Ukrainian oligarchs
Encyclopedia
The Ukrainian oligarchs are a group of Business oligarch
that quickly appeared on the economic and political scene of Ukraine
after its independence in 1991, just like it happened in neighboring post-Soviet state
Russia
.
Oligarchs are usually defined as businessmen having direct influence on both politics
and economy. During the 1990s, the oligarchs emerged as well-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 businesspeople 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) ) 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 an initial investment capital to collect such property titles could thus easily arrive to the property of whole former public holdings.
Business oligarch
Business oligarch is a near-synonym of the term "business magnate", borrowed by the English speaking and western media from post-Soviet parlance to describe the huge, fast-acquired wealth of some businessmen of the former Soviet republics during the privatization in Russia and other post-Soviet...
that quickly appeared on the economic and political scene of Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
after its independence in 1991, just like it happened in neighboring post-Soviet state
Post-Soviet states
The post-Soviet states, also commonly known as the Former Soviet Union or former Soviet republics, are the 15 independent states that split off from the Union of Soviet Socialist Republics in its dissolution in December 1991...
Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
.
Oligarchs are usually defined as businessmen having direct influence on both politics
Politics of Ukraine
Politics of Ukraine take place in a framework of a presidential representative democratic republic and of a multi-party system. Executive power is exercised by the Cabinet. Legislative power is vested in the parliament...
and economy. During the 1990s, the oligarchs emerged as well-connected entrepreneurs who started from nearly nothing and got rich
Nouveau riche
The nouveau riche , or new money, comprise those who have acquired considerable wealth within their own generation...
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 businesspeople have "taken over control" of political parties (examples of this are Party of Greens of Ukraine
Party of Greens of Ukraine
The Party of Greens of Ukraine is a Ukrainian political green party founded in 1990 and registered in May 1991.The party is a successor of the Green World Association and under that name participated in the Ukrainian parliamentary elections of 1990 as part of the Democratic Bloc...
, Labour Ukraine
Labour Ukraine
Strong Ukraine ; former Labour Party Ukraine , is a political party in Ukraine registered in August 1999. The party claims to have over 80,000 members as of mid-May 2010. It is currently negotiating a merge with the Party of Regions....
and Social Democratic Party of Ukraine (united) ) or started new ones to gain seats and influence in the Verkhovna Rada
Verkhovna Rada
The Verkhovna Rada of Ukraine is Ukraine's parliament. The Verkhovna Rada is a unicameral parliament composed of 450 deputies, which is presided over by a chairman...
(Ukrainian parliament).
The rise of the oligarchs has been connected to the processes of privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
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 an initial investment capital to collect such property titles could thus easily arrive to the property of whole former public holdings.
Noticeable Ukrainian oligarchs
- Rinat AkhmetovRinat AkhmetovRinat Leonidovych Akhmetov is a Ukrainian businessman. He is the founder and President of System Capital Management, and is ranked among the wealthiest men in the nation. Akhmetov is also the owner and President of the Ukrainian football club Shakhtar Donetsk...
is the wealthiest man in UkraineUkraineUkraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
. - Leonid ChernovetskyiLeonid ChernovetskyiLeonid Mykhaylovych Chernovetskyi is the incumbent Mayor of Kiev, the capital of Ukraine. Before his political career, he was a successful businessman, founder and controlling stakeholder of the Pravex Group and Pravex Bank, one of the largest banks in Ukraine.-Biography:Chernovetskyi quit school...
, one of the first bankers in Ukraine, now formal mayorMayor of KievMayor of Kiev is the elected mayor of the municipality of Kiev, the capital of Ukraine, who is also normally automatically appointed as Head of the City's State Administration and Chair of the City Council....
of the capital KievKievKiev or Kyiv is the capital and the largest city of Ukraine, located in the north central part of the country on the Dnieper River. The population as of the 2001 census was 2,611,300. However, higher numbers have been cited in the press....
. - Dmytro FirtashDmytro FirtashDmytro Firtash is a Ukrainian businessman and billionaire .Firtash first steps in business where in in the food industry in the early 1990s before moving into gas trading....
, the most scandal-ridden and important figure in the vital gas industryNatural gasNatural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
. - Ihor KolomoyskyiIhor KolomoyskyiIhor Valeriyovych Kolomoyskyi , known commonly as Igor Kolomoisky is an Ukrainian business oligarch, he has Israeli and Ukrainian citizenship although dual citizenship is prohibited in Ukraine. Kolomoyskyi is the leading partner of the Privat Group and former chairman of FC Dnipro Dnipropetrovsk....
, the richest and most influential among Jewish activists in the country. - Viktor PinchukViktor PinchukVictor Pinchuk is a Jewish-Ukrainian businessman and philanthropist. Forbes ranked him # 336 on the list of the wealthiest people in the world, with a fortune of $3.3 billion...
, the son-in-law of ex-president Leonid KuchmaLeonid KuchmaLeonid Danylovych Kuchma was the second President of independent Ukraine from 19 July 1994, to 23 January 2005. Kuchma took office after winning the 1994 presidential election against his rival, incumbent Leonid Kravchuk...
controls much of the nation's media. - Yulia TymoshenkoYulia TymoshenkoYulia Volodymyrivna Tymoshenko , née Grigyan , born 27 November 1960, is a Ukrainian politician. She was the Prime Minister of Ukraine from 24 January to 8 September 2005, and again from 18 December 2007 to 4 March 2010. She placed third in Forbes Magazine's List of The World's 100 Most Powerful...
, former Prime Minister of UkrainePrime Minister of UkraineThe Prime Minister of Ukraine is Ukraine's head of government presiding over the Cabinet of Ministers of Ukraine, which is the highest body of the executive branch of the Ukrainian government....
, one of the wealthiest persons in Ukraine (although she claims to have a modest income). - Sergiy Tigipko, multi-millionaire with a long career in Ukrainian politics.
- Pavlo LazarenkoPavlo LazarenkoPavlo Ivanovych Lazarenko is a former Ukrainian politician and former Prime Minister who, in August 2006, was convicted and sentenced to prison in the United States for money laundering, wire fraud and extortion...
, former Prime Minister of UkrainePrime Minister of UkraineThe Prime Minister of Ukraine is Ukraine's head of government presiding over the Cabinet of Ministers of Ukraine, which is the highest body of the executive branch of the Ukrainian government....
now jailed in U.S. prison.
See also
- Russian oligarchsRussian oligarchsBusiness oligarch is a near-synonym of the term "business magnate", borrowed by the English speaking and western media from Russian parlance to describe the huge, fast-acquired wealth of some businessmen of the former Soviet republics during privatization in Russia and other post-Soviet states in...
- Business magnateBusiness magnateA business magnate, sometimes referred to as a capitalist, czar, mogul, tycoon, baron, oligarch, or industrialist, is an informal term used to refer to an entrepreneur who has reached prominence and derived a notable amount of wealth from a particular industry .-Etymology:The word magnate itself...
- History of post-Soviet Russia: The "loans for shares" scheme and the rise of the "oligarchs"
- OligarchyOligarchyOligarchy is a form of power structure in which power effectively rests with an elite class distinguished by royalty, wealth, family ties, commercial, and/or military legitimacy...
- Robber baron (industrialist)Robber baron (industrialist)Robber baron is a pejorative term used for a powerful 19th century American businessman. By the 1890s the term was used to attack any businessman who used questionable practices to become wealthy...
External links
- Chernovetsky enters Wprost list of 100 richest people by Kyiv PostKyiv PostThe Kyiv Post is Ukraine's leading English-language newspaper.-History:The Kyiv Post was founded in September 1995 by an American, Jed Sunden. The paper covers politics, business and entertainment. The staff is a team of Western and Ukrainian journalists. Historically, the editorial policy has...
(October 22, 2008) - To Catch an Oligarch by Jasen Felch and Justin Kane, Center for Investigative Reporting (October 4, 2004)