Oleg Svinarchuk (Gladkovsky)
It's very convenient to hold a government position under one name and conduct business under another, especially while holding a diplomatic passport from a tropical offshore jurisdiction. If you're caught doing something and charged, you can take advantage of the confusion and take the first flight to any safe country in the world.
Accounting genius
Oleg Vladimirovich Svinarchuk was born on February 5, 1970, in Chudniv, Zhytomyr Oblast. His official biography is too brief for a prominent businessman and high-ranking government politician. It's possible that in 2014, when changing his last name, Svinarchuk-Gladkovskyi "erased" most of the details of his past, adding something from the virtual life of an exemplary Ukrainian entrepreneur. And this was done so hastily and clumsily that the old and new biographies ended up intertwined into a single contradictory misunderstanding. Combined with the facts uncovered by journalists, this raises many puzzling questions!
In 1988, Oleg Svinarchuk joined the Soviet Army during the spring draft, returning home in 1989, having served out the full 730 days in boots he was known for. He never spoke about the reason for his early discharge. In late 1989, Svinarchuk found himself in the Lazorevsky District of Krasnodar Krai, where he found work at the "Reserve" cooperative—as recorded in his biography, as a "first-category economist." The authors of the new version of Svinarchuk's biography likely were unaware that "first-category economist" is not a job title, but a professional qualification awarded to individuals with a higher education in economics and seven years of work experience in the field. Therefore, eighteen-year-old Oleg Svinarchuk could not possibly have had a degree in economics, much less many years of experience.
In 1990, Svinarchuk moved to Kyiv, where he became a "transport worker" (i.e., a loader) at the Argus cooperative. And in 1992, he found a job at the Opaki agricultural firm, again as an economist! The secret of this brilliant self-taught accountant was that his full title was "Deputy Director for Economics," something his current official biography doesn't reveal. A person in this position doesn't tire themselves out with preparing accounting reports; they "keep the cash register" and sign payment orders.
In 1993, according to Svinarchuk's "life," he graduated from the Kyiv Highway Institute and received a degree in engineering "in transportation organization and vehicle management." However, to achieve this, Svinarchuk would have had to have enrolled in the institute back in 1989, and according to his new biography, he wasn't even in Kyiv until 1990. This begs the question: how did he manage to do it?
Poroshenko clan
Back in 1989, Petro Poroshenko, a graduate of the Faculty of International Relations at Kazan State University (Read more about it in the article Petro Poroshenko: Biography and the Truth About Ukraine's "Chocolate King") Remaining in his department as a graduate student, he founded the joint venture "Respublika," which supplied cocoa beans and spices to the USSR and exported metal. In 1991, he transformed his business into JSC "Birzhevoy Dom Ukraina" (Exchange House Ukraine): Petro Poroshenko became its general director, and a year later, he appointed his father, Oleksiy Ivanovich Poroshenko, as his deputy. In 1993, the Poroshenkos, father and son, took charge of their new company: the Ukrainian Industrial and Investment Concern (ZAO "Ukrprominvest"). And in 1995, Poroshenko's "Ukrprominvest" already included JSC "Avtotransservis," whose director was Oleg Svinarchuk.
Details of their acquaintance remain on the pages of Svinarchuk's previous, "worn" biography. It is known that Poroshenko and Svinarchuk were introduced back in 1993 by their mutual friend Igor Kononenko.Read more about it in the article Igor Kononenko, the President's Army Buddy), who is currently the president's "grey cardinal." The connection between Kononenko and Svinarchuk, however, is unclear: for example, it was claimed that they were classmates. However, Kononenko graduated from the Kyiv Automobile and Road Transport Institute in 1989, when Svinarchuk should have (in theory) only just submitted his application.
Nevertheless, Oleh Svinarchuk not only joined the Poroshenko clan but also became a co-owner of Ukrprominvest CJSC, owning his share in the form of Avtotranservice JSC, which later transformed into other companies. He also brought his alleged classmate, Oleh Zimin, into the team. The degree of trust between father and son Poroshenko in Oleh Svinarchuk is demonstrated by the fact that in 1995, he became vice president of Ukrprominvest CJSC, while Oleksiy Ivanovich Poroshenko, who had previously held that position, took over the company.
It suddenly turned out that Oleh Svinarchuk was not only an economic genius but also an engineering genius: it was his idea to buy KamAZ trucks from Russia without engines (in 1993, the KamAZ engine shop burned down) and install MAZ engines in them. He also conceived the idea of purchasing chassis and engines from Izuzu and then installing Ukrainian bodies on them—thus the Bogdan buses were born. These ideas, in fact, defined the core policy of Ukrprominvest's automotive business: importing complex components (chassis, electronics) and adding their own body parts, stamped on equipment from privatized Ukrainian auto factories. Unfortunately, this approach focused on the production of "budget-class" vehicles with minimal production costs, which were far from popular with Ukrainians. But the main priority of Poroshenko's business empire has always been profit, not product quality.
Honorary Consul
In 1998, when Petro Poroshenko won a seat in the Verkhovna Rada on the SDPU(o) list, a remarkable event occurred: Oleh Svinarchuk became the Honorary Consul of the Republic of Seychelles in Ukraine. According to him, this was merely a modest gift, an insignificant "souvenir" from a small resort country to its regular tourist. Svinarchuk, of course, remained silent about the fact that the Seychelles are not only a resort but also a world-famous and highly specialized offshore zone.
In fact, an Honorary Consul isn't a "souvenir" title, but a very functional diplomatic position. "Honorary" in this case means "freelance," meaning Honorary Consul Oleh Svinarchuk doesn't receive a salary from the Ministry of Foreign Affairs but works independently. He also holds a diplomatic passport from the Seychelles, which grants diplomatic immunity and free entry and exit to most countries. Furthermore, although an Honorary Consul doesn't deal with interstate policy, their prerogative is economic relations and cultural and tourist ties. And in this case, it was the Honorary Consul of the Republic of Seychelles who resolved the issue of offshore companies for Ukrainian businesses. More precisely, private intermediary offices operate under his auspices, directly handling the offshore companies. There's one more "but": honorary consuls aren't appointed just anyone; they're usually influential businessmen or their assistants with strong business ties to the representing country. Therefore, it's safe to say that Oleh Svinarchuk and the Seychelles weren't just connected for his summer vacation.
Seychelles offshore zones have a unique feature: they are the lowest-interest offshore zone in the world (from 0 to 1,5%), requiring no documentation (only the company director's passport) or financial reports from their clients. In turn, the Republic of Seychelles guarantees clients complete confidentiality, even if they are subject to inquiries from international organizations. This has made the Seychelles an offshore haven for many financial scammers and outright criminals from around the world, giving it a somewhat unsavory reputation. In many Western countries, connections to Seychelles offshore zones are cause for suspicion and can create certain problems. This is why, economically, Seychelles offshore zones are considered a good place for withdrawing, laundering, and storing money (like a pirate chest), but a poor location for running an active, publicly traded business. This is also why Ukrainian oligarchs prefer to work with more "white-hat" offshore zones: Panama, the Virgin Islands, Cyprus, and the like. Well, and the “great” and “honest” President of “All Ukraine” Petro Poroshenko...
Ukrprominvest's interest in offshore companies at the time may have been fueled by the company's expansion: in 1997, it acquired a 29,5% stake in the previously bankrupt Kyiv shipyard "Leninska Kuznya," awarding the idle enterprise a contract to build five vessels for the Dutch company Robo International BV. Oleh Svinarchuk was directly in charge of all this. However, the sudden rise of the company, which became part of Poroshenko's business empire, was made possible not so much by the orders as by a clever tax evasion system that made the plant's operations highly profitable.
Piranhas of the automobile market
Until 2003, Ukrprominvest-Auto, a business Svinarchuk managed indirectly, focused primarily on importing and assembling VAZs, and on small-scale production of Bogdans using Izuzu chassis and engines. With the resurgence of demand for new cars, Svinarchuk and Poroshenko planned to open an assembly plant with a capacity of 70,000 vehicles per year. They also created the Bogdan holding company—which Svinarchuk would later head—and a separate bank, Mriya, through which Bogdan's financial operations would be managed. A falling out between Poroshenko and Prime Minister Yanukovych thwarted the plan. The plant was planned to be built with state investment, under the "domestic automaker support" program: Svinarchuk and Poroshenko were unwilling to invest solely their own capital, preferring to manage others' money through their own schemes. However, the "Donetsk people" began to push other oligarchic groups away from "sawing up the budget." Poroshenko eventually parted ways with Kuchma, joining Yushchenko's opposition team. Svinarchuk, who stayed out of politics, focused entirely on business. The result of his work by the end of 2004 was an increase in the issuance of Bogdan notes and a crisis at Mriya Bank, from which depositors began fleeing en masse.
Everything changed after the first Maidan, when Poroshenko became one of President Yushchenko's "beloved friends" and headed the National Security and Defense Council. Thanks to his lobbying for "support for domestic automakers," huge duties were imposed on finished imported cars: most foreign cars, primarily mid- and high-end models of well-known brands, became dramatically more expensive. Ukrprominvest-Auto, which imported relatively inexpensive compact cars (including VAZs) in parts and assembled them under new names, rejoiced: the Ukrainian car market was falling into its lap. The fact that he was simultaneously flooding it with cheap "bad apples" didn't bother Svinarchuk or another Ukrainian auto oligarch, Tariel Vasadze, the owner of UkrAvto.
"Bogdan-2110", an exact copy of the VAZ-2110
In 2005, Svinarchuk's Bogdan became a corporation, and he embarked on a grand project to transform the Cherkasy Rotor plant into a modern auto assembly plant. The project attracted over half a billion dollars in private and public investment. Poroshenko himself invested another 100 million, becoming a co-owner of the plant with Svinarchuk, though his stake was not disclosed. However, the plant's opening took place just months before the 2008 crisis, which decimated Ukraine's auto market. Bogdan's debts to creditors reached a billion dollars, but Svinarchuk's first priority was to pay off Poroshenko, buying out his stake in Bogdan in exchange for his shares in Roshen and several other Ukrprominvest companies. Cherkasy Bus was then sold to pay off the debts, and several loans were restructured through bonds—ultimately, Svinarchuk became the majority owner of Bogdan.
At the same time, in an effort to protect himself from new risks, Svinarchuk transferred part of Bogdan to a Virgin Islands offshore company. Why the Virgin Islands and not the Seychelles? Because Bogdan Corporation's production depends on imported components and requires constant foreign trade with renowned global companies, and a connection to the Seychelles offshore company could create unnecessary operational problems for Bogdan. Interestingly, another member of Poroshenko's clan, his longtime business partner Serhiy Zaitsev (Deputy CEO of Roshen), also prefers the Virgin Islands offshore company. He owns Intraco Management Limited, a company registered in the Virgin Islands.
The Armory Baron
During the 2014 snap presidential elections, Oleh Svinarchuk headed Poroshenko's campaign headquarters in the Cherkasy region and also oversaw campaign headquarters in the Kherson, Volyn, and Khmelnytskyi regions. After his victory, Poroshenko mobilized his business partners into government, and by presidential decree No. 646/2014 of August 13, 2014, Oleh Svinarchuk was appointed head of the Interdepartmental Commission on Military-Technical Cooperation and Export Control Policy. Essentially, the president tasked Svinarchuk with overseeing all of Ukraine's military exports—a rather lucrative job at a time when the country's automobile market was practically dead, and the Bogdan Corporation could be mothballed.
However, Oleh Svinarchuk also owns other businesses, including the Kyiv sports and fitness complex "Monitor," which he co-owns with Ihor Kononenko and Petro Poroshenko. This club is located at 29a Elektrikov Street in Kyiv, along with many other companies owned by Svinarchuk, Kononenko, and Poroshenko. The Honorary Consulate of the Republic of Seychelles is also located there. In April 2016, Kyiv Mayor Vitali Klitschko (Read more about it in the article Vitali Klitschko: The Dark Past of the "Looking Tomorrow") issued a special order on the high-quality repair of the road from Naberezhno-Rybalskaya to Elektrikov Street.
Upon entering power, Oleh Svinarchuk's first act was to change his surname to Gladkovsky (taking his mother's maiden name), which simultaneously reduced and altered the details of his past, causing the aforementioned inconsistencies and contradictions. It was said that Svinarchuk-Gladkovsky wanted to enter Ukrainian politics with a fresh face and a clean slate. However, it is unlikely that a serious businessman would engage in such eccentricity without a specific need. After all, it is worth remembering that all his businesses are registered under the Svinarchuk name, and it is also on his diplomatic passport as the Honorary Consul of the Seychelles. Gladkovsky, on the other hand, appears as a high-ranking politician: on February 7, 2015, the president promoted him to the position of Deputy Secretary of the National Security and Defense Council, leaving him in charge of arms exports. Furthermore, it is claimed that Svinarchuk was also appointed to "keep an eye" on the Secretary of the National Security and Defense Council, Oleksandr Turchynov (Read more about it in the article Oleksandr Turchynov: Skeletons in the Closet of Ukraine's "Bloody Pastor").
Gennady Korban stated that Svinarchuk-Glakovskyi is living a double life: after coming to power, he continues to engage in business, like other members of Poroshenko's team, who defend each other's interests. Specifically, by order from Kyiv, the tender for the production of Yuzhmash trolleybuses for Dnipropetrovsk (45 million hryvnias were to be allocated from the state budget) was cancelled, and the city was instead offered to purchase trolleybuses from Bogdan.
Read about the characters in the diagram above in the articles:
Vitaly Yarema, "Honest Cop" and Sergei Dumchev's godfather
Volodymyr Groysman: Dark Spots in the Biography of the Speaker of the Verkhovna Rada
Volodymyr Demchyshyn: Compromising Facts from the Life of the Minister of Energy
For other characters, see links above.
However, the recent scandals involving the presidential entourage and personally Deputy Secretary of the National Security and Defense Council Oleh Gladkovskyi did not arise from the lobbying of Bogdan owner Svinarchuk's business, or even from his offshore companies. Reports have surfaced that Gladkovskyi-Svinarchuk has begun "moonlighting" on Ukrainian military contracts—both export and import. The former utilizes a tried-and-true scheme of paying fees to a company providing unspecified "services." Specifically, $9 million went to Global Marketing FZE, $600 to Triangle Group Incorporated, and on May 20, 2015, Ukrinmash signed a contract with Fuerteventura Inter LP, under which it was to receive $2 million for "services" for a deal selling ammunition to the UAE. In deals to purchase imported military equipment and supplies for Ukraine, intermediary companies are involved, significantly inflating the cost of tenders and depositing the difference into their own accounts – with the money disappearing into the sands of tropical offshore zones.
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Overall, it seems that Gladkovsky-Svinarchuk is simply fulfilling the wishes of his patron, Petro Poroshenko, and is copying him in everything. "Waltzman" has become "Poroshenko." "Svinarchuk" has become "Gladkovsky." However, this hasn't changed their inner essence.
Sergey Varis, for SKELET-info
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