A residential block in the Petrovsky District in the west end of the city of Donetsk was recently hit by alleged Ukrainian military shelling / credit: Fergie Chambers
DONETSK, DONETSK PEOPLE’S REPUBLIC—The Russian “special military operation” in Ukraine reached its 90th day and the Western press continues to be inundated with unverified claims of war crimes Russian forces allegedly have committed. Accusations have been lodged against the Russian military for mass graves in Bucha, a narrative which has been widely accepted in North Atlantic Treaty Organization (NATO) countries. Despite requests from the Russian government and India, no independent inquiry has yet to take place.
Just four days ago, Newsweek published claims of Russian soldiers “targeting kids’ bedrooms” with explosives. Nestled far beneath the fiery headline is a soft disclaimer: “However, Newsweek has not independently verified any of the claims regarding children and explosives, which come from Ukrainian sources.” Such is the state of affairs in the U.S./EU/NATO aggression against Russia.
Perhaps these deluges of outrage would appear more sincere, if the well-documented plight of the civilians of the eastern Ukrainian breakaway region of Donbass had received passing mention in any mainstream Western outlets. In the Donbass region, two oblasts (provinces) known as Donetsk and Lugansk proclaimed their independence from Ukraine in 2015, shortly after the neo-Nazi-infected Ukrainian military began attacking their mostly Russian populations.
For eight years, war has raged in Donbass, and it has included an endless campaign involving shelling civilian areas, in violation of the Minsk Agreements between the Donbass republics, Ukraine and Russia. As of May 13, the Office of the Ombudsman in the Donetsk People’s Republic (DPR), put the total civilian death toll in DPR at 7,321, including 105 children. More than 14,000 people have been killed in the Donbass region since 2014, according to the International Crisis Group. The Ukrainian military did not respond to Toward Freedom’s multiple attempts to ask about attacks on civilians in Donetsk.
One shell hit this storefront in the building supply area of the Sokol Market / credit: Fergie Chambers
‘We Used to Hide in the Basement… Now, We Don’t Bother’
Toward Freedom sent this reporter to Donbass for nearly a month, and it took less than one day in Donetsk to witness the effects of Ukrainian forces purposely shelling civilians. That first afternoon, April 28, a local Telegram channel devoted to “online information about the current shelling situations by Ukrainian Armed Forces” reported the Sokol Market in the western Kirovsky District had been shelled. At 11:40 a.m., among the market’s busiest hours, Ukrainian forces—just miles away in Krasnogor—fired 10 BM-21 Grad rockets, or Soviet rockets. Initial reports on the scene were two dead, including a local high school teacher, but this has since been updated to five. This reporter arrived at 1 p.m., at which point the wreckage was apparent and two bodies remained on the ground.
No military presence was seen in this neighborhood—no base, no embedded soldiers, no checkpoints. Gennady Andreevich, an employee of the neighborhood safety commission and administrator of the Sokol Market, called it a “sleepy” district, where there is only this market, a strip of shops, a park, and a number of Soviet-era residential buildings. The area, per Andreevich and numerous local residents, had sustained relentless strikes since 2014. Those hits have only intensified since February. One of the neighboring residential buildings had been hit as recently as two weeks prior.
These sorts of markets are the central point of social gathering, commerce, and employment for working-class people, who cannot afford to frolic in more luxurious, capitalist-developed urban centers. The eyes of bourgeois mass media are never fixed on the poor. As such, the regular targeting of Donbass civilians goes unmentioned.
A monument to the more than 200 dead civilians in the Petrovsky District / credit: Fergie Chambers
Even as cleanup efforts went on, artillery fire remained constant in the background.
The following day, April 29, the Donetsk News Agency reported the Petrovsky District, also in the west end of the city of Donetsk, had just been hit with nearly 80 Ukrainian shells, resulting in casualties.
Upon arrival at 8 p.m., this reporter first found a small grocery store, smoking from the roof, completely destroyed. A small clean-up crew was inside, and one elderly woman—the shopkeeper—stood alone and bewildered, and appeared not ready to speak to anyone. Behind the store was a large residential building, also apparently damaged by the shelling.
At the entrance to the building, a husband and wife were slowly cleaning up pieces of glass and wreckage at the main entrance. They were initially spooked seeing journalists, thinking anyone could have been Ukrainian operatives in plain clothes. But when they understood members of the press had arrived, they were eager to share their story of not just what had happened that night, but of the previous eight years. The woman, Elena, identified herself by first name only.
Elena, whose apartment balcony had been completely destroyed, said that this kind of attack was a daily occurrence for the residents of Donbass, many of whom—herself included—considered themselves Ukrainians. She said that U.S./EU arms shipments were the primary cause of the continued death and destruction, and wished to personally address the citizens of those countries, to ask that they might pressure their governments to cease the deliveries of weapons.
“In the beginning of the war, in 2014, all of us in the building used to hide out in the basement when the shells flew; now, we don’t bother,” said her husband. “We just have to go on with our lives.”
Their children had moved east to Russia, away from the front lines. But for them—like many others—old age, a lifetime of attachment to one community and lack of economic flexibility made relocation impossible.
This particular building, in its entirety, was made up of 60 units, and was attached to a school.
As we parted, the couple saw our delegation of foreign journalists off warmly, entreated us to share their stories with the West in any way possible, and wished us peace.
‘God Will Sort Them Out’
In the frontline city of Kirovsk, a mining town in the Lugansk People’s Republic, this reporter visited the home of a man whose home was hit April 26 by a “Hurricane” rocket—another Soviet-era weapon—capable of destroying entire floors of large apartment buildings. But it failed to detonate as it plugged into an outer wall, next to his garden. The home was situated on a long dirt road, with only a handful of similar homestead cottages within range. The man explained that he believed the attack had been targeted from what he called “Ukro-Nazi” positions in the nearby town of Pervomaisk. Victoria Ivanovna, the mayor of Kirovsk, described such shelling as “constant,” and often targeted at schools, or other non-military locations important to the community.
Russell “Texas” Bentley, 62, a U.S. expat who is now a fighter in the Donetsk People’s Republic Army / credit: Fergie Chambers
Back in Donetsk, on May 10, a now-notorious U.S. expat-turned-DPR-combat-veteran named Russell “Texas” Bentley gave this reporter a tour of the districts on the edge of no-man’s land. The Petrovsky district was clearly hit the hardest; in places, block after block contained not a single home untouched. In the center of the district, where a once-active market had since been abandoned, a monument stood for the civilian lives lost from 2014 to 2016. It listed more than 200 names.
Russell was no stranger to this kind of shelling. “They hit us out here, every (expletive) day. They always target schools, markets and grocery stores, never military. We never targeted any civilian areas; even aside from the ethical questions, it would just be (expletive) stupid. These are our people here. This is a fight for liberation. The last thing the DPR or [Russian President Vladimir] Putin want is to piss off the residents of places, which we believe will become liberated parts of the Republics.”
Russell, 62, who served in the explicitly Marxist “Sut Vremeni (Essence of Time)” unit of the DPR army—as well as in the DPR special forces until 2017—lives with his wife, Lyudmila, in the Petrovsky district. Their home has not been hit to date, but a family of six just a few doors down had not been so lucky. The mother of the family showed this reporter the impact point of a shelling from the week before; it had destroyed their front wall, killing their dogs and barely missing the family room behind.
A “Hurricane” rocket shell in a Kirovsk backyard / credit: Fergie Chambers
Katya ladnova, 25, a member of Donetsk-based Marxist feminist collective Aurora, said shelling is no longer news.
“We walk right past it,” she said. “Our complaint to Putin is not that he sent Russian troops into Ukraine, but that he sent them eight years too late.”
The house of Russell “Texas” Bentley’s neighbors in Kirovsk that was damaged by a “Hurricane” rocket / credit: Fergie Chambers
In spite of 8 years of attacks, and now endless constraints from isolation and sanctions, including a limit on running water to a few hours in the evening, the city of Donetsk, like all of Donbass around it, continues to move on with life; shops remain open, public transport runs, children go to school every day.
“There is absolutely no military reason to strike places like this. They do this to strike fear in our hearts,” said Andreevich, the Sokol Market administrator. “But it does not work.”
Andreevich’s own administrative office had been hit this past March. Two of his co-workers were killed in that attack. At the end of our exchange, he looked sternly and said, “Sooner or later, God will sort them out, the people who are doing this.”
Fergie Chambers is a freelance writer and socialist organizer from New York, reporting from eastern Europe for Toward Freedom. He can be found on Twitter, Instagram and Substack.
Russian troops march in the 2015 Moscow Victory Day Parade / credit: Vitaly V. Kuzmin
Editor’s Note: The following is the writer’s analysis.
The United States has been accusing Russia of preparing to invade Ukraine, while it continues to build a U.S. military presence in the Black Sea. Warmongering and fearmongering rhetoric began to dominate the public discourse, as media, politicians and military experts have been warning of an “imminent” Russian invasion that could have grave consequences for global peace and security. But does the Kremlin really intend to fight a war against the NATO-backed eastern European country?
According to reports, Moscow has deployed thousands of troops and military equipment to western Russia’s regions that border Ukraine. At the same time, U.S. navy ships Mount Whitney and Arleigh Burke recently entered the Black Sea, while the 9th Expeditionary Bomb Squadron’s B-1B Lancers soared over eastern Europe during a NATO fighter integration mission through the region.
The USS Arleigh Burke ship sailed through the Black Sea on November 25 / credit: U.S. Naval Forces Europe-Africa
Moreover, a Russian Aeroflot airliner flying from Tel Aviv to Moscow was forced to change altitude over the Black Sea because a NATO CL-600 reconnaissance plane crossed its designated flight path. These actions would be the equivalent of Russian naval ships and fighter jets entering the Gulf of Mexico.
As usual, though, the Kremlin’s reaction was weak.
“Just because an air incident over the Black Sea’s international waters has been prevented, this does not mean the U.S. and NATO can further put lives at risk with impunity,” said Russian Ministry of Foreign Affairs spokeswoman Maria Zakharova said.
Just because an air incident over the Black Sea’s Int waters has been prevented, this does not mean the US and NATO can further put people’s lives at #risk with impunity.
However, such a statement is unlikely to provoke fear in NATO’s headquarters.
Crossing Russia’s Red Line
Russian President Vladimir Putin has pointed out the deployment of certain offensive missile capabilities on Ukrainian soil is Moscow’s “red line.”
Yet, the United States has demonstrated it does not take Russia’s threats and boundaries seriously.
“I don’t accept anybody’s red lines,” U.S. President Joe Biden said on December 4.
U.S. President Joe Biden (left) and Russian President Vladimir Putin (right) convened a virtual summit December 7, 2021, to discuss Ukraine, NATO’s eastward expansion, the Iran nuclear deal and resetting diplomatic relations / credit: Twitter/WhiteHouse and President of Russia
The two leaders then held a “virtual summit” on December 7. Shortly after their discussion, the U.S. Congress removed sanctions against Nord Stream 2, Russian sovereign debt and 35 Russians from the draft defense budget. Such actions demonstrate the two leaders have reached certain deals not only on Ukraine, but on energy issues as well. However, tensions between Moscow and Washington, which seem to be an integral part of a new Cold War era, are expected to remain high for the foreseeable future.
Map of Europe, with Belarus, Russia and Ukraine highlighted / credit: BBC
What’s the Possibility of War?
Ahead of the talks between Putin and Biden, the Russian leader clarified his call for new security guarantees.
Putin said Russia would seek “concrete agreements that would rule out any further eastward expansion of NATO and the deployment of weapons systems posing a threat to Russia.” Even if the United States provides such guarantees—which does not seem very probable given that such a move would be interpreted as a concession to Putin and a sign of weakness—it is not probable Washington would implement the deal.
U.S. officials already have declined to rule out dispatching U.S. forces to eastern Europe, although at this point it is highly uncertain if the U.S. troops could be deployed to Ukraine. Ukraine’s Defense Minister Oleksii Reznikov has called on the United States, Canada and the United Kingdom to dispatch their military personnel to the former Soviet republic, even though the eastern European nation is not part of NATO.
“Those troops should be stationed in places where Russia can see them,” Reznikov stressed. Meanwhile, Denis Pushilin, leader of the Russia-backed self-proclaimed Donetsk People’s Republic that declared independence from Ukraine in 2014, said he would request Russia’s assistance in case the situation in the region escalates.
Indeed, a potential deployment of NATO troops in Ukraine would prevent a Russian intervention, given Moscow would be unlikely to confront NATO troops. Russia’s policy makers are quite aware any incursion into Ukrainian territory would result in severe anti-Russia sanctions, which could potentially include actions against Russian oligarchs and energy producers, as well as disconnect Russia from the SWIFT international payment system used by banks around the world. On the other hand, given the United States has the upper hand vis-à-vis Moscow, it is entirely possible some sanctions will be imposed, even if Russia does not invade Ukraine. The West also can deploy troops to Ukraine to prevent what they would call a potential Russian invasion, and there is very little the Kremlin can do about it.
Map of the Donbass War, involving two self-proclaimed republics splitting off from Ukraine beginning in 2014. This maps shows 2014 areas of fighting, and which sides had de facto control of particular regions / credit: ZomBear/Marktaff
Hypothetically, Russia could recognize the self-proclaimed Donetsk People’s Republic and Lugansk People’s Republic, and build military bases on their territories, but such a move is unlikely to have an impact on Ukraine’s goal to restore sovereignty over the coal-rich region. From the legal perspective, the Donbass, as well as Crimea, is part of Ukraine, and no foreign actors would condemn Ukrainian attempts to return the regions under its jurisdiction. Still, unless its gets the green light from Washington, Kiev is unlikely to launch any large-scale military actions against Russia, or Russia-backed forces. Moscow, for its part, is expected to continue preserving the status quo. Supporters of the notion that Russia is keen on invading Ukraine fail to explain what the Kremlin’s motive for such an action would be.
Energy Deals
However, Moscow achieved its goals in 2014 when it incorporated Crimea, which has significant offshore gas and oil reserves into the Russian Federation. That year Russia tacitly supported the creation of the Donbass republics that reportedly have 34.4 billion tons of coal reserves. Since Moscow, through its proxies, already controls the Donbass coal production and export, capturing the other energy-poor regions of Ukraine would represent nothing but an additional cost for Russia.
Nonetheless, Western and Ukrainian media continue to spread rumors of an “imminent” Russian invasion. Ukrainian military officials claim Russia could start its campaign against the former Soviet republic in February—in the middle of winter when troops are up to their knees in snow. Meanwhile, Oleksiy Arestovych, the head of the Office of the Ukrainian President, recently suggested his country could “fire missiles at the Russian Federation, in case the Kremlin starts a full-scale war against Ukraine.”
Belarusian President Alexander Lukashenko, on the other hand, openly said in case of a potential conflict between Russia and Ukraine, Minsk will support its ally, Moscow. At the same time, Belarus announced joint military exercises with Russia along its border with Ukraine. Plus, Lukashenko promised to visit Crimea soon, which would be Belarus’ de facto recognition of the Kremlin’s incorporation of Crimea into the Russian Federation.
His visit, whenever it comes, undoubtedly will have a serious impact on relations between Belarus and Ukraine. Kiev fears Belarus could take part in what they perceive would be a Russian invasion of Ukraine, and the country’s authorities have taken Lukashenko’s threat very seriously. According to reports, citizens of Ukraine already started preparing to defend the Ukrainian capital against an invasion, whether it may come from Russia or Belarus.
One thing is for sure: Unless Kiev starts a massive military campaign in the Donbass, or engages in a serious provocation against Russia, the Kremlin is unlikely to start a war against Ukraine. And even if a war breaks out, Russia’s actions are expected to be very calculated, limited and carefully coordinated with its Western partners, as part of moves toward a “stable and more predictable relationship” between Moscow and Washington.
Nikola Mikovic is a Serbia-based contributor to CGTN, Global Comment, Byline Times, Informed Comment, and World Geostrategic Insights, among other publications. He is a geopolitical analyst for KJ Reports and Enquire.
Residents of the self-proclaimed Donetsk People’s Republic set off fireworks and waved Russian flags on February 21 after Russia recognized the independence of the breakaway republic as well as that of the Lugansk People’s Republic / credit: Tasnim News
Editor’s Note: The following represents the writer’s analysis.
With Russia recognizing on February 21 two breakaway republics in Ukraine’s Donbass region, war between Russia and U.S.-backed Ukraine appears closer than ever. However, such an escalation means Europe is bound to face an energy crisis, as sources of oil and gas remain too small or unreliable to meet its needs.
The United States and the European Union are expected to impose severe sanctions on the Russian Federation. The United Kingdom, on the other hand, announced it will impose sanctions on Russian banks. The United States could eventually pressure all European countries to stop purchasing Russian energy, one way or another. U.S. President Joe Biden issued an executive order immediately after Russia recognized the two republics. The order bans business that would develop the Donetsk People’s Republic and the Lugansk People’s Republic. Although the order states medical supplies and other basic needs would not be barred, U.S. sanctions have been found to shrink economies and kill people by denying materials to produce medicines. Moreover, Biden announced today the “first tranche,” which includes restrictions on Russia’s sovereign debt.
“That means we’ve cut off Russia’s government from Western financing,” Biden said.
On September 10, the sections of the second Nord Stream 2 pipeline laid from the German shore and Danish waters was connected in a so-called above water tie-in. The opposing pipe strings were lifted from the seabed by the lay barge Fortuna and the pipe ends were cut and fitted together. The welding to connect the two lines took place on a platform located above the water on the side of the vessel. Then the connected pipeline was lowered to the seabed as one continuous string / credit: Nord Stream 2 / Axel Schmidt
Europe’s Energy Conundrum
With the march toward war, Germany halted approval for Nord Stream 2, an undersea pipeline that would have doubled the amount of natural gas flowing from Russia to Germany via the Baltic Sea, bypassing the U.S.-backed Ukraine.
About 43 percent of natural gas consumed in the EU comes from Russia. Moreover, Russia is the main supplier of crude oil to the EU, making the alliance of European states heavily dependent on Russian energy. If the EU completely cuts energy ties with Moscow, power outages could become the norm, especially given European gas storages are already half-empty. Even if the United States pressures other producers to increase energy supplies to Europe, it remains uncertain what can replace Russian oil, gas and coal in the interim.
Europe is not the only place that will suffer from what seems to be an inevitable war between Russia and Ukraine. The two countries are the world’s fourth and seventh largest producers of cereals, respectively. That means West Asian countries, significant importers of the Russian and Ukrainian foodstock, are expected to experience food shortages if Ukrainian sea ports are blocked due to a war or if Russia is cut off from the global financial system.
Still, it remains to be seen if such severe sanctions will come as a result of the Kremlin’s recognition of the Donbass republics, or if the West will wait for major clashes between Russian and Ukrainian forces.
Why Russia Recognized Breakaway Republics
The Kremlin’s recognition of the self-proclaimed Donetsk People’s Republic and Lugansk People’s Republic is only the beginning of a large-scale conflict between Russia and Ukraine. The two republics, located in the coal-rich Donbass region of eastern Ukraine, are now Moscow’s allies, which means Russia will openly support them if Kyiv does not end hostilities that erupted in 2014.
Map of Donetsk People’s Republic (lavender) and the Lugansk People’s Republic (peach) within Ukraine’s Donbass region / credit: STUmaps/Wikipedia
Ukraine has been firmly in the U.S. geopolitical orbit since violent neo-Nazi protests in Kyiv’s Maidan Square resulted in the 2014 overthrow of the allegedly pro-Russian president, Viktor Yanukovych. Yet, Russia did not attempt to help the then-Ukrainian leader stay in power. As Russian President Vladimir Putin said in 2018, Washington had asked him to persuade Yanukovych not to use force against “peaceful protesters.” Putin agreed. As a result, anti-Russian forces came to power in Kyiv, leading the people of the Donbass region to vote in favor of leaving Ukraine.
“I don’t think anyone can claim that the Ukrainian regime, since the 2014 coup d’état, represents all the people living on the territory of the Ukrainian state,” said Russian Foreign Minister Sergey Lavrov on February 22.
In 2014, however, Russia recognized the results of the Ukrainian presidential election, organized by the post-Maidan authorities. Lavrov even called newly elected President Petro Poroshenko the “best chance” for Ukraine. Eight years later, the Kremlin has completely changed its rhetoric on Ukraine. Now, Lavrov openly questions the very sovereignty of Ukraine, while Putin indirectly threatens to continue the process of fragmentation of the Eastern European country. In his speech on February 21, Putin said the Soviet Ukraine is the result of the Bolsheviks’ policy and can be rightfully called “Vladimir Lenin’s Ukraine.”
“You want decommunization? Very well, this suits us just fine. But why stop halfway? We are ready to show what real decommunizations would mean for Ukraine,” Putin stressed.
Does that mean Russia plans to seek pre-Bolshevik borders with Ukraine, which would include incorporating the Crimean peninsula into the Russian Federation?
Map showing Crimea and the breakaway republics of Donetsk and Lugantsk / credit: Congressional Research Service
From the Russian perspective, recognition of the Donbass republics will not resolve the problem Moscow has with Washington. The United States is using Ukraine merely as an instrument against Russia. This comes as the Kremlin uses its Donbass proxies as a tool against the U.S.-backed Ukraine in an escalation of a Cold War game between the two nuclear powers that was sparked with the 2014 Maidan events and Russia’s subsequent actions in Crimea and Donbass. But the latest developments suggest Moscow intends to raise the stakes. Quite aware Ukrainian authorities will never recognize the secession of breakaway provinces and will continue to fight, the Kremlin hardly has a choice but to eventually install a Russia-friendly regime in Kyiv.
Such an operation undoubtedly means war. But war is inevitable, one way or another. Russia has deployed troops to the newly recognized Donbass republics. If Ukrainian forces do not end hostilities, the Russian Army is in the very near future expected to engage in a direct confrontation against Ukraine. Given that the Eastern European country has received at least $200 million in U.S. “lethal aid” as well as other Western-made weapons over the past two months, it is not probable Kyiv will accept a new geopolitical reality. Ukraine is not in a position to refuse to accept Western arms and Ukraine has often said it would never capitulate to Russia. Refusing arms would mean a de facto capitulation to Russia.
The Inevitability of War
Sooner or later, the Donbass conflict will escalate. Shelling has increased along the entire front line, which seems to be part of preparations for a military offensive. Ukraine aims to restore its sovereignty over the Donbass, while the Lugansk People’s Republic demands Kyiv withdraw its troops from the entire Lugansk Oblast (region). Both republics control relatively small portions of Ukraine’s Donetsk and Lugansk Oblasts. Two-thirds of the regions are still controlled by Kyiv. Given that on May 12, 2014, a referendum on the status of Donetsk and Lugansk was held on the entirety of the two oblasts, it is entirely possible Moscow also sees the two republics as part of a much bigger territory than what is currently under control of the pro-Russian forces. Their final borders, however, are likely to be determined after a war.
For now, the region will remain in a state of limbo. If Ukraine breaks off diplomatic ties with Russia, something Ukrainian President Volodymyr Zelensky announced, it will be a clear indication the two countries are on the brink of war.
That several Western countries have moved their embassies from Kyiv to the western Ukrainian city of Lviv, and that around 10 airlines have canceled their flights to Ukraine, suggests the breakout of war is just a matter of time.
Nikola Mikovic is a Serbia-based contributor to CGTN, Global Comment, Byline Times, Informed Comment, and World Geostrategic Insights, among other publications. He is a geopolitical analyst for KJ Reports and Enquire.
On left, speakers at the Ukraine Recovery Conference held July 4-5 in Lugano, Switzerland. On right, Ukrainian President Volodomyr Zelensky / credit: Multipolarista
Editor’s Note: This article originally appeared in Multipolarista.
While the United States and Europe flood Ukraine with tens of billions of dollars of weapons, using it as an anti-Russian proxy and pouring fuel on the fire of a brutal war that is devastating the country, they are also making plans to essentially plunder its post-war economy.
Representatives of Western governments and corporations met in Switzerland this July to plan a series of harsh neoliberal policies to impose on post-war Ukraine, calling to cut labor laws, “open markets,” drop tariffs, deregulate industries, and “sell state-owned enterprises to private investors.”
Ukraine has been destabilized by violence since 2014, when a U.S.-sponsored coup d’etat overthrew its democratically elected government, setting off a civil war. That conflict dragged on until February 24, 2022, when Russia invaded the country, escalating into a new, even deadlier phase of the war.
The United States and European Union have sought to erase the history of foreign-sponsored civil war in Ukraine from 2014 to early 2022, acting as though the conflict began on February 24. But Washington had sent large sums of weapons to Ukraine and provided extensive military training and support over several years before Russia invaded.
Meanwhile, starting in 2017, representatives of Western governments and corporations quietly held annual conferences in which they discussed ways to profit from the civil war they were fueling in Ukraine.
In these meetings, Western political and business leaders outlined a series of aggressive right-wing reforms they hoped to impose on Ukraine, including widespread privatization of state-owned industries and deregulation of the economy.
On July 4 and July 5, top officials from the United States, European Union, Britain, Japan, and South Korea met in Switzerland for a so-called “Ukraine Recovery Conference.” There, they planned Ukraine’s post-war reconstruction and performatively announced aid commitments—while salivating over a bonanza of potential contracts.
New NATO candidates Finland and Sweden committed to assure reconstruction in Lugansk, roughly 48 hours after Russia and separatist forces announced the region had fallen fully under their control.
But the Ukraine Recovery Conference was not new. It had been renamed to save the expense of a new acronym. In the previous five years, the group and its annual meetings were instead referred to as the “Ukraine Reform Conference” (URC).
The URC’s agenda was explicitly focused on imposing political changes on the country—namely, “strengthening the market economy“, “decentralization, privatization, reform of state-owned enterprises, land reform, state administration reform,” and “Euro-Atlantic integration.”
Before 2022, this gathering had nothing to do with aid – and a lot to do with economics.
Documents from the 2018 Ukraine Reform Conference emphasized the importance of privatizing most of Ukraine’s remaining public sector, stating that the “ultimate goal of the reform is to sell state-owned enterprises to private investors”, along with calls for more “privatization, deregulation, energy reform, tax and customs reform.”
Lamenting that the “government is Ukraine’s largest asset holder,” the report stated, “Reform in privatization and SOEs has been long awaited, as this sector of the Ukrainian economy has remained largely unchanged since 1991.”
The Ukraine Reform Conference listed as one of its “achievements” the adoption of a law in January 2018 titled “On Privatization of State and Municipal Property,” which it noted “simplifies the procedure of privatization.”
While the URC enthusiastically pushed for these neoliberal reforms, it acknowledged that they were very unpopular among actual Ukrainians. A poll found that just 12.4 percent supported privatization of state-owned enterprises (SOE), whereas 49.9 percent opposed it. (An additional 12 percent were indifferent, whereas 25.7 percent had no answer.)
Economic liberalization in Ukraine since Russia’s February invasion has been even more grim.
In March 2022, the Ukrainian parliament adopted emergency legislation allowing employers to suspend collective agreements. Then in May, it passed a permanent reform package effectively exempting the vast majority of Ukrainian workers (those at businesses with fewer than 200 employees) from Ukrainian labor law.
While the most immediate beneficiaries of these changes will be Ukrainian employers, Western governments have been lobbying to liberalize Ukraine’s labor laws for years.
Documents leaked in 2021 showed that the British government coached Ukrainian officials on how to convince a recalcitrant public to give up workers’ rights and implement anti-union policies. Training materials lamented that popular opinion towards the proposed reforms was overwhelmingly negative, but provided messaging strategies to mislead Ukrainians into supporting them.
West Calls for Aggressive Neoliberal Reforms at ‘Ukraine Recovery Conference’
The July 2022 Ukraine Recovery Conference, which was held by Lugano, Switzerland and jointly hosted by the Swiss and Ukrainian governments, featured representatives from the following states and institutions:
Albania
Australia
Austria
Belgium
Canada
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Iceland
Israel
Italy
Japan
Latvia
Lithuania
Liechtenstein
Luxembourg
Malta
Netherlands
North Macedonia
Norway
Poland
Portugal
Republic of Korea (popularly known as South Korea)
Romania
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Türkiye (formerly known as Turkey)
Ukraine
United Kingdom
United States of America
Council of Europe
European Bank for Reconstruction and Development
European Commission
European Investment Bank
Organisation for Economic Cooperation and Development (OECD)
Among the prominent officials who attended were European Commission President Ursula Von der Leyen, Swiss President Ignazio Cassis, and UK Foreign Minister Liz Truss.
Ukraine’s Western-backed leader Volodymyr Zelensky also addressed the conference via video.
Physically present at the Switzerland meeting were Ukrainian Prime Minister Denys Shmyhal and Zelensky’s top political ally Ruslan Stefanchuk, the chairman of Ukraine’s parliament, the Verkhovna Rada.
Stefanchuk is the second-in-line for the presidency after Zelensky. He is also a member of Ukraine’s all-powerful National Security and Defense Council, which truly governs the country.
From left to right: Ukrainian Prime Minister Denys Shmyhal, Swiss President Ignazio Cassis, European Commission President Ursula Von der Leyen, and Verkhovna Rada chairman Ruslan Stefanchuk at the Ukraine Recovery Conference in Switzerland on July 4, 2022
Even the United Nations gave its imprimatur to the conference: UN Secretary-General António Guterres delivered a video statement as well.
At the two-day meeting, the attendees agreed that Ukraine should eventually be given membership in the European Union. The country had already been granted EU candidate status just two weeks before, at a June summit in Brussels.
At the conclusion of the meeting, all governments and institutions present endorsed a joint statement called the Lugano Declaration. This declaration was supplemented by a “National Recovery Plan,” which was in turn prepared by a “National Recovery Council” established by the Ukrainian government.
This plan advocated for an array of neoliberal reforms, including “privatization of non critical enterprises” and “finalization of corporatization of SOEs” (state-owned enterprises) – identifying as an example the selling off of Ukraine’s state-owned nuclear energy company EnergoAtom.
In order to “attract private capital into banking system,” the proposal likewise called for the “privatization of SOBs” (state-owned banks).
Seeking to increase “private investment and boost nationwide entrepreneurship,” the National Recovery Plan urged significant “deregulation” and proposed the creation of “‘catalyst projects’ to unlock private investment into priority sectors.”
In an explicit call for slashing labor protections, the document attacked the remaining pro-worker laws in Ukraine, some of which are a holdover of the Soviet era.
The National Recovery Plan complained of “outdated labor legislation leading to complicated hiring and firing process, regulation of overtime, etc.” As an example of this supposed “outdated labor legislation,” the Western-backed plan lamented that workers in Ukraine with one year of experience are granted a nine-week “notice period for redundancy dismissal,” compared to just four weeks in Poland and South Korea.
Neoliberal economic reforms proposed in Ukraine’s National Recovery Plan
In the same vein, the National Recovery Plan urged Ukraine to cut taxes on corporations and wealthy capitalists.
The blueprint complained that 40 percent of Ukraine’s GDP comes from tax revenue, calling this a “rather high tax burden” compared to its model example of South Korea. It thus called to “transform tax service,” and “review potential for decreasing the share of tax revenue in GDP.”
In short, the Ukraine Recovery Conference’s economic proposal was little more than a repackaged Washington Consensus: a typical right-wing program that involves implementing mass privatizations, deregulating industries, gutting labor protections, cutting taxes on the rich, and putting the burden on Ukrainian workers.
In the 1990s, following the overthrow of the Soviet Union, the United States imposed what it called capitalist “shock therapy” on Russia and other former constituent republics.
A 2001 UNICEF study found that these harsh neoliberal reforms in Russia caused 3.2 million excess deaths, and pushed 18 million children into poverty, bringing about rampant malnutrition and public health crises.
Washington and Brussels appear committed to return to this very same neoliberal shock therapy in their plans for post-war Ukraine.
More Calls for Neoliberal Shock Therapy in Post-war Ukraine
To accompany its July 2022 meeting in Switzerland, the Ukraine Recovery Conference published a “strategic briefing” compiled by a right-wing Ukrainian organization called the Center of Economic Recovery.
The Center of Economic Recovery describes itself as a “platform that unites experts, think tanks, business, the public and government officials for the development of the country’s economy.” On its website, it lists many Ukrainian corporations as its partners and funders, making it clear that it acts as lobby on their behalf, like a chamber of commerce.
The report that this corporate lobby wrote for the Ukraine Recovery Conference was even more explicit than the National Recovery Plan in its advocacy of aggressive neoliberal economic reforms.
Using right-wing libertarian language of “economic freedom,” the document urged to “reduce government size” and “open markets.”
Its proposal read as neoliberal boilerplate: “decrease the regulatory burden on businesses” by “reducing the size of the government (tax administration, privatization; digitalization of public services), improving regulatory efficiency (deregulation), and opening markets (liberalization of capital markets; investment freedom).”
In the name of “EU integration and access to markets,” it likewise proposed “removal of tariffs and non-tariff non-technical barriers for all Ukrainian goods,” while simultaneously calling to “facilitate FDI [foreign direct investment] attraction to bring the largest international companies to Ukraine,” with “special investment incentives” for foreign corporations.
It was essentially a call for Ukraine to surrender its economic sovereignty to Western capital.
Both the National Recovery Plan and the strategic briefing also heavily emphasized the need for robust anti-corruption efforts in Ukraine.
Neither document acknowledged that fact that Kiev’s Western-backed leader Volodmyr Zelensky, who spoke at the Ukraine Recovery Conference, is known to have large amounts of wealth hidden in a network of offshare accounts.
Even More Calls for Liberalization, Privatizations, Deregulation, Tax Cuts
In addition to the National Recovery Plan and the strategic briefing, the July 2022 Ukraine Recovery Conference presented a report prepared by the company Economist Impact, a corporate consulting firm that is part of The Economist Group.
This third document, titled “Ukraine Reform Tracker,” was funded by the Swiss government with the stated “aim of stimulating and supporting discussion on this matter at the 2022 Ukraine Recovery Conference.”
The Ukraine Reform Tracker analyzed the neoliberal policies already imposed in Ukraine since the U.S.-backed 2014 coup, and urged for even more aggressive neoliberal reforms to be implemented when the war ends.
Of the three reports presented at the conference, this was perhaps the most full-throated call for Ukraine to adopt neoliberal shock therapy after the war – a tactic often referred to as disaster capitalism.
Quoting the Economist Intelligence Unit (EIU), the document insisted that Ukraine has “issues in deregulation and competition that still need to be addressed, such as ongoing state intervention” – depicting state intervention in the economy as something inherently bad.
In this vein, the Ukraine Reform Tracker pushed to “increase foreign direct investments” by international corporations, not invest resources in social programs for the Ukrainian people.
The report emphasized the importance of developing the financial sector and called for “removing excessive regulations” and tariffs.
“Deregulation and tax simplification has been further deepened,” it wrote approvingly, adding, “Steps towards deregulation and the simplification of the tax system are examples of measures which not only withstood the blow of the war but have been accelerated by it.”
The Ukraine Reform Tracker praised the central bank for “successfully liberalising the currency, floating the exchange rate.” While it noted some of these policies were reversed due to the Russian invasion, the report urged “the swiftest possible elimination of currency controls,” in order to “reinstate competitiveness within the financial sector.”
The report however complained that these neoliberal reforms are not being implemented quickly enough, writing, “Privatisation— which already progressed slowly before the war—stalled, with a draft law aiming to simplify the process rejected” by the Verkhovna Rada, Ukraine’s parliament.
It called for further “liberalising agriculture” to “attract foreign investment and encourage domestic entrepreneurship,” as well as “procedural simplifications,” to “make it easier for small and medium enterprises” to “expand by purchasing and investing in state-owned assets,” thereby “making it easier for foreign investors to enter the market post-conflict.”
“Further pursuing the privatisation of large and loss-making state-owned enterprises” will “allow more Ukrainian entrepreneurs to enter the market and thrive there in the post-war context,” the report urged.
The Economist Impact study stressed the importance of Ukraine cutting its trade with Russia and instead integrating its economy with Europe.
“Ukraine’s trade reforms centre on efforts to diversify its trade operations and enhance its integration into the EU market,” it wrote.
The Western government-sponsored report boasted of significantly reducing Kiev’s economic ties to its eastern neighbor, noting: “Russia was Ukraine’s main trading partner in 2014, capturing 18.2 percent of its exports and providing 22 percent of its imports. Since then, however, Russia’s share of Ukraine’s exports and imports has decreased consistently, reaching 4.9 percent and 8.4 percent in 2021, respectively.”
“Ukraine made particular progress in diversifying its trade portfolio within the EU, raising its trade volumes with member states by 46.2 percent from 2015 to 2019,” it added.
The report added that it is “essential” that Ukraine carry out other reforms, such as modifying its railways by “aligning the rail gauges with EU standards.”
The Ukraine Recovery Conference in Lugano, Switzerland on July 5, 2022
The Ukraine Reform Tracker presented the war as an opportunity to impose even more disaster capitalist policies.
“The post-war moment may present an opportunity to complete the difficult land reform by extending the right to purchase agricultural land to legal entities, including foreign ones,” the report stated.
“Opening the path for international capital to flow into Ukrainian agriculture will likely boost productivity across the sector, increasing its competitiveness in the EU market,” it added.
The document proposed new ways for exploiting Ukrainian labor in specific industries, “especially pharmaceutical and electrical production, plastic and rubber manufacturing, furniture, textiles, and food and agricultural products.”
“Once the war is over, the government will also need to consider substantially lowering the share of stateowned banks, with the privatisation of Privatbank, the country’s largest lender, and Oshchadbank, a large processor of pensions and social payments,” it insisted.
The Ukraine Reform Tracker concluded optimistically, stating that that “post-war moment will be an opportunity for Ukraine,” and “there is likely to be significant pressure to continue and speed up the implementation of the reform agenda. Continued business reforms could allow Ukraine to further deregulate [and] privatise lossmaking SOEs.”
While Pushing Disaster Capitalism, the Ukraine Recovery Conference Exploits ‘Social Justice’ Rhetoric
While these three documents published by the 2022 Ukraine Reform Conference (URC) were vociferous calls for the imposition of right-wing economic policies, they were accompanied by superficial appeals to social justice rhetoric.
The URC released a set of seven “Lugano Principles” that it identified as the keys to a just, equitable post-war reconstruction:
partnership
reform focus
transparency, accountability, and rule of law
democratic participation
multi-stakeholder engagement
gender equality and inclusion
(environmental) sustainability
These principles demonstrate the ways that hawks in Washington and Brussels have increasingly weaponized ideas about “intersectionality” to advance their belligerent foreign policy.
In his report “Woke Imperium: The Coming Confluence Between Social Justice and Neoconservatism,” former U.S. State Department officer Christopher Mott discussed the growing use of left-liberal social-justice talking points to legitimize and enforce Western imperialism.
Mott observed that the “liberal Atlanticist tendency to push moralism and social engineering globally has immense potential to create backlash.”
Western-backed liberals in post-socialist Europe have spent three decades creating a false dichotomy between either a liberalizing cultural project that can only be realized under U.S.-led trans-Atlantic hegemony and neoliberal economic reforms, or a purely fictional socialist past whose political legacy is somehow reflected in right-wing anti-communist nationalist parties attempting to roll back advances that women had achieved under socialism.
Despite its patent absurdity, this narrative has won adherents among younger liberal intellectuals, especially in Central and Eastern Europe, who have little or no memory of the socialist period, and who face increasingly desperate career prospects outside of the Western-backed ideological apparatus.
On the other hand, right-wing nationalists like Hungary’s Viktor Orban posture as the only defenders of their countries’ cultural sovereignty against hostile outsiders, while also refusing to break from neoliberal capitalist orthodoxy.
In turn, organic local activists struggling for legitimate social justice causes find themselves portrayed as agents furthering the agendas of foreign powers.
At best, during peacetime, this undermines their work and hinders progress for their causes. In a country like Ukraine, where Western governments have supportedfar-right, neo-fascist groups and eight years dragging out a civil war, this is life-threatening.
In Ukraine, What’s Even Left to Loot?
On May 9, 2022, the U.S. Congress passed the Ukraine Democracy Defense Lend-Lease Act, greatly expanding Washington’s authority to provide military aid to Ukraine.
Lend-lease provisions originated during World War II and were used by the U.S. government to provide military aid to countries fighting Nazi Germany, including Britain and the Soviet Union, without formally entering the war.
Under this framework, the United States provides military equipment as a loan; if the equipment is not or cannot be returned, recipient governments are on the hook to pay back the full cost.
The Joe Biden administration explained its use of lend-lease by the need to quickly move the bill through Congress before other funding ran out.
While many North Americans protested what they saw as a pointless giveaway of tens of billions of taxpayer dollars to a foreign country, lend-lease provisions are loans, not grants.
Britain, one of the United States’ closest allies, only finished paying back its 60-year-old lend-lease debt in 2006. Russia settled its former Soviet obligations the same year.
Given this historical precedent, Ukraine will likely be saddled with debts it can’t readily pay back—debts extended to corrupt Western-backed elites under wartime duress. This means U.S. financial institutions will have further collateral to impose neoliberal structural adjustment policies on Ukraine, subordinating its economy for years to come.
Washington and its allies have a long history of instrumentalizing debt to force countries to accept unpopular pro-Western policy changes, and difficulties of repayment often compel countries to accept even more debt, leading to debt trap cycles that are extremely difficult to escape.
It was in fact the International Monetary Fund, and specifically the refusal of Ukraine’s democratically elected President Viktor Yanukovych to accept IMF demands that he cut wages, slash social spending, and end gas subsidies in order to integrate with the EU, which led him to turn instead to Russia for an alternative economic agreement, thus setting the stage for the Western-backed “Euromaidan protests” and eventually the 2014 coup.
Meanwhile, in the current war, Moscow and Russian-backed separatist fighters are occupying and may annex what were historically the most industrialized regions of Ukraine, located in the east.
At the same time, much of what remained of the country’s pre-war industrial base has been physically destroyed by the war. And these same regions hold much of Ukraine’s energy resources, notably coal.
Millions of Ukrainians have already emigrated and are unlikely to return, especially if they are able to access work visas in the EU. Young and educated people with technical skills are the least likely to stay.
The situation is even bleaker when one considers that, well before Russia’s February invasion, Ukraine was already the poorest country in Europe.
While Soviet Ukraine had thrived as a center of the USSR’s heavy industry, and a source for much of Soviet political leadership, post-Soviet Ukraine has been a playground for rival elites supported by the West or by Russia.
Post-Soviet Ukraine has been devastated by persistent economic crises and rampant and systematic corruption. It has consistently had smaller incomes and a lower standard of living even compared to neighboring post-socialist countries, including Russia.
Ukraine has not been able to restore the size of the economy it had in 1990, when it was still part of the Soviet Union. And looking beyond raw GDP data, the quality of life for many Ukrainian workers and their access to social services has significantly declined.
With limited financial means to provide for basic state functions, much less to repay foreign debts, a post-war Ukraine could be forced to accept humiliating and dangerous concessions in other spheres—serving, say, as an Israel-style trying ground for weapons testing, or hosting Kosovo-style black sites for U.S. covert operations, or providing Western businesses a Chile-style no-regulation environment for tax evasion and criminal activities—all while gutting what little remains of its domestic welfare state and labor protections.
Yet instead of advocating for a diplomatic solution to the war, which could help the Ukrainian government and people concentrate their resources on economic recovery, Western governments have adamantly opposed proposed peace talks, insisting, in the words of EU foreign policy chief Josep Borrell, “This war will be won on the battlefield.”
Washington and Brussels are sacrificing Ukraine for their geopolitical interests. And their Ukraine Recovery Conference shows they expect to keep benefiting economically even after the war ends.
1. This war will be won on the battlefield. Additional €500 million from the #EPF are underway. Weapon deliveries will be tailored to Ukrainian needs. pic.twitter.com/Jgr61t9FfW
— Josep Borrell Fontelles (@JosepBorrellF) April 9, 2022
Belarusian President Alexander Lukashenko, on the other hand, openly 
