In the late afternoon, February 23 the president Volodymr Zelensky met with the top Ukrainian oligarchs. The encounter ended around 8 p.m. and at 2 a.m. Ukraine set up a no-fly zone for civil aircraft. Over a dozen of hours later the war broke out. Some of the oligarchs made it to fly away but others stayed in the country.

We don’t know the precise subject of the conversation held at Bankowa St. in Kyiv, in the President’s Administration Office, former headquarters of the Central Committee of the Communist Party of Ukraine. One can get the impression that Zelensky knew very well that the Russian aggression was about to start in a dozen or so hours. He might have shared this information with the richest people in Ukraine. Clearly he let them decide what to do themselves.

“Dear friends” vs. “the Family”

The Ukrainian oligarchs are extremely influential. Being extraordinarily rich, they control the media and exert influence on politics, sometimes they even launch their own political parties. Before Volodymyr Zelensky and his party – “The servant of the Nation” – came to power, the majority of the Verkhovna Rada’s MPs had close ties with oligarchs. That could have been asserted in the case of at least half of them.

WAR IN UKRAINE

The oligarchs in Ukraine started looming in the ‘90s. of the previous century. Former “red bosses”, i.e. managers of large state enterprises, got rich thanks to funds coming mostly from the savings of the Ukrainian communist party or the Komsomol. They showed up in the years 1994-5 and strengthened their position during the presidency of Leonid Kuchma who had bossed the Pivdenmash plant (producing rackets, satellites and buses).

The next president, Victor Yushchenko, victor of the Orange Revolution (22nd Nov. 2004 – 23rd Jan. 2005) would support the so-called “любі друзі” that is to say, dear friends, his closest associates.

His successor, the pro-Russian Victor Yanukovych, would build up his own network, the so-called “Family” (Сім'я), combatting the old ones. And Petro Poroshenko who became head of state as a result of the Maydan Revolution (21st Nov 2013 – 22nd Feb. 2014) was an oligarch himself, owning e.g. the Roshen sweets factory as well as the Kanal 5 TV channel.

The wealthiest Ukrainian is Rinat Akhmetov from Donetsk, whose fortune, concentrated around the metallurgical and energetic industry, was valued at $15 billion, while “Forbes” is now estimating him at $4,2 billion (“Forbes” regularly updates its data). The System Capital Management Group, which he owns, runs over 100 companies operating in various industries. The largest of them is Metinvest, owning mines and foundries and being the largest Ukrainian company in general. A2 Another one is Victor Pinchuk. He was valued at $3,8 billion, today – at $1,9 billion; he owns metallurgical companies (Interpipe above all), mines but also as many as 4 TV channels and a popular tabloid. His wife Olena is daughter to ex-president Leonid Kuchma. In 2004 Pinchuk established the Yalta European Strategy organisation (YES) which would arrange annual international meetings in Yalta, moved to “continental” Ukraine after Russia’s annexation of Crimea.

On further positions in terms of richness there are Ihor Kolomoysky (at present ca. $1 billion: banks – including Prywatbank, aka PrivatBank – and petroleum processing), an important one, as he holds control over the most powerful “1+1 Media” media group (TV channels” 1+1, 1+1 International, City, 2+2); Vadym Novinsky ($1,3 billion, metallurgical companies) and Gennadiy Bogolyubov ($1,1 billion: banks).

Another one is Victor Pinchuk. He was valued at $3,8 billion, today – at $1,9 billion; he owns metallurgical companies (Interpipe above all), mines but also as many as 4 TV channels and a popular tabloid. His wife Olena is daughter to ex-president Leonid Kuchma. In 2004 Pinchuk established the Yalta European Strategy organisation (YES) which would arrange annual international meetings in Yalta, moved to “continental” Ukraine after Russia’s annexation of Crimea.

On further positions in terms of richness there are Ihor Kolomoysky (at present ca. $1 billion: banks – including Prywatbank, aka PrivatBank – and petroleum processing), an important one, as he holds control over the most powerful “1+1 Media” media group (TV channels” 1+1, 1+1 International, City, 2+2); Vadym Novinsky ($1,3 billion, metallurgical companies) and Gennadiy Bogolyubov ($1,1 billion: banks).

As of today, Poroshenko is estimated at $1,6 billion; the Ukrainian “chocolate king” or “sweet oligarch” controlled his companies even after becoming president. It was so although they were put under formally independent management.

Donbas: first crump

For all of them the current war is an obvious tragedy. Already the fights in Donbas that followed the Maidan Uprising and the fall of Yanukovych caused a great deal of trouble. And it is precisely where Achmetov’s assets were located. After the “separatists” showed up and two “pepole’s republics” emerged under the Russian patronage, the oligarch advocated Ukraine’s territorial integrity.

In August 2014 Achmetov set up his own humanitarian organisation “Pomozhem” (Let us be of help) which for many following years had helped war victims. In 2017 the authorities of the “Donetsk People’s Republic” closed down the “Pomozhem” Centre in Donetsk, located, by the way, at the Donbass Arena Stadium, belonging to Achmetov. The oligarch was trying to manoeuver between Kyiv and the “separatists” as his business was situated on both sides of the frontline. His 5-star hotel Donbass Palace in Donetsk would function as before. Achmetov-owned shopping malls would operate too, to a limited extent. But one of the most prestigious Ukraine’s football clubs, “ FC Shakhtar”, whom he owned, moved first to Lviv, then – to Kharkiv.

As for Ihor Kolomoyskyi, he became governor of the Dnipropetrovsk oblast and would combat Russian attempts of intervention there. By financing the formation of volunteer battalions such as Dnipro-1 and Dnipro-2 he also supported the fight against the “separatists” in Donbas. However, his contest against president Poroshenko who nationalised Kolomoyskyi’s Pryvatbank (decision overruled by the court) caused him to change his position. And although he suggested to build a wall on the Russian border, in 2019 he proposed a “partnership cooperation”.

Constant clashes in Donbas and Russia’s annexation of Crimea – for obvious reasons – must have caused big problems for the oligarchs. But also, quite paradoxically, they didn’t weaken their position in the country. While the state was spending huge amounts on the fight in the East, they were still getting rich. The EU-Ukraine partnership (signed in 2014) could have been awkward for them as Brussels forced Kyiv to take anti-corruption measures being unfavourable to them – but also, in the long run, favourable duty solutions or those regarding the certification of Ukrainian produce considerably facilitated the trade with EU countries and the whole world.

The war against Russia changes everything

The Russian aggression implies a total change and a gigantic threat not only to ordinary people who, as a result of bombardment, lose all their belongings, if not their lives. The oligarchs however faced a possibility of having their great fortunes shattered.

Rinat Achmetov came from Geneva to Kyiv on February 23, just a couple of hours before meeting Zelenskyy. His plane immediately returned to Switzerland. As it was announced by “Ukrainska Pravda”, it took off empty, the oligarch having stayed in Ukraine.

The situation changes hour by hour so the information from the other day may be out-of-date. Nonetheless “Forbes” quoted Achmetov who had said: “Our company is working. The employees receive their salary. All our companies focus on helping people”. And he stressed that “he was in Ukraine and not about to leave the country”.

Commenting Russian assaults on Mariupol, he pointed out: “I don’t understand, why the blockade of Mariupol continues and the people have to hide away in production halls of our factories. One cannot listen without weeping so that people are melting snow to drink water, in order to survive. So that a six-year old girl died of dehydration under the rubble”.

He reiterated that his foundation “helps the Ukrainian people survive by delivering water, alimentation, medicines as well as any other assistance we can provide here and now. SCM enterprises help the army and the territorial defence win this war”.

And interviewed by “Ukrainska Pravda” he stated: “Russia is an aggressor and Vladimir Putin is a war criminal. Ukraine has always been peaceful and never attacked anyone. Today our housing estates, cities, and infrastructure are being destroyed. Civilians are dying and suffering”. He also stressed that all his links with Russia have been severed and he has no more interests there. Moreover, at the very beginning of the war, an Achmetov-owned SCM paid taxes of 1 billion UAH (135 million PLN) in advance and, in the following days donated 600 million UAH (87 million PLN) to the army and humanitarian aid.

Ihor Kolomoyskyi, bearing three passports: Ukrainian, Israeli and Cypriot ones has stayed in Ukraine too. One of the reasons for that may be a fraud investigation conducted by the American FBI for a few years. In March 2021 the US imposed sanctions on him and his family members that, inter alia, prohibited them from entering this country. Now the oligarch is said to fear possible deportation to the US. He himself claims that his stay in Ukraine has nothing to do with this case.

At the airports of Kyiv and Dnipro (former Dnipropetrovsk) there has stayed a majority of aircraft belonging to the people linked with the Pryvat group. However since the war began there is no information of Kolomoyskyi’s attitude towards the war nor if he helps the Ukrainian army.

Vadim Novinsky, who came from Petersburg to Kyiv on February 21, did likewise. He too participated in the meeting with Zelenskyy whereas his plane managed to head for Kosice, Slovakia. He confirmed to “Ukrainska Pravda” that he was in Kyiv where his wife joined him few hours before the Russian attack. Novinsky, Achmetov’s business partner, supports him in his actions to helps the army and those affected by the war.

Nor does Victor Pinchuk who, after the encounter with Zelenskyy, left the capital right away. But his Interpipe did concetrate on helping the army, especially on strengthening the defence systems of Kyiv, Dnipro, Mykolaiv, and Novomoskovsk; the company backs up military troops by providing fuel, metal, concrete blocks; it also equipped 18 shelters in which some 8.5 thousand people can hide.

The defence, that of Kyiv above all, is also supported financially by Petro Poroshenko. He delivered pistols, machine guns, food rations as well as clothing to the soldiers.

On the other hand, the oligarch Dmytro Firtash considered as decidedly pro-Russian, now in Vienna, who was sanctioned by the Ukrainian authorities (he is also pursued by the US), handed over $100 million for humanitarian aid to these very authorities and asked for an arrival permission with a view to “defending the independence of Ukraine, its democratically elected government and fellow citizens – Liga.biznes wrote.

Among the rich that left Ukraine after the Russian invasion there were the Surkis brothers (though they don’t fit the category of oligarchs – these are much richer). Hryhoriy, a famous football activist and an MP together with his brother Ihor quit to Hungary in expensive cars carrying over $17 million – Ukrainian journalists maintain.

As one can see, the majority of Ukrainian oligarchs supports Ukraine in the war launched by Russia. And it can be argued they have two reasons for that: first, it is yet their patriotism. And the other: in Ukraine they are doing great: In a Russia-occupied country they would have been crushed by their Russian counterparts.

– Piotr Kościński
– Translated by Dominik Szczęsny-Kostanecki