Ukraine Jailed Tymoshenko

Ukraine Jailed Tymoshenko to Get Doctors’ Health Report.

Ukraine’s jailed former Prime Minister Yulia Tymoshenko will receive a preliminary health report from German doctors in the coming days after her daughter said the politician’s condition is deteriorating.

Tymoshenko is “seriously ill,” Der Spiegel reported, citing a report by doctors from Berlin’s Charité hospital who examined the former prime minister last week. Charité confirmed the visit in a statement, though declined to say what the assessment of Tymoshenko’s health is.

Ukrainian authorities moved the 51-year-old Tymoshenko to a penal colony in the Kharkiv region in eastern Ukraine on Dec. 30, a week after a court upheld her seven-year prison term for signing a gas contract with Russia in 2009. A verdict last year that found Tymoshenko had abused her authority by signing the agreement when she was premier drew condemnation from the European Union, the U.S. as well as Russia.

If “things continue the way they are and she is not given medical care, she will need an operation,” Eugenia Tymoshenko, her daughter, said in a statement on her mother’s website. “This operation can’t be done in the prison.”

The German doctors found that Tymoshenko, who is confined to bed and can’t sleep because of back pain, has a herniated disc, she said.

New Examination

Tymoshenko was examined today at a Kharkiv hospital, following her request and recommendations of foreign doctors, Ukraine’s state Penitentiary Service said today in a statement on its website. She had an X-ray analysis, magnetic resonance imaging and other analysis, according to the statement. The results will be sent to doctors abroad.

The team of doctors from Berlin, including neurologist Karl Max Einhaeupl and physician Norbert Haas, will complete a preliminary report in the next few days after coordinating with an independent visit by Canadian doctors on Dec. 15, the Charité clinic said in an e-mailed statement yesterday.

The German doctors were given “unhindered” access to Tymoshenko and performed their examination for “several hours” in the presence of a prison doctor on Feb. 14, Charité said in the statement. They rejected unspecified “speculation” about Tymoshenko’s health in the Ukrainian media based on their assessment.

Tymoshenko is “ill, in constant pain” and requires laboratory testing, the Financial Times cited Canadian doctor Peter Kujtan as saying. Kujtan’s team was limited in its examination because of a lack of privacy, he said, according to the newspaper.

Tymoshenko has denied the accusations against her and said President Viktor Yanukovych orchestrated the trial to sideline competitors in parliamentary elections this year.

Ukrainian and Russian

Experts predict intensification of Ukrainian and Russian relations

after presidential elections in Russia.

Ukrainian and Russian experts believe that Ukraine and Russia will be able to reach an agreement on the gas issue and other topical issues of bilateral relations after the presidential elections in Russia and Vladimir Putin’s probable victory in them.

“I believe that Vladimir Putin, in his new capacity, will intensify the gas issue,” a sociologist, Director of Research & Branding Group Yevhen Kopatko said in Kyiv on Friday during a Moscow-Kyiv videoconference on Russian and Ukrainian relations.

The expert predicted that “the Ukrainian vector will be a key one” after the presidential elections in Russia.

“We expect great dynamics in Russian and Ukrainian relations. It will be important for the Russian and Ukrainian sides,” he said.

Director of the CIS Institute Konstantin Zatulin, in turn, said both Ukraine and Russia were to blame for their tense relations. He said that the situation would be resolved after Putin’s victory in the presidential election in Russia.

“Our relations lack wisdom. It’s clear that Gazprom will always be interested in a high [gas] price… It’s possible to get rid of aggravating circumstances through an attempt to reboot [relations]. Putin’s return [as Russian president] is a good occasion for that,” Zatulin said.

Gazprom

Russia threatens Ukraine over gas.

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Russia has come to its own conclusions about the disruption of its gas exports to Europe during a cold snap this month and is once again blaming Ukraine of causing the problem.

While there’s nothing new about this, the dispute appears to have triggered a decision at the highest level in the Kremlin to cut Ukraine out of the Russian gas transit business altogether as soon as possible.

Analysts are still puzzling over what caused a sudden shortfall in Russian gas exports to Europe early this month as freezing winds blew across the continent from Siberia. Was Gazprom unable to meet the surge in Russian and European energy demand, could there have been a technical hitch, or had Ukraine, as has happened in the past, been filching Russian gas from transit pipelines bound for Europe?

After a muddled early response, Gazprom accused Ukraine of causing the crisis and decided on a heavy handed response. Once the North Stream and South Stream pipeline projects to transport Russian gas across the Baltic Sea and the Black Sea are operating at full capacity, Gazprom will be in a position to stop using Ukrainian transit routes and will do so immediately.

Dmitry Medvedev summoned Alexei Miller, Gazprom’s chief executive to the Kremlin for discussions about South Stream this week that turned into a moan about Ukraine’s behavior. Ukraine had inflicted damage on Gazprom’s finances and reputation by disrupting gas supplies to Europe, Miller told the Russian president. “There is no effective mechanism to control the behavior of Naftogaz Ukrainy (Ukraine’s state oil and gas firm) in such a situation.”

Medvedev gave orders for South Stream to be built to the maximum 63bn cu m/year design capacity – a move that would free Russia from dependence on Ukrainian transit pipelines altogether.

Ukraine, which is negotiating to reduce the volume of gas it earlier contracted to buy from Gazprom, has denied removing Russian gas from transit pipelines this month.

Jonathan Stern, head of gas research at the Oxford Institute of Energy Studies, is not sure which side to believe and thinks the truth will come out only when people have stopped being interested. Gazprom could just be blaming Ukraine to cover up for its humiliating failure to meet the sudden surge in gas demand in Europe during the cold snap, he says. “We could be seeing a limit on what Russia can deliver on a daily basis.”

Mikhail Korchemkin, head of the US-based East European Gas Analysis consultancy, says Ukraine is innocent of wrongdoing. Bottlenecks in Gazprom’s complicated gas distribution and storage network caused the supply shortfall in Europe. Gazprom’s decision to reduce Central Asian gas imports had not helped leading to a shortage of gas in peak periods. “There is not enough gas to fill the pipelines even though the latter has spare capacity,” he says.

Many analysts suspect that South Stream is a bluff by Gazprom to force Ukraine to hand over control of the gas transit and storage network on its territory. Ukraine needs gas transit fees to stay afloat, but has flatly refused to surrender the pipelines its sees as a national treasure.

However, Stern believes that in the aftermath of this winter’s supply disruptions “it is becoming more and more likely South Stream will happen.”

Building export pipelines to circumvent Ukraine is a very expensive option for Gazprom. Nord Stream, which began delivering Russian gas across the Baltic Sea to Germany last year, cost $10bn. Gazprom has now embarked on a project to double the pipeline’s 27.5bn cu metres a year capacity by the end of this year. South Stream, designed to carry gas across the Black Sea to central and south Europe will be even more expensive with a price tag of $20bn.

Equity analysts, who have frequently raised alarm about Gazprom excessive capital expenditure, warned this week that South Stream would not add value to the company whose stock already trades at a discount to its peers. In a research note Troika Dialog said that if the pipeline would only serve to replace existing export infrastructure in Ukraine it could “be considered a total waste of money.”

“We remain hopeful that the recent statements from the Russian president as well as Gazprom are designed solely to put further pressure on Ukraine ……Otherwise, the project would be yet another factor that would keep Gazprom’s stock from re-rating upward.”

Ukrainian party

Ukrainian party accused of racism in pop scandal.

A small Ukrainian nationalist party came under fire Wednesday after a high-profile member suggested a singer of African descent was a bad choice to represent the country in the Eurovision song contest.

Pop star Gaitana, 32, who was born in Kiev to a Congolese father and Ukrainian mother, was chosen last week to represent Ukraine at this year’s Eurovision contest in May in Baku, Azerbaijan.

Gaitana, known for a strong voice and seductive outfits, will represent Ukraine with the English-language hit “Be My Guest.”

Yuri Sirotyuk, of the political party Svoboda, told the New Region agency on Monday that Gaitana was a bad choice because she was not authentically Ukrainian.

“Yes, Gaitana sings well, but she does not represent our culture,” Sirotyuk was quoted as saying. “Eurovision must be a show of national talents.”

“It looks like we don’t want to show our face and Ukraine will be associated with a different continent, somewhere in Africa.”

Svoboda is not represented in parliament, but has been gaining popularity recently.

Gaitana strongly condemned Sirotyuk’s statement, saying it tarnishes Ukraine.

“I am very much ashamed for such racist statements, because they destroy Ukraine’s reputation in front of the whole world,” Gaitana told reporters. “We are doing everything we can so that Ukraine becomes a part of the European family, a part of the world, so that nobody would be afraid to come here and have children here.”

Hanna Herman, an adviser to President Viktor Yanukovych, also spoke out against the statement, saying that Ukrainians should not be divided according to the color of their skin, their faith or their language.

Ukraine’s National Television, which held the contest where Gaitana was selected by a combined vote of viewers and jurors, demanded that Sirotyuk apologize to Gaitana.

Sirotyuk told The Associated Press that he has nothing to apologize for.

Women hockey Olympic

Women hockey Olympic qualifier: Italy beat Ukraine

to finish third.

Italy have performed admirably in the tournament. They were one goal away from qualifying for the final, losing to India 0-1 courtesy a late goal. Ukraine stunned India on the opening day with a draw (1-1) and then beat Canada (5-2) to earn a berth in this match for 3rd-4th places.

The round-robin league match between these two teams was narrowly won by Italy 2-1.

The beginning of the match was animated. Ukraine played aggressively with a lot of purpose and pushed the Italians back into their half. After the hard match played late last night against India, it took Italy nearly twenty minutes to find some momentum and take control of play. They then forced two penalty-corners in a row but could not beat Alvina Budonna in the Ukrainian goal.

Ukraine had a chance from a scramble in the circle in the last ten minutes of the first-half, but were denied by a miraculous save by Roberta Lilliu. They kept pushing but the last chance of the period fell to Italy, who took the lead through a rasping shot by Alessia Padalino from a last minute penalty-corner.

Ukraine came back into the game early in second period, with a penalty-corner of their own scored by Bohdana Sadova. They could have increased their tally in the following minutes but were denied once again by a series of exceptional saves by the Italian keeper. The goal woke up the Italian team and they promptly regained control of play to threaten the Ukrainian circle. They had two chances on penalty-corners, but the Ukrainian defence had by now figured out Padalino’s shot and defended well.

The clock was ticking down and extra-time was looming large, something both the teams wanted to escape having played six matches in eight days. Italy pushed hard for a winner and it finally came in the 67th minute and it was once again Padalino for the Italians. With this goal, Padalino overtook South African Dirkie Chamberlain as the top scorer in the competition

Ukraine threw everything they had left in the last few minutes of play to tie the score and were unlucky to hit the post, but managed to force a penalty-corner in the dying seconds of the match. Italy called upon the video-umpire to review the penalty-corner call, but it stood for a dramatic last chance attempt, which was kept out well by the Italian defence.

Ukraine to Auction

Ukraine to Auction Production Stakes in Two Natural Gas Fields.

Ukraine plans to auction the rights to as much as 70 percent of production at two natural-gas deposits as it seeks to cut reliance on Russian imports.

“The tender will take place by April 23,” Maryna Pekarchuk, a spokeswoman for the State Geology and Resources Service, said by telephone. “We expect big international companies to participate.”

Exxon Mobil Corp. and Royal Dutch Shell Plc (RDSA) are among companies searching for shale gas in Ukraine, which has Europe’s fourth-largest deposits of the so-called unconventional fuel, according to the U.S. Energy Department. The Yuzivska deposit in east Ukraine and Oleska field in the west contain conventional gas, shale gas and other hydrocarbons, according to government decrees dated Nov. 30 and published on the cabinet’s website.

The agreements will last for 50 years and the winners of the auction will receive no more than 70 percent of production with the government getting no less than 15 percent, according to the resolution.

Ukraine’s TOV SPK-Geoservice and state-run PAT NAK Nadra Ukrainy will set up a venture to participate in the production sharing agreements, Pekarchuk said today.

Exxon signed an agreement with Ukraine’s state-run oil and gas company NAK Naftogaz Ukrainy a year ago to cooperate in exploration for unconventional gas. Exxon seeks to estimate potential for shale gas, coal-bed methane, tight gas and other unconventional sources in the country. Shale gas is natural gas produced by injecting water and chemicals into shale rock. Coal- bed methane is extracted from coal seams.

Yulia Tymoshenko’s health

Ukraine has not ‘played down’ Tymoshenko health issue.

As far as Yulia Tymoshenko’s health is concerned I would like to emphasise that Ukrainian officials never “played down” this issue as suggested by Mr Olearchyk. Moreover, Ukraine has always been supportive in organising the joint International Medical Commission with the participation of Canadian and German specialists.

The Ukrainian authorities also agreed to use medical equipment brought by foreign specialists. The preliminary conclusions made by the foreign experts were very similar to those that had been earlier made by the Ukrainian doctors.

At time of writing, the final conclusions by the German doctors are still to come and their recommendations will be taken into account in the future treatment of Mrs Tymoshenko.

As regards the allegations that the authorities “prevented the collection of any specimens vital for analysis”, it is necessary to mention that Ms Tymoshenko herself on several occasions refused to undergo a clinical blood test.

On the other hand, the relevant authorities responded positively upon her request for an additional examination made on February 22. On the following day such an examination, namely X-ray, CT and MRI scans, were performed in one of the Kharkiv regional hospitals.

I am confident that this information gives a broader perspective of a situation with regard to Mrs Tymoshenko’s health. I think that any speculations over this issue, in particular the creation of “barriers” to her examination by the Ukrainian authorities, are groundless and inappropriate.

Expert

Expert: Ukraine to annually import up to 20 bcm of gas through Slovakia from 2015.

Ukraine will be able to buy on the European spot markets and import via Slovakia up to 20 billion cubic meters of natural gas per year starting from 2015-2016, the secretary of the expert council on the development of the gas industry and the natural gas market, Leonid Unihovsky, has said.

“Taking into account our ability to store gas in underground storage facilities, we will be able to buy a certain amount [of gas] on the so-called spot markets in Europe and store it in our system… Our Slovak colleagues have confirmed that in future they will be able to supply up to 20 billion cubic meters of natural gas to Ukraine per year, starting from 2015-2016,” he said.

The expert said that allegations by Russia about its plans to cut gas transit through Ukraine to Europe “to zero” are far from reflecting reality.

“According to our calculations, after the construction of South Stream and Nord Stream, there could be a reduction in the transit volume to 40-50 billion cubic meters per year, but not to zero,” Unihovsky said.

At the same time, the reduction in Russian gas transit will allow the use of Ukrainian pipelines to import gas from Europe, he said.

“A reduction in the transit load of the Ukrainian system means the expansion of opportunities for the supply of gas to Ukraine from Europe, rather than vice versa. The capacity of the Ukrainian gas market is one of the largest in Europe, and Gazprom should think twice before losing this market. If there is a significant reduction, there will be a significant loss of market,” Unihovsky said.

Yulia Tymoshenko

What was really in Tymoshenko’s 2009 gas agreement with Russia?

Yulia Tymoshenko, the principal rival of Ukrainian President Viktor Yanukovych, has been convicted in a political trial in Ukraine of having exceeded her authority as prime minister in concluding a gas agreement with Russia in 2009 that was unfavorable to Ukrainian interests. For this she has been sentenced to seven years imprisonment and fined $200 million.

It is worth recalling the circumstances in which she had to negotiate.

The negotiations of 2008 came at the end of the second of two gas wars in three years between Russia and Ukraine, wars that led to Russian gas supplies being twice cut to Ukraine and Western Europe.

Russia’s gas sales to Ukraine have been repeatedly been used by Russia as an instrument for bringing Ukraine to heel.

When Russia first turned off the gas supply to Ukraine and Europe at the end of 2005, a year after the Orange Revolution, it was preceded by Russia tearing up a multi-year gas supply contract it had concluded in 2004 with the more pro-Russian government of President Leonid Kuchma and Prime Minister Viktor Yanukovych. Statements made Russians at the time make it clear that the main aims of the Russian action were political. One purpose was to create difficulties for Yushchenko and Prime Minister Tymoshenko in forthcoming parliamentary elections. Another was to take over the Ukrainian gas transit pipeline.

The EU had to intervene to put an end to that dispute.

In the gas war of 2008-2009, Russian motives were also not purely commercial. At the time Russia’s relations with Ukraine were especially tense because of Ukraine’s campaign to join NATO, its support for Georgia in its war with Russia, and Ukraine’s refusal to renew the lease on the Russian naval base on Sevastopol in the Crimea, which was to expire in 2017.

The Russians were also likely angry at the inability of the Ukrainians to pay a contested amount for past gas deliveries and the tough, dilatory and contradictory Ukrainian negotiating positions.

The Russians warned the Ukrainians that they would cut off the gas if the pricing issues were not solved by Dec. 31, 2008. On that day, the Russians proposed a gas price of $250 per 1,000 cubic meters. On the next day, Jan. 1, Yushchenko agreed to $250, but sought an increase in transit fees on Russian gas being shipped to Western Europe.

In response, Putin accused Yushchenko of breaking off negotiations, insisted on $450 and halted gas deliveries intended for Ukraine.

A few days later, Putin accused the Ukrainians of taking gas intended for Western Europe. In reprisal, he halted all shipments to Western Europe. He called for an international consortium to take over the Ukrainian transit system.

After the European Union observers had established that there was no evidence that Ukraine had cut shipments to Western Europe or siphoned off gas for its own use, Russia agreed to resume shipments to Western Europe, but only of a small amount, and that by a circuitous route that would have forced Ukraine to deprive much of the south of the country of gas.
It was apparently only after the intervention of German Chancellor Angela Merkel with Putin that he and Tymoshenko finally reached an agreement on gas and transit costs. The Western Europeans also put considerable pressure on both Russia and Ukraine to put an end to the gas war.

The new contract was based on the generally accepted formula used throughout Europe at the time that linked the price of gas to the price of diesel fuel plus transportation costs. Ukraine received a 20 percent discount on this price for 2009. Russia received a discounted price on transit fees for the same period. The agreement also did away with an intermediary the gas trade, RosUkrEnergo, which had been allegedly channeling funds to the party of Yanukovych as well as to associates of Yushchenko.

The facts therefore suggest that the gas agreement concluded by Tymoshenko was likely the best she could have achieved under the circumstances. The elimination of RosUkrEnergo, in addition, removed an apparent source of corruption.

Ukraine

A sentence for Ukraine

Alyona Getmanchuk writes: Ukrainians are so fed up with the old politicians that virtually any new face could pose a more serious challenge to Viktor Yanukovych than Yulia Tymoshenko.

A Ukrainian court’s conviction of Yulia Tymoshenko on charges of abusing her powers when she signed natural gas contracts with Russia in 2009, when she was the prime minister, is not necessarily proof that she actually committed a crime.

Nobody, except perhaps President Viktor Yanukovych and his inner circle, really believes in the independence of the Ukrainian judiciary. In fact, this case can be viewed as a new chapter in Ukrainian politics — criminal prosecution for political motives.

Yanukovych had two such motives. First was to get rid of an opposition leader whose presence in the political arena has been a source of acute discomfort for him since the days of the Orange Revolution. Tymoshenko played a leading role in that popular uprising, which blocked Yanukovych’s first attempt in 2004 to secure the presidency. In his second bid in 2010, he narrowly defeated Tymoshenko.

The second motive was to use the Tymoshenko case as leverage against Russia to lower the price of gas sold to Ukraine. In the trial, Russia figured as an accomplice in an illegal transaction, and Prime Minister Vladimir Putin and President Dmitry Medvedev as allies of Tymoshenko — an ironic reversal of Yanukovych’s reputation in the West as the Kremlin’s ally.

The Ukrainian government regards the current price of Russian gas as unfair, especially after Yanukovych, in a bid to lower it, extended the lease on Russian naval bases in the Crimea for 25 years, to 2042, and rejected NATO membership for Ukraine.

Yanukovych clearly did not expect that immediately after he satisfied those two Russian demands, Moscow would add two more: Ukrainian accession to a customs union with Russia, Belarus and Kazakhstan, and the merger of the Ukrainian gas company Naftogaz with Russia’s Gazprom — a union that would give the Kremlin control over Ukraine’s gas transport network.

Yet the prosecution of Tymoshenko could end up as a political sentence for Yanukovych. For one thing, Tymoshenko would probably be the most convenient sparring partner if he runs for re-election in 2015.

Public distrust of Tymoshenko is higher than of most other Ukrainian politicians, so she would be less dangerous as an active opponent than as a political martyr.

Ukrainians are so fed up with the old politicians that virtually any new face could pose a more serious challenge to Yanukovych than Tymoshenko. A recent poll, for example, showed that the 37-year-old leader of the “Front for Change,” the former Foreign Minister Arseniy Yatsenyuk, would be a greater threat to Yanukovych than Tymoshenko.

The Tymoshenko case also stands to seriously harm Ukraine’s relations with the European Union — relations which are essential to Ukraine’s future.

This month Ukraine is supposed to be dotting the final “i” in its negotiations over an association agreement with the European Union, which includes an agreement on a free trade zone.
Paradoxical as it may sound, the “pro-Russian” Yanukovych now has a better chance to bring Ukraine closer to the EU than his “pro-European” predecessor, Viktor Yushchenko, ever had.

An association agreement with the E.U. would preclude Ukraine’s participation in a customs union with Russia, Belarus and Kazakhstan, and make Ukraine’s European path irreversible.

But over the past month Yanukovych has received clear signals from Europe that sending Tymoshenko to prison will create problems for the Kyiv-Brussels dialogue and for the subsequent ratification of any agreements by European parliaments.

The problem is that some advisers to Yanukovich believe that European negotiators are using Tymoshenko as a pretext for slowing down Ukraine’s integration in the EU, and that if there were no Tymoshenko case, they’d find another pretext.

They also believe that the EU will sign an association agreement no matter how the Tymoshenko case is resolved.

Finally, a guilty verdict against Tymoshenko clearly will not improve relations with Russia. The issue is not Tymoshenko herself — though many in Kyiv and Moscow believe that Putin now prefers her to Yanukovych as a partner.

The fact is that her case involves natural gas agreements with Russia; a guilty verdict is more likely to worsen Yanukovych’s relations with Putin than to make Russia more compliant on gas prices. That is not what Yanukovych needs in advance of parliamentary elections scheduled for next year.

The Tymoshenko case is not a battle of good and evil, of a “democratic and pro-European” Tymoshenko against an “autocratic and pro-Russian” Yanukovych, as some in the West seem to think. Tymoshenko is not a symbol of Ukrainian democracy, nor of Ukraine’s European choice. But this court ruling against her could have serious negative consequences both for Ukraine’s democracy and its European hopes.

Do Ukrainian leaders understand that? If yes, they should do everything possible to alter Ukraine’s Soviet-era laws, and to set Tymoshenko free.

Tymoshenko

What next for Ukraine?

Leigh Turner writes: UK, EU want Tymoshenko to be set free and able to participate in future elections

This week, for almost the first time since I arrived in Ukraine in June 2008, Ukraine has been the number one item on the BBC World News website and in other media around the world.

Friends have been getting in touch to ask me what’s going on, and where Ukraine is going. It’s an important question.

The cause of this interest and concern is the sentencing of ex-Prime Minister Yulia Tymoshenko on Oct. 11 to seven years in prison, a three-year political ban and a massive fine.

Discussion in the media has focused on whether the trial verdict means that Ukraine has given up on its ambitions to integrate with Europe and become a democratic EU-type country, or whether the outcome of the trial can somehow be overturned allowing Ukraine’s EU integration path to continue.

In the House of Commons on 12 October, British Prime Minister David Cameron said: “the treatment of Mrs Tymoshenko, whom I have met on previous occasions, is absolutely disgraceful. The Foreign Secretary has made a very strong statement about this. The Ukrainians need to know that if they leave the situation as it is, it will severely affect their relationship not only with the UK but with the European Union and NATO.”

All this raises the question as to what exactly has to happen in order for the EU integration process – in the first instance, the signature and ratification of the Association Agreement which Ukraine has been negotiating with the EU for the last four years – to continue. I discussed some of the issues in my recent blog “Tymoshenko in Yalta”.

The answer is that the UK and EU want to see Tymoshenko and other opposition leaders out of detention and able to participate in the political process, including the 2012 parliamentary elections.

Any outcome of the present trials which leaves a cloud threatening future political activities by opposition politicians, such as a big fine or continued legal uncertainty, is likely to lead to continued uncertainty about whether the association agreement will be signed and ratified.

The good news is that a mechanism to resolve the issue, in the form of proposals to decriminalize the offenses of which Tymoshenko is accused, is ready and waiting in the Ukrainian parliament. It could in theory be activated, and Tymoshenko freed, as early as next week, before President Viktor Yanukovych is due to visit Brussels on 20 October. The questions is whether Ukraine has the political will to make this happen.
Does Ukraine have that political will? The key point is that this is up to Ukraine.

The EU is not trying to force Ukraine to do anything. Nor is the EU desperate to sign the association agreement if Ukraine does not demonstrate by its actions that it, too, is keen.

In short, like any other country which wants to integrate with the EU, if Ukraine wants to move towards joining the European club and becoming an EU-type country, it has to behave in an EU-type way.

Final point: some commentators in Ukraine have suggested that maybe the Tymoshenko trial is a cunning way to persuade the EU to grant Ukraine a membership perspective (i.e. to say that, one day, Ukraine will definitely join). Perhaps, they argue, if Ms Tymoshenko is got out of jail the EU will be so grateful that it will grant such a perspective. I discussed this issue in a recent blog, “How to make Ukraine more European”.

Frankly, it seems improbable to me that anyone is thinking in these kind of transactional terms but again, just for the avoidance of any doubt, the events of the past week cannot possibly have any positive impact on the likelihood of Ukraine getting a membership perspective.

If anything, unfortunately, the reverse is true. If that is where this affair ends up, it will be a an immense shame, for Ukraine and for Europe.

Tihipko

Tihipko: Ukraine’s cooperation with IMF remains priority, rise in gas price not yet on agenda

Ukraine’s cooperation with the International Monetary Fund (IMF) will remain a priority for Ukraine. However, the requirement to raise gas price for households is a difficult political decision, which is still too early to speak about, Deputy Prime Minister/Minister of Social Policy Serhiy Tihipko told UKRINFORM after attending the 2011 Annual Meetings of the World Bank Group and the International Monetary Fund in Washington.

“Ukraine expects the arrival of an IMF mission in late October. We will hold more consultations with them. But whether the decision on gas tariffs will be made or not, if so, when, it is too early to speak about yet. It is a very difficult political decision,” the deputy prime minister emphasized.

According to him, after the approval of pension reform the issue of gas tariffs rise has remained “practically one serious condition” for the next disbursement under an IMF Stand-By Arrangement. As referred to the Fund’s requirement concerning fiscal deficit, Tihipko expressed confidence that Ukraine would keep 3.5% of GDP this year and seeks not to exceed a deficit of 2.5% of GDP next year. “And as referred to gas tariffs – this is a real challenge. How to do it correctly, how fast … I can say that this question here sees arduous debate. Over the past four years it has been a key term of cooperation, which the previous government had failed to meet, and which we partially meet, but not yet in full,” Tihipko said.

At the same time, he noted that Ukraine should first make public utilities sector transparent. “Because when the sector is opaque, there is a lot of corruption, which people have to pay for. I’m strongly against it. We should first make the sector transparent, so that no one steal from there. And then it would be desirable to raise the tariffs,” the official added.

Tihipko said that in the near future he personally wants to initiate a program on transparency in public utilities.

He also added that an agreement was reached that in early October Ukraine will be attended by World Bank experts to help draw up an action plan to make the energy and public utilities sectors transparent.

At the same time, the deputy prime minister stressed that the next IMF disbursement is “very important” for Ukraine. “As overseas markets are already bad. The tranche provides us with several loans that we could get from the World Bank. Virtually, conditions on the two loans worth USD 350 million and USD 500 million are fulfilled. This would give us the opportunity to speak more constructively with the EU about the assistance of EUR 610 million. This is serious money today. It is hard to take such money in the market today. Therefore, cooperation with the IMF remains a priority for us and I am convinced it should remain a priority,” Tihipko emphasized.

“The International Monetary Fund and the World Bank – it is not institutions that have unlimited money,” he said. Asked by a reporter to clarify whether this limited resources of financial institutions, especially after large amounts of aid granted by them during the last crisis, could influence Ukraine, he said “If we stay within the program in which we currently cooperate with the IMF, they couldn’t. “USD 13 billion is reserved for us, and they won’t be spent anywhere. If, God forbid, we got off the program and start a new program, there will be a resource problem, because many countries would like to reserve money to get assistance from international organizations”.

As UKRINFORM reported, the 2011 Annual Meetings of the World Bank Group and the International Monetary Fund were held in Washington, September 23-25, with a Ukrainian delegation led by Deputy Prime Minister Serhiy Tihipko.

Party of Regions

Party of Regions positively appraises European Parliament’s resolution on Ukraine

The Party of Regions, on the whole, positively appraises a resolution of the European Parliament on Ukraine, adopted October 27, although they consider recommendations on interference with judicial processes as inadmissible, Party of Regions MP Olena Bondarenko has said.

“We understand well that those recommendations (on a case versus ex-Premier Yulia Tymoshenko) are of a political character, they are based on emotions and a personal attitude to Mrs. Tymoshenko of politicians sympathizing with her, as well as her political partners, in particular, the European People’s Party,” she said.

Bondarenko named as positive moment of the resolution the fact that the European Parliament spoke for speeding up of a visit by President Viktor Yanukovych to Brussels and the fact that a wish was fixed in the document to completely initial the association agreement between Ukraine and the European Union.

Viktor Yanukovych

Ukrainian President Viktor Yanukovych has said that it is necessary to conduct state policies aimed at increasing the adoption of children by Ukrainian citizens.

"We must do everything to ensure that all children deprived of parental care, regardless of their age and health, are adopted by Ukrainian citizens and stay in a [family] home," he said in Kyiv on Thursday at a nationwide council on the protection of children's rights.

Viktor Yanukovych noted that the number of children adopted by Ukrainians had been gradually falling over the past two years.

"We need to improve this work and overcome stereotypes in a sensitive area like adoption, better inform Ukrainian citizens and actively involve the media in this noble cause," he said.

He also said that such projects as "Children Search Service," "This Child Needs a Family" and the national portal sirotstvu.net were being successfully implemented in Ukraine.

Yanukovych

Yanukovych describes Ukraine as a center of economic growth

Ukrainian President Viktor Yanukovych has said that Ukraine is now one of the centers of economic growth in the world.

“There are small centers of economic growth in the world, and you know that I travel a lot around the world, so Ukraine is one of these centers, and we must preserve and value this,” he said in Kyiv on Thursday, while closing a nationwide meeting on the protection of children’s rights.

Yanukovych promised that every year Ukraine would increase funding for programs on protecting and ensuring proper living conditions for Ukrainian children. He said that GDP growth and the growth of the Ukrainian economy contributed to this.

“There’s no need to very often encourage people to live well. It is our duty to ensure that it is so,” he said.

European Parliament

EP supports resolution on Ukraine with EU’s recommendation to hold meeting with Yanukovych

The European Parliament on Thursday supported a joint resolution on Ukraine by a simple majority.

The vote took place during a plenary session in Strasbourg without any debate beforehand.

In its resolution, the European Parliament proposed that the European Commission hold a meeting with Ukrainian President Viktor Yanukovych ahead of the EU-Ukraine summit in order to “re-establish a constructive dialogue.”

“[The EP] considers that the recently postponed meeting with President Yanukovych would have offered an excellent opportunity to tackle serious concerns addressed towards the Ukrainian government and re-establish a constructive dialogue that could lead to the Association Agreement to be initialed provided there is significant progress on both technical and vital political obstacles still in place; calls on the [EU] Council and the [European] Commission to reschedule the recently postponed meeting with President Yanukovych ahead of the foreseen EU-Ukraine Summit in December 2011,” reads the document.

This clause is one of the closing in the resolution. It is preceded by other provisions that cover a range of bilateral relations, starting from the strategic level – the recognition of Ukraine’s aspirations for EU membership, and ending with recommendations on the examination of possible mistakes in decision-making at the government level in special parliamentary commissions.

“[The EP] takes the view that a deepening of relations between the EU and Ukraine and the fact of offering Ukraine a European perspective are of great significance and in the interests of both parties; recognizing Ukraine’s aspirations pursuant to Article 49 of the Treaty on European Union, provided that all criteria, including respect for the principles of democracy, human rights, fundamental freedoms and the rule of law, are met,” reads the resolution.

As for the case of former Ukrainian Prime Minister Yulia Tymoshenko, the EP “deplores the sentencing of former Prime Minister Yulia Tymoshenko as a violation of human rights and an abuse of the judiciary for the purpose of the political suppression of Ukraine’s leading opposition politician.” In this connection, the parliament said that the “law selectively applied against Tymoshenko dates back to Soviet times and makes provision for criminal prosecution for political decisions; whereas Articles 364 and 365 of that law, which are currently under review by the Verkhovna Rada, do not conform to European and UN standards.”

“[The EP] urges the Ukrainian authorities to ensure a fair, transparent and impartial legal process should Yulia Tymoshenko appeal against her conviction, and in the other trials against members of the former government; insists that Yulia Tymoshenko should be allowed to exercise her right to participate fully in the political process both as of now and in the forthcoming elections in Ukraine,” reads the resolution.

The parliament expressed concern that “the Tymoshenko trial is at odds with the Ukrainian government’s proclaimed commitment to democracy and European values.”

“[The EP] takes the view that a failure to review Yulia Tymoshenko’s conviction will jeopardize the conclusion of the Association Agreement and its ratification, while pushing the country further away from the realization of its European perspective,” reads the document.

EU

European Parliament’s resolution shows support for Ukraine’s aspirations for EU membership, says Foreign Ministry

The Foreign Ministry of Ukraine has said that Thursday’s vote by the European Parliament for a resolution on Ukraine is evidence of its support for Ukraine’s aspirations for EU membership.

“The resolution is evidence of the fact that Ukraine’s movement towards EU membership has not been stopped,” director of the ministry’s information policy department Oleh Voloshyn said at a briefing in Kyiv on Thursday.

He said the Foreign Ministry views the resolution as a success for the country, as it contains an appeal to offer the prospect of EU memberhsip to Ukraine.

Voloshyn said that Kyiv takes into account the EU’s assessment of the internal political processes in Ukraine. He drew attention to the fact that the European Parliament has urged the European Commission to provide specific assistance to Ukraine in reforming its judicial system.

Ukrainian Foreign Ministry

Ukraine wants clarity about duration of association agreement, says Ukrainian Foreign Ministry

The Ukrainian Foreign Ministry has said that it does not urge the European Union to designate a specific date of Ukraine’s accession to the EU, but wants to know the period of validity of the association agreement between Ukraine and the EU.

“We did not demand a specific date of entry to the EU at the talks. We were talking about the date of expiration of the association agreement,” Director of Information Policy Department of the Ukrainian Foreign Ministry Oleh Voloshyn said at a briefing in Kyiv on Thursday.

“We do not want a permanent agreement,” he said.

According to Voloshyn, if a specific date for termination of the agreement is set, the EU will have a reason to change the format of its relations with Ukraine towards greater integration.

Prison Service

Prison Service: No special prisons for women in Kyiv region

Ihor Andrushko, an assistant to the head of the State Prison Service of Ukraine, has said that there are no separate prisons for women in Kyiv region.

“I would like to note that there are no separate prisons for women in Kyiv region,” he said at a press conference in Kyiv on Wednesday.

Andrushko said that a request for the placement of convicts in penal institutions is approved at a meeting of a commission created at the central office of the State Prison Service. He said that the commission places prisoners in terms of regions, categories, and the modes of penal institutions.

However, he voiced no suggestion as to what prison former Prime Minister Yulia Tymoshenko and former Interior Minister Yuriy Lutsenko could be sent to serve their sentences if the verdicts against them come into force.

“As of today, public figures who are held in jail – not just the former prime minister or former interior minister – now none of them have the status of being convicted, until their sentence comes into force… Therefore, I currently have no legal or moral right to decide on something or invent something. When there is a court ruling, when the sentence comes into force, then the commission will examine all of the documents and take a decision [on sending convicts to certain penal institutions],” Andrushko said.


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