Monday, June 30, 2008

Platini Heads To Ukraine And Poland With Worries About Euro 2012 Hosts

LONDON, UK -- The European Championship may be over but Michel Platini's work is not. The UEFA president tomorrow begins a two-day inspection tour of Poland and Ukraine, the joint-hosts for Euro 2012, which is expected to conclude in a final warning for Ukraine in particular.

Michel Platini: two-day inspection tour of Poland and Ukraine.

On Saturday he said that a final decision on whether Poland and Ukraine will host the tournament will be made in September.

The decision to award the finals to the former Soviet Bloc countries was a bold and surprising one, driven by a combination of realpolitik and evangelism.

The gamble is in danger of backfiring. Both countries have a huge amount of work to do on upgrading their infrastructure but progress has been slow.

In Ukraine the issue has become a political football with various factions using the situation to push their cause. There is plenty to blame to apportion.

Only last week Ukraine's sports ministry announced it was looking for a new contractor to renovate Kiev's Olympic Stadium, which is scheduled to host the final, after a long dispute with the original Taiwanese builders.

Four of the eight proposed venues need new stadia while the other four need significant refurbishment.

The sheer scale of the proposed competition is a problem. The 1,200-mile journey from Gdansk, one venue, to Donetsk, another, takes 43 hours by train, 22 hours plus border delays, by road – only 16 miles of which are on motorways.

There are no direct flights. Warsaw is the only Polish city with direct flights to Ukraine, and there are none to Donetsk.

Earlier this year, Igor Miroshnychenko, of the Ukrainian FA, admitted: "It's not a good situation here. We have no main stadium and there are problems with the roads. Can we host it? I really don't know."

If the September deadline is not met, then UEFA will begin talking to possible replacements.

Spain, which has excellent stadia and a working infrastructure, missed out in 2004 and are favourites. The country last hosted in 1964. Italy, who lost in the bidding process, are another contender.

The Scottish and Irish will pitch a reprise of their joint bid which is unlikely to succeed, and there is a possibility, if Poland show that they are making progress, that they could combine with Germany for a joint bid.

Source: The Independent

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Sunday, June 29, 2008

Putin Says Central Asia Wants To Raise Gas Price For Ukraine

MOSCOW, Russia -- Russian Prime Minister Vladimir Putin on Saturday told his Ukrainian counterpart that Central Asian countries were urging Moscow to increase gas prices for Ukraine.

Russia's Prime Minister Vladimir Putin (R) and his Ukrainian counterpart Yulia Tymoshenko meet in Moscow for talks June 28, 2008.

Putin made the comments at the end of talks in Moscow with Ukranian Prime Minister Yulia Tymoshenko during which he also threatened to restrict military cooperation if the neighbouring country joined the NATO military alliance.

"We would like to move to European prices for Ukraine little by little, but our central Asian partners want to do so from January 1, 2009," Putin told journalists.

"We are negotiating on this question. But it is still too early to talk of results," he added.

The price Ukraine pays for gas imports from Russia could more than double to over 400 dollars (254 euros) per 1,000 cubic metres in 2009, Gazprom chief executive Alexei Miller told reporters earlier this week.

Russia has a number of times reduced or cut altogether gas supplies to its neighbour Ukraine, raising concerns in European Union countries about Moscow's reliability as an energy supplier.

Meanwhile, on Ukraine's NATO ambitions, Putin said Russia remained opposed.

"We believe that the enlargement of NATO is counter productive from the point of view of international security," he said.

Despite appeals from US President George W. Bush, the North Atlantic Treaty Organisation, at its April Bucharest summit, refused to put Ukraine on a definite track for membership in the Western military alliance.

Wary of alienating a resurgent Russia, European leaders denied both Ukraine and Georgia access to the alliance's Membership Action Plan, or MAP, which grooms states for accession.

Source: AFP

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More Cheap Flights Coming To Ukraine

KIEV, Ukraine -- Weeks after Hungary’s Wizz Air revealed plans to launch the first low-cost airline service in Ukraine, news broke that other foreign airlines are also planning to enter the market.

German airline Germanwings

The arrival of low-cost airline services is expected to significantly cut the price of air travel and comes at an opportune time, just ahead of the Euro 2012 soccer championship to be jointly hosted by Ukraine and Poland.

“Three more foreign companies have set sights on the Ukrainian air transportation market,” said Oleksandr Davydov, head of Ukraine’s State Aviation Administration. Following not too far behind Hungary’s Wizz Air is Germany’s Germanwings and Air Arabia of the United Arab Emirates.

Wizz Air aims to start domestic flights this summer offering one-way tickets at just over $10, followed by one-way flights to European cities between $42-$63. Officials at Wizz Air said their company is currently awaiting final approvals by Ukrainian regulators, and hopes to launch its first domestic flight on July 11, a Kyiv-Lviv flight.

Germanwings is also awaiting approvals to offer Kyiv-Berlin and Kyiv-Koln flights starting at 19 Euro ($30). The company has already filed a request with Ukrainian regulators and will launch flights as soon as permissions are granted, said Heinz Joachim Schottes, a Germanwings spokesperson.

Davydov said a meeting with Germanwings, to consider giving them approval, was first planned for June 16, but has been postponed.

Schottes said Germanwings does not, at the moment, plan to launch domestic flights in Ukraine.

“We are for now just trying to get into Ukraine,” he said, adding that his company’s low-cost offers will be very competitive compared to current prices available for airline tickets from Ukraine to Germany. Current prices offered for such flights are double, or triple, what Germanwings will offer.

Next in line is Air Arabia which plans to launch a subsidiary offering services in Ukraine. Air Arabia hopes to launch domestic flights in Ukraine this year, but will first, by autumn, offer low­cost flights between Kyiv and Sharjah, an airport 20 minutes from Dubai. The cost of a one­way ticket is expected to be $200, three times less than current offers.

“[Air Arabia] is also interested in opening an affiliate in Ukraine that will operate five Airbus 320 passenger aircraft for domestic flights,” Davydov added.

Davydov said several other foreign airlines have expressed interest in launching operations to and within Ukraine, including Poland’s Central Wings and a Singaporean company which he would not identify.

Their arrival would come at an opportune time, as passenger traffic is expected to rise by some 40 percent this year, Davydov said, adding that some 2 million passengers could use low­cost airlines flying in and out of Ukraine, by 2009.

It remains uncertain by how much leading airlines operating in Ukraine today will drop prices, if at all.

Serhiy Kutsy, a spokesperson for Aerosvit, one of the two leading airlines in Ukraine along with Ukraine International Airlines, said his company is preparing for the “inevitable” arrival of competition.

Aerosvit claims to already offer some one­way domestic fairs between $10­-$50.

Davydov said that Ukraine’s airports, badly in need of expansion and overhauls, will be able to handle increased traffic in the near­term. But “new terminals would need to be built” soon to handle increased air traffic in the country.

Source: Kyiv Post

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Saturday, June 28, 2008

Platini Issues 2012 Warning To Poland And Ukraine

VIENNA, Austria -- UEFA president Michel Platini issued his strongest warning yet to Euro 2012 co-hosts Poland and Ukraine on Saturday, saying the tournament would not be staged there if stadiums in their capital cities were not ready.

Michel Platini issues strongest warning to Poland and Ukraine.

Platini, who did not give a deadline for the stadiums, will lead a 12-man delegation to the two countries next week to examine the progress being made.

Speaking to a packed news conference in Vienna on the eve of the Euro 2008 final between Spain and Germany, Platini said: "We will do everything we can to hold it in Poland and Ukraine.

"There is no back-up plan. We have not had any second thoughts, or other thoughts and we respect our decision to go to Poland and Ukraine.

"The only thing that will make me decide not to go is if there are no stadiums in the capitals of Warsaw and Kiev. If there are no stadiums, there will be no tournament."

UEFA warned Poland and Ukraine after January's executive committee meeting in Zagreb that the months to come would be decisive in determining whether the countries were in a position to host the finals.

Platini said on Saturday that UEFA would make its final decision at its executive meeting in Bordeaux on September 25-26.

Infrastructure problems including the modernisation of airports and road and rail networks, the construction of new hotels and the stadium plans have all plagued the project.

Building work at the Olympic Stadium in Kiev, which is due to host the final in 2012, has been further complicated because of the planned demolition of a shopping centre near the stadium.

On Wednesday, Ukraine's sports minister Yuri Pavlenko said two companies were vying for the right to renovate the stadium in Kiev.

Eight venues are due to stage games, four in each country. As well as Warsaw, the Polish venues are Poznan, Wroclaw and Gdansk. Ukraine's four venues are Kiev, Donetsk, Lvov and Dnipropetrovsk.

UEFA awarded the tournament to Poland and Ukraine in April last year, ahead of rival bids from Italy and a joint bid from Croatia and Hungary.

Source: The Press Association

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Taiwan Firm To Sue Ukraine Over Euro 2012 Stadium

TAIPEI, Taiwan -- A Taiwan firm on Friday threatened to sue the Ukrainian government for breaking a contract allowing this firm to renovate a Kiev stadium for the Euro 2012 football championship.

Kiev Olympic stadium

Archasia Design Group (ADG), in a statement released to the Central News Agency, said it will take legal action to resolve the dispute regarding Ukraine's terminating the contract, but ADG will ask its subsidiary company in China to sign a new pact with Ukraine to renovate the stadium.

ADG blamed Ukraine for creating political obstacles to bar ADG from carrying out the contract, possibly due to Taiwan's lack of diplomatic ties with Kiev.

On April 16, ADG beat 18 contestants to win the bid to renovate the Olympisky Stadium in Kiev for Euro 2012, which will be co-hosted by Ukraine and Poland.

The 84,000-seat stadium, built in the 1920s, is due to host five Euro 2012 matches including the final.

The budget for the refurbishing is about 200 million euro (314 million US dollars).

ADG won the contract because it aimed to preserve the original style of the stadium.

However, on June 19, Ukraine's Ministry for Family, Youth and Sport notified ADG to provide Ukraine - before the afternoon of June 20 - legal verification of all ADG's documents related to the contract.

If the deadline was not met, Ukraine would annul the contract. ADG said the deadline was impossible to meet.

"This request is neither lawful nor reasonable because it takes many days to complete the verification due to our two countries' lack of diplomatic ties," ADG said in the statement.

ADG also blasted the Ukrainian sports ministry for creating obstacles in negotiating the contact, and condemned the Ukrainian government for refusing to provide background data and charts on the stadium.

"These are in violation of international construction norms and rules of the Union of European Football Association (UEFA)," the statement said.

Ukrainian Football Federation's vice president Boris Voskresensky said that if ADG was incapable of finishing the project on time, UEFA would revoke Ukraine's right to host Euro 2012.

Source: DPA

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Ukraine Would Send The Russian Fleet To Syria

SEVASTOPOL, Ukraine -- Konstantin Rzhepishevsky, head the Ukrainian Foreign Ministry office is Odessa Region, stated on June 26 that the Russian Black Sea Fleet may be transferred from Sevastopol to Syria after 2017, the UNIAN information service reports.

A Russian sailor in Sevastopol.

Rzhepishevsky said that the Russian side has already spoken in favor of that idea and added that the Black Sea “will soon become a good zone of peace and economic cooperation.”

Under international agreement, the Black Sea Fleet is supposed to leave Ukraine by 2017.

Official Kiev has repeatedly stated that it will not extend the agreement on the Russian division’s location in Sevastopol.

Russian politicians have also repeatedly said that the fleet will stay in Ukraine forever.

The Russian Foreign Ministry declines to discuss the issue, saying that it is “not timely.”

The Ukrainian Foreign Ministry, commenting recently on a rent increase for the fleet at Sevastopol (it currently pays about $98 million per year), said that the withdrawal of the fleet in 2017 is non-negotiable.

Chief of the Russian Navy Vladimir Vysotsky stated recently that, after 2017, the fleet may be transferred to the Mediterranean Sea area.

Leonid Ivashov, president of the Academy of Geopolitical Problems, was quoted by RBC Daily as saying that the port of Tartus in Syria may be the new home for the fleet.

There is a Russian naval logistics facility in Tartus now.

Source: Kommersant

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Friday, June 27, 2008

Russian Hackers Planning Attacks Against Baltic Countries And Ukraine

CHICAGO, USA -- Recent Tweets on Twitter are pointing to grumblings in the blogosphere around suspicion of a planned attack against Baltic countries and the Ukraine.

Russian hackers plan to replace the original content of the websites that they hack into with huge red stars and photographs of Soviet soldiers.

An article posted at The Baltic Course describes the planned attacks, as originally reported by Estonian television channel ETV24.

Recently, there have been multiple appeals in Russian Internet forums, calling for Russian hackers to unite and launch a large-scale attack on Internet websites of Latvian, Lithuanian and Estonian government institutions.

Russian hackers are dissatisfied with “the way Russian-speakers are treated in the Baltic countries”, and the ban on use of Soviet and Communist symbols.

Ukraine, on the other hand, has caused Russian hackers’ disapproval with its NATO aspirations.

“All the hackers of the country have decided to unite, to counter the impudent actions of Western superpowers. We are fed up with NATO’s encroachment on our motherland, we have had enough of Ukrainian politicians who have forgotten their nation and only think about their own interests. And we are fed up with Estonian government institutions that blatantly re-write history and support fascism,” says the appeal that is being circulated on Russian Internet forums.

Russian hackers plan to replace the original content of the websites that they hack into with huge red stars and photographs of Soviet soldiers.

This would not be the first politically motivated attack by Russian hackers against another country. Hopefully the advanced notice will help these governments prepare some.

Source: ZDNet

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When Bribes Are Fees

KIEV, Ukraine -- As articles in this week’s Kyiv Post point out, the practice of paying bribes is still common for many citizens, particularly when interacting with teachers, doctors and, ironically, law enforcement.


It is no secret that Ukraine’s education, medical and law enforcement systems are in shambles.

Simply put, the root of the problem is that teachers, doctors, judges, cops and other civil servants are grossly underpaid.

And so to fill the void of an ineffective government, a shadow market has blossomed.

To ensure that a student gains admission to the right institute, or that a doctor cures a sick patient, or to get out of a traffic violation, cash is paid.

The system is institutionalized and has become such a fixed custom that, for most citizens, it would be hard to imagine another way of getting things done.

And while these off-the-book payments are detrimental to any nation’s culture, a solution isn’t far away.

Many of these transactions could be eliminated if the bribes were simply brought out of the shadows and legalized as fees.

In medicine, a long-term solution is to privatize much of the health care system.

In education, private schools should be encouraged. They’d be more expensive, but also more transparent.

Boosting official salaries for all state-funded employees to realistic levels is also essential.

So why not legalize many of these shadow payments by introducing official payments for entrance exams, medical services and traffic violations?

Such legal payments have helped clean up the process of gaining approvals provided by various agencies that inspect such places as construction sites and restaurants.

It is time to expand these payments to other areas, as a way to more clearly distinguish an illicit bribe from a legitimate fee.

Source: Kyiv Post

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One Shot And Out

KIEV, Ukraine -- With a population of 46 million, Ukraine has enough talented politicians with national interests at heart to make a two-term presidency unjustified.

Leonid Kuchma

Moreover, looking back at the history of Ukraine’s paralyzing politics, it becomes clear that the nation’s presidents, even those that showed glimmers of acting in the national interest, fell victim to paranoia and destructive rivalries with up-and-coming prime ministers plotting to take their spots.

First there was the standoff between Ukraine’s first president, Leonid Kravchuk, and his prime minister, Leonid Kuchma.

Then, after Kuchma grabbed the presidency from Kravchuk in the 1994 election, he spent much of his time containing rivals, rather than developing the nation.

Kuchma clashed with his prime ministers, including Pavlo Lazarenko and Viktor Yushchenko.

And after the Orange Revolution finally rid Ukraine of Kuchma and his cronies, the new team succumbed to the same president-premier spats as their predecessors.

Rather than capitalizing on massive post-revolution support to push through much-needed changes, Yushchenko seems far too concerned with getting re-elected as president than getting something done.

His presidency descended into a series of standoffs with premiers viewed as challengers -- first Yulia Tymoshenko, then Viktor Yanukovych and now Tymoshenko again.

As a Kyiv Post article this week points out, Yushchenko’s chief of staff, Viktor Baloha, is blamed for fueling the rivalries to stage his own power grab.

True or not, the Baloha case is one more example of how personal ambitions trump national interests.

A cultural transformation may be needed to give birth to a new, more responsible Ukrainian elite.

But in the short term, there is a viable solution to removing much longstanding friction between presidents and prime ministers.

Ironically, the idea of limiting Ukraine’s presidency to a single term was recently floated by Viktor Pinchuk, made a billionaire during the cronyism presidency of father-in-law Kuchma.

Nevertheless, Pinchuk’s idea is a good one.

Had any of Ukraine’s three presidents known they were only in for one term, they would hopefully have focused attention on improving this nation’s prosperity and democracy, rather than elections and eliminating rivals.

Ukraine’s influential businessmen have exploited these rivalries for their own selfish ends.

One way to end this vicious cycle may be to constitutionally limit a presidency to a single term of no more than six years.

Maybe then the next president will be less fixated on destructive rivalries and more on helping this nation reach its potential.

Source: Kyiv Post

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Thursday, June 26, 2008

Rampant Inflation Haunts Ukraine

LONDON, UK -- Europe continues to suffer from increased inflation, but Ukraine is a story all its own as it gets strangled by record price increases. Ukrainian presidential aide Oleksandr Shlapak said inflation in the country would hit 20.0% in 2008, according to TradeTheNews.

Ukrainian presidential aide Oleksandr Shlapak.

This would normally be very alarming news for countries like Austria and Britain, that enjoy some of the lowest inflation levels (3.2% and 2.9%), but not for Ukraine; in May alone it reported inflation levels of 30.0%.

Indeed, Shlapak's statement is actually good news Ralf Wiegert, senior economist at Global Insight in Frankfurt, told Forbes.com.

"Sky-rocketing food prices last year contributed to levels of inflation that have reached nearly 33.0% in Ukraine," Wiegert said.

Inflation in Ukraine went from 11.0% in May last year to 31.0% in May in 2008, according to the state statistics office. Now inflation is expected to go back to 22.0% before hitting a low of 10.0% by the end of next year, according to economic estimates.

Wiegert says officials generally attribute the inflation problems to the global food crisis, but the Ukraine itself is also to blame.

"The government is ruled by members of the former Soviet era. They offer very little incentive to producers in a highly regulated market, creating an environment with high demand and very little supply," Wiegert added.

Food and beverage prices rose by 40.7% year on year in March, health and education costs each grew by more than 17% and restaurant and hotel charges increased by 25.2%, official figures show.

Although inflation is a problem worldwide, with Europe expecting inflation levels above 4.0%, Ukraine's problem is exacerbated by a particularly poor harvest last year.

The good news, Wiegert said, is that an expected good summer harvest in 2008, will help to the decline of food prices and the country will have some breathing space again. At least, that is, until the next inflation hike.

Source: Forbes

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Another Summer Of Discontent In Ukrainian Politics

KIEV, Ukraine -- Ever since Ukraine’s Orange Revolution swept pro-Western President Viktor Yushchenko into power, summer has been a time of particular discontent in the country’s political life.

President Viktor Yushchenko

The summer of 2005 saw infighting in the Orange camp escalate into Yushchenko’s firing of co-revolutionary Prime Minister Yulia Tymoshenko.

In 2006, the president alienated another Orange ally, Socialist leader Oleksandr Moroz, who defected to join a coalition with Orange enemy Viktor Yanukovych.

By the summer of 2007, Yushchenko was forced to call early parliamentary elections to keep Yanukovych from muscling away his executive power.

Now, in 2008, the president is again faced with the prospect of dismissing the parliament, but this time to restrain the presidential ambitions of the resurgent second-time Prime Minister Tymoshenko.

Each of the last four political crises that hit Ukraine as the weather got warmer ended up being resolved, at least temporarily, by the following autumn.

Yushchenko ruled supreme by the end of 2005. The next year, Yanukovych exacted revenge for his humiliating defeat during the Orange Revolution by returning as premier at the close of summer. Tymoshenko's year was 2007, when she retook the government following the snap election held in September.

This year, analysts are also predicting a fall resolution, but it's still not clear which of Ukraine's three political heavyweights will come out on top and take the lead in advance of next year's presidential race.

The spark that set off this summer's political crisis was an announcement made this month by two lawmakers of their departure from the paper-thin Orange majority in parliament.

The coalition between the Bloc of Yulia Tymoshenko (BYuT) and the faction that was endorsed during the last parliamentary elections by President Yushchenko (Our Ukraine-People's Self Defense: OU-PSD) has shown cracks ever since it was formed.

Earlier this year, a handful of deputies from OU-PSD announced that they were forming their own party, United Center, but stopped short of leaving the coalition.

Responsibility for both of these political tactics, aimed at undermining the workability and credibility of the Orange coalition, has been placed squarely on the shoulders of the president's Secretariat.

Besides blaming Tymoshenko for the country's double -digit inflation, the president has already done everything in his power to sabotage her privatization plan, thus preventing the government from financing any populist programs that would increase the premier's voter support.

Mr. Yushchenko, it is said, not only wants to paralyze the Tymoshenko government's operability in the legislature but to replace the Orange coalition with a grand coalition in partnership with Yanukovych's opposition Regions party.

According to this theory, United Center is supposed to recruit enough lawmakers from the Orange coalition to compose a majority with Regions and the tiny Bloc of Volodymyr Lytvyn. BYuT and the parliament's fifth faction, the Communists, would effectively be sidelined on opposite ends of the playing field.

However, there are several complications with this scheme, most of which don't bode well for its supposed architect: President Yushchenko.

First, even if Yushchenko were able to form a grand coalition with the man he accused of trying to steal the presidency during the 2004 elections (Yanukovych), the president would only alienate the few Orange voters who still support him and thus be assured of not being re-elected next year.

Second, by all accounts, neither Yanukovych nor Lytvyn is interested in such a deal. Yanukovych would surely again demand the prime minister's seat, from which he would be just as much of a threat to Yushchenko as he was the last time. As for Lytvyn, whose faction barely made it over the hurdle during the last elections, his only chance for political survival is to present Ukrainian voters with an alternative to his incessantly quarreling colleagues.

Thirdly, Tymoshenko would feel quite comfortable back in opposition, where she couldn't be blamed for continuing inflation, especially after the Russians again raise the price of the gas they export to Ukraine, as is expected later this year.

On the other hand, the president could be toying with his former Orange ally, slowly building up the pressure on her while winning time to garner greater support among Orange lawmakers, the public and the international community.

If that is the case, Tymoshenko isn't sitting on her hands. Although no where near the extent of the president's, Tymoshenko's ratings have also dropped, as voters tire of the seemingly never-ending Orange infighting.

However, the fiery female politician has a knack for populist gestures, with or without adequate funding. Coming into next year's presidential campaign, she can still take credit for compensating Ukrainians for their Soviet savings lost to runaway inflation.

More recently, the premier visited Western Ukraine, which is still recovering from a particularly violent storm. In Lviv, Tymoshenko promised Hr 25 million in government aid.

On the international front, Tymoshenko has also been busy. Last week, she dropped in to Brussels for the quarterly meeting of the European People's Party, which is attended by Western heavyweights such as Javier Solana, Silvio Berlusconi and Angela Merkel.

Solana personally praised the Ukrainian government's economic performance, including its fight to control inflation. Guided by her foreign policy supremo Hryhory Nemiriya, Tymoshenko was photographed with all the right people.

The Brussels trip was particularly successful in light of Yushchenko's falling out there. Last week, the Ukrainian president made things worse by snubbing a delegation from the European People's Party during their visit to Kyiv.

Nevertheless, in parliament, the president may still have a few cards up his sleeve. The lawmakers in Tymoshenko's faction are loyal to their own interests, which depend on BYuT's success in elections.

During the recent Kyiv mayoral elections, Tymoshenko's candidate was beaten by the president's choice, damaging her image as an undefeatable political force.

In addition, Tymoshenko's former political benefactor, one-time Prime Minister Pavel Lazarenko, who was jailed in the US on money laundering charges, is rumored to be getting out soon.

If he should return to Ukraine and start making accusations against Ms. Tymoshenko, her fellow faction members might bolt.

However, Yushchenko no longer has the "saintly" status he enjoyed immediately after the Orange Revolution. The Our Ukraine party, which Yushchenko led right up to becoming president in 2005, can now hardly be called his, especially after the president supported a rival in the Kyiv mayoral elections.

And despite claims by his Secretariat to the contrary, the president can hardly pretend before voters to be uninvolved in the chaos that is the current Orange coalition, that is the Ukraine's perennial summer of discontent.

Source: Eurasian Home

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Wednesday, June 25, 2008

Will Parliamentary Crisis Lead To Tymoshenko's Dismissal?

WASHINGTON, DC -- The coalition of Prime Minister Yulia Tymoshenko Bloc (BYT) and President Viktor Yushchenko’s Our Ukraine--People’s Self-Defense (NUNS) no longer has a majority in the Ukrainian parliament.

Prime Minister Yulia Tymoshenko

Two deputies quit the coalition, so it controls 225 seats in the 450-seat chamber, one seat short of a majority.

As a result, parliament has been paralyzed, and the fate of the Tymoshenko government is in the hands of Yushchenko and his team in parliament.

Should even a small group from NUNS back a no-confidence motion against Tymoshenko, her government will be doomed.

Two factors have led to this situation.

First is the confrontation between the Tymoshenko and Yushchenko teams, which view each other as rivals in the presidential election campaign, which will start next year.

Second is an imperfect constitutional reform of 2004-2006, which institutionally weakened the president but stopped short of transforming Ukraine into a parliamentary republic, thus making incessant conflicts between the president and the prime minister, who is elected by parliament, almost inevitable.

On June 6 Ihor Rybakov from the BYT and Yury But from NUNS declared that they were quitting the ruling coalition, although they stayed in their parties.

They explained their decision by saying that the Tymoshenko government was not doing enough to fight corruption and blamed her for the confrontations with Yushchenko.

The opposition expected parliament speaker Arseny Yatsenyuk, who belongs to NUNS, to announce that the coalition no longer existed, as it no longer controlled the majority.

Such an announcement would have given formal grounds to start talks on the formation of a new coalition, with or without the BYT. In the latter case, Tymoshenko would lose the post of prime minister.

Viktor Yanukovych, a former prime minister and the leader of the Party of Regions (PRU), the major opposition party, declared on the same day that the creation of a new coalition would be a better option than an early parliamentary election; and he signaled his readiness to return to the prime minister’s chair.

Yatsenyuk, however, refused to pronounce the coalition dead.

This is because BYT and NUNS insisted that the coalition still existed de jure. They pointed to a constitutional provision saying that the parliamentary coalition consisted of party caucuses rather than individual deputies.

Rybakov and But did not leave the respective caucuses of the BYT and NUNS de jure, so their de facto quitting the coalition had no legal consequences, according to BYT and NUNS representatives.

When the PRU officially demanded that Yatsenyuk clearly state whether the coalition still existed, he declared that it did exist since neither of the two constituent caucuses had left the coalition.

The PRU then requested the Constitutional Court (CC) to rule on the legitimacy of a ruling coalition that did not control a majority in parliament.

Now that the question is with the CC, much depends on Yushchenko, as it is widely believed that the court is loyal to him after he expelled several rebel judges from the CC in 2007.

Yushchenko is hesitating. If the existing coalition falls apart, a new one would be formed either by NUNS and the PRU or by the BYT and the PRU.

In the case of a BYT-PRU coalition, Yushchenko would lose all levers of influence on the government.

According to the well-informed weekly Zerkalo Nedeli, the PRU would be prepared to form a coalition with Yushchenko’s NUNS only if Yanukovych returns to the post of prime minister.

Prime Minister Yanukovych might be worse for Yushchenko than Prime Minister Tymoshenko.

First, Yanukovych, like Tymoshenko, is a potentially strong presidential candidate, and his return to the post of prime minister would only strengthen his chances for victory in the upcoming race.

Second, institutional rivalry between Yanukovych and Yushchenko was as bitter in 2006 and 2007, when Yanukovych was prime minister, as it is now between Tymoshenko and Yushchenko.

Third, Yushchenko’s electorate would not understand a union with Yanukovych, who was Yushchenko’s main rival in the 2004 presidential election.

While the CC and Yushchenko deliberate, the PRU acts. On June 20 it came up with a motion requesting Tymoshenko to report on her government’s performance to parliament.

The PRU expects her to report in mid-July. Serhy Lyovochkin, one of the PRU leaders, told Segodnya, a newspaper close to the PRU, that the report should be followed by a no-confidence motion against Tymoshenko “for incompetent and unprofessional actions leading to a destruction of the Ukrainian economy.”

The PRU hopes that the no-confidence motion would be supported by the two smaller of parliament’s five caucuses--the Lytvyn Bloc and the Communists--and people from the BYT and NUNS like But and Rybakov.

This should be enough to collect the 226 votes needed to oust Tymoshenko.

Source: Eurasia Daily Monitor

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Baloha Blamed For Brouhaha

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko himself signaled that Viktor Baloha is no ordinary chief of staff when he once scolded supporters: “You should listen to what Viktor Baloha says. Baloha is me.”

Viktor Baloha

If that is true, then understanding Baloha is an essential part of understanding the paralysis, infighting and rivalries among Ukraine’s political elite.

Who is Balîha, and what is his end game? Destroying Prime Minister Yulia Tymoshenko politically? Ensuring his boss’ re­election in 2010? Bringing peace to all warring factions? Or simply mucking everything up in a selfish power grab?

Baloha, a long­time bureaucrat and former governor of Zakarpattya Oblast, wouldn’t talk to the Kyiv Post for this story. But allies of Prime Minister Yulia Tymoshenko and parties splintering away from the Yushchenko camp are not as reticent.

To many of them, Baloha is a demon.

They accuse the erstwhile ally of businessman Viktor Medvedchuk, the onetime chief of staff for former President Leonid Kuchma, of sabotaging Yushchenko’s chances for re-­election. They accuse him of plotting an alliance with Viktor Yanukovych, the Orange Revolution villain from Donetsk and former prime minister.

“Today there is a struggle for power that's key to deciding who Ukraine’s next president will be: Tymoshenko or Yushchenko. Baloha is right in the middle of this conflict, masterminding a scenario for a Yushchenko victory in the next presidential elections,” said Oles Doniy, a lawmaker from the People's Self ­Defense Party that has in recent months turned against the president, but formally remains within Yushchenko’s Our Ukraine political bloc.

Eager to establish a new base of support for Yushchenko, whose approval rating has sunk below 10 percent, Baloha has spear headed the formation of a new political party, Yedyny Tsentr, or United Center Party. Political pundits believe the goal of the party, which now claims allegiance from a half­ dozen lawmakers, is to unite politically disparate voters from the east and west in backing Yushchenko’s re-­election bid.

According to Doniy, the most likely scenario in this strategy would be for Yushchenko to team up with his Orange Revolution foe, the Moscow­ friendly Yanukovych, or at least gain the backing of the business elite from eastern Ukraine that supports Yanukovych’s Party of Regions.

“This is an administrative ­oligarchial grouping that doesn’t have any program, any strategic plan except the desire to stay in power,” said Andriy Pavlovskiy, a lawmaker from the Tymoshenko bloc.

What Baloha’s critics and supporters agree on is his ability to successfully manage in times of crisis, sometimes using cut throat methods. Yushchenko’s resolve last year in pushing ahead with snap parliamentary elections and overcoming boycott threats by Yanukovych’s Regions Party has largely been attributed to Baloha’s Machiavellian maneuvering.

“He is a very responsible and high ­skilled manager,” said Vadym Karasyov, a political analyst who advises Baloha. Karasyov refuted claims that Baloha was plotting a coalition composed of Yushchenko and Yanukovych supporters. Instead, he, like Baloha, pointed the blame for the shaky status of the current coalition on Tymoshenko, accusing her of trying to monopolize power within the coalition rather than working in constructive tandem with the president.

According to Yushchenko, Baloha, as head of the Presidential Secretariat, is the main planner and manager of the president’s staff and support team. Yet most political insiders give this ex­emergency minister a much bigger role, suggesting he is the country’s shadow leader, pulling much of the presidential strings against political opponents. Yushchenko suggested as much on March 20 in response to calls from supporters for Baloha’s ouster, when he made his “Baloha is me” comment. Members of the increasingly anti ­Yushchenko People's Self ­Defense Party accuse Baloha of initiating, with a conspiring General Prosecutor official, criminal cases against two party leaders, Interior Minister Yuriy Lutsenko and businessman David Zhvania.

Serhiy Taran, director of Kyiv’s Sotsiovymir Center for Sociology and Political Research, said Baloha’s demonized reputation is largely deserved, adding that he is, indeed, a “grey cardinal” at the top. Baloha’s supporters say the only goal of the chief of staff is to defend Yushchenko’s interests.

But sometimes it is difficult to know whether Baloha’s chessboard political moves benefit the president, or Baloha’s own political career, said Kost Bondarenko, a political analyst. The newly formed United Center Party, formally led by Baloha’s close associates, Ihor Kril and Vasyl Petyovka, is still mostly unknown by the Ukrainian public. Yet if leading businessmen such as billionaire Rinat Akhmetov join its ranks, as some suspect Baloha wants, the party could establish itself as a united front against a popular Tymoshenko.

Whether such an alliance can muster enough popular support to re­elect Yushchenko is unclear, Bondarenko said, adding that the party’s success will depend on whether they will be able to find a bright party leader. Today the United Center Party is slowly, but gradually growing, and simultaneously eating away at the Our Ukraine bloc. It also set up party branch offices in 16 regions of the country and plans to establish offices country-wide by the end of June.

United Center’s aim is to get Yushchenko re-­elected and possibly to have early parliamentary elections, said Viktor Chumak, the political analyst at International Centre for Policy Studies.

Yet Yushchenko’s second presidential term isn’t the only goal of Baloha, some former colleagues say. They say he thinks mainly about advancing his personal interests. When Baloha needed a political force to support his business in Zakarpattya, he used the Social Democratic Party United (SDPU), Medvedchuk’s former party of power, to advance his interests.

Then he left the party when he understood that he couldn’t gain anything more from the alliance, said Ihor Shurma, a former Baloha ally. Yushchenko is indifferent to Baloha, Shurma said, adding that Baloha will betray the president as he betrayed the Social Democratic Party United and continue to build his own career.

“If you take into consideration Baloha’s conflict with Tymoshenko, he doesn’t care about Yushchenko, he stakes everything to fight the prime minister,” Shurma said. “He will struggle for the premier’s post.”

Baloha has purely selfish aims, said Oleh Podebriy, the press secretary of Serhiy Ratushnyak, Uzhgorod mayor and Baloha’s former ally. And with or without Yushchenko in power, Taran said the United Center Party could become the main platform for Baloha’s personal political interests.

If Yushchenko doesn’t win the next presidential elections, Baloha will become the United Center leader and will have “a small, but proud” faction, which could, at times, play the role as king-maker in a divided parliament, Taran added.

Source: Kyiv Post

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Ukraine In Euro 2012 Stadium Blow

KIEV, Ukraine -- Ukraine is searching for a new firm to renovate the Euro 2012 final stadium in Kiev amid a row with the original bid winner.

UEFA president Michel Platini expressed concerns.

The country's deputy sports minister Rostyslav Karandeyev said negotiations had ended with the Taiwanese firm Archasia Design Group because of difficulties about the company's legal status in Ukraine.

But Archasia President Eric Hsu hit back, saying in an e-mailed response that "the decision it (the ministry) made is groundless" and that documents about the company's status had not been requested in April, when the company won the tender, nor in May.

He added that UEFA had asked the Government to provide a project outline and site survey of the stadium but that neither had been produced, delaying further work.

Dispute

The dispute comes just days before a visit by UEFA president Michel Platini, who complained in January that preparations have been too slow, so fuelling rumours that Ukraine and joint hosts Poland could lose the right to stage the competition, which the European Governing Body has denied.

Built in the 1920s, Kiev's 84,000-capacity Olympic Stadium is one of four stadiums in Ukraine to be used for the tournament

Deputy sports minister Karandeyev says a jury assessing competing projects would meet this week to find a replacement firm and present the new proposal to a UEFA executive board meeting in Vienna.

All 15 companies which took part in the original competition in April would be allowed to resubmit bids, except Archasia.

Source: Sky News

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Tuesday, June 24, 2008

Portugal Supports Ukraine's Accession Bid To NATO, EU

LISBON, Portugal -- Portuguese President Anibal Cavaco Silva said Monday that he supports Ukraine's accession bid to the European Union (EU) and the North Atlantic Treaty Organization (NATO).

Ukraine's President Viktor Yushchenko (R) walks past the honour guard with his Portuguese counterpart Anibal Cavaco Silva at Belem Palace in Lisbon June 23, 2008.

After meeting with Ukrainian President Victor Yushchenko in the Belen Palace, Cavaco Silva told the press that Ukraine has played an active role in maintaining peace and stability in Europe.

"President Victor Yushchenko is an example for all those who love liberty, democracy and law," Cavaco Silva said, adding that Portugal is a friend of Ukraine.

Cavaco Silva did not mention when the negotiations for Ukraine's accession to NATO would be concluded though Yushchenko said he was optimistic that the talks could be finished by the end of this year.

Yushchenko said Kiev always felt the support of Lisbon for Ukraine's future accession to NATO and the EU.

Ukraine became the 152nd country to join the World Trade Organization (WTO) in May after a 14-year marathon negotiation.

Source: Xinhua

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Monday, June 23, 2008

Restaurant Built Inside Coffin Opens In Ukraine

TRUSKAVETS, Ukraine -- Undertakers in Ukraine have built the world's first coffin restaurant, serving a range of death-related dinners.


This huge casket, which is 20 metres (66 feet) long, six metres (20 feet) wide and six metres (20 feet) high, is decorated with wreaths and dozens of normal-sized coffins.

Morbid diners can browse the funeral paraphernalia before ordering from a menu that includes "Nine Day" and "Forty Day" salads - named after local mourning rituals - and an ominous-sounding dish called "Let's meet in paradise".

Single candles on the tables contribute to the funereal mood.

Pictures of the bizarre eaterie have been posted on www.kava.lviv.ua, a local Ukrainian website.

The coffin restaurant, called Eternity, is the work of a funeral parlour in the town of Truskavets, in the west of the country near the Polish border.

The undertakers hope that their restaurant will be confirmed as the world’s biggest coffin, attracting tourists to a region best known for its mineral-rich bathing waters.

"Thirty cubic metres (1,060 cubic feet) of pine have been used for the construction,'' said Andri, one of those behind the new enterprise, ahead of its recent opening.

"It's our director Stepan Pyrianyk who had the idea. He loves his work and reckons the project will bring tourists to Truskavets.''

A spokeswoman for Guinness World Records said that the biggest coffin title was currently unclaimed, and that they had yet to receive an application from Ukraine.

Source: Telegraph UK

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The Ukrainian 'Genocide By Starvation'

KIEV, Ukraine -- Grigori Garaschenko remembers seeing his classmates starve slowly to death in a famine that killed millions of people in Ukraine.

An orphan in Kiev in 1934. Her parents had died of starvation and she survived on charity from a neighbour.

A neighbour driven mad by hunger killed her six-year-old daughter and began to eat her, he said, after Soviet soldiers confiscated all the food in their village during house-to-house searches.

Mr Garaschenko, 89, is one of the few remaining survivors of the famine of 1932-33. Now, 75 years on, Ukraine wants the world to recognise that what it calls the Holodomor was a deliberate act of genocide by Stalin's Soviet Union.

It is a campaign that infuriates modern Russia. Moscow argues that there was no such crime because Russians and other nationalities also starved under Stalin's policy of turning peasant farms into large state-run collectives.

The Institute of National Memory, the Ukrainian body responsible for researching the Holodomor, calculates that three million people died in the months after Stalin punished the collective farms for failing to meet grain production targets in 1932. Soviet troops confiscated the harvest and all the food in villagers' homes.

Igor Yukhnovsky, the director of the institute, told The Times that as many as nine million may have died as a result of the famine and its aftermath. Stalin's intention, he said, was to break Ukraine's national identity.

“The land gives birth to the nation. During the Holodomor, the nation was destroyed, and this was the basic purpose,” Mr Yukhnovsky, 82, said. “Now that Ukraine has restored its statehood, the first thing we must do is restore our history.”

He said that preparations would begin next week for a judicial inquiry to establish who was guilty of implementing the Holodomor. He said the institute had received government approval to conduct the investigation, based in part on Soviet-era archives.

“We must know the names of the people in authority who were in charge of this criminal enterprise. They must be convicted. Of course, a lot of these people are already dead or too old, but they must have sentence passed so that their descendants can be freed from guilt,” Mr Yukhnovsky said.

The institute is also overseeing the construction of a memorial complex in Kiev as part of commemorations to mark the 75th anniversary of the Holodomor in November.

Its campaign to name the guilty men is likely to exacerbate tensions with Russia, which does not deny that millions died, but insists that the famine was not a weapon aimed only at Ukrainians.

The Russian parliament, the Duma, passed a resolution in April rejecting claims that the famine “was organised along ethnic lines”, and warning Ukraine against using the tragedy as “a tool for modern political speculation”. Alexander Solzhenitsyn was equally vociferous, condemning the “provocateur's cry of ‘genocide'” in a newspaper article.

Discussion of the Holodomor was taboo in Soviet times. But the Ukrainian parliament backed a declaration put forward by President Yushchenko in 2006 that the famine was genocide, rejecting an attempt by pro-Russian deputies to characterise it simply as a “tragedy”.

Mr Garaschenko remembers helping to bury the dead and says that he survived only because a teacher managed to obtain tiny rations of bread for children who attended school. The teacher was later shot as an “enemy of the people”.

He adds that people over the border in Belarus, close to his village, did not starve. Mr Garaschenko said: “There were only Ukrainians in the villages. When they tell you it wasn't a genocide against the Ukrainian people, it's all lies. The Soviet soldiers went house to house taking away all our food. They left the people nothing to eat and left them to die.”

Katerina Kholivach, 80, another survivor, was only 4 when her family left her in an orphanage because she was too weak to travel as they fled the famine. When her mother returned to collect her later, Soviet officials told her that Katerina had died. Mrs Kholivach discovered that her brother and sister were alive only in 2002. She said: “The Holodomor was a huge crime and I was a victim of it. I have suffered the consequences all my life.”

The great hunger

At the height of the Ukrainian famine in 1933, an estimated 25,000 people died each day

By the end of 1933, almost 25 per cent of the Ukrainian population is thought to have perished

An estimated 80 per cent of Ukraine's population were small-scale farmers

By mid-1932 almost 75 per cent of farms had been seized by the state to force Ukrainian peasants into the Soviet system of land management

Grain exports were raised dramatically and agents were sent to villages to confiscate grain, bread and any other food they could find

The Soviet Union exported 1.7million tonnes of grain to the West during the famine. Nearly a fifth of a tonne of grain was exported for each person who died of starvation

Holodomor, the Ukrainian name for the famine, means murder by hunger

Source: Times On Line

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Sunday, June 22, 2008

European Bison To Inhabit In Ukraine's Nuke Disaster-Hit Chernobyl Area

KIEV, Ukraine -- Ukraine will introduce European bison to the Chernobyl area affected by a nuclear power disaster to establish a nature reserve, the country's Emergency Situations Minister Volodymyr Shandra announced Friday.

The European bison

"I think we will bring up to ten bison to the zone to raise the biological diversity of the territory," Shandra said at a press conference.

He also urged that tourists be encouraged to visit the Chernobyl area so that people can observe the "price of human error."

On April 26, 1986, the world's worst nuclear accident occurred at the Chernobyl nuclear power plant in Ukraine, causing widespread environmental pollution.

In recent years, the Chernobyl exclusion zone has become a haven for wildlife with lynx, eagles, and even bears that had disappeared from the area, reappearing.

In addition populations of badgers, deer, elk, otters, wolves, beavers and boars have thrived without human interference.

Source: Xinhua

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Saturday, June 21, 2008

No Shortage Of Problems For World’s Tallest Man

KIEV, Ukraine -- Being the World's Tallest Man isn't all it's cracked up to be. Despite worldwide fame, Ukrainian Leonid Stadnik also has to cope with the problems his lofty height can bring.

Gentle giant Leonid Stadnik with Ukraine’s President Viktor Yushchenko.

And he has been speaking to the media about the daily grind of being 2.57 metres (8.43 feet).

His biggest growth spurt happened when he was fourteen after a brain operation caused the overproduction of a natural growth hormone.

And Leonid just keeps growing, beating a Chinese man to the record of the world's tallest man last year.

Now, he has to work hard to keep his height and weight in check. It's been made possible by a Russian engineer, who created an exercise machine specially geared for tall people.

It's important because Leonid's 200 kilo (442 lbs) weight puts an enormous strain on his joints, sometimes making it hard for him to get around.

But in spite of his troubles, he's made many friends all over the world and learned to look on the bright side.

Ukraine's President Viktor Yushchenko sent him two tracksuits and has even given him a specially adapted car.

And his friends have sent him many gifts, including the latest addition - an oversized bicycle.

Although he gave up working as a vet, he now keeps busy in his family's garden and looks after the animals with his mother and sister.

But the gentle giant still has dreams - he wants to find his soulmate, just like China's tallest man who got married last year.

Source: Russia Today

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Friday, June 20, 2008

Moscow Ready For Major Confrontations With Pro-Western Georgia And Ukraine

WASHINGTON, DC -- In the past Russia strongly protested the expansion of NATO to include Central European states that were Soviet clients and former Warsaw Pact members during the Cold War, as well as the Baltic republics that were part of the Soviet Union.

Russian President Dmitry Medvedev (R), and Georgian President Mikhail Saakashvili smile and shake hands during the informal Commonwealth of Independent States ( CIS) summit in Strelna, outside St. Petersburg, Russia.

In the end, however, Russia backed down and accepted the inevitable shrinking of its effective sphere of influence.

Now the rulers in Moscow seem to be ready for a major confrontation that includes the threat of military force against the pro-Western governments in Georgia and Ukraine, which aspire to join the alliance.

After a recent meeting between Russian and Georgian Presidents Dmitry Medvedev and Mikhail Saakashvili in St. Petersburg, Foreign Minister Sergei Lavrov told journalists, "We told the Georgians that their desire to join NATO will not help solve the problems of Abkhazia and South Ossetia; it will lead to renewed bloodshed".

Later Lavrov added in a radio interview, "We will do anything not to allow Georgia and Ukraine to join NATO".

Speaking last week in Sevastopol in Crimea, the main base of Russia's Black Sea Fleet, Russian Deputy Prime Minister Sergei Ivanov warned Ukraine that joining NATO would have serious consequences: "A complete disruption of military-industrial ties between Russia and Ukraine is inevitable, as well as the reduction of other trade and economic ties and an introduction of a visa regime."

Ivanov implied that NATO would "force Ukraine to introduce a visa regime." Ivanov added, "More than 30 million Russians live outside Russia, and we are morally responsible for them".

Russian officials connect the possible future Ukrainian NATO membership with the fate of the Black Sea Fleet.

Ivanov announced, "It is hard to imagine the Russian Black Sea Fleet without its main base; the fate of Sevastopol matters for all those who lived in the Soviet Union, it is our city."

Ukraine's call for the withdrawal of the fleet from Crimea was perilous, because "it is dangerous to play not only with fire but also with history".

Ivanov's rhetoric matches other recent official statements. Russia's permanent representative to NATO, Dmitry Rogozin, said in a TV interview: "The Black Sea Fleet simply does not have any other home; no Russian politician will agree for the fleet to leave Sevastopol, and this will not happen".

A rejection of Ukraine's NATO accession or the possible future withdrawal of the Russian fleet from Crimea after 2017, when the present lease of the Sevastopol base expires, are today part of Russia’s official foreign policy.

Western assurances that Sevastopol will not be used as a NATO naval base after the Russians withdraw are not taken seriously.

But there is a lot of time till 2017 and the Ukrainian NATO accession may not be swift, since today the majority of Ukrainians are against NATO membership and the government in Kyiv has promised a national referendum to decide on membership.

Russia does not at present have the infrastructure on its own Black Sea coast to house the Black Sea Fleet, and building the needed facilities will require lots of time and money.

What is worse, Russia does not have adequate military shipbuilding or ship-maintenance facilities on the Black Sea to keep a large fleet.

The flagship of the Black Sea Fleet, the cruiser Moskva, has been repaired and modernized in Mykolaiv in Ukraine at a naval shipyard where in Soviet times all the aircraft carriers were built.

Russia has managed to build several relatively small naval ships since 1991 (frigates and coastal patrol boats) in St. Petersburg and Kaliningrad, but not enough to replace its rapidly aging navy.

Without access to the Mykolaiv yard, there may not be much fleet left to withdraw from Sevastopol.

At present Moscow is using threats that Ukrainians will suffer if their nation joins NATO or if the Russian fleet is ousted from Sevastopol.

At the same time, Russia has been supporting pro-Russian separatist feelings in Crimea and making territorial claims on Sevastopol.

Moscow needs a pro-Moscow allied government in Kyiv or, if that is impossible, a separation of Crimea and Eastern and Southern Ukraine (with Mykolaiv), where millions of Russian speakers may either want to join Russia or form an allied protectorate.

The situation is different in Georgia, where a vast majority voted to join NATO in a referendum on January 5.

There is no hope in Moscow that any anti-NATO pro-Russian forces may come to power in Tbilisi, and military action in support of separatists in Abkhazia and South Ossetia is being seriously contemplated.

The Russian Foreign Ministry has officially announced that Moscow refuses to discuss with Tbilisi the legality of the deployment of additional troops and armaments in Abkhazia, because the troops "prevented a Georgian blitzkrieg".

When substantial talks are essentially stopped while additional troops are deployed, it’s more than just a threat of the use of force.

Source: Eurasia Daily Monitor

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Thursday, June 19, 2008

EU Presses Ukraine PM To Heal Rift With President

BRUSSELS, Belgium -- EU officials on Thursday urged Ukrainian Prime Minister Yulia Tymoshenko to heal political rifts with her rivals to ward off further instability that would damage economic development in the former Soviet republic.

The European Union has urged Ukraine Prime Minister Yulia Tymoshenko (L), to iron out tensions with Ukraine President Viktor Yushchenko. Here, Tymoshenko is seen with EU foreign policy chief Javier Solana at EU headquarters in Brussels on Thursday.

A power struggle between Tymoshenko and Ukraine President Viktor Yushchenko are threatening to delay much needed economic and political reforms. The two were allies during the 2004 Orange Revolution against voter fraud, but they have repeatedly clashed over various policy matters, mainly concerning oil and gas.

"We still have some preoccupation on our side on the political situation," EU foreign policy chief Javier Solana told Tymoshenko after talks at EU headquarters. "We would like very much to see the political situation stabilize."

Tymoshenko told Solana she would work to heal political divisions.

"Ukraine has a very good potential and is developing positively and what we need is to get is the political unity between the president ... and my majority in the parliament, and from my side as head of the government, I will do my best to head in this direction," Tymoshenko said.

She said her government was working to lower inflation from 17% and said the economy would benefit from expected bumper crop harvests this year.

Tymoshenko was in Brussels before an EU leaders summit to bolster Ukraine's membership bid.

French President Nicolas Sarkozy will host an EU-Ukraine summit in September, at which the EU could present Kiev with an offer of closer ties.

Poland and Sweden are pushing the EU to develop a new "eastern dimension" policy that would build ties with Ukraine, Moldova, Georgia and other former Soviet neighbors.

Ukraine hopes to join the EU by 2020, but the EU remains divided on giving it the prospect of eventual membership.

Source: USA Today

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Russian-Ukrainian Relations Reveal Deeper Problems

KIEV, Ukraine -- President Viktor Yushchenko’s first meeting with newly elected Russian President Dmitry Medvedev failed to resolve the outstanding issues between Ukraine and Russia.

Russia's President Dmitry Medvedev (R) shakes hands with his Ukrainian counterpart Viktor Yushchenko at a meeting of ex-Soviet state leaders at the Konstantin Palace in Strelna outside St. Petersburg June 6, 2008.

Despite Yushchenko’s optimism that all of these issues would be resolved, “the negotiations taking everything into account became very heated.”

These issues cannot be easily dealt with, because the growing range of problem areas between Ukraine and Russia, Russia’s assertive nationalism and the divergent transition paths of both countries that began during Vladimir Putin’s first and Leonid Kuchma’s second terms in office and accelerated following the 2004 Orange Revolution.

Eleven areas bedevil Ukrainian-Russian relations showing a close interconnection between domestic and international affairs.

First, energy

Ukraine has absorbed Russian gas price increases from $50 to $179.50 per 1,000 cubic meters over the last four years with a threat to double this price in 2009.

Nevertheless, annual negotiations over gas contracts continue to be over-shadowed by anger and accusations. The energy sector continues to be very corrupt, and this factor reduces the ability of Ukraine’s elites to act in unison toward Moscow.

Ukraine has three strategic advanatages over Russia: pipelines carrying 80 percent of Russian gas to Europe, storage facilities and World Trade Organization (WTO) membership.

The Yushchenko-Yulia Tymoshenko rivalry and corruption undermine Ukraine’s leverages and leads to angry exchanges inside Ukraine and between Russia and Ukraine.

Second, CIS

The orange administration has continued and deepened Ukraine’s lack of interest in CIS integration, including the Single Economic Space (SES).

Yushchenko does not follow Kuchma’s rhetorical lip service to the CIS SES and CIS integration. Interest in the CIS is overshadowed by a reorientation toward a Deep Free Trade Area with the EU. The Party of Regions proposes not CIS integration but “neutrality” as an alternative to NATO membership.

Third, Ukrainian exiles in Russia

High-level officials accused of abuse of office (Igor Bakaj, Ruslan Bodelan) or involvement in Yushchenko’s poisoning (Volodymyr Satsiuk) continue to remain in exile in Russia. Russia has a long record of harboring fugitives sought by countries such as Georgia.

Fourth, Russian oppositionists settling in Ukraine

Exiled Russian oligarch Boris Berezovskiy not only gave financial assistance to the Orange Revolution but also financed the transcribing of the Mykola Melnychenko tapes.

Russians were convinced the Orange Revolution was part of a “Western conspiracy” and could never believe that Ukrainians were capable of undertaking a revolution without a “guiding hand.”

Fifth, the nature of the two countries’ relationship

The Russian-Ukrainian relationship has always been bedeviled by Russia’s unwillingness to treat Ukraine (like Belarus) as a partner rather than a vassal.

Russia’s unwillingness to treat Kuchma, elected in 1994 on a “pro-Russian platform,” with due respect turned him into an ardent supporter of NATO. Yushchenko’s demand for a change in the Russian-Ukrainian relationship to one between two independent states is even more demanding than that proposed by Kuchma.

As seen by Putin’s comments made during the NATO-Russia Council at the Bucharest NATO summit, Russia is unable to treat Ukraine as a foreign, serious and coherent entity.

Sixth, borders

The 2003 territorial claim on the island of Tuzla showed to what degree border issues continue to remain unresolved.

On June 3 the State Duma voted to seek the abrogation of the 1997 treaty if Ukraine got a NATO Membership Action Plan. The resolution followed Moscow Mayor Yuriy Luzhkov’s Crimean visit when he re-opened the Crimean-Sevastopol issue.

Ukraine has always had a cross-party consensus on protecting its territorial integrity, and Russia’s territorial demands merely push Ukraine toward NATO, whether under Kuchma or Yushchenko. Senior Party of Regions leader Andriy Kluyev warned, “Anti-Ukrainian statements by Russian politicians...are strategically very bad for the interests of both states,” because they pit both peoples against each other and give ammunition to “anti-Russian forces in Ukraine.”

Seventh, Black Sea Fleet

The Fleet pays a low rent of $100 million per annum, its personnel take part in anti-NATO and anti-American protests and the Fleet illegally occupies numerous buildings (lighthouses) and land that are commercially used.

The lack of respect for Ukraine is evidenced in recent naval troop exercises conducted on Crimean land without offering prior notification to the Ukrainian authorities.

Based on Russia’s unwillingness to withdraw from Moldova and Georgia and Russian officials’ statements, Ukraine’s major concern is whether the Fleet will withdraw from Sevastopol in 2017.

Eighth, Church and language

During the Yushchenko-Medvedev meeting the Russian side raised the perennial issues of alleged “discrimination” against the Russian language in Ukraine and attempts at uniting the Ukrainian Autocephalous and Russian Orthodox Churches.

Ninth, NATO enlargement

Because of Russia’s unreformed world view and historically unchanged attitude toward Ukraine, it is unable to discuss Ukraine’s drive to join NATO rationally but only in emotional and hysterical terms, using words such as “treason.”

Such language was evident during Putin’s speech to the NATO-Russia Council, where he challenged Ukraine’s territorial integrity and right to exist.

Tenth, frustration

Russia has long been frustrated by its inability to influence domestic affairs in Ukraine. Attempts to use energy pressure have always failed, notably in January 2006, when the entire West backed Ukraine in the gas dispute.

A February 2007 Ukrainian parliamentary vote to block privatization of the gas pipelines (i.e. transfer them to Russian or joint control) received 420 of 450 votes. Outside of Sevastopol Russian nationalist parties have never been able to establish Ukrainian bases of support.

Eleventh, history

Ukraine and Russia’s views of Soviet and pre-Soviet history radically changed under Kuchma, and this divergence has accelerated under Yushchenko.

Whereas Ukraine has moved to a Ukrainian national historiography, Russia has maintained a Soviet Russophile interpretation of history. School textbooks in both countries give radically different perspectives on every aspect of Russian-Ukrainian history over the last two millennia.

Yushchenko’s campaign to obtain domestic and international recognition of the 1933 artificial famine as an act of “genocide,” as seen during his May 25 to 28 visit to Canada, has been heavily criticized by Russia’s President, Foreign Ministry and State Duma.

A continuing exhibition in Kyiv of photographs from KGB files of the Ukrainian Insurgent Army (UPA), which fought Nazi and Soviet forces from 1942 to 1952, was countered by an anti-UPA exhibition in Russia and threats by Russian nationalists to attack the Kyiv exhibition. Russian nationalists destroyed a famine exhibition in Moscow last year.

In Kyiv there is a consensus among the elite and public alike that relations between Ukraine and Russia will likely continue to deteriorate.

Source: Eurasia Daily Monitor

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Wednesday, June 18, 2008

Banned Mayor May Become Russia’s Man In Kiev

MOSCOW, Russia -- Mayor of Moscow Yury Luzhkov is in contention to become Russia’s new ambassador in Kiev – despite being banned from entering Ukraine last month.

Moscow Mayor Yury Luzhkov.

His name is among several candidates being considered for the post, according to the Russian news agency Novi Region.

The news comes ahead of the expected resignation of present incumbent Viktor Chernomyrdin.

If Luzhkov is appointed, it would create a headache for Kiev. Luzhkov has repeatedly said he believed Crimea should be Russian territory rather then Ukrainian.

Ukraine’s Security Service banned him from entering the country in May due to his statements.

Chernomyrdin has been Russia’s top envoy to its western neighbour for seven years. Russian newspaper Nezavisimaya Gazeta reported that his resignation was imminent after the failure to get Kiev’s permission for a military parade during the anniversary celebrations of Sevastopol - the base of Russia’s Black Sea fleet.

The newspaper also hinted Moscow was unnerved by Chernomyrdin’s ties with Ukraine Prime Minister Yulia Timoshenko. Her relationship with President Viktor Yushchenko is now at a new low because she is regarded as his most powerful challenger for the upcoming presidential election.

It’s believed the apparent sympathy the Russian diplomat had towards Timoshenko hurt his ability to deal with Yushchenko.

The name of Chernomyrdin’s successor is still under discussion. Moscow wants an adequate response following the appointment of Ukraine’s new ambassador in Russia last week. He is Konstantin Grishchenko, a very experienced career diplomat, and Chernomyrdin called his appointment a very strong move.

Source: Russia Today

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WASHINGTON, DC -- Ukraine’s Cabinet of Ministers is drafting a bill for submission to the Verkhovna Rada (parliament) on preparations for terminating the Russian Black Sea Fleet’s deployment in Ukraine in 2017.


Concurrently with that draft law, the Cabinet is working on a comprehensive assessment of the economic, ecological, and other implications of the Russian fleet’s deployment in Ukraine.

President Viktor Yushchenko has instructed the cabinet to provide those documents by July 20, so as to initiate the process of withdrawal of Russia’s Black Sea Fleet from Ukrainian territory as soon as possible.

Nine years ahead is none too soon for initiating the withdrawal process, if the deadline of 2017 is to be respected.

Russia’s Black Sea Fleet, with its 16,000-strong manpower and extensive land-based installations in Sevastopol and elsewhere in the Crimea, will require a long time to relocate to Russia and hand over its land-based fixed assets to Ukraine.

The Russian government, however, insists that any discussion about the withdrawal process is premature.

It also argues that Russia is entitled to avail itself of the basing agreements’ prolongation clause.

Such arguments indicate that Russia intends to stall any serious discussions about withdrawal until the deadline of 2017 draws near, then to demand prolongation on the grounds that any withdrawal requires lengthy preparations.

The agreements on the temporary deployment of Russia’s Black Sea Fleet in Ukraine were signed in May 1997 for a 20-year term.

They leave open the possibility of prolonging the deployment by subsequent periods of five years at a time, unless either side serves official notice of termination at least one year prior to the 2017 deadline or the subsequent five-year deadlines.

These provisions inescapably signify that Russia's naval presence in Ukraine would lose any legal basis in 2017, if Ukraine serves a termination notice one or more years ahead of the deadline.

The process of withdrawing the Fleet must start with sufficient lead time, if the withdrawal is to be completed by 2017.

Ukraine's presidency and government deem it necessary to begin talks as soon as possible on procedures and a time-table for the Russian Fleet's withdrawal.

In addition, Kyiv seeks to continue and accelerate the long-running talks with Moscow on drawing up an inventory of buildings, training installations, and land plots used, leased, or sublet by Russia's Fleet, often illicitly, in the Crimea; settling financial accounts in that regard; transferring lighthouses and other navigational installations from the control of the Russian Fleet into that of Ukraine; and the distribution and delimitation of radio communications frequencies used by the Russian Fleet and Ukrainian authorities, respectively.

The Ukrainian presidency and government take the position of “adhering to the basing agreements to the last letter” while negotiating “calmly and respectfully” to bring Russia into compliance with the agreements.

A gradual withdrawal of the Fleet, from an early starting date to completion by 2017, should be relatively painless for Russia, both militarily and politically.

Conversely, a precipitate withdrawal on a short-term Ukrainian legal notice could be painful for all concerned and fraught with risks for Ukraine.

If the latter scenario occurs, Moscow would probably orchestrate a domestic nationalist backlash and use it as an excuse for noncompliance with the deadline.

A quick start to talks about procedures and a time-table would help foster political expectations that the Fleet would indeed ultimately withdraw.

The prospect of withdrawal should stimulate Russia to prepare new bases, at Novorossiysk or elsewhere on Russia's Black Sea coast, for accommodating the ships and personnel ahead of their relocation from Sevastopol.

Conversely, if Russia doubts Ukraine's intentions in this regard, or if Moscow generates doubts about Ukraine's capacity to obtain compliance with the deadline, Russia would not seriously tackle the base construction at Novorossiysk.

It would then claim that the Russian Fleet had nowhere to go from Sevastopol and use that argument to pressure Ukraine for a prolongation of the basing agreement.

Ukraine's constitution prohibits the basing of foreign forces on the country's territory.

Transitional provisions of the constitution, however, exceptionally allow the temporary deployment of Russia’s Black Sea Fleet until 2017, reflecting the Ukraine-Russia agreements of 1997 on the basing of the Fleet in Sevastopol.

Russia, however, seems to have learned in Moldova that it can station military forces on a country's territory in defiance of that country's constitution, which in Moldova's case as in Ukraine's bans the stationing of foreign forces.

Neither country will be able to rid itself of Russian forces if it is left to handle the problem on its own, without serious Western backing.

Source: Eurasia Daily Monitor

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Tuesday, June 17, 2008

Russia's Ivanov Warns Kiev Over NATO

MOSCOW, Russia -- Ukraine would lose defense industry ties with Russia and suffer reduced trade cooperation if it joined NATO, Deputy Prime Minister Sergei Ivanov said Saturday, news agencies reported.

Russian Deputy Prime Minister Sergei Ivanov

Ivanov said visa regulations would also be tightened should Ukraine pursue its ambition to join NATO.

The comments, at a ceremony to mark the 225th anniversary of Sevastopol port on the Crimean Peninsula — the home of Russia’s Black Sea Fleet — came on the heels of a string of pronouncements by Russian officials on issues regarding the peninsula and relations with Kiev.

“I couldn’t say for whom such a breakup would be more painful — Russia or Ukraine. I think it would be painful for both nations,” Ivanov said, news agencies reported.

Russia is vehemently against bids by Ukraine and Georgia to join the military alliance, regarding NATO’s encroachment on its borders as a security threat. It has said it might take “military steps” if the former Soviet states join.

“I am sure, or almost sure, that visas will be introduced in the event that Ukraine joins NATO,” Ivanov said. “This will affect millions, even tens of millions of people in Russia and Ukraine, whose ties will become more difficult.”

Ukraine’s economy is export-driven, and Russia is the country’s second-largest trading partner after the European Union.

In April, NATO leaders rejected Ukrainian and Georgian bids to receive a Membership Action Plan, but promised the two countries could join one day. NATO Secretary-General Jaap de Hoop Scheffer is due in Kiev on Monday.

Russia’s Black Sea Fleet is based on the Crimean Peninsula under a lease that runs out in 2017, and Ukrainian President Viktor Yushchenko has said Russia should end its presence there then.

But Dmitry Rogozin, Russia’s NATO envoy, said Thursday that he did not expect his country’s leaders to pull the Russian Navy out of the base when the lease expires.

“I think that in Russia there are no politicians who would agree that in their lifetime, under their leadership, the Black Sea Fleet should leave Sev-astopol. That will not happen,” said Dmitry Rogozin, speaking on television.

Rogozin did not indicate President Dmitry Medvedev or Prime Minister Vladimir Putin by name.

“The Black Sea Fleet has no other home. So when President Yushchenko says that the Black Sea Fleet has to leave, that means the Black Sea Fleet is being thrown out of its home, put out onto the street,” Rogozin told the Vesti- 24 television station.

The Foreign Ministry was also keep- ing the pressure on Kiev last week.

On Friday, it demanded that Ukraine halt oil exploration in parts of the Black Sea because of a territorial dispute, Itar-Tass reported.

Last Tuesday, the ministry said the 1659 battle of Konotop, in which a Rus- sian invasion was repelled, was being distorted to fit the political agenda of Ukraine’s leaders and foment anti-Rus- sian feeling.

In the battle, a Russian force was de- feated when it tried to stop a Ukrainian leader from entering into an entente with Poland and Lithuania.

Yushchenko has ordered officials to mark the Battle of Konotop’s 350th anniversary in 2009 with a series of events starting this year.

Source: St. Petersburg Times

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NATO Head: Russia Won't Decide For Ukraine On Atlantic Alliance

KIEV, Ukraine -- NATO members and Ukraine's populace, not Russia, will decide whether Ukraine should join the Atlantic Alliance, Secretary General Jaap de Hoop Scheffer declared Monday during a visit to Kiev.

Ukrainian riot police on Monday blocking anti-NATO demonstrators rallying in Kiev against Ukraine's efforts to join NATO.

Speaking to reporters after a meeting with the Ukrainian President Viktor Yushchenko, Scheffer did not mention Russia by name, but nonetheless both made clear that NATO rejected recent statements by Russian politicians arguing Ukrainian membership in NATO would threaten regional security, and that Moscow should oppose the idea.

"Nobody can make this decision (about joining NATO) for Ukraine," Scheffer said. "NATO is made up of 26 countries and only representatives of the alliance can take decisions about Ukraine's joining NATO."

Yushchenko claimed his government's efforts on fast-tracking a membership accession programme for Ukraine into NATO "are not aimed at Russia or any one else ... but are motivated by an essential quest for national security."

The meetings between Yushchenko and Scheffer according to participants focused on steps Ukraine's government must take to be offered a step-by-step procedure by NATO so as eventually to join the alliance, and on increased military cooperation between Kiev and Brussels.

Ukraine though not a member currently is contributing troops to all NATO peacekeeping operations worldwide - albeit marginally in the case of Afghanistan where only three Ukrainian service personnel are deployed.

The former Soviet republic with heavy cargo aircraft and air transit corridors nonetheless provides substantial assistance to the air supply effort to NATO's combat operations in Afghanistan.

Ukraine in addition intends to contribute fighting forces to a NATO quick reaction combat element intended to travel to world hot spots on short notice, Yushchenko said.

"This is critical proof of the seriousness of our intentions (eventually to join NATO)," Yushchenko said. "This fact shows that Ukraine is demonstrating its position not just as a consumer, but ... a perhaps unique contributor to world security."

Other recent expansions to Ukrainian cooperation with the alliance include a Ukraine air force helicopter modernisation programme, and flight crew training to NATO standards, in cooperation with Britian and France, according to a Yushchenko staff statement cited by Interfax.

A small anti-NATO demonstration of some 500 persons protested peacefully approximately a half-kilometre from the Scheffer- Yushchenko meeting venue in Kiev, as police cordons prevented marchers from approaching closer.

Yushchenko's pro-West government has in recent months intensified its efforts to obtain an offer from NATO to begin an accession programme, despite reservations by some of NATO's larger members, and lukewarm support by Ukraine's population.

Ukraine's goal is to receive the NATO offer "by the end of the present year," Yushchenko said.

Source: DPA

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Monday, June 16, 2008

Russia Insists On Treating Sevastopol As An Open Question

WASHINGTON, DC -- President Dmitri Medvedev has tried to make a positive impression on every foreign partner he has encountered in his first month in office, building an image of an open-minded, polite and impeccably organized statesman, if perhaps not yet as a leader.

Russian President Dmitri Medvedev

He has made few deviations from the line drawn by his senior co-ruler Vladimir Putin; and some of his own ideas, like the initiative on signing an all-European pact on non-use of force, are astonishingly irrelevant.

But still, his charm offensive has not been without success.

The only exception was the meeting with Ukrainian President Viktor Yushchenko at the Economic Forum in St. Petersburg, where Medvedev delivered an ambitious but on balance remarkably liberal address.

The news about a double increase of export prices on gas for Ukraine was not that surprising even if announced with frosty pleasure.

Gazprom’s CEO Alexei Miller recently confirmed that the company underestimated the dynamics of prices, so European customers already now pay $410 for 1000 cubic meters, while the target figure was $400 by the end of the year.

The Central Asian producers stand to benefit from the agreement to deal on the basis of “European prices,” but Ukraine cannot avoid the pain.

These energy matters will be hotly debated in various formats in the months to come but what really signified a punch in Medvedev’s smooth performance was the accusation that Ukraine’s behavior was “inadequate”.

The cause for this sharp characterization was firm insistence, championed personally by Yushchenko, on the withdrawal of Russia’s Black Sea Fleet from Sevastopol by 2017.

Medvedev, who is fond of presenting himself as a lawyer, understands perfectly well that this policy implies strict compliance with the Treaty on Friendship, Cooperation and Partnership signed with great fanfare in 1997.

In this particular case, however, he is ready to disregard the Pacta sund servanda principle and argues that the issue is open to negotiation and prolongation of the base has to be considered the priority option.

There is certainly a serious problem behind Medvedev’s heavy-handed diplomacy as the withdrawal of the fleet would constitute a hugely expensive and strategically dubious task.

There is a program for building a new base at Novorossiysk but this port has a large oil terminal and with the planned construction of the second trunk of the Caspian Pipeline Consortium the intensity of tanker traffic is set to increase further.

The construction industry in the Krasnodar Krai in the coming years will be overloaded beyond capacity with the ambitious projects around Sochi, which is preparing to host the 2014 Winter Olympic Games, so the Navy cannot expect priority attention.

Knowing that there is no way to move their heavy rear services, the admirals have taken a defiant stance, exemplified by the statement of Admiral Vladimir Vysotsky, Commander of the Navy, who suggested increasing the strength of the Black Sea Fleet from 35 to 100 ships, as stipulated by the agreement with Ukraine.

The dismal state of Russia’s shipbuilding industry, now organized in a single state-owned holding company chaired by Deputy Prime Minister Igor Sechin, guarantees that such muscle-building would in the foreseeable future belong to the category of wishful thinking.

There is certainly far more to the Sevastopol problem than just the physical difficulty of moving the fleet, and Russian politicians, from Dmitri Rogozin to Yuri Luzhkov to Sergei Ivanov, have been arguing passionately during the last couple of months that there is not only no place but also no need to abandon the base at Sevastopol.

The main context for this “patriotic” contest in scoring cheap points is the prospect of NATO enlargement that is portrayed as a grave threat to Russia’s security.

Moscow Mayor Yuriy Luzhkov visiting Sevastopol in May argued that the Russian-Ukrainian treaty should be scrapped; and the State Duma, always attuned to the moods in the Kremlin, has approved a declaration that suggests that if Ukraine secures a NATO membership plan, the treaty would become null and void.

Deputy Prime Minister Sergei Ivanov, visiting Sevastopol last weekend for the celebration of its 225th anniversary, said that he did not feel like a guest in “our city” and suggested that NATO membership would inevitably involve a visa regime between Russia and Ukraine.

Another context to this problem is that it is not clear at all what sort of future Sevastopol would have after the withdrawal of the fleet, since developing a trade port there makes little sense due to a lack of land communications.

NATO Secretary General Jaap de Hoop Scheffer confirmed that the Alliance had no plans for building a base in Sevastopol.

Russia has taken a more pro-active course and promises to increase its investments in the city infrastructure, which is closely linked with supporting the fleet.

Public opinion in the Crimea is generally pro-Russian, as confirmed by the 1,000,000 signatures gathered under the appeal to keep the Black Sea Fleet in Sevastopol indefinitely.

Even more telling is a recent Gallup poll, according to which 53 percent of Ukrainians approve the policy of Russian leadership and only 24 percent disapprove, which is a higher approval rating than in Belarus or Armenia.

Deep splits in Ukraine’s political elite and bitter animosity between Yushchenko and Prime Minister Yulia Tymoshenko give Medvedev space to play hardball and assert himself as a true “defender” of national interests.

At the same time, the Kremlin tends to underestimate the success of Ukrainian state-building, fantasizing about a break-up that might be triggered by Crimea, as Putin tried to insinuate at the NATO Bucharest summit.

The word “Sevastopol” resonates strongly with Russia’s still uncertain identity, but attempts at exploiting this effect covered by accusations about Ukraine’s inability to engage in a “civilized dialogue” are seriously irresponsible.

Instead of achieving a demonstrable success, Medvedev might find himself trapped on a dead-end track, where the losses could be far greater than the costs of moving a couple of dozen rusty ships to an unprepared anchorage.

Source: Eurasia Daily Monitor

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NATO Reviews Ukraine Entry Hopes

KIEV, Ukraine -- A top NATO delegation is beginning a two-day tour of Ukraine to discuss the next stages towards the country's possible membership of the alliance.

A Communist anti-NATO demonstrator in Kiev.

NATO Secretary-General Jaap de Hoop Scheffer is being accompanied on the trip by representatives of the 26 NATO member states.

But while Ukraine's government is keen to join the alliance, its population is split on the issue, correspondents say.

And Russia has warned Kiev of serious consequences if it pushes ahead.

Last month Russian President Dmitry Medvedev said Ukraine would be in breach of a 1997 friendship treaty if it joined NATO.

Moscow is deeply opposed to its neighbours joining the alliance, and its relations with both Ukraine and Georgia have deteriorated sharply as they have made their membership ambitions clear.

At the weekend Russia said it could limit defence industry co-operation with Ukraine or increase visa restrictions.

Close to Russia

The NATO delegates will meet Ukraine's president and defence and foreign ministers - who will be keen to explain their readiness to join, says the BBC's Gabriel Gatehouse in Ukraine.

They hope to be invited onto the alliance's Membership Action Plan, which officially kicks off the membership process.

But the NATO party will also hold public meetings in a number of cities across the country - where it is likely to be presented with a rather different picture, our correspondent says.

Opinion polls consistently suggest that more than half of Ukrainians have a deeply negative view of NATO.

In eastern parts of Ukraine Russian is the most commonly spoken language, and much of the population there feels close links with Moscow.

Source: BBC News

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No Plans To Hold Euro 2012 Outside Of Poland And Ukraine, UEFA Says

VIENNA, Austria -- UEFA has no contingency plan for the 2012 European Championship if co-hosts Poland and Ukraine are unable to meet construction deadlines.

UEFA spokesman William Gaillard

Ukrainian Football Federation vice-president Boris Voskresensky told Russian newspaper Sport Express that the company renovating the 80,000-seat Kyiv Olympic stadium is "incapable" of finishing the job on time due to a lack of necessary materials and resources.

UEFA spokesman William Gaillard said that president Michel Platini will lead a delegation after Euro 2008 and visit the co-hosts from July 1 to gauge the organizational progress.

"At this stage, we are not discussing any Plan B in terms of new countries," Gaillard said. "There are alternative scenarios, there are proposed different cities within Poland and Ukraine - like Krakow and Odessa - which could host matches.

"We want to make some decisions by the summer on whether we need to construct a Plan B in Ukraine and Poland or outside (of those countries). Much of that will depend on what we find out in July. At this stage, we are still hopeful and optimistic that everything will be fine there."

UEFA had already given Poland and Ukraine an ultimatum in January to work faster.

"In January, we gave them four to six months to fix things and give us a progress report," Gaillard said. "At this point we are not more concerned than we were in January, but at the same time we are not less concerned.

"We don't have a contingency plan, because once you look at a championship, normally this is where the competition goes. So we never allocated this championship with a thought in the back of our mind that we would have to reallocate it later on."

Scotland has reportedly told UEFA it could step in and host the tournament.

Source: The Canadian Press

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Sunday, June 15, 2008

Paul McCartney Plays To 350,000 In Kiev

KIEV, Ukraine -- Paul McCartney performed in front of 350,000 people in Kiev, last night (June 14), the largest audience for a gig Ukraine has ever seen.

Former Beatles band member Paul McCartney waves to fans prior to his concert in Kiev, Ukraine, Saturday, June 14, 2008.

The former Beatle and his band performed a mammoth 33-song set in the capital's Independence Square, playing songs including 'Drive My Car', 'Blackbird', 'Penny Lane' and 'Hey Jude'.

McCartney also performed a number of songs from his solo career and his time with Wings, such as 'Jet', 'C Moon', 'Dance Tonight' and 'Mrs Vanderbilt', the latter of which fans had petitioned for.

The singer greeted the audience, which included former Ukrainian and actual Georgian presidents Leonid Kuchma and Mikheil Saakashvili, by the words in Ukrainian "Pryvit, druzi!" (Hello, friends!). "Thank you for coming out in the rain tonight".

The event, called the Independence Concert, was organised by Ukrainian tycoon Victor Pinchuk and aimed to unite the country split between the pro-Western central and west and pro-Russian south-eastern regions.

The gig was simultaneously broadcast on giant screens in six other Ukrainian cities and on television, with an estimated 10 million people watching.

"And now a little bit of history", the ex-Beatle said in Ukrainian before singing "Back in the U.S.S.R.", the hit that had been perceived by the Soviet fans of The Beatles as a hint that "Liverpool four" had intentions to visit their state.

After performing a number of encores, McCartney finished the set with 'Yesterday' and 'Sgt. Pepper's Lonely Hearts Club Band'.

Source: NME UK/AFP

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Saturday, June 14, 2008

Paul McCartney To Give Concert In Ukraine To Benefit Children With Cancer

KIEV, Ukraine -- Paul McCartney is expected to draw hundreds of thousands of people to a charity concert tonight on Kiev's central Independence Square.

Sir Paul McCartney

The outdoor show, the first in Ukraine for the former Beatle, is being billed as the biggest concert ever in the former Soviet republic.

It will also be broadcast live on national television and on giant screen sets up in five other Ukrainian cities.

«I'm really looking forward to it. Every time I speak to someone who has been to Kiev before they keep telling me what a great place it is with lots of history,» McCartney said in an interview posted on a concert Web site.

The square where he will play was the site of the Orange Revolution in 2004, when peaceful mass protests overturned a fraudulent election and brought a pro-Western opposition leader to power.

McCartney, who turns 66 next week, said he will take a quick crash course in Ukrainian backstage before the concert to learn a few phrases.

Organizers said the money raised will be spent on diagnostic equipment for the children's department of Ukraine's National Cancer Institute.

Many children now seek treatment abroad because Ukraine lacks the necessary equipment.

The concert is free but the organizers are asking for donations from Ukrainian businessmen and others.

More than 500 people have contributed a total of about 3 million Ukrainian hryvna (US$600,000) and donations are continuing to come in, said Tatyana Overina, spokeswoman for the Victor Pinchuk Foundation, which organized the concert.

Pinchuk, a billionaire businessman and Ukraine's richest man, established the foundation in 2006 with the stated goal of contributing to the modernization of Ukraine and bringing forward a new generation of Ukrainian leaders.

Source: AP

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EU Should Extend Hand To Ukraine

HALIFAX, Nova Scotia -- The victory of the Orange Revolution in 2004 would have been an opportune time for the European Union to extend the invitation of full membership to Ukrainians in a show of support for democracy and liberal freedoms.

Ukrainian President Victor Yushchenko (L) and Canadian Prime Minister Stephen Harper, take part in a joint news conference in Ottawa, Canada on May 26, 2008.

This opportunity was missed, however, largely because of indecision on the part of EU nations.

With Ukrainian President Viktor Yushchenko’s recent visit to Canada, and the Canadian government’s position in support of Ukrainian membership in NATO, it increasingly appears that now is the time for other Western nations, particularly those of the EU, to extend an open hand to Ukraine in the form of EU and NATO membership.

Failure to do so will have negative consequences for further democratic consolidation in the region and will surrender the initiative to an increasingly anti-democratic and authoritarian Russia.

One factor inhibiting decisive action on the part of Brussels is that many of the EU nations suffer from "enlargement fatigue."

On this issue, while it is true that Ukrainian political and economic reforms lag behind recent EU and NATO newcomers such as the Czech Republic and Baltic States, this is not sufficient justification for withholding an invitation of full membership to Ukraine.

After all, Ukrainian efforts at democratization and economic reform have been relatively on par with the EU’s and NATO’s newest members, Romania and Bulgaria.

Both of them, despite continually lagging in meeting the EU membership requirements on political and economic reform, were offered open membership invitations by Brussels.

Shutting the door on Ukrainian membership will result in several negative consequences.

First, it only increases the prospect that anti-democratic forces in Ukraine, who are opposed to further democratic consolidation and Western integration, will be emboldened to roll back the already tenuous efforts at democratization.

The danger in this rests in the fact that those political elites who oppose EU and NATO integration have also tended to be made up of many former communist elites, such as Viktor Yanukovych and the Party of Regions, who have strong ties to Russia, and who have consistently worked to thwart increased democratic and liberal economic reforms.

Second, continued reluctance to offer the prospect of EU membership will serve to demoralize Ukrainian forces favouring increased democratization and economic reform.

Effectively, it acts as a slap in the face after the many sacrifices that Ukrainians have already made in their transitioning to democracy since 1991, after years of domination and oppression under Soviet Communism.

The prospect of full membership would encourage democratic leaders in Ukraine, such as President Yushchenko, because they would have something tangible to offer the people that would justify further liberal reforms and democratization.

Finally, not granting an invitation of full membership to Ukraine will forfeit the game to Russia and only do a disservice to the spread of democratization.

All too often EU nations, particularly France and Germany, have been overly concerned with trying not to hurt Russia’s pride, in the naïve belief that this will help maintain stability in the region and lessen the appeal of anti-democratic forces.

These attempts increasingly appear to be failing.

This failure is exemplified in two ways: first, by Europe’s disinterest and muted criticisms of Russia’s close ally, Belarus, and its backslide into what resembles neo-communist totalitarianism; and second, by the glaring reversal of Russia’s much hyped "democratization," and Moscow’s increasingly revanchist stance towards neighbouring countries.

With Moscow’s increasing desire to re-exert control over former Soviet republics, failure to provide to Ukraine the promise of open membership in the EU and NATO could all but doom Ukraine’s tenuous democracy.

If history is any lesson, not offering the promise of full EU and NATO membership to Ukraine in its time of need will have long-term, dire consequences for the prospect of achieving democratization, security in Europe and world peace.

Now is the time for nations of NATO and the EU to act together and speak loudly in support of democratization.

There may not be another opportune chance to help bolster democratic forces in Ukraine, like that which was provided by the Orange Revolution.

It is imperative that the nations of the EU and NATO act now before the important presidential election of 2010 to send the message to all Ukrainians who yearn for democracy, human rights and individual freedoms, that the Western democracies stand in solidarity with them.

Source: The Chronicle Herald

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Russia Tells Ukraine: Stop Black Sea Oil Drilling

MOSCOW, Russia -- Russia demanded on Friday that Ukraine halt oil exploration in parts of the Black Sea, saying the work was illegal because a territorial dispute over the area had not been resolved.


The activities of Ukrainian energy companies in certain areas of the sea "are of an illegal nature and must be halted," Russia's foreign ministry said in a statement sent to reporters.

"The areas in question are the subject of a negotiations process between the Russian Federation and Ukraine on the demarcation of the continental shelf and exclusive economic zones in the Black Sea," it said.

Political ties between Moscow and Kiev are strained because of Russian opposition to Ukraine's NATO membership bid and disputes over the price at which Russia sells gas to its ex-Soviet neighbour.

The foreign ministry statement did not say if the Russian objections applied to U.S. firm Vanco Energy, which has been granted a contract by Ukraine to develop an area of just under 30,000 square km at the northern end of the Black Sea.

Vanco Energy has said it would spend as much as $3 billion on the project, starting with a $190 million investment in the first three years.

Moscow and Kiev are in dispute over territorial waters around the Kerch Strait, a waterway at the northern end of the Black Sea which separates Ukraine's Crimea Peninsula from the coast of southern Russia.

Source: Reuters India

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Russia: NATO Chief Praises Cooperation, Despite Differences

BRUSSELS, Belgium -- NATO's secretary-general has hailed cooperation with Russia, despite a number of sharp disagreements between Moscow and the Western alliance.

NATO chief Jaap de Hoop Scheffer

Jaap de Hoop Scheffer's comments came as NATO defense ministers met in Brussels with their Russian counterpart, Anatoly Serdyukov, and separately with Ukraine's defense chief.

De Hoop Scheffer said there was a "broad area" of successful cooperation, such as the agreement to allow the transit through Russia of supplies for NATO's Afghan mission, or cooperation in the broader fight against terrorism.

"Let me mention Afghanistan -- Russian support to ISAF including the land-transit agreement, [and] we're working on an air-transport deal in this regard," he said. "We have, on the basis of a discussion in Bucharest, stepped up our counternarcotics training program. Russia continues -- [which is a] very important point -- to participate in NATO's naval antiterrorist operation Active Endeavor in the Mediterranean, a third Russian ship now is being prepared to deploy in the [Mediterranean] at the end of summer."

But there were also continued differences, too, de Hoop Scheffer said, on a number of well-known issues, including NATO enlargement, the Conventional Forces in Europe Treaty, missile defense, Kosovo, Georgia.

"So there are [quite a few] issues on which we do not see eye to eye, but we use the [NATO-Russia Council] to discuss these and we use the [council], of course, also to analyze and make an inventory of the many forms of practical cooperation that we have," de Hoop Scheffer said.

Russia and NATO have clashed recently on all the subjects mentioned by de Hoop Scheffer.

Last month, new President Dmitry Medvedev warned of an "adequate response" to U.S. missile-defense plans for Central Europe, plans which NATO has endorsed.

On Kosovo, Russia, like Serbia, has opposed its declaration of independence. True, several members of NATO have not recognized Kosovo either. But the alliance on June 12 still managed to agree to train a new, lightly armed security force for the newly independent state.

On Georgia, de Hoop Scheffer recently rebuked Russia for sending several hundred soldiers into the Georgian breakaway province of Abkhazia.

And there are also disagreements, of course, on the eastward expansion of NATO. In April, NATO decided not to put Ukraine and Georgia on an immediate path to membership, but did say both would eventually join.

Medvedev said last week that NATO expansion could spoil relations with Moscow for years to come.

But Ukrainian President Viktor Yushchenko tried to reassure Russia that his country's membership ambitions are not aimed at Moscow. In an interview with the French daily "La Croix," Yushchenko said Ukrainian territory would not be used against Russia.

Ukraine's membership aspirations were also up for discussion when NATO ministers met their Ukrainian counterpart, Yuriy Yekhanurov.

Public opinion polls have shown a minority of Ukrainians support NATO membership. But Yekhanurov said more and more were seeing its advantages.

"Despite the diversity of political views and positions in Ukraine, there is growing consolidation among political elites and understanding of NATO's role and tasks, as well as the national advantages of joining [NATO's] Membership Action Plan," Yekhanurov said.

NATO has now reaffirmed that Ukraine's progress toward membership would be reviewed by alliance foreign ministers in December.

Plenty of fodder, then, for "constructive exchanges of views" at future NATO-Russia Council meetings.

Source: Radio Free Europe

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Friday, June 13, 2008

Russia NATO Envoy Opposes Ukraine Base Pullout

MOSCOW, Russia -- Russia's NATO envoy said on Thursday he did not expect his country's leaders to pull the Russian navy out of neighboring Ukraine, defying a demand by Kiev that Moscow close its Black Sea base by 2017.

Russia's NATO envoy Dmitry Rogozin

The row over the base has developed into a fresh conflict between the former Soviet republics that have frequently clashed since an "Orange Revolution" in 2004 brought the pro-western President, Viktor Yushchenko, to power in Kiev.

Moscow also fiercely opposes Yushchenko's bid to push his country towards NATO membership.

"I think that in Russia there are no politicians who would agree that in their lifetime, under their leadership, the Black Sea Fleet should leave Sevastopol. That will not happen," said Dmitry Rogozin, speaking on Russian television.

Rogozin did not name the country's President Dmitry Medvedev or Prime Minister Vladimir Putin by name.

Russia, which effectively ruled Ukraine from the mid-17th century to the end of Soviet rule in 1991 with varying degrees of autonomy, has traditionally viewed the country as part of its sphere of influence.

Russia's Black Sea fleet is based in Sevastopol in Ukraine's Crimea peninsula under a lease which runs out in 2017 and Yushchenko has said Russia should end its presence there then. The port will celebrate its 225th anniversary on Saturday.

Previously part of Russia, Crimea was assigned to the Ukrainian Soviet Socialist Republic in 1954 by then-Soviet leader Nikita Khrushchev. Some in Moscow have suggested its legal status could be in doubt.

"The Black Sea Fleet has no other home. So when President Yushchenko says that the Black Sea Fleet has to leave, that means the Black Sea fleet is being thrown out of its home, put out onto the street," Rogozin told the Vesti-24 television station.

"Sevastopol is not just the location of the Black Sea Fleet. Sevastopol as a town as a fortress ... was created specially for the Black Sea Fleet," he said.

Moscow Mayor Yuri Luzhkov was declared persona non grata in Ukraine this year after he said at celebration for the 225th anniversary of the Black Sea fleet that Russia should take back Sevastopol.

Russia's Deputy Prime Minister, Sergei Ivanov, is due to attend a function in Sevastapol on Saturday to mark the date.

Source: Google News

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Thursday, June 12, 2008

Black Community Appeals To Ukraine President After Street Death

KIEV, Ukraine -- Leaders of the growing black community in Ukraine appealed to President Viktor Yushchenko for assistance after the street death of another African national, Korrespondent magazine reported Wednesday.

Nigerian preacher Sunday Adelaja

Sunday Adelaja, an evangelical preacher and a leading member of the Nigerian diaspora in the Ukrainian capital Kiev, told the STB television station that increasing racism in the former Soviet republic was responsible for almost daily attacks against dark- skinned persons, and murders on monthly basis.

"The situation is getting worse and worse," he said.

African community leaders had joined together to ask Yushchenko, a strong supporter of European values including racial equality, for assistance due to repeated non-action by police after racial violence, Adelaja said.

Atonga Luilu, a Congolese immigrant residing in Kiev, was found dead on the street of a residential neighbourhood on Monday.

Despite severe head injuries and a broken neck visible on the body, city policy concluded Luilu's death was accidental, caused by his falling down after an epileptic fit.

"This is absurd, he clearly was attacked. ..," said John George, president of an Nigerian civil association. "And this is not the first time."

Nigerian Baie Olubaiode was knifed to death in Kiev on May 29. Sierra Leonian Victor Bendu-Charles was killed in his Kiev apartment in March, and an 18-year-old Congolese citizen murdered in a January street argument.

Police are still searching for Olubaiode's killers, but have said suspects in the other two murders have been arrested and will go to trial within two months.

Racist attacks are on the increase in Ukraine. Most frequently targeted are dark-skinned Africans and Jews. Indians and Chinese also have been attacked.

Yushchenko has repeatedly called for a police crackdown on racism- related crimes, and pushed legislation through parliament making even the commission of a verbal threat or mild violence, if on racist grounds, punishable by jail sentences up to twelve years.

Source: DPA

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Yushchenko Ordered Not To Share Radar Data With Russia

KIEV, Ukraine -- Ukraine’s President Viktor Yushchenko has inked a decree, whereby Ukraine stops providing to Russia the data of its radar stations in Mukachevo and Sevastopol, Kommersant Ukraine reported with reference to informal sources.

President Viktor Yushchenko

Russia denounced the agreement on using Ukrainian radar stations far back in February 2008.

Although Moscow still buys the information from those radar stations, it intends to finally reject the data.

According to informal sources, Yushchenko inked the decree on radar stations June 9, but the document hasn’t been promulgated yet.

There are “definite reasons” for secrecy, a source with Ukraine’s National Security Council explained on condition of anonymity.

Other sources, however, say the decree has been elaborated but its signing is slated for June 13.

The Dnepr radar stations were put into operation in 1979 and passed to Ukraine after collapse of the Soviet Union.

Russia used their data under the international agreements, paying $1.3 million a year for it.

The radars are obsolete and Ukrainian operators aren’t properly qualified, spokesman of Russia’s military leadership tend to announce today.

Then President Vladimir Putin inked the decree on agreement’s denunciation February 12, 2008.

Of interest is that Yushchenko’s decree also commits to upgrade those radar stations for future joint use with western partners.

Source: Kommersant

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Government Paralysis: The Never-Ending Story

KIEV, Ukraine -- The government led by Prime Minister Yulia Tymoshenko appeared to be hanging by a thread after two lawmakers defected from the pro-Western governing coalition.

Viktor Baloha, President Viktor Yushchenko’s Chief of Staff, has been demonized by political pundits, who accuse him of seeking to dismantle Ukraine’s pro-Western coalition.

The defections paralyzed the coalition’s backing in parliament, where it lost the hairline two-seat majority Tymoshenko had since she took over as premier in December.

The coalition, composed of Tymoshenko’s political bloc and the largely pro­presidential Our Ukraine grouping, continues to exist de jure, analysts said.

According to the constitution, coalitions are formed by factions, not lawmakers. However, it is visibly weakened, and now lacks a majority needed to approve any decisions.

As a result, the prospects are high for Ukrainian politics to sink back into a stalemate, or deeper into political paralysis that would lead to either formation of a new coalition or early elections.

One of the defecting lawmakers, Yuriy But, a former Russian citizen who served in Vladimir Putin’s administration briefly but joined parliament on the Our Ukraine ticket after becoming a Ukrainian citizen in 2005, defended his decision.

He said the move was necessary to end an escalating rivalry between Tymoshenko, and President Viktor Yushchenko.

Both erstwhile Orange Revolution allies have clashed in recent months on a range of issues, including billion-­dollar privatization plans, and government handling of surging inflation.

Their spat is expected to escalate further as the 2010 presidential contest nears.

“I can’t continue to work in the framework of a union that doesn’t stick to its promises [to voters] and stopped serving as a support base for President Viktor Yushchenko,” But said, referring to Tymoshenko’s believed aim to challenge Yushchenko for the presidential seat.

Ihor Rybakov, the other defector and a member of Tymoshenko’s bloc, referred to corrupt dealings in the highest echelons of government, and argued his defection would help bring stability to Ukraine.

Some coalition members and political observers pointed the blame on Yushchenko’s right hand man, Viktor Baloha, head of the presidential administration.

They claim the defections were orchestrated by Baloha, who has led much of the criticism directed at Tymoshenko’s government.

Baloha’s alleged strategy, according to political analyst Volodymyr Fesenko, is simple: paralyze the coalition, opening the door for fresh coalition talks with other parties, including the Moscow­leaning Regions party led by ex­premier Viktor Yanukovych.

“Baloha and some of the Our Ukraine representatives have common business interests with the Regions party and are interested in uniting into a coalition” that would sideline Tymoshenko, said Anatoliy Semynoha, a lawmaker in the premier’s political bloc.

In recent days, Yanukovych’s Regions party argued that the two defections equate to the collapse of the coalition.

But experts, coalition members and even Yushchenko himself held back, insisting the coalition was still legally intact.

Some political insiders claimed the coalition could squeeze votes through parliament in the near term by mustering support from other parties, such as the bloc of Volodymyr Lytvyn.

Some even pointed to Lytvyn, a senior politician who once headed Ukraine’s presidential administration under Leonid Kuchma, as a possible new partner for a strengthened coalition.

Political observers cite three scenarios as likely outcomes of the most recent political dust-­up in Kyiv.

In a stalemate scenario, Tymoshenko’s government could hold up, but with severely limited ability to pass reforms and fulfill populist promises that would boost voter support.

If the coalition does collapse fully, a new power-­sharing pact could be formed between Yanukovych’s Regions party, and a portion of the presidential-­loyal Our Ukraine grouping.

A repeat of last fall’s snap parliament election is also a possibility.

Yet political analysts question whether Ukraine’s three leading politicians would be willing to roll the dice in an early vote considering the unpredictable results in a snap poll held last month in Kyiv’s city council.

Recent political polls indicate that voters have tuned out Kyiv’s relentless political rivalries.

Turnout could be low as in the Kyiv mayoral and city council elections.

Like the Kyiv vote, parties backing the three main leaders could lose ground to smaller parties and fresh political figures.

Political analyst Kost Bondarenko predicted that voter turnout would be less than 50 percent in a snap election, and smaller parties would sneak in grabbing voter support from the three leaders.

The dominant political forces in Ukraine are not interested in pre­term elections as they lose voter support, Semynoha added.

Victor Chumak, a political analyst at the Kyiv-­based International Centre for Policy Studies, said Yushchenko is likely more inclined to seek a power-­sharing agreement with Yanukovych.

Both would ally themselves against Tymoshenko, whose chances in the 2010 presidential poll are seen as strongest.

Such an alliance would be a sweet-­but-­sour victory for Yushchenko.

While sidelining Tymoshenko, the return of Yanukovych’s Moscow­friendly Regions to power would derail Yushchenko’s Western integration initiatives, such as aims for Kyiv to join the NATO security alliance.

For Yushchenko, mustering support of political allies to join an alliance with Yanukovych could prove difficult, according to Semynoha.

“The majority of lawmakers in Our Ukraine want to preserve the democratic forces coalition with the Tymoshenko Bloc and isn’t going to change its principles,” Semynoha said, referring to the alliance between both groups.

The alliance has been shaky since the Orange Revolution of 2004, which propelled Yushchenko to the presidency against a fraud marred vote in favor of Yanukovych.

The loosely packed Our Ukraine bloc consists of more than a half­dozen parties.

Some have remained pro­-Yushchenko; others have in recent months become increasingly critical of the president, signaling a possible future alliance with Tymoshenko.

Source: Kyiv Post

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Wednesday, June 11, 2008

Ukraine's Lose-Lose Mentality

KIEV, Ukraine -- There is an old joke in Ukraine: two Ukrainians find a bottle containing a genie who grants them each a wish. The first Ukrainian requests and gets what he wants; the second Ukrainian uses his wish to cancel the wish of his countryman.

Yushchenko (L) and Tymoshenko are slugging it out for popularity and power in advance of next year's presidential pol.

The joke is that envy to the detriment of one's own interests is part of the Ukrainian national character. Certainly this seems to be the case with the country’s politicians.

Last week, two lawmakers from the paper-thin Orange majority in parliament declared that they had left its ranks. The coalition, which represents an uneasy if not entirely farcical alliance between President Viktor Yushchenko and his former comrade during the country's 2004 Orange Revolution, Prime Minister Yulia Tymoshenko, only had a two-seat majority in the first place.

Now neither the president nor the premier are apparently in control of the legislature. If President Yushchenko was behind the two deputies' decision, he has effectively shot himself in the foot in order to scare Tymoshenko with the sound of the gun.

Everyone knows that Yushchenko and Tymoshenko are slugging it out for popularity and power in advance of next year's presidential poll.

As a result, parliament, together with most other bodies of power in Ukraine, has become largely dysfunctional. But Yushchenko can no more afford to try and dismiss the Tymoshenko government than she can afford to quit: Ukrainians are tired of the string of repeat elections that they have had foisted on them under Yushchenko, whose one-time cult status as the nation's 'messiah' has been eclipsed by Tymoshenko's personal brand of feisty populism.

So, instead, the green-eyed president has set upon a campaign to spoil Ms. Tymoshenko's populist stage show from behind the curtains. The problem is that the Ukrainian electorate remembers only too well similar scenes in Orange Ukraine’s seemingly never-ending political drama.

After being fired by Yushchenko in 2005, Tymoshenko returned a year later to trounce the president's Our Ukraine party in the 2006 parliamentary elections.

Fearful of Tymoshenko's presidential ambitions, Yushchenko allowed the villain of the Orange Revolution, former Prime Minister Viktor Yanukovych, to become premier instead.

Moscow friendly Yanukovych promptly began challenging Yushchenko's executive authority until the latter managed to call repeat election, which returned Tymoshenko to power.

And despite the facade of Orange solidarity the orange politicians tried to sell to the public during and since the repeat parliamentary elections in 2007, nothing has changed in the relationship.

Tymoshenko keeps trying to win over more voters with generous deeds such as returning Soviet-era savings lost to hyper inflation, while Yushchenko has prevented her from financing the largess by blocking the government's privatization plan.

As a result, both politicians can share some of the blame for the country's skyrocketing inflation. However, the economy isn't the only victim of Orange political infighting.

Yushchenko again appears willing to sacrifice the Orange majority in parliament in order to take down Tymoshenko in the process.

Interestingly, the luring of lawmakers from their factions was used on Yushchenko himself last year by former Primer Minister Yanukovych, who tried to turn his majority (226 out of 450 seats) into a constitutional majority (300 out of 450 seats).

Yushchenko called the tactic "unconstitutional" and reacted by pushing through fresh elections. Then, earlier this year, a handful of loyalists in the pro-presidential Our Ukraine party left the party to create a new one, although they stopped short of quitting the Orange coalition.

It’s as if the president has been trying to slowly push the Orange coalition to the edge of a cliff before gathering the nerve to push it off together with Tymoshenko.

At the same time, Mr. Yushchenko has taken care to publicly maintain his distance from the inter-factional intrigue, for fear of public outrage.

Speaking during a visit to Russia on Friday, he dismissed the suggestion that the departure of the two lawmakers from the majority meant an end to the Orange coalition.

"This is not a legal basis for talking about the dissolution of the coalition," he said. "The parliamentary majority is fit for battle and will continue to operate," he added.

The fact that the two lawmakers who recently quit the coalition are, respectively, from Tymoshenko's BYuT faction and Interior Minister Yury Lutsenko’s People’s Self Defense (which partnered with the pro-presidential Our Ukraine during the last election) makes for a convenient alibi for Yushchenko.

Both maverick MPs duly denied any political motivation for their actions, roundly blaming the policies of Tymoshenko & Co. for their decisions, instead.

At the same time, other members of Our Ukraine (which includes many lawmakers only nominally loyal to Mr. Yushchenko) appear to have been caught off guard by the actions of the two MPs.

For their part, BYuT and People's Self Defense are reluctant to start making accusations, as this would raise the question as to how the disloyal lawmakers were included on the party lists in the first place.

So, ironically, Tymoshenko has to maintain the same awkward air of innocence before voters as Mr. Yushchenko has done. Like the president, she cannot allow herself to be seen as the one who destroyed the Orange coalition, which once represented justice, better living standards and equality for a majority of Ukrainians.

"I am scared by today's situation," she claimed in Kyiv on Friday, "scared because politicians sometimes don't take responsibility for any of their words, for any of their public impulses, for any of their decisions, which appear to be only situational and maybe even harmful for Ukraine at this stage, but which nevertheless have a political aim."

Parliamentary speaker Arseny Yatsenyuk, another Yushchenko loyalist who nevertheless has a mind (and a career) of his own, tried to play the whole affair down.

He announced on Monday that only factions can exit a coalition, not individual lawmakers. Nevertheless, he acknowledged that the announcement by the two deputies was "a very bad sign for the coalition."

He also predicted that the instability wouldn't end soon. "Nothing is likely to change until the coalition comes to its senses and lawmakers start making compromises," he said during a trip to Greece.

Instability has in fact been the only constant in the Yushchenko presidency. More importantly, there is little reason to doubt that any resolution that emerges down the road will not quickly lead to yet another power crisis.

President Yushchenko has long been rumored to be planning a grand coalition between his loyalists in the coalition and the business wing of Yanukovych's Regions faction.

Along the way we might see a no-confidence vote against the government, or at least the firing of Lutsenko. It's the president who hires and fires the interior minister, and Lutsenko has moved out of the president's orbit of influence.

In a political environment where victory only comes at the expense of one’s opponents, or indeed one’s allies, everyone stands a chance of losing something

Source: Eurasian Home

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Hopes Fading For Ukraine Miners

DONETSK, Ukraine -- Search teams are still trying to find 12 miners trapped after a gas explosion at a pit in Ukraine, but there are fears they may not have survived.

Rescue workers rest at the Karl Marx mine in the eastern Donetsk region.

Twenty-four miners were brought out alive on Monday, a day after the huge explosion rocked the Karl Marx mine in the eastern Donetsk region.

The body of one man, who did not survive the blast, was also retrieved.

But there has been no contact with 12 others still deep underground, amid fears the mine could soon flood.

"The search for the 12 miners is continuing," the emergency situations ministry said in a statement.

"The water is rising but it is still possible to work," Marina Nikitina, a spokeswoman for the mine safety agency, told the AFP news agency.

'Chances are minimal'

First Deputy Prime Minister Olexander Turchinov, the most senior government official at the accident site, said it was difficult to remain optimistic.

"I do not want to make any predictions, but I would say that the chances are minimal. But there always is hope," he said.

He said nine of the missing men had been ascending in a lift and were about 200m (650ft) from the surface when they were hit by the blast, which sent the cage plummeting back down the shaft.

The other three, he said, were about 1,000m below ground, where the blast occurred.

President Viktor Yushchenko accused the government of an "irresponsible" approach to the coal industry, which is still dominated by Soviet-era technology and has suffered a series of fatal accidents recently.

"The condition of the coal mining industry is deteriorating further and the profession of coal miner is becoming extremely dangerous," a spokeswoman for the president said.

Three mine blasts in the same region late last year killed more than 100 men.

The 110-year-old Karl Marx mine in Yenakiyevo, 60km (37 miles) north-east of the regional capital Donetsk, had officially been closed because of safety fears.

The miners were originally reported to have been carrying out safety improvements when the explosion occurred on Sunday, but Ukraine's safety agency later said the miners had in fact been mining, defying the ban.

A spokesman said audio tapes "prove that coal-mining took place on that day", the Associated Press reported.

Source: BBC News

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Tuesday, June 10, 2008

Russia And Ukraine Clash Over 350-Year-Old Battle

MOSCOW, Russia -- A 350-year-old cavalry battle has become the latest irritant between Russia and its neighbour Ukraine after Russia's foreign ministry on Tuesday accused Kiev of using the clash to foment anti-Russian feeling.

Battle of Konotop

The ministry said the 1659 battle of Konotop, in which a Russian invasion was repelled, was being distorted to fit the political agenda of Ukraine's leaders, who have angered Moscow by seeking NATO membership.

In the battle, a Russian force was defeated when it tried to stop a Ukrainian leader from entering into an entente with Poland and Lithuania -- with whom Russia had waged wars.

One English-language reference book, "Ukraine: A History", says the "Tsar's troops suffered one of their worst defeats ever," in the Konotop battle.

Ukrainian President Viktor Yushchenko has ordered officials to mark the Battle of Konotop's 350th anniversary in 2009 with a series of events starting this year.

"We feel perplexity and regret at the persistence ... with which certain forces in Ukraine are today trying to find ... events and people notable only for the fact that they were in some way directed against Moscow," a ministry statement said.

"Playing with history, especially with nationalistic overtones, never leads to anywhere good."

"In these conditions one must count on the wisdom of the Ukrainian people, who will not let themselves be drawn into an artificial, invented confrontation with Russia."

BAD BLOOD

Russia, which effectively ruled Ukraine from the mid-17th century with varying degrees of autonomy to the end of Soviet rule in 1991, has traditionally viewed the country as part of its sphere of influence.

Since pro-Western leaders were catapulted into power in Kiev in a 2004 "Orange Revolution," they have repeatedly clashed with Russia.

Moscow has said Ukraine's entry to NATO would threaten its security and the two states are in dispute over the future of Russia's Black Sea fleet, based in Sevastopol in Ukraine's Crimea peninsula under a lease deal.

The rows have often spilled over into differing interpretations of the past, a sensitive subject for two peoples whose histories have been closely intertwined for centuries.

Some in Moscow have suggested the legal status of Crimea could be in doubt. Previously part of Russia, it was assigned to the Ukrainian Soviet Socialist Republic in 1954 by then-Soviet leader Nikita Khrushchev.

Moscow Mayor Yuri Luzhkov was declared persona non grata in Ukraine this year after he said at another historical celebration, the 225th anniversary of the Black Sea fleet, that Russia should take back Sevastopol.

Kiev and Moscow have also clashed over whether an artificially-induced famine which killed more than five million in the 1930s amounts to "genocide" and the role played by anti-communist Ukrainian fighters in World War Two.

Source: Reuters India

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Monday, June 09, 2008

Ukraine's Famine Comes Out Of The Silence

KIEV, Ukraine -- Hryhory Haraschenko tells the stories feverishly, gesticulating with veined hands. He hauls out newspaper clippings, witnesses' tales and pencil-drawn maps. He speaks like a man haunted by memories and by decades of forced silence.

A disturbing image of Stalin's brutality towards Ukraine.

Haraschenko, 89, is among a dwindling number of Ukrainians who survived the Soviet-era famine of the early 1930s. Like other survivors and some historians, he regards the starvation - known here as the Holodomor, or "death by hunger" - as an act of genocide engineered to wipe out the Ukrainians.

He wants it discussed and recognized by the world.

"Russia is afraid we'll accuse Moscow of creating this genocide and eliminating Ukrainian villages," he says. "They try to say that Russians were killed in this famine, but don't listen to them."

After decades buried in Soviet silence and smothered in official denials, the Stalin-era famine has emerged as a painful topic that festers at the heart of tensions between Russia and Ukraine.

The push for international recognition of the famine as genocide is being led by a new generation of Western-leaning Ukrainians, most visibly President Viktor A. Yushchenko. They believe that a declaration of genocide would bolster Ukraine's independence from Russia, helping it regain its sense as a separate country bonded by national tragedy.

'Russian history'

"At school, we had only the history of the Soviet Union, and, in fact, this was Russian history," said Stanislav Kulchytsky, a Ukrainian historian and famine scholar. "Ukraine has now gotten to know its own history. We're learning our victories and our tragedies. The picture of the past makes a person nationally oriented."

The battle to forge Ukraine's post-Soviet identity and allegiances has been fought on every level: internationally and internally, among different factions of a nation historically split between its allegiances to Russia and the West.

But no struggle has proved so bitter as the one over Ukrainian history, culture and language. In today's Ukraine - the country's name means "borderland" - the smallest gestures are freighted with meaning. Some Ukrainians mind visitors who refer to "the Ukraine" - an older expression - as though the nation were merely Russia's frontier.

'He is Ukrainian'

"He will speak Ukrainian," snapped an aide to a pro-Western lawmaker when asked whether his boss might speak Russian during an interview. "He is a Ukrainian, and so he will speak Ukrainian."

Ukraine has carried out an aggressive campaign to replace the Russian language, even shifting the spelling of the capital, Kiev, to the Ukrainian version - Kyiv. Meanwhile, teachers have begun to recast anti-Russian figures as varied as 18th-century Cossacks and World War II anti-Soviet fighters as positive historical figures or even heroes.

This trend has infuriated Russia, where the sense of Ukraine as a piece of Russia remains strong, and many are suffused with newfound nostalgia for the Union of Socialist Soviet Republics. Vladimir V. Putin, who became Russia's prime minister after his presidential tenure ended in May, has complained of Ukraine's recent historical reinterpretation.

"These unfriendly moves sadden the atmosphere of relations between our two countries," Putin, as president, wrote to his Ukrainian counterpart. "They could seriously impact bilateral cooperation in various ways."

The rawest nerve

The famine might be the rawest nerve of all.

This is what Haraschenko remembers: coming home from Young Pioneer camp and helping to harvest the grain, only to watch every last kernel be carted off toward Russia. The day the soldiers came through his house and confiscated every last bit of flour and milk. The hunger that grew relentlessly until the widow who lived next door killed her 4-year-old daughter and cooked the corpse to survive.

In the beginning, he helped to bury the other students' bodies, but soon the villagers got used to death, he said, and left the remains on the streets. At least 3.5 million Ukrainians died, and survivors were ordered by Soviet officials to keep their memories to themselves.

"The agents went through the houses and said, 'There was no famine. Forget it. Don't say a word,'" Haraschenko said. "If you talked about it, if you even said the word famine, you went to Siberia."

That's a far cry from today.

Request to Bush

During a luncheon toast here in April, Yushchenko asked President Bush to recognize the famine as an act of genocide.

"We will be immeasurably grateful," he said.

Bush stopped short. But he visited the famine memorial, a stone angel at St. Michael's gold-domed cathedral backed by signs reading, "Victims of the criminal deeds of the Bolshevik regime" and "the Ukrainian holocaust."

In 2007, Yushchenko pushed a bill that would make denying either the Holodomor or the Holocaust a crime punishable by prison time. Some Ukrainians, leery of damaging strained ties with Moscow, have criticized the president.

"It makes me feel like we are living in 1937, as if we could be talking and I say the Holodomor existed, and you say you have doubts, then I have to write a complaint and take it to the police department so you face charges," said Oleksandr Moroz, head of the opposition Socialist Party. "This is idiotic. We'll make our fellow citizens the enemies of one another."

Russia furious

But the rhetoric out of Ukraine has already infuriated Russia. Nobody is denying that millions of Ukrainians died when Stalin's regime stripped the peasants of their crops during forced collectivization. But officials in Moscow say that massive numbers of non-Ukrainian Soviet peasants, including millions in Russia, Kazakhstan and other parts of the Soviet Union, also starved to death under Stalin's rule. They reject the notion that Ukrainians were targeted.

"There is no historical proof that the famine was organized along ethnic lines," the Russian Duma said in an April resolution. "Its victims were millions of citizens of the Soviet Union, representing different peoples and nationalities living largely in agricultural areas of the country. ... This tragedy does not have, and cannot have, any internationally recognized indications of genocide and should not be used as a tool for modern political speculation."

Even Nobel Prize winner Alexander I. Solzhenitsyn, who was exiled for his searing literary portraits of Soviet injustice, came out of retirement in April against the Ukrainians.

"This provocateur's cry of 'genocide' began to germinate decades later," he wrote in the newspaper Izvestia. "First, secretly, in the moldy minds of chauvinists maliciously set against [Russia], and now elevated to government circles of today's Ukraine."

NATO: Join or not?

The argument has intensified against the backdrop of looming tensions between the neighboring countries, which are tightly bound by ancient ties of religion and history.

Ukrainian opinion is divided over whether the country should work to join NATO, and many people here regard the question as an existential choice between Russia and the West.

"It's some kind of ultimate choice, strategic or even civilizational choice to be part of the West," said Oleksandr Sushko, director of Kiev's Institute for Euro-Atlantic Cooperation. "Russia is very concerned now in our history, the names of our streets, who's considered a hero or not, the famine, what's written in our textbooks. This is the state of our relations. They are still living in their mental frame of a former empire."

Old memories

In a modest apartment with his wife and cat, Haraschenko knows exactly what he wants for his country. He has never forgotten the lifestyle he witnessed as a young soldier in Austria and Czechoslovakia. Those memories have lingered, fueling a nationalistic desire to see Ukraine detached from Russia's shadow and united with Western Europe.

"Here, to this day, we haven't achieved 1 percent of what they had already achieved at that time," he said. "I compare it to the current situation in Ukraine and I can say that they were further along."

But mostly, he wants to recount his memories of the famine.

"We all kept silent," he said. "And now there are just a few left who can tell these stories."

Source: Baltimore Sun

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Students’ Wet T-Shirt Protest Over Hot Water Shortage

KIEV, Ukraine -- Dozens of students have staged a wet T-shirt protest in Ukraine to complain about hot water shortages.

Students bathe in a street fountain as they protest against an annual seasonal turning off of warm water in the centre of Kiev, June 8, 2008.

The girls, equipped with soap and sponges, plunged into a fountain in Kiev’s Independence Square to make their point – with many stripping down to bikinis or underwear.

It is a common practice in Ukraine, and many other post-Soviet states, to cut the hot water supply for maintenance for up to a month during summer.

The girls said they wanted to attract the authorities' attention to the poor timing, which has come in the middle of exams.

Source: Russia Today

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Miners Trapped Underground In Ukraine: Official

YENAKIYEVO, Ukraine -- Thirty-seven people were trapped underground Sunday in a mine now in danger of flooding after an explosion, officials said, as hopes for the miners' survival dwindled.

Rescuers walk near the Karl Marx mine.

"The fate of 37 people who were in the mine when the explosion took place... remains unknown," said Andriy Bondarenko, the regional head of the emergency situations ministry.

Deputy Prime Minister Olexander Turchinov said that underground water would flood the mine within a few hours, in comments quoted by Interfax news agency.

"Five people outside the mine" were injured, a ministry statement said.

"If people were injured outside the mine, it is hard to imagine that people survived inside," the leader of the independent miner's union, Mikhailo Volynets, told AFP.

Rescuers reached a depth of 625 metres (2,050 feet) but could not go any further, Turchinov, head of the government committee investigating the accident, told a news conference, adding that they could hear voices coming from a depth of 700 metres (2,300 feet).

The blast occurred at around 5:00 am (0200 GMT) 1,000 meters (3,300 feet) below the surface of the Karl Marx mine in Yenakiyevo, some 60 kilometres (37 miles) north-east of the regional capital Donetsk, Bondarenko said.

The blast severely damaged the entrances to the mine which was opened in 1958.

Three women operating the elevator shaft were hospitalised with serious burns and at least one other person on the surface was injured, said Marina Nikitina, head of the local branch of work safety body the Committee for the Protection of Labour.

Around 30 people were seen standing silently near the mine administration building waiting for news of their trapped relatives.

The mine was closed down on Saturday due to safety violations and only a skeletal staff was working at the time of the blast, according to the emergency ministry.

But some miners told Kanal 5 television that work at the mine had continued as usual into Sunday morning in spite of the supposed closure.

"If the mine was up and running and coal was being produced in spite of the closure the public prosecutor will get involved and punishment will no doubt be severe," said Turchinov.

Police closed off the mine and journalists were only allowed to enter the administrative building, an AFP photographer said.

Work has been suspended at 20 mines in the region following an explosion on May 23 that killed 11 people, one of a series of disasters to strike the region's aging pits in recent years.

In November last year, a gas explosion at the Zasiadko mine in Donetsk killed 101 miners. The accident was the worst of its kind in this former Soviet republic.

Source: AFP

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Saturday, June 07, 2008

Russia To Double Ukraine Gas Price

SAINT PETERSBURG, Russia -- Russian Foreign Minister Sergei Lavrov said on Friday that Moscow would charge Ukraine double the present amount it pays for gas from next year, but insisted the move was not political.

Russian Foreign Minister Sergei Lavrov

"The price of gas for Ukraine will almost double from January 1, 2009," as a result of greater costs for Russia in acquiring the gas, Lavrov said after a meeting between Russian President Dmitry Medvedev and his Ukrainian counterpart, Viktor Yushchenko.

Earlier gas prices rises imposed by Russia on Ukraine prompted complaints by critics that Moscow was punishing Kiev for its pro-Western policies.

But Lavrov insisted the rise in prices was purely commercial, saying Russia was simply passing on hikes in prices charged by producers in Central Asia.

The price Ukraine pays "will grow significantly for objective reasons," Lavrov said.

Although Russia holds massive gas reserves of its own beneath its vast Siberian expanses it also imports large amounts of gas from Central Asian neighbours due to a lack of investment in developing its own reserves.

In March, Central Asia's main producers, Kazakhstan, Turkmenistan and Uzbekistan, said that they would charge Russia "European" prices -- almost double current levels -- starting from 2009.

Ukraine currently pays Russia 179.5 dollars (115 euros) per thousand cubic metres of gas.

Last month the head of Ukraine's Naftogaz, Oleg Dubina, said Ukraine would only be ready to pay European prices in five years' time and that he hoped to sign a long-term deal on gradually increasing prices.

However on Friday, Lavrov said Yushchenko had welcomed the idea of market prices as healthy for Ukraine's economy.

An energy price hike would put further pressure on Ukraine's overheating economy, which is struggling under soaring inflation that saw consumer prices climb 30 percent in the year to April.

Gas has long proved a sticking point in relations between Russia and Ukraine, which since Yushchenko's election in 2005 has tried to reorient its foreign policy from Russia towards the West.

A price dispute in 2006 saw Russia briefly cut off all of Ukraine's gas, causing disruption to supplies to the European Union, which relies on Russia for a quarter of its supplies.

In March, gas supplies to Ukraine were again partially cut in a debt dispute.

Despite an agreement to restart supplies, disagreements remain over the role of shadowy intermediaries and the exact size of the remaining debt.

Russian Prime Minister Vladimir Putin last month said Moscow was ready to end use of intermediary companies if Kiev paid the remaining debt, although he did not specify the amount concerned.

Meanwhile Ukraine has been promoting a variety of gas and oil pipeline schemes intended to circumvent Russia's long-standing monopoly on supplies across much of eastern Europe.

Source: AFP

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Medvedev Warns Ukraine On NATO Bid

ST PETERSBURG, Russia -- Russian President Dmitry Medvedev told his Ukrainian counterpart on Friday that Ukraine could be in breach of a friendship treaty between the two countries if it joins NATO, Russia's foreign minister said.

President Dmitry Medvedev of Russia (R), shaking hands with President Viktor Yushchenko of Ukraine during the Commonwealth of Independent States summit in Strelna, Russia on Friday.

At a meeting with Ukrainian President Viktor Yushchenko in St Petersburg, Medvedev also urged Kiev not to take any unilateral steps to expel the Russian navy from the base it leases on Ukraine's Black Sea coast.

Ukraine's Western-leading leaders have secured a commitment from NATO to admit it to the alliance eventually, a move that irked Russia, and they say they want to review the presence of the Russian Black Sea fleet in the Ukrainian port of Sevastopol.

Speaking after Medvedev and Yushchenko met, Russian Foreign Minister Sergei Lavrov said both the NATO and Sevastopol issues were governed by a 1997 friendship treaty signed by the two countries.

"The treaty between Russia and Ukraine .. contains the obligation on the two parties not to do anything which would create threats or risks for the security of the other party," Lavrov told a conference call with reporters.

"We do believe NATO expansion, which would include Ukraine, would create a risk for Russian security," he added.

"This was reiterated by President Medvedev, that we do not believe NATO membership for Ukraine would serve ... the interests of the two countries."

On the issue of Sevastopol, the Russian foreign minister said Medvedev had "called upon our Ukrainian colleagues to ... resolve all issues related to the functioning of the Black Sea fleet ... avoiding any unilateral acts."

Source: International Herald Tribune

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Friday, June 06, 2008

Scotland Reiterate 2012 Host Availability

GLASGOW, Scotland -- The Scottish FA previously declared the nation available to host Euro 2012 should UEFA deem Ukraine and Poland's preparations unacceptable.

UEFA President Michel Platini

UEFA president Michel Platini is set to revisit sites in Ukraine after being dismayed by lack of progress in terms of stadiums and infrastructure earlier this year.

Scotland failed in a joint bid with Ireland for Euro 2008, but are confident that they can bolster currently suitable venues Hampden Park, Ibrox, Celtic Park and Murrayfield in time for the 2012 showpiece.

SFA chief executive Gordon Smith told BBC Scotland: "We have made it clear that we'd like to be considered if it's not going ahead in Ukraine and Poland.

"With the event likely to expand after 2012 it would be our last chance."

Smith revealed that he has already spoken to UEFA president Michel Platini about using Scotland as a host nation, adding: "I asked if the size of the competition was increasing from 16 teams.

"And, given that it probably would after 2012, we would not be able to stage a European Championship if that was the case.

"But he (Platini) said there might be an opportunity, you never know.

"There is an inspection on Ukraine and Poland's facilities in June or July and if they don't match up they may have to take the tournament elsewhere.

"I said was that we'd like to be considered if that situation arose. We haven't been told we are on standby or anything like that."

Problems

The Ukranian FA admits that there are concerns, but insists that UEFA have made no mention of stripping them of their hosting status.

FA member Igor Miroshnychenko said: "I have heard the story about the possibility of the championships being taken off us.

"I spoke with UEFA on Wednesday and they told me that they have no plans at the moment to move elsewhere, but it's not a good situation here at the moment.

"We have no main stadium and there are problems with the roads; it's not a good situation politically.

"People here feel there are too many problems to host this tournament. Can we host it? I really don't know."

Smith added that Scotland, on the other hand, has political backing. He said: "I've had discussions with [First Minister] Alex Salmond and the Scottish government and they would like us to apply for a tournament."

Source: Goal Com

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Ukraine’s International Telecommunication Company Chooses Alcatel-Lucent’s Ethernet Wireless Backhaul Solution

PARIS, France -- Alcatel-Lucent yesterday announced that it has signed a contract with International Telecommunication Company (ITC), Ukraine’s largest CDMA operator - operating under the brand “CDMA Ukraine”, to provide an end-to-end solution based on next-generation wireless transmission technology.


The Alcatel-Lucent microwave solution will help ITC optimize the delivery of existing services and quickly enable advanced mobile multimedia applications to more than 100,000 subscribers in 17 Ukrainian regions.

Providing a cost-effective network evolution path protecting ITC’s current investments, Alcatel-Lucent’s microwave solution will deliver enhanced Ethernet backhaul capabilities for maximized network efficiency.

Scheduled for completion by the end of 2008, this project will help ITC increase its backhaul capacity over its CDMA network.

“Our subscribers’ increasing demand for content applications require enhanced backhaul capabilities. Alcatel-Lucent solution will help us deliver new services more efficiently with the highest quality at minimized operational expenditures,” said Dmitry Buschik, Marketing Director at ITC.

“It will also enable us to cost effectively tailor our network according to the bandwidth needs driven by innovative applications.”

“Service reliability, scalable bandwidth and lower cost of network ownership are critical factors for mobile operators as their infrastructures need to migrate and support new, advanced services,” said Frederic Rose, President of Alcatel-Lucent’s activities in Europe, Africa and Asia.

“This new contract further confirms our ability to support mobile operators in their backhaul network strategy, by offering a comprehensive portfolio of products and solutions that fit any territorial environment.”

Under the terms of this contract, Alcatel-Lucent will supply its 9400 AWY digital microwave system for microwave edge link with Ethernet interface.

The Alcatel-Lucent 1350 management suite will supervise the entire solution.

The contract reconfirms Alcatel-Lucent’s expertise in addressing mobile operators requirements, enabling CDMA and GSM/UMTS service providers to scale their networks profitably from cell site to core and delivering significant OPEX reductions.

Alcatel-Lucent supports diverse transport alternatives providing an evolution path for any infrastructure (copper, fiber, wireless), with integrated end-to-end management across fixed and mobile technology domains.

With its Mobile Evolution Transport Architecture (META), Alcatel-Lucent has developed the industry’s most comprehensive vision for the evolution of mobile networks from TDM to all-IP.

Source: La Société

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Thursday, June 05, 2008

Low-Cost Airline Germanwings Aims At 2 New Ukraine Routes

KIEV, Ukraine -- The German low-cost airline Germanwings intends to open two new routes to the former Soviet republic Ukraine, the Interfax news agency reported Thursday.


Oleksander Davydov, a Ukraine Transport Ministry spokesman, confirmed Germanwings had applied to operate aicraft along the routes Kiev-Berlin and Kiev-Cologne.

"We are considering the (Germanwings) application," Davydov said.

The report came three days after Ministry of Transport officials announced they were in discussions with an unnamed German low-cost air carrier to become the second low-cost airline servicing Ukraine.

Currently only one low-cost airline, Hungarian Wizz Air, is registered to operates flights into and out of Ukraine. The first Wizz Air flight is expected this month.

A Transport Ministry decision on allowing a second low cost carrier, most likely German, into the Ukrainian market will come by early July, according to the report.

Talks are in progress between the Ukrainian government and an Arab low-cost carrier as well, Transport Ministry officials said.

Cologne-based Germanwings was founded in 2002 and has a fleet of 27 Airbus aircraft. Its main routes are to East and West Europe.

Ukraine's air passenger market has grown dramatically in recent years, with an estimated 30 per cent expansion projected for 2008 alone.

The highly-regulated sector currently currently is dominated by a Ukrainian airlines charging rates some three times ticket prices offered by budget carriers over similar distances.

Source: DPA

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US Commerce Sec. Warns Ukraine Amid Growing Dispute Over US Company's Oil Contract

KIEV, Ukraine -- U.S. Commerce Secretary Carlos Gutierrez suggested Thursday that a growing dispute over the cancellation of a U.S. company's oil exploration contracts could damage Ukraine's reputation with foreign investors.

U.S. Commerce Secretary Carlos Gutierrez

Gutierrez spoke to business leaders in Kiev a day after President Viktor Yushchenko ordered his top security advisory council to sort out the dispute involving the Texas-based Vanco Energy Co.

He said the Vanco dispute could frighten away investors and that Ukraine needed a clear set of rules for investment.

"Every time there is a contract, that is an opportunity to demonstrate to the world that contracts are respected," he said.

"Not all businesspeople may like the rules," Gutierrez said, "but they should know what the rules are and that the rules are predictable."

The government of Prime Minister Yulia Tymoshenko last month said it had canceled a contract with a Vanco subsidiary to explore for oil and gas on a deep-water shelf off the Black Sea Crimean peninsula.

The government said the 2006 production-sharing agreement amounted to "plundering Ukraine's mineral reserves."

Tymoshenko also accused Yushchenko of lobbying for the U.S. firm, whose contract was estimated to be worth some US $13 million (€8.25 million).

Yushchenko met with Gutierrez on Wednesday. His press office later issued a statement saying that Yushchenko had ordered the head of his National Security and Defense Council, Raisa Bogatyryova, to work toward restoring the contract to Vanco in the next few weeks.

According to the company, the offshore shelf region known as Prykerchenska covers around 5,000 square miles (12,900 square kilometers), southeast of the Crimea peninsula.

Development of the entire Prykerchenska project would require more than US $20 billion (€12.7 billion) in investments, the company says.

Yushchenko and Tymoshenko were allies during the 2004 Orange Revolution against voter fraud, but they have repeatedly clashed over various policy matters, mainly concerning oil and gas.

Tymoshenko used to head one of Ukraine's main energy companies.

Source: International Herald Tribune

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Budget Airline Lands In Ukraine

KIEV, Ukraine -- Hungarian airline Wizz Air is set to launch domestic flights in Ukraine this summer, beginning with flights from Kyiv’s Boryspil airport to Lviv, Kharkiv, Simferopol and Odessa for less than the cost of a train ticket.

Wizz Air Airbus 320

Wizz Air’s emergence in the Ukrainian airline market is set to grow and include flights to London Luton, Dusseldorf and Milan Bergamo in September 2008. Tickets will range from Hr 199-299 ($42-$63) one-way including taxes. Domestic flights will start at Hr 48 ($10).

Tickets went on sale on April 25 and 3,000 tickets have been sold so far, said Natalya Kazmer, general director at Wizz Air Ukraine.

“I bought tickets in two directions, Simferopol and Lviv,” said Viktoriya Braychenko, a marketing communications specialist at Ankor. “You can fly to Crimea every weekend in the summer for this price.”

Many Kyivans are excited about the low cost carrier coming to Ukraine. But Vyacheslav Konovalov a transport analyst for UBS, a Ukrainian business channel, believes Wizz Air’s cheap tickets aren’t likely to stay cheap for long. He believes Wizz Air will be forced to increase ticket prices that match the national airlines in Ukraine sometime in the near future.

“I think the current ticket sales are an attempt to study consumer demand and the flights will not take place. Wizz Air has already cancelled two promised flights to Kharkiv and Zaporizhya,” he said.

But Kazmer says cheap air ticket prices are not an advertising gimmick or part of a marketing ploy. “This is our company’s philosophy,” Kazmer explained. “We sell tickets at more democratic prices because we spend less.”

Wizz Air’s entrance into the Ukrainian market has Ukrainian airlines re-thinking their fees. Aerosvit quickly reacted by slashing summer fares and announcing a summer seat sale. “We are already thinking over our strategy for when other economy air carriers arrive on the market,” said Serhiy Kutsyi, spokesperson for Aerosvit.

“Our company was among the first ones in Ukraine to practice discount ticket sales. We will proceed with it now,” said Kutsyi.

Aerosvit introduced three levels of ticket costs at discount prices for internal flights to Simferopol, Odessa and Lviv until July 14. The prices will range from Hr 45 ($9.50) to Hr 230 ($49), including all taxes. But, the discounted fares will only apply to certain flights, Kutsyi said.

How does Wizz Air do it? Many Ukrainians wonder how the discounted carrier can afford low fares. According to Wizz Air, they plan to sit on the tarmac just long enough to fill up the gas tank and get passengers off and on the plane.

“An Airbus 320 costs about $66 million. This is a huge sum of money, which we will work off to the utmost,” said Kazmer. “The plane will stay on ground for only thirty minutes, the exact time necessary for passengers to leave the plane and new passengers to get in and to fill up the tank.”

The company will have four airplanes by 2009 and 15 by 2012.

Wizz Air Group plans to invest at least $1.5 billion into the development of Wizz Air Ukraine.

But, travelers should be prepared to pay extra for overweight luggage and in-flight meals on Wizz Air flights. If baggage weighs more than 10 kilograms per person you will have to pay Hr 58 ($12) or more. If the luggage is 20 kilograms over the limit, each extra kilogram will cost about Hr 75 ($16).

“Additional payments are justified,” Kazmer explained. “If you don’t have luggage, you don’t have to pay for it. If you don’t want to eat, you don’t pay as well. All traditional companies include payments for such services into the ticket price.”

While some semi-budget airlines, like Air Baltic, offer cheap flights to select international destinations from Kyiv, this is the first full-fledged, low fare carrier to come to Ukraine.

The four year old Budapest-based company is hoping to take advantage of the growing demand for no frills flights. The company has carried close to 5 million passengers since 2004.

Meanwhile, Romania-based air carrier Carpatair started round-trip Bucharest-Kyiv flights three times per week on June 2, a destination formerly unserviced from Kyiv.

“The Ukrainian market has an outstanding prospect for growth,” said Kazmer. “If the situation with visas gets more favorable in Ukraine, Ukrainians will indeed start flying more.”

Source: Kyiv Post

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Wednesday, June 04, 2008

State Duma Cautions Ukraine Against NATO Membership

MOSCOW, Russia -- The Russian parliament issued a statement on Wednesday saying that Ukraine's accession to NATO would unilaterally terminate a friendship treaty with Russia.

Russia's State Duma

The State Duma, the lower house of parliament, adopted the statement to bring to the attention of the country's leadership Ukraine's 'unfriendly' policies.

The treaty in question is the bilateral Treaty on Friendship, Cooperation and Partnership, signed in 1997.

"We have brought to the attention of our country's leadership that the actions of the Ukrainian authorities, in particular, the accelerated steps toward joining the NATO Membership Action Plan (MAP), are unfriendly in regard to Russia," the head of the State Duma Committee on CIS affairs, Alexei Ostrovsky, said.

At a summit in Bucharest in April, NATO members decided to postpone offering Ukraine, along with Georgia, membership of MAP, but promised to review the decision in December. The ex-Soviet republics had received strong U.S. backing for their bids.

The Kremlin threatened in February to target missiles at Ukraine if Kiev joins NATO and allows Western military facilities on its territory.

Ostrovsky earlier expressed concerns over recent attempts by the Ukrainian leadership to expel Russia's Black Sea Fleet from Sevastopol, in the Crimea, before the agreement on the base expires in 2017.

The decision by Russian lawmakers to address Russian-Ukrainian relations comes shortly after Ukraine's ex-foreign minister, Konstyantyn Gryshchenko, was appointed ambassador to Russia.

The appointment of Gryshchenko, who served in the government of the former pro-Russian premier, Viktor Yanukovych, raised hopes that relations between the two former Soviet republics would improve.

Source: RIA Novosti

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Ukraine Leader Vetoes Anti-Inflation Price Controls

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko on Tuesday vetoed a law imposing price controls on staples which the government had championed to curb record inflation.

Viktor Yushchenko is against price controls as a way to curb inflation.

Prime Minister Yulia Tymoshenko, his on-again, off-again ally, meanwhile said efforts to reduce price rises had borne fruit and predicted inflation would begin to come down this month.

Yushchenko, at odds with the prime minister on a wide range of issues, struck down a law capping mark-ups on prices of key food products including flour, bread, meat and vegetables at 15 percent.

He said the law was at variance with Ukraine's constitution and civil code, hurt competition and "violated the right of owners of goods to deal with them as they see fit. Practically all sections of the law give rise to objections."

Government officials had lobbied for the law on the grounds that high rates of inflation were linked to unjustified price increases on food, which accounts for more than 50 percent of the consumer price index (CPI) basket.

Analysts have said price rises are also linked to large social payments overseen by Tymoshenko and her government.

Yushchenko last week issued the latest in a series of appeals to the government to take steps to rein in inflation.

Year-on-year inflation hit 30.2 percent in April and cumulative price rises over the first four months of the year have reached 13.1 percent -- exceeding the government's forecast of 9.6 percent for the entire year.

No new government inflation forecast has been issued.

Tymoshenko, speaking after meeting regional officials, said she believed the month-on-month inflation figure to be issued for May would be "close to the minimum".

Her press service quoted Tymoshenko as saying that data compiled from the regions showed consumer prices had even fallen in May in six of Ukraine's 27 regions. She pledged to bring down the figure in the remaining areas.

She gave no forecast for May month-on-month inflation.

Yushchenko last week predicted the figure would slow to 1.0 percent in May from 3.1 percent in April.

The head of Ukraine's central bank forecast a figure of 1.5 to 2.0 percent and analysts surveyed by Reuters on Monday expected 2.1 percent.

Source: Guardian UK

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Tuesday, June 03, 2008

Ukraine Government In Discussions With Low-Cost German Air Carrier

KIEV, Ukraine -- The Ukrainian government is in discussions with a low-cost German air carrier on entrance into the former Soviet republic's passenger market, the Interfax news agency reported Monday.

Transport Minister Iosif Vinsky

"Within a month there will be, it seems, a decision on the German company," said Transport Minister Iosif Vinsky. He declined to give reporters the airline's name.

The transport ministry is also conducting talks with an Arab budget carrier on operations in Ukraine, according to the report.

Were the talks to succeed the German carrier would become the second low-cost foreign airline after Hungarian Wizz Air working in Ukraine's domestic passenger market.

Wizz Air is scheduled to begin operations in Ukraine in June.

Ukraine's air passenger market has grown dramatically in recent years, with an estimated 30 per cent expansion projected for 2008 alone.

The highly-regulated sector currently is dominated by a few Ukrainian airlines charging rates as much as three times higher than the ticket prices offered by budget carriers over similar distances.

Source: DPA

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Monday, June 02, 2008

Is Ukraine Returning To Kuchma-Era Repression?

KIEV, Ukraine -- In a television interview on May 20 Prime Minister Yulia Tymoshenko raised the stakes in her worsening relations with President Viktor Yushchenko by bringing up the question of impeaching the president if a continuing investigation into the Vanco contract finds proof of corruption.

Yulia Tymoshenko

Two days later the prosecutor’s office filed criminal charges against Davyd Zhvania, a key organizer of the Orange Revolution, senior leader of the Peoples Self Defense wing of the Our Ukraine-Self Defense bloc (NUNS) and chief financier of Self Defense (NS).

Tymoshenko asked all members of the orange coalition to “place their hands on the table and say that these hands had never stolen.” The issue of corruption within the orange coalition as a pretext for its undoing is nothing new.

In September 2005 the Tymoshenko government fell after presidential secretariat head Oleksandr Zinchenko accused the president’s advisers, drawn from big business, of abuse of office.

The spring 2008 crisis resembles the crisis in September 2005 in three respects.

First, the National Security and Defense Council (NRBO) was used on both occasions as a surrogate (anti-Tymoshenko) government.

Second, in both instances the presidents’ deep personal dislike of Tymoshenko was unbridled in both words and actions.

Third, economic policy, privatization, social policies, corruption and energy divided Tymoshenko and the president

The major difference between the two orange crises lies in the different constitutions in place at the time. Currently, the president has no right to remove the prime minister, and therefore the disintegration of the government and coalition will be evolutionary, not revolutionary as it was in 2005.

A more dangerous aspect to the Tymoshenko-Yushchenko rivalry rests over the return to Kuchma-era repressive tactics with one small caveat. If in the Kuchma era the regime launched a diversity of repressive policies against the opposition, today the presidential apparatus is repressing its own ostensible coalition partners.

Repressive policies have been launched along three fronts.

First, former Security Service chairman and NRBO secretary Yevhen Marchuk was appointed presidential adviser on May 19. Marchuk is suspected of being the brains behind the Mykola Melnychenko recordings in Kuchma’s office in 1999 and 2000 to force Kuchma into early retirement.

Marchuk was instrumental in coordinating parliamentary opposition to then Deputy Prime Minister Tymoshenko’s policies against energy corruption in the 2000-2001 Yushchenko government that ultimately brought the government down.

Second, criminal charges against the government and the Tymoshenko bloc (BYuT) over its privatization plans are defended, because the privatization is attacked for being politically motivated to compensate Ukrainian citizens for money lost in Soviet savings and thereby win political dividends for the BYuT. Such accusations heated up in an April 14 statement by deputy head of the presidential secretariat Ihor Pushkin, followed by a very critical counter-attack two days later by the BYuT.

In almost daily attacks, the head of the presidential secretariat Viktor Baloha has retorted by accusing Tymoshenko of being a “cowardly charlatan,” Ukraine’s “Eva Peron,” and an “uncultured pigmy” and has said that her constitutional proposals were “directed toward the introduction in Ukraine of a regime similar in nature to that of Hitler’s Germany.”

A return to the use of such Soviet era rhetoric against opponents resembles the language used in a February 2001 statement accusing the opposition, including Tymoshenko, of being “fascists.”

Third, proceedings to strip Davyd Zhvania of his Ukrainian citizenship. Ukraine does not recognize dual citizenship, and Zhvania gave up his Georgian citizenship when he became a citizen of Ukraine.

He complained of double standards, accusing First Lady Kateryna Yushchenko of maintaining her American citizenship after she received a Ukrainian passport in 2005 (she married Yushchenko in 1998).

U.S. sources, however, told that the first Lady gave up her US citizenship in autumn 2007, when the legal procedure was to give up foreign citizenship before taking Ukrainian.

Further criminal charges may be fabricated against Yuriy Lutsenko. Tymoshenko and Interior Minister Yuriy Lutsenko, head of the NS, link the charges to the presidential secretariat’s plans for replacing the orange with a grand coalition and to Lutsenko’s demand, made a week earlier, for Viktor Baloha’s replacement. “I believe that this was politically ordered by Mr. Baloha as a way of responding to objective criticism of his work,” Lutsenko said.

Lutsenko and the NS, which controls 18 of NUNS’s 72 deputies, have long been at odds with Baloha and his allies in NUNS. The pro-Baloha United Center party accuses Lutsenko’s NS of being a “pro-Tymoshenko fifth column” inside NUNS and sees the BYuT as its main opponent, rather than the Party of Regions. Lutsenko recently stated that the NS would never again run jointly in an election with Our Ukraine.

Lutsenko is at odds with Baloha and Yushchenko over the May 25 Kyiv mayoral and council election with Lutsenko, who heads the NUNS bloc in the elections, supporting the Tymoshenko and Vitaliy Klichko blocs in their opposition to Mayor Leonid Chernovetsky.

Meanwhile, Baloha and Yushchenko have switched their support to the mayor after NUNS refused to agree to Yushchenko’s demand that it form an alliance with Chernovetsky.

Yushchenko reportedly told NUNS of his hope that the Kyiv elections would become “Tymoshenko’s Stalingrad.”

Another aspect to the Zhvania case relates to Yushchenko’s poisoning in September 2004. Zhvania was the only Orange Revolution leader, other than Yushchenko, present at the dinner where the poison was allegedly administered.

Ukrainian media with links to the presidential secretariat have recently published unsubstantiated rumors that Zhvania was a suspect in the poisoning.

Repression instituted by the president through the NRBO and presidential secretariat is seen as a return to tactics used in the Kuchma era.

Our Ukraine political analyst Ihor Zhdanov wrote, “In recent times the law enforcement structures have been actively used as an instrument of political struggle similar to that used under former President Leonid Kuchma.”

These developments illustrate Yushchenko’s and Tymoshenko’s divergent views about how to relate to the Kuchma era.

Tymoshenko was astounded when the president appointed Kuchma a member of the council of advisers of Kyiv University this month.

On the day her faction blocked the president’s annual address to parliament, Tymoshenko said, “Today’s authorities, who came to high positions after the Maidan [Independence Square, known for mass protests during the Orange Revolution], are in no way better than those we struggled against--the Kuchma authorities.”

Tymoshenko, whose government has been blocked by a two-month parliamentary blockade by the Party of Regions and daily interference by the president and Baloha, said that reforms since the Orange Revolution have been simply “empty chatter.”

The Tymoshenko-Yushchenko rivalry is becoming even more intense.

A presidential secretariat official said that, “Your Yulia has created bedlam in the last three years, and it’s about time we finished once and for all with her.”

Comments such as this cast suspicion on whether Yushchenko is now convinced that the only way he can win a second term is by destroying Tymoshenko, as Kuchma attempted to do in 1991 and 1994.

Source: Eurasia Daily Monitor

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Seven-Time Gold Medal Gymnast Shaklin Dead At 76

KIEV, Ukraine -- Olympic gymnastics champion Boris Shaklin, the only athlete to win four gold medals at the Rome Olympics, has died. He was 76.

Boris Shaklin at the 1964 Tokyo Olympics.

His death Friday of cardiac arrest was announced by the International Gymnastics Federation.

"With the loss of Boris Shaklin, a legend disappears; I would go as far as to say that a glorious chapter in the history of international gymnastics has come to a close," FIG president Bruno Grandi said in a statement. "He was an icon as an athlete."

Shaklin, nicknamed the "Mask of Iron," won 13 Olympic medals -- seven gold -- as part of the Soviet gymnastics squads that battled Japan in the 1950s and 1960s in one of gymnastics' great rivalries. He also was the world champion in 1958.

At the Melbourne Olympics in 1956, Shaklin helped the Soviets edge Japan for the team gold and won a second gold on pommel horse.

Four years later in Rome, Japan won the first of what would be five straight team golds, but it was Shaklin who was the Games' biggest star.

He won the all-around title, and three other golds on parallel bars, vault and pommel horse. He won a silver in the team competition and another on rings, and added a bronze on high bar.

His seven medals in Rome tie him for second-most by an athlete at a single Games.

Shaklin won another gold medal, on high bar, at the 1964 Games, as well as silvers in the all-around and team competition and a bronze on rings.

Shaklin retired in 1966, and went on to coach in his native Ukraine and serve as an international judge. He was a member of the FIG's technical committee, which sets the rules, from 1968 to 1992.

In 2002, he was inducted into the International Gymnastics Hall of Fame in 2002.

Source: AP

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Bad Business

KIEV, Ukraine -- In her remarks to the European Bank for Reconstruction and Development’s Kyiv meeting, Prime Minister Yulia Tymoshenko told investors and bankers she would advocate for transparency, free markets and economic stability.

PM Yulia Tymoshenko

Her second term as prime minister isn’t especially convincing.

It took Tymoshenko four months into her post as prime minister to cancel grain export quotas. Or she claimed to cancel them, but instead she merely relaxed them.

Some market observers cited Ukraine’s May 16 accession to the World Trade Organization as the main factor in her decision.

Others cited influential poultry farmers in the Tymoshenko Bloc. Whatever the motivation, it probably had little to do with a commitment to free markets.

Meanwhile, her Cabinet’s decision to cancel the government's licensing and busines contract with Vanco Energy Co. sent more shutters throughout the Western business community.

Vanco executives found out about Tymoshenko’s cancellation only through media reports, and she made no attempts to renegotiate the deal before her public declaration.

If that didn't intimidate the businessmen enough, Tymoshenko then performed a professional smear job against the Houston-based firm, claiming it was planning to punt its contract to Gazprom and casting doubt on its legitimacy by stating it was registered to four college-aged students offshore.

While Tymoshenko and her team say nice things to Western businessmen, their actions don’t always reflect that.

Unfortunately, the prime minister who promised stability and respect for private property is seemingly pursuing policies on behalf of special interests, perhaps even her own.

Rather than misleading businessmen on export quotas and suddenly terminating international energy contracts, Tymoshenko and her team ought to treat foreign investors with more respect and offer clearer communication.

That’s regardless of whether the Vanco deal was good for Ukraine or not.

Source: Kyiv Post

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Sunday, June 01, 2008

Putin: Russia Against NATO Expansion

MOSCOW, Russia -- Russia opposes in principle NATO's expansion toward its borders, potentially admitting Ukraine and Georgia to its ranks, Prime Minister Vladimir Putin says.

Prime Minister Vladimir Putin

The former Russian president said while both Ukraine and Georgia were denied admission to NATO's Membership Plan in April, Russia is against any expansion by the international group in general, RIA Novosti said Saturday.

We are against NATO's enlargement on the whole, in principle, Putin said.

NATO was originally created to oppose the Soviet Union, so its global expansion in unnecessary given the union's collapse long ago, Putin said.

There is no Soviet Union, and there is no such a threat anymore but this organization still exists, the prime minister said.

The question arises: Against whom do you build friendships?

RIA Novosti said Putin was concerned that if Georgia and Ukraine are eventually allowed into NATO, missile systems would soon appear near Russia's borders.

We are concerned that if these countries become part of NATO today, tomorrow we will see offensive missile systems deployed on their territory which will pose a serious threat to us, Putin said.

Source: United Press International

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