Sunday, February 21, 2010

Ukraine-Russia Relations Still Unclear

KIEV, Ukraine -- As soon as his challenger had dropped a legal battle to block his inauguration this week, Ukrainian President-elect Viktor Yanukovych got a call from Russian President Dmitry Medvedev. According to the Kremlin, the two men agreed that Mr. Yanukovych would visit Moscow in early March.

But Mr. Yanukovych's aides would neither confirm nor deny Sunday anything about such a visit, even though his Web site posted the Kremlin announcement. Hanna Herman, a close confidant, said the president-elect's first priority was to form a new government and deal with domestic problems.

The call from the Kremlin Saturday signals Russia's interest in reasserting a preferential relationship with its former Soviet neighbor. Yet the coy reaction in Kiev leaves it unclear which way Mr. Yanukovych will tilt Ukraine, a country of 46 million people wedged between Russia and the West.

Ukraine embraced a Western agenda after the 2004 Orange Revolution, when mass protests alleging electoral fraud overturned Mr. Yanukovych's tainted victory in that year's presidential election. Viktor Yushchenko won the revote and antagonized the Kremlin, which had openly backed Mr. Yanukovych, by trying to take Ukraine into the North Atlantic Treaty Organization and supporting Georgia during its 2008 war with Russia.

During the recent campaign, the Kremlin played no favorite and Mr. Yanukovych straddled the fence, calling for good relations with Russia and the European Union. Ms. Herman had indicated that his first presidential trip abroad could be to Brussels.

The question of Mr. Yanukovych's foreign policy priorities could complicate his effort to form a majority in parliament and replace Yulia Tymoshenko, his bitter rival in the presidential race, as prime minister.

Ms. Tymoshenko dropped her court challenge to the results of the Feb. 7 election Saturday, clearing the way for Mr. Yanukovych's inauguration on Thursday. She said there was no point pursuing the case after the Supreme Administrative Court refused to consider evidence she presented alleging vote falsification in favor of her opponent, who won by a margin of 3.48%.

As the political struggle turns to parliament, Mr. Yanukovych's opposition Party of Regions is trying to persuade two parties in Ms. Tymoshenko's fragile coalition to switch allegiance and oust her as prime minister.

One of those parties, Mr. Yushchenko's Our Ukraine bloc, is divided; its many nationalist supporters in western Ukraine are wary of Mr. Yanukovych because he has shown himself willing to take Russia's positions into account.

In interviews with Russian journalists last week, Mr. Yanukovych said he would not pursue NATO membership for Ukraine and would consider prolonging the basing of Russia's Black Sea Fleet on Ukrainian soil. The Kremlin also wants Ukraine to join a customs union with Russia, Belarus and Kazakhstan, a step that could impede Ukraine's talks on a trade agreement with the European Union.

Ms. Tymoshenko met with Our Ukraine lawmakers last week in an attempt to persuade them to stick with her coalition.

If Mr. Yanukovych fails to form a majority, he has said he would call early parliamentary elections. That prospect would prolong political uncertainty and further damage Ukraine's economy, which shrank by 15% last year.

Source:online.wsj.com/

Ukraine's Yanukovich narrows down search for PM

KIEV (Reuters) - The parliamentary party of Ukrainian President elect Viktor Yanukovich has narrowed down the search for a new prime minister to three candidates, two from outside its ranks, a party source told Reuters on Sunday.

World

Yanukovich's Regions Party is attempting to form a new coalition in parliament which would be able to oust current Prime Minister Yulia Tymoshenko; the loser in a presidential election this month.

The post of prime minister will be key to uniting coalition parties under the Regions Party. Tymoshenko's ouster may usher in a stable government that will focus on Ukraine's economic woes and bring back International Monetary Fund lending.

The source said businessman Sergey Tigipko and former Foreign Minister Arseniy Yatsenyuk, neither from the Regions Party, as well as former Finance Minister Mykola Azarov were named as the most likely candidates by Yanukovich in an interview with television stations to be aired later on Sunday. "Today, there are three figures; Tigipko, Yatsenyuk and Azarov," the source said.

Tigipko, 50, came a surprise third in a first round of the presidential election and Tymoshenko and Yanukovich both tried to woo him to their side in the run up to the final round of voting. He declined to support either.

Yatsenyuk is a 35-year-old who has already held a host of positions including chairman of the central bank and speaker of parliament.

Azarov, 63, is an old stalwart of Yanukovich and has helped steer Ukraine's economy under Yanukovich's premierships in 2002-2004 and 2006-2007 as his finance minister. He was seen as a safe pair of hands who managed the state's finances well.

FINDING A COALITION

News of the three candidates came a day after Tymoshenko dropped her legal case against the election result, saying the court could not be trusted to give a fair verdict.

Tymoshenko still claims Yanukovich did not win the election legitimately, accusing his supporters of vote-rigging, even though international observers gave the election the all clear and as Western governments congratulated the president-elect.

Analysts say Tymoshenko will now focus on the fight against Yanukovich in parliament. If his supporters succeed in building a coalition, they could dismiss Tymoshenko through a vote of no confidence, paving the way for a new government.

If not, Yanukovich may be forced into calling a snap parliamentary election, an option investors fear because it would prolong instability in the country.

Tymoshenko's about-turn on Saturday left the way clear for Yanukovich to be inaugurated as president on February 25.

A Regions Party official said on Sunday the presidents of several countries including Bulgaria, Turkey, Poland, Latvia and Lithuania have confirmed they would attend the ceremony, as well as the EU foreign affairs and security chief, Catherine Ashton.

Source:reuters.com/

Thursday, February 18, 2010

Court puts on hold Yanukovych victory in Ukraine presidential election

A Ukrainian court has temporarily suspended the results of the February 2010 presidential election pending review of an appeal filed by Yulia Tymoshenko.

The supreme administrative court released a statement on February 17 2010 saying the Central Election Commission ruling that declared Viktor Yanukovych the winner had been put on hold, according to a report by the Voice of America.

Tymoshenko has lodged court action seeking to overturn the results of the February 7 vote. Tymoshenko, Ukraine's current prime minister, says the election was rigged. She has refused to concede defeat.

Ukraine’s parliament earlier voted to approve the swearing-in of Yanukovych on February 25 2010 as president, over the objections of the Tymoshenko camp, which boycotted the vote while Tymoshenko formally lodged her court action challenging Yanukovych’s win.

Tymoshenko went to the supreme administrative court on February 16 with crates of evidence that she says backs up her allegations of vote-rigging.

International observers have deemed the election that produced Yanukovych’s victory as in line with accepted standards, and Yanukovych already has been congratulated by the White House, the Kremlin and the European Union, among others.

Official results say that Tymoshenko lost by about 888 000 votes, while she alleges that electoral fraud deprived her of about a million votes.

Officials of Yanukovych’s Party of the Regions say that it is not possible for the court to order a repeat of the second round of presidential elections, and Tymoshenko can only challenge the conduct of the central election commission in counting the results.

Yanukovych has called more than once for Tymoshenko to step down as prime minister, a call that he repeated by saying that a defeat in court should be followed by her resignation.

Source:sofiaecho.com/

Ukraine: Yanukovych a 'usurper'

Kiev - The party of Ukrainian Prime Minister Yulia Tymoshenko on Thursday accused her triumphant election rival Viktor Yanukovych of seeking to usurp power by holding his presidential inauguration next week.

Tymoshenko has filed a complaint contending that Yanukovych's victory in presidential elections was marred by mass violations.


On Wednesday, a top court ordered that the official results be put on hold while the case is heard.

But parliament - where Yanukovych's Regions Party is the largest faction - has already set the inauguration for February 25 amid fears of a looming political crisis.

"Any actions aimed at inaugurating Viktor Yanukovych will be seen as an attempt to usurp state power," Deputy Prime Minister and top Tymoshenko ally Olexander Turchynov said in a statement published on her website.

He said that as the results had been suspended by court order, a swearing-in of Yanukovych would be no different to "inaugurating any person who has no document declaring the results of the vote."

Ukraine's supreme administrative court will start hearing the case on Friday and it is unclear whether the case will be wrapped up in time for the inauguration date.

Almost four percent


The deputy head of Tymoshenko's faction, Sergiy Sobolev, said the party was insisting that the February 25 inauguration be cancelled.

Yanukovych defeated Tymoshenko by around 3.5% or just under 890 000 votes in the February 7 election, according to the final official results published on Sunday.

While Tymoshenko claimed there was mass vote fraud, international observers praised the elections and Western leaders including US President Barack Obama have already congratulated Yanukovych on his victory.

Source:news24.com/

Ukraine court suspends official election results

Yulia Tymoshenko, the losing candidate in Ukraine’s presidential run-off 10 February, has lodged a complaint with the country’s Higher Administrative Court claiming that she was robbed of victory by fraud in hundreds of polling stations. The court ordered the election commission to hold off on publishing official results. Tymoshenko has not conceded defeat and refuses to relinquish her post as prime minister in the outgoing government.

The court is not likely to overturn the result, which Viktor Yanukovich won by 3.5 percentage points. Yanukovich is scheduled to be invested 25 February. Tymoshenko may be attempting to negotiate her hold on the prime ministership, according to some commentators.

Source:genevalunch.com/

Wednesday, February 17, 2010

Yanukovych to be sworn in as Ukraine’s president on February 25

Ukraine’s parliament has voted to approve the swearing-in of Viktor Yanukovych on February 25 2010 as president, over the objections of the Yulia Tymoshenko camp, which boycotted the vote while Tymoshenko formally lodged court action challenging Yanukovych’s win.

Tymoshenko went to the supreme administrative court on February 16 with crates of evidence that she says backs up her allegations of vote-rigging, the Voice of America reported.

International observers have deemed the election that produced Yanukovych’s victory as in line with accepted standards, and Yanukovych already has been congratulated by the White House, the Kremlin and the European Union, among others.

Official results say that Tymoshenko lost by about 888 000 votes, while she alleges that electoral fraud deprived her of about a million votes.

Officials of Yanukovych’s Party of the Regions say that it is not possible for the court to order a repeat of the second round of presidential elections, and Tymoshenko can only challenge the conduct of the central election commission in counting the results.

Yanukovych has called more than once for Tymoshenko to step down as prime minister, a call that he repeated by saying that a defeat in court should be followed by her resignation.

Source:sofiaecho.com/

Ukraine leader considers post-election trip to EU capital

EUOBSERVER / BRUSSELS - Ukraine's president-elect, Viktor Yanukovych, is considering going to Brussels for his first foreign trip as the country's leader in a bid to polish up his EU credentials.

Anna German, Mr Yanukovych's spokeswoman, told EUobserver on Monday (15 February) that the move is "possible," with invitations already received from both Brussels and Moscow, but that a final decision has not yet been made.


Mr Yanukovych at the EU headquarters in Brussels in 2006, during his visit as Ukraine's prime minister (Photo: European Commission)
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The country's parliament, the Verkhovna Rada, is to set a date for Mr Yanukovych's inauguration on Tuesday, clearing the way for foreign engagements.

Senior officials in Ukraine's foreign ministry are keen for the president-elect to demonstrate that he is serious about EU integration amid fears in the EU institutions that he will put Russian interests before pro-EU reforms.

In protocol terms, any new leader's choice of first diplomatic encounter is seen as an indicator of foreign policy priorities.

"It would be logical for the newly-elected president of Ukraine to first visit Brussels," Ukraine's deputy foreign minister, Konstantin Yeliseyev, said.

"We hope that Brussels will support the idea and for the first visit to have some deliverables on topics of mutual interest, in particular on visa issues. We are very interested in obtaining the roadmap for a visa-free regime," he added.

Ukraine has for the past two years grumbled that EU consulates in Kiev give harsh treatment to people keen to visit the bloc, spoiling popular support for integration.

For its part, the EU is concerned whether Kiev will stick to recent promises to modernise its gas distribution system, which is responsible for channeling 80 percent of Russian supplies to the bloc.

A series of new laws related to Ukraine's membership in the European Energy Community (EEC) is currently awaiting parliamentary approval.

But Mr Yanukoyvch's comments over the weekend, that he would like to see a Russian-led consortium run the country's pipeline network, have cast doubt over his attachment to the EEC reforms.

"All previous commitments undertaken with respect to the EU will not only be respected but also implemented. We are a responsible partner and we would like to show that despite the election, all our commitments will be respected," Mr Yeliseyev told this website.

Source:euobserver.com/

Ukraine's Debt Is Manageable

With regard to Christopher Granville's Jan. 18 op-ed "Ukraine is Headed for National Bankruptcy": The country's debt level remains manageable. Ukraine's pre-crisis gross external debt-to-GDP stood at a healthy 57%. After the crisis erupted, debt remained stable at around $100 billion but the contraction of GDP pushed the ratio to an estimated 90% by end-2009. On this measure, Ukraine has a considerably more secure position than emerging European Union peers such as Hungary (186% by 3Q09), Bulgaria (123%) or Slovenia (119%).

Ukraine's end-2009 external public debt amounted to $24 billion, or 21% of GDP. A mere $1 billion out of this amount is due in 2010, with the country's current international reserves totaling $25.3 billion. In the private sector, refinancing the current portion of the external debt ($80 billion in total, $18-$20 billion due in 2010) is hardly a "miracle scenario" since the bulk of this amount is related-party cross-border lending in the corporate sector. Out of an estimated $28 billion that was due in 2009, 82% was rolled over.

Although the budget suffered from the economic downturn (we estimate the 2009 budget gap at about 9% of GDP, or $10 billion), Ukraine financed the deficit without extensive money printing—largely thanks to the IMF stand-by program. This helped to stabilize the currency and reduce inflation to 12.3% in 2009 from above 20% in 2008.

The global commodity recovery is supporting Ukraine's steel giants, and the economy has been growing for three successive quarters at 2.5% on average (10% annualized). We record a clear revival of local, Russian and Western interest in Ukraine's market, with the stock index up 273% from its bottom in March 2009 and 14% so far in 2010.

Source:online.wsj.com/

Ukraine Will Be a Bridge Between East and West

Over the past month, Ukraine has demonstrated twice that it cherishes the values of democracy and the belief that it is important for people to vote. Ukraine's presidential election was validated by all of the major international observer groups as free, fair and transparent, which attested to the Ukrainian people's resolve for a democratic election. The people of Ukraine desired change and their voices were heard. Now we have the great responsibility to help our fellow countrymen, who have cast votes for me hoping for a better life.

This election was defined by a financial and economic crisis that has devastated our country. Before the global economic crisis, Ukraine was one of Europe's top emerging markets, and economic prosperity did not seem beyond our reach in the near term. Now all that has changed, and the people demanded change in the way our Government works in Ukraine.

We must still put an end to the political turmoil that has crippled Ukraine and held our country hostage for so long. I will work ardently to do this as president. The only way that this can be accomplished is for the top political forces and their leaders, immediately after the presidential election results have been declared and certified, to avoid confrontation and unite for the sake of saving our country. We are a nation capable of great things but we will accomplish none of them if we continue to bicker among ourselves and ignore the enormous challenges that we must confront.

Let me say here, a Yanukovych presidency is committed to the integration of European values in Ukraine. Ukraine should make use of its geopolitical advantages and become a bridge between Russia and the West. Developing a good relationship with the West and bridging the gap to Russia will help Ukraine. We should not be forced to make the false choice between the benefits of the East and those of the West. As president I will endeavor to build a bridge between both, not a one-way street in either direction. We are a nation with a European identity, but we have historic cultural and economic ties to Russia as well. The re-establishment of relations with the Russian Federation is consistent with our European ambitions. We will rebuild relations with Moscow as a strategic economic partner. There is no reason that good relations with all of our neighbors cannot be achieved.

If we hope to become a bridge between two important spheres we cannot merely talk and make promises; we must deliver concrete policies and achieve real progress. If we hope to join the European Union we must secure political stability and establish ourselves as an economically viable nation. We must be pragmatic and focused to achieve EU membership. We must create transparent policies that allow our economy to thrive and demonstrate that Ukraine will add value to the EU as a new member state.

I am committed to conducting a policy that would strengthen our links with respected international financial institutions, and increase our standing in the world economic community. My election program, "Ukraine for the People," is a deep and comprehensive plan that clearly specifies how to achieve social and economic progress. It is not an easy task. We will be confronted with the same conflicts as Europe and Washington have faced—how to stimulate our economy to create jobs while not decreasing the social protections needed by our citizens. We must defeat corruption, which has become rampant over the last several years and has damaged our ability to attract foreign investment.

If we hope to join the EU and raise the standard of living of Ukrainians to that of other European nations, we must restore our economy from within. There are three fundamental objectives the Ukrainian economy must achieve in order to thrive: First, we must create jobs; second, we must stabilize prices so people can afford the necessities that they need to live; and third, we must ensure our citizens receive adequate wages and pensions. Giving our citizens a basic economic foundation is a critical first step to restoring the broken bond between the people and the government of Ukraine.

And so that is my agenda—to restore economic vitality and calm the political turbulence that has plagued our nation; to enable Ukraine to take advantage of its natural positioning as a thriving bridge between Russia and the West; and finally, to prepare a free and open Ukraine, economically and politically, to join the European Union when the time comes.

Ukraine is a beautiful country with hard-working and virtuous people who ask only for a chance at a better life. I know that if we can come together, we will achieve great things. As president, I plan to give Ukrainians the nation they deserve—a Ukraine for the people.

Mr. Yanukovych is president-elect of Ukraine.

Source:online.wsj.com/

Tuesday, February 16, 2010

Departing president warns Ukraine is turning East

KIEV, Ukraine — Departing Ukrainian President Viktor Yushchenko says the policies of his newly elected successor risk turning Ukraine back into a Kremlin vassal state.

Yushchenko made some of his harshest statements at a news conference Tuesday against President-elect Viktor Yanukovych, nine days before he is due to leave office.

He says Yanukovych's plans are degrading to the nation and the European course it has pursued since Yushchenko took office in 2005.

He lambasted Yanukovych's plans to give Russia a stake in Ukraine's natural gas pipelines and to extend the lease Russia has on a Black Sea naval base.

Yanukovych says in response that he will pursue a balanced and pragmatic foreign policy.

Source:AFP

Parliament canceled decision on carrying out of election to local councils on May 30, 2010

The parliament adopted a resolution “On recognition invalid of resolution of the Verkhovna Rada of Ukraine “On appointing of regular election of deputies of the local councils, and village, settlement and city heads in 2010”.

According to an UNIAN correspondent, 250 out of 420 lawmakers registered in the session hall voted for this decision.

This resolution cancels decision of the parliament concerning carrying out of election on May 30, 2010.

Source:unian.net/

Tymoshenko said she is not about to resign from post of PM – Zvarych

At the meeting with lawmakers from the Our Ukraine – People’s Self Defense faction Yulia Tymoshenko said that she is not about to resign from the post of the Prime Minister of Ukraine.
According to an UNIAN correspondent, lawmaker from the OU-PSD Roman Zvarych said this in the interview to journalists.

“We heard from the Prime Minister of Ukraine that she is not about to send in her resignation”, said R. Zvarych.

Source:unian.net/

Yushchenko says Stepan Bandera should not be deprived of Hero of Ukraine title

Incumbent President of Ukraine Victor Yushchenko has said he is sure that his decree conferring the title of Hero of Ukraine to Stepan Bandera will not be canceled.

"I'm sure that nobody will dare cancel the decree of President Yushchenko regarding this issue," has said at a press conference in Kyiv on Feb. 16.

He noted that the decree wasn't a political step and called on the Ukrainian nation to respect its own history.

According to Yushchenko, Victor Yanukovych was elected president of an independent country, and he would not have good prospects if there were no patriots.

As reported, on Jan. 22, the Ukrainian president conferred the Hero of Ukraine rank to Bandera, leader of a Ukrainian underground militant nationalist movement in the 1940s.

Source:unian.net/

Adherents of PR pitched tents near premises of Supreme Administrative Court of Ukraine

Adherents of the Party of Regions pitched nearly 30 tents near the premises of the Supreme Administrative Court of Ukraine.

According to an UNIAN correspondent, the tents of the Party of Regions are pitched at the corner of Grushevskogo Street and Moskovskaya Street.

Adherents of newly elected President of Ukraine Victor Yanukovych are in tents.

Moreover, some tents are pitched near an entrance to the Supreme Administrative Court of Ukraine.

Source:unian.net/

Ukraine’s First Eurobond Sale Since 2007 May Fail

Feb. 16 (Bloomberg) -- Ukraine’s first foreign debt sale in almost three years may fail as the political deadlock following the presidential election keeps emergency funds frozen and drains international investor confidence.

The Economy Ministry said in January it plans to sell as much as $1 billion in foreign-currency debt next quarter, its first international sale since June 2007. Ukraine needs to finance a budget deficit of about 13 percent of gross domestic product and cover $500 million in domestic debt coming due in April.

Half a decade after the Orange Revolution, the former Soviet republic doesn’t have enough funds to stay afloat without emergency relief. The International Monetary Fund has shelved its $16.4 billion loan since November after Ukraine’s Cabinet was unable to commit to budget cuts, and the Feb. 7 presidential election has yet to end the political unrest that’s crippled the economy.

The Eurobond sale “will only be possible with an IMF program in place,” Oliver Weeks, an economist at Morgan Stanley in London, said in an e-mailed reply to questions. “Without the IMF monitoring or some sign it’s imminent, I don’t think investors will have enough confidence the fiscal position is getting back on a sustainable path to lend at reasonable commercial rates. There is always some price you can borrow at, but I think in this case it would be too high.”



Political Powerplay



President-elect Viktor Yanukovych’s party has said it wants to topple Prime Minister Yulia Timoshenko’s government and is preparing a no-confidence vote this week.

If Yanukovych’s allies succeed, they’ll have about a month before the planned debt sale to form a new Cabinet and agree on budget cuts that the current administration has been unable to pass since October. If it fails to regain IMF favor by April, Ukraine may be without external funds until autumn.

“If Yanukovych can’t get a parliamentary majority to oust Timoshenko, he’ll have to call elections, which might be held in September,” said Andriy Nesteruk, an analyst at Kiev-based Phoenix-Capital investment bank. “If that happens, the IMF won’t return to Ukraine until October.”

Morgan Stanley’s Weeks said that even without a parliamentary election, the IMF program probably won’t be resumed until summer.

“We don’t have money to cover our state budget gap,” Nesteruk said. “We have significant budget problems, the situation is close to catastrophic.”



‘Tight’ Outlook



Ukraine’s debt is the third most expensive in the world to insure after Argentina’s and Venezuela’s, according to credit default swap spreads. The five-year CDS contract rose 6 basis points last week to 977, signaling a heightened perceived credit risk. The yield on the existing Eurobond, which matures in 2016, has risen 12 basis points since the election, and was trading 2 basis points higher at 10.57 percent at 1:57 p.m. in Kiev.

“Investors don’t like uncertainty,” Frank Gill, a credit analyst at Standard & Poor’s Ratings Services in London, said in an e-mailed response to questions. “The outlook for financing in 2010 continues to be tight.”

S&P rates Ukraine’s foreign currency debt CCC+, seven levels below investment grade. Moody’s Investors Service ranks Ukraine’s debt B2, five notches below investment grade, while Fitch Ratings grades the country’s credit B-, the sixth-highest junk grade.

“It’s probably not the best time for them to be borrowing,” said Ian McCall, Director of Argo Capital Management Ltd in London, which manages about $500 million in emerging market debt. At the same time, McCall said, with lenders enjoying great leverage, “for us as investors, that can be one of the most interesting times to be lending to a sovereign.”



‘The Other Way’



Before the election, CDS swaps had eased from 1,232 basis points at the beginning of the year to 949 basis points on Jan. 18, one day after the first round of the election that ousted President Viktor Yushchenko.

“The market had rallied back on the expectation of an IMF deal,” said Timothy Ash, head of emerging market research at Royal Bank of Scotland Plc in London. “They will need to clarify the situation with the IMF pretty soon or we could see the market going the other way.” The government won’t be able “to fund the state budget deficit without IMF financing.”

The lack of funds is unlikely to trigger a sovereign default, economists said. Without external financing, the government can cover domestic debt obligations by asking the central bank to print money, though that would fuel inflation. Consumer prices rose an annual 11.1 percent last month, compared with a peak of 31.1 percent in May 2008, according to the State Statistics Committee in Kiev.

Ukraine can also finance its next payment for Russian gas, due on March 7 for February consumption, through a procedure approved by the IMF last year: It deposits Treasury notes at the central bank, the bank converts them into foreign currency from international reserves, and the currency is used to pay for the gas.



‘A Bit Dangerous’



The country can survive until September without IMF help, according to Dmitry Gourov, a Vienna-based economist at UniCredit CAIB AG, a unit of Italy’s biggest bank. “It’s September when the level of reserves would become a bit dangerous,” he said.

Gourov estimates the government would only be able to attract investors to an international bond sale without the IMF program back on track if it offered about 10 percentage points more in interest than investors would be willing to accept with the Fund monitoring the country’s finances.

That rate of interest hasn’t been announced, though Deputy Finance Minister Ihor Umanskyi said on Jan. 27 Ukraine expects to pay a “one-digit” interest rate on the borrowing.

The country’s gross international reserves stood at $25.3 billion at the end of January, according to central bank data.

Ukraine’s economy contracted an annual 7 percent last quarter, the statistics office said yesterday, bringing the average decline last year to about 15 percent.
With assistance from Denis Maternovsky in Moscow, Agnes Lovasz in London and Halia Pavliva in Kiev. Editors: Tasneem Brogger, Chris Kirkham.

Source:businessweek.com/

Ukraine’s Economy Declined 15%, Economy Ministry Says

Feb. 16 (Bloomberg) -- Ukraine’s economic output plunged 15 percent last year, the most since at least 1996, because of the global financial crisis, the Economy Ministry said.

Gross domestic product shrank 7 percent on an annual basis in the fourth quarter after slumping 15.9 percent in the third, 17.8 percent in the second and 20.3 percent in the first three months, the state statistics committee in Kiev said yesterday.

The fourth-quarter “decline at a slower pace was because of a gradual recovery in industrial production,” Economy Minister Bohdan Danylyshyn said today in an e-mailed statement. “The main problem for the economic recovery is lack of credits.”

The global recession slashed demand for Ukrainian exports and dried up investment, forcing the country to turn for an International Monetary Fund emergency loan in November 2008 to stay afloat. Cooperation with the Washington-based lender has been stalled for a fourth month as the Cabinet failed to adopt the 2010 state budget and cut spending.

GDP rose a seasonally adjusted 1.9 percent in the fourth quarter from the previous quarter, while remaining flat in the third quarter from the second, according to the statement.

Source:businessweek.com/

Ukrainian oligarch's daughter has designer handbag containing £4m of jewellery stolen in Paris limousine

A Ukrainian oligarch's daughter claims she had £4million of jewellery in her designer handbag when it was stolen in Paris.
Kristina Chernovetskaya, who is in her 20s, was travelling in a chauffeur-driven limousine she had hired at Charles de Gaule airport when it was targeted by a lone thief.
He is said to have forced open the back door of the car after smashing a rear window as it waiting in a traffic jam in the St Denis area of the French




Snatched: Kristina Chernovetskaya says her designer handbag containing £4million of jewellery was stolen as she being driven through the St Denis area of Paris (pictured)
Miss Chernovetskaya, a glamorous socialite whose father Leonid Chernovetsky is a former multi-millionaire banker and the mayor of Kiev, told police that the man fled with her handbag, but left behind thousands of pounds in cash.
'The bag was snatched by the robber who made off on foot,' said a detective investigating the theft, which happened at noon yesterday.
'The victim has told us that the bag contained jewels, rings and earrings worth more than $6million.
'Her chauffeur tried to give chase but didn't get anywhere near the robber, but a vast amount of hard cash belonging to the victim was left behind.'
Miss Chernovestkaya's family is one of the most controversial in the former Soviet Union. Her father, 58, regularly makes the headlines for his financial dealings.
He made millions out of the break up of the old communist regime, setting up the Pravex Bank, one of the largest in the Ukraine.





Glamorous: Miss Chernovestkya is the socialite daughter of former Kiev mayor Leonid, who formerly ran the Pravex Bank
The bank's management was regularly accused of using coercive methods to get loan money back from customers, before it was sold for more than £500million.
Mr Chernovestky went on to become mayor of Kiev, the Ukrainian capital, in 2006 and has hinted that he intends to run for president at some stage.
In 2008, he was given the Order of Yaroslav the Wise, a top civilian award in the Ukraine. At the time, Prime Minister Yulia Tymoshenko urged President Victor Yushchenko to 'stop granting decorations to corrupt people'.
If the handbag is not recovered, Miss Chernovetskaya will have to try and claim back her loss through insurers

Source:dailymail.co.uk/

Video of election cheating, Ukraine loser claims

The party of Prime Minister Yulia Tymoshenko was to file an official complaint today with a top Ukrainian court contesting the results of presidential elections won by Viktor Yanukovych, her top aide said.

"We are preparing a complaint with the supreme administrative court which will be filed tomorrow," said Olexander Turchynov, deputy prime minister and Tymoshenko's right-hand man.

He said Tymoshenko's election headquarters had video proof and eyewitness evidence that showed mass falsifications in favour of Yanukovych at the Feb. 7 polls.

A spokesman for Ukraine's supreme administrative court said the body had received a complaint from Tymoshenko's faction demanding that the results of the election be declared illegal.

But a legal official from the Bloc Yulia Tymoshenko, Sergiy Vlasenko, said that this had been made on the personal initiative of an MP and the complaint contained errors.

Yanukovych won by a slim margin of some 3.5 per cent or just under 890,000 votes, according to full results published on Sunday which formally declared him as the winner.

Tymoshenko on Saturday refused to recognize Yanukovych as president.

She also said that some observers from a trans-Atlantic security group had said they were prepared to declare in the courts that there had been "systematic fraud" in the election.

Other international observers had cleared the election of any sort of voting irregularities.

Source:edmontonjournal.com/

Russia: Premier Congratulates Winner of Ukraine Vote

Prime Minister Vladimir V. Putin of Russia congratulated Viktor F. Yanukovich on Monday for winning Ukraine’s presidential election, well after many other world leaders had done so. But Mr. Putin may have had his reasons for delaying. In 2004, he was accused of meddling in Ukraine’s affairs by making a similar call to Mr. Yanukovich while the presidential election results were still being contested. Mr. Yanukovich’s campaign was accused of fraud, the election was thrown out and the Orange Revolution happened. This time, Mr. Putin waited until Mr. Yanukovich’s victory was certified.

Source:nytimes.com/

Canada's Harper congratulates president-elect Yanukovych of Ukraine

Canadian Prime Minister Stephen Harper Monday congratulated president-elect Viktor Yanukovych following his victory in Ukraine's Feb. 7 presidential vote.

"I extend Canada's congratulations to Viktor Yanukovych on his victory," Harper said. "Ukraine is a key partner for Canada in Europe, and has an important role in the development of democracy and security in the region."

In a release by his office in Ottawa, the prime minister said that he looks forward to working closely with president-elect Yanukovych to continue to advance the two countries' common values and shared interests.

Source:english.people.com.cn/

Monday, February 15, 2010

Ukraine's polls reflect desire for better ties with Russia: Medvedev

Russian President Dmitry Medvedev said on Monday the results of Ukraine's presidential election reflected the country's desire to improve ties with Russia.

"The polls, held under the generally recognized international standards, confirmed Ukrainians' desire to put an end to historically doomed attempts to stir up hostility between the peoples of our countries," Medvedev said in a congratulatory message to Ukrainian president-elect Viktor Yanukovych.

Medvedev expressed the hope that Russia-Ukraine relations would return to a partnership approach under the new president, according to the Kremlin press service.

"I expect that Russian-Ukrainian cooperation will again acquire a constructive and fruitful nature of true partnership," he said. "I am sure that, through joint efforts, we will be able to inject a new impetus to the development of mutually beneficial bilateral relations."

Medvedev also invited Yanukovych to visit Moscow to discuss a wide range of issues concerning bilateral cooperation.

Ties between the two former Soviet neighbors have been strained in recent years over pro-West incumbent President Viktor Yushchenko's bid for NATO membership, gas disputes, and Ukraine's support for Georgia in the 2008 Caucasus war.

Ukraine's Central Election Commission confirmed on Sunday that opposition leader Yanukovych defeated Prime Minister Yulia Tymoshenko in a bitterly fought runoff on Feb. 7.

Source:english.people.com.cn/

Saturday, February 13, 2010

Tymoshenko says Ukraine poll rigged, vows court challenge

KIEV, Feb. 13 (Xinhua) -- Ukrainian Prime Minister Yulia Tymoshenko said on Saturday that she had evidence of fraud in the Feb. 7 presidential runoff, and would challenge the result in court.

Preliminary results from the Ukraine Central Election Commission showed that Tymoshenko was defeated by opposition leader Viktor Yanukovych by just 3.5 percentage points.





Ukraine's Prime Minister and presidential candidate Yulia Tymoshenko speaks during her televised address in Kiev February 13, 2010. Ukrainian Prime Minister Yulia Tymoshenko declared on Saturday that she had proof of cheating in a February 7 presidential election by her rival Viktor Yanukovich which she would take to court to contest his victory. (Xinhua/Reuters Photo)


Tymoshenko said more than 1 million votes had been falsified or miscounted, and irregularities were particularly rampant in certain Russian-speaking areas.

"I want to clearly state: Yanukovych is not our president. Whatever happens in the future, he will never become the legitimately elected president of Ukraine," she said in a televised broadcast to the nation.

"I have made the only decision I can make -- to challenge the results in court," Tymoshenko said. "Not going to the courts today would mean leaving Ukraine to criminals without a fight."

Observers from the Organization for Security and Cooperation in Europe (OSCE) have declared the elections "professional, transparent and honest" in a joint statement with other international observers.

Some foreign leaders including U.S. President Barack Obama and NATO Secretary-General Anders Fogh Rasmussen have already congratulated Yanukovych on his election win.

A Ukrainian electoral official told Xinhua earlier this week that Yanukovych's victory was "unassailable," though it was won by a small margin.

Volodymyr Fesenko, director of the Penta Center of Applied Political Studies, said Tymoshenko's attempt to challenge the election results in court was meaningless and would not lead to a revote like the one at the end of 2004 during the "Orange Revolution."

Analysts have ruled out the possibility of an outbreak of street protests, citing decreasing revolutionary fervor among the population, who have benefited little from the "Orange Revolution."

Instead, they predict a smooth transition of power from incumbent president Viktor Yushchenko to Yanukovych.

Source:news.xinhuanet.com/

Obama congratulates Yanukovych on Ukraine polls win

WASHINGTON DCUNITED STATES President Barack Obama on Thursday called Viktor Yanukovych to congratulate him on winning Ukraine's presidential election, describing the poll as a new step forward for democracy.

Pro-Russian Yanukovych beat Prime Minister Yulia Tymoshenko by 3.5 percent in Sunday's vote, but she has not yet conceded and her party has alleged substantial fraud.

International observers and Western states however hailed the vote as fair and clean.

"President Obama called Viktor Yanukovych of Ukraine today to congratulate him on his election and wish him success in carrying out his mandate," the White House said in a statement.

"This peaceful expression of the political will of Ukrainian voters is another positive step in strengthening democracy in Ukraine."

The statement said Obama and Yanukovych agreed on the need to continue cooperation on nuclear non-proliferation and wished their respective teams luck in the Winter Olympics in Vancouver, beginning on Friday.

Ukrainian President Viktor Yushchenko was seen as more pro-western than Yanukovych, who is seen here as likely to lean closer to Moscow than the European Union and the United States.

The White House statement looked forward to what is likely to be a more uncertain time in US-Ukrainian relations.

"The strategic partnership between the United States and Ukraine is based on shared interests and values," it said.

"These include expanding democracy and prosperity, protecting security and territorial integrity, strengthening the rule of law, promoting non-proliferation, and supporting reform in Ukraine?s economic and energy sectors.

"The United States looks forward to working with President-elect Yanukovych and continuing to strengthen our cooperation with Ukraine?s government and its Parliamentary leaders."

Source:AFP

Ukraine election results falsified – Timoshenko

Ukraine’s presidential candidate Yulia Timoshenko will not recognize the victory of her rival Viktor Yanukovich. In a televised address on Saturday she said she would challenge the results of the election in court.

Yahoo StumbleUpon Google Live Technorati del.icio.us Digg Reddit Mixx Propeller Timoshenko has claimed more than a million votes across the country were fraudulent.

“These votes are sufficient for us to win,” she said, adding that some OSCE observers are ready to support her in court and provide videos supporting her stance.

“I am responsible before the country, and this obliges me to fight for justice. I have made the only possible decision – to challenge the results in court,” she stated.

Although official results will not be announced until next week, the final tally indicates Timoshenko receiving some 3 per cent fewer votes than Yanukovich, who had almost 49 per cent.

Source:rt.com/

Tuesday, February 9, 2010

Word awaited from Tymoshenko on Ukraine presidential election

Against a background of apparent hints that she should accept her defeat in Ukraine’s presidential elections, word was awaited from Yulia Tymoshenko on February 9 2010 as to whether she would concede – or contest the result in court.

Results of the second round of voting on February 7 gave a narrow margin of victory to Viktor Yanukovych, the pro-Moscow leader who has called on Tymoshenko to concede and to resign as Ukraine’s prime minister.

In a statement on the elections, of which the first round was held on January 17, European Union foreign policy chief Catherine Ashton said that she welcomed the completion of voting and the "positive assessment" given to the process by the OSCE/ODIHR-led International Election Observation Mission.

"The generally calm atmosphere in which the elections were conducted, the open campaign in the media and the fact that the electorate were provided with a genuine choice represent important achievements in Ukraine’s democratic development," Ashton said.

"I should in particular like to congratulate the people of Ukraine for the high turn out in both rounds of the elections and the strong commitment demonstrated to the democratic process," she said.

Ashton said that the EU "remains committed to deepening the relationship with Ukraine and supporting it in implementing its reform agenda. It looks forward to working with the new president to this end".

Tymoshenko was expected to hold a news conference some time on February 9, after twice postponing addressing the media the previous day, the BBC said.

Joao Soares of the OSCE election observers team told journalists on February 8: "It is now time for the country’s political leaders to listen to the people’s verdict".

Tymoshenko earlier indicated that she would not accept the result, with her camp alleging election irregularities. Before the second round, Tymoshenko said that she might unleash a second Orange Revolution, a reference to the events of six years ago that saw popular protests bring about a change of power in Kyiv.

In turn, Yanukovych’s camp has said that they would "defend his victory".

With the EU and the OSCE signalling acceptance of the election process, however, Tymoshenko may lack allies in contesting the result. By the morning of February 9, official reaction from Washington and Moscow was awaited.

Source:

Ukraine election result rejected

Yulia Tymoshenko, the loser of Sunday's Ukrainian election, "will never" accept the legitimacy of winner Viktor Yanukovich as the country's president, a Ukrainian newspaper quoting her as saying today.

"I will never recognise the legitimacy of of Yanukovich's victory with such elections," the Ukrainska Pravda daily cited Ms Tymoshenko, who is currently Ukraine's prime minister, as telling a meeting of her party yesterday evening.

Ms Tymoshenko had instructed her lawyers to prepare to contest the electoral results in court, the newspaper's website reported. She also suggested holding a third round of voting, the newspaper added.

Her officials could not immediately be reached for comment on the report.

Ms Tymoshenko postponed a news conference she had been scheduled to hold yesterday until today.

Ukrainska Pravda reported that some members of Ms Tymoshenko's party disagreed with her, calling instead for her to acknowledge defeat, step down as prime minister and move into opposition.

Mr Yanukovich, who won the election by a slender 2.9 per cent margin with nearly all votes counted, has called on Ms Tymoshenko to concede defeat.

Western observers declared the elections to be broadly free and fair and in line with democratic standards

Source:irishtimes.com/

Monday, February 8, 2010

Ukraine voters ready to accept ‘lesser evil' Yanukovich

A mood of resignation settled on Kiev on Monday, the city that five years ago fizzed with protest against a rigged election won by Viktor Yanukovich, now Ukraine's president-in-waiting.

The beefy ex-mechanic narrowly won Sunday's election thanks to the votes of Ukraine's Russian-speaking industrial east and the frustration of the European-friendly west with a revolution turned sour.

Fiery revolutionary and glamorous prime minister, Yulia Tymoshenko, was silent on Monday, ignoring a call by international election monitors to accept defeat and shake hands with the victor.

But there was no sign of the street demonstrations that met Yanukovich's last victory in 2004, when tens of thousands braved sub-zero temperatures on Independence Square to protest the fraud of a sleazy post-Soviet establishment.

The euphoria of 2004 quickly turned to disappointment with the paralyzing infighting of Orange Revolution co-architects Ms. Tymoshenko and Viktor Yushchenko, the man swept to the presidency but who proved ineffective and out of touch.

The tandem proved incapable of governing through an economic crisis that saw no improvement in living standards.

“The expectations of the people were not met,” said 72-year-old pensioner Olexiy Onash. “Many people have lost faith in what was once good.”

Like others in snow-bound Kiev, he admitted voting reluctantly for Ms. Tymoshenko out of no personal affection for the former gas tycoon but a visceral distaste for Mr. Yanukovich, a rough-hewn 59-year-old from the hard-scrabble mining region of Donetsk in the east.

“I wasn't going to vote for anyone, then I saw those drunken idiots from Donetsk, and I thought if it's him (Yanukovich), then everything will be terrible,” said Onash. “There was no option. I picked the lesser evil.”

Like Ms. Tymoshenko, Mr. Yanukovich says he wants integration with Europe. But he is seen as closer to Moscow, and was tagged the Kremlin's stooge in 2004.

Ms. Tymoshenko won 65 per cent of votes in the capital against 26 per cent for Mr. Yanukovich. But tellingly, more than 8 per cent voted against both, an option in Ukrainian elections. The election again exposed Ukraine's deep divide.

Ukrainians of Kiev harbour particular disappointment in Mr. Yushchenko, who came a humiliating fifth in the first round of the election in January.

“Our president made big mistakes. He's smart, and a good president, but he found power difficult,” said musician Ihor Rudy, 38. “Some people are probably angry that nothing got better for them,” he said. “I'm for a new generation of politicians.”

There was no talk of replaying the Orange Revolution.

“I'm sorry, but you can't have a revolution every five years,” said 28-year-old law graduate Svitlana.

“In five years, maybe those people who were for Yushchenko are disappointed in those leaders. Now, maybe the other half of Ukraine will face disappointment with the reign of Yanukovich.”

Source:theglobeandmail.com/

Ukraine’s Yanukovych Faces Challenge to Deliver Campaign Goals?

By James M. Gomez, Daryna Krasnolutska and Kateryna Choursina

Feb. 8 (Bloomberg) -- For Viktor Yanukovych, who won Ukraine’s presidency five years after the Supreme Court threw out his first victory because of fraud, the hard part is behind him. Now the harder part begins, analysts say.

With just over 2 percentage points between Yanukovych’s 48.38 percent and rival Yulia Timoshenko’s 46.00 percent in yesterday’s vote, Yanukovych’s vow to unfreeze a $16.4 billion bailout, boost trade with the European Union and end years of political gridlock may be shelved as a battle over the election results and control over parliament looms.

“Yanukovych will face mighty challenges ahead,” said Ivan Tchakarov, an emerging-markets analyst at London-based Nomura Holdings Inc., in a note to clients today. “Timoshenko has vowed to contest the elections in court if there is proof that they have been rigged.”

Yanukovych, 59, whose base of support is in the Russian- speaking east, campaigned across the former Soviet republic to erase his reputation as a Kremlin puppet and stressed that he is as enthusiastic about the EU as Timoshenko, who drew her support from among the followers of the 2004 Orange Revolution, which she co-led with outgoing President Viktor Yushchenko. Bickering between those two former allies disappointed voters and brought decision-making to a halt.



New Image



In the last weeks of the campaign, political analysts and emerging-market economists acknowledged he was succeeding in forging a new image of a business- and export-friendly candidate who would stabilize markets and push the country out of a recession.

The small margin of victory threatens to unravel those promises, at least for the next few months as an expected court challenge runs its course and he ponders holding early parliamentary elections to oust Timoshenko from her current post as prime minister.

“The margin is insignificant and doesn’t give Yanukovych a very convincing victory,” said Yuriy Yakymenko, the head of legal and political studies at the Kiev-based Razumkov Center for Economic and Political Studies. “There will be court action now and orchestrated street demonstrations will be used as a background to this or as an element of pressure.”

Yanukovych’s quest for the presidency has been a struggle from the beginning. In 2004, when he was prime minister, he was handpicked by then-President Leonid Kuchma, the Moscow-leaning head of state, to be his successor. Vladimir Putin, who was Russian president at the time, publicly threw he support behind Yanukovych and was the first to congratulate him for his initial victory in November 2004.



Protests



Yanukovych didn’t count on the millions of demonstrators, who spent a wintry December on the streets, to challenge the results. In the end, his win was thrown out by the Supreme Court during what was later coined the Orange Revolution. His challenger, Viktor Yushchenko went on to win the presidency on promises to bring the country into the EU and the North Atlantic Treaty Organization.

Yanukovych, who was born in a small town near Russian- speaking Donetsk in eastern Ukraine, has never backed down on his insistence that Russian be recognized as the country’s second official language. It was one of his few campaign goals that differed from Timoshenko’s platform, and he has stressed that he would repair relations with Russia that were soured under Yushchenko.



Splintered Forces



This time around, he also moved to embrace the western part of the country as well and wooed voters with a pledge to cut taxes and attract investors to help return the economy to growth of 6 to 7 percent a year. Gross domestic product slumped about 15 percent in 2009, Ukraine’s worst recession since 1994.

During the campaign, Timoshenko tried to rally the now- splintered Orange forces behind her by warned voters that a Yanukovych win would unravel the advances by Yushchenko and Timoshenko’s government.

Her campaign also passed out pamphlets that described his jail time in 1968 on a robbery conviction and 1970 for fighting. His convictions were later wiped from his record by a court, according to his campaign statements in 2004.

The past jail time “hurts a person but it fortifies you as well,” Yanukovych said on Jan. 30 in a local television interview. “It gives you the chance to think about life, makes a person more responsible.”



Fear Subsides



Razumkov’s Yakymenko said his past life had little impact on the campaign.

“They are not afraid of his biography,” he said. “They knew all the facts and do not consider his biography as something that hampers him from being a leader.”

Yanukovych may have to wait to show the nation those qualities, analysts said. Yanukovych yesterday called on Timoshenko to step down as prime minister so he could order a new coalition in the legislature that would abide by his policies.

That most likely will not happen, analysts said, leaving him with no choice but to dissolve parliament as soon as he is inaugurated and call legislative elections for as early as May.

Still, elections “would leave the country without leadership and without an IMF program for some time,” said Dmitry Gourov, a Unicredit emerging-market economist in Vienna. “This would not be welcome.”

Source:businessweek.com

Ukraine: so farewell, then, Princess Leia

It looks as if Yulia Tymoshenko has lost the Ukraine presidential election. Her supporters are joined in their distress by newspaper production staff the world over. Rather like the French president’s wife who is used to illustrate anything faintly Gallic in every paper every day, Mrs Tymoshenko’s Princess Leia hair and pleasant female countenance made her stand out among the rugged, potato-faced eastern European villains. (I am paraphrasing the thoughts of British newspaper staff here.)

But how on earth are newspapers to illustrate their stories from now on? I am predicting even fewer articles than the already meagre quota, all with picture captions like: “Yulia Tymoshenko (above) still lives in Ukraine, a country whose president yesterday said…”

Moving on, I hope she does concede gracefully at a press conference on Tuesday. Ukraine needs to move swiftly forwards from its ugly election campaign. The new president, Viktor Yanukovich, needs to crack on with a spending clampdown in order to restore the flow of emergency IMF funds to his beleaguered economy. He hasn’t shown much appetite for that so far, promising instead to raise the standard of living everywhere, but I am assuming that campaign promises will soon give way to reality.

We in other countries need this geopolitically important place, central to the West’s energy security, to put divisive and destructive politics behind it. The West has rather neglected Ukraine recently – it’s hard to do business with a country riven with corruption and whose political class is so childlishly at war with itself. In the process we have allowed Russia to pull the strings more skilfully. The Kremlin was going to win whichever of the two presidential candidiates prevailed – no one talks in Ukraine any more of joining Nato and its Orange Revolution that promised to tilt the country westwards is a distant memory.

Source:blogs.telegraph.co.uk/

Ukraine vote reopens European question

The result of the presidential election in Ukraine will have a bearing on the country’s future relationship with Europe.

Euronews asked political analyst Olexiy Garan when an eventual membership of the European Union for Ukraine could be expected.

“After the Orange Revolution there was huge enthusiasm about Ukraine – both within Ukraine and outside,” he said. “However, from the European Union we did not see clear signals and did not see a clear action plan on how to draw Ukraine closer to Europe.

“So, definitely, it’s in Ukrainian interest to do its own homework but also the position of the EU is also very important. And some of the EU countries are more willing to accept Ukraine in the EU, but some are still reluctant.”

If there is reticence in Europe, the same cannot be said for Russia, which has made it clear it wants closer ties with Kiev.

The port of Sevastopol on the Crimean Peninsula is symbolic of the shared history of the two countries. Russia’s Black Sea Fleet is based there, along with thousands of Russian naval personnel and their families. And most of the two million inhabitants are ethnic Russians.

Most of the votes in Sevastopol were doubtless going to Yanukovych.

Source:euronews.net/

Sunday, February 7, 2010

Ukrainian election: final battle begins

According to exit polls, the leader of the Party of Regions, Viktor Yanukovich, beat Yulia Timoshenko by up to 6 % in Ukraine’s presidential runoff.

Official results are yet to be announced.

Following hectic weeks of tough electioneering, scandals and mutual accusations, D-Day has come for the presidential hopefuls.

Adding fuel to the fire, an electoral reform bill pushed forward by Yanukovich’s party, the Party of Regions, was passed just ahead of the runoff. Timoshenko, in response, threatened to urge people to take to streets.

Having left behind 16 other rivals in the first round of presidential voting, including incumbent president Yushchenko, the February 7 runoff election will determine both the future course of the candidates, and Ukraine itself.

Yanukovich, the leader of the opposition Party of Regions, defeated current Premier Timoshenko 35% to 25% in the first round of voting on January 17.


The incumbent president, Viktor Yushchenko, lost his bid for retaining power after only receiving a modest 5% of the votes. Five years after the Orange Revolution which swept him to power, Yushchenko’s former ally and opponent are back in Ukraine’s political ring giving the whole election a feeling of déjà vu.

Going to polls, Ukrainians face an uneasy choice – deciding on a path for the country of 46 million people for the next five years. The population is fed up with the political fuss of the last two years and wants stability and confidence in the future.

Read more

The question is which of the two contenders can lead Ukraine to stability – both economically and politically. Some Ukrainians do not trust either candidate and are tired of the fight for power between the two. Those are the voters who are likely to vote “against all” or simply ignore the election, especially since the weather in February is not very welcoming.

Analysts are divided on who will finally win the presidential seat. While many see Yanukovich as the front runner, others are confident that Timoshenko will manage to close the gap by picking up votes that were splintered among candidates in the first round.

The latest polls, however, gave Yanukovich a 6 to 12% lead in the head-to-head runoff.

Another thing that worries many is whether force will be used after the election results are announced. Observers predict there will be claims of vote fraud and do not exclude the possibility that people may take to streets in protest. In an attempt to avoid arepetition of the 2004 scenario, a court in Kiev has banned rallies on the capital's central Maidan square – the site of past protests – throughout this month.

East or West? Yulia or Viktor?
Traditionally, since the country became independent in 1991, voters in Ukraine have been split in their political preferences and each election has turned into a bitter rivalry, not only between the candidates, but also between the pro-Russian East and the Europe-leaning West.

Both Timoshenko and Yanukovich want to integrate with Europe and improve ties with Russia as well. Both have been trying to lure voters with lavish promises.

However, the 49-year-old Prime Minister, one of the leaders of the Orange Revolution, is seen to be more pro-Western. Nicknamed the “Gas Princess” for her earlier involvement in the energy sector (where she is believed to have earned a fortune), she has an ambitious plan to bring Ukraine into the EU within five years if she wins the election.

Timoshenko believes “we are capable of rising to the level of European standards on democracy, human rights, quality of life and political culture".

"And once we build Europe in Ukraine, Ukraine will become a member of the European Union. The potential of existing cooperation and mutually beneficial economic cooperation will serve as the foundation for friendly relations with Russia and other CIS countries."

She stands for pragmatic relations with all countries “based on the priority of national interests and significantly increasing Ukraine’s competitiveness in the global arena”.

As for Ukraine joining any collective security system, it “will be decided only by a referendum.”

As part of her aggressive presidential campaign, posters were placed throughout the country showing Timoshenko wearing a Ukrainian peasant-style hair braid and stating: "Ukraine will win! Ukraine means you!"

The charismatic politician vows to fight for “justice and order” and promises to destroy “the corrupt alliance forged between power and oligarchy.”

During her campaign, she carefully crafted an image of being a devoted fighter against corruption, constantly casting accusations at her opponents.

“We will establish order in government and there will be order in the country,” her presidential program reads. Energy independence, a health insurance system “accessible to all citizens” and “fair distribution of wealth” round out her platform.

However, Timoshenko's insistence that Ukrainian should be the country's only legitimate language for education, business and in the courts made her unpopular among the Russian-speaking population of the East and South of the country.

In September of last year, she issued a directive obliging teachers to speak only Ukrainian at school, even during breaks. On February 4, three days prior to the vote, Ukraine’s Constitutional Court found that the Cabinet of ministers exceeded its powers and the decree was declared unconstitutional.

Her opponent, Yanukovich, on the contrary, promised that if he wins the presidency he will pass a law permitting the broad use of the Russian language within those territories populated mainly by Russian speakers.

Characterizing his bitter rival, Timoshenko said "we are from different worlds, from different galaxies, from different dimensions", Itar-Tass wrote.

In 2004, he was declared the winner of the presidential vote, but later, following street protests that became known as the Orange Revolution, his victory was ruled fraudulent and annulled.

Just like his opponent, the 59-year-old sees integration with the EU among his aims, if elected.

“Europe does not give us prospects, and we understand it,” he said in an interview with the Spanish newspaper “El Pais”, as quoted on Yanukovich’s official website. “Therefore, we should work in order to modernize the country by applying social, economic and technical European criteria. ‘Marriage’ with the EU could only take place with the consent of both sides. We do not want to compel a fiancée, but we will fulfill our obligations and become reliable partners for Europe, Russia and the US. We would like to have trustful, effective and mutually beneficial relations with all of them,” he said.

However, Yanukovich will not urge the country to join NATO. Also, he hinted that the issue of Russia’s Black Sea Fleet – which is using a naval base in Crimea as part of a 1997 lease agreement that expires in 2017 – is negotiable. Back in November, RIA Novosti wrote, he said that this topic should not be politicized.

“Taking into consideration our international obligations, earlier undertaken by Ukraine, we must not politicize the issue and appear like an unreliable or unpredictable partner,” he said.

Yanukovich said the position of the Ukrainian authorities on the issue was the result of a negative attitude towards Russia.

“[Foreign] policy has to be balanced and mutually beneficial,” Yanukovich added.


His main slogan is "Ukraine for the people." The candidate is quite experienced in politics. Previously, Yanukovich served as Governor of the Donetsk region in eastern Ukraine, where he is still hugely popular. He twice served as prime minister, first under President Leonid Kuchma and then, from August 4, 2006, to December 18, 2007, under current President Yushchenko.

Source:rt.com/

Ukraine votes in tense presidential polls

KIEV (AFP) – Ukrainians voted Sunday in a tense presidential election after a bruising race between two bitter rivals that inflamed tensions and sparked warnings of a repeat of the 2004 Orange Revolution protests.


The dour pro-Russia opposition leader Viktor Yanukovich has been seen as the frontrunner after beating his more charismatic challenger, Prime Minister Yulia Tymoshenko, by a 10 percent margin in first-round elections in January.

But with opinion polls banned since the first round, it remained unclear who would win the presidency of this former Soviet republic of 46 million people, strategically situated between the European Union and Russia.

“I voted for a new Ukraine, a beautiful, European Ukraine where people will live happily,” Tymoshenko said after casting her vote in her home city of Dnipropetrovsk.

Yanukovich meanwhile declared after voting in Kiev that he had voted for “good changes, stability, and a strong Ukraine.”

The two candidates have traded accusations of plotting to rig the vote, and analysts warn the loser is likely to challenge the results in court or hold street protests if the margin of victory is narrow. Related article: Anger and broken dreams as Ukraine votes

Dozens of blue tents surrounded by hundreds of Yanukovich supporters have appeared around key official buildings in Kiev, in a sign that preparations were already underway for post-election protests.

A senior interior ministry official, Volodymyr Mayevski, said Yanukovich had made a request for a gathering of 50,000 people in Kiev but this was not confirmed by the candidate's Regions Party.

Turnout reached 50 percent nationwide by late Sunday afternoon, according to data from the Central Elections Commission.

The highest turnout was seen in the Donetsk and Lugansk regions, a pair of Russian-speaking areas of industrial eastern Ukraine which are considered Yanukovich strongholds.

Polls were to close at 1800 GMT, at which time exit polls were expected to give the first glimpse of voting trends.

As voters queued up across the country in freezing but sunny weather, the two sides swapped accusations of dirty tricks.

Tymoshenko's camp vowed to contest the results in some eastern precincts and accused the Regions Party of sending three MPs to stay overnight in the Central Elections Commission building to put “psychological pressure” on officials.

The prime minister, famed for her long traditional hair braid, was a leader of the 2004 Orange Revolution where tens of thousands protested a disputed presidential election and swept a pro-Western government into power.

Yanukovich, the ultimate loser in 2004 whose initial victory was thrown out by the courts as fraudulent, is seeking a comeback and has been aided by widespread discontent with the results of the Orange Revolution.

Ukrainians were angered by the government's squabbling even as their country was rocked by the global economic crisis, its GDP shrinking by 15 percent in 2009, more than any other major European economy.

“I have always voted for Yanukovich. The Orange team were in power but did nothing,” said Yuri, 30, a businessman, as he cast his vote in Kiev.

But many dislike Yanukovich for his fumbling, inarticulate speech and his criminal record, which includes convictions for theft and assault in the Soviet era that were erased by the courts in 1978.

Elena Poliakova, 60, slammed the candidate as a puppet of Ukraine's powerful oligarchs. “He cannot speak, he only knows how to read out what is written down for him,” she said.

Tymoshenko is far more telegenic and has sought to win votes by pledging to bring Ukraine into the European Union.

But critics call her an opportunist and point out her warm ties with Russian strongman Prime Minister Vladimir Putin.

She has also had her own brushes with the law, having been briefly held in prison on forgery and gas smuggling charges in 2001.

The tarnished hero of the Orange Revolution, President Viktor Yushchenko, has emerged as the biggest loser in the campaign after he was bundled out in the first round in a humiliating fifth-place finish.

In a parting shot at Tymoshenko and Yanukovich, he scoffed on Sunday that Ukraine would be “ashamed” of the result whoever won.

Photo: A man receives a ballot during the presidential election at a polling station in the village of Lutava, some 100 km (62 miles) north from Kiev, February 7, 2010. (Reuters photo)


Source:tehrantimes.com

Yanukovich wins Ukraine election, exit poll shows

Exit polls say opposition leader Viktor Yanukovich has narrowly won Sunday's presidential poll in Ukraine. But a close aide of Prime Minister Yulia Tymoshenko said it was too early to tell.

The National Exit Poll said opposition leader Yanukovich had secured 48.7 percent of the vote against Tymoshenko's 45.5 percent. Another exit poll, by ICTV, said he won 49.8 percent of the vote against her 45.2 percent.

The results, if confirmed, would indicate a remarkable comeback for the opposition leader who was swept aside five years by the 'Orange Revolution.'

But a close aide to Prime Minister Tymoshenko said the close results meant it was too early to say who had won the poll.

"The result of the majority of exit polls are within the margin of statistical error. Conclusions about who the victor is can be made only on the basis of the real results of the Central Election Commission," First Deputy Prime Minister and campaign chief Oleksander Turchynov told journalists.

The election commission is not due to release preliminary results until Monday morning.

Bitter campaign

Sunday's presidential poll among 37 million registered Ukrainian voters followed a bitter electoral campaign during which opinion surveys were not permitted.



Yanukovich won the initial round on 17 January by a ten-percent margin over Tymoshenko.



Each candidate, however, had accused the other of trying to rig the vote and analysts had warned that after ballot stations closed late Sunday their tussle could shift to court wrangles and even street protests.



Ukrainians have become largely disillusioned with politics in their country - almost six years after the euphoria of the 2004 Orange Revolution, when the telegenic Tymoshenko helped sweep the pro-Western Viktor Yushchenko into the office of president on the promise of reform.



In January's first round, Yushchenko ended up in fifth place, paying the price for slumping living standards, diffidence among investors and squabbles with Tymoshenko.



Dire straits



Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: The economic crisis has led to civil unrest in Ukraine
With Gross Domestic Product (GDP) shrinking by 15 percent in 2009, Ukraine was hit worse by the global economic crisis than any other major European economy. Talks have also been delayed over a proposed $16.4-billion (12-billion-euro) bail-out, suspended by the International Monetary Fund (IMF) because of Kyiv's broken promises to control state spending.



In comparison to past Ukrainian elections, when Yanukovich was portrayed as pro-Russian, this time glaring policy differences are few. Both candidates say they want to integrate with Europe, while improving ties with Moscow.



Tymoshenko showed enthusiasm for seeking European Union membership. But, in recent months, she also appeared in photo opportunities alongside Russian Prime Minister Vladimir Putin.



Critics fault ex-mechanic Yanukovich for not explaining vote-rigging that courts said his campaign team allegedly committed in 2004. Analysts say his appeal is strong among voters disillusioned by the Orange Revolution aftermath.



While campaigning ahead of Sunday's run-off, the sharp-tongued Tymoshenko was left on television debating against an empty lectern when the slow-speaking Yanukovich failed to turn up.



Disillusioned voters



Analysts had said the decisive factor in the election could be how many votes the run-off candidates snare outside their traditional strongholds. Yanukovich has extensive support in Ukraine's Russian-speaking east, including its industrial region of Donetsk, while Tymoshenko is popular in nationalist western regions of Ukraine.



But Ukranian voters on Sunday didn't seem enthusiastic about the election.



In the icy capital Kyiv, where temperatures are around minus 12 Celsius (54 Fahrenheit), state worker Olga Petrenko was blunt.



"My vote is against both of them," Petrenko said before the polls closed. "There is no choice between them because there is no difference between them."



Another voter, Mykola, aged 56, said: "I am not expecting much from this election."

Source:dw-world.de/