State spending moves further into shadows with new law

Print version
Aug. 2, 2012, 11:57 p.m. | Ukraine — by Mark Rachkevych, Yuriy Onyshkiv

Ukrainian President Viktor Yanukovych on Aug. 1 signed a controversial public procurement law.
© Courtesy

Mark Rachkevych

Mark has been a reporter for the Kyiv Post since 2006, but joined full-time in 2009. A native Chicagoan where he was the co-founder of the now defunct Glasshouse Magazine, Mark currently is an editor of business news and still contributes stories on an ongoing basis. He is a former U.S. Peace Corps volunteer, a graduate of St. Norbert College in Wisconsin, and fluent in the Ukrainian and Russian languages.

Yuriy Onyshkiv

Ukrainian President Viktor Yanukovych on Aug. 1 signed a controversial public procurement law that will shield from public oversight tens of billions of dollars in government spending each year.

Announcement To Readers

Since 1995, the Kyiv Post has been the world's window on Ukraine. Please support the newspaper’s quality, independent journalism with a digital subscription. Subscribers receive unlimited access to all stories, archives and PDFs from the Kyiv Post's staff writers and news services.
More info.

12 months
1 month
$50.00Pay $20.00Pay
The Kyiv Post is hosting comments to foster lively debate. Criticism is fine, but stick to the issues. Comments that include profanity or personal attacks will be removed from the site. If you think that a posted comment violates these standards, please flag it and alert us. We will take steps to block violators.
gary yellando Aug. 3, 2012, 9:02 a.m.    

very , very cleaver , this thug.......make NO mistake...

{# <-- parent id goes here
bkrevel Aug. 3, 2012, 4:32 p.m.    

Party of Rats!!!!!!!!!!
How much more proof do the people need to see this crook is stealing only for himself, and his clan.
He don't give a f--k about Ukraine or the people!!!

{# <-- parent id goes here
carl Aug. 3, 2012, 7:42 p.m.    

Laws can be repealed.

{# <-- parent id goes here
bkrevel Aug. 4, 2012, 6:14 p.m.    

This is how much he cares about the people of Ukraine.......

As the Administration of the President recently reported to the media, the country will spend over 50 million UAH (13.5 million USD) on the maintenance of government residencies in Koncha-Zaspa and Puscha-Vodytsia. The residencies in question include the mansions of the current Prime-Minister, Chairman of Parliament, former presidents, as well as other deputies and officials. Whilst increasing the financing for maintaining bureaucrats' mansions, the President and Prime-Minister of Ukraine have also announced continued cuts to social expenses; requesting that the citizens of Ukraine understand that these are unavoidable due to the state budget deficit(1).
At the same time this year’s budget provides more money for deputies mansions than for the development of local self-administration projects (26 million UAH / 3.2 million USD). The ‘mansion budget’ is also equal to the sum designated for the construction of housing for soldiers and civil servants(2). Having secured the financing for their mansions, officials seem unconcerned about the fact that in 2012 the minimum living income has been set at only 1017 UAH (127 USD) per person per month and minimum wage is 1073 UAH (134 USD) per person per month(3).
It remains to be seen whether Ukrainians will bear the cuts to social benefits in the context of uninterrupted financial support of state officials' villas.


{# <-- parent id goes here
blueriver Aug. 6, 2012, 12:07 a.m.    

Yanukovych is a big Idiot....supported by his Donesk mafia...he lost in 2004
and cried like a big Baby for 6 years...booo hoo...

In 2010 He promised to Give Crimea to Putin and GUESS WHAT...YANUKOVYCH WON THE 20120 ELECTION

{# <-- parent id goes here
Phill M Aug. 6, 2012, 7:10 p.m.    

So... two years of talk about making the government more transparent was...? Well, it was what we knew it was... lies. Yes, we had hope that there will be change (we always have hope).

So, what will happen now? Government owned businesses will overbid on projects involving companies owned 'privately' by government members (and vis-versa), enriching both (well, enriching the elites who run the companies), and costing the public who has to foot the bill without really knowing how much the bill is.

"What part of the population is involved in corruption? Experts say not more than 5%. At whose expense do these 5% live? At the expense of the other 95% who pay taxes," Yanukovych said.

Yanuk seems to want the 95% to pay more. Obviously he's not part of the 95% who has to pay, and doesn't think the 5% are getting enough.

{# <-- parent id goes here
Rascal Aug. 8, 2012, 1:52 p.m.    

“Privately-owned companies don’t have to conduct tenders, so this bill levels the playing field for government enterprises. This will help improve the performance of our companies,” said Yefremov.
Why bother putting in the (government-owned) in the text? It's really what these people believe, "L'état c'est nous" therefore state-owned companies really are "their" companies. Nothing more need be said.

{# <-- parent id goes here


© 1995–2014 Public Media

Web links to Kyiv Post material are allowed provided that they contain a URL hyperlink to the material and a maximum 500-character extract of the story. Otherwise, all materials contained on this site are protected by copyright law and may not be reproduced without the prior written permission of Public Media at
All information of the Interfax-Ukraine news agency placed on this web site is designed for internal use only. Its reproduction or distribution in any form is prohibited without a written permission of Interfax-Ukraine.