20 years ago, Vladimir Putin, Leonid Kuchma and the oligarchs of Ukraine and Russia gathered in Crimea to meet Victor Yanukovych, the expected Ukraineʼs next president. But then everything went south

Author:
Serhii Pyvovarov
Editor:
Glib Gusiev
Date:
20 years ago, Vladimir Putin, Leonid Kuchma and the oligarchs of Ukraine and Russia gathered in Crimea to meet Victor Yanukovych, the expected Ukraineʼs next president. But then everything went south

Putin, Kuchma and Yanukovych go to the Livadia Palace for a meeting with the oligarchs, July 26, 2004.

X (Twitter) / «Бабель»

On July 26, 2004, the then President of Ukraine, Leonid Kuchma, received Vladimir Putin in the Livadia Palace in Yalta, Crimea. They arranged a meeting with Ukrainian and Russian oligarchs, among whom were Rinat Akhmetov, Ihor Kolomoisky and Viktor Pinchuk, Vagit Alekperov from Lukoil, Oleg Deripaska from RUSAL and Vladimir Yevtushenkov from AFK Sistema. At this meeting, cooperation between the two countries was discussed — in fact, they just shared areas of interest. Oligarchs and Putin were also presented with a pro-government candidate for the presidency of Ukraine — then Prime Minister Viktor Yanukovych. In July 2004, everything seemed to be going according to the calculated scenario: Ukraine refused to join NATO and the EU, Yanukovych gained ratings thanks to black PR, which was mastered by Russian political technologists. But everything ended with the victory of the Orange Revolution. Babel tells about the landmark meeting in Yalta in 2004 and mentions the historical context of those times.

What happened before the meeting in Yalta: the presidential campaign started, Ukraine refused to join NATO and the EU

On July 3, 2004, the presidential election campaign officially started. A total of 26 candidates registered. Although at that time it was already clear that the main struggle would take place between two persons — the pro-government candidate and then prime minister

He became prime minister in November 2002.
Viktor Yanukovych and the opposition candidate and ex-prime minister
He was the prime minister from December 1999 to May 2001.
Viktor Yushchenko. At that time, according to the ratings, Yanukovych was inferior to Yushchenko. According to opinion polls as of the end of July 2004, Yushchenko was leading with a margin of approximately 10%.

Yushchenko with a presidential candidate certificate, July 6, 2004.
Kuchma and Yanukovych at a parade in Kyiv for the Independence Day of Ukraine, August 24, 2004.

Yushchenko with a presidential candidate certificate, July 6, 2004. Kuchma and Yanukovych at a parade in Kyiv for the Independence Day of Ukraine, August 24, 2004.

Getty Images / «Babel'»

On the day of the meeting with Putin in the Livadia Palace, on July 26, 2004, it became known that on July 15, Kuchma, by his decree, excluded from the Military Doctrine the provisions on Ukraineʼs accession to NATO and the European Union. He wrote this provision in the doctrine just one month ago — on June 15, 2004. Such a sharp change took place after the NATO Summit in Istanbul at the end of June, where Kuchma was criticized for suppressing public freedoms and inadequate preparations for holding presidential elections. However, Kuchma has said before that Ukraine is not yet ready to join NATO and is at the same distance from the Alliance as it is from the European Union.

What happened at the meeting: talks about oil and high technologies, Putin promoted Yanukovych

On July 26, 2004, Putin brought the head of the Administration of the President of the Russian Federation, Dmitry Medvedev, to a meeting with representatives of Ukrainian and Russian business in the Livadia Palace in Yalta. Kuchma brought the head of his Administration Viktor Medvedchuk

Even before the full-scale Russian invasion, Medvedchuk was informed of suspicion of treason and looting of national resources. In 2021, he was put under house arrest, but he managed to escape. The former member of parliament was detained on April 12, 2022, and already in September Medvedchuk was exchanged for Ukrainian prisoners of war. In 2023, he was deprived of Ukrainian citizenship. Medvedchuk and his family now live in Russia and registered the non-governmental organization "Other Ukraine" there.
, as well as Prime Minister and presidential candidate Viktor Yanukovych.

Putin and Kuchma in the Livadia Palace in Yalta, July 26, 2004.

X (Twitter) / «Бабель»

Who was among the Ukrainian oligarchs:

  • Yuriy Alekseev
    In July 2005, he became the general director of the National Space Agency of Ukraine. In October 2014, he was dismissed under the law "On Purification of Power".
    — general director of the L.M. Makarov Southern Machine-Building Plant Production Association;
  • Rinat Akhmetov
    He was a member of parliament in 2006-2012. After the beginning of the Russian aggression, he lost a significant part of his wealth and assets. However, Akhmetov still remains the richest Ukrainian with a fortune of approximately $4 billion.
    — president of the System Capital Management company;
  • Vyacheslav Boguslaev
    On October 22, 2022, the SBU detained Boguslaev on suspicion of treason. He has been under arrest since then.
    — general director of Motor Sich PJSC;
  • Yuriy Boyko
    He was a minister in the governments of Yanukovych and Azarov, was elected as a deputy from the Party of Regions, nominated his candidacy in the presidential elections. In 2018, he became co-chairman of the pro-Russian party "Opposition Platform — For Life". After its ban in 2022, he created and headed the deputy group "Platform for Life and Peace". Currently, he remains a member of the Ukrainian parliament.
    — chairman of the board of Naftogaz of Ukraine;
  • Volodymyr Boyko
    He was elected as a Peopleʼs Deputy several times, headed the Mariupol Metallurgical Plant until his death in 2015.
    — MP, General Director of JSC Mariupol Metallurgical Plant named after Ilyich;
  • Oleksandr Derkach
    Subsequently, he became one of the founders of the Prestige bank, later of the Milk Alliance holding.
    — chairman of the board of the Aval bank;
  • Heorhiy Dzekon
    In 2011, he left with his family for the USA, got American citizenship. In October 2014, the SBU declared Dzekon wanted.
    — chairman of the board of JSC Ukrtelecom;
  • Ihor Kolomoisky
    Since September 2023, he has been in the pre-trial detention center. He is suspected of fraud and money laundering. In May 2024, Kolomoiskyi was informed of a new suspicion of attempted murder of a lawyer.
    — chairman of the board of the Privat group of companies;
  • Volodymyr Lukyanenko
    He owned parts of several plants in Sumy. In 2023, he was sanctioned, deprived of the title of Hero of Ukraine and other awards. The High Anti-Corruption Court is considering the case of the nationalization of assets of the Lukyanenko family.
    — president of OJSC Sumy Machine-Building Research and Production Association named after M. V. Frunze;
  • Viktor Pinchuk
    Today, Pinchuk is the second richest Ukrainian after Akhmetov, with a fortune of about $2 billion.
    — President of Interpipe;
  • Georgy Skudar
    He was a deputy from the Party of Regions. As of February 2022, the Skudar family owned 78% of shares in the Novokramatorsk Machine-Building Plant.
    — MP, Chairman of the Board of Novokramatorsk Machine-Building Plant CJSC;
  • Hryhoriy Surkis
    President of the Football Federation of Ukraine in 2002-2012. Member of parliament from OPzZh pro-Russian party, involved in anti-corruption investigations. After the full-scale Russian invasion, he left Ukraine in March 2022.
    — peopleʼs deputy, honorary president of FC Dynamo Kyiv;
  • Serhiy Taruta
    Member of parliament from the "Batkivshchyna" faction. He remains the chairman of the board of directors of the "Industrial Union of Donbas".
    — chairman of the board of directors of the Industrial Union of Donbas corporation;
  • Eduard Shifrin
    In 2010, he sold his main asset, the Zaporizhstal plant. In 2016, he received Russian citizenship. In 2020, he left Russia, and after the full-scale Russian invasion of Ukraine, he renounced his Russian citizenship. Lives in London and Monaco, has citizenship of Great Britain and Israel.
    is the founder of the Metallurgical Center company;
  • Mykola Yankovskyi
    He was a confidant of Yanukovych in the 2000 elections, then a deputy from the Party of Regions, and from 2012 to 2014, a freelance adviser to the president. In 2010, he sold Styrol to a holding company that was part of Group DF of oligarch Dmytro Firtash.
    — Peopleʼs Deputy, Chairman of the Board of Concern Stirol OJSC;
  • Oleksandr Yaroslavskyi
    After the transfer of control over UkrSibbank to the international financial group BNP Paribas in 2006, Yaroslavskyi created and headed the investment group Development Construction Holding. He was the president and owner of the Kharkiv football club "Metalist". In February 2022, a person died in a road accident involving the Yaroslavsky motorcade. Since then, he hardly appears in public space.
    is a peopleʼs deputy, honorary president of the UkrSibbank.

Who was among the Russian oligarchs:

  • Vagit Alekperov — president of JSC Lukoil;
  • Petr Aven — president of JSC "Alfa Bank";
  • Oleg Deripaska — Chairman of the Board of Directors of the Basic Element and RUSAL companies;
  • Vladimir Yevtushenkov — Chairman of the Board of Directors of AFK Sistema;
  • Andrei Kostin — chairman of the board of JSC "Vneshtorgbank";
  • Aleksandr Lebedev — deputy of the State Duma, president and general director of JSC "National Reserve Bank";
  • Aleksei Miller — Chairman of the Board of JSC Gazprom;
  • Shafagat Takhautdinov is the general director of JSC Tatneft.

For two hours, they formally discussed cooperation within the framework of the Joint Economic Space

On April 20, 2004, the Ukrainian parliament ratified the agreement on the formation of the Joint Economic Space (JES) with Russia, Belarus and Kazakhstan, signed in September 2003 in Yalta. But Ukraine was not too keen on this community. This became evident during the meeting of the heads of states participating in the JES in Yalta in May 2004. According to its results, there were no specific agreements or agreements. So journalists began to call the JES "a joint economic prostration."
, and in fact the strengthening of Russian companies in the Ukrainian economy under the slogans of "joint opposition to Europe and America." Yuriy Boyko, the head of Naftogaz of Ukraine at that time, reported that from August 1, 2004, Russian oil would begin to be pumped through the Ukrainian oil pipeline "Odesa — Brody". However, Putin agreed on this with Kuchma at the beginning of the year. Boyko complained that the price of Russian oil in Ukraine suddenly became 10% higher than the world price. To which Putin started talking about the "tricky arithmetic" with Russian taxation.

View of the Livadia Palace, 2006.

Getty Images / «Babel'»

Putin tried to emphasize that cooperation with Ukraine is not limited to oil. And tried to start a conversation about high technologies. But they only agreed on the fact that the Ukrainian company UMC, which was bought out by the Russians last year, became the number one mobile operator in Ukraine.

Unexpectedly, the president of "Dynamo" Hryhoriy Surkis took the floor. He said that Ukraine turned to Poland with a proposal to submit an application for the joint hosting of the 2012 European Football Championship. But the Poles are dragging their feet with the answer, then maybe Russia will join the application instead of Poland. To which Putin angrily replied that "Russia will never be on a second guess."

It all ended with passing statements about "the preparation of a package of agreements within the framework of the JES, which will have enormous opportunities." And at the end, Putin almost traditionally declared that the "Western agents" are trying in every possible way to disrupt the integration between Russia and Ukraine.

What happened after the meeting: Russian political technologists, elections and the victory of the Orange Revolution

Yanukovychʼs election campaign began, led by a group of Russian political technologists headed by Gleb Pavlovskiy

Russian political technologist who oversaw the presidential elections in the Russian Federation in 1996 and 2000. Then he became an adviser in the Putinʼs presidential administration and was responsible, in particular, for the "Ukrainian direction". He resigned in 2012 and later criticized Putin. He died in February 2023 in Moscow.
. They used the administrative resources and control of the Presidential Administration over the main Ukrainian TV channels. In addition, they saturated the media space with black PR aimed at splitting Ukraine into the West and the East. It was then that billboards appeared about the "three types of Ukrainians" into which Yushchenko was allegedly going to divide the country.

"Three types of Ukrainians" leaflet from Yanukovychʼs PR staff, 2004.

Facebook

On the morning of September 6, 2004, Yushchenko began to complain of nausea, terrible headaches and stomachaches. In a few days, he was taken to an Austrian hospital, where he was diagnosed with toxin poisoning. Yushchenko accused the government of being involved in the poisoning. At the end of September, the General Prosecutorʼs Office opened a criminal case, closed it at the end of October, and resumed the investigation in December. The case still remains unsolved.

Due to his health, Yushchenko was unable to effectively conduct an election campaign. Three weeks before the elections, according to opinion polls, Yanukovych jumped ahead by several percentage points.

The meeting of Yushchenko, Kuchma and Yanukovych in the Mariinsky Palace in Kyiv, 2004.

Getty Images / «Babel'»

After voting on October 31, 2004, Yushchenko and Yanukovych were predicted to enter the second round. The second round of voting took place on November 21. And the very next day, Putin congratulated Yanukovych on his victory, although the official results appeared only on November 24. The Central Election Commission announced the victory of Yanukovych.

Already on November 22, 2004, a protest action began on Independence Square in Kyiv due to mass falsifications during the elections, which later turned into the Orange Revolution. Ultimately, the Supreme Court of Ukraine invalidated the results of the second round and scheduled a re-vote for December 26. According to its results, Yushchenko won. This is how the opposition came to power in Ukraine.

Supporters of Yushchenko on Independence Square in Kyiv during the beginning of the Orange Revolution, November 23, 2004.
Supporters of Yushchenko set off fireworks on Maidan Nezalezhnosti in Kyiv, a few days after the runoff of the second round of the presidential election, on December 28, 2004.

Supporters of Yushchenko on Independence Square in Kyiv during the beginning of the Orange Revolution, November 23, 2004. Supporters of Yushchenko set off fireworks on Maidan Nezalezhnosti in Kyiv, a few days after the runoff of the second round of the presidential election, on December 28, 2004.

Getty Images / «Babel'»

In an interview in 2021, the former Russian banker and former friend of Putin, Sergei Pugachev, recalled how Putin spent huge sums of money on Yanukovychʼs campaign in 2004. He was sure that he would have a pocket Ukrainian president. But these plans were hindered by "some people over there". At that time, Putin was very offended by Ukraine and immediately after Yushchenkoʼs victory, he began to put pressure on it, initially with the help of "gas blackmail"

After the victory of Viktor Yushchenko in the re-voting in the presidential elections of 2004, Russia first raised the prices for gas supplies for Ukraine, then there were accusations from it that Ukraine was committing "unauthorized withdrawal of gas." The pressure stopped in 2006, during the government of Prime Minister Viktor Yanukovych.
.

Translated from Ukrainian by Anton Semyzhenko.

We remember the most diverse events of Ukrainian history. And you remember to support Babel: 🔸 Buy Me a Coffee, 🔸 Patreon, 🔸 PayPal: [email protected].

Note:

In the previous version, among those present at the meeting from the Ukrainian side, Andrii Derkach was mistakenly indicated instead of Oleksandr Derkach.

Author:
Serhii Pyvovarov
Editor:
Glib Gusiev
Tags:
history

Noticed an error? Highlight it and press Ctrl + Enter — we will correct