By Ivan Grachev
Translated from Russian by J.Hawk
Over the course of the last year, while Ukraine bled and
grew poor, Poroshenko’s firm Roshen increased its profits by a factor of 9!
This is complete nonsense. An economic miracle! It is hard
to believe, but the confectionary firm Roshen which belongs to President
Poroshenko increased its profits by a factor of 9, to 34.8 million hryvnya.
At the same time Ukraine’s economy is in pre-default state.
The country’s gold and hard currency reserves had shrunk to an absolute
minimum, from 20 billion to 7 billion dollars. Hryvnya devalued sharply, from 8
to 20 hryvnya to a dollar (up to 30 on the inter-bank exchange). Salaries and
pensions have been frozen, utility payments went way up. Everything is
collapsing. Only the president’s personal business is flourishing.
Don’t you think it’s strange?
The Ukrainian newspaper Vesti reported on this unusual
business oasis in the midst of an impoverished country, using data of the
National Securities Commission.
In case anyone forgot, here’s a little trip down memory
lane: when Poroshenko assumed the office of the President, he publicly promised
to sell off his entire business. So that nobody could blame him for lobbying on
behalf of his own firm. But…of course he did not sell it. He lied.
The Roshen Corporation is the jewel in the crown of
Poroshenko’s business empire. It is one of the biggest confectionary firms in
Ukraine. It includes a factory in Kiev, Kremenchug, two in Vinnitsa, the
Bershadmoloko dairy plant, a factory in Litino, a factory in Lipetsk (in
Russia), and a factory in Klaipeda (Lithuania).
The Roshen Corporation also owns a confectionary factory in
Mariupol. Yes, the very same Mariupol which was almost captured by the Donbass
militia in late August-September 2014. It was apparently the fear of it being
captured that forced Poroshenko to conclude the first Minsk agreement with LPR
and DPR. When the militia was once again close to capturing Mariupol in January
2015, the outskirts of the city (though of course not the Roshen factory) were
hit by Grad rockets, killing people. Poroshenko, saving his own business,
claimed that the atrocity was committed by the militia, which can only be
stopped by new US and EU sanctions against Russia and the supplies of arms to
In the end Poroshenko agreed to new negotiations in Minsk on
February 11 (with the leaders of Russia, France, and Germany). Two days before
the meeting he sent the SNBO chief Turchinov to Mariupol to try to push the
front line away from the city. Turchinov reported that he recaptured 6 towns to
the east and north of Mariupol.
Poroshenko does not care about the Debaltsevo encirclement
where 6-9 thousand Ukrainian soldiers are trapped. He is not saving them, he is
not leading them out of the encirclement, he is not hurrying to help them. He
only saves those cities where his factories are.
How else can one explain the 9-fold increase in profits, if
not through the president’s interventions on behalf of his own business? Did
Ukrainians suddenly start to buy 9 times more chocolates and candy from
Poroshenko, so as to sweeten the bitterness of the war and economic
catastrophe? Not likely.
It means that the mysterious good fortune of Poroshenko’s
firm has a simple explanation—war for some, profits for others.
J.Hawk’s Comment: Roshen is not the only corporation that
Poroshenko owns, though it is certainly the biggest one. He also owns TV
Channel 5, which naturally provides the Ukrainian public with a “fair and
balanced” news coverage… That someone like Poroshenko is considered a “friend”
and “partner” of the West is only indicative of the moral bankruptcy of the