Billions Made on the Blood of Donbass: Poroshenko’s War-Profits Scheme December 3, 2016 Analysis Translated by Ollie Richardson & Angelina Siard 16:11:30 03/12/2016 fondsk.ru In November, the President of Ukraine Petro Poroshenko completed a major construction. He was building his chain of command with the money of “defense”. During the three years of the war with Donbass, he succeeded at last to concentrate almost the entire sum of funds allocated for needs of defense of Ukraine in his hands through the alignment of key posts of well-checked staff. Moreover, by the irony of fate, the whole scheme is tied to the office that was controlled by Poroshenko himself at the time of the swept-away-by-the-coup government – the Ministry of Economic Development and Trade (MEDT). The investigation of the feverish activity of the Ukrainian President to reform the defence sector “to his benefit” appeared nowhere else other than in “Ukrainian Pravda”, which exists on the money of the Western “friends of Ukraine”, and that can only mean one thing: the end is near. Time to buy Villas somewhere on distant shores, although according to data from the same “Ukrainian Pravda”, the whole business team of Poroshenko already have Villas – on the coast of Spain. “Until recently, in “defense” there was some status quo. Spheres of influence were divided between the NSDC Secretary Aleksandr Turchynov and Petro Poroshenko,” writes the Ukrainian source, paying attention to “the man” of the President who has the post of Deputy of Turchynov. This man is Oleg Gladkovsky (in the past Svinarchuk), a business partner of Poroshenko, who from August 2015 served as the Chairman of the Interdepartmental commission on policy of military and technical cooperation and export control (i.e., he was already attached to the money of “defense”). Having shuffled into the chair of the Deputy Head of the National Security and Defence Council, “his man” Gladkovsky received the opportunity to directly oversee the Ministry of Economic Development and Trade, where Poroshenko also appointed to the post of Deputy “his man” Yury Brovchenko. He worked under the supervision of the President of Ukraine in the Ministry of Economic Development and Trade in the deposed government, and was in charge of the Ministry on issues of the economy of “defense”. After the appointment Brovchenko began reforms. First of all, he reformed his former department, inventing for it a more resonating name and at the same time pushing out staff that were the unnecessary links in the chain of “his people”. As a result, the economy of “defense” completely passed into the hands of Poroshenko. “His man” in the face of the Deputy in the National Security and Defence Council led another “his man” in the face of Deputy in the Ministry of Economic Development and Trade, and he directs “his man” in the face of the head department with the beautiful name of “Concept for the Development of the Security and Defense Sector”. All the documentation of the Ukrainian “defense” passes through this department, in the area of its responsibility – coordination of state orders, the allocation of funds from the reserve fund, and the reformation and development of the defence industry. This is not sweets with chocolates, even if they bring Poroshenko a lot of money. In 2016, writes “Ukrainian Pravda”, the budget of the state defense orders could reach more than $530 million. In addition, the “bribe-taking ability” of the Ministry of Economic Development (and of the defense department) is extremely high: it is precisely this Ministry that provides a closed roster of performers of defense contracts, and determines who should be and who should not to be on the roster. However, this is not all in Poroshenko’s vertical of power. The state program of the reformation and development of the defense industry until 2020, for fulfilment of which it is planned to allocate annually 0.5% of Ukraine’s GDP, is fastened to the Ministry of Economic Development and Trade. The Ministry acts as the Manager of means. It is known that “his man” Brovchenko in the Ministry of Economic Development and Trade is now working on the development of the program. And he does it in such a way that there is steam coming from his ears. In the aforementioned vertical there is another important element – the concern “Ukroboronprom”, which includes an alternative version of the program. It is top secret. The amount of funding contained in this document many times exceeds the queries from the Ministry of Economic Development and Trade. The point is that “his people” are standing behind both variants of the program. The Supervisory Board of “Ukroboronprom” consists exclusively of people of Poroshenko and Turchynov. The other day Sergei Pashinsky left, who was the head of “Ukroboronprom”, and at the same time of the “defense committee” in Parliament: in fact, the same men represented the interests of “Ukroboronprom” and had to control it. The abuse of “Ukroboronprom” Pashinsky explained simply: allegedly the control is so good that it cannot be hidden: “Before 2014 did anyone hear something like this? Yes, unfortunately there they were stealing. We fought with it, we fought and we will fight!” In October Pashinsky wrote a letter of resignation to the Supervisory Board of “Ukroboronprom”, and in November Poroshenko dismissed him. It is expected that this post will go to another “his man” (although Pashinsky was also for a long time “his man” – at first for President, then for the head of the National Security and Defence Council). Finally, it is also “his man” of Poroshenko – Roman Romanov – who controls the concern “Ukroboronprom”, who had never been associated with “defence”, but in regards to the business of the Ukrainian President and his partners – yes he was. In addition, in 2014 Romanov led the election headquarters of Poroshenko in the Kherson region. Such is the presidential vertical of power in the defense industry of Ukraine. The “Popular Front”, which also desired its own vertical (Yatsenyuk – Turchynov – Ministry of Economic Development and Trade – head of the “defense” Department – Pashinsky), didn’t succeed to build it, although, no doubt, for a long time this “incomplete vertical” also existed and received their gifts from the management of the money of the defense industry. Billions on the blood of Donbass were shared with the “his people” of Poroshenko and “the people” of Yatsenyuk and Turchynov. The war was extremely profitable for both. Simply put – the vertical of Poroshenko, which was built on the level of the key deputies of departments and the leaders of the executive structures of “defense”, devoured the “incomplete vertical”, the construction of which “Popular Front” was engaged in. The answer to the question of why Kiev is not interested in ending the war in Donbass, is clearer than clear. The two largest political forces that came to power on the bayonets of stormers of Maidan are interested in its continuation, and this interest is concentrated on the upper level, where the head is rotting. The material of “Ukrainian Pravda” appeared in the framework of the scenario of a change of power in Kiev. The interested reader can dig deeper and see the outline of the figure of the former head of the SBU Valentin Nalyvaychenko, who for a while has not yet been made centre stage, but is already promoted in the Western media. Copyright © 2016. All Rights Reserved.