Published in NRCU

Y. Tymoshenko and C. Pazarbasioglu discussed the results obtained by an International Monetary Fund technical mission, which visited Ukraine last week.

These results will serve as a basis for decisions that will be taken in the coming days. The first stage of work by the IMF technical mission in Ukraine started on June 23. Talks on a second review of the IMF programme with Ukraine under the stand-by arrangement were expected to start on June 30 when Ms Pazarbasioglu will join the fund's mission in Kyiv.

Published in NRCU

It had been agreed during the visit of an IMF mission to Ukraine on June 23 that Ukraine will review its program with the fund, and that in July, it may receive the third tranche of an IMF loan, Prime Minister Yulia Tymoshenko has said during her visit to Lviv.

Tymoshenko emphasized that Ukraine will have a chance to increase the amount of funds transferred to the budget that will make this budget more stable and stabilize its expenses. In November 2008, the IMF approved a two-year loan of USD 16.4 billion to Ukraine and allocated USD 4.5 billion as the first tranche of this loan. On May 12, 2009, Ukraine received USD 2.8 billion as the second tranche of the fund's loan. Part of the second tranche worth USD 1.5 billion was sent to Ukraine's state budget to finance the government's foreign debts. It was initially planned that the third tranche would total USD 3.2 billion, and the fourth one USD 3.8 billion. Acting Finance Minister Ihor Umansky said earlier that Ukraine was planning to ask the International Monetary Fund to increase the amount of the third tranche to $3.8 billion to finance the country's budget deficit.

Published in Inform issue #116
See the full issue here.

The European Commission President José Manuel Barroso has warned EU states to brace themselves for another gas supply crisis if Ukraine is unable to finance the purchase of sufficient natural gas from Russia’s state-run gas firm, Gazprom, to replenish its underground stores.

Mr Barroso’s warning followed Prime Minister Yulia Tymoshenko’s meeting last week in Kyiv with Frank-Walter Steinmeier, the Minister of Foreign Affairs for Germany and his Polish counterpart Radoslaw Sikorski. Top of their agenda was how the EU may be able to assist Ukraine to maintain necessary levels of gas in its underground storage facilities in Western Ukraine. This is vital as Ukraine is looking to raise around $4 billion to purchase gas for storage, so as to avoid any supply disruption to EU countries in the winter months.

The day before the meeting with the foreign ministers, Alexander Ananenkov, Deputy Chief Executive of Gazprom, told reporters, "Ukraine isn’t pumping gas into its gas storage facilities in due amounts.”

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Published in Kyiv Post

Ukrainian Prime Minister Yulia Tymoshenko on Friday met with U.S. delegates led by U.S. Special Envoy for Eurasian Energy Richard Morningstar.

During the meeting, the sides discussed issues related to energy security and prospects for the implementation of bilateral energy projects, the Ukrainian government's press service reported.

In particular, Tymoshenko stressed the importance of developing cooperation between Ukraine and the Untied States in the energy sector.

Government Press Service

Prime Minister of Ukraine Yulia Tymoshenko has held a meeting with Ministers of Foreign Affairs Frank-Walter Steinmeier of Germany and Radosław Sikorski of Poland.

The Head of the Ukrainian Government was thankful for the visit and noted it was an opportunity to dwell on the crisis phenomena in Ukraine and in the world with representatives of two friendly countries.

Yulia Tymoshenko emphasized during the recent Ukraine-EU Cooperation Council sitting in Luxembourg an agenda on Ukraine-EU Association had been approved. The Premier stressed that the Association Agreement is planned to be signed by the end of year. According to her, the agreement can solve numerous issues including creation of a free trade area between Ukraine and the EU.

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Government Press Office

Ukraine’s cooperation with the International Monetary Fund has proven successful in the rendering of financial aid. The Prime Minister of Ukraine Yulia Tymoshenko announced during her meeting with Ministers of Foreign Affairs of Germany and Poland. “Ukraine has already obtained two tranches while the cooperation program was reconsidered only once,” the Premier underlined.

The Head of Government explained on June 24 an IMF mission visit was due to further the dialog and reconsider implementation of the joint program. “We are expecting for the following tranche in the end of July,” Yulia Tymoshenko said and added the sum of tranche to amount USD 3.8 billion.

Government Press Office

In the course of her official visit to Luxembourg, Prime Minister of Ukraine Yulia Tymoshenko held a series of bilateral meetings.

Yulia Tymoshenko met with Secretary General of the European Council, High Representative for the Common Foreign and Security Policy Javier Solana and also with Grand-Duke Henri of Luxembourg.

Furthermore, Tymoshenko considered issues of bilateral Ukraine-Luxembourg cooperation with the Prime Minister, Minister of State, Finance Minister of Luxembourg Jean-Claude Juncker.

Published in Inform issue #115
See the full issue here.

The Ukrainian government has taken considered remedial action to safeguard the nation’s banking system with a UAH 9.5 billion ($1.26 billion) payment to nationalise three banks. Another two banks look likely to follow once they have completed talks to restructure their existing debt.

Speaking after a meeting of the Cabinet of Ministers last Wednesday, Prime Minister Yulia Tymoshenko announced that the government would purchase a 84.21 percent stake in Ukraine’s 17th largest bank, Ukrgazbank, for $420 million and a 99.97 percent stake in Rodovid bank, the 20th largest, for $370 million. A further $470 million was earmarked for a 99.3 percent stake in the Bank of Kyiv, Ukraine’s 40th largest bank.

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Sources: Ukrinform & Station

The Ukrainian Prime Minister Yulia Tymoshenko will visit Luxembourg tomorrow to attend a meeting of the EU-Ukraine Cooperation Council hosted by Jean-Claude Junker.

European Commission officials and the Ukrainian premier are planning to discuss the political and economic situation in the country. They will also focus on the development of bilateral relations and visa issues.

Yulia Tymoshenko will also be received in audience by His Royal Highness Grand Duke at the Grand Ducal Palace.

Published by Government Press Office

The Government of Ukraine and the European Bank for Reconstruction and Development have signed a Memorandum of mutual understanding between Ukraine and the EBRD concerning measures to ensure the sustainable development of the energy sector.

From the Government of Ukraine the document was signed by Vice Prime Minister for European and International Integration Hryhoriy Nemyria, from the EBRD – EBRD Director for Ukraine André Küüsvek. The signing ceremony was held with participation of the Prime Minister of Ukraine Yulia Tymoshenko.

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Published in Inform issue #114
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Prime Minister Yulia Tymoshenko has confirmed that she will run in Ukraine’s forthcoming presidential election. She also used her speech, which was broadcast live on TV on Sunday evening, to accuse Viktor Yanukovych of sabotaging talks that had the dual purpose of fighting the recession and ending political conflict by creating a broad coalition with the country’s four leading political blocs.

“I will run for the presidential election and I will win. I believe that Ukrainian politics can become honest and clean, power should be strong and not corrupt. I believe and I know Ukraine will become the country you imagined in your dreams, European and beautiful,” said Ms Tymoshenko.

The premier was critical of Viktor Yanukovych, leader of the Party of Regions, for sabotaging the talks aimed at forming an anti-crisis coalition with the Bloc of Yulia Tymoshenko (BYuT), Lytvyn Bloc and the Our Ukraine-People’s Self-Defence Bloc.

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Published in The Financial

The European Bank for Reconstruction and Development delegation arrived in Ukraine on June 10 to meet executives, Ukrainian News has learned from the EBRD press secretary Anton Usov.

In his words, the main objective of the visit is to assess Ukraine 's macroeconomic and political situation, as well as the state of particular sectors of the country's economy.

Director Terence Brown from the EBRD Board of Directors heads the delegation, who are planned to meet Prime Minister Yulia Tymoshenko, government members, parliament leadership, representatives of major Ukrainian banks and companies in Kyiv, Lviv and Ivano-Frankivsk.

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iBYuT

Ukrainian Prime Minister Yulia Tymoshenko says she will seek the presidency next January, though the actual date of the election has not been set.

Tymoshenko announced her presidential bid on television Sunday night. Tymoshenko stated that under her leadership the government would be strong and would reject all forms of corruption.

“I intend to be victorious,” she stated.

Published on UNIAN

Prime Minister of Ukraine Yulia Tymoshenko claims that economic problems, which were caused by the crisis, will not hamper Eastern European countries, including Ukraine, to follow the path of freedom and democracy. She stated this today in Krakow, during celebrations on occasion of the 20th anniversary of the fall of communist regime in Poland.

“The difficulties, which we are currently living through, are fading away compared to the challenges that were met to overthrow the tyranny. We will not allow these problems, the today’s crisis, the current difficulties, to put us out of the course towards freedom, democracy, and welfare”, Yulia Tymoshenko said.

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Sources: Kyiv Post / Interfax

Ukrainian Prime Minister Yulia Tymoshenko will on Thursday visit Poland to meet with Polish Premier Donald Tusk.

Tymoshenko will also attend events celebrating the 20th anniversary of the collapse of the Communist dictatorships in Eastern Europe.

During the trip, Tymoshenko is also to meet with the leaders of other European states, in particular, German Chancellor Angela Merkel.

Published in Inform issue #113
See the full issue here.

The adage that “energy is politics” is the inescapable conclusion one comes to when deciphering the recent barrage of accusations from Russia – statements that besmirch Ukraine’s reputation as a stable energy conduit to Europe.

Prime amongst these is that another gas crisis between Russia and Ukraine is looming. But is this really the case? Or are we witnessing something far more sinister?

Everyone knows that Ukraine’s economy is in the grip of a severe recession. But on 23 May Russian Prime Minister Vladimir Putin appeared to add fuel to the fire when he said, "If things are that bad in the financial sphere... We could conclude that we could be on the brink of a new gas crisis.”

Adopting a similar tone, Russian President Dmitry Medvedev, speaking ahead of last month’s European Union-Russia summit, expressed concern that Ukraine was not able to afford the $4 billion needed to buy 19.5 billion cubic metres of gas to fill storage reservoirs ahead of the winter season. Russia’s head of state then applied pressure on the EU by suggesting it provide financial assistance to Ukraine.

"We have doubts about the solvency of Ukraine," said President Medvedev. "We are ready to help Ukraine, but we would like to see much of this work taken up by the European Union, that is, by those who are interested in the reliability and security of energy cooperation."

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