The Servant of the People
Kolomoisky would have his revenge for what happened in his domain. The confrontation with Poroshenko, which was seen as humiliating for the oligarch, concluded in March 2015.
By October, the first episode of a new show, Servant of the People aired on Ukraine’s 1+1 channel, in which Zelensky played the leading role: a high-school history teacher who unexpectedly becomes President of Ukraine and is committed to fighting government corruption. 1+1 is owned by the 1+1 Media Group, one of the largest Ukrainian media conglomerates, whose owner, according to the Atlantic Council, is none other than Kolomoisky himself, giving him “significant political influence in today’s Ukraine. His media assets were used to promote the 2019 election campaign of President Zelenskyy, whose hit shows previously aired on Kolomoisky’s network.”
The Servant of the People series itself was produced by Kvartal 95, the company founded by Zelensky, whose partners were implicated in a network of offshores by the Pandora Papers. After Zelensky’s ascension, key figures of Kvartal 95 joined Zelensky’s administration. Ivan Hennadiyovych Bakanov, for example, went from head of the production studio to the leader of the Security Service of Ukraine under Zelensky.
The show literally created Zelensky’s presidential persona, effectively allowing him to build an unofficial campaign against the incumbent administration until March 2018, when a political party named after the television series was registered with the Ministry of Justice. In December 2018, Zelensky officially announced his presidential candidacy on 1+1.
Zelensky, the creation of an oligarch, campaigned for president as the character he played in a comedy series with a party named after the show to victory in 2019. During the race, Volodymyr Ariev, a political ally of incumbent President Poroshenko, posted a chart on Facebook claiming it showed how Zelensky and his television production partners were beneficiaries of a constellation of offshore firms which allegedly received millions from Kolomoisky’s PrivatBank.
The allegations were dismissed as baseless at the time, but the Pandora Papers revealed that information on several companies in the network corresponded with Ariev’s chart, the OCCRP noted.
Shortly after taking the reins, Zelensky and his Servant of the People party began firing, supposedly for inefficiency, Ukrainian ministers with reputations as anti-corruption reformers. Daria Kaleniuk, head of Ukraine’s Anti-Corruption Action Center, told the Washington Post in March 2020 that the affair sent the message that Zelensky “can fire a person who takes a risk, for doing the right things, and blame this person for inefficiency.” Kiev-based reform reporter Oleg Sukhov echoed the sentiment last year, writing that “Zelensky has consistently protected corrupt officials from prosecution and killed anti-corruption reforms.” On the other hand, when faced with a petition calling for his dismissal, Zelensky refused to fire Oleh Tatarov, his deputy chief of staff, who had been charged with bribery.
The people put on the chopping block were also the ones most likely to threaten the power of oligarchs like Kolomoisky, from whom Zelensky may have learned a thing or two.
In a 2020 press conference, he remarked that he wanted to be “remembered as the president who built good roads in Ukraine.” One of the handful of construction companies that have received a significant share of state funds for building public roads during his tenure is PBS LLC, which is linked to Skorzonera LLC, a company co-owned by Kolomoisky, according to corporate records.
PBS has been accused by Ukrainian investigators of misappropriating millions in state funds for road work. A ruling by a court in Ivano-Frankivsk Oblast noted that together with the Kolomoisky-controlled Skorzonera it is connected as part of a web of related business entities with overlapping addresses and personnel. PBS and Skorzonera had even sent their tax declarations from the same IP address.
Notably, former Customs Minister Maxim Nefyodov was one of the reformers fired by Zelensky. Nefyodov is most well-known for having created ProZorro, a system designed to tackle corruption in Ukraine’s public procurement sector.
After dismissing Nefyodov, Zelensky’s party used its majority to pass legislation that would allow the most expensive road construction project in modern Ukrainian history to be built with zero oversight, ProZorro exempt. Last June, the Kyiv Post reported how Zelensky “has doubled spending on road repairs, reaching into the pocket of the COVID relief fund and spending money Ukraine has won in international courts.” An interesting source of cash, considering that the IMF approved a multi-billion dollar aid package in 2020 “to help Ukraine to cope with COVID-19 pandemic challenges by providing balance of payments and budget support.” Is it possible that Zelensky has taken a page out of Kolomoisky’s book by taking liberties with international aid? It’s hard to say for certain.
Also unclear, is why the State Department decided to once again sanction Kolomoisky last March after he was taken off the bad list despite his own international scheming. In a press statement, Secretary of State Anthony Blinken said the reason was “due to his involvement in significant corruption.” But they were aware of that when they put him on and took him off the list the first time. Stranger still, Blinken specifically cited the years 2014 to 2015, when Kolomoisky “was involved in corrupt acts that undermined rule of law and the Ukrainian public’s faith in their government’s democratic institutions and public processes, including using his political influence and official power for his personal benefit.”
Again, this is not a revelation, considering that Nuland played a role in getting Kolomoisky off the list the first time during that period, back when Blinken served as Deputy National Security Advisor under Obama. Blinken didn’t even mention Kolomoisky’s alleged plundering in America.
Puppet of Intrigue
In 2019, just after Zelensky won his election, Kolomoisky signaled that he was prepared to pour oil over troubled waters and make peace with Russia. The civil war in eastern Ukraine has so far claimed more than 14,000 lives. The oligarch said it was enough: “They’re stronger anyway. We have to improve our relations,” he said about Russia and Ukraine according to the New York Times. But he also saw an obstacle: “People want peace, a good life, they don’t want to be at war. And you [Washington] are forcing us to be at war, and not even giving us the money for it.”
Did the U.S. sanction Zelensky’s patron, the way it did Firtash, to nudge him in the right direction?
In the latter case, the U.S. threatened to arrest Firtash for bribery to pressure Yanukovych into signing a trade deal with the EU. But the deal was, in reality, a ploy to destabilize Russia’s economy.
Despite being characterized as merely “pro-Russian,” Yanukovych, as The Economist explained, preferred “to preserve the status quo and refrain from joining either camp while continuing to milk [the EU and Russia].” And so the United States squeezed his friend to encourage Yanukovych to tilt in the desired direction. “If Yanukovych were to be persuaded to change his mind, threatening to put his sponsor Dmitry Firtash behind bars was a potent lever to apply,” wrote Cockburn. “Four days later, Yanukovych signaled he was ready to sign, whereupon Washington lifted the request to shackle his billionaire ally.”
But Yanukovych changed course and accepted a counteroffer from Moscow, a moment that became the flashpoint for a color revolution. Still Cockburn: “Street protests in Kiev followed, eagerly endorsed by Nuland, who subsequently distributed cookies in gratitude to the demonstrators.”
Yanukovych fled Kiev on February 22. Four days later, Washington renewed its efforts to arrest Firtash. “They duly did. Briefly imprisoned, Firtash posted the equivalent of $174 million bail and waited for a court to rule on his appeal against extradition.”
Whether something similar happened with Zelensky’s oligarch is another good question; likely one that won’t be answered anytime soon.
The Big Lie
The war has completely reinvented Zelensky, thus saving his scandal-plagued presidency marked by broken promises. As a Kyiv International Institute of Sociology poll showed, just 24 percent of voters supported him in late January. But now, thanks to the West’s embracement of the actor’s new persona which often places him beyond reproach, Zelensky has become the recipient of unqualified adoration and enormous amounts of international aid money. “Before the war the U.S. was sending $300 million per year to Ukraine,” said to NPR Mark Cancian, a senior adviser at the Center for International and Strategic Studies. “Now, we’re providing $100 million a day” to what was until recently considered “the most corrupt nation in Europe,” reports (of all newspapers) The Guardian.
As of today, the United States government alone is on track to deliver more than $50 billion in total aid to Ukraine. For comparison, the Department of Homeland Security estimated that Trump’s proposed border wall would cost roughly $21.6 billion. Republicans in particular, spent the first two years of Trump’s term resisting his efforts to fund and build the wall, before reluctantly agreeing to support just a fraction of what they approved for Ukraine at the drop of a hat, even challenging the patriotism of their critics.
What is the likelihood that those billions in international aid will vanish into well-connected pockets?
No one is asking these or any other important questions. Just like no one asked if it was odd when Zelensky stated that Russia would have to “kill all residents” in Ukraine’s capital to take it and get to him. That, seems the high price that the ‘servant of the people’ is willing to let Ukrainians pay; and one that Washington is happy to let Americans subsidize.
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https://www.zerohedge.com/news/2022-05-28/servant-corrupt
