Focus on Ukraine, March 2-8, 2009

March 8, 2009

Overview of political events of the week

March 2

A letter with a consensus of views of President Viktor Yushchenko, Premier Yulia Tymoshenko and NBU Governor Volodymyr Stelmakh was submitted to the IMF.
The president himself informed of this after a meeting to coordinate the actions of Ukraine’s bodies of state government.
The head of state said the parties thereto agreed to an anti-crisis plan for the future. In particular, the parties reviewed the agenda according to which a working group made up of the president, the premier, the speaker of parliament, the NBU governor and the leader of the political opposition party will cooperate. The working group will review privatization policy for 2009 on March 9.

 

The Party of Regions said that through its obligations to the IMF the Ukrainian government is placing the burden of the country’s economic problems “on the shoulders of the poorest strata of Ukrainians”.
Specifically, the statement of the PoR reads that Ukraine is guaranteeing the IMF that it will adopt a law on pension reform that stipulates an increase in the pension age by 6 months every year.
The PoR says it will not allow such a law to be passed by the Verkhovna Rada. By the same token, the party will block an increase in gas prices to world levels as the government promised the IMF.

Premier Yulia Tymoshenko is confident that Ukraine will receive the second tranche of a loan from the International Monetary Fund. The premier positively assessed the results of a meeting of the country’s leadership concerning cooperation with the IMF. She said the government is seriously interested in peace, consolidation and cooperation between all branches of power.

March 3

IMF Managing Director Dominique Strauss-Kahn said in a phone conversation with Viktor Yushchenko that the letter the Ukrainian leadership sent to the International Monetary Fund increases the chances that Ukraine will receive the second tranche of the loan.
The head of state phoned Strauss-Kahn to inform her of the coordinated position that Ukraine’s highest officials reached on Monday.

The Verkhovna Rada dismissed Volodymyr Ohryzko from the post of foreign minister. The decision had the support of 250 members of parliament.
Although 49 members of the YTB supported the Communist Party and the Party of Regions in voting, at the previous meeting of the YTB faction they agreed not to vote for in favor of Ohryzko’s dismissal.
President Yushchenko described this dismissal as untimely and groundless and the decision of the VR as one that tips the scales of foreign policy.

Commenting on the voting of the YTB party Premier Tymoshenko, on the one hand, expressed her disappointment that a part of the YTB faction voted in favor of the minister’s dismissal. On the other hand, she noted that Ohryzko did not meet her criteria as foreign minister.

Members of parliament took a 50% pay cut. Up until now a deputy had a monthly pay of UAH 17,000. A total of 374 deputies supported this resolution.
Besides that, the salaries of the president, the premier, ministers, heads of executive bodies and their assistants were also cut. This is a way of saving money in the current global economic recession. This resolution will be in effect until next year.

The SBU detained Taras Shepytko, Assistant Director of Energy Customs.
Premier Yulia Tymoshenko said he was detained for not clearing 11 billion cubic meters of Russian gas for UkrRosEnergo. The premier said this gas was intended for Naftogaz Ukrainy. Meanwhile, customs officers said all the “controversial” gas was officially registered to the benefit of Naftogaz.

March 4

The Verkhovna Rada summoned acting head of the SBU Valentyn Nalyvaichenko to show up in parliament to report on the detainment of Taras Shepytko, Assistant Director of Energy Customs under the State Customs Service.
SBU Deputy Chief Valeriy Khoroshkovskiy showed up in the parliament on behalf of Nalyvaichenko. He said the customs officer was detained for the theft of more than 6 billion cubic meters of gas, adding that top leaders in the government were involved in illegal gas fraud.

Unidentified individuals wearing camouflage outfits and masks broke into the head office of Naftogaz Ukrainy. Later it was learned that these were SBU officers that raided the office to confiscate gas contracts with Russia and other documents in the course of a criminal investigation into misappropriation of gas by employees of the company.
VR Deputy Andriy Portnov (YTB) informed that all Ukrainian gas has been sequestered in accordance with the investigator’s resolution. Portnov also accused Khoroshkovskiy of having business interests with Dmytro Firtash, the co-owner of the Swiss intermediary RosUkrEnergo.

SBU Deputy Chief Valeriy Khoroshkovskiy said that Naftogaz misappropriated transit gas that Gazprom sold to the intermediary company RosUkrEnergo and that SBU employees raided the premises of Naftogaz on legal grounds and by the consent of the Prosecutor General’s Office.
They are executing the resolution of the investigative body that is conducting a criminal case filed on March 2 into employees of the company appropriating 6.3 billion cubic meters of transit gas worth more than UAH 7.4 billion through a premeditated conspiracy.

Presidential Spokesperson Iryna Vannikova informed that President Viktor Yushchenko fully supports the SBU investigation into a criminal case on suspicion of employees of Naftogaz Ukrainy and customs officers committing a high-level government crime. She added that the president urged the SBU to refrain from any illegal actions.


The Russian company Gazprom expressed its concern over the situation connected with the SBU conducting an investigation in the headquarters of Naftogaz Ukrainy
. The company is hoped that this will not have an impact on the company fulfilling its obligation of full and timely payment for gas delivery in February.

Premier Yulia Tymoshenko said in an interview for the French newspaper Le Monde before her official visit to France that early presidential elections must be held in order to put an end to the political instability that is undermining attempts to save the country’s economy. Tymoshenko is confident she will be the country’s next president and also told Le Monde that she is interested in amicable relations with Russia despite certain actions of the latter that she feels inappropriate.

Members of the YTB said they could reinstate Volodymyr Ohryzko in the post of foreign minister on one condition – he must make a personal apology to the premier for tarnishing her reputation and that of the government on the whole.
As a reminder, on February 14 the Ministry of Foreign Affairs of Ukraine instructed ambassadors of Ukraine in EU countries, the U.S., Russia and other countries to immediately inform high-ranking officials of these countries of the “unscrupulous” actions of Premier Yulia Tymoshenko.

March 5

Former Minister of Foreign Affairs Volodymyr Ohryzko asked the president to not submit his candidacy for this post for consideration by the members of parliament. Ohryzko underscored that he will not take up this post again, even if he is given an apology.
The former minister sent to the press an emotional letter in which he wrote that Premier Yulia Tymoshenko does not need a subordinate that stands up for national interests. Meanwhile, the pro-presidential faction Our Ukraine – People’s Self-defense proposed that the resolution on dismissing Ohryzka be abrogated as it was approved in violation of the law.

March 6

230 members of the Verkhovna Rada voted in favor of appointing Valentyn Nalyvaichenko the new head of the Security Service of Ukraine (SBU). Among them were 149 members of the YTB, 61 members of the OUPSD and 20 members of the Lytvyn Bloc.
The VR also adopted the resolution charging the head of the SBU to review staffing policy. According to the resolution, the head of the SBU is to present a report “on the state of functioning and staffing of the SBU” at a plenary session of the VR on March 17.

Borys Tarasiuk may once again be appointed Ukraine’s Minister of Foreign Affairs. YTB member Serhiy Mishchenko said the coalition will submit his candidacy to the president.
Mishchenko said the coalition council will submit the application. At the same time, Tarasiuk thinks the chances of the president submitting his candidacy for this post are slim to none. Tarasiuk said his views on Ukraine’s foreign policy considerably differ from those of the president.
Tarasiuk held the post of Minister of Foreign Affairs under three governments headed by Yulia Tymoshenko, Yuriy Yekhanurov and Viktor Yanukovych.

 



 


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