The Rise and Establishment of Oligarchs as Party Substitutes in Ukraine:an Assessment of the Post-Revolutionary (Orange) Years

Abstract

This article traces the rise and establishment of the Ukrainian oligarchs as “party substitutes” in the transitional period around the Orange revolution. It argues that the transition of the political system during that time constituted a specific environment of political uncertainty. In this context, the elected officials were more prone to seek an accommodation of interests beyond the traditional voter base, in order to maintain their po- litical relevance, reputation, safe exit and/or political immunity, rather than to aim for re-election. Ukrainian oligarchs, who had been engaged in com- plex ba lancing during the Kuchma presidency for years, and accumulated a wealth of material and organizational resources, became logical providers of such “political goods” to the Ukrainian transitional leaders. Thus, during the post-Orange years, the Ukrainian economic elites tipped the institutional balance from depending on government for krysha and immunity towards utilizing the government resources in their augmented role as party substi- tutes for personal economic gains.