transition in the same organization, but registered in DND. The press service of “Ukrenergo” has issued a statement that the whole operation was held by order of the leadership of the breakaway Republic, which managed the law on nationalization.

To understand the intricacies of Donetsk policy quite difficult. On the disposal of “MK” audio heard on 24 June Egorova uncertain voice echoed the text of the bill, which States that the objects of state ownership of the DNI is all of the property of Ukraine on the territory of the DNI, all of its deposits, pipeline complexes, all enterprises in which the state share.

A separate item “d” listed in the list of the Donetsk railway, with which we begin the description of the wealth of the disputed territory. As you know, before the war, this transportation network was the second cargo transportation and income after Dnipropetrovsk, which, however, took the lead at the expense of export production from the Donbass, while the Donetsk piece of iron lion’s share of their income received due to internal transportation between the mines and numerous factories, tied in a single technological scheme. Despite the war, the whole region still represents one large metallurgical complex as part of the famous chain “coal — coke — metal”.

The Mariupol enterprises tied to Europe’s largest Avdiivka coke plant, which receives coal from mines in the territory of the DNI. In addition, on the territory of the breakaway Republic is Khartsyzsk pipe, yenakiieve, Makiivka iron and steel and other large and production work. Most industries are included in the so-called Empire of Rinat Akhmetov, was registered in Ukraine and pays it to the budget of all taxes, up to military and transport fees. The DNR remain only the wages of workers that fall in the national currency again on the cards of Ukrainian commercial banks. Office to cash those cards in Donetsk at every step.

photo: tvzvezda.ru
The head of the DND Alexander Zakharchenko.

The self-proclaimed Republic, of course, unhappy with the current situation, but to change it still does not work. The reason is simple: the vast majority of its large economic capacity focused on Ukraine and exports the same metal on the world market. There is no “gray area” exports can not be. The recent strike of railroad workers, working in the NPT, which came a couple of weeks from 30 may, which nearly paralyzed the entire industry on the territory of the militia, without the supply of Ukrainian raw materials steel mills just stood up.

You’ve got to understand that until recently the Director of the Donetsk railway travelled regularly from the capital of the DNI in Kramatorsk on meeting to the Ukrainian head of the regional military-civil administration Paul Zebrowska. However, in winter “Ukrzaliznytsya” has moved to the centre of the road to Krasny Liman, and Donetsk” and “Luhansk” areas did branch. But the location is “headquarters” has changed, and to translate officially the people at the branch did not, and 25,000 people employed on the Railways in the DNI and LC, three months had not received wages. In late may, the people went on strike, and transportation from DNR to Ukraine stood up. Within a week stopped working Alchevsk metallurgical plant in the LC, the Donetsk metallurgical and forth in a Domino effect other.

The harsh reality for the self-proclaimed republics lined up for a long time — the taxes properly assemble no one, no self-sufficiency. But the work on building our own economy is continuously conducted in 2014. Closed the Ukrainian network of supermarkets became the network “First national supermarket, local shops Brusnichka initially closed, and then turned into the chain “Avoska”. Depressed and working all of the network stations. Taxed the local markets, and now rumor has it that the nationalization will affect them. All midsize businesses have earned under the threat of confiscation. “I sink, I’ve gone to in 2014, then in 2015, and in the end, I pay all the taxes, and land tax backdating and penalties imposed! Hard the DNI now have the basic tools!” — shares with “MK” one of the entrepreneurs of Donetsk.

There is a constant work to create the tax base, the biggest success is the building up of charges of electricity through the national Bank DNI. In Donetsk and the surrounding area year does not pay for electricity. Owned by Rinat Akhmetov’s “DTEK Donetskoblenergo” just could not get payment in rubles with the “occupied” territory.

From October 2015, electricity consumers DNI is through the company “Energoservice “Witold”, which signed a contract structure Akhmetov and which collects the money from consumers. Financial flows first went through the national Bank of the DPR, and taxes the Ministry of taxes and fees. By the way electricity in Donetsk in rubles almost twice cheaper than in neighboring Ukrainian Mariupol. While here and there it provides “DTEK Donetskoblenergo”.

“Everyone understands that enterprises located on the territory of the DNI and the LC, must be in their legal framework, and of the Republic in this endeavor. But nationalization isn’t an option, since it results in thousands of people remain without work. Therefore, all parties must try to resolve the issue through compromise. In part, the need to create such conditions that, when Akhmetov began to pay taxes to budget of Donetsk, Kiev did not consider him a terrorist and put in jail. Such negotiations can be conducted in the framework of the Minsk negotiations, especially since there already created a group on economic issues,” — said “MK” Denis DENISOV, head of the Ukrainian branch of the Institute of CIS countries.

If anything, at the moment everyone understands that Kiev will not put to the vote the election law on Donbass on July 14, nor, perhaps, in the fall. Sources “MK” in the Verkhovna Rada say that’s a vote I’m afraid all it can to destroy the Ukrainian Parliament and lead to early elections. The situation came to a standstill position. And finding the DNI and the LC in limbo between Russia and Ukraine gradually enters the third year of its existence. Under the thunder of cannon, which the night heard well in the Ukrainian Mariupol, Avdiivka and Volnovakha, and in Dnrovskih debaltseve, Dokuchaevsk and Donetsk. Now we are seeing not just artillery fire, and the whole “war on the Minsk agreements”. War nights in the “gray zones” under the Avdeevka, Mariupol and debaltseve. Grey areas are not marked on maps of the Minsk agreements in any way, and debaltseve, Shanku and Kominternovo (the village near Mariupol are under the control of the militia) Ukraine and at all considers their territories on the same Minsk agreements and the fighting there did not consider them a violation. APU periodically make their sudden attack on the nameless heights and the industrial zone, creating new hotbeds of tension and obeskrovlivaya units of the 1st army corps of the DPR, which then months attacking strategic targets as industrial areas under the Avdeevka.

The DNR has a very irregular configuration prevailing during the fighting of the summer of 2014 and winter of 2015, and in many places the Ukrainian side are dangerously close to key transport arteries and most large industrial cities.

In these circumstances, in the breakaway republics has been fighting for survival and cutting costs. If you can’t yield to self-financing, there must be work to create at least some private economic base.

From late spring 2014 DNI and LC did a great job in building the attributes of statehood: created ministries, parliaments, there are the heads of the republics… And in spite of the fact that in comparison with the same institutions in any other state, the efforts of the militia often look comical, to deny the progress impossible.

However, the longer stalled talks, the more the DNI and the LC separates from the Ukraine. As has been said Pushilin, the local elections in Donetsk it is impossible to postpone indefinitely, and if Kiev does not understand, the militia will hold their own, and, as stressed by the representative of DND, this will be the final step in the formation of an independent Republic. And death Minsk-2.

In all the movements and statements around a lot of Donbass outright bluff and the desire to create a new “negotiating position” for pressure on the enemy. The bargaining over the ownership of the Ukrainian oligarchs, establishment of election primaries in the DNR this fall, revealing the beginning of formation of election commissions on the territory of the breakaway republics is the clear all messages if not Kiev, then those who have influence in Kiev: “we Need to decide something!”

Moreover, sources in the presidential administration claimed that Moscow is not going to contain the DNI and the LC on the dependent until the end of time and wants to be able to provide for their needs independently.

It is likely that those who are behind the vote of the Parliament DND for the law on nationalization, wanted to give a signal to the Ukrainian side: if you do not start paying taxes to us, we will select at you all businesses. It is difficult to say whom this will be worse most likely, all will suffer. In Donetsk, people remain without work, and the Ukrainian oligarchs — with no money and factories. Facing technological systems are often cut for scrap.

But if negotiations on this question will not be, partial nationalization will take place in any case, as the DNI in the current conditions of “neither war nor peace” just no other way.

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