ANALYSIS: Is Ukraine's richest man also its future prime minister? (03/12/06)

ANALYSIS

Is Ukraine's richest man also its future prime minister?

by Roman Kupchinsky
RFE/RL Belarus, Ukraine and Moldova Report

In mid-February, 40-year-old Rynat Akhmetov - one of Ukraine's richest men by virtue of his 90-percent stake in the Donetsk-based System Capital Management Corporation (SCM) - was interviewed on his nationwide television station, TRK Ukrayina.

The interview was conducted by Raisa Bohatyrova, a leading member of the Party of the Regions led by Viktor Yanukovych, President Viktor Yushchenko's main rival in the 2004 presidential election. Ms. Bohatyrova was elected to Parliament in 2002 after Mr. Akhmetov, who had been considered a likely candidate, stepped aside, saying he did not wish to run for public office.

Things appear to have changed.

The TRK interview was, for many Ukrainians, the first opportunity to hear the usually reclusive billionaire describe his stance on a variety of subjects. The interview was widely watched throughout Ukraine, and established Mr. Akhmetov as a man with his own vision regarding the country's future.

Mr. Akhmetov's name is seventh on the Party of the Regions electoral list for the March 26 vote. But the fact that his interview was televised nationally, rather than just in Mr. Ahmetov's native Donbas region, led some viewers to conclude that Mr. Akhmetov sounded more like a candidate for prime minister than a man merely seeking a parliamentary seat.

Mr. Akhmetov denies he is seeking the prime ministership. But some of his comments during the interview could indicate otherwise.

"We need to form a government that cares about economic growth," Mr. Akhmetov told Ms. Bohatyrova. "What does that mean? It means a government of professionals, a government which will take not only power, but responsibility, into its hands."

Mr. Akhmetov went on to define a strong Ukraine as one where the country is dependent upon neither Russia, the United States nor the European Union. He was going into politics, he added, "in order to see Ukraine enrich itself, in order that there be no poor people in Ukraine. I want Ukraine to hold in its hands the trophy for being the best country in Europe."

Mr. Akhmetov, an ethnic Tatar and practicing Muslim, was born in Donetsk in 1966. His father was a coal miner and the family often lived in poverty. Mr. Akhmetov graduated from Donetsk State University with a degree in economics.

In 1996, Mr. Akhmetov took over the presidency of the Shakhtar football club in Donetsk after the murder of its owner, criminal boss Oleksander Brahin. Around that time, he founded Donetsk City Bank (DonGorBank) and remains its majority shareholder.

In 2000 Mr. Akhmetov founded SCM, which rapidly became a very aggressive player in acquiring companies in the Donetsk region. Over the next few years, it took control of over 90 companies concentrated in the iron ore, coal, steel and energy-generation sectors. SCM also has interests in insurance and banking, food and beverage services, and hotels and hospitality.

Mr. Akhmetov's assets and personal fortune are sure to make him a major player in Ukrainian politics for years to come - regardless of whether he becomes prime minister. But his repeated assertions that a future Ukrainian government must be run by "professionals" and promote "economic growth" have only intensified speculation that the head of SCM - one of Ukraine's largest corporations - might be persuaded to head up the country's new government.

In the past year SCM has gone to extraordinary lengths to polish its image as a responsible, European-style corporation and overcome past rumors about reputed links to organized crime and unorthodox business methods.

In the summer of 2005 SCM launched a massive advertising campaign aimed at promoting the stature in Europe of Ukrainian businesses. Ads were featured in publications including the Wall Street Journal Europe, The Economist and the Financial Times, and on television networks like CNN, EuroNews and BBC World.

In order for Mr. Akhmetov to succeed in extending his popularity beyond the Donetsk region, many observers believe he will ultimately need to break ties with Party of the Regions Chairman Mr. Yanukovych, his old friend and political ally.

This could be relatively simple. Mr. Yanukovych has no financial support base of his own, and relies on SCM and the Industrial Union of the Donbas for funding. Moreover, Mr. Yanukovych is seen by many Ukrainians as a former convict - as a young man he was twice convicted of assault and battery - and not fit to run for public office.

President Yushchenko's Our Ukraine bloc has reportedly discussed a possible coalition with the Party of the Regions, but says it will not agree to Mr. Yanukovych becoming prime minister. It has, however, avoided such a categorical refusal regarding a similar deal with Mr. Akhmetov.

Roman Kupchinsky is the former director of the Ukrainian service at Radio Free Europe/Radio Liberty.

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