Russia/Ukraine: Pipeline Conflict Resurfaces

PRAGUE, Czech Republic -- With the December deadline for signing a new gas-supply contract approaching, Ukrainian and Russian officials have been holding preliminary meetings to sound each other out.

Mikhail Fradkov no doubt knew that it would not require a great deal of effort to interest Gazprom in gaining some control over Ukraine's pipeline system.
As in past negotiations, the issue is not only the price Ukraine will pay for gas in 2008, or how much Russia will pay Ukraine in transit fees -- the major question is about who will control the vital Ukrainian gas-pipeline network to Europe, an asset that Russia's state-owned gas monopoly, Gazprom, has persistently sought to obtain.

Unfinished Business

Speaking at a press conference with visiting Ukrainian Prime Minister Viktor Yanukovych in Moscow on June 23, Russian Prime Minister Mikhail Fradkov referred to the construction of the Bohorodchany-Uzhhorod pipeline, a partially completed 240-kilometer extension of the planned Novopskov-Uzhhorod main-trunk pipeline that would transit natural gas from eastern to western Ukraine.

The extension has a projected annual capacity of 19 billion cubic meters of gas and will cost about $560 million.

Ukraine views the completion of this extension as a strategically important project that would increase the throughput capacity of its gas-transportation system to Europe.

However, in April, the deputy chairman of the management committee of Russia's state-controlled gas monopoly Gazprom, Valery Golubev, said that construction of the extension was unjustified because there is no demand in Europe for additional Russian gas.

And in a revealing statement made in May, Golubev said that "if politicians make a decision to establish closer economic ties between our countries, this will guarantee lower gas prices. However, if the politicians decide to separate these ties, then the price of gas for Ukraine will be same as for Germany. Does Ukraine really want this? I want to stress that Russia does not need this."

In his June 23 comments, Fradkov downplayed Golubev's threats. "The issue of the Bohorodchany-Uzhhorod pipeline is one of the links in the broader question of deeper cooperation between the countries in the gas sphere," he said. "In this context we are trying to generate interest in Russian companies, particularly Gazprom, to take part in the Ukrainian gas-transportation system."

Fradkov no doubt knew that it would not require a great deal of effort to interest Gazprom in gaining some control over Ukraine's pipeline system, but by linking the completion of Bohorodchany-Uzhhorod to that issue he pushed the Ukrainian side into a corner and set the stage for a new confrontation.

Stage Set

Yanukovych was noncommittal in his response. He said the project has very good prospects and that a decision would be reached this autumn, adding that Ukraine would take into consideration its own interests as well as those of Russia, Central Asian states, and European consumers.

The joint venture to build the Novopskov-Uzhhorod pipeline, at a cost of $2.2 billion-2.8 billion, was formed in 2004 between Naftohaz Ukrayiny and Gazprom. It was originally scheduled to be completed by 2009, but construction was postponed from 2005 to February 2006. Since then little, if anything, has been done.

The pipeline, if and when completed, would give Ukraine the capacity to increase by 25 percent its flow of Russian gas to Europe -- a significant money-making proposition for Kyiv.

Ukrainian planners also believe that Novopskov-Uzhhorod would insure the country against breakdowns of the aging Urengoi-Uzhhorod pipeline, parts of which have been in operation for 20-30 years.

Fradkov has not been the only one to set the stage for confrontation.

In February, Russian President Vladimir Putin stirred up a hornet's nest when he publicly announced that the Ukrainian government had approached Russia with the idea of unifying the countries' respective gas-pipeline networks.

Putin hailed the overture as a "revolutionary development" that was in the "interest of both countries."

In response to Putin's announcement, the Ukrainian parliament almost unanimously passed legislation forbidding the sale or transfer of ownership of Ukraine's trunk gas pipeline to another country. An investigation was also launched to determine just who may have been responsible for making such proposals.

Ukrainian leaders have not responded to Fradkov's latest offer, but it is becoming evident that Ukrainian President Viktor Yushchenko is willing to counter Russia's latest attempt to gain influence over Ukraine's gas pipelines by initiating an investigation into the operations of UkrHazEnergo, a joint venture between Ukraine's Naftohaz and RosUkrEnergo, the Swiss-based middleman which holds the monopoly for providing Ukraine with gas from Central Asia.

UkrHazEnergo's participation in the Ukrainian domestic gas-distribution system was essentially forced upon Ukraine by Gazprom during the January 2006 gas dispute with Russia.

Central Figure

Addressing a meeting of the National Security and Defense Council in June, Yushchenko complained about the role played by Ukrainian businessman Dmytro Firtash, whose company Centragas owns 50 percent of RosUkrEnergo, (the other 50 percent is owned by Gazprom) and thereby exerts substantial influence on UkrHazEnergo's activities.

According to a confidential memo summarizing this meeting, Yushchenko stated that the Security Service of Ukraine (SBU) believes that UkrHazEnergo's monopoly on gas distribution to industrial clients in Ukraine could be contributing to Firtash's growing presence in Ukraine's chemical industry.

Firtash owns two important chemical plants in Ukraine -- an industrial soda plant in the Crimea (Crimea Soda) and a fertilizer plant (Rivnoazot). In addition he controls Crimean Titan, a titanium plant.

Yushchenko also expressed alarm about a growing conflict between UkrHazEnergo and the Industrial Union of the Donbas (IUD) over the price UkrHazEnergo was charging the IUD for gas. The implication being that UkrHazEnergo was price gouging the IUD in order to enrich Firtash and Gazprom.

In 2006 Firtash received $365 million from RosUkrEnergo as his share of 2005 profits. Some in Kyiv believe this to be an extravagant sum for a principle of a company that does not own any gas fields, pipelines, or other assets.

By comparison, Gazprom Chairman Aleksei Miller receives a salary $1.4 million in addition to $1.4 million in stock options, according to the Russian website gazeta.ru.

Source: Radio Free Europe/Radio Liberty

Horton In Ukraine With Team USA

NORMAN, OK -- Oklahoma’s Jonathan Horton will be part of the six-member U.S. squad that will travel to Kiev, Ukraine, to compete against teams from Russia and the Ukraine on June 30.

Oklahoma’s Jonathan Horton
Horton will be joined by OU head coach Mark Williams who will serve as an assistant coach for the American team.

The format for the international meet will be the same as the World Championship finals and the Olympic Games. Three gymnasts from each team will compete on each apparatus and all three scores will count towards the team total.

“Jon hasn’t competed under these rules yet so it will be great experience for him,” Williams said.

Horton was a member of the 2006 U.S. World Championships team but did not advance to the team or individual finals. With his sights set on a return to Worlds in 2007 and a possible berth on the 2008 U.S. Olympic Team, Horton says he knows the value of this competition.

“It’s really intense knowing that your score is going to count if they put you on the floor,” Horton said. “There are going to be a lot of nerves that I’m going to have to know how to control.

“Competing against the best in the world from Russia and Ukraine will be a great experience. It’s definitely a step towards the Olympics and I’m looking forward to figuring out how to deal with that pressure.”

The other members of the U.S. team include Horton’s 2006 World Championships teammates Alexander Artemev and Kevin Tan. Joseph Hagerty, Tim McNeill and Sean Townsend round out the American squad with David Durante as the alternate.

Horton finished second at the recent U.S. National Qualifier, June 7-9, in Colorado Spring, Colo.

The Houston, Texas, native tied for the top spot on the floor exercise and finished third on the still rings and fourth on both the vault and pommel horse.

In his most recent international competition, the Tyson American Cup on March 3, Horton earned an all-around score of 92.75 to earn his second consecutive Cup title.

He became the first male gymnast to win back-to-back Tyson American Cup titles since the USA’s Blaine Wilson won three straight from 1997-99.

Source: Sooner Sports

Constitutional Chaos

KIEV, Ukraine -- Eleven years ago on June 28 Rada members worked through the night to reach a compromise deal that resulted in the adoption of the fundamental law of the land, independent Ukraine’s Constitution.

Verkhovna Rada deputees sign the constitution on June 28, 1996.
Ukraine had reached a milestone in its development as a democratic state. The document was praised by international constitutional experts for the guarantees of individual rights it provided for Ukraine’s citizens.

Eleven years later, Constitution Day is celebrated as a national holiday, but the current state of the country’s charter leaves little to cheer.

The Constitution has been torn and tattered in the process of political reforms that were supposed to transform the country from a presidential-parliamentary republic into a parliamentary-presidential one.

Instead, the country has been thrown into legal chaos since former President Leonid Kuchma single-handedly announced the reforms five years ago.

More recently, the Constitutional Court was discredited as an institution by politicians looking to use the bench as a political instrument, and by its judges, who proved unable to serve as an independent check on the powers of the executive or legislative branches.

Problems with the Constitutional Court began in 2005, when a majority of judges ruled that any fundamental changes to Ukraine’s political system must be submitted to and approved by a national referendum.

Despite the ruling, the country’s politicians proceeded with the reforms. Last August, the Rada under speaker Oleksandr Moroz’s leadership even passed a bill prohibiting the Constitutional Court from ruling on the reforms – a clear violation of the democratic principle of a tripartite division of powers.

The preamble to the Constitution clearly states that the law of the land is guided by the 1991 Declaration of Independence that was confirmed by the Dec. 1 referendum that year.

The Rada formally declared Ukraine’s independence, but that decision was validated only after it was submitted to and approved by a national referendum.

Ukraine’s elite appears to have agreed that early Rada elections will resolve the political crisis. But the deeper issue of political reforms that spawned the crisis remains unaddressed.

The way of restoring Ukrainian’s faith in the institutions of government and in the very notion of democracy is clear: Let the people decide what political system suits the country best.

Source: Kyiv Post

In Ukraine, Four Steps To Democracy

WASHINGTON, DC -- The Ukrainian parliament has wound up its life and set the stage for early parliamentary elections on Sept. 30, four years ahead of schedule.

Viktor Yushchenko (background) and Viktor Yanukovich (foreground).
The elections could give Ukraine's revolution -- recently mired in crisis -- new momentum and have an impact elsewhere in the post-Soviet space.

President Viktor Yushchenko and Prime Minister Viktor Yanukovych agreed to hold early elections after a tense two month stand-off, caused by Prime Minister Yanukovych's attempt to diminish the powers of the president and reverse many of Yushchenko's pro-reform and pro-Western policies.

Yanukovych and his allies removed checks and balances by seeking a constitutional majority that threatened to sideline the president and create a powerful prime minister.

Yushchenko's decision to dissolve parliament and call for new elections demonstrated a resolve and decisiveness that had been often lacking in the past.

Yushchenko had little choice. He had to reshuffle the deck or watch his authority -- and Ukraine's hopes for democratic reform and integration into Euro-Atlantic structures -- become progressively emasculated and diminished by Yanukovych.

Four steps are crucial if the crisis is to contribute to democratic consolidation in Ukraine:

First, all sides need to adhere to the compromise agreements that have been reached. These compromises should ensure that the checks and balances of the reformed parliamentary constitution are not again threatened by the pro-government coalition attempting to forcefully usurp monopoly power by seeking to establish a constitutional majority.

Ukraine cannot continue to have periodic breakdowns and crises every six months. The nation's four crises since the Orange Revolution threaten to bring on Ukraine fatigue by Western governments giving up hope in Yushchenko's ability to promote democratic change in Ukraine.

Second, if Ukraine's 2007 elections are recognized as having been held in a "free and fair" manner by international organizations, as last year's elections were, the outcome should be accepted by all sides. Early elections will permit a new parliament to begin office with a democratic mandate built on a consensus on domestic and foreign policy goals enshrined in law.

Yushchenko needs to act decisively following the elections by ensuring a coalition and government is in place, thereby not repeating last year's six-month post-election crisis.

Third, all sides in Ukraine need to adhere to the June 2005 recommendations of the Council of Europe's legal advisory board, the Venice Commission, and to join the president's constitutional commission.

The Venice Commission recommended a range of improvements to the reforms in imperative mandates, inter-institutional relations, human rights and the constitutional court. These reforms, the Venice Commission said, would "improve the state of democracy and rule of law in their country."

Fourth, active Western support will be important. The crisis in Ukraine provides an opportunity to consolidate the democratic gains of the Orange Revolution through building democracy at home and integrating Ukraine into the Euro-Atlantic community of democratic nations.

If fair and free elections are carried out, the European Union should quickly move to negotiate a free trade agreement with Ukraine following its entry into the World Trade Organization. NATO should continue to hold out the offer of a membership action plan that Ukraine may find appealing.

The West has a strong political stake in Ukraine's success. Ukraine's evolution will have a significant impact on the Western regions of the post-Soviet space.

If democracy can be consolidated in Ukraine, the pro-Western orientation of Georgia and Moldova will be strengthened, while Alyaksandr Lukashenko's autocratic rule in Belarus will be weakened.

But if Ukraine's democratic reforms fail, the prospects for reform and closer ties to Euro-Atlantic structures in all three countries will be set back, perhaps irrevocably.

Russia's political evolution could also be affected. If Ukraine's Orange Revolution gains new momentum, it will be harder for Russian President Vladimir Putin's successor to continue the progressive backsliding on democratic reform that has been a hallmark of Putin's rule.

Source: Washington Post

UEFA Play Down Kiev Stadium Concerns

BERNE, Switzerland -- European soccer's governing body UEFA has denied reports that it is concerned about the redevelopment of the Kiev stadium chosen to host the 2012 European championship final.


In a statement released on Monday, UEFA said reports that the organisation had cast doubt on Ukraine's ability to co-host Euro 2012 alongside Poland because of delayed progress at the Olympic Stadium were "well wide of the mark".

The statement added that UEFA was "not unduly concerned over the detailed issues surrounding the stadiums for UEFA Euro 2012".

Ukraine's soccer federation last week posted a report on its Web site that it said came from a meeting at UEFA's Swiss headquarters in Nyon in which UEFA officials expressed concern over failure to start renovation at the stadium.

UEFA said on Monday that the purpose of the Nyon meeting had been "to have a global review of the situation in all crucial operational areas" and had not been focused on the stadium issues in particular.

Source: Reuters UK

Jewish Writer Takes On Kiev Gangsters In Semi-Autobiographical Book On Ukraine

KIEV, Ukraine -- When Alex Frishberg ditched his job as an attorney in Washington in 1991 and moved back to his native Kiev, he found that the quiet, cozy city of his childhood had transformed into a melting pot that belched out big-time racketeers and clueless bureaucrats. So he wrote about it.

Alex Frishberg, seated at center, poses with friends dressed as characters in his semi-autobiographical novel "The Steel Barons."
"The Steel Barons," released this spring in English and Russian, is Frishberg's semi-autobiographical novel. It tells of a young American lawyer who gets caught up with black marketeers and ex-KGB mercenaries in the maelstrom of a newly independent Ukraine, where the old rules no longer applied and new ones had yet to be invented.

Frishberg was 11 when his family left Ukraine for St. Louis during the first big wave of Soviet Jewish emigration. He returned at 28 during the second, much larger exodus of Jews from Ukraine. He became part of a small community of Jews born in the former Soviet Union and raised abroad who now were bucking the outgoing tide and returning "home" for fortune and adventure.

"I wrote the book from the perspective of a foreigner," Frishberg said at a recent party launching his book in Kiev. "I had landed in a place that was very different from Washington, D.C., and I started taking notes about what was going on around me."

The book, fast paced and brimming with dark humor, "describes the lives of ordinary people and the systematic corruption they face on nearly every level," Frishberg says in the author's notes.

Much of the book is true, Frishberg said, though he changed many of the names – per his grandmother’s advice – "so I could live a little longer."

"Sasha," the ex-KGB mercenary the American lawyer hires for protection, was based on an actual security man Frishberg met. The man made money on the side by offering protection and debt collection to rich businessmen, until a shootout blinded him in one eye.

And the novel's main female character is based on Frishberg's wife, Lena, whom he met 10 years ago. They live in Kiev with their 3-year-old son, Daniel.

Speaking to JTA after his book launch, Frishberg said his parents, both psychiatrists, wanted him to become a doctor. Instead he studied English at the University of Missouri and earned a law degree from the Washington University School of Law.

"By 1991, I was on the make at Hogan & Hartson, one of the largest law firms in Washington, D.C.," he said.

But he was sure his career would be more exciting in Ukraine, where, as he writes, the "economic revolution made overnight billionaires out of well-connected individuals" while making paupers out of the rest.

What he saw in Kiev was shocking, Frishberg said.

In "Life on the Outpost," one of a dozen short stories he penned since returning to Ukraine, he wrote: "These days few can afford to pay bribes to state doctors, and fewer still get medical supplies like antibiotics and disposable syringes. Each winter scores of pensioners die quietly in their apartments, completely unnoticed for lack of basic medical care. To make things worse, the authorities here do not bury people anymore; the land plots are too expensive and the caskets are out of [the] price range of most, if not all, pensioners."

"Life on the Outpost " won an English-language fiction prize from a Kiev-based agency.

"The Steel Barons " may win wider recognition for Frishberg, who freely acknowledges that he would be pleased to achieve fame as an author.

For now he spends his days at Frishberg & Partners, a corporate law firm he established upon his return to Kiev. He and his colleagues have spent 15 years dealing with the countless obstacles national and foreign companies face as they try to navigate the turbulent waters of local business practices.

Frishberg said that eradicating the racketeers was one of Ukraine's biggest achievements of the 1990s. Many were forced to leave for America or Israel, he said. One notable case he cited is that of Semyon Yufa, a former waiter who swindled thousands out of their money through a pyramid scheme and fled to Los Angeles in 1998, having failed in his bid to enter the Ukrainian Parliament and thus protect himself from criminal prosecution.

But like many other former gangsters, Yufa's troubles followed him: His offices in Los Angeles were bombed with Molotov cocktails.

"From what I heard, he's been in Israel ever since," Frishberg said.

Most of the racketeers who remained in Kiev eventually were imprisoned or killed. Many did not come out alive from prison. Those who did no longer could muscle people around, and times had changed.

Some of the lesser racketeers went into politics and, through their government connections, bought out state-owned enterprises ranging from soft drink plants to cement factories to regional power grids – anything they could get their hands on. The local media is full of their stories. Because steel mills are responsible for about a third of the nation's exports, many of them became true steel barons, much like their American counterparts of the early 1900s.

The 2004 Orange Revolution, when public demonstrations against electoral fraud brought President Viktor Yushchenko to office, gave hope for a better life to many people. But not all those hopes have been realized.

"Unfortunately, things have not changed much," Frishberg said. "To get the root of corruption, we have to understand its full extent."

"A normal life is all we ever wanted," he writes in "Life on the Outpost."

He writes: "Something to eat, sometimes to laugh. But the criminals have taken over the government. Billions of dollars are siphoned off per advice of the foreigners, only to end up in the pockets of the thieves who preside over us. Just look at their shiny new cars and those gold watches."

Source: JTA

Lake Monster Terrifies Villagers In Ukraine

LUKIV, Ukraine -- A huge monster with the head of a serpent and the body of a crocodile is rumored to lurk at the bottom of a lake in Western Ukraine.

The Loch Ness Monster Exhibition.
The monster has been frightening residents of a nearby village for more than one hundred years. Now and again the gruesome creature comes ashore and attacks domestic animals. At times it harms humans too. As a rule, locals steer clear of the lake. Researchers keep gathering information in an attempt to unravel the lake mystery.

Quite a few bloodcurdling stories about the monster of the lake circulate through the village. It is said to attack animals and humans. The hideous monster is also said to moan and wheeze at night. The local elderly say that the “lizard” was last seen on the lake shore some 30 years ago.

“The monster assaulted Stepan, a groom. He was tending horses near the lake on that day. Actually, Stepan had too much of a drink so he stretched himself out on the grass and fell asleep. A crocodile-like creature crept on to the bank out of the water, moved up to the guy, and sniffed at him. Mushroom pickers came from the wood at the very moment. They saw that thing and started shouting out loud to scare it off. The monster reportedly opened its month and there wasn’t a single tooth inside,” said the 84-year-old Ivan Kovalchuk, a resident of the village.

It is believed that the first stories about the monster hiding in Lake Somin near the village of Lukiv appeared at the turn of the 19th century. The reference to the monster can be found in a report sent by a village chairman to Warsaw. He wrote that the villagers had not paid a tax on fishing because of a “serpent” which lived in the lake, eating the fishes. The unknown predator also harassed the livestock and locals, said the letter. The authorities had plans to dispatch an expedition to the area to investigate the case. But those plans fell through due the outbreak of World War I.

The German military made an attempt to solve the mystery of Lake Somin during World War II. The Germans used diving equipment and nets for exploring the bottom of the lake. However, their efforts to capture the creature ended in failure, reports Gazeta Po-ukrainski.

Some researchers believe that the lake monster is a huge cat fish. Lots of cat fishes can be found in numerous lakes and ponds located in the area. “Cat fishes can use their big strong fins for dragging themselves ashore. Several cat fishes caught around here were really big. They weighed about 100 kilos each, measuring up to two meters in length,” said Valentin Lyupa, a researcher of “the Somin Monster.”

Other scientists claim that the creature could be a prehistoric freshwater shark which somehow survived the Ice Age. “The archeological finds discovered in the area can back up this version. There’re many reports on fossilized teeth and bones of ancient fishes dug out by locals in their gardens,” said Valentin Volontai, an adviser with the Institute of Archeology under the Ukrainian Academy of Sciences.

Lake Somin is located in Polessie lowlands, which formed at the bottom of an ancient freshwater sea. About 300 lakes scattered around the area are the remainders of the sea. Those karst lakes interconnect by means of underground passages and rives.

Lake Somin is 56 meters deep. A number of karst caves lie at its bottom. That is where the monster lies in wait, according to locals. The Polish researchers are reportedly going to give it another try and solve the lake mystery. A special research party is expected to commence work on location in the near future.

Source: Pravda

Lessons From The Orange And Silk Revolutions

KIEV, Ukraine -- Whatever has happened in the Ukraine since the Orange Revolution in November 2004 has a resonance in Thailand in the past two years, especially after the coup last September.

Tent city on main street Khreshchatyk during the Orange Revolution
After the euphoria of the Orange Revolution, harsh reality set in. After the leaders and allies took control of the country, they immediately broke their promises.

Instead, they spent time fighting for their own vested interests, easily forgetting why there were there in the first place. During the first six months, the government of Viktor Yushchenko could have proceeded quickly, if he had wished, with pledges to eradicate corruption and initiate economic and social reforms including tax and judicial reforms.

Most importantly, he failed to deal with the criminal clans and put them behind bars.

Instead, he chose to quarrel with his co-leader Yulia Tymoshenko. He dismissed her from the post of prime minister and later on gave rewards to his arch rival, Viktor Yanukovych.

So, for the past two and half years, Yushchenko has been too involved in maintaining his power, dealing with fractional and regional politics.

Now, it is too late, the momentum is past. "It would be tough for the government to regain such strong support," says Yevhen Bystrytsky, executive director of the International Renaissance Foundation.

Interviews with several leading journalists here in the Ukraine echo the sentiment.That is exactly what has been happening in Thailand.

Both the government and Council for National Security have been moving at a snail's pace, so much so that they have been labelled "old ginger" or "losers".

Apparently, the CNS knows only how to oust a dictator; it has failed to exercise power in meaningful ways. The coup leaders have been called incompetent and naive. Now as their one-year timeframe is coming to an end, they are rushing.

Rumours that the CNS and the government had made deals with Thaksin Shinawatra are not helping.

In the beginning, when Yushchenko was elected as president following the heavily-rigged polls, Ukrainians knew their country would never be the same again and they wanted results.

But somehow the new president has turned out to be a different person. Julia Mostova, deputy chief editor of Mirror of the Week said: "He is like other politicians who effectively are opportunists."

That helps explain why Yushchenko has done all imaginable political somersaults to either stay in power or undermine his own allies. An election has been scheduled for September.

It is hard to predict who will win and what kind of impact it will have on the Ukraine. One thing is clear though: politicians from all sides will try to manipulate the polls as much as possible.

Leading journalists lament that Yushchenko has completely ruined any chances of consideration for early EU and Nato memberships because of his own self-interest.

Foreign visitors can easily feel the residue of the Soviet-era mindset and attitude in Kiev these days. They also wish, unrealistically, that the Ukraine will become a democratic nation soon.

In the past two and half years under Yushchenko, the political situation in the Ukraine has become worse. It has become enmeshed with personal jealousies and rivalries and vested interests.

It is as if the same plot was being hatched in Thailand. After the coup, the CNS leaders were embattled. The latest episode at the Telephone Organisation of Thailand is a case in point.

Another similar feature of the Orange and Silk revolutions is the role of media. In both cases, the media played a crucial role in disseminating information and empowering the public.

During the third day of the Orange Revolution, a sign-language interpreter on TV told TV audiences that the news she was interpreting was lies and propaganda.

Her honest and timely comments won Ukrainian hearts and encouraged people to show up at Maidan Square to protest, which forced the government of Leonid Kuchma to reschedule a new election.

At that time, journalists both online and offline kept the public informed, including voting monitoring, which caught the government cheating red handed.

However, after a few months the government tried to assert control of the media. Yushchenko became less tolerant of his critics. The same was true in Thailand.

Some of the CNS leaders in the early months were angry when media outlets reported on Thaksin's movements abroad. Apart from the coup itself, Thaksin's fate was sealed long before by huge and prolonged demonstrations on the streets.

In the past two weeks, pro-Thaksin groups have taken to the streets with red banners, trying to repeat the success of the People's Alliance for Democracy and to pressure the CNS into resigning.

In Kiev, it was the same. The demonstrators loyal to Yanukovych have also staged rallies, with blue flags, trying to undermine the Yushchenko camp. Now, it is a battle between blue and orange.

In Thailand, it is the yellow and red.

In the finality, both revolutions suffer from the same lack of solidarity among allies.

Things change because vested interests change. Once they are in power, they focus on their own schemes to ensure their survival and in many cases to ensure that their immediate circle will benefit from their rise to power.

The moral lessons from these two revolutions are simple. First, the public has high expectations after a political triumph, so those who are in power must deliver on their promises fast and without any excuses.

Second, allies have to stay together a long time, otherwise solidarity fizzles out quickly and other political elements can interfere and cause realignments.

Also, do not stir up the crowd because if people feel they are being used, they can turn against their mentor.

Source: The Nation

Yushchenko, Yanukovich Both Pursue European Integration

ATHENS, Greece -- Both Ukrainian President Viktor Yushchenko and Prime Minister Viktor Yanukovich are pro-European and strive to intensify the former Soviet republic’s EU integration, Ukrainian First Deputy Foreign Minister Volodymyr Ogrysko told New Europe in Athens on June 21.

Ukraine's President Viktor Yushchenko addresses a joint news conference with European Union foreign policy chief Javier Solana (not in picture) at the end of a meeting in Brussels.
Asked if both leaders are pro-European, Ogrysko said: “Yes, it is not only Mr Yushchenko and Mr Yanukovich; it is the Ukrainian people who are really pro-European oriented people. That is why it’s up to Ukrainian people to decide and they have already decided many, many years ago that they are Europeans and would like to be Europeans, not members of some structures with uncertain orientation.”

Ukraine has been rocked by a power struggle between Yushchenko and Yanukovich. The country plunged in a political crisis two months ago, after the president dismissed the parliament.

Both leaders agreed May 27 to hold elections in September in a bid to end a protracted political crisis.

Ogrysko said he is confident that the upcoming elections would mark the end of the country’s political crisis. “It is a very important period in our history and I would say, practically speaking, we have proved once again that Ukraine is really a democratic state,” Ogrysko said.

“It is period when Ukraine is not in the best internal position, but nevertheless we have shown once gain that instead of having tanks on our streets or casualties: we have roundtables; we have negotiations; we have other peaceful means, which can be used in democratic state. So I do hope that after these elections the situation in Ukraine will be much better internally.” He said he is confident there will be no room for political corruption.

Asked if the crisis has affected EU-Ukraine cooperation, Ogrysko said: “I wouldn’t say so because we have now broad range of consultations on all levels.”

He cited as an example the high-level meetings from both the EU and Ukraine in Brussels and Kiev. Most recently, Yushchenko visited Brussels on June 21 where he held talks with EU foreign policy Chief Javier Solana.

“Now we begun this preparation of the new agreement between both sides so I do hope that it will be very important for our dialogue and I don’t think we can say about some slowdown in our cooperation,” Ogrysko said.

Even though the European Commission has repeatedly made it clear that EU membership for Ukraine is not on the agenda, the first deputy foreign minister said Ukraine wants more than cooperation within the framework of the European Neighbourhood Policy (ENP).

“We would like to have a very clear European prospective for Ukraine because we are a European nation,” Ogrysko said. “That is why it is obvious for us it is only the question of timing when Ukraine will be an EU member state. That is why we are trying to elaborate the new Ukrainian-EU agreement ... and after its fulfilment we can then immediately negotiate the process of joining the European Union.”

Ogrysko said he is familiar with the EU position on Ukraine. “No, for the time being membership is not on the agenda. But now we are trying to find very concrete areas of cooperation fulfilment of which can bring us much more closer and after that the question about membership will comeback to our agenda,” he said.

“Of course we are aware that we have to do our own homework,” Ogrysko said, adding that “for the time being we have on our agenda the WTO question. Until the end of this year, we would like to be a member of this organisation. After that we will immediately launch negotiations on the free-trade zone with the European Union. After that we hope that in early 2008, we will have this new agreement between two sides and step by step we will be closer to the European standards and at the end of this process we would like to have a clear signal that Ukraine will be welcomed as an EU member state.”

Ogrysko reiterated Ukraine’s strategic goal to integrate with NATO and the EU. “Only the combination of NATO guarantees and participation in the European Union gives Ukraine a chance to be a really independent and prosperous state,” he said.

Asked if EU membership or NATO is the bigger priority, the first deputy foreign minister said: “We have both European and Euro-Atlantic goal. They are not in any contradiction with each other. They can only be helpful in reaching each of these goals. If you look at the recent waves of accession to the European Union, you will see that many states of the former socialist bloc became NATO members first and only after they became EU members. NATO membership has not only military aspects but, first of all, political ones. That is why it is very important that Ukraine will reach the appropriate political and military levels and after that step by step the high economic standards provided by the European treaty.”

Source: New Europe

Yushchenko Wants EU Observers At September Elections

BRUSSELS, Belgium -- Ukrainian President Viktor Yushchenko said June 21 he wants the European Union to send observers to parliamentary elections called for September to resolve a political crisis that had threatened to end in violence.

EU foreign policy chief Javier Solana
Speaking on a visit to EU headquarters, Yushchenko told reporters he had asked the foreign ministry to invite EU observers.

Yushchenko and his main political rival, Prime Minister Viktor Yanukovych, agreed on the date of the vote last month in a bid to defuse a political crisis that had threatened to escalate into clashes between troops loyal to either leader.

EU foreign policy chief Javier Solana, who met both leaders this week, said he was hopeful that the electoral agreement would end the crisis and "open the door to normalized life" in Ukraine.

Ukrainian politics have been riven by a power struggle between Yushchenko, who has pledged to bring the former Soviet republic of 47 million closer to the West, and Yanukovych, who is seen as more friendly to Ukraine's giant neighbor, Russia.

Yushchenko was to attend a meeting of Europe's conservative leaders ahead of an EU summit.

Ukraine's political standoff has provoked mounting concern in the EU over the stability in a neighboring nation which is an important transit route for Western Europe's oil and gas supplies from Russia and the Caspian Sea region.

On Monday the EU eased visa requirements for Ukrainian citizens and in March the bloc approved a $663 million aid package for Ukraine over the next four years, a significant increase in funding.

However, although the EU has started negotiations on a deeper economic and political partnership with Ukraine, it has rebuffed its requests to be considered as a candidate for EU membership.

Source: Kyiv Post

Another Litmus Test

KIEV, Ukraine -- Last week the Post ran a story describing how a relative of one of Ukraine’s most controversial business tycoons is facing manslaughter charges for his alleged role in a May 30 traffic death of an off-duty policeman.

Ukraine’s governing institutions are a cesspool of corruption. Judges and politicians can be easily bought.
The officer, a warrant officer in an Interior Ministry unit that protects foreign embassies, was killed on the spot after a BMW, allegedly driven by 21-year-old Serhiy Kalynovsky, plowed into the officer’s car in downtown Kyiv. A 25-year-old female passenger in the BMW died a few days later in hospital.

Kalynovsky is the biological son of Zinoviy Kalynovsky, linked by media reports to the lucrative gas-trading business, and the former stepson of Dmytro Firtash, who owns a major stake in RosUkrEnergo, which controls the multi-billion-dollar business of supplying Ukraine with natural gas.

Based on precedent in this country – and there are many of them – the Post fears that any investigation into this case will come to nothing, and Kalynovsky will walk away free and with impunity.

Among the most glaring examples in Ukraine’s independent history of unsolved or partially solved high-profile cases and crimes include: two separate deadly road accidents in which current Kyiv Mayor Leonid Chernovetsky, and a relative, was implicated (at the time, Chernovetsky was a parliament member enjoying immunity); the poisoning of presidential candidate Viktor Yushchenko; the murder of journalist Georgiy Gongadze, and many others.

Each of these cases was a litmus test for the existence of fairness, justice and the rule of law in this country.

So far, Ukraine has failed them all.

The country’s governing institutions are a cesspool of corruption.

The president decrees parliament disbanded alleging it was corrupt, but it continues to hold sessions.

The court system is highly regarded as corrupt.

The Kalynovsky case now stands as the latest litmus test of justice in the country – justice that Ukraine’s untouchables rarely face.

Lives were lost, but based on Ukraine’s despicable precedents in cases such as his, the rich boy, Kalynovsky, is likely to go free.

In fact, he nearly fled to Israel recently on a private charter jet.

He was stopped by Ukrainian law enforcement, but the hush-hush nature of his case raises suspicion that he may ultimately elude justice.

The Post strongly urges Ukraine not to lose its umpteenth chance to show that it is making some progress toward establishing freedom, fairness and justice for all in this country.

Source: Kyiv Post

Ukraine At Half-Past Yushchenko

KIEV, Ukraine -- Sometime in June, President Viktor Yushchenko will mark two-and-a-half years (or about one-half) of his presidency. The anniversary is likely to be a quiet affair.

President Viktor Yushchenko
The ongoing political turmoil is just one reason that may dampen a celebratory mood. The other lies in the sad reality that Yushchenko’s tenure has so far failed to achieve a qualitative breakthrough in moving Ukraine from the post-Soviet era.

In foreign affairs the country’s standing is continuously declining. Consider the recent condescending remarks by Russia’s President Putin about the guys in Ukraine who screwed up.

Ukrainian Euro-Atlantic ambitions are in tatters. The prospect of NATO membership has turned into a specter that haunts Yushchenko, or anyone, for that matter, who dares to dream of it.

All the talk about the country’s EU aspirations remains a compilation of buzzwords with little substance and, at this point, with little potential. One can only imagine the thoughts of EU bureaucrats as they watched the burly lads of Berkut storming the general prosecutor’s office.

As a result, on the international arena, Ukraine finds itself once again in a strange place. Being neither a success nor a failure, it is reminiscent of a perennial teenager who, years after his high school graduation, still cannot figure out who he is or wishes to be and, more importantly, what he wants to do with his long-acquired independence.

On the domestic front, the president has failed to make the democratic gains of the Orange Revolution irreversible. His wobbly attitude toward the 2004 constitutional changes continues to keep the door half-open for future amendments.

This, in turn, generates the feeling of uncertainty sufficient to keep all the major players vigilant for a window of opportunity when the fundamental institutional arrangements can be redefined in a wholesale manner.

It also allows the political establishment to stay engaged in a futile debate on the theoretical merits of a particular model of government (a task better left to political scientists) at the expense of specific economic and social reforms.

The resultant institutional and political volatility retards progress in other areas. The fight against corruption, which Yushchenko promised to wage so vociferously, is now the source of acerbic jokes and sarcastic smiles.

Perhaps inadvertently, the presidential decree to dissolve the parliament delivered a lethal blow to the country’s already feeble judicial system. Put together to be a magic wand in the hands of a semi-authoritarian ruler, the Constitutional Court is inherently incapable of functioning in a democratic environment.

Unsurprisingly, the institution is collapsing slowly, yet spectacularly in its own impotency. To sum up, the president’s domestic agenda can be described as a failure, which in the end has further deepened the chasm between those in power (regardless of their political affiliation) and the “little Ukrainians.”

Against this depressing backdrop, there are unending rumors that in April Yushchenko was pushed to action in part because of the intention to revive his lackluster second-term chances.

Yet one should hope that his re-election bid extends far beyond a reshuffle of the parliament that is widely expected to produce the same electoral outcome.

Profound changes are in order if Yushchenko does not want his presidency (irrespective of how many times he will get elected) to become a footnote in Ukrainian history.

They need to begin with more sensible personnel decisions. Recent appointments look like a Brownian motion of molecules rather than a thought-out process with some logic and purpose.

Candidates’ competence should finally trump the president’s personal comfort with the individuals he appoints. This is the only way to ensure that a healthy amount of dissent and introspection are always present in his decision-making process.

The second step should involve taking a closer look at the 2004 presidential promises to see which ones can be watered down to concrete proposals with achievable and demonstrable results.

The revolutionary fatigue, which overwhelmed many Ukrainians, is partially a result of general slogans and hyped expectations that were initially impossible to fulfill.

The advantage of a clearly stated agenda lies in the ability to track down its fulfillment. It also helps avoid the perils of power that include squabbling among the allies (the relationship between the president and Yulia Tymoshenko is an obvious example) and distractions on currently peripheral, yet emotionally explosive ideas (like Yushchenko’s worthy, but untimely suggestion of building a museum of Soviet occupation).

Luckily, the president has no shortage of issues to solve. Ukraine’s dependency on Russian energy supplies and a non-existent diplomatic engagement on that matter with Central Asian states immediately come to mind.

Other areas encompass serious reforms in such sectors, for instance, as education and healthcare that would bring the country to EU standards in real, not rhetorical terms.

Implementing large-scale changes is, of course, not a one-man show, and Yushchenko will need all the help he can get. This brings us to the third point.

Because the elections in September are an attempt to remedy the utter mess, which the parliament has become as a result of irresponsible coalition-building efforts within the Orange lot, the president should forge a firm commitment on the future alignment of the pro-Orange forces, no matter whether they gain the majority or remain in opposition.

Otherwise, post-election developments will be a re-run of the travesty that we saw in April-August 2006.

It is clear that the next two-and-a-half years will be critical not only for Yushchenko’s political viability as a second-term presidential candidate, but also for the viability of democracy as a form of governance in Ukraine.

The skyrocketing levels of apathy and contempt by ordinary Ukrainians toward politicians of all colors may create a dangerous longing for ‘an iron fist’ and engrave the idea that a Western-type democracy is somehow not applicable for Ukraine.

To see what happens in a country where the public gets disenchanted with politics, one should look no further than neighboring Russia.

If Yushchenko fails to bring about a real change in the second half of his presidency, this may be the only legacy that he will hand down to his successor.

Source: Kyiv Post

Survey: Companies In Ukraine Paying More In Bribes Again

KIEV, Ukraine -- Companies operating in Ukraine are spending more money on bribes in order to sift through Ukraine’s murky business climate, according to the Institute for Economic Research and Policy Consulting.

Bribes are a way of life in Ukraine and will be part of the Ukrainian landscape for many years to come.
A survey conducted by the institute in April-May suggests that the average amount of bribes this year compared to 2006 has “increased from 3.6 to 4.2 percent” of an enterprise’s annual sales volume.

In the study, officially called the Annual Assessment of Business Climate in Ukraine, 300 enterprises were surveyed on various issues critical to Ukraine’s economy and investment climate.

The companies were asked to respond to questions on bribes, corruption, tax evasion, security of property rights and difficulties in the regulatory environment.

Oksana Kuziakiv, executive director of the institute and head of the Business Tendency Survey, which included the survey on bribes, said the study results suggest that corruption is again on the rise in Ukraine, but still below the levels detected in 2004, before the pro-democracy Orange Revolution.

A significant increase in the amounts of bribes was detected in 2004, up to 6.5 percent of the annual sales volume of an enterprise, compared to 1.9 percent recorded in 2003.

The aggregate number of bribes started to decline in 2005, as the pro-Western administration of newly elected President Viktor Yushchenko took power, declaring its intention to fight corruption.

In that year the amount of bribes decreased from 6.5 percent to 1.4 percent of an enterprise’s annual sales volume.

In 2006, corruption started to increase again.

This year has seen an increase in bribery. Those surveyed, however, remain uncertain that bribes would help successfully cut corners or avoid red tape – a huge barrier to businesses’ operations in the country.

Nevertheless, Ukrainian businesses are often pressured by influential officials into paying bribes, often through would-be racketeering arrangements, as a way of keeping their businesses protected from various risk factors, including violations of the country’s vague and contradictory legislation.

In 2003, about 25 percent of Ukrainian enterprises felt that a bribe would deliver no effect.

From 2004 until 2005, this percentage increased from 29.6 percent to 65.8 percent. The year 2005 appeared to be the peak in this tendency.

In 2006 this percentage decreased by 2.3 percent, to 63.5 percent, and this year the tendency saw an 8.5 percent drop to 55 percent.

Over the period 2004 to 2007, businesses have considered it important to establish strong working relations with tax authorities and militia, allegedly common benefactors of bribes.

The importance of maintaining relations with local authorities in regions increased last year.

The Institute for Economic Research and Policy Consulting, IER, is an independent research organization founded in 1999 by senior Ukrainian politicians and the German Advisory Group.

The main purpose of the institute is to promote the principles of a free and democratic market economy.

Source: Kyiv Post

Yulia Tymoshenko Comes Out On Top In Ukraine's Crisis

KIEV, Ukraine -- Ukraine's parliament closed on Friday, June 15, after a tense two-month crisis. This was a success for Yulia Tymoshenko and her eponymous bloc (BYuT), who were the only political forces consistently calling for early elections since the collapse of the Orange coalition last year.

Yulia Tymoshenko is a political force to be contended with.
On April 2 President Viktor Yushchenko followed suit, disbanding parliament and calling for early parliamentary elections later that same month.

BYuT has come out on top in Ukraine’s spring 2007 political crisis. Tymoshenko could again become prime minister if Orange forces win the September 30 parliamentary elections.

And if not this year, she could set her eye on the 2009 elections.

Recent developments suggest that Tymoshenko’s political fortunes are on the upswing. After only eight months Tymoshenko lost the prime minister’s post in September 2005 when corruption allegations surfaced against the president’s business entourage.

Yushchenko then dismissed the government, a right he had under the 1996 constitution but does not have under the 2006 version.

The move had two strategic consequences for his political allies.

First, the Orange camp fractured for 18 months. Our Ukraine and BYuT did not reunite until February 24, 2007. Oleksandr Moroz’s Socialists and Anatoliy Kinakh’s Party of Industrialists and Entrepreneurs, both of whom had defected to Yushchenko in the second round of the 2004 presidential elections, had supported two Orange governments in 2005-2006/7 but moved to the Anti-Crisis coalition of Prime Minister Viktor Yanukovych in 2006-2007.

Second, the Orange split permitted Yanukovych and his Party of Regions to revive their fortunes. In the seven months between the September 2005 cabinet crisis and the March 2006 parliamentary elections, the Party of Regions effectively doubled its popular support.

The Party of Regions placed first in the 2006 elections, and likely will do so again in September, but it cannot count on a landslide, especially in western-central Ukraine, where there is a greater degree of political competition with no dominant political force.

Tymoshenko is steadily gaining ground across the country.

BYuT is seeking to use the 2007 elections to dent the popularity of the Party of Regions in its eastern-southern Ukrainian stronghold.

Most members of the Party of Regions live in eastern (62%) and southern (21%) Ukraine, but in the 2006 elections BYuT placed second in every region of eastern-southern Ukraine except the two Donbas oblasts, the Crimean autonomous republic, and the city of Sevastopol.

Polls have consistently put BYuT in second place nationally, making it the leading Orange political force. Between the 2002 and 2006 elections BYuT tripled its support from 7.26% to 22.29%, while Yushchenko’s Our Ukraine declined from 23.57% to 13.95%.

Part of this growth is due to disillusionment with President Yushchenko, which led to a large defection of Orange voters from Our Ukraine to BYuT and changed the configuration of national democratic forces.

Our Ukraine has recovered some since 2006, and now includes the Yuriy Lutsenko People’s Self Defense group (focusing on the youth vote) and Ukrainian Rightists (based largely on the two wings of Rukh) among its members.

However, Our Ukraine’s expanded bloc still is unlikely to dent BYuT’s leadership of the Orange camp.

Since the 2002 and 2004 elections Tymoshenko has successfully improved her public image. Prior to the 2002 and 2004 elections, Tymoshenko’s ratings had been influenced by her time as president of United Energy Systems (1995-97) and political alliance with disgraced prime minister Pavlo Lazarenko’s Hromada (1998-99).

Both made Tymoshenko seem an ally of business.

But to become prime minister, Tymoshenko must first win the 2007 elections.

She and Yushchenko realize that the September election will be close. Polls suggest that neither the Blue (Party of Region) or Orange camp will score a landslide victory.

Instead, each faction is likely to win somewhere around 45-55%. Therefore, they need to fight for every percentage vote.

The number of votes wasted on parties that will fail to cross the 3 percent threshold will leave a large number to be distributed among the four leading political forces.

They must also tame the rivalry within the Orange camp. In the 2006 elections the Orange camp won, but it took three months to pick an acceptable prime minister and parliamentary speaker.

Yushchenko and Our Ukraine refused to adhere to the pre-election agreement that the Orange party that placed first would receive the prime minister’s position.

Our Ukraine also refused to back Moroz for speaker, causing the Socialist Party’s defection. This gave the Party of Regions and the Communists enough votes to establish the Anti-Crisis coalition and a parliamentary majority.

This split is less likely today. The national democratic wing of Our Ukraine now dominates its leadership.

Our Ukraine leader Vyacheslav Kyrylenko and Lutsenko have ruled out a coalition with the Party of Regions. (In 2006 Our Ukraine, then controlled by its business wing, sought a grand coalition with the Party of Regions).

In an interview with Izvestiya in Ukraine, Tymoshenko repeated her stance that BYuT would either be in a “democratic coalition” with Our Ukraine or in opposition.

Yushchenko has also stated his support for a “democratic coalition.”

The 2007 elections will likely return Tymoshenko to head the government if the two remaining Orange forces win a majority of seats and, as is likely, BYuT comes first among the orange camp.

If the Party of Regions and Communists win a majority, Tymoshenko will head the opposition, giving her a launching pad for the 2009 elections. Either way, she is poised to again be a major force in Ukrainian politics.

Source: Eurasia Daily Monitor

Ukraine Marked By Crisis

KIEV, Ukraine -- As Ukraine's president and prime minister struggle for power, bringing the country close to violent clashes between opposing security forces, new elections tentatively scheduled for September are unlikely to change much.

Lately, Ukraine's two Viktors only smile for the cameras.
Ukraine has been wracked by political crises since the Orange Revolution of 2004-2005. The political deals made to solve these crises have been short-term bandages on gaping wounds.

The power struggle between President Viktor Yushchenko and Prime Minister Viktor Yanukovych continues to simmer and could easily lead to violence, with new parliamentary elections, tentatively scheduled for 30 September, unlikely to bring about a resolution.

In 2004, Yushchenko, by most accounts a pro-Western leader bent on leading the country towards Euro-Atlantic integration, beat out Yanukovych, a pro-Russian politician with close ties to Moscow.

But only two years later the Orange Revolution came nearly full circle as parliament voted to nominate Yanukovych to be the country's next prime minister. The two leaders' effort to share power would provoke the latest crisis.

Shortly before Yanukovych's nomination, the two rivals signed a declaration that would lay the foundation for a coalition government uniting Yushchenko's Our Ukraine party and Yanukovych's Party of Regions.

Many observers at the time said the deal was essentially superficial and that, below the surface, powerful oligarchs were calling the shots, making every effort to ensure that former Yushchenko ally and Orange Revolutionary Yulia Tymoshenko – who had pledged to crack down on their activities – would not become prime minister.

Crisis enters a new phase

As the crisis enters a new phase, one that nearly turned violent in late May, both Yushchenko and Yanukovych are accusing each other of having exceeded their assigned powers.

In April, Yushchenko accused Yanukovych of illegally attempting to amass a majority in parliament through "bribery" and "pressure." His response was to order the parliament dissolved. Yanukovych responded that such a move was beyond the president's powers.

The crisis reached a dangerous climax in the last week of May when Yushchenko fired the prosecutor-general, in order to gain control over the security services, and deployed several thousands troops to protect the parliament, while Yanukovych directed the police to restore order.

On the brink of violent clashes, Yushchenko and Yanukovych agreed to set a date for new elections on 30 September, but the parliament, though dissolved, is still operating, as lawmakers loyal to Yanukovych refuse to leave.

Observers say the crisis is far from over and that both sides have showed in May how far they are willing to take the issue

Parliamentary speaker Oleksandr Moroz has refused to formally dissolve the parliament, citing technical reasons. The parliament must be dissolved 60 days before a new vote can be held.

In the meantime, the EU is urging Ukraine to resolve its political differences if there is to be any hope for future cooperation agreements.

During a high-level meeting between Ukrainian and EU officials on 18 June, EU Council President Frank-Walter Steinmeier urged Ukrainian officials to uphold an earlier agreement to hold new parliamentary elections to resolve the political crisis.

Steinmeier stressed the importance of maintaining the pace of political and economic reform in Ukraine, saying that special attention should be given to ensuring justice and the fight against corruption.

He called for an independent judicial system and speedy reforms that would prepare the country for a future with the EU.

Still, there were some concrete steps taken. Two agreements on visa facilitation and readmission were signed in accordance with the official start of negotiations on a new Enhanced Agreement between the EU and Ukraine.

Crisis set to continue

According to Dr Ustina Markus, a Ukraine expert and associate professor at the KIMEP-Department of Political Science in Almaty, enough deputies have resigned to allow the parliament to dissolve itself.

However, Moroz maintains that it must be confirmed that there are no more candidates from the 2006 election lists of Yushchenko’s Our Ukraine and Tymoshenko’s bloc that can replace those who have resigned.

If that is confirmed then parliament is indeed dissolved.

"There are clearly some deputies who are unhappy with the situation, most likely because they are concerned about being re-elected themselves, but there are also some concerns about the new composition of the parliament after new elections are held," Markus told ISA.

"Last year, when Yushchenko was unable to form a government and there was talk of having new elections, it did not look as if they would change much since the previous elections had just taken place. This time there is a larger likelihood that the composition would change, but it looks as if Yushchenko’s Our Ukraine party would get fewer votes because people are disappointed in him. Many people voted for him less because of his own platform, than as a rejection of Kuchma’s old regime, and seeing Yanukovych as his prime minister was a betrayal in a way," she said.

Furthermore, Markus says, "the continual problems with parliament, forming a government, etc. have made him look weak and unable to govern. In that sense, elections may not change much at all, since Yanukovych’s Party of Regions is still likely to command the largest vote, since his support base is regionally located in the country’s most populous area.

If Moroz loses some votes - surveys show he has lost some support - and Yushchenko loses some votes, then the balance may well stay the same and elections will not resolve anything."

Still, since the heady days of the Orange Revolution, both Yushchenko and the public have lost much. Yushchenko's power base continues to dwindle as the public becomes increasingly disillusioned and disappointed.

While this is not likely to lead to any windfall victory for Yanukovych, it is very likely to spell defeat for Ukraine's EU ambitions, at least in the short term.

If new elections fail to change anything, violent clashes between opposing security forces could be the chosen catalyst for change, with dangerous and unpredictable results.

Source: ISA Portal

EU Says Hopes Ukraine Holds Elections As Planned

BRUSSELS, Belgium -- The European Union told Ukraine's prime minister on Monday that it had watched recent domestic upheaval in Ukraine with concern and hoped that elections would take place as planned on Sept. 30.

German Foreign Minister Frank-Walter Steinmeier
"We are concerned to ensure that the instability that was seen in the spring will not be continued in the winter," German Foreign Minister Frank-Walter Steinmeier said after talks with Ukrainian Prime Minister Viktor Yanukovich.

EU External Relations Commissioner Benita Ferrero-Waldner said she hoped the EU would be able to send an observer mission to the polls and that they would be free and fair.

Steinmeier, who represented the German EU presidency, and Ferrero-Waldner spoke after signing an agreement with Ukraine that will make it easier for some of its citizens to obtain visas for the EU and increase the quantity of Ukrainian steel products allowed into the bloc.

The meeting also discussed progress in negotiations on an enhanced cooperation agreement between the EU and Ukraine, which became a neighbour of the bloc when Poland and Slovakia joined the European Union in 2004 and harbours entry ambitions itself.

Brussels has said entry is not currently a prospect.

The visa deal will make it easier for people such as business people, students, academics, journalists and truck drivers to obtain EU visas and simplify the documentation required.

As part of the agreement, Ukraine will agree to take back citizens of third countries who have entered the union illegally via its territory.

The deal on steel products will increase a quota for EU imports of flat and rolled steel to 1.32 million tonnes from just over 1 million tonnes.

It will be valid until Ukraine joins the World Trade Organisation, after which the trade will be totally liberalised.

Source: Javno

Ukraine Farmers Suffer In Worst Drought For Century

UROZHAINE, Ukraine -- Svitlana Nadich is almost beyond hoping that even a little rain will fall on her brittle, parched wheatfields in southern Ukraine.

The Nadich family gathers parched wheat plants to cut financial losses in the drought-hit Kherson region in southern Ukraine. Drought has hit 60 percent of Ukraine's grain crop and is a sensitive political issue ahead of a September parliamentary election.
The $20,000 (10,000 pound) investment made by four village families, the sowing and care in applying fertiliser, all appear to be in vain as the region endures its worst drought in more than a century.

"Some people from the city ask God not to send rain to keep things dry. We do the opposite. We keep asking: 'Give us rain!'" she said while collecting some withered shoots.

"If you don't want to have mercy on us, then have mercy on our children. We have had no more than 10 minutes of rain."

With a snap parliamentary election due in September, drought and the prospect of further, hugely unpopular rises in bread prices are high on the political agenda -- and surely the last thing Prime Minister Viktor Yanukovich wanted.

Bread prices have gone up in a number of regions. The increases are by no means uniform but in general prices have risen by up to 10 percent with the biggest increases in central and western ukraine.

Yanukovich, long at odds with pro-Western President Viktor Yushchenko, has threatened to sack top farm officials if further rises occur. One of the prime minister's deputies blamed the liberal opposition, aligned with Yushchenko, for the increases.

Kherson region near the Black Sea, in the heart of Ukraine's grain belt, is one of 10 areas hit by drought -- 60 percent of grainfields have felt the effects. The government on Monday reduced its crop forecast to 30 million tonnes from 38 million.

Walking through the stunted shoots in Nadich's field -- which rise to a man's calf rather than his waist -- produces no normal "swish" of passing through a thriving grain field.

Rather, an agonising crunching noise resounds. Dust clouds billow throughout the area around Urozhaine -- "bumper crop" in Ukrainian.

"Whatever we manage to save will be used as feed to keep our cattle alive," Nadich said, a straw hat shielding her from searing sunlight. "We just don't know how we're going to live."

STUNTED SEEDLINGS

Harvesters are rendered useless by seedlings about 15 cm (six inches) tall, each containing an alarming four seeds per ear, instead of the normal 17 to 18.

"We have invested so much and what will we get? Nothing. There will be nothing to sow next year," Oleksander Danylko said, stepping down from the wheel of his combine harvester.

"There won't even be money for fuel. From 10 hectares, we threshed 1.5 tonnes. That might be enough for the chickens in the yard."

Kherson routinely harvests a million tonnes of grain and sowed 500,000 hectares this year but forecasters say the region could lose at least 60 percent. Farmers say yields are about 0.15 tonnes per hectare compared with 3.5 in 2006.

The thermometer at the nearby weather station shows 32 degrees (90 Fahrenheit). Soil temperatures register 53 degrees (127 Fahrenheit).

"We haven't seen such a period of drought for more than 100 years, with our wheat and barley and rapeseed suffering so badly," said Anna Pashnyuk, the station's chief forecaster.

"Our sunflowers are also in a terrible state."

The din from the corner comes from the ageing telex machine dispatching a report on conditions to regional centres.

Drought and a poor harvest also stand to create havoc on international grain markets, with traders closely watching each day without rain.

Last season, the government slapped quotas on grain exports, enraging traders and Ukraine's trading partners. The U.S. ambassador told ministers that was no way to integrate Ukraine into world markets.

Ministers say they are ready to introduce restrictions again from next month -- to keep down those sensitive bread prices.

Stepan Melnychuk, head of the regional meteorological service, shakes his head as he tours farms and reflects on the knock-on effect drought will have on next year's crop.

"If we get no rain, the situation will truly become critical for next year's winter crops," he said.

"This could produce another bad harvest next year."

Source: Reuters

Ukraine Opposition Looks To Tymoshenko Bloc To Form New Coalition

KIEV, Ukraine -- Pro-presidential opposition party Our Ukraine will only form a coalition with the Yulia Tymoshenko Bloc in a new parliament, the party leader said Saturday.

Yulia Tymoshenko
"After the November 30 election, we will form a coalition, but only with the Yulia Tymoshenko Bloc, not any of the forces that are today part of the 'anti-crisis' coalition," Vyacheslav Kyryllenko said.

Ukrainian opposition leader Yulia Tymoshenko resigned Thursday as a member of her eponymous bloc in parliament.

Under an agreement reached previously between the Ukrainian president, prime minister and speaker, early parliamentary elections have been set for September 30, which requires that all MPs formally resign.

A total of 105 MPs have thus far announced they are quitting their factions, including 50 YTB and 29 pro-presidential opposition Our Ukraine members.

More than 150 MPs must quit the 450-member legislature for it to lose its legitimacy and to prevent the coalition, still reluctant to dissolve, from continuing its work.

Yushchenko and his archrival, Viktor Yanukovych, agreed May 27 to hold snap elections in a bid to end a protracted political crisis in Ukraine, which was threatening to turn violent as troops loyal to both leaders were being drawn into the power struggle.

The president suspended his April 2 order to dissolve the Supreme Rada for four days to give the legislature time to pass laws clearing the way for snap polls and to refresh the Central Election Commission (CEC).

Yushchenko has been pressing for parliament's dissolution and early elections following the defection by 11 opposition members to the ruling coalition, which the president said was an attempt to "usurp power."

Moscow-friendly Yanukovych, who was defeated by Yushchenko in the contested presidential elections in 2004, eventually agreed to early polls, ending two months of political infighting and street rallies.

Yanukovych returned to politics last year, when his party won the majority of seats in parliament and formed the ruling coalition.

Source: RIA Novosti

Elton John Gives Kiev HIV Concert

KIEV, Ukraine -- Elton John has given a free concert in the main square of Ukraine's capital, Kiev, to promote HIV-Aids awareness. President Viktor Yushchenko and other leading politicians were among the 200,000 people attending the show.

British pop star Elton John performs at his concert in Kiev, Ukraine, Saturday, June 16, 2007. Sir Elton John, one of the most famous British pop artists, performed his free charity show in Ukraine's capital Kiev. The concert was aimed to support Ukrainian children suffering from HIV/AIDS. The show lasted for about 2.5 hours and took place on the central square of Kiev.
Ukraine has one of the highest HIV infection rates in Europe with a new case every 10 minutes, according to Ukraine's Anti-Aids Foundation.

The organisers said they hope the UK star's performance will help reduce ignorance surrounding the disease.

The free, open-air concert, which was broadcast live on Ukrainian TV, was the biggest ever seen in Ukraine.

The event's slogan was "Stop Aids before it stops us" and Elton John told the crowd that he would do all he could to help Ukraine in its battle against the disease.

His Aids foundation already funds 23 HIV-Aids projects in Ukraine and he said that the concert would allow them to do even more.

Before the show free condoms were handed out along with leaflets on HIV testing and counselling centres.

Boycott call

A religious group had urged Ukrainians to boycott the event, describing it as blasphemous and accusing Elton John of trying to promote a gay lifestyle.

Despite the Western outlook of Ukraine's leader, it is a conservative and predominantly Orthodox Christian country, the BBC's Helen Fawkes in Kiev says.

Even in the capital, very few men are openly gay, while lesbians are virtually invisible, our correspondent says.

An estimated 400,000 people are HIV-positive in Ukraine and it is believed that gay men make up only a small percentage of that figure.

Experts say that the disease, which was initially spread by drug-users, is now becoming widespread and that within the next decade one in 50 people in Ukraine could be HIV-positive.

Source: BBC News

Elton John Gig Divides Ukrainians

KIEV, Ukraine -- It is being billed as the biggest social event of the year in Ukraine. Elton John is set to play a free concert in the capital Kiev to raise awareness about HIV/Aids.

British pop star, Sir Elton John walks during his visit to Kiev, Ukraine, Friday, June 15, 2007. Sir Elton John, one of the most famous British pop artists, will perform a free charity show in Ukraine's capital Kiev on June 16. The concert is aimed to support Ukrainian children suffering from HIV/AIDS. The show will last for about 2.5 hours and will take place on the central square of Kiev.
But his show has attracted some critics as there is widespread homophobia in Ukraine.

This former Soviet republic has one of the fastest growing infection rates in Europe.

There is a new case every 10 minutes, according to Ukraine's Anti-Aids Foundation.

Mega-stars do not often come to Kiev, so thousands are expected at the event on Saturday night.

'Religious hatred'

A religious group has urged Ukrainians to boycott the event, describing it as blasphemous.

"We believe that gay people are responsible for spreading Aids," says Svyatoslav Domalevsky from The Union of Orthodox Citizens of Ukraine.

"Elton John is gay and we don't want him promoting that kind of lifestyle here."

Despite the Western outlook of Ukraine's leader, it is a conservative and predominantly Orthodox Christian country.

"Religion is responsible for a lot of the hatred people feel towards people like me," says Petro Polyantsev, an HIV-positive gay rights activist.

"We live with stigma, discrimination and homophobia. We constantly fear that we may be attacked just for being gay."

Soviet legacy

Petro became HIV-positive at the age of 19 when he was a student in southern Ukraine.

He moved to Kiev as it is relatively more tolerant.

But even in the capital, very few men are openly gay while lesbians are virtually invisible.

Many blame the legacy of the Soviet Union.

Back then being gay was a crime and those found guilty faced being sent to the Gulag.

Ukraine decriminalised homosexuality in 1991 but prejudices persist.

"Many of the older generation still think that homosexuals should be prosecuted," says Petro Polyantsev of the All Ukrainian Network of People Living with HIV/Aids.

An estimated 400,000 people are HIV-positive in Ukraine.

It is believed that gay men make up only a small percentage of that figure.

Disease spreading

Experts say that the disease was initially spread by drug-users but now that is changing.

"The situation is very bad - nobody really knows how many people are ill," says Oleg, a Kiev businessman who was diagnosed as being HIV-positive two years ago

"The virus hits ordinary Ukrainians now, it's not just the problem of drug-users anymore, and it's affecting everyone."

It is feared that within the next decade, one in 50 people in Ukraine could be HIV-positive.

Considering the scale of the problem, there is little funding on offer from the authorities. This year the government is reported to have allocated $20m (£10m).

Most of the money to tackle the disease comes from international donors and charities.

Elton John's Aids Foundation is spending more than $5m on projects in Ukraine.

This weekend's events were organised to try to change people attitudes.

An exhibition of photographs from Elton John's collection is on display at Kiev's modern art gallery.

As the sun goes down over Kiev, the British entertainer will perform an open-air concert in the city's main square.

"The spread of HIV and Aids is a huge problem for our country but people don't seem to talk about it much," says Mr Polyantsev.

"I hope that Elton's show will help to change things."

Source: BBC News

McDonald’s Expansion To Take Off

KIEV, Ukraine -- McDonald’s is stepping up the expansion of its already significant restaurant network in Ukraine in response to what market players say is a continually increasing demand for fast food.

One of the first Kiev McDonald's located in Independence Square.
And while homegrown chains follow in the fast-food giant’s wake, major international competition has been hesitant to enter the country due to franchising problems.

McDonald’s Ukraine Director Ihor Delov announced during a May 23 press conference to mark the company’s 10th anniversary that the fast-food giant would nearly double the number of its restaurants over the next several years.

“During the next five to seven years, we plan to increase the amount of McDonald’s in Ukraine to 100 restaurants, because the market is emerging in Ukraine,” McDonald’s spokesperson Anastasiya Zrazhevska confirmed to the Post.

McDonald’s currently boasts 57 restaurants in 16 Ukrainian cities.

“We have [recently] opened a new restaurant in Kryvy Rih, and we plan to open new McDonald’s in Odessa, Kyiv and Kharkiv this year, and about five new restaurants next year,” she said.

Of McDonald’s 57 current restaurants, 47 were opened in the first five years, with the rest trickling onto the market thereafter.

“In 2002-2004, McDonald’s corporation started a new strategy, the main tendency of which was not to open a big amount of new restaurants, but to increase the efficiency of existing restaurants. McDonald’s Ukraine was a part of this global strategy. That is why McDonald’s Ukraine didn’t open a lot of new restaurants in this period of time,” Zrazhevska explained.

But now the fast-food giant is making up for lost time. Its appetite for Ukraine’s budding economy, and the country’s double-digit growth in disposable household incomes, is growing.

“We see that the Ukrainian market is emergent and it is growing by 15-20 percent every year. Furthermore, McDonald’s Ukraine has good economic results. Therefore, European management sees great opportunities for McDonald’s Ukraine’s development.”

According to McDonald’s, the opening of a single restaurant costs from $1 million to $1.5 million.

In most of the more than 100 countries in which McDonald’s operates, the restaurants are owned by a franchise.

But “McDonald’s Ukraine doesn’t work with a franchise. From our point of view, Ukrainian legislation doesn’t have enough means of control for the franchise’s standards,” according to Zrazhevska.

As a result, since launching operations in Ukraine, McDonald’s has reported investment totaling $93 million.

“[Around] 70 percent of McDonald’s are owned by a franchise. But Ukraine is not the only country where McDonald’s doesn’t work with a franchise,” the company spokesperson said.

The multinational, which boasts 31,000 outlets in more than 100 countries, doesn’t release information on specific markets.

Worldwide, McDonald’s Corporation reported record-high revenues of $21.6 billion last year.

Ukraine, where 5,000 McDonald’s workers are employed, was the 102nd country to host the fast-food giant.

Since 1997, when McDonald’s opened its first restaurant in Ukraine, other homegrown fast-food chains have followed in its footsteps, such as Dva Husya, Mak Smak and foreign-owned Mister Snak.

McDonald’s Ukraine says it enjoys 11 percent of visitors to fast-food eating establishments in Ukraine’s biggest cities.

Mister Snack co-owner Falk Nebiger told the Post that growth in Ukraine’s fast-food market is “huge. It’s growing in double digits.”

According to him, the main thing keeping out other international fast-food giants is Ukraine’s high rental costs.

One such likely international competitor for McDonald’s in Ukraine is Yum! Brands Inc., the world’s largest restaurant company in terms of system units, with approximately 34,000 restaurants.

Based in Louisville, Kentucky, Yum! brands include Kentucky Fried Chicken, Pizza Hut and Taco Bell.

“We are strongly developing in Central and Eastern Europe. Our growth markets in the region are primarily Russia, Poland, the Czech Republic, Romania and Hungary,” Yum! spokesman Christophe LeCureuil told the Post.

Of Yum!’s 34,000 restaurants, 2,500 are located in Europe.

However, according to LeCureuil, Yum! has no immediate plans to set up shop in Ukraine.

“When opening in new countries, we seek to partner with franchisees that have the expertise, culture and financial means to develop scale. We haven’t yet found this partner in Ukraine,” he said.

Working with franchises puts expenses like rental costs on the local operator.

LeCureuil said that Yum! has a presence in 120 countries with both wholly-owned and franchised restaurants and that 75 percent of its restaurants are franchised.

Last year, Yum!’s international division generated over $400 million in operating profits.

But fast-food operators in Ukraine say franchises are still getting on their feet.

“Franchising is difficult now in Ukraine, but it definitely has a future,” said Nebiger.

Source: Kyiv Post

NATO To Continue Assisting Ukraine In Defense Reforms, Pursuit Of Membership

BRUSSELS, Belgium -- NATO reiterated Thursday its strong determination to sustain efforts to assist Ukraine in implementing defense and security reforms and in pursuing membership of the military bloc.

Ukraine's Defence Minister Anatoly Hrytsenko briefs the media after meeting NATO Secretary General Jaap de Hoop Scheffer (not pictured) at the Alliance headquarters in Brussels June 14, 2007.
NATO defense ministers made the pledge at a meeting of the NATO- Ukraine Commission, marking the 10th anniversary of the NATO- Ukraine Distinctive Partnership.

"NATO members are ready to assist Ukraine in the process" of aspiring for NATO membership, NATO Secretary-General Jaap de Hoop Scheffer told Ukrainian Defense Minister Anatoliy Grytsenko at a post-meeting press conference.

In a statement issued after the meeting, NATO ministers voiced strong determination to continue to develop the "strategically important" partnership with Ukraine including through reinforcing efforts to assist Ukraine in conducting public information campaigns about NATO and its roles.

"Ministers reiterated their strong commitment to and support for Euro-Atlantic values and agreed to continue to work together to strengthen the principles of the rule of law including through ensuring effective civil and democratic control of security and defense structures and supporting the development of democratic institutions," said the statement.

NATO defense ministers applauded Ukraine's contribution to common security, noting that Ukraine is the only NATO partner country that was involved in all current NATO operations and missions.

Meanwhile, the ministers stressed the need to continue to implement "wide-ranging reforms" particularly in Ukraine's intelligence and security services as part of the country's National Security Sector Review in its pursuit of Euro-Atlantic integration.

The NATO-Ukraine Commission session was part of the two-day NATO defense ministers' meeting, which opened Thursday morning at the bloc's headquarters.

Source: Xinhua

Bones Beneath A Ukraine Meadow Revive A Chapter Of Holocaust Horror

GVOZDAVKA-1, Ukraine -- As children watched in the hot sunshine, a dozen rabbis scoured a Ukrainian village meadow for bones — the fragmented remains of Jews systematically murdered here in the Holocaust.

A rabbi covers with earth remains of Jews slaughtered in Ukraine during World War II, in the village of Gvozdavka-1. Top Jewish experts from Israel and US came to the site to consider procedures of reburying and identification of the Holocaust victims.
People who live in Gvozdavka-1 know that thousands of Jews were killed in the area during the Nazi occupation of Ukraine, but the evidence didn't surface until April, when workers laying gas pipes happened on the burial ground.

On Monday, the rabbis — including three Holocaust scholars from Israel and the United States — spent several hours hunting for bones, which they immediately shoveled back into the ground.

For 70 years, Gvozdavka-1's villagers planted vegetables and grazed cows on the meadow, and told their children horrific stories about thousands of Jews executed in the village, 110 miles (180 kilometers) northwest of Odessa.

"My grandmother frightened me with this story. What happened here is horrible," said Vika Bengul, 14, who often played in the meadow.

In November 1941, Romanian troops allied with the Nazis set up a concentration camp in Gvozdavka-1, where about 5,000 Jews perished, according to regional Jewish leaders. Jews were brought here from several regions of Ukraine, as well as from what is now Moldova, they said.

Each day several cartloads of Jews arrived, villagers say. Some Jews were executed, while others died of starvation or disease.

"They extended their hands through the camp fence begging for food," said 78-year old Olha Tomachenko. "We threw potatoes and bread to them."

Tomachenko recalled how the inmates lived in the open, drenched by rain, freezing in the winter. "They gave birth to their kids and died at the camp," she said.

Yakov Ruza, rabbinical representative at the Israeli government's L. Greenberg Institute of Forensic Medicine, said there are plans to fence off the site and put up a monument, but not to exhume the dead and try to identify them.

"We want to cover the place," he said. "These holy Jews will stay where they are."

The names of 93 of the Jews killed at the Gvozdavka-1 site have already been established, according to Ukraine's Jewish community, while the identities of the others are probably documented at archives in Moscow and Israel.

Villagers say the mass grave is only one of at least four in Gvozdavka-1.

"They buried them everywhere. It was impossible to remember the places," said 80-year-old Olha Korsya.

Parfeniy Bohopolsky, 85, remembered how Jews were tortured and killed, and their bodies then piled on carts for burial at sites scattered through the village. Bohopolsky said when he was 18, he drove one of the carts.

"Then I told my boss: 'You can kill me but I will never do it again,'" he said, his eyes filling with tears.

Tomachenko said a Jewish girl who escaped from the camp spent one night at her family's home. But in the morning, Tomachenko's grandmother told her to leave.

"Go anywhere God sends you, or the Romanians will kill you and me," the grandmother said, according to Tomachenko.

She doesn't know what became of her, but still keeps a small white towel the girl gave her.

Vera Kryzhanivska said the village council she heads would be helpful and soon discuss a request to hand control of the meadow to Jewish groups.

Some Jewish community leaders said villagers could have shown more respect for the dead.

"How could people just walk past the grave and do nothing?" said Ilia Levitas, the head of Ukraine's Jewish Council. "Where is their Christian mercy?"

Bones were discovered during earlier excavation work in 1974, according to some of the rabbis, but Ukraine was then part of the Soviet Union, which kept silent about it.

The destruction of Ukrainian Jewry is symbolized by Babi Yar, a ravine outside the capital, Kiev, where the Nazis killed about 34,000 Jews during just two days in September 1941.

Levitas said Ukraine has 726 Nazi-era mass graves. About 1.7 million Ukrainian Jews were killed, he said. But Yahad-In Unum, a Paris-based group documenting Jewish mass graves in Ukraine, has covered one fifth of the country and has already documented 600 mass graves.

Source: International Heral Tribune

Ukraine: Political Class Miss Their Station

KIEV, Ukraine -- Ukrainian politics are becoming more and more impenetrable to logical analysis. Nearly three weeks after the president, the prime minister, and the parliamentary speaker solemnly agreed to end the political crisis and hold early elections in September, the confrontation between power branches in Ukraine continues to bubble.

President Viktor Yushchenko
Parliament, which is deemed inoperative by the president, keeps on adopting new legislation by votes of the ruling coalition.

Some opposition lawmakers, who were expected to resign in order to pave the way for early polls, have apparently changed their minds and want to keep their seats.

President Viktor Yushchenko has recently compared parliament to a group of demobilized soldiers who got drunk on a homebound train and missed their station. When will Ukraine's political class sober up?

September Elections

On June 5, President Yushchenko issued his third decree in just two months calling for early parliamentary elections in the country, this time on September 30.

The decree followed the adoption on June 1 of a package of legislation necessary to hold fresh polls, including amendments to the election law and the 2007 budget to provide funds for the election campaign.

The decree was formally based on Article 82 of the Ukrainian Constitution, which stipulates that the 450-seat Verkhovna Rada becomes illegitimate if it shrinks to fewer than 300 deputies.

To meet this precondition -- which was a key provision in the early-election deal struck by Yushchenko, parliamentary speaker Oleksandr Moroz, and Prime Minister Viktor Yanukovych on May 27 -- 169 opposition lawmakers reportedly submitted their resignations on June 1.

The following day, these resignations were formally confirmed by conventions of Our Ukraine and the Yulia Tymoshenko Bloc.

Candidate Lists

Both opposition parties simultaneously adopted resolutions to invalidate their complete lists of candidates for the 2006 parliamentary elections, in order to prevent the replacement of those deputies who gave up their mandates with fresh people from lower positions on the lists.

When most observers of the Ukrainian political scene were beginning to assess electoral chances of major political parties in Ukraine, Verkhovna Rada head Moroz put in doubt the lawfulness of Yushchenko's third decree on snap elections.

Moroz told RFE/RL's Ukrainian Service on June 12 that the Verkhovna Rada obtained just 79 reliable resignation statements from opposition lawmakers, meaning that Our Ukraine and the Yulia Tymoshenko Bloc will still need to persuade at least 72 of their deputies to give up their parliamentary seats.

Moroz declared that as long as he does not see 151 acceptable resignations, the current legislature remains legitimate and early elections are ruled out.

He also stressed the role of the Central Election Commission (TsVK) in terminating the Verkhovna Rada.

"I am interested [only] in the situation when the TsVK is unable to send us a single deputy to replace those who resigned, and when there is fewer than 300 deputies in the session hall. Then we can say that there are preconditions for a presidential decree [on early polls]. So far there have been no such preconditions, and the presidential decree [of June 5] is unconstitutional [as the two previous ones]," Moroz said.

According to the Ukrainian speaker, the conventions held by Our Ukraine and the Yulia Tymoshenko Bloc to annul their 2006 election lists were not sufficient -- the invalidation needs to be formally approved by the Central Election Commission.

Additionally, Moroz argued that, according to the election law amended on June 1, the president has the right to decree early elections no sooner than 60 days before the election date, that is, on August 1.

Legitimacy Questioned

Moroz also told RFE/RL's Ukrainian Service that he does not believe that early elections will improve the political climate in Ukraine.

"Ukraine remains in an artificially created political conflict, which discredits all government institutions and poses a colossal threat to its statehood. If we look at the situation from this point of view, we will have to take adequate measures. Regrettably, the preterm elections will not neutralize this conflict; quite the opposite, they will deepen it," Moroz said.

Speaking at a news conference in Kyiv on June 13, Yushchenko reiterated his stance that the Verkhovna Rada ceased to be legitimate after the resignation of opposition deputies and the confirmation of this step by Our Ukraine and the Yulia Tymoshenko Bloc.

"The Verkhovna Rada of Ukraine has legitimate authority if it has no less than two-thirds of the number of deputies determined by the constitution. Today, it does not have the two-thirds required by the constitution because Paragraph 6 of Article 82 has come into effect, which says that in the event of a people's deputy leaving a [parliamentary] faction, his or her mandate expires before the end of his or her term in parliament, following a decision by the top governing body of his or her political party, effective upon the date that decision was made," Yushchenko said.

Crisis Unresolved

Yushchenko accused Moroz of "manipulation" in order to delay the resolution of the political crisis.

Yushchenko also suggested that Moroz's reluctance to terminate the work of the Verkhovna Rada is dictated by the latter's fear that he may not be elected to the next legislature. (All sociological surveys held in Ukraine in the past several months indicate that electoral support for Moroz's Socialist Party is well below the 3 percent voting threshold required for parliamentary representation.)

Yushchenko assured journalists that early elections will take place on September 30, but he did not elaborate on measures he may take if the ruling coalition refuses to participate in them.

He only stressed that resolving the current standoff in Ukraine is a question of honor for the Ukrainian political elite.

"Elections on September 30 are inevitable. The question is not about that today. The question is whether or not we already have a tradition among top politicians of resolving political crises with dignity, honor, and honesty," Yushchenko said.

The Ukrainian president is likely to succeed in enforcing his early-election decree. But it is quite apparent that the longer the current crisis will last, the less political dignity and honor will be in its resolution.

Source: Radio Free Europe/Radio Liberty

Ukrainian Outsourcing Market Reached $246 Million In 2006

LONDON, England -- In the past three years Ukraine has undoubtedly become the most attractive outsourcing destination in Eastern Europe.

Ukraine's IT outsourcing industry has grown to $246 Million in 2006.
With the second largest population after Russia, a legacy of Soviet science and success-hungry entrepreneurs, the country boasts the fastest-growing software development industry.

According to goaleurope.com, a leading expert on Russian & Eastern European software development, the offshore outsourcing market in Ukraine has reached $246 million in 2006.

It grew 47% in 2006 with 30,000 IT graduates arriving into the workforce each year.

A lack of the integration with the EU keeps the prices in check and IT professionals from leaving the country.

It is not unheard of for Poland and other new EU member states to seek qualified IT resources in Ukraine.

And Germany recognizes the outsourcing opportunity in Ukraine -- German customers (60 in total) employ 6% of all offshore outsourcing resources in Ukraine.

The industry benefits from visa-free regime with European Union and North America and geographical proximity to Europe, but has recently had frequent changes in the government.

Whilst changes in the government do not affect the outsourcing businesses, its policies such as increase of education budget to 6.5% of GDP play a positive role in the long-term prospects of the software development industry.

The industry is well established in Kiev, where more than 50% of all software development professionals are employed, but is simultaneously rapidly expanding into Lviv and Kharkiv.

The outsourcing industry is quite fragmented. Of the 70 companies interviewed, only seven of them employed more than 300 people in 2006 whilst 21 companies had 100 employees or more.

Source: PR Newswire

EU, Ukraine Discuss Illegal Migration, Human Trafficking

BERLIN, Germany -- Illegal migration, organized crime and human trafficking were discussed in talks between European Union and Ukrainian government ministers, the German EU presidency said in Berlin on Monday.

German Interior Minister Wolfgang Schaeuble
Ukraine was one of the main points of origin for the victims of human trafficking, German Interior Minister Wolfgang Schaeuble told the meeting held in Luxembourg.

Ukraine's long common border with the EU made it particularly important for the EU, he said.

"Tackling illegal migration and organized crime invariably requires a joint response. This is especially urgent with regard to countering human trafficking, because Ukraine is one of the main countries of origins of the victims trafficked to Western Europe, Russia and the Middle East," Schaeuble said.

Also at the meeting was European Commission Vice-President Franco Frattini, responsible for justice, along with Justice Minister Alberto Costa and Interior Minister Rui Pereira from Portugal, which takes over the EU presidency in July.

The Ukrainian delegation was headed by Justice Minister Oleksandr Lavrynovych and Deputy Interior Minister Vasyl Marmazov.

The participants also discussed a visa facilitation agreement scheduled to take effect before the end of the year.

In its statement, the EU said migration from Ukraine had soared since independence.

The EU is assisting Ukraine in setting up adequate facilities for refugees and illegal migrants.

The 27-member bloc, which Ukraine has long-term ambitions to join, expressed satisfaction that the former Soviet republic had begun to overhaul its asylum system and encouraged Ukraine to implement the reforms soon.

Source: DPA

Putin 'Not Kidding' On Missile Threat, Yushchenko Warns

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko said he took seriously Russian President Vladimir Putin's recent threat to target Europe with ballistic missiles, and said such talk has heightened his country's desire to quickly join the North Atlantic Treaty Organization.

President Viktor Yushchenko says Ukraine must get access to the North Atlantic Treaty Organization for its national security.
In a wide-ranging interview with The Globe and Mail, Mr. Yushchenko also complained of Russian interference in his country's turbulent domestic politics.

Despite heated opposition from the Kremlin, the pro-Western politician said he still plans to take his country into NATO and the European Union.

“I think the President of Russia is not kidding,” he said, referring to Mr. Putin's warning last week that Russia could aim its missiles at “new targets in Europe” if the United States pushes ahead with its controversial plans to build an anti-missile shield based in Poland and the Czech Republic.

Although Mr. Putin has since moved to defuse the standoff by suggesting the former Soviet republic of Azerbaijan as a possible location for a joint missile-defence system that would include Russia, Mr. Yushchenko said the new belligerence of Ukraine's larger neighbour demonstrates the need for his country to be swiftly brought under NATO's security umbrella.

“The recent events, I think, show to everyone that we have quite a creaky security balance. This really triggers some concerns and could be really painful.”

“It's becoming more and more apparent that the best response to all the challenges regarding defence and security policy can only be given through a collective system of defence,” he said, sitting in a chandelier-lit meeting room in the country's Soviet-era Presidential Administration building.

He gave the interview one day after meeting Mr. Putin in the Russian city of St. Petersburg.

“Our defence and security doctrine is formally determined in law. And a key aspect of this doctrine is to provide Ukraine's accession to the European Union and the North Atlantic bloc.”

As he spoke, young activists from his Our Ukraine party, waving the banners of the Orange Revolution that brought Mr. Yushchenko to office in 2004, handed out pro-NATO pamphlets on one of Kiev's main squares.

Russia, which was furious over NATO's 2004 expansion into the former Soviet republics of Latvia, Lithuania and Estonia, has already made it clear that it would view Ukraine's accession with hostility.

Despite repeated assertions that NATO does not view Russia as an enemy, the Kremlin remains suspicious of the military alliance's relentless eastward expansion.

The possibility that Ukraine, which for centuries was part of the Russian and then Soviet empires, might join NATO has been identified as a red line by senior figures in Mr. Putin's administration, which sees the country as an integral part of Russia's “sphere of influence.”

It would threaten the future of Russia's Black Sea fleet, which is stationed at the Ukrainian port of Sevastopol.

His eyeglasses placed atop a pile of notes on a table frequently used for official meetings with members of rival political factions, Mr. Yushchenko said he was willing to answer any questions Mr. Putin might have about Ukraine's desire to join NATO, but would not change his mind. “This is a policy that is not against somebody. … This is the policy that is most suitable for the security and defence of the nation.”

Ukraine has been pushing to join NATO since the Orange Revolution, an uprising that was motivated in part by a popular desire to break free of centuries of Russian influence over the country.

While the White House has indicated that it supports Ukraine's future membership, progress has been slow since Mr. Yushchenko's arch-rival, the Kremlin-backed Viktor Yanukovich, won control of parliament and assumed the prime minister's post last year.

The continuing feud between the two men has left the country effectively without a government for much of the year.

Alleging that Mr. Yanukovich's allies were attempting to buy control of Ukraine's parliament, the Rada, Mr. Yushchenko dissolved the body in April and called fresh elections, a move Mr. Yanukovich said was unconstitutional.

After weeks of duelling street protests – and a brief tug-of-war over who controlled 40,000 Interior Ministry soldiers – the two called a truce and agreed to hold elections on Sept. 30.

Mr. Yushchenko said Monday that the political crisis was now over, but described the coming elections as crucial for the country's future direction.

The 2004 presidential elections, which triggered the Orange Revolution after official results initially showed Mr. Yanukovich had won, were often portrayed as a struggle over whether Ukraine would face east, toward Russia, or west, toward the EU.

Mr. Yushchenko said Ukrainians now face an equally stark choice between having a true democracy, or preserving the corrupt system that has undermined Ukraine's progress since it became an independent state 16 years ago.

With polls showing Mr. Yanukovich's party currently in the lead, and many Ukrainians disillusioned with the Orange Revolution and its perceived failure to deliver on the promises made three years ago, Mr. Yushchenko gave a robust defence of his record in office thus far.

He described the country's economy as booming, with a doubling of foreign direct investment over the past two years and record low unemployment.

He nonetheless acknowledged that the pro-Western alliance led by himself and his off-again, on-again ally Yulia Tymoshenko had squandered a lot of its political capital through infighting that eventually led Mr. Yushchenko to fire Ms. Tymoshenko from the prime minister's post.

Though allies once more, their spectacular falling out turned off many supporters and cleared the way for Mr. Yanukovich to stage a startling political comeback.

But in the continuing political turmoil, Mr. Yushchenko again saw a Russian hand. “There are some political forces in Russia that want to keep the old political order in Ukraine.

But I emphasize that we are an independent state, a sovereign country. It is us who determine our domestic and foreign policies.”

Source: Globe and Mail

Opening Of Hyatt Regency Kiev Is Set To Attract Middle East Travellers

KIEV, Ukraine -- Hyatt International announces the opening of Ukraine's Hyatt Regency Kiev on June 15 2007. The hotel is centrally located in the historical centre on Tarasowa Street overlooking Saint Sophia Square.

Hyatt Regency Kiev.
With the Ukrainian independence on the turn of the millennium, and the easing of visa rules in 2005, Kiev, the largest city in the Ukraine and commonly known as the 'green city', continues to build itself as one of the most sought-after destinations in Eastern Europe for Middle East travellers.

Kiev has developed a competitive tourism industry, promoting its 2,148 architectural and historical landmarks, Western-style residential complexes, and classy restaurants.

'Middle East travellers are known to enjoy their time in Eastern Europe,' said Thierry Bertin, Area Director of Marketing - Middle East, Hyatt International Hotels and Resorts.

'With the opening of Hyatt Regency Kiev, travellers from the Middle East will be able to discover the city's beautiful sights and at the same time experience top-rate hospitality,' he added.

Hyatt Regency Kiev is centrally located in the historical centre on Tarasowa Street overlooking Saint Sophia Square, the ideal address for Middle East business and leisure travellers alike.

The sleek, stylish hotel will house 234 generously sized deluxe rooms, including 25 Suites. Rooms will be geared towards the comfort and needs of the global business traveller, with high-tech communications and ergonomic working areas.

All rooms are equipped with broadband Internet access, mini-bars, tea and coffee-making facilities, in-room safes that can accommodate standard-sized laptops, individual climate control, two-line telephones and voice mail messaging.

Luxurious bathrooms with under floor heating, deep-soaking baths and exceptional rain showers set the scene for a unique in-room experience.

Guests will have the choice of a variety of two restaurants and two lounge areas.

The hotel's main restaurant 'Grill Asia' features two 'open-kitchens'.

One equipped with wood-burning oven and charcoal grill for the European style dishes and the other equipped with two woks and a steamer to cook according to authentic recipes.

Situated on the 8th floor 'Bar on 8' offers all-day simple dishes such as salads, sandwiches, steaks and desserts alongside an exquisite selection of fine cigars.

With a panoramic terrace overlooking Saint Sophia Square and Cathedral, 'Bar on 8' also offers alfresco dining during the warmer months.

At the heart of the hotel is the lobby lounge allowing visitors to relax in the urban buzz of an international hotel.

With a stunning fireplace, the lobby lounge will serve a wide selection of snacks, sandwiches, salads, light luncheon hot dishes and pastries throughout the day.

Conference and banqueting facilities accommodate all needs, from discrete board meetings to medium sized functions.

The hotel provides close to 1,000 square metres of meeting and function space including a 371 square metre ballroom, 8 meeting rooms and 3 boardrooms.

All facilities are equipped with state-of-the-art technology.

For seamless professional services, a business centre provides executive travellers with multimedia technology, high-speed Internet access, fully equipped workstations, translation services and advice on local commerce as well as secretarial support.

The hotel's fitness centre houses a highly sophisticated gym fitted with digital cardiovascular equipment, saunas and whirlpool baths and swimming pool.

The luxurious Spa offers the most advanced treatments and massages designed to rejuvenate mind, body and soul.

Manicure and coiffure services are also available.

Additional facilities include Hyatt's unique Regency Club® lounge, a private area featuring a lounge offering complimentary continental breakfast, evening refreshments and hors d' oeuvres, as well as a dedicated concierge.

Source: AME Info

Ukraine Struggles Against Fake Drug Trade

PARIS, France -- It's an international crime business that endangers human lives and generates billions of dollars every year through the sale of tablets and powders.

Fake pills of medication
Unlike drug smuggling, however, medicine counterfeiting is still not considered a criminal offence under the legal systems of a number of east European countries including Ukraine.

"We tell the police. They open investigations and then just drop them. It's not a crime," said an exasperated Anna Pilipenko, an inspector at a laboratory in Kiev that is part of a state network for testing thousands of pharmaceuticals.

But as this country of 47 million people draws closer to the West, officials are gradually getting to grips with the problem, tabling new laws and introducing increased checks.

Ukraine is still lagging in healthcare, with a life expectancy of 68 that is 10 years below the average in the neighbouring European Union, according to EU and World Bank figures.

So far in 2007, Pilipenko's lab has found three percent of pharmaceuticals checked to be counterfeits. Usually the products are not toxic but contain far less of their active ingredient than required.

Pilipenko pointed to a shelf used for teaching purposes that contained dozens of medicine packages in pairs -- a genuine version and a seemingly indistinguishable fake one.

Looking more closely, the differences appeared. One cure against stomach pains turned out to be vanilla powder and several remedies against allergies and influenza carried the wrong markings.

These medicines can be seized from chemists and hospitals as they constitute a health risk for Ukrainians, but at the moment their producers and importers cannot be prosecuted.

In addition there are numerous medicines sold at discount prices through Internet sites that have sprung up in Ukraine, meaning that the proportion of counterfeits could be higher.

The World Health Organisation (WHO) estimates that more than 20 percent of the market in ex-Soviet republics like Russia and Ukraine could be made up of fakes and warns that the trade is putting patients at risk.

"The counterfeit pharmaceutical problem is very strong in Ukraine," said John Anderson, head of the Britain-based Global Anti-Counterfeiting Network, who travels frequently to Ukraine.

"The pharmaceutical companies don't tell anyone. They're desperate not to raise alarm over possible pharmaceutical fakes in case the market for their products drops like a stone," Anderson said.

Government checks, he added, are also "wildly open to corruption."

But officials in this former Soviet republic have vowed to stamp out the fake medicine problem as part of a drive for Ukraine to join the World Trade Organisation (WTO).

Health authorities have established a network of 27 laboratories for testing and legislation making medicine counterfeiting a criminal offence is expected to be adopted by parliament later this year.

The medicine inspection service for Ukraine has issued five product recalls so far this year because of health risks and in an interview with AFP deputy chief inspector Vladislav Onishchenko rejected charges of corruption.

Industry representatives have welcomed such initiatives but say that in eastern Europe as a whole not enough effort is being made to root out counterfeiting.

"It's often difficult to get an investigation going," said Ashley How of the Pharmaceutical Security Institute, a US-based industry group that works with police and in-company investigators from major pharmaceutical firms.

Experts identify Russia, frequently ranked one of the world's biggest producers of counterfeit medicines, as among the main sources for the fakes in Ukraine and the EU.

As in Ukraine, Russian lawmakers are also discussing proposals to toughen penalties against medicine counterfeiting. But the authorities have been criticised for poor enforcement of existing laws.

Last year, a company called Bryntsalov-A, which is owned by a member of Russia's parliament, was accused of counterfeiting and taken to court. The company got off with a 1,500-dollar (1,100-euro) fine for improper storage.

Source: France 24

Ukraine Hits Out At Russian 'Danger'

KIEV, Ukraine -- Russian political interference and the lack of transparency around energy supplies coming mainly from Russia threaten Ukraine as it struggles with serious political turmoil, the head of the security services in Kiev has warned.

Acting chief of the SBU (KGB) Valentyn Nalyvaichenko
"We are a young country. For any country it is dangerous when domestic politics is being interfered with by foreign sources," said Valentyn Nalyvaichenko, the acting chief of the SBU, the state security service, in his first foreign media interview.

He also pointed to the dangers of corruption, weak institutions and a lack of co-ordination in pursuing big criminal cases.

His remarks came as Ukraine is embroiled in a power struggle between President Viktor Yushchenko and his rival, Viktor Yanukovich, the prime minister, in which Moscow takes a keen interest.

A 41-year-old former diplomat and fluent English speaker, Mr Nalyvaichenko said in the interview at the SBU's imposing Kiev headquarters last week: "I feel Ukraine's independence and statehood should be protected from any turmoil, domestic or external."

The road to security lay in domestic reform and in improved co-operation with foreign security services, including those of the US, EU states, Israel, Russia and other neighbouring states, he argued.

While Mr Nalyvaichenko, who was picked for his post last year by the president, was explicit about the danger of Russian interference in Ukraine, he was careful to avoid pinning any blame on the Russian security services or other state institution.

He singled out for comment recent anti-Nato demonstrations in Crimea, where pro-Russian sentiments are strong and where the Russian Black Sea fleet is based in the Ukrainian port of Sevastopol.

There was no "domestic reason for such negative and active anti-Nato" protests, said Mr Nalyvaichenko, who, like Mr Yushchenko, is a firm believer in closer co-operation with Nato. "Dangerous" slogans were being used in Crimea and "false information" such as claims that Nato troops would be stationed in Ukraine.

"This is absolutely against the national interest of Ukraine. Using some so-called pro-Russian organisation in Crimea, politicians – mostly domestic – are exploiting this issue to boost their popularity," he said.

The SBU chief indicated he was aware of finance coming from outside Ukraine and said misusing political financing laws was "a little bit dangerous".

Those who broke the rules would be prosecuted, he said, citing the example of Proryv, the Kremlin-backed Russian nationalist youth group which had had its Sevastopol office closed by a court order.

Donetska Respublika, a separatist grouping in eastern Ukraine, where many Russia-oriented Ukrainians live, had also been taken to court.

Mr Nalyvaichenko also gave the example of Konstantin Zatulin, the nationalist Russian MP, who was banned from Ukraine after making inflammatory speeches.

As for energy security, the SBU chief said the key was greater transparency.

He promised that Russia and Ukraine would this summer provide greater clarity about the natural gas trade in which the controversial Rosukrenergo company plays a vital role. "Ukraine and Russia should make this situation more transparent. [We need to show] what the real prices are and what the real financial sources are here, the flowing of money, and risks of dirty money and money laundering. To know the real situation, the real operators, the real deal, is key."

The SBU chief complained about the lack of co-operation between state agencies, saying this undermined the rule of law, and called for reform and the creation of a new anti-corruption unit.

Source: MSNBC

Ukraine's Unfulfilled Promise

TOLEDO, OH -- Among Eastern Europe's large countries, the most consistent under-performer since the demise of the Soviet Union has been Ukraine, which is bogged down once again in a major intra-government scrap that stands in the way of economic or any other progress.


With a population of 47 million, Ukraine is not only big but it also benefits from having a lot of friends around the world, not the least of which is the United States.

America is home to many Ukrainian-Americans who support aid to the country in consolidating its independence and building up its economy.

Nonetheless, for a variety of reasons, some of them hard to justify, Ukraine has lagged behind other Eastern European countries in moving forward to take advantage of the opportunities open to it, in terms of political development and in improving its prospects to join the European Union, generally considered a positive step in that part of the world.

Instead, nasty political blood-letting continues unabated between rival elements in Ukraine.

The most recent round involves familiar names, President Viktor A. Yushchenko and Prime Minister Viktor F. Yanukovich, opponents in the 2004 presidential elections which featured, among other examples of viciousness, an apparent attempt to kill Mr. Yushchenko by poisoning.

The incident left the president disfigured and close to death for a while.

A fundamental problem appears to be divisions among Ukrainians based on regions and languages.

Rather than see these as splits in national unity that need to be resolved for the country to move forward, Ukrainians continue to dwell on their differences.

It is in part this problem that also contributes to the extensive corruption that pervades the government, a considerable barrier to foreign aid and investment, as well as to efforts on the part of domestic business people and financiers to do something with the country's considerable economic resources.

These include industry, agriculture, and mineral wealth.

Ukrainians also generally have the bad habit of blaming their problems on the Russians.

There is undoubtedly some truth to this, but rather than seeing such outside influence as an obstacle to overcome by facing Russia from a position of national unity, Ukrainians seem to play into the Russians' hands with their own political scrapping and wrangling.

What's needed are early elections, free of the viciousness that has characterized past voting.

These could come in September.

Otherwise, Ukraine is doomed to the same sort of hapless non-development that has characterized its first 16 years of renewed independence - a sad loss to its people, as well as to the rest of Europe and the world that awaits fulfillment of Ukraine's considerable promise.

Source: Toledo Blade

UN Human Rights Body Urges Probe Into Racist Attacks In Ukraine

GENEVA, Switzerland -- The UN refugee agency said yesterday that it was extremely concerned about a growing pattern of racist attacks against refugees and asylum seekers in Ukraine.

UNHCR
Some of the violence has involved police, William Spindler, a spokesman for the office of the UN High Commissioner for Refugees (UNHCR), said.

The agency urged authorities to ensure an investigation into the killing of an Iraqi asylum seeker in Kiev on June 3 is carried out fully.

"We are extremely concerned at what seems to be an increasing trend in the number and seriousness of racist attacks against asylum seekers, refugees and other foreigners in Ukraine," Spindler told journalists.

"The number of attacks and harassment against foreigners in Ukraine in the last few months make it necessary to investigate the motives of this murder carefully, including racist motivations," he added.

The agency has raised its concerns about several incidents since 2001, but more recently the UNHCR's office in Kiev has been receiving regular accounts of unprovoked racist attacks, beatings, verbal insults and other acts of xenophobia in different regions.

The problem also appeared to be affecting other foreigners in the country, the UNHCR said, despite efforts by Ukrainian authorities to deal with it.

Ukraine shares its western border with EU nations. The European Union and Kiev struck a deal in October aimed at clamping down on the movement of illegal immigrants using the country as a staging post on their way to the EU.

Source: AFP

Turkey, Ukraine Hurt By Politics: Eurasia Group

NEW YORK, NY -- Political turmoil has taken its toll on the Global Political Risk Index scores of Turkey and Ukraine, whose leaders have been mired in disputes for months, said Eurasia Group, as it released its June political stability rankings for 24 emerging markets.


The top three most stable countries are Hungary, South Korea and Poland, according to the group's scores on the Global Political Risk Index.

Tailored toward emerging markets investors, the index is produced by Eurasia Group and distributed in partnership with Citi Private Bank.

The index is based on 20 indicators in four equally weighted categories: government, society, security and economy, which are combined into a single country score on a scale from zero to 100.

The higher the score, the more stable the country.

Hungary has a score of 78, the highest in June, followed by South Korea with 76, Poland with 73, and Bulgaria with 71.

Latin American emerging markets are on the whole fairly stable, with the exception of Venezuela and Colombia.

Brazil and Mexico have a score of 66, followed by Argentina with 65. In contrast, Venezuela is among the three least stable countries with a score of 50.

Venezuelan President Hugo Chavez's nationalistic policies have spooked foreign investors. Read more about Venezuela.

"The June index highlights several significant political developments with the key information found in the government variables," said Ross Schaap, analyst at the Eurasia Group, in a statement.

For example, Ukraine's government score has fallen by five points to 36, bringing its total index score to 56, placing it in the moderate stability category.

"Continuing uncertainty over the timing of new parliamentary elections will raise investor concerns that the current political crisis will be protracted, [which] could have negative implications for the economy," the Eurasia Group said.

Ukraine, a former Soviet Republic with a population of 47 million, has enormous economic potential and an attractive geographic position between Russia and Europe.

However, the months-long stand-off between rivals President Viktor Yushchenko and Prime Minister Viktor Yanukovych has plunged the country in the worst political turmoil since the 2004 Orange Revolution.

The turmoil began when the president disbanded parliament and called a new election in early April.

Shortly afterwards, the prime minister challenged the decree before the constitutional court, further deepening the crisis. Read more.

Interestingly, the Ukrainian stock market has thus far taken the ongoing political uncertainty in stride.

The PFTS index, a capitalization-weighted index of the most liquid stocks traded on the Ukraine PFTS Stock Trading System, has surged 86% this year.

Turkey is another country in the midst of political turmoil triggered by a dispute over the parliament's election of a president.

At the heart of it is the clash between secularists and the ruling AK Party, which has Islamist roots and whose presidential candidate Foreign Minister Abdullah Gul was blocked by opposition parties.

"Though Turkey will remain relatively stable in the near term, recent political upheaval has triggered an early parliamentary election that increases uncertainty for investors in Turkish assets," the Eurasia Group said.

"The outlook for a continued Justice and Development [AKP] majority government is uncertain," it said. "The election could result in a fragmented legislature and make building a new cabinet very difficult."

Turkey's aggregate government stability rating fell to 74 in June from 67 in May, bringing its composite score to 64.

In contrast to Turkey and Ukraine, Nigeria's government score has improved.

"Despite a number of negative factors including a questionable electoral process, post-election turmoil caused by the opposition's intense resistance and persistent violence in the oil-rich Niger Delta, Nigeria's stability outlook is actually positive," Schaap said.

"This counter intuitive conclusion is in fact due to the consolidation of power by the ruling People's Democratic Party."

The PDP's economic policies improve political stability and predictability, which the GPRI index measures.

Still, Nigeria has the second lowest composite score of 49.

Below it is only Pakistan with a score of 47.

Iran and Colombia are also at the bottom of the chart, with scores of 51 and 55, respectively.

Source: MarketWatch

Contaminated Zone Near Chernobyl Nuclear Plant Becomes Wildlife Haven

PARISHEV, Ukraine -- Two decades after an explosion and fire at the nearby Chernobyl nuclear power plant sent clouds of radioactive particles drifting over the fields near her home, Maria Urupa says the wilderness is encroaching.

A herd of Przewalski's horses roams Ukraine's Chernobyl "exclusion zone." These small horses were once found throughout the grassy plains of Mongolia, but hunting and habitat loss caused the species to go extinct in the wild.
Packs of wolves have eaten two of her dogs, the 73-year-old told a visitor in May, and wild boar trample through her corn field.

Meanwhile, she said, fox, rabbits and snakes infest the meadows near her tumbledown cottage.

"I've seen a lot of wild animals here!" said Urupa, one of about 300 mostly elderly residents who insist on living in Chernobyl's contaminated evacuation zone.

The return of wildlife to the region near the world's worst nuclear power accident, first reported more than a decade ago, is an apparent paradox that biologists are still trying to measure and understand.

Many assumed the 1986 meltdown of Reactor Number Four, and the release of hundreds of tons of radioactive material, would turn much of the 1,100-square-mile (2,850 square kilometer) evacuated area around Chernobyl into a nuclear dead zone.

It certainly doesn't look like one today.

Dense forests have reclaimed farm fields and apartment house courtyards. Residents, visitors and some biologists report seeing wildlife - including moose and lynx - rarely sighted in the rest of Europe.

Some birds even nest inside the cracked concrete sarcophagus shielding the shattered remains of the reactor itself.

Wildlife has returned despite radiation levels in much of the evacuated zone that - although they have fallen significantly since the accident due to radioactive decay - remain 10 to 100 times higher than background levels, according to a 2005 U.N. report.

Some researchers insist that by halting the destruction of habitat, the Chernobyl disaster helped wildlife flourish.

Others say animals may be filtering into the zone, but that they appear to suffer malformations and other ills that threaten to send their tenuous populations crashing.

Both sides say more research is needed into the long-term health of a variety of Chernobyl's wildlife species, as governments around the world consider switching from fossil fuel plants, blamed for helping drive global climate change, to nuclear power.

Biologist Robert J. Baker of Texas Tech University was one of the first Western scientists to report that Chernobyl had become a wildlife haven.

He says the mice and other rodents he has studied Chernobyl since the early 1990s have shown remarkable tolerance for the region's elevated radiation levels.

But Timothy Mousseau of the University of South Carolina, a biologist who studies barn swallows at Chernobyl, says that while wild animals may filter into the area from outside, they have struggled to build new populations here.

Far from thriving, he says, a high proportion of the birds he and his colleagues have examined suffer from radiation-induced sickness and genetic damage.

Survival rates are dramatically lower for those living in the most contaminated areas.

In explaining their starkly differing views, Baker and Mousseau criticize each other's studies as poorly designed.

But their disagreement also reflects a deeper split among biologists who study the effects of exposure to radiation. Some, like Baker, think organisms can cope with the destructive effects of radiation up to a point beyond which they begin to suffer irreparable damage.

Others believe that even low doses of radiation can trigger cancers and other illnesses.

In the Journal of Mammology in 1996, Baker and his colleagues reported that the disaster had not reduced either the diversity or abundance of a dozen species of rodents - including mice, shrews, voles, rats and weasels - near the Chernobyl plant.

"Our studies show that a dynamic ecosystem is present in even the most radioactive habitats," they wrote.

Baker's group reported sighting red fox, gray wolf, moose, river otter, roe deer, Russian wild boar and brown hare within a 10-kilometer (6-mile) radius of the crippled plant - the most heavily contaminated area.

Outside of 30 kilometer (18.6 miles), they saw just one live animal, a brown hare.

Genetic tests showed Chernobyl's animals suffered some damage to their DNA, Baker and his colleagues reported. But they said overall it didn't seem to hurt wildlife populations.

"The resulting environment created by the Chernobyl disaster is better for animals," Baker told the Associated Press in a phone interview.

Critics of Baker point out that his work has been funded by the U.S. Department of Energy, which some view as pro-nuclear.

Baker defended the government connection, saying "we have never been asked to come up with any specific conclusions, just do honest work." He also said his work has been peer-reviewed.

Mousseau and his colleagues have painted a far more pessimistic picture.

In the journal Biology Letters in March, a group led by Anders Moller, from Pierre and Marie Curie University in Paris, said that in a study of 7,700 birds examined since 1991 they found 11 rare or unknown abnormalities in a population of Chernobyl's barn swallows.

Roughly one-third of 248 Chernobyl nestlings studied were found to have ill-formed beaks, albino feathers, bent tail feathers and other malformations. Mousseau was a co-author of the report.

In other studies, Mousseau - whose work is funded by the National Science Foundation and National Geographic Society - and his colleagues have found increased genetic damage, reduced reproductive rates and what he calls "dramatically" higher mortality rates for birds living near Chernobyl.

The work suggests, he said, that Chernobyl is a "sink" where animals migrate but rapidly die off.

Mousseau suspects that relatively low-level radiation reduces the level of antioxidants in the blood, which can lead to cell damage.

"From every rock we turn over, we find consequences," he told the Associated Press in a phone interview. "These reports of wildlife flourishing in the area are completely anecdotal and have no scientific basis."

While the experts debate, Maria Urupa, one of about 350 so-called "self-settlers" who defied authorities and moved back to their homes inside the exclusion zone, harvests tomatoes from her garden, buys fish from the nearby Pripyat River and brews her own moonshine vodka.

Eating locally-produced food is risky, health experts agree, because plants and animals can concentrate radioactive materials as they cycle through the food chain. Doesn't she fear the effects of her exposure to radiation?

"Radiation? No!" she said. "What humans do? Yes."

Source: AP

Jews Want Control Of Grave In Ukraine

GVOZDAVKA, Ukraine -- Jewish community leaders in southern Ukraine asked Thursday for control over the land where a mass grave believed to contain thousands of Holocaust victims was found.

A flower is put at what Jewish leaders say is a mass grave of Jews slaughtered in Ukraine during World War II, in the village of Gvozdavka-1, Ukraine, Thursday, June 7, 2007. Jewish community leaders in southern Ukraine asked Thursday for control over the land where a mass grave believed to contain thousands of Holocaust victims was found.
The community asked local authorities to cede the land so the site could be commemorated and respected properly, said Avraam Volf, the leading rabbi for Odessa and southern Ukraine.

"People have been walking on this territory, cars passing it, cattle driven," Volf said in a statement. "We must do everything possible to prevent such blasphemy."

The mass grave was discovered by chance last month by workers digging gas pipelines in the village of Gvozdavka-1, northwest of Odessa, regional Jewish leaders said earlier this week.

Jewish leaders in Ukraine and Holocaust scholars said thousands of Jews were brought to the area in November 1941, and that as many as 10,000 were killed.

Village council leader Vera Kryzhanivska pledged to help the Jewish community, and said the council would discuss the land request next week.

"I can predict that the decision will positive," she said.

The Jewish community said it planned to erect a fence around the site, rebury the victims and put up a monument.

Experts from Europe and Israel are expected to come to the site next week to consider identification and reburial efforts.

"Not only the dead need this, the living need it most of all. All people regardless of nationality or belief need it," Volf said.

Jewish community members held a commemorative service at the site Thursday and met with local officials.

Roman Shvartsman, from Odessa, said three additional sites with remains had been found, and that residents had suggested there were likely two more.

"Anywhere you dig you find bones — teeth and craniums," Shvartsman said. "It was terrifying."

Kryzhanivska said part of the land was used for grazing and farming and part for keeping tractors and other machinery.

"We knew about this mass grave along the river. But we didn't know where exactly it was located," she said.

Ukraine's Jewish population was devastated during the Holocaust — a tragedy powerfully symbolized by Babi Yar, a ravine outside the capital of Kiev, where the Nazis slaughtered some 34,000 Jews over two days in September 1941.

About 240,000 Jews were killed by the Nazis in the Odessa region, which was occupied by the German-allied Romanians, according to Shvartsman.

A mass grave with remains of about 3,500 Jews was found in the region last year.

Source: AP

PepsiCo, Bottler Buying 80 Percent Stake In Ukraine-Based Juice Maker Sandora For $542 Million

NEW YORK, NY -- PepsiCo Inc., the second biggest U.S. soft drink company, and an affiliated bottler are paying $542 million (€402.38 million) for a majority stake in a Ukraine-based juice company, with plans to buy the rest of the company later this year.


The acquisition announced Thursday is the first under a joint venture of PepsiCo and Minneapolis, Minnesota-based PepsiAmericas Inc., the bottler's chief executive, Robert Pohlad, told investors on a conference call.

PepsiCo and PepsiAmericas said they would buy an 80 percent stake in Sandora LLC, which they said was the leading juice maker in the former Soviet bloc country.

The acquisition gives it a base in the growing Central and Eastern European market, according to Pohlad.

He said the juice market in the Ukraine is growing 17 percent a year, and the company would continue to look for opportunities in the region.

The two companies expect to acquire the remaining 20 percent of Sandora in November.

Carbonated beverage makers are trying to expand their product offerings to juice and other non-carbonated drinks to meet shifting consumer tastes.

PepsiCo Chief Executive Indra Nooyi said in April that the company has a "rich acquisition pipeline," and its other recent non-cola beverage acquisitions include Izze Beverage Co. and Naked Juice Co.

The deal also fits with its strategy to expand in international markets.

PepsiCo's bigger rival The Coca-Cola Co. recently announced the purchase of Glaceau, the maker of Vitaminwater.

PepsiCo, based in Purchase, New York, expects the deal to close in the third quarter.

It will book the results as an equity investment and said the purchase will have no effect on financial guidance for 2007.

PepsiAmericas, an independently-traded company which is one of the largest bottlers of PepsiCo beverages, will own a 60 percent interest in the venture buying Sandora.

PepsiAmericas will manage the day-to-day operations of the business, while PepsiCo will oversee the brand development.

In addition to its operations in 19 U.S. states, PepsiAmericas has businesses in Central Europe and the Caribbean.

It expects the deal to shave 2 cents to 3 cents per share off 2007 earnings. But the company reiterated its full-year profit target of $1.35 to $1.40 per share.

It expects Sandora to add a penny per share to profit starting in 2008.

PepsiCo shares slipped 9 cent to $66.97 in morning trading while PepsiAmericas shares rose 25 cents to $24.21.

Source: International Herald Tribune

Last Chance

KIEV, Ukraine -- Members of the majority coalition from the Party of Regions, the Socialists and Communists are already toying with the idea of backing out of the Sept. 30 elections.

Party of Regions, Communist and Socialist coalition
In doing so they are effectively backing out of the compromise deal inked by Premier Yanukovych and President Yushchenko late last month.

Few believe that the Socialists and Communists have a long-term future in Ukrainian politics.

But many in the business community in Ukraine and abroad, particularly investors with interests in Ukraine, consider the Regions to be a pragmatic party backed by big business and one with a future.

Ukraine’s political arena is without a doubt cutthroat.

Yushchenko has recently taken a much harder line and has tested the resolve of Regions.

But the Regions do not have a reputation for playing soft.

In fact, they may be too reliant on hardball tactics, which has caused people to question the party’s reliability.

The party’s leaders also have a reputation of backing out of agreements when it is politically expedient.

And for those who may have forgotten, some Regions members have been associated with election falsification in the past.

If the Party of the Regions is interested in a long-term future in Ukrainian politics and salvaging its reputation among leaders of democratic Western countries, then the party must differentiate itself from the smaller coalition fish, namely the Socialists and Communists.

Regions’ leaders must honor the early election agreement even if there are legal loopholes and nuances that question their legal basis.

As it stands, Ukraine’s laws are mangled and malleable in any direction.

But this is not an excuse for backing out of the compromise deal signed by Yushchenko and Yanukovych.

The Party of Regions should honor this agreement or risk loosing the trust of Ukrainians, potential political allies and the West once and for all.

Source: Kyiv Post

Ukraine Slams Russia For Barring President's Top Aide From Entry

KIEV, Ukraine -- Ukraine's Foreign Ministry on Wednesday criticized Moscow for barring a top adviser to Ukraine's president from entering Russia hours after Ukraine denied entry to a Russian nationalist leader.

Mykola Zhulinsky, a senior aide to Ukraine's President Viktor Yushchenko on cultural issues was denied entry to Russia late Tuesday while traveling to St. Petersburg on a private trip.
Mykola Zhulinsky, a senior aide to Ukraine's President Viktor Yushchenko on cultural issues was denied entry to Russia late Tuesday while traveling to St. Petersburg on a private trip.

That happened hours after Alexander Dugin, the leader of Russia's nationalist Eurasian Movement was deported from Ukraine's southern city of Simferopol.

Kyiv had declared Dugin persona non grata, arguing he sought to destabilize the country.

The Foreign Ministry on Wednesday sent Russia a protest note, calling the incident "inhumane treatment" of its citizen and demanding an official explanation.

Over the past few years Kyiv has denied entry to a number of Russian officials and politicians who have participated in anti-government protests in Ukraine and have harshly criticized its authorities.

Moscow has retaliated by expelling Ukrainian citizens.

Source: Kyiv Post

Is Ukrainian Interior Minister Sick Or Hiding?

KIEV, Ukraine -- Interior Minister Vasyl Tsushko has left Ukraine for medical treatment in Germany. President Viktor Yushchenko had accused him of breaking the law when Tsushko ordered riot police to storm the Prosecutor-General’s Office (PGO) on May 24, at the height of a political crisis caused by Yushchenko’s controversial decree to dissolve parliament.

Interior Minister Vasyl Tsushko
This has prompted some observers and political rivals to suggest that Tsushko is simply hiding to avoid prison. Others say his claims of victimization may help his Socialist Party (SPU) in the upcoming parliamentary election campaign.

Tsushko’s friends, however, say that his condition is serious, and that he was deliberately poisoned.

On May 24 Yushchenko told a press conference in Kyiv that Tsushko had violated the law when he ordered policemen to storm the PGO, ostensibly in order to protect Svyatoslav Piskun, whom Yushchenko had just fired as prosecutor-general.

“What Tsushko did today is a crime,” Yushchenko declared. Consequently, three criminal cases were opened against Tsushko: by Piskun’s successors at the PGO for illegally occupying a public building and for abuse of office, and by the Security Service (SBU) for illegally occupying a public building. Tsushko could face up to 10 years in prison if found guilty.

Tsushko further spoiled relations with Yushchenko when on May 26, as some 2,000 interior troops loyal to Yushchenko were moving on Kyiv from the regions, he ordered traffic police to intercept them.

That same day, Prime Minister Viktor Yanukovych’s Party of Regions -- allies of the SPU -- released a sensational statement alleging that the newly appointed first deputy secretary of the National Security and Defense Council, Yushchenko ally Oleksandr Turchynov, would not stop short of assassinating Tsushko.

The statement said that a plan allegedly devised by Turchynov provided for “getting rid of Tsushko under the guise of a car accident or deterioration of his health.”

Yushchenko scolded Tsushko for his behavior in a telephone conversation on May 26. Tsushko reportedly tried to explain his actions at the PGO by emotions and lack of information, but Yushchenko found this excuse lame.

According to Kommersant’s Mustafa Nayem, Yushchenko invited Tsushko to his offices, but Tsushko refused to go, fearing arrest. On May 27, when Yushchenko and Yanukovych reached an agreement to settle the political crisis, Tsushko was hospitalized and diagnosed with a heart attack.

This, however, remained unknown to the public until May 30, when the Interior Ministry’s press service said that Tsushko’s heart condition was so serious that “doctors forbade all communication with him.”

An aide to Tsushko, lawyer Tetyana Montyan, told ICTV that she had seen Tsushko in the hospital and that he was “half dead.” She said that Tsushko told her that his illness had been caused by poisoning, and that he asked her to make public the name of the person who poisoned him if he dies.

The poisoning allegation was taken rather skeptically by the PGO, the SBU, and the Interior Ministry’s press service, all of which said that they had no information about such an attack. Socialist MP Yevhen Filindash, speaking in parliament on June 1, insisted that Tsushko had been poisoned, and hinted that he held Yushchenko’s aides responsible.

Meanwhile, on May 31 Tsushko was flown to a hospital in Germany where surgeons reportedly performed a coronary bypass for him.

This did not mollify Tsushko’s rivals. Yaroslav Kendzer, a prominent member of Yushchenko’s Our Ukraine party, suggested that Tsushko had fled Ukraine in order to avoid prison.

As Tsushko has not been in contact with either journalists or law-enforcement officials, rumors about the reasons behind his hospitalization keep multiplying. Several media outlets have reported that a stimulant was found in his blood that could have triggered a heart attack.

Glavred, a website close to Yushchenko’s team, reported that German doctors had diagnosed Tsushko with a nervous breakdown.

Ukrainians may be inclined to believe that Tsushko has fallen the victim of conspiracy. Mystery still surrounds the fates of his two predecessors in the post of interior minister: after the Orange Revolution, Yuriy Kravchenko committed suicide, while Mykola Bilokon fled Ukraine to Russia.

Also, Tsushko’s poisoning would not be the first in Ukrainian politics: it is widely believed that Yushchenko was deliberately poisoned in 2004, which arguably helped him win the presidential election.

Tsushko’s case, ironically, may now prompt Yushchenko’s enemies to accuse Yushchenko of conspiring against his political opponent. The presence of a “martyr” among their ranks may help the SPU raise its profile in the run-up to the early parliamentary elections scheduled for September 30.

The informed weekly Zerkalo nedeli has suggested that Tsushko may top the SPU candidate list for the elections. Before Tsushko’s mysterious illness, opinion polls showed that the SPU might not clear the 3% barrier to parliament.

Source: Eurasia Daily Monitor

New Holocaust Horror In Ukraine

GVOZDAVKA, Ukraine -- The blood-soaked soil of Ukraine has served up another horror - a mass grave holding the bodies of at least 5,000 Jews near the site of a former Nazi concentration camp.

German invaders setting fire to a Ukrainian village.
And Holocaust experts said they expect to find more bodies in the rundown village of Gvozdavka-1.

"Ukraine was an enormous killing field, hundreds of thousands of Jews were murdered and the entire region is literally filled with hundreds of mass graves," said Efraim Zuroff, director of the Israel office of the Simon Wiesenthal Center.

Word of the discovery hit Holocaust survivor Fira Stukelman like a body blow, because her mother was one of the tens of thousands murdered at Babi Yar outside Kiev in 1941 and buried in a mass grave.

"It reminds us of the Nazis, it reminds us of the Holocaust, it reminds us of everything," said Stukelman, 74, of Sheepshead Bay, Brooklyn. "This makes me sick. When I hear these stories I cannot sleep."

Starting in 1941, the Nazis and their Romanian and Ukrainian allies murdered an estimated 240,000 Jews from the Black Sea port of Odessa and what's now the nation of Moldova.

While Jewish leaders knew many were brought to the concentration camp at Gvozdavka-1, some 110 miles northwest of Odessa, nobody knew where the bodies were buried until last month, when workers laying gas pipes found them.

"The Germans tried to cover up their crimes by forcing Jewish prisoners to exhume the mass graves and burn the bodies," said Peter Black, senior historian at the Holocaust museum in Washington. "But they weren't able to get to all the sites."

Six million Jews were murdered during World War II and 1.5 million of them were Ukrainian. Before that, as many as 10 million Ukrainians had starved to death in the famine engineered in the 1930s by Stalin's brutal regime.

But many of the burial grounds weren't located until after the Soviet Union collapsed and Ukraine became an independent country.

"Every time we think that there's closure to this tragic chapter of the Jewish people, we get reminders that it's not over," said Abraham Foxman of the Anti-Defamation League.

Source: NY Daily News

Ukraine's President Signs Law On September 30 Snap Polls

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko signed a decree Tuesday formalizing his earlier deal with the prime minister to hold early parliamentary elections September 30.

Ukraine President Viktor Yushchenko
Yushchenko and his archrival, Viktor Yanukovych, agreed May 27 to hold snap elections in a bid to end the protracted political crisis in Ukraine, which was threatening to turn violent as troops loyal to both leaders were being drawn into the power struggle.

Last week, Yushchenko suspended his April 2 order to dissolve the Supreme Rada for four days to give the legislature time to pass laws clearing the way for snap polls and refresh the Central Election Commission (CEC).

And 195 lawmakers from two factions in opposition to the premier-controlled majority coalition quit the 450-member legislature to prevent the coalition, still reluctant to dissolve, from continuing its work.

Tuesday's decree tasks the CEC, which now comprises eight coalition and eight opposition members, with preparing for the elections and the Cabinet with allocating about $73 million for the polls.

Yushchenko has been pressing for parliament's dissolution and early elections following the defection by 11 opposition members to the ruling coalition, which the president said was an attempt to "usurp power."

Moscow-friendly Yanukovych, who was defeated by Yushchenko in the contested presidential elections in 2004, eventually agreed to early polls, ending two months of political infighting and street rallies.

Yanukovych returned to politics last year, when his party won the majority of seats in parliament and formed the ruling coalition.

Source: RIA Novosti

There's A Crisis Here Somewhere - Ukraine

KIEV, Ukraine -- Arriving in Kiev on a swelteringly hot day last week, I went walking in the city centre. I found myself exchanging pleasantries with three burly black-clad commandos, sporting guns and truncheons, sitting in a four-wheel drive—and eating ice-cream.

Kiev's Independence Square
Like everyone else on Independence Square they were enjoying the cool gusts from the fountains. „It is too nice a day to talk about politics”, said one of them, smiling broadly. „Let's talk about women.”

I had hit upon a national holiday, when the favorite leisure activity among a fair proportion of the residents of Kiev seems to consist of wandering purposelessly along the city's main shopping street, Khreshchatik.

Stalls on the pavement were doing brisk trade in the usual (for Ukraine) tourist stuff: yellow and blue national flags, old Soviet red banners, and T-shirts emblazoned with the portraits of two bitter political rivals Yulia Tymoshenko, a populist opposition maverick known for her fiery rhetoric and plaited hair, and Viktor Yanukovich, the prime minister.

Here at least there was no difference between them: either shirt could be had for 30 Hryvna ($6). One thing missing from the streets was any sign of the protracted political crisis—a power-struggle between president and parliament—that brought me to Kiev.

A few hundred meters from Independence Square the Ukrainian parliament was into its second month of turmoil; President Viktor Yushchenko, having tried to dissolve it in April, was reduced to issuing decrees that were being ignored by his own government; even the ice-cream-eating commandos had seemed on the brink of a violent clash with presidential guards just a few days before, after the president sacked the prosecutor-general.

Towards the end of 2004 Independence Square was a theatre of the Orange revolution that brought Yushchenko to power, beating out Yanukovich.

If the public mood has been a lot less troubled this time round, as the two have clashed again, that argues for two related explanations: first, Ukrainians have got at least temporarily bored with the whole circus of politics; and, second, they can afford to get bored, because the economy is steaming ahead.

There is plenty of food in the shops, new restaurants are springing up on every corner—and if you don't fancy shopping or eating, there are large shady parks giving cover from heat and politics alike.

The conversations I have been having strongly suggest that few Ukrainians are even trying to understand what is going on in their country any more.

And if they don't understand, what hope have I? One obvious thing I can do, coming in from Moscow, is to look for parallels with Russia. I can think back, for example, to that sunny afternoon in October 1993 when, after a long stand-off between President Boris Yeltsin and his parliament, Yeltsin ordered tanks to fire empty shells at the parliament building.

But the differences between this stand-off in Ukraine, and that stand-off in Russia, have been far more striking than any similarities.

First, nobody in Ukraine has seemed in the mood for violence. When troops loyal to Yushchenko drew close to Kiev recently they were stopped by traffic police loyal to Yanukovich.

They got out of their buses and proceeded on foot, unarmed. Second, the conflict in Russian reflected an ideological divide. Die-hard nationalists and communists, ready to hang Boris Yeltsin's team from the first tree, confronted an elected pro-Western president hostile to the Soviet legacy.

The conflict in Ukraine is a lot less straightforward—not least because it lacks heroes. It is not a fight between communists and capitalists. It is not even a fight between the Russian-speaking east and the Polish-comprehending west of Ukraine.

To call Yanukovich 'pro-Russian' and Yushchenko 'pro-Western' is no longer accurate: both are seeking closer ties with Europe, and neither wants to be back in Russia.

The situation in Ukraine is something closer to a plain (if not simple) power struggle over who will run the country, and how. When the Soviet Union collapsed in 1991 Ukraine had next to no experience of managing its own affairs.

Building a state was never going to be easy, and Ukraine made heavy weather of it. It evolved a style of politics that was all inside baseball, with no durable rules.

You might almost say that this crisis is to be welcomed, so long as it plays itself out within the political class, and so long as it leads to agreement on a few rules sufficient to stop something similar happening all over again.

Source: The Economist

Putin Attacked Notion Of Ukraine Joining NATO

NOVO OGAREVO, Russia -- In four hours at his country residence, Vladimir Putin talked at length about his desire for cooperation with other countries but blamed them for provoking conflict, attacked them for abuses of human rights and democratic freedoms, and gave not an inch on the clashes between Russia and the West, according to The Times.

Ex-KGB Vladimir Putin considers himself to be 'a pure and absolute democrat'.
In particular, Putin had no objections to eventual European Union membership for Ukraine – where Russia cut off gas supplies in January last year in a row about pricing – but he attacked the notion of Ukraine joining NATO. “For 15 years we have been subsidizing the former Soviet Republic with cheap energy,” he said. “What is the logic?”

He recalled an old joke about Erich Honecker, the last East German leader – you could tell which phone on his desk had the direct line to Moscow because it was the one with only an earpiece. “This is the way that Nato functions,” he said, “except that the phone is connected to Washington.”

According to The Times, he dismissed as “another piece of nonsense” suggestions that Russia should be thrown out of the G8 for failing to improve democracy as it promised when it was made a member in 1998. “Let us not be hypocritical on human rights and democratic freedoms,” he said in a swipe at other countries, which is his favourite rebuttal technique. “Let us look what is happening in North America. It is horrible – torture, the homeless, Guantanamo, detention without normal court proceedings.” In Europe, he said, “we can see violence against demonstrators, the use of gas to disperse rallies”.

“Of course, I am a pure and absolute democrat,” he said. “But you know what the problem is – not a problem, a real tragedy – that I am alone. There are no such pure democrats in the world. Since Mahatma Gandhi, there has been no one.”

The Kremlin had summoned a newspaper from each of the G8 countries –Britain, the US, Russia, Japan, Canada, Italy, France and Germany – and employed an international public relations company to “put Russia’s message across” before the annual summit, which begins on Wednesday in Heiligendamm, Germany.

The Novo Ogarevo residence is where Mr Putin retreats most evenings; his cavalcade, with four outriders, can cover the eight miles in minutes, along a highway lined with new Ralph Lauren and Prada boutiques, but for ordinary commuters in Moscow’s immobile traffic it would take two hours.

For all the trappings of hospitality, Mr Putin’s message, when finally delivered, was uncompromising on all the fronts that threaten to scupper the G8 meeting: not just the US plans for missile defence, but Iran, Kosovo, human rights, protection for foreign investors and Nato expansion.

Mr Putin argued that “an arms race is unfolding”, but blamed the US for starting it by quitting the 1972 AntiBallistic Missile Treaty in 2002, planning to deploy missiles in outer space and developing smaller nuclear weapons.

He cautioned that “we do not want to use our resources” for an arms race and that “we will find an asymmetric answer”, pointing missiles at Europe or declining to cut conventional forces near Europe. “Of course, we are returning to that time” when Russian missiles were aimed directly at Europe, he said. Nor did he offer hopes of gentler treatment for Russia’s neighbours with whom he has picked recent fights.

Source: Unian

Discount Super-Geeks Fuel Ukraine IT Boom

KIEV, Ukraine -- With its Soviet-era institutes processing thousands of top-class programmers each year, Ukraine is using its low wages and proximity to Europe to carve a niche in the hyper-competitive software industry.


"Our work is more creative, it's less like a conveyor belt than in the West," said Ruslan Didenko, 27, a programmer at GSC Game World, a company based in a grey block near Kiev city centre.

GSC was set up in 1997 and has now produced three games that have sold well on European markets, including Stalker, a shoot-em-up set in the Chernobyl nuclear disaster zone.

Industry experts say thousands of companies like GSC are sprouting up in Ukraine, favoured because of its location on the border of the European Union and its large pool of skilled, and relatively cheap, programmers.

"This is one of the fastest-growing sectors in the Ukrainian economy," said Viktor Maznyuk, head of Hi-Tech Initiative, an industry group of 39 Ukrainian companies specialised in IT outsourcing.

Citing analyst estimates, Maznyuk said the IT sector in Ukraine is worth around $600-million (about R4,2-billion) per year. It employs about 25 000 people and is expected to grow by up to 25 percent this year alone.

"More and more European companies are looking at Ukraine - some are disillusioned with India and China. Ukraine can compete on more complicated programming," Maznyuk said.

Programmers often come from prestigious Soviet-era mathematics and technology institutes in Kiev, as well as in Kharkiv in the east of this country of 47-million, and Lviv in the west.

Depending on skill level, the average salaries range between $300 and $1 000 per month - far lower than in most European countries and the United States.

Companies tapping in

Although many firms are wary of selling software in Ukraine itself because of widespread piracy, the big foreign players, including IBM and Intel, have set up shop here, while others are tapping the country's outsourcing potential.

"We're in the same time zone as Europe - that makes contacts with clients easier," said Alexei Sigov, CEO of Infopulse Ukraine, one of the biggest software companies in Ukraine.

"When you need pro-active participation by a team - that's where we have the biggest advantage," said Sigov, whose company has grown around 30 percent in the past four years and employs about 340 programmers.

Among Infopulse's clients are firms in Denmark, France and the Netherlands.

For the industry, the main boost from the government was a decision by President Viktor Yushchenko in 2005 to scrap visas for EU, Japanese and US nationals.

But for all the Western feel of Ukraine's computer sector - including the ping-pong table and gym at GSC headquarters - the business manages to retain a Ukrainian identity.

At GSC, Oleg Yavorsky, a long-haired 28-year-old manager in black cycling shoes and capri trousers, said players in Europe liked the "exotic" themes in Ukrainian games - Chernobyl, for instance.

Programmers for Stalker actually left their computer screens and travelled to the 1986 disaster zone in northern Ukraine for research, speaking to survivors and researching archives.

"We had to be pretty careful where we walked. Not to step on any moss. I think we managed to create the same atmosphere in the game," said Didenko - a computer programmer far from California.

Source: AFP

Ukraine Leader Hails Poll Deal

KIEV, Ukraine -- President Viktor Yushchenko on Saturday said Ukraine had come of age by resolving a political crisis without foreign help, but there were signs that the deal clinched to end weeks of deadlock was already fraying.

President Viktor Yushchenko
A solution to the crisis, pitting Yushchenko against his rival, Prime Minister Viktor Yanukovich, was put in place as midnight approached on Friday when parliament passed legislation needed to hold an early parliamentary election in September.

But less than 24 hours later, Yanukovich's allies alleged that the liberal opposition, backers of the president, had failed to meet their obligations for parliament to be dissolved in strict legal fashion.

Yushchenko dissolved the assembly in April and ordered the election.

The date was set only after wrangling culminating in a deal this week with Yanukovich, his rival from the 2004 "Orange Revolution", subject to approval of the legislative package.

"The fact we resolved the parliamentary crisis in a decent and democratic way is a colossal achievement," Yushchenko told opposition leaders in comments broadcast later on the radio.

"This has been a test which we have passed with honour. This has been entirely Ukraine's effort."

Yushchenko took office after defeating Yanukovich in the re-run of a rigged 2004 presidential election following weeks of "orange" protests denouncing poll fraud.

An accord then to stage a new poll and alter the constitution, reducing the president's powers, was struck with the help of European mediators.

"ROTTEN TO THE CORE"

Parliament, hostile to Yushchenko, passed three measures related to the September 30 poll on Friday, just over an hour before his third deadline to the assembly was to expire.

One of the sitting's last acts was a move by two opposition parties to give up more than 150 seats, a third of the 450-seat chamber, to underpin parliament's dissolution.

But Taras Chornovil, an ally of the prime minister, said the procedure was flawed.

"We have done everything to ensure the election takes place," he told Radio Era. "But for me, the notion of 150 members giving up their seats is very dubious."

Parliamentary leaders scheduled a new sitting for next Tuesday, though the assembly's legal status was uncertain.

In his latest comments, Yushchenko said the current crisis had exposed the failings of post-Soviet institutions, notably the constitutional court and the prosecutor general's office.

"The ... crisis was difficult and deep-rooted. It showed that key state institutions are rotten to the core," he said.

Had the constitutional court operated efficiently, he said, "we would have solved the crisis much more quickly without corruption, fuss or humiliation. But it didn't work."

The president dissolved the chamber after accusing the prime minister of illegally poaching his supporters to enlarge his majority in parliament.

Yanukovich initially resisted the order and both leaders agreed to abide by a Constitutional Court ruling.

But many analysts doubted the court's impartiality and the president later said he would have nothing to do with it.

He tried to sack the prosecutor general during the crisis and accused his office of being too politicised.

Source: Javno

Ukraine Lawmakers Pass Election Bills

KIEV, Ukraine -- Ukrainian lawmakers on Friday finished passing a series of bills needed to hold early parliamentary elections, a significant step toward resolving the country's political crisis that some had feared would spill over into violence.

President of Ukraine Viktor Yushchenko (R), meets with Prime Minister Viktor Yanukovich (L), and Secretary of the National Security and Defence Council Ivan Plyushch (C), in Kiev, Ukraine, Friday, June 1, 2007.
"We unblocked the way for elections," said Ksenia Lyapina, a lawmaker allied with President Viktor Yushchenko.

Under an agreement between Yushchenko and his rival, Prime Minister Viktor Yanukovych, the elections are to be held in the former Soviet republic Sept. 30.

Ukraine's political tensions amid a persistent power struggle soared after Yushchenko's April 2 order to dissolve parliament, which he said was necessary because Yanukovych's majority coalition was allegedly trying to usurp power.

Yanukovych and his supporters refused to recognize the order, calling it unconstitutional.

The argument escalated sharply a week ago when the president fired prosecutor-general Svyatoslav Piskun, a member of Yanukovych's party, and the Interior Ministry, led by another Yanukovych ally, sent police to Piskun's office to prevent his eviction.

Yushchenko in turn claimed command of the Interior Ministry's troops and ordered some squads sent to the capital, raising concern that an armed confrontation between the factions would break out.

Tensions cooled when the president and premier on Sunday reached agreement on calling early elections, but that was followed by days of wrangling in parliament over the enabling legislation.

Although the legislation was finally adopted about an hour before the deadline set by Yushchenko, uncertainty remained about how long the current parliament would exist.

A Yanukovych ally, Oleksandr Peklushenko, said the legislature would continue to work.

But the parliament would be dissolved if 151 of its 450 members resign, and Yushchenko backers say 168 deputies are ready to do that.

The dispute has been closely watched in both the West and Russia.

The country of 47 million had long been within Moscow's sphere of influence, but Yushchenko aims to move it West and gain eventual membership in NATO and the European Union.

Yanukovych is seen as more oriented toward Russia.

Yushchenko and Yanukovych were bitter rivals in Ukraine's 2004 presidential election. Yanukovych was declared the winner of a fraud-riddled vote that sparked mass protests known as the Orange Revolution.

Yushchenko won a court-ordered repeat of the balloting, but Yanukovych returned to prominence last year when his party won the largest share of seats in parliament and he formed a majority coalition.

Source: Associated Press (AP)

Civil-Military Relations Dominate Ukraine's Political Crisis

KIEV, Ukraine -- Ukraine’s spring 2007 political crisis was the first occasion in Ukraine’s history that brought the country to the brink of bloodshed on three separate fronts.

NSDC Deputy Secretary Oleksandr Turchynov
National Security and Defense Council (NSDC) Deputy Secretary Oleksandr Turchynov said that last weekend (May 24-27) could have descended into violence between supporters of President Viktor Yushchenko and Prime Minister Viktor Yanukovych.

The specter of conflict pushed both sides toward a compromise over Saturday night.

First, on May 24 two law enforcement units, Interior Ministry (MVS) riot police (“Berkut” or “Eagles”) and the State Protection Directorate came to blows in the prosecutor’s central office in Kyiv.

The U.S. equivalent would be an altercation between a police SWAT team and the Secret Service.

Second, Berkut forces illegally occupied a central government building. Interior Minister Vasyl Tsushko also ordered Tytan, the special forces of the Directorate to Combat Organized Crime, and the elite Omega special forces unit to prepare to storm more buildings.

Again, this was a first for Ukraine.

Third, President Yushchenko ordered MVS troops to move on Kyiv.

This was the second time MVS troops had been ordered into downtown Kyiv, the first being on November 28, 2004, to suppress the pro-Yushchenko Orange Revolution.

Neither time did the Internal Troops reach downtown Kyiv.

In 2004 their route was blocked by taxis and the commander of military ground forces, who threatened to intervene in support of the pro-Yushchenko supporters.

In 2007 they were blocked by traffic police.

Yushchenko’s actions last weekend were confusing.

On May 24 he warned the security forces to stay out of the crisis, but two days later he dispatched Internal Troops to the capital, a move confirmed by the NSDC.

On May 27 Yushchenko ridiculed the claim that he had ordered them to Kyiv, claiming that the MVS troops were sent to keep order at the Donetsk Shkakhtiar-Kyiv Dynamo soccer match and for the holiday weekend.

The MVS troops are the largest security force in Ukraine and come under the jurisdiction of the government.

The constitutional reforms that went into effect in January 2006, transferred control over the government from the president to a parliamentary coalition.

Under the constitutional reforms, the president retains control over the Security Service (SBU) and their Alpha anti-terrorist unit, the NSDC, foreign and defense ministries, and the prosecutor’s office.

The Anti-Crisis coalition in control of parliament has challenged the president’s jurisdiction over the Foreign Ministry and fired foreign minister Borys Tarasyuk in December 2006.

The Anti-Crisis coalition has also dominated the prosecutor’s office.

Both sides in the crisis broke the law in an attempt at gaining advantage. Interior Minister Vasyl Tsushko had no legal right to dispatch riot police to the prosecutor’s office, as the State Protection Directorate guards central government buildings.

Yushchenko infringed the law when he expanded the NSDC to include personnel that were not specified in Ukrainian legislation, such as MVS Internal Troops commander General Oleksandr Kihtenko.

Yushchenko also brought Ivan Pliushch back to replace NSDC chief Vitaliy Hayduk, although by law he is too old to work in a state institution.

The head of the presidential secretariat, Viktor Baloha, also supported Hayduk’s removal.

As Zerkalo nedeli pointed out, “Baloha thereby “neutralized” the man who objected to the NSDC being involved in dubious plots.”

Baloha has two key allies: Oleksandr Turchynov, Yulia Tymoshenko’s right-hand man, who was appointed NSDC deputy head on May 23, and Valeriy Geleteya, an ally from Baloha’s hometown, Mukachevo, who was appointed head of the State Protection Directorate two days later.

Yushchenko also placed MVS Internal Troops under his command, contradicting Article 6 of the Law on Internal Troops.

The MVS disputed the decree transferring the units to presidential control.

Yushchenko took control of Internal Troops for two reasons.

First, MVS Minister Tsushko was planning to escalate the growing conflict by requesting 11,000 weapons and millions of rounds of ammunition from the military (a request confirmed by the defense minister), and was planning to send Internal Troops, 50 men from its Omega special forces unit, six snipers, and a helicopter.

The activation of these forces indicated that Tsushko was planning to order the storming of other buildings.

Second, as commander-in-chief, Yushchenko questions whether any security forces designated as “troops” (such as MVS Internal Troops) should be beyond his constitutional control.

Control over the MVS has long been a disputed point within the Ukrainian leadership.

MVS Internal Troops had two functions in the Soviet era: to guard prisons and to crush internal dissent.

Following the failed August 1991 Soviet coup, special force units designed to quell dissent were detached from the Soviet MVS forces in Ukraine. These became the basis for a Ukrainian National Guard.

Since the National Guard was created before Ukraine elected its first president in December 1991, jurisdiction over them was divided between parliament and president.

This dual control proved to be an irritant to President Leonid Kuchma (1994-2004) who abolished the National Guard in 1999.

In 2000 the National Guard units were transferred back to the MVS, which Kuchma controlled under the 1996 constitution.

During the Orange Revolution these MVS Internal Troops and special force units (Bars, Hepard, Jaguar, Omega) were the only security forces that remained loyal to Kuchma.

The MVS “Crimean Bars” special forces prevented orange forces from taking over the presidential administration during the Orange Revolution, and their presence in Kyiv led to rumors of “Russian spetsnaz” units in Kyiv.

Yushchenko’s actions during the current crisis mirror the conflict between Kuchma and parliament over the allegiance of these security forces.

Judging by their actions in 2004 and 2007, the MVS special forces and Internal Troops remain pro-presidential.

In recent days Ukraine came much closer to violent conflict than it ever did under Kuchma.

Battle over control of the security forces, with the breaking of legislation by Yushchenko and Yanukovych, is likely to continue, as both sides see control over them as important in negotiations.

Fearing arrest, Tsushko has taken refuge in an Interior Ministry hospital amid claims he has been “poisoned.”

Source: Eurasia Daily Monitor

Stalled By Conflict, Ukraine’s Democracy Gasps For Air

KIEV, Ukraine -- Two and a half years ago, the “Orange Revolution” promised Ukrainians a freer, more democratic system of government. Instead, the country now finds itself mired in perpetual political crisis, punctuated by confusion, chaos and, at times, comedy.

Svyatoslav M. Piskun, the prosecutor general, says the president has exceeded his authority.
In April, President Viktor A. Yushchenko issued a disputed decree dissolving Parliament. That led to charges, countercharges and dueling protests between the country’s warring camps, led by Mr. Yushchenko on one side and the prime minister, Viktor F. Yanukovich, on the other.

On Wednesday, for example, protesters gathered outside the headquarters of the prosecutor general, a member of Mr. Yanukovich’s party whom the president had already fired two times.

Drawn by rumors of an imminent assault by government commandos, they blockaded the leafy streets while their leaders issued instructions on how to resist and warned of nefarious NATO plans to subjugate the nation.

“We don’t want to be imprisoned by America, like Yugoslavia was,” one protester said.

Inside, a dozen members of Parliament occupied a landing by the elevator, vowing to protect the prosecutor general, Svyatoslav M. Piskun. “Give me the Constitution,” one deputy demanded, and then thumbed through the one produced in search of some legal justification for all of this.

Mr. Piskun, who has accused Mr. Yushchenko of criminal conduct for exceeding his constitutional powers, has refused to step down.

The president, in an interview, accused him in turn of politicizing the justice system. He had already appointed somebody else to the post, only to have his decree, like most of late, ignored.

The country’s leaders agreed early last Sunday morning to end a prolonged political impasse by holding new parliamentary elections, the second in less than two years.

But that agreement, which appeared to be unraveling on Thursday, has done little to resolve the underlying disputes.

They include an unclear division of power between a weakened presidency and an empowered Parliament; allegations of corruption in Parliament and the courts; and a lack of mature democratic institutions able to emerge from the shadows of the oversize political personalities who dominate Ukrainian politics.

The result has been not only endless conflict, but also public apathy, tinged with disappointment, which even the country’s leaders acknowledge having caused.

“We started a kind of judicial game, using the flaws of our laws,” Mr. Piskun said in his barricaded building, referring to legal challenges that have been swirling around him. “We make people lose trust in the judicial system.”

Ukraine is immeasurably freer than it was in 2004, when President Leonid D. Kuchma tried to orchestrate the fraudulent election of a successor, Mr. Yanukovich, setting off protests that led to a new election, won by Mr. Yushchenko.

One measure of that is that Mr. Yanukovich’s Party of Regions won enough seats last year in parliamentary elections to make him prime minister.

Ukraine, though, has failed to consolidate its democracy, even as it has embraced the theatrics of democratic politics.

Protests abound, though often with paid protesters, as do the tents that in 2004 filled Independence Square, known as the Maidan. So, ominously, do political threats and brinkmanship.

Those activities nearly resulted in violence when Interior Ministry troops, following orders from the interior minister, a Yanukovich loyalist, occupied Mr. Piskun’s office after the president tried to dismiss him.

Mr. Yushchenko then declared the ministry’s military forces under his command, and the top uniformed commander declared his loyalty to the president.

The interior minister, Vasyl P. Tsushko, was hospitalized Wednesday, reportedly with a heart ailment.

On Thursday, a member of his Socialist Party declared that the minister had been poisoned by his opponents, implicitly Mr. Yushchenko’s supporters.

Poison is a motif of Ukrainian politics, the most notable case being Mr. Yushchenko’s poisoning before the 2004 vote.

That crime remains unsolved, an emblem of Ukraine’s uncertain embrace of the rule of law. The twist is that Mr. Yushchenko is now accused of abusing the law.

That stems from his decision — with the parliamentary majority led by Mr. Yanukovich growing and members of his own party defecting — to issue a decree dissolving Parliament in April on narrow grounds that members were switching parties, which he called “an issue of political corruption.”

His opponents assailed the move as unconstitutional, but when they took the matter to the Constitutional Court, Mr. Yushchenko dismissed 3 of the court’s 18 judges, accusing them of corruption.

The Constitutional Court, Mr. Piskun retorted indignantly, is “the backbone of democracy.” He acknowledged that there might have been justification for Mr. Yushchenko’s charges, but he said there was a judicial and parliamentary process for resolving them.

Mr. Yushchenko defended his actions, though he appeared subdued, even resigned. “I would like to emphasize this is not a political crisis,” he said of the turmoil surrounding the prosecutor’s office. “It is just a reality of political life in Ukraine.”

Ukraine remains a deeply divided country, with a large Russian-speaking population that has bristled at Mr. Yushchenko’s embrace of the European Union and NATO at the expense, as widely seen, of fraternal ties with Russia.

Increasingly, though, the divisions appear less substantive and more political and personal.

Kostyantyn Gryshchenko, a former foreign minister and an adviser to Mr. Yanukovich, said that the Yanukovich camp was equally committed to integrating Ukraine into the global economy and, eventually, into the European Union, though NATO remains unpopular.

Instead, he said, elections increasingly turn on personalities.

“People here vote most likely for the leader whom they like,” he said in an interview. “I would hesitate to say trust, but like is the right word.”

Others said that Ukrainian politics had simply become a struggle over access to business. “Having power gives you the instruments to do business,” said Oleksandr O. Moroz, who became speaker of Parliament after breaking with Mr. Yushchenko’s camp last summer. “They are fighting for power to obtain these instruments.”

The biggest concern in Ukraine is that elections are unlikely to significantly change the makeup of Parliament.

They could simply prolong the failures to bolster the institutions necessary to allow democracy to flourish, including prosecutors and courts independent of presidential decrees and street protests.

Without institutional changes, said Anatoly K. Kinakh, who became minister of the economy after defecting from Mr. Yushchenko’s camp this year, “this election will not produce any better quality of democracy.”

Source: The New York Times