Ukrainian Government Continues Arm-Wrestling With Oligarchs

The Ukrainian government continues its crack down on oligarchs and owners of companies in the power sector, with Prime Minister Arseniy Yatsenyuk supporting on Wednesday a law that would allow the use of gas distribution networks “solely on a paid basis.”

“The Government demands to endorse the relevant law, which provides for the right to use such gas distribution networks solely on a paid basis - just pay money to the country", stressed the Head of Government” Yatsenyuk said in a note published on the Government’s website, referring directly to gas companies belonging to Firtash-Lyovochkin group. 

The declaration, made after the Cabinet meeting, is in line with the consolidated trend of increasing the central government and limiting the powers of the so-called oligarchs. The country’s decision to force private companies to pay a lease for the exploitation of distribution network comes a few hours after the judiciary authorities announced to challenge tenders that gave influential businessmen control over energy companies under the Presidency of Viktor Yanukovich.

According to Reuters, the actions targeted the auctions for assets in Eastern Ukraine including Dniproenergo, now controlled by Rinat Ajhmetov’s DTEK holding company.  

If the last hours witnessed an increase in anti-oligarch rhetoric, the first signs emerged earlier this month, when President Petro Poroshenko basically forced Ihor Kolomoisky out of his office as governor of Dnipropetrovsk region. 

At this point, the only question is whether, how and when these influential businessmen will hit back.