The “DPR government” includes at least two people with obvious ties to the “masters of Donbass” and the fugitive “Family.”
A week ago, the Verkhovna Rada adopted laws on the specifics of local self-government in certain districts of Donbas and an amnesty for separatists. They were introduced to parliament and dubiously pushed through by President Petro Poroshenko himself.
The adoption of documents, also known as the law on special status, was the result of the Minsk Protocol on a ceasefire with militants.
Let's not dwell on the legal casuistry. You can read the documents themselves here and here. It's worth noting that with these laws, President Poroshenko and parliament grant exclusive rights to the separatist region, simultaneously creating a dangerous precedent.
But it's important to understand who exactly will rule Donbass under extremely favorable conditions: with its own police force, prosecutor's office, courts, and a stable budget flow.
INSIDER has already published an investigation into the connections of the so-called "Prime Minister of the DPR," Alexander Zakharchenko, who signed the Minsk Protocol on behalf of the separatists. Previously, this man worked in organizations close to associates of businessman Rinat Akhmetov and members of parliament from the Party of Regions.
Zakharchenko took over the Donetsk separatists on August 8, replacing Moscow-based PR man Alexander Borodai. Some time later, Borodai's comrade, Igor Strelkov (Girkin), one of the symbols of separatism, left Donetsk. As sources in the security forces explained, the reshuffle in the "DPR" was no accident. "The 'Orthodox' were replaced by 'Donetsk' people in anticipation of negotiations and a ceasefire," the source noted.
But three days before Zakharchenko's appointment, another low-profile appointment took place in the "Donetsk government." The "DPR" got a "Minister of Education and Science." Igor Vladimirovich Kostenok.
"DPR Prime Minister" Alexander Zakharchenko (far left) and "DPR Education Minister" Igor Kostenok (far right).
In the Ukrainian media, the "DPR Ministry of Education" was remembered for seizing Donetsk National University. Later, on September 19, militants dispersed the Donetsk National University's Ukrainian History Department.
Donbas News reported that during the seizure, the "Minister of Education" declared that the university would be a branch of the Russian State Humanitarian University. Kostenok also issued a statement declaring that the Ukrainian language would no longer be mandatory in Donbas schools.
As INSIDER has discovered, a member of the separatist "government" has partnerships with people close to Ukraine's richest man and the "Family" of fugitive President Viktor Yanukovych.
Public administration theorist
In early September, the Russian news agency RIA Novosti published biographical profiles of separatist leaders in Ukraine. Among them was a profile of Kostenok.
«РИА Новости», news agency
Igor Vladimirovich Kostenok, Minister of Education and Science of the DPR, has served as an associate professor in the Department of General and Administrative Management at the Donetsk State University of Management since 1994. He has been a board member of the European Choice public organization since 1996. Since 2007, he has served as Deputy Director of the Eastern Regional Center for Innovative Development, a state-funded organization. He is also the Acting President of Uglemash Technology Park, a private enterprise. He specializes in developing strategic development plans for local government and training specialists for local governments. On August 5, 2014, Igor Kostenok was confirmed as Minister of Education and Science of the DPR.
A more detailed study of Kostenok's biography revealed that he rose to the rank of professor in the Department of General and Administrative Management at the Donetsk State University of Management. Interestingly, in May 2013, the professor gave a lecture on strategic management to students along with Shakhtar Donetsk player Dmytro Chygrynskyy.
According to the Vernadsky National Library's catalog, that same year, Kostenok defended his doctoral dissertation in public administration. The topic, one might say, was a specialized one: "Sociocultural Components of the State Mechanism for Promoting the Institutionalization of Local Self-Government."
In the same directory, you can find an interesting scientific article by Kostenok, also from 2013. In this publication, the current "Minister of Education of the DPR" presented the results of his own social research in the Proletarsky and Budyonnovsky districts of Donetsk.
"The overwhelming majority of respondents are characterized by an extreme level of passivity and complete exclusion from the public life of the region," stated one of the current leaders of the "people's militia."
But, as it turns out, the public administration theorist is no stranger to business.
Masters of Donbass
According to the Ukrainian register of legal entities, Kostenok owns a stake in two LLCs – Youth International Center "Donbass" и Donbass Coal GroupHe is also listed as the acting director of the CJSC. Uglemash Technology Park.
According to the SMIDA stock market disclosure system, in the third quarter of 2013, 80% of Uglemash's shares were owned by state-owned institutions and enterprises. Two other 10% stakes were held by PJSC Druzhkovka Machine-Building Plant and PJSC Donetsk Energy Plant.
Both of these enterprises are controlled by the Mining Machines group of businessman Rinat Akhmetov.
Also of great interest are Kostenok's partners in firms where the separatist "Minister of Education" is a co-founder.
For example, Donetsk City Council member Ivan Gvetadze also owns a stake in the company "MMC Donbass." This Donetsk businessman has repeatedly featured in tender news.
For example, Ivan Gvetadze and his brother Teimuraz own the company "City Construction." In 2010, this company won contracts to build an information and library center for Donetsk National Technical University. The project cost the state 79 million hryvnias.
According to the Nashi Groshi portal, the Gvetadze brothers are partners of Irina Safiullina (Triol-Auto LLC), the wife of former Minister of Youth and Sports Ravil Safiullin.
In May 2012, Forbes reported that in the 1990s, Ivan Gvetadze, along with businessman Alexander Shvedchenko, who was murdered in 1996, financed the Shakhtar football club. According to the publication, they were the ones who offered the club's ownership to Akhat Bragin, director of the legendary firm Lux, also known as Alik Grek.
It's worth noting that in 1994, the aforementioned Ravil Safiullin became Shakhtar's vice president. Akhat Bragin was killed in 1995 in an explosion at the football club's stadium. And in 1996, Rinat Akhmetov became Shakhtar's president.
"Family" and the KGB
Kostenok also has difficult partners in his second company, Donbass Coal Group. For example, its co-founder is Donetsk resident Anna Leonidovna Bondarenko.
This woman is also one of the founders of the Donetsk-based public organization "For a Healthy Country." INSIDER mentioned this organization back in May 2014. Nina Ivanovna Bondarenko and Vadim Vyacheslavovich Bondarenko are also listed as members.
Nina Ivanovna owns a stake in the company "PKF Rekkom," whose director in 2008 was the self-proclaimed "people's governor" of Donetsk, Pavel Gubarev. This figure was the catalyst for the outbreak of eastern Ukrainian separatism that spring.
Vadym Vyacheslavovich headed the Ministry of Revenue and Duties in Donetsk Oblast from August 2011 until the fall of Viktor Yanukovych's regime. His predecessor in this post was former Revenue and Duties Minister Oleksandr Klymenko, a top manager of the fugitive "Family."
Moreover, a few days before the bloody events in central Kyiv that led to the fall of Viktor Yanukovych's regime, Bondarenko was appointed advisor to Minister Klymenko.
Interestingly, in 2004, Vadim Bondarenko was the executive director of the regional branch of the Association for Social Support and Protection of Former Employees of the Ukrainian Special Services "Commonwealth".
This association was founded back in the 90s by a group of officers from the former KGB of the Ukrainian SSR. Until December 2004, the "Commonwealth" association was headed by the late General Georgiy Kovtun, the first head of the Main Intelligence Directorate of the Security Service of Ukraine. Under Soviet rule, he held the position of deputy head of the KGB of the Ukrainian SSR.
Currently, Sodruzhestvo is led by Sergei Grigorievich Sinchenko, a former KGB and SBU officer in Luhansk and the surrounding region. He served as a member of parliament four times, including as a member of the Communist Party and the Yulia Tymoshenko Bloc.
But Vadim Bondarenko is the head of another Donetsk-based public organization, "European Choice." According to Russian media reports, the "DPR Education Minister," Kostenok, is a board member of this organization.
According to the register of legal entities, in the early 2000s, the co-founders of "European Choice" were Vadim Bondarenko (former tax official), Igor Kostenok (the "Minister of Education of the DPR"), and another Bondarenko, Eduard Nikolaevich.
Alexander Klimenko and Vadim Bondarenko.
The latter was appointed CEO of the then-state-owned Donbassenergo in May 2012, and remains its CEO to this day. As is known, in the summer of 2013, 60% of the shares of the formerly state-owned energy generating company were sold to Energoinvest Holding, owned by businessman Igor Gumenyuk.
It's worth recalling that in the 2000s, Igor Gumenyuk was the CEO of the well-known Donetsk-based company "ARS," a company friendly to Rinat Akhmetov's group. According to popular media reports, the name "ARS" stands for "Alik, Rinat, Samson."
ARS's main shareholder is Sergei Kiy, a Party of Regions deputy close to Akhmetov. Kiy had indirect ties to the structures where "DPR Prime Minister" Alexander Zakharchenko worked.
But the most interesting thing is that Igor Gumenyuk's brother, Alexander, heads the state organization "Donetsk Regional Center for Investment and Development." His deputy there is the "Minister of Education of the DPR." Kostenok was even featured in the State Agency for National Projects' March 2013 newsletter.
In addition, the head of Donbassenergo, Eduard Bondarenko, was listed as the director of the Donetsk Production and Transport Company Ugoltrans.
As Forbes reported, this company was founded in 2002 by six entrepreneurs from the Donetsk and Luhansk regions. Among them was Vitaly Belyakov, who has headed the Donbas Settlement and Financial Center since 2011.
DRFC controls five mining and processing plants in Donbas, which have been linked to the eldest son of fugitive Ukrainian President Oleksandr Yanukovych. DRFC enterprises supplied coal, in particular to Donbassenergo, receiving state contracts worth billions of hryvnias. Media outlets claimed that the notorious "kopankas," allegedly controlled by the "Family," were involved in this scheme.
***
It is known for certain that negotiations regarding the future organization of life in Donbass are being conducted with the participation of the existing “DPR government.”
This “government” includes at least two people (Alexander Zakharchenko and Igor Kostenok) who have obvious connections to the entourage of the country’s richest man and the fugitive “Family.”
It is highly likely that this same "government" will hold local elections and form new authorities in Donbas, which, according to the adopted law on special status, will not be re-elected for the next three years.
These authorities will receive a secure flow of funds from Kyiv for the region's survival and restoration. And they will manage this flow. In other words, they will do what they love.
Sergey Shcherbina, Insider
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