22.11.2008
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Ukraine in Focus March 24 - 30, 2008


The Democratic Initiatives Foundation is closely following the political events in Ukraine in order to monitor the pre-election promises of the country’s most powerful political forces that won seats in parliament in the snap elections on September 30, 2007. The monitoring is being conducted within the framework of the “Where are politicians leading us?”

March 24

The Central Election Commission approved a decision to recognize the election of 15 new members of the Kyiv City Council according to the electoral list of the Yulia Tymoshenko Bloc.
Recall that in accordance with a decision of YTB 15 deputies of the KCC were stripped of their deputy authorities for abandoning the YTB faction in the KCC.
The leader of YTB in the KCC Tetyana Melikhova, from this point on there is a stable majority of 61 voices in the KCC and YTB demand the convocation of a session of the council in order to elect a provisional leadership in the nation’s capital.

The Parliamentary Committee on Issues of European Integration is drafting a program for informing the population of Ukraine concerning NATO for the period 2008-2011. Iryna Herashchenko, a member of the committee and deputy, announced this during the round table Prospects of Euro-Atlantic Integration of Ukraine: the Estonian Experience. In her opinion, the position of the government on this issue is extremely passive. The government has not taken any further steps other than submitting the infamous letter to the NATO leadership about Ukraine’s joining the Membership Action Plan (MAP).

March 25

Russian President Dmitri Medvedev said in an interview for the Financial Times that he is categorically against Ukraine and Georgia joining NATO.
He said that Ukraine’s (and Georgia’s) membership in the Alliance poses a threat to European security. However, Russia’s new leader failed to clarify exactly what it is the Europeans have to fear. Medvedev’s first interview for the western press showed that he is continue to ascribe to the policy initiated by ex-president Vladimir Putin, who was categorically against NATO enlargement.

Minister of Finance Viktor Pynzenyk noted in his report that the best his ministry could achieve over three months was to maintain a zero budget deficit, reduce VAT debt arrears and considerably increase the revenues of the customs authority. At the same time, the package of anti-inflationary measures has thus far not produced tangible results. On that note, inflation this year is forecast at a fairly optimistic 9.6%.

The President Secretariat is criticizing the government for the current inflationary processes in the country. The presidential body proposes to raise the subsistence wage by UAH 20 as, according to its calculations the average Ukrainian cannot survive on the current level of UAH 592. While the president proposes to increase the subsistence level through amendments to the budget, the government is in no hurry to agree to this. The term of submitting amendments to the parliament expired on March 1.

March 26

Premier Yulia Tymoshenko gave a report on the results of the first 100 days of the government’s work.
Tymoshenko named accession to the WTO, ridding the gas market of intermediaries, a growth in industrial production and an increase in budget revenues from customs duties among the achievements of the new government.
Besides that, the Cabinet of Ministers managed over this period to restrain the decline in GDP, put a stop to smuggling and shadow privatization, raise incomes of Ukrainians by 25% and implement around 50 social programs. Tymoshenko feels her greatest achievement is payout of compensations for lost deposits in Oschadny Bank.
The premier named the low level of proceeds from privatization to be one of the major flaws. Besides that, Tymoshenko promised that within a half year the government will overcome inflation. She also complained that to this day the parliament has failed to approve a government program.

The Presidential Secretariat called the self-assessment of the Tymoshenko government somewhat exaggerated. The secretariat was not pleased by the fact that the Cabinet of Ministers is taking credit for Ukraine’s accession to the WTO. Representative of the opposition Party of Regions and ex-Finance Minister Mykola Azarov stated that the government of Yulia Tymoshenko gave incorrect data on the state of the economy. Meanwhile, Azarov believes the growth of GDP should be credited to the previous government under Viktor Yanukovych.

Today the official campaign for the elections of the Kyiv mayor and deputies of the Kyiv City Council – nomination of candidates for the post of the city’s mayor and the KCC – kicked off today. Legislation stipulates the term of the elections expires on April 15. The elections will be held on May 25.

March 27

Yulia Tymoshenko stated at a meeting with diplomats that Ukraine hopes for a positive decision of NATO regarding its joining the MAP.
Besides that, the premier announced a breakthrough in the “gas” talks with Russia and assured that the Cabinet of Ministers plans to approve by the start of autumn a long-term agreement on the supply of natural gas to Ukraine.

The former members of Our Ukraine – National Self-defense (OU-NSD) formed a new party called Yedyniy Tsentr (Single Center). People’s deputy Ihor Kril was chosen the head the party. The newly formed party has positioned itself as a new pro-presidential force. Kril said the party will support the president in all his actions and convictions. Recall that a part of the people’s deputies and members of OU-NSD oriented towards the head of the Presidential Secretariat Viktor Baloha withdrew from the Our Ukraine party in order to form a new party.

Premier Yulia Tymoshenko is atop the list of deputies to the Kyiv City Council in the snap elections. She announced this news live on the air during the program “Ya tak dumayu” (That’s My Viewpoint) on the 1+1 TV channel. The premier is convinced that this move is a show of her accountability before the city of Kyiv for the quality of the list and for each deputy.

March 28

President Viktor Yushchenko once again stated that Ukraine’s outstanding gas debt to Russia is more than US $2 billion.
The president is demanding that the government resolve this issue in order to avoid a “gas war” with Russia. A day earlier Premier Yulia Tymoshenko stated on the program “Ya tak dumayu” (That’s My Viewpoint) on the 1+1 TV channel that Ukraine’s debt for gas delivered by Russia since the beginning of the year is nearly US $900 million.

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