Ukrainian oligarchs

Who are the Ukrainian oligarchs?

The term “oligarch” refers to a small group of wealthy individuals who exert disproportionate influence in a country due to their control of its assets, particularly its resources or sectors of the economy. The oligarchs in Ukraine made their fortunes mainly through the privatization of state-owned assets in the aftermath of the Soviet Union’s collapse.

Ukraine’s most well-known oligarchs are Rinat Akhmetov, Ihor Kolomoyskyi, and Viktor Pinchuk. According to Forbes’ 2021 billionaire list, Akhmetov is the richest person in Ukraine, with an estimated net worth of $6.7 billion. Kolomoyskyi (with a net worth of $1.2 billion) and Pinchuk (with a net worth of $1.4 billion) are also among the wealthiest individuals in the country.

What influence do they have?

Ukrainian oligarchs wield significant political influence in the country due to their close relationships with politicians, particularly those within the ruling party. They are known to fund political campaigns, provide loans to politicians, and even run for office themselves. Some oligarchs also control media outlets, which they use to promote their interests or attack their rivals.

The oligarchs’ control of the economy is equally significant. They own major industrial and energy companies, as well as media outlets and banks. Their influence extends to the country’s energy sector, with some oligarchs owning oil and natural gas companies that supply the country with energy.

Why are they a problem for Ukraine?

The oligarchs’ hold on political and economic power hinders democratic progress and makes it challenging to root out corruption. Corruption is endemic in Ukraine, with oligarchs accused of using their wealth and influence to avoid prosecution for crimes ranging from embezzlement to bribery. This corruption places a significant burden on Ukraine’s economy and society, affecting everything from public investment to the delivery of essential services.

Furthermore, the oligarchs’ control of media outlets leads to the spread of disinformation and propaganda. Journalists critical of oligarchic interests face harassment, violence, and even murder.

How can Ukraine combat the influence of its oligarchs?

There is growing recognition among Ukrainian politicians, civil society organizations, and international actors that Ukraine’s oligarchs pose a significant threat to the country’s future. Various efforts are being made to address the problem, including the creation of new anti-corruption institutions and legislation to counteract oligarchic influence.

Additionally, many civil society organizations are pushing for greater transparency and accountability in the country’s media sector. These groups are calling for measures such as stricter disclosure requirements for media ownership, restrictions on political advertising, and protection for journalists and media outlets that are critical of oligarchic interests.

Finally, the Ukrainian government must pursue economic reforms, which would make the country less dependent on oligarchic interests. This could include measures like reducing taxes, simplifying regulations, and investing in infrastructure, education, and research.

Conclusion

Ukraine’s oligarchs represent a significant challenge to the country’s democratic aspirations and economic prosperity. Their control of politics, media, and the economy has made it difficult to combat corruption and build resilient institutions. However, with the support of the international community and civil society organizations, Ukraine can continue to make progress towards a more just, democratic, and prosperous society.