Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search
 

Purveyor

(29,876 posts)
Fri Apr 24, 2015, 01:33 PM Apr 2015

Ukraine's President Takes on Its Richest Man

Apr 24, 2015 10:34 AM EDT
By Leonid Bershidsky

A month after Ukrainian President Petro Poroshenko ostensibly defeated billionaire Igor Kolomoisky in a battle for control of a state-owned energy company, another oligarch is in his crosshairs: Ukraine's richest man, Rinat Akhmetov.

For the last couple of days, hundreds of people who say they are miners have flooded the government quarter in the capital, Kiev, banging their helmets on the pavement, demanding the payment of salary arrears and the firing of the energy minister. Poroshenko's allies say Akhmetov has engineered the protests as part of an effort to keep control over the assets he amassed under deposed President Viktor Yanukovych.

Akhmetov was a close ally of Yanukovych, helping bring him to power in 2010 and benefiting hugely from government contracts and privatizations afterwards. Bloomberg Billionaires estimates his fortune at $7.2 billion. The source of that fortune is System Capital Management, a huge diversified holding that includes steel mills, coal mines and power plants, as well as investments in media, telecommunications, financial services and real estate.

Perhaps because he has so many assets in Ukraine, Akhmetov didn't flee to Russia with Yanukovych and many of his allies after last year's "revolution of dignity." Unlike fellow oligarch Kolomoisky, however, he's done little to fight the pro-Russian insurgency in his eastern Ukrainian power base, seeking only to keep most of his factories running. That requires maintaining a working relationship with Russia and its eastern Ukrainian proxies, which, in Kiev, is a badge of disloyalty.

Given the delicacy of Akhmetov's balancing act, losses are inevitable. Last year, the revenue of steel holding Metinvest, SCM's most valuable asset with production facilities mostly in east Ukraine, dropped 18 percent and profit fell 59 percent. That, and the effect of the festering conflict on the entire group's results, led Bloomberg Billionaires to revise Akhmetov's fortune downward by $1.1 billion on April 8.

more...

http://www.bloombergview.com/articles/2015-04-24/ukraine-s-president-takes-on-its-richest-man

4 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

newthinking

(3,982 posts)
1. This is more politics as usual. Western Oligarchs are in, Eastern Oligarchs out
Fri Apr 24, 2015, 08:53 PM
Apr 2015

Rinat Akhmetov has been providing aid to the civilians in Eastern Ukraine.

Akhmetov was from party of regions.

Helping people in the East and being a member of the wrong party. That is what this is about.

Poroshenko himself is an oligarch?

newthinking

(3,982 posts)
4. That is one location. There are many State owned mines affected. From Euronews:
Fri Apr 24, 2015, 10:36 PM
Apr 2015
Ukraine miners demand help for their industry in Kyiv protest

http://www.democraticunderground.com/?com=post&forum=1016&pid=121002

Amid a country in conflict, their industry is in crisis…and Ukraine’s miners are making themselves heard.

From the west and war-torn east, hundreds gathered in Kyiv – breaking through police lines in a protest near the president’s office and banging their helmets on the ground.

Our correspondent in the Ukrainian capital, Dmytro Polonsky, said: “Miners are demanding the restitution of their mines, an increase in salaries, restoration of state subsidies and the dismissal of the Energy and Coal Minister Volodymyr Demchyshyn who has said at least three state-owned mines must be closed.”

Safety is a major concern. Just last month 33 miners died
in a methane gas explosion in the east.

Denouncing security standards underground, one miner told euronews that they’re not in a position to buy equipment for tunnelling or mining.

“We are risking our lives to give coal to the state and earn money for our families,” he said.

“How do I explain to my four-year-old child that I can’t buy food for him?”

But it is hard to see where the money will come from.

Reliant on international aid to avoid bankruptcy, Ukraine is facing near economic collapse and a plunging currency as well as the conflict with rebels in its east.
Latest Discussions»Issue Forums»Editorials & Other Articles»Ukraine's President Takes...