Petro Poroshenko
Petro Oleksiyovych Poroshenko is a Ukrainian businessman and politician who served as President of Ukraine from 2014 to 2019.
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| “ | All the time, Ukraine was an oligarch country. And all the time, oligarchs were together with the authorities. And this is the first time where we, and me as a president, undertake the serious task to limit the power of the oligarchs. | „ |
| ~ Petro Poroshenko |
Poroshenko served as the Minister of Foreign Affairs from 2009 to 2010, and as the Ministry of Economic Development and Trade in 2012. From 2007 until 2012, Poroshenko headed the Council of National Bank of Ukraine.
Poroshenko served as the Minister of Foreign Affairs from 2009 to 2010, and as the Minister of Trade and Economic Development in 2012. From 2007 until 2012, Poroshenko headed the Council of Ukraine's National Bank.
Poroshenko was elected president on 25 May 2014 after obtaining 54.7% of the votes in the first round, thereby winning outright and avoiding a run-off. During his presidency, Poroshenko led the country through the Russo-Ukrainian War, pushing the insurgent rebel forces deeper into the Donbas Region in the East. He began the process of integration with the European Union by signing the Ukraine–European Union Association Agreement.
In terms of domestic policy, Poroshenko promoted the Ukrainian language, nationalism, inclusive capitalism, decommunization, and administrative decentralization. In 2018, Poroshenko helped create the autocephalous Orthodox Church of Ukraine, separating Ukrainian churches from the Moscow Patriarchate.
His presidency was distilled into a three-word slogan, employed by both supporters and opponents: armiia, mova, vira. In translation from Ukrainian, it is: military, language, faith.
As a candidate for a second term in 2019, he obtained 24.5% in the second round, being defeated by Volodymyr Zelensky. There was no true consensus in the expert community on why Poroshenko lost, with opinions ranging from opposition to intensifying nationalism, failure to stem corruption, and dissatisfaction from overlooked Russian-speaking regions.
Poroshenko is currently a people’s deputy of the Verkhovna Rada and leader of the party European Solidarity.
Outside government, Poroshenko has been a prominent oligarch with a lucrative career in acquiring and building assets. His most recognized brands are Roshen, the large-scale confectionery company which has earned him the nickname of "Chocolate King", and the TV news channel 5 kanal. Due to the scale of his business holdings in the manufacturing, agriculture and financial sectors, his political influence that included several stints at government prior to his presidency, and ownership of an influential mass-media outlet, Poroshenko has long been considered one of the prominent Ukrainian oligarchs even though not the most influential among them.
Billionaires lists rankings edit
In March 2012, Forbes placed him on the Forbes list of billionaires at 1,153rd place, with US$1 billion. As of May 2015, Poroshenko's net worth was about US$720 million (Bloomberg estimate), losing 25 percent of his wealth because of Russia's ban of Roshen products and the state of the Ukrainian economy.
According to the annual ranking of the richest people in Ukraine published by the Ukrainian journal Novoye Vremya and conducted jointly with Dragon Capital, a leading investment company in Ukraine, published in October 2015, president Poroshenko was found to be the only one from the top ten list whose asset value grew since the previous year's ranking. The estimate of his assets was set at US$979 million, a 20% growth, and his ranking increased from 9th to 6th wealthiest person in Ukraine. The article noted that Poroshenko remained one of the only two European leaders who owned a business empire of such scale, with Silvio Berlusconi of Italy being the other.
A total of €450 million is kept in an Amsterdam-based company registered in Cyprus, as a result of which his effective tax rate is 5% rather than the statutory tax rate of 18% in Ukraine. The company is likely to be worth much more, as the annual accounts published by the Dutch Chamber of Commerce only contain the book value of the shares, which is very likely to be lower than the market value. After his election, Poroshenko lost the billionaire status as his net worth dropped by 40% to reach $705 million.
Corruption edit
Corruption in Ukraine is a widespread problem; although there are signs that during Poroshenko presidency it decreased (thanks to the Prozorro digital system). Poroshenko has signed a decree to create the National Anti-Corruption Bureau of Ukraine to comply with the requirements of the International Monetary Fund. Since 2015, the Bureau has sent 189 cases to court, but no one significant was convicted. The head of the Special Anti-Corruption Prosecutor's Office reportedly coached suspects on how to avoid corruption charges.
A November 2018 EU Commission report praised some of Ukraine's reforms during Poroshenko's presidency, such as in healthcare, pensions and public administration. But judicial reforms were too slow, the report claimed, and "there have been only few convictions in high-level corruption cases so far". It also stated that too often attacks on civil society activists went unpunished.
During Poroshenko's 2019 campaign for reelection a major scandal broke out in which business partners of Poroshenko (but not Poroshenko himself) were accused of smuggling Russian components to Ukrainian defense factories at wildly inflated prices.
Critics of Poroshenko have pointed out that he removed jurisdiction of the National Anti-Corruption Bureau of Ukraine over records about off-the books payments to Paul Manafort who lobbied on behalf of former Ukraine president Viktor Yanukovych and served as campaign manager for Donald Trump during his presidential campaign. Moreover, Poroshenko stripped of Ukrainian citizenship Mikheil Saakashvili who criticized him for not fighting Ukrainian corruption.
On 11 April 2019, the High Anti-Corruption Court of Ukraine was established and Poroshenko signed the decree appointing the judges during an official ceremony.
Post-presidency edit
In the July 2019 Ukrainian parliamentary election, Poroshenko was first on the party list of European Solidarity.
Police raid at Poroshenko's headquarters and gym edit
On 20 December 2019, Ukrainian law enforcement raided both Poroshenko's party headquarters and gym. Hidden cameras and recording devices were found inside the gym's smoke detectors and security alarms. According to the State Investigation Bureau, those were allegedly secretly recording and filming Poroshenko's gym clients, of which are politicians and businessmen. Poroshenko and Ihor Kononenko, deputy head of Poroshenko's party, are both owners of said gym and could not be reached for comments. The raid was part of two ongoing criminal investigations which are focused on two concerns. First, the alleged theft of servers with classified information. Second, the alleged tax evasion and money laundering.
Derkach fragments edit
In May 2020, Andrii Derkach, a Ukrainian lawmaker who is aligned with a pro-Russian faction and has links to Russian intelligence, released edited fragments of private phone calls from several years between then-U.S. Vice President Joe Biden (the then-presumptive Democratic nominee for U.S. president, elected president in 2020) and then-President Poroshenko. Derkach used the clips to make a series of accusations not supported by the tapes. The taped conversations were consistent with official U.S. and European policy at the time and with public statements by Biden and Poroshenko. Derkach had met with Rudy Giuliani in December 2019. Derkach's maneuver raised questions about foreign interference in the 2020 U.S. elections, and echoed Russian government's interference into the 2016 election. Biden's campaign and Poroshenko's political party European Solidarity described Derkach's act (which was publicized by the Russian state-controlled network RT) as a Russian attempt to harm Biden and disparage Ukraine. In September 2020, the US Treasury Department sanctioned Derkach "for attempting to influence the U.S. electoral process," alleging he "has been an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services."
Anti-oligarch law edit
Two days after the passing of the anti-oligarch law, which seeks to curb the influence of the Ukraine's wealthiest individuals, Poroshenko sold the TV channels Priamyi and 5 Kanal.
Criminal case edit
On 20 December 2021, Poroshenko was accused of state treason, aiding terrorist organizations and financing terrorism due to allegedly organizing the purchase of coal from sepratist-controlled areas of Ukraine together with pro-Russian politician Viktor Medvedchuk. If convicted, he faces up to 15 years behind bars. Poroshenko denied the allegations, calling them "fabricated, politically motivated, and black PR directed against [Zelensky's] political opponents". On 6 January 2022, a Ukrainian court seized Poroshenko’s property. On 15 January 2022, Poroshenko announced via a video message on Facebook: "I am returning to Ukraine on a flight from Warsaw at 09:10 a.m. on January 17… to defend Ukraine from Russian aggression", despite the case against him. Following his return to Ukraine, the prosecutor's office asked a court to either remand Poroshenko in pre-trial detention for two months, or oblige him to pay bail of 1 billion hryvnia (37 million dollars), wear an electronic bracelet, remain in Kyiv, and hand over his passport. Ultimately, the court chose a third option ('personal commitment'), which is less strict than house arrest and doesn't involve paying bail. According to this commitment, Poroshenko has to submit his passport to the authorities, not leave Kyiv or the Kyiv Oblast without first receiving permission from the court or the prosecutors office, and inform the authorities if his place of employment or residence change
Panama Papers edit
Poroshenko set up an offshore company in the British Virgin Islands during the peak of the war in Donbas. Leaked documents from the Panama Papers show that Poroshenko registered the company, Prime Asset Partners Ltd, on 21 August 2014. Records in Cyprus show him as the firm's only shareholder. He said that he had done nothing wrong, and the legal firm, Avellum, overseeing the sale of Roshen, Poroshenko's confectionery company, said that "any allegations of tax evasion are groundless". The anti-corruption group Transparency International believes that the "creation of businesses while serving as president is a direct violation of the constitution".
His name was cited in the list of politicians named in "Paradise Papers" allegations.
Cultural and political image edit
Poroshenko has been nicknamed "Chocolate King" because of his ownership of a large confectionery business. Poroshenko objected to being called an oligarch, stating that "Oligarchs are people who seek power in order to further enrich themselves. But I have long fought against bandits who are robbing our country and have destroyed free enterprise".
After promising during his election campaign to sell his business assets when elected as the president of Ukraine, according to Poroshenko and Rothschild Wealth Management & Trust, since becoming President of Ukraine, he has relinquished the management of his businesses, ultimately (in January 2016) to a blind trust.
Potential implementation of martial law edit
During his speeches Poroshenko on numerous occasions has called the war in East Ukraine a "Patriotic War", yet did not initiate implementation of martial law, for which he was criticized on numerous occasions by politicians and the general public. Poroshenko noted that it was necessary to realize the consequences of martial law for the country:
It would restrict the supply of weaponry and items of dual assignment; The IMF doe not provide funds to countries that are at war. A month later the second statement was refuted by a head of the IMF Ukrainian branch Jerome Vacher, "As for the possible introduction of martial law, the IMF has no formal legal restrictions that impede continuation of mutual cooperation under such conditions. We have already worked with a number of countries where war conflicts of various intensity unfolded".
On 5 February 2015, in his interview with the Spanish El Pais, Poroshenko stated that he would introduce martial law in the event of an escalation of the situation in Donbas, but that such a decision would limit democracy and civil liberties, as well as threaten the development of the economy.
Martial law in Ukraine was introduced for 30 days in late November 2018, after the Kerch Strait incident.
Connections with Dmytro Firtash edit
In April 2015, Ukrainian oligarch Dmytro Firtash at a court session about his extradition to the United States stated that at the Ukrainian presidential election he financially supported Poroshenko, and Vitali Klitchko in the Kyiv city mayoral election.
Mikheil Saakashvili edit
On 29 May 2015, Poroshenko invited former President of Georgia and his friend Mikheil Saakashvili to help with conducting reforms in the Ukraine and granted him Ukrainian citizenship. The very next day after receiving citizenship on 30 May 2015, Saakashvili was appointed by the president as head (governor) of the Odessa Regional State Administration (see Governor of Odessa Oblast). However, on 26 July 2017 Poroshenko issued a decree stripping Saakashvili of his Ukrainian citizenship, without providing any reason. According to The Economist, most observers saw Poroshenko's stripping Saakashvili of his citizenship "simply as the sidelining of a political rival" (Saakashvili started a political party Movement of New Forces to participate in upcoming elections).
New year vacationing in 2018 edit
In January 2018, journalists from Radio Free Europe reported that during Poroshenko's New Year's vacation starting 1 January 2018 on the Maldives, there were ten people who spent $500,000 to rent separate islands and the most expensive hotel in the country. On 30 March 2018, Poroshenko submitted his income declaration. Poroshenko declared that he spent between 1.3 and 1.4 million UAH on this vacation – two times less than journalists had reported (some details about the president's vacation were classified).