Focus on Ukraine, March 2-8, 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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