Party Overview
Breakthrough Initiative
Ukraine in a Global Context
Contract with Investors
Bloc of Yulia Tymoshenko
(BYuT)
The
Bloc of Yulia Tymoshenko (BYuT) is named after
Yulia Tymoshenko, its leader who also founded the
Batkivshyna Party in 1999. Tymoshenko played a
central role in protests against then-President
Kuchma and, in 2001, helped form the National
Salvation Forum. In November 2001, the Forum was
renamed BYuT and consists of the following
constituent members:
- Batkivshyna Party
- Patriotic Party of Ukraine
- Ukrainian Conservative Republican Party
- Ukrainian Republican Party ‘Sobor’
- Ukrainian Social Democratic Party
In August
2007, BYuT unveiled its blueprint for Ukraine’s
strategic development. In a document entitled
“Ukrainian Breakthrough: Towards a Fair and
Competitive Country,” the faction conveyed 12
provisions, representing the basis of its electoral
program.
“Our objective is to set high goals and to propose pragmatic and simple ways to achieve them,” said Yulia Tymoshenko.
The platform’s 12 provisions include a comprehensive view of the need for change in Ukraine, ranging from constitutional reform to education. (The report in its entirety is available in Ukrainian at www.byut.com.)
“The Ukrainian Breakthrough is key to our country’s future prosperity,” said Ms Tymoshenko, noting that the program “is designed to put the country on a fast-track.” She expressed her hope that it would “be used by a new and professional government as the foundation for its work.”
Constitution
A sound constitutional foundation is required to move the country forward and Ukrainians should have a voice in its establishment. BYuT proposes a national referendum to adopt a new Constitution. The people would have a direct impact on its conception, deciding on far ranging issues such as the type of government (whether presidential or parliamentary); the possible elimination of parliamentary privileges and deputy immunity; whether to strip corrupt deputies of their mandates; the expansion of powers for regional governments; and other measures.
Justice
A judicial reform program is recommended; most importantly it includes measures to protect the judiciary from political, administrative and corrupt influences. A key proposal is to raise salaries for judges and abolish the requirement for them to hear specific cases. Another important measure is a legal aid scheme for poor citizens so that income is not the final determinant of judicial representation and consideration.
Media
BYuT will put forward reforms to remove media bias. This includes the creation of public broadcast television, greater transparency and disclosure of ownership of media interests, the establishment of agreements between owners of media outlets and journalists in order to facilitate open and honest editorial policy, and increased internet availability.
Anti-corruption
One of BYuT’s long-standing priorities is the implementation of a systematic program to combat corruption. Along with constitutional and judicial reform, the anti-corruption program depends on less government interference in the economy and a significant reduction in bureaucracy. Specific measures include the establishment of a special committee to analyze legislation and statutory acts with a view to eliminating avenues for corruption, the sale of non-agricultural land by auction, providing parliamentary opposition with control of the Chamber of Accounts, instigating declarations of expenditure for all public employees, stiffer penalties for corruption offences, and the reintroduction of anti-smuggling initiatives.
Social Reform
The cornerstone of the social welfare reform will be to provide improved social welfare services while encouraging an expansion of the population. Specific plans include obligatory medical insurance, free state medical services for those in need, affordable medication, a rural doctor program, and increased payments for each newborn child (Hr 10,400 for the first, not less than Hr 15,000 for the second and Hr 25,000 for the third). In addition, there are proposals for increased baby care allowances and long-term low interest loans for young families.
Education
Of primary concern to the development of intellectual capital in Ukraine is the brain drain that has been underway for some years. An initiative to reverse this will be implemented by restoring the status and raising the standards of the education system. Measures include incentives for investment in professional and higher education, and, most importantly, research and development.
Businesses will be incentivized to invest in production technologies and there will be free competition in high tech industries (particularly related to the internet and mobile technologies). Other measures include a system of Intellectual Property Rights and a long-range goal to establish internet connectivity more broadly across Ukraine.
Transit
Multiple measures are envisaged to utilize Ukraine’s geographical position as an east-west transit country. The program includes building new oil and gas pipelines and expanding public-private partnership investments to improve roads, railways and airports. A liberalization of the current regime for the transit of passengers and goods is also included.
Business
BYuT will implement a concerted effort to address the imbalance between large enterprises, which dominate the business sector, and small by encouraging the growth of wealth-creating small- and medium-sized enterprises. The program proposes to reduce the tax burden through the adoption of a new tax code while expanding assessment, minimizing tax remissions, and abolishing VAT. Other growth measures include simplifying the process to set up and administer businesses and establishing lower business lending rates in line with European levels. Also proposed are measures to liberalize banking and insurance services and to encourage longer-term lending. Shareholder rights will be protected, the permit system reformed, and the governmental bureaucracy reduced. A detailed proposal on BYuT’s commitment to investors in Ukraine will be forthcoming shortly.
Energy
A series of strategic initiatives has been developed, the core of which is to overturn the nation’s dependence on monopolies for importing energy while strengthening collaboration and coordination of energy policy with the EU. Specific policies include integration with the European market for the supply and consumption of electricity, measures to reduce oil and gas consumption, an increase in utilization of brown coal and the production of synthetic fuel. Strategically, key elements also include the completion of the Odessa-Brody-Plotsk (Gdansk) transit pipeline and the building of a gas transit pipeline linking the Caspian (running through Azerbaijan, Georgia and the Black Sea). In terms of domestic production, the removal of harmful gas price caps (Decree 31) will be implemented to encourage domestic production both onshore and offshore in the Black and Azov Seas.
Investment
The encouragement of domestic and foreign investment is vital to Ukraine’s future prosperity. Key measures include changing and eliminating legislation and legal contradictions that currently hinder investment. Procedures will be streamlined to allocate land under long-term leases to investors who will build new facilities in Ukraine, especially in the technology sector. Other proposals include transparent and open privatization and tender processes and the establishment of a network of regional ombudsman to simplify processes for obtaining import certificates. Special emphasis will be made to attract investment in the power sector and all new legislation enacted will be in accordance with WTO practices.
Construction
BYuT proposes a system of mortgage lending with lower interest rates for house purchases along with governmental targets designed for public housing projects. Decentralization to the regional level will be implemented to facilitate these targets for both housing and commercial facilities. Special tax incentives are also envisioned for industrial projects to complement planning for investment described above.
Agriculture
A program aimed at establishing a stronger, more profitable and environmentally responsible agricultural sector will be implemented. Crucial measures include the availability of development funds, agricultural exchanges, insurance funds and land-banks. Other initiatives involve the promotion of agricultural products to overseas markets. To facilitate a functioning land market, agricultural producers will have access to low interest loans, with incentives put in place for the development of cooperative banks and credit unions in rural areas.
“Our objective is to set high goals and to propose pragmatic and simple ways to achieve them,” said Yulia Tymoshenko.
The platform’s 12 provisions include a comprehensive view of the need for change in Ukraine, ranging from constitutional reform to education. (The report in its entirety is available in Ukrainian at www.byut.com.)
“The Ukrainian Breakthrough is key to our country’s future prosperity,” said Ms Tymoshenko, noting that the program “is designed to put the country on a fast-track.” She expressed her hope that it would “be used by a new and professional government as the foundation for its work.”
Constitution
A sound constitutional foundation is required to move the country forward and Ukrainians should have a voice in its establishment. BYuT proposes a national referendum to adopt a new Constitution. The people would have a direct impact on its conception, deciding on far ranging issues such as the type of government (whether presidential or parliamentary); the possible elimination of parliamentary privileges and deputy immunity; whether to strip corrupt deputies of their mandates; the expansion of powers for regional governments; and other measures.
Justice
A judicial reform program is recommended; most importantly it includes measures to protect the judiciary from political, administrative and corrupt influences. A key proposal is to raise salaries for judges and abolish the requirement for them to hear specific cases. Another important measure is a legal aid scheme for poor citizens so that income is not the final determinant of judicial representation and consideration.
Media
BYuT will put forward reforms to remove media bias. This includes the creation of public broadcast television, greater transparency and disclosure of ownership of media interests, the establishment of agreements between owners of media outlets and journalists in order to facilitate open and honest editorial policy, and increased internet availability.
Anti-corruption
One of BYuT’s long-standing priorities is the implementation of a systematic program to combat corruption. Along with constitutional and judicial reform, the anti-corruption program depends on less government interference in the economy and a significant reduction in bureaucracy. Specific measures include the establishment of a special committee to analyze legislation and statutory acts with a view to eliminating avenues for corruption, the sale of non-agricultural land by auction, providing parliamentary opposition with control of the Chamber of Accounts, instigating declarations of expenditure for all public employees, stiffer penalties for corruption offences, and the reintroduction of anti-smuggling initiatives.
Social Reform
The cornerstone of the social welfare reform will be to provide improved social welfare services while encouraging an expansion of the population. Specific plans include obligatory medical insurance, free state medical services for those in need, affordable medication, a rural doctor program, and increased payments for each newborn child (Hr 10,400 for the first, not less than Hr 15,000 for the second and Hr 25,000 for the third). In addition, there are proposals for increased baby care allowances and long-term low interest loans for young families.
Education
Of primary concern to the development of intellectual capital in Ukraine is the brain drain that has been underway for some years. An initiative to reverse this will be implemented by restoring the status and raising the standards of the education system. Measures include incentives for investment in professional and higher education, and, most importantly, research and development.
Businesses will be incentivized to invest in production technologies and there will be free competition in high tech industries (particularly related to the internet and mobile technologies). Other measures include a system of Intellectual Property Rights and a long-range goal to establish internet connectivity more broadly across Ukraine.
Transit
Multiple measures are envisaged to utilize Ukraine’s geographical position as an east-west transit country. The program includes building new oil and gas pipelines and expanding public-private partnership investments to improve roads, railways and airports. A liberalization of the current regime for the transit of passengers and goods is also included.
Business
BYuT will implement a concerted effort to address the imbalance between large enterprises, which dominate the business sector, and small by encouraging the growth of wealth-creating small- and medium-sized enterprises. The program proposes to reduce the tax burden through the adoption of a new tax code while expanding assessment, minimizing tax remissions, and abolishing VAT. Other growth measures include simplifying the process to set up and administer businesses and establishing lower business lending rates in line with European levels. Also proposed are measures to liberalize banking and insurance services and to encourage longer-term lending. Shareholder rights will be protected, the permit system reformed, and the governmental bureaucracy reduced. A detailed proposal on BYuT’s commitment to investors in Ukraine will be forthcoming shortly.
Energy
A series of strategic initiatives has been developed, the core of which is to overturn the nation’s dependence on monopolies for importing energy while strengthening collaboration and coordination of energy policy with the EU. Specific policies include integration with the European market for the supply and consumption of electricity, measures to reduce oil and gas consumption, an increase in utilization of brown coal and the production of synthetic fuel. Strategically, key elements also include the completion of the Odessa-Brody-Plotsk (Gdansk) transit pipeline and the building of a gas transit pipeline linking the Caspian (running through Azerbaijan, Georgia and the Black Sea). In terms of domestic production, the removal of harmful gas price caps (Decree 31) will be implemented to encourage domestic production both onshore and offshore in the Black and Azov Seas.
Investment
The encouragement of domestic and foreign investment is vital to Ukraine’s future prosperity. Key measures include changing and eliminating legislation and legal contradictions that currently hinder investment. Procedures will be streamlined to allocate land under long-term leases to investors who will build new facilities in Ukraine, especially in the technology sector. Other proposals include transparent and open privatization and tender processes and the establishment of a network of regional ombudsman to simplify processes for obtaining import certificates. Special emphasis will be made to attract investment in the power sector and all new legislation enacted will be in accordance with WTO practices.
Construction
BYuT proposes a system of mortgage lending with lower interest rates for house purchases along with governmental targets designed for public housing projects. Decentralization to the regional level will be implemented to facilitate these targets for both housing and commercial facilities. Special tax incentives are also envisioned for industrial projects to complement planning for investment described above.
Agriculture
A program aimed at establishing a stronger, more profitable and environmentally responsible agricultural sector will be implemented. Crucial measures include the availability of development funds, agricultural exchanges, insurance funds and land-banks. Other initiatives involve the promotion of agricultural products to overseas markets. To facilitate a functioning land market, agricultural producers will have access to low interest loans, with incentives put in place for the development of cooperative banks and credit unions in rural areas.
The Basis of ByuT Foreign
Policy
In 2004, the Ukrainian people declared via democratic choice that they belong to the European political and cultural space.
Ukraine, a young democracy working to establish its place in the global community, should be driven exclusively by the interests of its own citizens. The ultimate goal of Ukraine’s foreign policy should be the full integration in the global community with the objective to guarantee the respectable and equal global status of Ukrainian citizens. Cooperation with other countries should be developed based on mutual respect and equal benefits and this cooperation should coincide with the long-term interests of Ukraine. However, international commitments of Ukraine should not limit the rights or opportunities of the country’s citizens or decrease the level of citizens’ social security, welfare, or social guarantees.
The goal of BYuT is to change the country’s foreign policy in a manner that goes beyond mere lip service and truly secures the national interests of Ukraine in the world. Key decisions should be made through transparent procedures with the participation of experts and the support of society.
BYuT believes that the foreign policy of Ukraine should be governed by a triad of interrelated economic, political, and strategic interests:
First, the sovereignty, self-determination and integrity of Ukraine’s borders are not subjects for revision and no government may act to limit Ukraine’s sovereignty. Ukraine should not fall under the influence of foreign powers, nor become Americanized or Russified. Ukraine’s sovereignty should be consistent with the interests of the country’s citizens, regardless of their national, cultural, linguistic, or religious identities.
This means, above all, that accession to military and political alliances, where elements of state security and foreign political determination are delegated to supra-national governing bodies, may only be carried by the will of the people, expressed through a referendum.
However, the government can, after appropriate confirmation by the Verkhovna Rada and discussion within the civil society, approve a decision to join international economic organizations, providing that membership would assist in achieving strategic goals of the country, and consequently improve its citizens’ welfare.
Energy security is the most important foreign policy priority that directly impacts Ukrainian sovereignty and ByuT believes that the energy policy of our country should be developed as an intercontinental energy strategy with the European Union.
Other specific steps are necessary to secure Ukraine’s sovereignty, including the finalization of the borders along the whole perimeter. The appropriate demarcation of Azov-Kerch waters and of Ukrainian-Byelorussian borders is an important part of this goal. We also need to settle controversial issues and implement agreements regarding the temporary dislocation of the Black Sea Fleet of the Russian Federation in Ukraine. Finally, we should resolve the issues of demarcation of the continental shelf and special economic zones in the Black Sea with Romania, which will allow us to start exploration and development of energy resources immediately.
Strategic Relationships
Strategic partnerships with both Russia and the USA are very important Ukrainian national interests which elevate the role of Ukraine as a supplier of stability, peace, security, and democratic transformation in East Central Europe and Eurasia.
Development of wide-scale economic cooperation with such leading countries as Russia, USA, Germany, France, UK, Italy, Japan, China, Canada, and India is also a primary national interest of Ukraine.
Ukraine needs international cooperation not only to address global issues, such as the development of new sources of energy, but also for humanitarian goals – protection of the interests of people who work abroad temporarily, prevention of trafficking in women and children, and illegal immigration.
In today’s world we need friendly and mutually beneficial relations with all nations, regardless of their culture, race or religion. We also need mutually beneficial economic relationships, and we shall become partners of any countries with which we can build a strong and reliable future.
The World Trade Organization
We will join the World Trade Organization (WTO). First, it is in our economic interest to have an opportunity to trade with other countries under beneficial conditions. Second, WTO membership will trigger foreign trade and investments which will stimulate development of business and increase jobs. Third, WTO membership will lead our key exporters, who will have to adhere to international rules, to implement international standards of business discipline.
The European Union
Ukraine has a European vocation. We continue to work on our strategic goal to become a member of the European Union. EU membership will be a significant socio-economic benefit which will give us access to the largest economic bloc in the world with almost 500 million consumers and GDP of close to 13 trillion dollars.
A new extended agreement between Ukraine and the European Union shall:
NATO
BYuT understands the benefits of Euro-Atlantic integration for Ukraine and that no country can confront new challenges alone. However, the reality is that the issue of NATO membership is not an immediate priority for the majority of people. There is a high level of antipathy against NATO, especially in the east and south of Ukraine. The Alliance itself is currently developing a new identity under a different configuration of threats. A responsible government in this situation should work, as ByuT intends, to provide people with all the necessary information and arguments on regional and global security and partnership issues.
Accession of Ukraine to NATO cannot happen before the majority of Ukrainians understand all the benefits of membership in comparison with non-alliance status or accession to the Tashkent Pact. The issue of NATO accession will be decided only through a referendum.
However, until then we should continue our work on the Ukraine Armed Forces modernization and implementation of the Action Plan.
The benchmark for successful Euro-Atlantic integration should be progress in the implementation of high level standards of accountability, transparency, and civil democratic monitoring of governmental institutions, especially the Armed Forces, security and law enforcement agencies. Improved institutional capacity and adoption of international standards should be priority investments in our security.
Russia and Regional Issues
Ukraine’s destiny is neither that of a forgotten border country nor of a bridge between the so-called post-Soviet space and mature European democracies.
We interact with our neighbors because we know that self-determination does not mean isolation. Achieving national independence today means gaining new status, not a withdrawal from the world stage. New countries are able to develop relations with their neighbors based on common interests. We want to build these kinds of relations with Russia, and this is the way Ukraine can help expand European security, peace and stability.
Relations with Russia are important for everyone’s security and prosperity and we plan to develop them depending upon situational changes. We will revise our relations with Russia as necessary, always based on mutual respect and cooperation. Russia is an important strategic economic partner and, therefore, economic and cultural relations will be welcomed and developed.
Today, the strategic tasks before the leaders of Russia and Ukraine include the commitment to continue current changes appropriately, in a peaceful and mutually beneficial way. We will not withdraw from this challenge.
The desired end result of this process should be clear - two prosperous and friendly neighbors, like France and Germany. However, to achieve this result we need to implement procedures quickly, and the results should yield reform and revitalization of both countries without excessive tension.
We believe that it is Ukraine’s duty to assist in the process of institutionalizing Russia’s role in Europe because better identification of Russia’s position will bring more certainty and stability in Russia-Ukraine relations.
Russia and Ukraine should seek a similar practical plan for improvement of special relations between Russians and Ukrainians.
Today, no one country in the world can control the European future of another country. If the leaders of Russia and Ukraine can apply this understanding to the management of bilateral relations, we will establish a new basis for cooperation which will enrich both of our nations.
By freeing our economies and societies we will be able to build a better and more meaningful future for our nations.
Balance
In achieving progress, stability and reliability are much more important assets than the acquisition of a specific formula for integration into an alliance, be it with Russia or NATO. Just as transparency works best for business practices, it can also be used to decrease suspicion and develop trust in the diplomacy between neighbors.
It is true that historical and cultural ties with our neighbors mean that we will never be able to turn our back to Russia. These ties, together with healthy, transparent trade agreements, will become a cornerstone of our relations based on mutual trust and respect.
Ukraine is a sovereign state. The “Ukrainian breakthrough” will allow us to become a strong, full-scale player in our geopolitical space.
In 2004, the Ukrainian people declared via democratic choice that they belong to the European political and cultural space.
Ukraine, a young democracy working to establish its place in the global community, should be driven exclusively by the interests of its own citizens. The ultimate goal of Ukraine’s foreign policy should be the full integration in the global community with the objective to guarantee the respectable and equal global status of Ukrainian citizens. Cooperation with other countries should be developed based on mutual respect and equal benefits and this cooperation should coincide with the long-term interests of Ukraine. However, international commitments of Ukraine should not limit the rights or opportunities of the country’s citizens or decrease the level of citizens’ social security, welfare, or social guarantees.
The goal of BYuT is to change the country’s foreign policy in a manner that goes beyond mere lip service and truly secures the national interests of Ukraine in the world. Key decisions should be made through transparent procedures with the participation of experts and the support of society.
BYuT believes that the foreign policy of Ukraine should be governed by a triad of interrelated economic, political, and strategic interests:
- Free trade, a reduction of protectionist measures and access to world markets which will expand following accession to the WTO.
- Mutually beneficial relations with foreign countries which will be built on democratic values and support their expansion.
- Stability which is integral to the security of all European countries and will prevent international conflicts.
First, the sovereignty, self-determination and integrity of Ukraine’s borders are not subjects for revision and no government may act to limit Ukraine’s sovereignty. Ukraine should not fall under the influence of foreign powers, nor become Americanized or Russified. Ukraine’s sovereignty should be consistent with the interests of the country’s citizens, regardless of their national, cultural, linguistic, or religious identities.
This means, above all, that accession to military and political alliances, where elements of state security and foreign political determination are delegated to supra-national governing bodies, may only be carried by the will of the people, expressed through a referendum.
However, the government can, after appropriate confirmation by the Verkhovna Rada and discussion within the civil society, approve a decision to join international economic organizations, providing that membership would assist in achieving strategic goals of the country, and consequently improve its citizens’ welfare.
Energy security is the most important foreign policy priority that directly impacts Ukrainian sovereignty and ByuT believes that the energy policy of our country should be developed as an intercontinental energy strategy with the European Union.
Other specific steps are necessary to secure Ukraine’s sovereignty, including the finalization of the borders along the whole perimeter. The appropriate demarcation of Azov-Kerch waters and of Ukrainian-Byelorussian borders is an important part of this goal. We also need to settle controversial issues and implement agreements regarding the temporary dislocation of the Black Sea Fleet of the Russian Federation in Ukraine. Finally, we should resolve the issues of demarcation of the continental shelf and special economic zones in the Black Sea with Romania, which will allow us to start exploration and development of energy resources immediately.
Strategic Relationships
Strategic partnerships with both Russia and the USA are very important Ukrainian national interests which elevate the role of Ukraine as a supplier of stability, peace, security, and democratic transformation in East Central Europe and Eurasia.
Development of wide-scale economic cooperation with such leading countries as Russia, USA, Germany, France, UK, Italy, Japan, China, Canada, and India is also a primary national interest of Ukraine.
Ukraine needs international cooperation not only to address global issues, such as the development of new sources of energy, but also for humanitarian goals – protection of the interests of people who work abroad temporarily, prevention of trafficking in women and children, and illegal immigration.
In today’s world we need friendly and mutually beneficial relations with all nations, regardless of their culture, race or religion. We also need mutually beneficial economic relationships, and we shall become partners of any countries with which we can build a strong and reliable future.
The World Trade Organization
We will join the World Trade Organization (WTO). First, it is in our economic interest to have an opportunity to trade with other countries under beneficial conditions. Second, WTO membership will trigger foreign trade and investments which will stimulate development of business and increase jobs. Third, WTO membership will lead our key exporters, who will have to adhere to international rules, to implement international standards of business discipline.
The European Union
Ukraine has a European vocation. We continue to work on our strategic goal to become a member of the European Union. EU membership will be a significant socio-economic benefit which will give us access to the largest economic bloc in the world with almost 500 million consumers and GDP of close to 13 trillion dollars.
A new extended agreement between Ukraine and the European Union shall:
- Create conditions for full-scale participation of Ukraine in the EU market with its “four freedoms” – free movement of people, goods, services, and capital.
- Introduce an extended free trade zone as the first step of integration into the EU market.
- Intensify political dialogue and expand cooperation in the areas of foreign, security, and defense policy.
- Deepen industrial cooperation, especially in the energy sector through the development of a common energy policy, implementation of European standards and technologies, participation in diversification and energy efficiency projects, and attraction of wide-scale direct foreign investments.
- Incorporate full-scale participation of Ukraine in the EU programs for youth, scientists, , artists and professionals in education.
- Provide further liberalization of visa issuance within a single space of stability, freedom, and security to facilitate contacts between people, harmonize migration policy, and combat “soft security” threats (organized crime, smuggling, etc.).
- Guaranty speedy and effective adaptation of Ukrainian laws to the laws of EU.
NATO
BYuT understands the benefits of Euro-Atlantic integration for Ukraine and that no country can confront new challenges alone. However, the reality is that the issue of NATO membership is not an immediate priority for the majority of people. There is a high level of antipathy against NATO, especially in the east and south of Ukraine. The Alliance itself is currently developing a new identity under a different configuration of threats. A responsible government in this situation should work, as ByuT intends, to provide people with all the necessary information and arguments on regional and global security and partnership issues.
Accession of Ukraine to NATO cannot happen before the majority of Ukrainians understand all the benefits of membership in comparison with non-alliance status or accession to the Tashkent Pact. The issue of NATO accession will be decided only through a referendum.
However, until then we should continue our work on the Ukraine Armed Forces modernization and implementation of the Action Plan.
The benchmark for successful Euro-Atlantic integration should be progress in the implementation of high level standards of accountability, transparency, and civil democratic monitoring of governmental institutions, especially the Armed Forces, security and law enforcement agencies. Improved institutional capacity and adoption of international standards should be priority investments in our security.
Russia and Regional Issues
Ukraine’s destiny is neither that of a forgotten border country nor of a bridge between the so-called post-Soviet space and mature European democracies.
We interact with our neighbors because we know that self-determination does not mean isolation. Achieving national independence today means gaining new status, not a withdrawal from the world stage. New countries are able to develop relations with their neighbors based on common interests. We want to build these kinds of relations with Russia, and this is the way Ukraine can help expand European security, peace and stability.
Relations with Russia are important for everyone’s security and prosperity and we plan to develop them depending upon situational changes. We will revise our relations with Russia as necessary, always based on mutual respect and cooperation. Russia is an important strategic economic partner and, therefore, economic and cultural relations will be welcomed and developed.
Today, the strategic tasks before the leaders of Russia and Ukraine include the commitment to continue current changes appropriately, in a peaceful and mutually beneficial way. We will not withdraw from this challenge.
The desired end result of this process should be clear - two prosperous and friendly neighbors, like France and Germany. However, to achieve this result we need to implement procedures quickly, and the results should yield reform and revitalization of both countries without excessive tension.
We believe that it is Ukraine’s duty to assist in the process of institutionalizing Russia’s role in Europe because better identification of Russia’s position will bring more certainty and stability in Russia-Ukraine relations.
Russia and Ukraine should seek a similar practical plan for improvement of special relations between Russians and Ukrainians.
Today, no one country in the world can control the European future of another country. If the leaders of Russia and Ukraine can apply this understanding to the management of bilateral relations, we will establish a new basis for cooperation which will enrich both of our nations.
By freeing our economies and societies we will be able to build a better and more meaningful future for our nations.
Balance
In achieving progress, stability and reliability are much more important assets than the acquisition of a specific formula for integration into an alliance, be it with Russia or NATO. Just as transparency works best for business practices, it can also be used to decrease suspicion and develop trust in the diplomacy between neighbors.
It is true that historical and cultural ties with our neighbors mean that we will never be able to turn our back to Russia. These ties, together with healthy, transparent trade agreements, will become a cornerstone of our relations based on mutual trust and respect.
Ukraine is a sovereign state. The “Ukrainian breakthrough” will allow us to become a strong, full-scale player in our geopolitical space.
Today
Ukraine trails most of its Central European
neighbors in economic development as well as
standard of living of its citizens. Two key
investment metrics for growth, foreign direct
investment and foreign trade, also reveal that
Ukraine is ill-prepared for the modern global
economy. This is especially concerning in light of
Ukraine’s dynamic, well-educated population,
developed industry and wealth of natural resources.
BYuT believes that:
While all parties will outline an economic policy proposal, the question of execution always remains. To resolve this, BYuT will establish and communicate clear and achievable timelines for implementation, identify the responsible governmental officials for each element of reform, and create a system of consultation with the national and international business community on the progress of reform as it develops.
The goal is to provide economic opportunity to all Ukrainians as part of the global economy. While it is vital that Ukraine engage internationally as never before, it must first begin the process of putting its own affairs in order.
This ‘Contract’ recognizes the support given to Ukraine by the international community and in particular from the European Business Association and the American Chamber of Commerce through their many papers on how the investment environment can be improved.
Good governance is required to create a more favorable investment climate.
To achieve this, BYuT will:
Lead a change-management program to develop the foundation of a modern government
Ukraine’s public administration requires a complete overhaul. This includes measures to:
The respect of property rights, the rights of investors and the sanctity of contracts must be the foundation for the legal framework for economic development. BYuT will:
Roadblocks to development must be removed to achieve broad economic growth. Specifically, BYuT plans to:
To accelerate economic development, BYuT will:
Enact land reform
The development of Ukraine is being held back due to the lack of available building land. BYuT proposes to:
Economic development will be accelerated when the state privatizes assets to legitimate private partners committed to the development of Ukraine. To accomplish this, BYuT will:
Ukraine is a country rich in natural resources but it has underinvested in the production of those resources, most of which are vital to its independence and national security. BYuT plans to:
Ukraine must deepen and broaden its trade opportunities on a global basis, especially with Europe. BYuT will:
Opportunities exist for Ukraine to expand its trade throughout Europe and the world. In order to advance this effort, BYuT will:
On behalf of BYuT,
Yulia Tymoshenko
Date: 10th September, 2007
BYuT believes that:
- Ukraine must work toward the development of a market-oriented economy that encompasses the social concerns of an economy and a people in transition.
- The most fundamental catalyst for economic development is good government, the foundation of which is an effective legal framework.
- The government’s focus should be economically sound and consistent policy with incentives for investment in and development of Ukraine’s assets, infrastructure, natural resources and intellectual capital.
While all parties will outline an economic policy proposal, the question of execution always remains. To resolve this, BYuT will establish and communicate clear and achievable timelines for implementation, identify the responsible governmental officials for each element of reform, and create a system of consultation with the national and international business community on the progress of reform as it develops.
The goal is to provide economic opportunity to all Ukrainians as part of the global economy. While it is vital that Ukraine engage internationally as never before, it must first begin the process of putting its own affairs in order.
This ‘Contract’ recognizes the support given to Ukraine by the international community and in particular from the European Business Association and the American Chamber of Commerce through their many papers on how the investment environment can be improved.
Good governance is required to create a more favorable investment climate.
To achieve this, BYuT will:
Lead a change-management program to develop the foundation of a modern government
Ukraine’s public administration requires a complete overhaul. This includes measures to:
- Establish transparency and communication as the cornerstones of the governmental process.
- Define in specific terms the role of government officials as they relate to the economy and establish metrics and accountability for their results.
- Upgrade and professionalize the government at all levels through the adoption of international standards and the training of staff.
- Reduce the number of government employees while increasing the salaries of those who remain committed to serving the public good.
The respect of property rights, the rights of investors and the sanctity of contracts must be the foundation for the legal framework for economic development. BYuT will:
- Strengthen the powers of the judicial system to curb tax evasion, combat organized crime and eliminate the shadow economy.
- Repeal of the law providing legal immunity for government officials.
- Mandate an online legal register of government officials for the disclosure of salaries and business interests.
- Pursue the adoption of the joint stock company law sent to the previous Rada while ensuring that it conforms to harmonization efforts with the EU.
- Improve the interface between court systems and business by establishing mandatory training of judges in modern business practices, a review of the financing of the courts, and an online nationwide system to access court decisions.
Roadblocks to development must be removed to achieve broad economic growth. Specifically, BYuT plans to:
- Repeal the Economic Code in conjunction with the launch an Inter-Ministerial working group with the authority and accountability for removing business-economic roadblocks such as contradictory and overlapping laws, regulations and tax regimes.
- Ensure prompt and unbiased reimbursements of VAT; a goal of 60 days will be set for reimbursement with records of VAT payments and pending disputes available in an online resource.
- Review the viability of the current VAT regime and the current social tax system; ensure that the systems are comprehensive and in accordance with EU harmonization.
To accelerate economic development, BYuT will:
Enact land reform
The development of Ukraine is being held back due to the lack of available building land. BYuT proposes to:
- Facilitate the development of land markets via improved processes for titling and registration.
- Ensure that the decision to repeal the ban on agricultural land sales goes into effect on January 1, 2008
- Streamline rezoning so that agricultural land can be used for construction.
Economic development will be accelerated when the state privatizes assets to legitimate private partners committed to the development of Ukraine. To accomplish this, BYuT will:
- Implement a new privatization strategy geared towards the rapid, transparent privatization of many commercial assets still under government control.
- Propose a revised list of companies to be privatized, including a time schedule for their privatization.
- Review conflicts where the State is in competition with private sector to determine viability of state-sponsored activities
- Ensure that state-owned, regional or other monopolies do not impede new investment.
Ukraine is a country rich in natural resources but it has underinvested in the production of those resources, most of which are vital to its independence and national security. BYuT plans to:
- Pursue a new strategy of increased domestic production of onshore and offshore oil and gas via incentives programs for foreign direct investment
- Adopt the international standard of production of sharing agreements that last 10 to 20 years.
- Work with Ukraine’s foreign suppliers, consumers and industrial end-users to develop a structured transition to market prices
- Seek a diversification of energy supply through continued development of coal and nuclear resources.
- Engage in public-private partnerships to develop investment in energy efficiency programs and energy saving technologies.
Ukraine must deepen and broaden its trade opportunities on a global basis, especially with Europe. BYuT will:
- Seek full implementation of all regulatory and legal requirements associated with WTO accession on a schedule determined by Ukraine and the WTO
- Create an Inter-Ministerial working group to ensure that Ukraine both implements and maintains the necessary standards for membership
- Pursue the immediate elimination of all remaining embargoes on grains and ensure that all future trade policies relative to embargos are in accordance with WTO standards
- Prioritize negotiations with the EU on a New Enhanced Agreement with an emphasis on a Deep Free Trade Agreement.
- Negotiate the immediate acceptance by Ukraine of all products that conform to EU standards and limit jurisdiction over import certification to one single Ukrainian agency
- Accelerate Ukrainian product harmonization of EU standards and certification procedures and press for Ukrainian certification to be recognized on a reciprocal basis
Opportunities exist for Ukraine to expand its trade throughout Europe and the world. In order to advance this effort, BYuT will:
- Optimize all the current agencies into one national investment promotion agency.
- Adopt internationally recognized best practices in trade promotion.
- Ensure that all levels of the organization are properly trained and qualified.
On behalf of BYuT,
Yulia Tymoshenko
Date: 10th September, 2007