Published in Inform issue #87
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Many movie buffs will recall Groundhog Day in which a hapless Bill Murray has to relive a day that repeats itself again and again. Now Groundhog Day has come to Ukraine. Or that is what it feels like as the country’s political parties limber up for what will be the third parliamentary election in as many years. But is another election what the people really want? More importantly, is it what the nation really needs and what would it achieve?

Following the collapse of the democratic coalition, Ukraine’s political parties have begun a round of negotiations in the hope of agreeing on a coalition capable of governing the country and staving off another parliamentary election.

Limited Options
The different permutations of who might join who is fairly limited and in most instances the negotiation paths are well trodden. “It’s hardly a Rubik's Cube,” remarked a British businessman based in Kyiv, “the options for all the factions are fairly limited.”

The Bloc of Yulia Tymoshenko (BYuT) has made its position abundantly clear by calling for a re-constituted democratic coalition with the pro-presidential Our Ukraine - People’s Self-Defence (OU-PSD) bloc and Lytvyn bloc. It hopes the latter will be a stabilising influence and breathe new life into any democratic union. This centrist bloc, which represents the smallest faction in parliament, has 20 seats and is led by a former Verkhovna Rada (parliament) chairman, Volodymyr Lytvyn.

Last week Prime Minister Yulia Tymoshenko and Mr Lytvyn announced that they had concluded a coalition agreement and appealed for the democratic forces to unite. “This doesn’t require any talks – just write a note and return,” said the premier.

The re-establishment of a governing democratic coalition would be welcomed by at least half the lawmakers in the president’s bloc. In the vote to withdraw OU-PSD from the democratic coalition (on 3 September), the People’s Self-Defence Party, People’s Rukh Party, European Party and Party of the Defenders of the Fatherland, either voted against the president or abstained.

However, the chasm that separates BYuT from the president and his closest advisers seems only to have widened. Instead of advocating constructive dialogue, President Viktor Yushchenko took time out on his US visit to attack his former coalition partner – a move that reinforces the image of squabbling politicians unworthy of EU and Euro-Atlantic integration.

“Political groups have been trying to destabilise the situation and to lead the country to early presidential, parliamentary and local elections,” said President Yushchenko at a Council on Foreign Relations meeting in New York.

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Published in Inform issue #86
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Prime Minister Yulia Tymoshenko has vowed to remain in office, reminding people that it was not her faction that quit the governing coalition. Yuriy Lutsenko, Interior Minister and leader of the People’s Self-Defence faction within the president’s bloc, has decided to do the same, while the Chairman of the Verkhovna Rada (parliament), Arseniy Yatsenyuk, followed rules governing his position and resigned.

Ms Tymoshenko confirmed her intent to stay on as prime minister saying, “We support stability in the country at a very high level, and will do everything possible for the government to become the single bulwark for peace and balance, stability and constructive work."

Meanwhile, Mr Lutsenko said, “I am not about to send in my resignation.” He added that the break-up of the coalition was provoked by the secretariat of the president, and that his faction opposed the withdrawal of the Our Ukraine - People’s Self-Defence (OU-PSD) bloc from the governing coalition.

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Published in Inform issue #85
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The clock is now ticking for Ukraine’s parliamentary factions to form a new coalition government following President Viktor Yushchenko’s official confirmation yesterday that his party has quit the democratic coalition.

The Chairman of Ukraine’s Verkhovna Rada (parliament), Arseniy Yatsenyuk, described the collapse of the coalition as "long expected, but extremely sad."

The event that triggered the president to withdraw his Our Ukraine-People’s Self-Defence (OU-PSD) bloc from the 9-month old coalition, was when lawmakers from the Bloc of Yulia Tymoshenko (BYuT) voted with the Opposition, on 2 September, to pass laws that prevent the president from using decrees (and resolutions from the National Security Defence Council) to thwart the work of parliament. For months the president has paralysed the government, blocking its privatisation legislation, antiinflation plans and anti-corruption measures. During this time, the Chief of Staff of his Secretariat, Viktor Baloha, has waged a tireless vendetta aimed at discrediting the premier ahead of the 2010 presidential elections (see page 2 ‘Poison Investigation Takes Sinister Turn’).

The events of 2 September also initiated a clear process for presidential impeachment – a right enjoyed by every democratic parliamentary republic. The president saw this as a personal attack and the next day served notice on the coalition. Not everyone in his bloc agreed with him. Interior Minister Yuriy Lutsenko (leader of the People’s Self-Defence faction within OU-PSD), former foreign affairs minister Borys Tasrasyuk, and former defence minister Anatoliy Hrytsenko voted with others to stay in the coalition. But their protest was in vain as yesterday the coalition finally collapsed.

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Published in UNIAN

A top aide to Ukraine`s Prime Minister Yulia Tymoshenko has ruled out forming a government with Viktor Yanukovych`s pro-Russian opposition bloc, according to BBC.

Vice-Prime Minister Hrihoriy Nemyria was speaking to the BBC a day after the ruling pro-Western coalition collapsed.

He said the priority was to re-establish a coalition with President Viktor Yushchenko`s Our Ukraine bloc.

Ms Tymoshenko and Mr Yushchenko were allies in the pro-Western Orange Revolution of 2004.

President Yushchenko pulled out of the ruling coalition after Yulia Tymoshenko`s bloc sided with the opposition to pass several laws that Mr Yushchenko saw as a threat to his presidential powers.

Snap election?

Asked whether Ms Tymoshenko was actively considering forming a government with Viktor Yanukovych, Mr Nemyria told the BBC`s Hardtalk TV programme: "The answer is no".

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Published by Interfax

Polish Prime Minister Donald Tusk will visit Ukraine on September 19, Ukrainian Vice Premier Hryhoriy Nemyria announced on Tuesday.

"On Friday, Prime Minister Donald Tusk will come to Ukraine. Tusk will open a meeting of the joint Ukrainian-Polish government committee for preparations for the Euro 2012 European football championship finals," he said at a meeting of the Verkhovna Rada committee for cooperation between Ukraine and the European Union.

Nemyria said the Euro 2012 project was not just a sports event for Ukraine, but also a project facilitating Ukraine's integration with Europe.

Published in UNIAN

The parties signed a protocol on introduction of amendments to the agreement on promotion and mutual protection of investments.

Ms Tymoshenko said that she has high hopes for the Czech presidency of the European Union in 2009. "It is very important for us because we know that your country is a friend of Ukraine," she stated, adding that she expects real steps on the signing of an agreement on the creation of a free trade area between Ukraine and the European Union and an agreement on political association with the Union. Mr Topolanek, in turn, confirmed his country's plans to pay particular attention to Ukraine. He noted that issues of the balanced policy in the basins of the Mediterranean and Black Seas would be put on the agenda of the European Union.

Published in UNIAN

Prime Minister of Ukraine Yulia Tymoshenko believes Ukraine will solve “the difficult situation” in the Verkhovna Rada, and a mutual understanding will be found.

According to an UNIAN correspondent, Prime Minister of Ukraine Yulia Tymoshenko claimed this in the course of presentation of the draft state buget-209 in Kyiv Tuesday.

“I believe we can find a mutual understanding in parliament of Ukraine and create a model that will stop squabbles in Ukraine, and a normal, stable, our Ukrainian life will begin”, she said.

BYuT

Today Prime Minister of Ukraine Yulia Tymoshenko held a meeting with US Deputy Secretary of State Daniel Fried.

The sides have discussed issues on bilateral American-Ukrainian cooperation, Ukraine’s EuroAtlantic integration and issues on national security.

"Ukraine's actions serve a part of the European Union joint efforts to settle the conflict in South Caucasus," Mr Nemyria said.

According to the Vice Premier, Ukraine's position on preservation of Georgia's territorial integrity and sovereignty, as well as the need to avoid unreasoned unilateral actions during settlement of the conflict, has fully meet the official position of the EU. At the meeting, the parties discussed the progress in implementing a peaceful plan of the conflict settlement. The OSCE Mission to Georgia Head informed Mr Nemyria of the situation in the regions adjacent to South Ossetia and Abkhazia. For his part, the Ukrainian official dwelled on the need for further stage of the peaceful conflict settlement, namely withdrawal of the Russian peacekeeping forces from 5 observation points on the line from Poti to Senaki, as well as full withdrawal of the peacekeepers from the area close to South Ossetia and Abkhazia to the line of the beginning of the combat operations. "This will allow to fully use humanitarian corridors, which is important in view of the situation in distant areas," he stressed.

Published in Business Ukraine
By: Peter Dickson

Ukraine’s government prepared to sit down with EU leaders for their crucial summit meeting this week against a backdrop of political collapse in Kyiv and international impotence in the face of a resurgent Russia. The man faced with the considerable task of keeping Ukraine’s EU push on track is Hryhoriy Nemyria, Deputy Prime Minister for European Integration and a key member of PM Yulia Tymoshenko’s inner circle. Regarded by many to be one of the most influential members of the Tymoshenko cabinet, Mr. Nemyria’s appointment to lead the country’s EU integration efforts last December was hailed as a demonstration of the new administration’s commitment to prioritising Euro-Atlantic integration.

Previous administrations had appointed more junior officials to co-ordinate integration policy, but in practice these efforts had been at best piecemeal, reflecting the cautious and often contradictory policy towards the EU often adopted in the past. By uniting all integration efforts into a single agency with access to the very top of government, the Tymoshenko administration claimed it would be introduce a whole new dynamic into the process.

Mr. Nemyria’s efforts were initially rewarded by success in achieving WTO membership and solid progress in talks over a new and improved free trade zone with the EU, so it might in other circumstances have been safe to assume that security concerns sparked by Russia’s invasion of Georgia would be enough to encourage previously hesitant EU leaders to embrace Ukraine. However, thanks partly to the escalating political turmoil in Kyiv, this is now looking increasingly unlikely.

Orange civil war threatens to derail integration push

The recent conflict in Georgia certainly did much to focus attention on Ukraine’s ongoing struggle to emerge from geopolitical limbo, but despite the apparent opportunities for fast-track integration presented by Russia’s war, the internecine conflict now raging within Ukraine’s own Orange political camp could yet serve to bolster the opponents of the country’s EU perspective. “Not even the smartest media campaign could hide the strategic vulnerability coming from the duplication of powers in Ukraine,” Mr. Nemyria concedes. “How can the country be credibly received when the President’s aides are accusing the Prime Minister of treason and the security services are used as an instrument to harass opponents? These are precisely the instruments of a managed democracy. If we continue in this direction we face a huge step backwards away from everything that the Orange Revolution was about. In that situation it will be difficult for Ukraine to utilise those opportunities which currently exist for deeper integration into the EU itself.”

EU changes its energy priorities

Mr. Nemyria accepts that last week’s lukewarm response from EU leaders to Russian policy over Georgia’s breakaway regions was a reflection of what he calls ‘The mainstream view,” within the bloc, but he remains convinced that on a broader scale the EU’s leaders are now viewing the strategic interests from a radically different perspective in light of the region’s new geopolitical realities. “This conflict has opened the eyes of the EU to the reality of what it needs to do and how much it is going to cost to stabilise the neighbourhood,” he states, arguing that the Georgian campaign made a deep impression on EU thinking towards energy policy. This has led to calls for a unified bargaining position and diversification in order to lessen its dependence on Russian supplies, something which Mr. Nemyria’s boss PM Tymoshenko has repeatedly advocated. “Before the Russia – Georgia conflict it was right to say “No security without energy.” Now it is equally correct to say, “No energy without security,”” he says. ”While I was in Georgia I saw the damage done to their pipeline by Russian bombing. It shows how vulnerable and fragile the energy supply routes from Eurasia to the EU are. This recognition that there can be no energy without security has led the EU to place a specific emphasis on energy diversification.”

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Published in Inform issue #84
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The timing of President Viktor Yushchenko’s announcement that his bloc will quit the democratic coalition could not have been worse. It comes on the eve of Tuesday’s 2008 Ukraine-EU Summit, as EU officials and foreign ministers assemble in the French spa town of Evian.

Although the president stressed that Ukraine’s course towards European and Euro-Atlantic integration was unchanged, the recent split in the democratic coalition has eroded the confidence of many EU officials already nervous of further enlargement.

When France’s foreign minister Bernard Kouchner was asked if Ukraine could become an EU candidate, his downbeat response was, “If you have no Lisbon you have no enlargement."

Indeed, EU officials have ruled out using the summit to offer Ukraine official-candidate status. Realistically, the best Ukraine can hope for is a sop to closer ties. According to EurActiv, the “internal crisis has already led to a downgrading of the language of the draft declaration ...according to sources, no mention is made of future EU membership in the fresh draft.”

It is likely that Ukraine will be granted some concessions such as talks on easing visa requirements and perhaps an Association Agreement with wording that leaves the door open to future membership. However this falls well short of an explicit statement referencing a “European perspective,” which would have indicated a willingness to put Ukraine on a track towards eventual EU membership.

This will be a disappointment to EU members such as Britain, Czech Republic, Poland, Sweden and the Baltic states, that have pushed for a more definitive declaration of intent.

Surprisingly, neither Prime Minister Yulia Tymoshenko nor Hryhoriy Nemyria, Deputy Prime Minister responsible for European integration, will be present in Evian. The president has prevented them for attending.

Mr Nemyria said, “Ukraine has strategic value to the EU, not least because it provides the opportunity to create a stable democratic zone on its eastern borders.”

The former Soviet republic’s strategic significance is also underpinned by the fact that about a third of the EU’s natural gas imports transit via Ukraine’s pipeline network.

Furthermore, the EU imports agricultural products, chemicals and machinery from Ukraine. Steel and textiles have enormous potential for the 27-member nation block, but are limited by bilateral agreements. While all this may sound impressive, and notwithstanding that EU imports doubled between 2003 and 2007, Ukraine is still a minnow when it comes to trade with the bloc. It is the EU’s 16th most important trading partner, accounting for less than 1 percent of its imports and 1.8 percent of its exports.

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Published by UNIAN

Prime Minister of Ukraine Yulia Tymoshenko and Vice President of the United States Richard Cheney have met in Kyiv. During the meeting, the Ukrainian and American delegations discussed issues of regional security, stability in the region and in Ukraine, and diversification of energy sources.

UNIAN has learnt this from Prime Minister's Press Secretary Maryna Soroka.

According to her, at the beginning of the meeting, Yulia Tymoshenko thanked Richard Cheney for support offered by the United States to Ukraine in developing democracy.

Besides, the Prime Minister of Ukraine informed the U.S. Vice President about results of the Ukrainian government activities.
"The democratic government and democratic parliament have secured one of the highest showings of economic growth over the last several years – 6.5%", Yulia Tymoshenko pointed out.

The meeting of Yulia Tymoshenko and Richard Cheney lasted for 40 minutes instead of planned 20.

BYuT

Prime Minister Yulia Tymoshenko expects that changes to the Constitution will be approved prior to the next presidential elections in Ukraine.
 
This statement was in response to a journalist’s question on whether she plans to run for president in the next presidential elections.
 
“I think that there will be changes to the Constitutions before the presidential elections that will give the country a strong parliamentary form of government. And I believe that only such a form of democracy can give rise to stability, predictability, unity and most importantly – absolute absence of crisis,” said Tymoshenko.
 
Prior to this, during a television appeal on Wednesday evening on the political situation, Tymoshenko said that in the nearest future she intends to propose “constitutions changes that are absolutely well thought over and necessary for Ukraine.” 
 
“I believe that new changes to the Constitution will consolidate parliament and all sound forces. I think the politicum has worn out the country with snap elections. We need to work and not throw the country into crisis every time,” stated the Prime Minister.

Published in UNIAN

Prime Minister of Ukraine Yulia Tymoshenko held a telephone conversation today with Secretary General of the Council of Ministers of the EU – EU High Representative for the Common Foreign and Security Policy Javier Solana, according to the government`s press-office.

The conversation concerned issues on regional security in the context of the military conflict between Russia and Georgia and Ukraine’s European integration.

The sides agreed that preserving internal political stability is necessary condition for Ukraine’s approaching the EU.

Published by NRCU

Vice Premier Hryhoriy Nemyria stated this at a press conference today, which was dedicated to the opening of the 8th Council of Europe Conference of Ministers responsible for migration affairs in Kyiv.

He said that the question of Ukraine's preparations for the finals of the Euro 2012 European Football Championship concerns investment, legal provision and coordination of work with Poland. Mr Nemyria noted that the abovementioned issues would be discussed during a joint meeting between Ukrainian and Polish working groups on Euro 2012 preparations in mid September.

U.S. Vice President Dick Cheney has arrived in Ukraine, as part of a tour of several ex-Soviet republics amid an escalating standoff with Russia over the war in Georgia.

In Kyiv, Cheney is slated to meet with President Viktor Yushchenko and Prime Minister Yulia Tymoshenko.

REGNUM

Bloc of Yulia Tymoshenko sees no options for a parliamentary coalition except with the bloc of OU-PSD. According to REGNUM correspondent in Kiev, it was announced today, September 3rd by Tymoshenko's Bloc.

“Bloc of Yulia Tymoshenko (BYuT) does not see any other coalition except for the democratic one. Effective voting on issues that are the priority for the state is not a betrayal,” this was stated in the announcement. Moreover, BYuT's MP Andrey Shkil told Ukrainian TV that BYT wasn't going to initiate President Viktor Yushchenko's impeachment or create a coalition with the Party of Regions. ''It is now being tried how strong the coalition is. To overcome the crisis within the coalition, negotiations should be undertaken", Shkil said.

BYuT

On Thursday, September 4, Prime Minister Yulia Tymoshenko will take part in the opening of the 8th Council of Europe Conference of Ministers Responsible for Migration Affairs.

The theme of the conference, which will take place in Kyiv on 4-5 September 2008, is 'Economic migration, social cohesion and development: towards an integrated approach'. Tymoshenko is expected to speak during the opening session.

Ministers from the member states of the Council of Europe competent for migration affairs, integration of migrants and community relations will participate in the conference.

Ministers from several non-member states having observer status with the Council of Europe (Australia, Canada, Holy See, Japan, Mexico and USA) or involved in cooperation with member states on the themes of the conference (Afghanistan, Bangladesh, Cape Verde, China, Congo, India, Iraq, Kazakhstan, Kyrgyzstan, Lebanon, Liberia, Libya, Nigeria, Pakistan, Morocco, Senegal, Tajikistan, Turkmenistan, Vietnam, Uzbekistan) have also been invited to take part together with the European Commission, the Council of the European Union and other international governmental and non-governmental organizations.

The conference will provide an opportunity for ministers to debate and agree on policy solutions relevant to the conditions prevailing in their countries and stemming from the increasing flows of economic migrants, in particular, East to West and within the Eastern region of Europe.

The conference will examine the link between economic migration and development from the perspective of both countries of origin and destination as well as the impact of emigration on development and social cohesion.

Published in Inform issue #83
See the full issue here.

Prime Minister Yulia Tymoshenko has pledged to increase funding for Ukraine’s coal mining industry and increase the salaries and benefits for miners and their families. Attending a ceremony to open a new mine shaft at the Rental enterprise coal mine in the Luhansk region, she said that it was her intention to devote the first plenary session of the Verkhovna Rada to adopt amendments to the State Budget that would secure extra funding for the coal mining sector. An additional UAH 3.1 billion has been earmarked for improving productivity with another UAH 485 million for salaries and social benefits.

Remarking on Miner’s day – the professional holiday to honour Ukraine’s miners – Ms Tymoshenko said, “If we really want to celebrate Miner’s Day then we should not “demolish” these laws but adopt them on Wednesday and sign them into law.”

The government is keen to overhaul Ukraine’s coal mines as an essential part of its diversification plan to lessen its dependence on imported natural gas. Recognising that some of it antiquated and dangerous mines need to be closed, Coal Industry Minister Viktor Poltavets said that he expects 16-18 mine to close this year. At the same time he announced plans to create three new mines in the Lviv region (Chervonohradska), Donetsk region (Krasnolymanska-Hlyboka) and Luhansk region (Novosvitlivska).

Increased Production

Ukraine expects to increase its coal production by 4 million tonnes this year. According to Prime Minister Tymoshenko “in the first 8 months of the year we increased coal mined by 2.5 million tonnes.”

This improvement in performance has come as a result of increased investment in the sector. However huge levels of domestic and foreign direct investment are needed if Ukraine is to raise the standard of its coal mines to Western European levels.

President Viktor Yushchenko appeared to endorse the government’s position, saying that private investors have a key role to play in helping Ukraine to reform the sector. Speaking in Krasnoarmiysk, in the Donetsk region, he said, “The Ukrainian government and the Coal Ministry must do everything to improve today what we have been speaking about for years. This is what is currently necessary for miners, the coal industry and the state.”

Ms Tymoshenko stated that aside from state and private investment in the mines, there was a need to recognise the strategic contribution made by miners in helping Ukraine to meet its energy requirements. The premier advocates plans to increase the salaries of miners by up to 30 percent, improve pensions and hold a parliamentary discussion on the provision of free education and entrance to educational establishments for miners’ children.

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Published in UNIAN

Prime Minister Yulia Tymoshenko held a telephone conversation with Prime Minister of Poland Donald Tusk, according to the government`s press-office.

In the course of the conversation issues on regional security and consequences of the military conflict in Southern Caucasia as well as Ukraine’s European and Euro-Atlantic integration have been discussed.

Donald Tusk informed the Prime Minister of Ukraine on preparation for a special summit of the European Union, slated for Monday, 1 September in Brussels.

Yulia Tymoshenko expressed support of the Plan on regulating the conflict endorsed by the European Union and emphasized the necessity of its unconditional implementation by all sides of the conflict. The Prime Minister of Ukraine confirmed Ukraine’s fundamental stand on supporting Georgia’s sovereignty and territorial integrity.

The sides expressed consent on importance of avoiding escalation and preventing one-sided steps which can provoke enlargement of security vacuum in the region.

Yulia Tymoshenko backed up the Polish-Swedish initiatives aimed at deep Ukraine’s integration to the EU. “Ukraine has all opportunities for further integration to the European security and defense policy, in particular, including participation in settling crises, peacekeeping and humanitarian tasks,” the PM of Ukraine stressed.

The Prime Minister of Poland thanked Yulia Tymoshenko for constructive and important stand of the Government of Ukraine in the process of settling the conflict.

Prime Ministers of Ukraine and Poland agreed to continue regular consultations on the whole range of issues discussed.