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2017: The Ukrainian economy’s dismal year

Ukrainian economy continued to weaken as inflation rose and living standards fell

Alexander Mercouris

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In an article which I wrote about Ukraine on 13th December 2017 and in which I spoke of Ukraine’s continuing downward spiral I speculated that the situation might be even worse than it appeared since conditions in Ukraine meant that Ukraine’s already dismal statistics could no longer be relied upon.

This is of course always assuming that the statistics are being collected and collated properly, which in countries such as Russia was in the 1990s and such as Ukraine is now they never are.

That Ukraine’s statistics are not reliable has in fact been confirmed by studies of its population statistics, which show massive distortions intended to conceal how bad the country’s demographic situation has become.  There is no reason to suppose that the same distortions do not affect the economic data.

This speculation has now been given weight by an article carried by the official Russian news agency TASS, which all but says that Ukraine’s already terrible inflation statistics are unreliable and are being manipulated

The year 2017 saw two basic tendencies in Ukraine, namely an economic slowdown (to two percent from 2.3% in 2016) and growing inflation. Thus, inflation stood at 14.4%, whereas the state budget had a figure of 8.1%

However, actual inflation, according to economics expert Viktor Skrashevsky, was likely to be still higher. “Most likely, it was 17-18%,” he said, adding that official statistics underreported inflation rates “by means of manipulating calculation methods” as they had been updated exactly in 2017.

According to Skrashevsky, the government is deliberately deceiving people by saying that living standards will be raised in 2018 as the state budget for 2018 provides for no indexation of pension allowances while price growth seems to be inevitable. “Social standards are showing no upward tendencies while inflation is skyrocketing. The government is not taking proper measures,” he added.

Another gap between the government’s statements and reality is situation with the living wage, said Yuri Gavrilechko, an expert from the Public Security Foundation. Whereas nominal living wage from January 1 is 3,723 hryvnias (132 US dollars under the current exchange rate), minus taxes people will actually have not more than 3,000 hryvnias (106.4 US dollars). “Inflation will be some 18%, however it is not ruled out that the government may underreport these figures through manipulation,” he said.
The claimed growth rate of 2% for an economy like Ukraine’s which experienced such a savage contraction in 2014-2015 is already extremely disappointing.
For those who doubt this bleak picture, I would point out that one of Ukraine’s staunchest supporters, the Swedish economist Anders Aslund in a recent article published by the Atlantic Council has said essentially the same thing
A year ago, I expressed my hope that “2017 should be the year when Ukraine’s economy takes off.” It should have been, but it was not. In the last quarter of 2016, Ukraine’s GDP grew by 4.8 percent. Alas, in each of the ensuing four quarters, the growth rate declined and GDP grew by only 2 percent in 2017, slightly less than the cautious official projections. Ukraine is actually growing more slowly than the EU economy, and certainly slower than the global economy. Therefore, it is difficult to be optimistic about Ukraine’s economic growth in 2018.
After a combined GDP fall of 17 percent in 2014-15, which was caused by Russian aggression, a swift recovery to 6-7 percent growth should have been natural. Instead, Ukraine is competing with Moldova for the title of Europe’s poorest country. In 2007, Ukraine’s GDP per capita in current US dollars was 160 percent larger than Moldova’s. Now it is only 8 percent larger according to IMF statistics, and Moldova is growing by 4 percent a year.
If what the article by TASS says is correct and the rate of inflation in Ukraine is actually 17-18% not 14.4% then it is doubtful that Ukraine has even achieved the 2% GDP growth in 2017 which it is claiming.
The IMF describes GDP as “the measure of the monetary value of final goods and services – that is, those that are bought by the final user – produced in a country in a given period of time”.
Obtaining an accurate measure of prices and of price growth is therefore essential if GDP and GDP growth are to be measured properly.  If the inflation figures are badly wrong then the GDP figures will be also.
That in turn begs the question of whether there was actually any GDP growth at all in Ukraine last year.
As to that, with the reliability of the statistics now being questioned, I am in no position to say.
As for the reasons for Ukraine’s economic failure, here again is what Anders Aslund has to say
The worst part is that Ukraine’s economic shortcomings in 2017 were preventable. The two dominant factors that aggravated Ukraine’s economic performance in 2017 were the trade blockade and botched judicial reform. Last February, leading politicians in Samopomich (Self-Reliance) instigated a blockade against trade with the occupied territories in the Donbas, which disrupted heavy industry leading to stagnation of industrial production. This act alone probably cost Ukraine 2 percent of its GDP in the first half of the year.

At the same time, exports, investment, and consumption rose nicely, but then gross investment slumped from a healthy ratio of 24 percent of GDP in the second quarter to a miserable 16 percent of GDP in the third quarter. Domestic and foreign investors lost their rising confidence in Ukraine. Investors began to realize that the complex judicial reform that was underway would not cleanse the judicial system and thus reliable property rights would not materialize.

These tendencies only got worse later in the year. Businessmen often complained that the Prosecutor General’s Office and the Security Service of Ukraine (SBU) engage in aggressive corporate raiding. The only Ukrainian institution that really fights corruption, the National Anticorruption Bureau (NABU), came under heavy attack from the ruling coalition in parliament and the Prosecutor General’s Office for that very reason, further undermining the credibility of the rule of law in Ukraine.

On the subject of the economic blockade of the Donbass mounted by Maidan radicals last year, here is what I wrote about it at the time
Far right groups and people who the Ukrainian and Western media euphemistically call “activists” have initiated a blockade of coal imports from the Donbass, claiming that such imports are “treasonous”.  Since the Ukrainian energy system depends heavily on Donbass coal the result is to cause an energy emergency in Ukraine, risking another downward spiral in Ukraine’s economy.  The government however appears too weak to do anything about it.
As to the collapse of investment in the second quarter, the likeliest cause was the closure of Russian banks, not the botched judicial reform Aslund refers to.
Here is what I wrote about the bank closures just before they happened.

Gryzlov’s reference to “the Ukrainian authorities destroying their own banking system” refers to action Ukraine is now contemplating against Russian banksoperating on Ukrainian territory.  This follows protests by Ukrainian ultra right radicals who since 13th March 2017 have blocking access to the central office in Kiev of the local branch of Sberbank, Russia’s biggest bank.

Gryzlov’s claim that the action Ukraine is contemplating against Russian banks operating in Ukraine would destroy Ukraine’s banking system may be overstated.  Russian banks account for roughly 10% of Ukraine’s banking sector, supposedly holding $425 million in private customer deposits and a further $276 million in deposits held on behalf of business customers.  Though these are large sums, they do not look large enough to cripple the Ukrainian economy as a whole, even if the money in the deposits were to disappear along with the banks, which of course is unlikely.

Having said this, launching an assault on Russian banks just 3 months after Ukraine nationalised PrivatBank, its own largely bank, hardly looks like a good idea, and at a time of economic crisis it is certainly not a move best calculated to inspire confidence in Ukraine’s banking system even if talk of it triggering a cascade effect may be overstated.

Given that Russia remains the biggest investor in Ukraine’s economy it is completely understandable why action against Russian banks would have had a chilling effect on investment.

That after all is what was predicted, so it should not be surprising that it happened.

Aslund does claim some economic successes for Ukraine

These negative factors overshadowed the positive developments. Ukraine’s macroeconomic performance has been stellar. Finance Minister Oleksandr Danyliuk has kept the budget deficit below 3 percent of GDP. The National Bank’s leadership has nurtured the international gold and currency reserves that have increased to $18 billion, corresponding to four months of imports. Naftogaz won its gigantic arbitration case against Gazprom in Stockholm and made a substantial profit. The parliament adopted Acting Health Care Minister Ulana Suprun’s impressive health care reform.

Most of this however is simply wrong.

The budget deficit may in reality be greater than 3% of GDP if GDP in reality is smaller than is being reported (see above).

The $18 billion of foreign currency reserves is less than the $20 billion Ukraine must pay to its creditors between 2017 and 2020, and with reserves only sufficient to cover four months imports and with Ukraine’s trade deficit widening the margin of safety is dangerously small.

To the $20 billion Ukraine must pay its creditors between 2017 and 2020 must now be added the $3 billion the High Court has recently ordered Ukraine to pay to Russia and the $2 billion the Stockholm Arbitration Tribunal has ordered Ukraine’s Naftogaz to pay to Gazprom.

As to Naftogaz supposedly “winning” the case against Gazprom in the Stockholm Arbitration Tribunal, Aslund’s extreme antipathy to President Putin, Gazprom and to Russia blinds him to the reality that it was Ukraine which lost the case (see my discussion of the Stockholm Arbitration Court’s award and this discussion of the award by Gazprom’s Vice President Alexander Medvedev and by Paul Goncharoff on RT).

Even the sum of $18 billion Ukraine has managed to put away in its reserves is less impressive than it looks.

The reserves have been boosted this year by a payment of $1 billion from the IMF, and a further $3 billion Ukraine borrowed in the international money markets at very high interest.

However the $1 billion payment from the IMF was supposed to be just one tranche out of $4 billion which the IMF was supposed to give to Ukraine over the course of the year.

Here is what Anders Aslund has to say about why the extra $3 billion was not paid

Thanks to its improved macroeconomic situation, Ukraine’s government sold $3 billion of Eurobonds in September. Unfortunately, this sign of economic health tipped the political balance against reform. The International Monetary Fund (IMF) was supposed to give Ukraine credits of $4 billion in 2017. But since the government did not fulfill the IMF conditions, the country received only $1 billion, while it had to pay back $1.3 billion. The European Union canceled its last tranche of €600 million after Ukraine failed to fulfill four conditions.

At present, it looks doubtful whether either of these institutions will provide Ukraine with any funding in 2018, as their compassion has been replaced with distrust. The IMF is currently demanding five prior actions for further funding, namely the establishment of an independent anticorruption court, the legalization of private sales of agricultural land, the adoption of a privatization law, an improved pension reform, and adjustment of gas prices to market prices. The focal demand of all international creditors is an independent anticorruption court, since the court system has proved incapable of sentencing corrupt senior officials.

In reality the IMF almost certainly refused to provide Ukraine with the additional $3 billion not because Ukraine failed to perform its ‘reform’ obligations but because of the chilling effect of the High Court Judgment in London.

That threatens to declare Ukraine in a state of formal default, placing institutions like the IMF and the European Commission in unknown and potentially highly dangerous legal territory if they continue lending to Ukraine despite it.  I have discussed this previously at length for example here.

Since admitting this would be politically highly embarrassing given how much the IMF and the European Commission have loaned to Ukraine already, the IMF and the European Commission are hiding behind the fiction that it is Ukraine’s supposed failure to carry out its ‘reform’ programme which is causing them to stop lending.

The years 2016 and 2017 ought to have been economically favourable for Ukraine.

The weather was good, allowing for good harvests, the worst of the fighting in the Donbass was over, the country had restructured its debts and was obtaining support from the IMF and the European Union, and – most important of all – the oil price had more than halved, drastically reducing the country’s import bill and taking pressure off its budget.

Anders Aslund was not completely misguided when he predicted on 3rd January 2017 that 2017 would be Ukraine’s breakthrough year.

In truth 2016 and 2017 were for Ukraine as good as it is ever likely to get.

The favourable conditions of those years are now ending.

The situation in the Donbass is unresolved, the weight of debt repayment is once again increasing, and $5 billion of payments to Russia will shortly fall due.  Meanwhile IMF and EU lending has stopped.  Most serious of all, the oil price is rising again, and has now reached $70 a barrel.

As the TASS article I quoted at the beginning of this article says, Ukraine’s already very high inflation rate is likely to increase still further in 2018, putting even greater pressure on living standards and on the country’s economy and budget.

Even Anders Aslund is no longer optimistic about the future.

For once Anders Aslund puts his finger on the problem: Ukraine’s hopelessly dysfunctional political system, which makes rational decision making impossible

Sadly, the ruling coalition does not seem to be interested in a real independent anticorruption court or electoral reform even if legislation is under way. Absurdly, Ukraine’s politicians seem to be absorbed by the presidential election scheduled for May 2019. Instead, they should focus on securing real property rights so that Ukraine can boost its investment ratio to 25-30 percent of GDP and grow by 6-8 percent a year.

To which all I can say is that given Ukraine’s realities it is baffling Aslund ever expected otherwise.

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Fusion GPS founder trapped in legal jeopardy, bets on Democrat midterm win to bury Russiagate hoax (Video)

The Duran – News in Review – Episode 135.

Alex Christoforou

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Fusion GPS researcher Nellie Ohr and ex-FBI official James Baker are set to testify before Congress, but Fusion GPS co-founder Glenn Simpson is taking the Fifth.

The man at the center of the Russiagate hoax, Glenn Simpson, headed the espionage/PR smear firm Fusion GPS, which ordered the discredited and fake Trump ‘dossier’, which John McCain handed to the FBI, and which Buzzfeed News published as actual news.

Simpson has a lot of explaining to do, and now appears trapped in his “under oath” lies.

Simpson had previously testified under oath to the House Intelligence Committee that he never met with DOJ official Bruce Ohr, husband to Fusion GPS researcher Nellie Ohr.

Simpson also stated under oath that he never discussed with Bruce Ohr the Steele dossier prior to the October FISA application, which was used to spy on Carter Page and kick off the ‘Russiagate hoax’.

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the legal jeopardy entangling Fusion GPS co-founder Glenn Simpson. Republicans are close to breaking the ‘Russiagate hoax’ wide open, but Simpson is betting on delay tactics, and a subsequent Democrat midterm House victory, to save his ass from prosecution, and bury his involvement in a brazen attempt to discredit and remove an elected US President.

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According to Zerohedge, Fusion GPS co-founder Glenn Simpson may be in “real legal jeopardy” over inconsistent testimony given to Congress regarding his involvement in a massive counterintelligence effort against then-candidate Donald Trump, including the infamous Steele dossier.

Speaking with Fox News Maria Bartiromo, John Ratcliffe (R-TX) said…

“I’m not surprised that Glenn Simpson is taking the Fifth.”

“He probably should. He’s in real legal jeopardy. Very clearly someone is not telling the truth.”

Via The Daily Caller… 

Simpson, who investigated the Trump campaign on behalf of the DNC and Hillary Clinton presidential campaign, informed Congress on Thursday that he will plead the Fifth to avoid speaking with members of the House Judiciary and House Oversight & Government Committee in an interview set for Tuesday.

“The reason for that … is that Glenn Simpson had previously testified under oath to the House Intelligence Committee that he never met with Bruce Ohr or discussed with Bruce Ohr the Steele dossier prior to the October FISA application in 2016 or the 2016 presidential election,” said Ratcliffe, a member of the House Judiciary panel.

Via Fox News ‘Sunday Morning Futures’

Via Zerohedge

Ohr told the Judiciary and Oversight & Government Reform Committees in an August 28 interview that he met with Simpson in August and December of 2016 to discuss Fusion GPS’s opposition research into Donald Trump.

Bruce’s wife, Nellie Ohr, was hired by Fusion GPS for the anti-Trump effort at the time.

Simpson, however, told a different story to the House Intelligence Committee on November 14, 2017, when he said that he hadn’t been in contact with anyone from the DOJ or FBI until after the election. While he did acknowledge meeting with Bruce Ohr (meetings which would result in Ohr’s demotion), Simpson never disclosed his wife’s employment.

“Ohr, who has been demoted twice since December, was also in frequent contact with Christopher Steele, the author of the infamous anti-Trump dossier. Steele, a former British spy, was hired by Fusion GPS in June 2016 to investigate the Trump campaign’s possible links to the Kremlin.

Steele met with the Ohrs on July 30, 2016, a day before the FBI opened its counterintelligence investigation into the Trump team. Ohr met just after with FBI deputy Director Andrew McCabe.” – Daily Caller

Following the 2016 election, Steel and Ohr met over a dozen times, despite the FBI having blacklisted Steele for improper media disclosures concerning his work.

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Hillary and Holder are hurting Democrat Party with their rhetoric

Democrat-written opinion piece points out the fact that the party has radicalized so much it has left its own supporters behind.

Seraphim Hanisch

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Fox News ran an opinion piece written by Douglas E. Schoen early Sunday. It points out how radicalized the Democrat Party has become, and it is noteworthy because Douglas Schoen is a Democrat himself. He writes (emphasis added):

As Democrats campaign for the Nov. 6 midterm elections, they have plenty of legitimate criticisms to level at President Trump and Republicans who control the House and Senate. But Democrats were hurt in recent days by amazing and disgusting comments made by Hillary Clinton and former Attorney General Eric Holder.

As a Democrat, I want my party to win as many seats as possible in the House and Senate and to capture as many governorships and other state offices as it can. But the Clinton and Holder remarks do not advance that effort – they hurt it.

Former Secretary of State and 2016 Democratic presidential nominee Clinton said Tuesday that “you cannot be civil with” the Republican Party because it “wants to destroy what you stand for, what you care about.” She added that “if we are fortunate enough to win back the House and or the Senate, that’s when civility can start again.”

But even worse than Clinton’s comments were those of Eric Holder, who said at a recent campaign event in Georgia that Democrats should abandon the advice of former first lady Michelle Obama, who said at the 2016 Democratic National Convention that her party and mine should respond positively to negative attacks from the GOP.

Mrs. Obama said that “when someone is cruel or acts like a bully, you don’t stoop to their level. No, our motto is, when they go low, we go high.”

Holder argued just the opposite, saying: “When they go low, we kick them. That’s what this new Democratic Party is about.” He later said he wasn’t advocating violence – not literal kicking.

I beg to differ with both Clinton and Holder.

The only way the Democrats can regain the majority in either or both houses of Congress is by being civil, and pointing out the differences between Democrats and Republicans on the issues.

This is the real issue that should govern elections. Rather than the politics of popularity, one needs to consider policy points and which side offers points that are actually achievable, believable, concrete, desirable and specific. Calling President Trump and his administration names does not offer any constructive dialogue on policy matters.

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Conservatives and Trump supporters know this and it is precisely because of this that Donald Trump won the White House.

While the mainstream media (and here we can include Fox News largely) tried every possible way to ridicule Donald Trump’s candidacy, the people that actually listened to what he had to say found him very impressive on policy as much as his ability to speak as the voice of the people. The recent hysteria around Brett Kavanaugh’s nomination and confirmation to the Supreme Court was hysteria up front, driven by real policy fears from the deep core of liberals, as they know that this Justice is likely to form an effective wall against liberals ramming their agenda through the courts since their efforts fail legislatively so often.

Mr. Schoen continues:

As a centrist Democrat, the issue that strikes me most is the degree to which the national debt and the deficit are now out of control.

America faces uncertain and unstable times financially. Yet we are seeing a Republican-controlled Congress that has largely failed to do anything besides provide tax cuts for major corporations and the wealthiest individuals. This is by no means certain to have fundamentally altered the path of the economy or to provide economic growth.

Put another way, what the Trump administration has failed to do is to fix health care and cover pre-existing conditions more fundamentally; lead America in a fiscally responsible way; and pass tax cuts that help the average American. The Trump tax cuts have driven up the national debt and endangered funding for programs that benefit millions of people in our country.

So, here are policy points. Now we can begin to have a debate. Is Mr. Schoen right, or wrong in his information? This is far different than name-calling!

Democrats have long argued the need for a centrist agenda that focuses on:

  • Providing health-care benefits – whether private or public – to all Americans to cover expansively all pre-existing conditions.
  • Protecting the environment from the policies of the Trump administration that have only encouraged –and I dare say exacerbated – environmental degradation and climate change.
  • Promoting a pro-growth, inclusive agenda that seeks to put working people first, and the interests of Washington insiders and economic elites second. President Trump claims that he is doing this – he calls it “draining the swamp” – but this has not happened.

There is no justification for the angry rhetoric of Clinton and Holder, which only feeds into Republican claims that Democrats are an angry mob that can’t get over Clinton’s loss to Trump two years ago.

And Holder looks particularly bad because he was once the chief law enforcement officer of the United States, yet now sounds like he is effectively advocating what appears to be either illegal activities, or metaphorical initiatives that run counter to our traditions and our politics.

Hillary Clinton has said she won’t run for office again, but Holder has said he may run for president in 2020. Whoever the Democratic candidate turns out to be needs to be a responsible and respectable opponent – not one who calls for kicking the GOP or for incivility.

We should have learned from the Senate confirmation hearing for now-Supreme Court Justice Brett Kavanaugh that resisting for the sake of resisting doesn’t work. In fact, Democratic attacks on Kavanaugh may well have backfired, recent polls show.

The Democratic Party itself is lost now, without a message, a direction, a strategy, or agenda to confront a Republican Party that is seen as in many ways as having let the American people down.

We need change – but it must be constructive change. This Democrat believes that the comments that Eric Holder and Hillary Clinton made are wrong, counterproductive, and deserve to be rejected by the leadership of the Democratic Party.

Perhaps Fox News ran this opinion piece because Douglas Schoen is the first rational Democrat contributor to say anything in some time. However, it also appears that Mr. Schoen is a minority in his own party. It is a greatly logical approach to argue policy, as he has and as anyone who really understands American government should. But it is unclear as to whether the bulk of the Democrat Party even has reasonable people remaining.

If they do, it may well be that they are being betrayed by their party’s increasingly leftist and radical positions. The Party apparatus seems focused, but it also seems to have left people like Mr. Schoen behind.

Who knows? Maybe that will bring them into the Trump camp.

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Patriarch Bartholomew lifts anathemas on schismatics in Ukraine (VIDEO)

Most of the Orthodox world is in strong opposition to this move by Patriarch Bartholomew, whose motivations seem not to be of Christ.

Seraphim Hanisch

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The biggest news in the Eastern Orthodox world in recent times occurred on Thursday, October 11, 2018. The Ecumenical Patriarch of Constantinople, Bartholomew I, lifted the anathemas against two schismatic Ukrainian Churches and their leaders, paving the way to the creation of a fully independent Ukrainian national Orthodox Church.

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This announcement was given in English and is shown here in video with the textual transcript following:

“Presided by His All Holiness the Ecumenical Patriarch Bartholomew, the Holy and Sacred Synod convened for its regular session from October 9 to 11, 2018 in order to examine and discuss items on its agenda. The Holy Synod discussed in particular and at length, the ecclesiastical mater of Ukraine in the presence of His Excellency Archbishop Daniel of Pamphilon and His Grace Bishp Ilarion of Edmonon, Patriarchal Exarchs to Ukraine, and following extensive deliberations decreed (emphasis added):

First, to renew the decision already made, that the Ecumenical Patriarchate proceed to the granting of autocephaly to the Church of Ukraine;

Second, to re-establish at this moment the stavropegion of the Ecumenical Patriarchate in Kiev—one of its many starvorpegion in Ukraine that existed there always;

Third, to accept and review the petitions of appeal of Philaret Denisenko and Makary Maletich and their followers who found themselves in schism not for dogmatic reasons, in accordance with the canonical prerogatives of the Patriarchate of Constantinople to receive such petitions by hierarchs and other clergy of all the autocephalous Churches. Thus, the above mentioned have been canonically reinstated to their hierarchical or priestly rank, and their faithful have been restored to communion with the Church;

Fourth, to revoke the legal binding of the Synodal letter of the year 1686, issued for the circumstances of that time, which granted the right through economia to the Patriarch of Moscow to ordain the Metropolitan of Kiev elected by the clergy-laity assembly of his eparchy, who would commemorate the Ecumenical Patriarch as the first hierarch at any celebration, proclaiming and affirming his canonical dependence to the Mother Church of Constantinople;

Fifth, to appeal to all sides involved that they avoid appropriation of churches, monasteries, and other properties as well as every other act of violence and retaliation so that he peace and love of Christ may prevail.”

There are a few things that must be said about what this declaration is not before we get to the matter of what the points of actually are. The point of reference is the strict letter of the text above itself.

  • This is not a granting of autocephaly (full independent self-rule status) like the fourteen universally canonical Orthodox jurisdictions in the world. However, it is a huge step towards this status.
  • As far as Constantinople is concerned, Filaret Denisenko, the leader and “Patriarch” of the “Kyiv Patriarchate of the Ukrainian Orthodox Church” and Makary, the “Metropolitan” of the “Ukrainian Orthodox Autocephalous Church”, and all their faithful are now restored to communion. The statement says that this applies to “The Church” which may be trying to state that these two men (and all the faithful that they lead), are now in communion with the entirety of canonical Orthodoxy, but more likely, this may be a carefully worded statement to say they now are in communion with Constantinople alone.
  • There is an official call for the cessation of the violence directed against the Moscow Patriarchate parishes and communities, who are the only canonically recognized Orthodox Church in Ukraine, and who are also the largest by far in that country. The Kyiv Patriarchate and Uniate (Roman oriented) Greek Catholics in Ukraine have gone on record for seizing MP church properties, often by force, with neo-Nazi sympathizers and other radical Ukrainian nationalists. So this official call to cease the violence is now a matter of public record.

However, the reaction has been far less civil than the clergy wished for.

Ukrainian President Petro Poroshenko: “Expressing his view of the Moscow Patriarchate, Poroshenko added, “This is a great victory of the God-loving Ukrainian people over the Moscow demons, the victory of Good over Evil, the victory of Light over Darkness.”’

Perhaps this is the reason Metropolitan Onuphry of Ukraine (exarch under the Moscow Patriarchate) has been labeled an enemy of Ukraine and is now receiving death threats. Very civil.

Poroshenko’s statement is all the more bizarre, considering that it has been Ukrainian ultra-nationalists that have been violently attacking Moscow – related parishes in Ukraine. This has been corroborated by news sources eager to pin the blame on Russia, such as the U.K. Guardian.

The Union of Orthodox Journalists, based in Kiev and supportive of the Moscow Patriarchate, has been under intense cyber attack since October 11th, when the EP’s announcement was issued.

Ukrainian Orthodox Church (Moscow Patriarchate) Chancellor, Metropolitan Anthony of Boryspil and Brovary: “What happened at the Synod in Istanbul yesterday shocked the entire Orthodox world. It seems the Patriarchate of Constantinople is consciously embarking on a path of schism in world Orthodoxy. Patriarch Bartholomew ignored the calls of the Local Churches to convene a meeting of the primates to work out a common and conciliar solution to the Ukrainian Church issue and unilaterally made very serious but erroneous decisions. I hope the Orthodox world will give this action an objective evaluation… Having received the schismatics into communion, Patriarch Bartholomew did not make them canonical, but has himself embarked on the path of schism. The schismatics remain schismatics. They did not receive any autocephaly or tomos. It seems they have lost even that independence, although non-canonical, that they had and which they always emphasized.”

Metropolitan Rostislav of the Czech Lands and Slovakia:“The Orthodox world recognizes the only canonical primate of the Ukrainian Orthodox Church—His Beatitude Metropolitan Onuphry of Kiev and All Ukraine. This fact was repeatedly mentioned and confirmed by the primate of the Great Church of Christ His Holiness Ecumenical Patriarch Bartholomew on behalf of all present at the Synaxis of the Primates of the Local Orthodox Churches that was held in Chambésy (Switzerland) from January 21 to 27, 2016. Therefore, any attempt to legalize the Ukrainian schismatics by the state authorities should be strongly condemned by all the primates of the Local Orthodox Churches.

Patriarch Irinej of Serbia wrote two letters to the Ecumenical Patriarch, advocating that the provision of a new autocephaly is possible only with the consent of all local Orthodox Churches. According to Sedmitza.ru (Translation by Pravoslavie.ru),

“In these letters, it was very clearly stated that the granting of autocephaly cannot be the prerogative the Patriarchate of Constantinople alone, that new autocephalies must be created only with the consent of all the Local Orthodox Churches, as the Holy Synod of Antioch also said in its recent statement.”

Pat. Irinej also warned the Patriarchate of Constantinople against making such major decisions unilaterally, because “it will not bring harmony and peace to the Ukrainian land, but, on the contrary, will cause new divisions and new schisms.”

The Holy Synod of Antioch, the oldest Orthodox Church, and actually the very first place where the disciples of Christ were even called “Christians” weighed in on the issue as well and they had several things to say:

“The fathers examined the general Orthodox situation. They stressed that the Church of Antioch expresses her deep worries about the attempts to change the boundaries of the Orthodox Churches through a new reading of history. She considers that resorting to a unilateral reading of history does not serve Orthodox unity. It rather contributes to the fueling of the dissensions and quarrels within the one Church. Thus, the Church of Antioch refuses the principle of establishing parallel jurisdictions within the canonical boundaries of the Patriarchates and the autocephalous Churches as a way to solve conflicts, or as a de facto situation in the Orthodox world.

To summarize, this move by Constantinople is not being warmly received by many, many people. Most of the local Churches are on record giving their reaction to this process. In brief, here is the list most of the Local Churches and a one or two word summary of their reactions.

Patriarchate of Georgia: Unilateral action is wrong; Constantinople and Moscow must cooperate and find a solution together.

Patriarchate of Jerusalem: recognizes Ukraine as a canonical territory of the Russian Orthodox Church alone, as do all other local Churches

Patriarchate of Alexandria and all Africa: The Church does not bow to politicians. Moscow-led church is the only canonical Church in Ukraine.

Archbishop of Cyprus: Decries the Ukrainian situation but offered to mediate a discussion between Moscow and Constantinople

Bulgarian Patriarchate: Interference of the State in Church affairs leads to serious and negative consequences for both.

Polish Orthodox Church: Metropolitan Sawa called for a council of Orthodox ruling hierarchs to discuss this situation.

Estonian Orthodox Church: Condemns Constantinople’s actions in Ukraine.

Greek Archdiocese of America: Supports Constantinople’s actions in Ukraine.

The Orthodox Church of Greece (Metropolitan Seraphim of Piraeus quoted): “Schismatics, as we know, are not the Church, and communion with them is forbidden by the Divine and holy canons and the Apostolic and Ecumenical Councils. Why then this persistence of the Ecumenical Patriarch Bartholomew in recognizing schismatics as an autocephalous Church? To provoke schisms and divisions in the one universal and Apostolic Church of Christ?”

Russian Orthodox Church Outside of Russia (ROCOR): Ceased commemoration of Constantinople, ceased concelebration with Constantinople.

This issue has also rocked the secular geopolitical world.

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