Analyzing Corrosive Investments into Ukraine’s Economy as an Element of Hybrid Warfare

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CHAPTER 5. CORROSIVE IMPACT OF THE RF ON UKRAINIAN STRATEGIC ENTERPRISES IN THE PULP & PAPER INDUSTRY Of all the industries where enterprises were identified as strategic for the economy and security of the state, paper production does not seem to be an industry that is directly responsible for the national security of Ukraine, when compared to mechanical engineering, energy, or telecommunications. Thus, only 10 enterprises of the paper production industry were defined as strategic by the Government of Ukraine at different times. Technically, among those 10 enterprises in the paper industry, which were determined by the Government of Ukraine as strategic, three were apparently liquidated: Poninkivskyi Cardboard and Paper Mill JSC, Lutsk Cardboard and Paper Mill PrJSC and Dnipropetrovsk Paper Factory JSC. Later, it was established that the first two joint-stock companies were liquidated only “legally” in fact. Rather, the companies’ corporate structures were changed from JSC to LLC, and the profile remained unchanged. Thus, Poninkivskyi Cardboard and Paper Factory LLC and Lutsk Cardboard and Paper Factory in Ukraine LLC, which currently are not strategic, produce and export products and pay taxes to the state budget of Ukraine. At the same time, analysis of the influence of the Russian intelligence on destruction of Dnipropetrovsk Paper Factory JSC is a vivid example of an operation aiming to inflict damage along several operational lines of hybrid warfare (not only economic, but also political and informational), which will be discussed below. Therefore, the paper industry is considered by reviewers as one of the economic clusters where hybrid operations along the economic line should contribute to achievement of political goals of the aggressor country. The destruction of the paper factory caused Ukraine's dependence on RF not only in terms of importing paper, but also finished printed products.

*** In 2015, Dnipropetrovsk Paper Factory JSC was finally liquidated, although production stopped approximately back in 2010. An interesting feature of this factory is in the fact that it was in the orbit of an ex-member of the Party of Regions of Ukraine, collaborator Oleg Tsarev who acted in the interest of Russian authorities and special services, especially since 2014.

5.1. Company history, production volume and financial condition before bankruptcy The factory was founded in 1914 and produced various volumes of paper products until the collapse of the USSR. During the economic crisis in 1990–1998, the factory was not operational. In 1998, the enterprise resumed its work as a JSC (joint-stock company). In the 2000s, for the first time in Ukraine, the factory started producing offset paper weighing 60, 70, 80, 100 and 120 g per m.65

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IDENTIFYING AND ANALYZING CORROSIVE INVESTMENTS INTO UKRAINIAN ECONOMY AS AN ELEMENT OF THE HYBRID WARFARE

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Analyzing Corrosive Investments into Ukraine’s Economy as an Element of Hybrid Warfare by Center for Analytical Studies and Countering Hybrid Threats - Issuu