Odessa Oblast: Governor Saakashvili’s superficial changes. OSW COMMENTARY NUMBER 196|February 2016

Two years after the Revolution of Dignity, Odessa Oblast, one of Ukraine’s key regions in economic and political terms, is still strongly polarised as regards its residents’ views on the future of their country. The political circles rooted in the Party of Regions have maintained their influence to a great extent due to increasing dissatisfaction with the central government’s activity and with the economic crisis which has strongly affected the public. Politicians linked to the ancien régime remain the most important political players. Some pro-Ukrainian circles had pinned their hopes for change in the region on the nomination of the former Georgian president, Mikheil Saakashvili, for governor of Odessa Oblast on 30 May 2015. At the beginning of his rule this politician made widely publicised promises to combat corruption, to improve the quality of the administration services, to develop infrastructure and to attract foreign capital. However, more than half a year has passed since he assumed office, and it is difficult to speak about any spectacular successes in reforming the region. Saakashvili has above all become a player on the national forum, supporting the presidential camp in their struggle with Prime Minister Arseniy Yatsenyuk and the oligarch Ihor Kolomoyskyi, among others. However, his nomination has made Odessa Oblast more important for Ukraine, above all in political and symbolic terms. This is because Odessa Oblast is the best manifestation of the condition of the Ukrainian state two years since the Revolution of Dignity – rudimentary reforms or no reforms at all, strong resistance to any changes from the administration, strong local political-business connections, the lack of consolidation among post-Maidan groups and corruption inherent in the system.

The consequences of the Western financial sanctions on the Russian economy. OSW COMMENTARY NUMBER 203/23.03.2016

Although they are not the deciding factor, the Western financial sanctions are nevertheless an important factor affecting the deteriorating economic situation in Russia. They have significantly undermined the opportunities which Russian companies have to attract foreign capital, thus contributing to the deterioration of their financial condition (which is particularly prominent in the case of energy firms subject to sanctions). Therefore, Russian businesses need more support from the state. However, this support is becoming more difficult due to the dramatic fall in oil prices – revenues from oil exports are the main source of budget revenue.