Puppet masters and puppets

When asked in a press conference today Tymoshenko reiterated she would not be prepared to accept a position other than PM in a 'democratic' coalition, and would rather go into opposition that join a coalition that includes PR. "Apart from me, there's scarcely anyone else to get matters sorted," she said.

A clue to the way these matters are heading is provided in an arrogant interview in 'Ukrainska Pravda' with Sergey Levochkin, one of former president Kucha's closest aides. This man was deeply involved with his old friend Dmytro Firtash, and Yuriy Boyko in setting up the huge RosUkrEnergo scam, sanctioned by Putin and Kuchma, about which others more knowledgeable than me are writing. He was, no doubt deeply involved in the flurry of 'last minute' 'divvying up' of state assests and property to Kuchma's favourites before the 2004 presidential elections, including something for Levochkin's good friend, the notorious Russian 'businessman' 'Mad' Max Kurochkin.

Soon after, Levochkin adroitly became a confidant of VR speaker Lyvyn, and was a leading candidate in Lytvyn's bloc [for Kuchma 'retreads'] which, having spending millions on advertizing, failed to cross the 3% threshold and enter the VR.

In his interview he predicts that a grand coalition will be created in the VR, and describes a scenario which is probably PR's 'pitch' to NSNU: PR's prime minister, and two vice-premiers including minister for fuel and energy, but the President remaining free to appoint and control the VR speaker and 'silovyky' - Defense, and SBU, and Foreign affairs. He suggests that NSNU's electorate, which would be lost in the event of a PR-NSNU coalition, would return if the economy grows sufficiently.

A photograph of happy-looking [L-R] Poroshenko, Levochkin and Martynenko in some behind the scenes 'wheeling and dealing' at the time of the Orange Revolution, is included in the UP article.

If the VR elections were to be repeated tomorrow, after all the stalling on coalition building and the RUE revelations, I wonder what the results would be? Would NSNU clear 10%

And what is the President's rating right now? It would be interesting to know..And what about 'that woman's' rating?

Can the markets take it?

If, as LEvko reports, this mess won't be sorted out until June, will the markets hold still for that? That is a long time for politics and an eternity for markets. Will there be any confidence in the government after all that? It is quite possible that any confidence could evaporate and start a selloff. It happened in the 90s in both Mexico and Venezuela for a lot less.

A rapid devaluation of the currency is not a pretty thing. I was in Venezuela when it happened there. The bolivar crashed, there was a run on the dollar and that caused the central bank to put controls on dollar buys. They needed to do this to be able to use dollars to control the descent (soaking up the bolivars on the market requires buying with dollars) and dollars reserves are needed to pay for goods coming in the the country.

The restrictions pretty much put a halt on imports. I talked with a grain trader at one point and he said the whole country was down to a 3 days supply of wheat. And the owners of any tankers with wheat bound for Venezuelan ports were seriously considering turning them back around because they thought they wouldn't get paid when the grain landed.

People tend to get surly when they get hungry and the Venezuelans have been known to riot. The owners didn't turn them back in the end and there were no riots and Venezuela came through it but came butt up against nationalism. Enter Hugo Chavez. Not a good ending, really.

I hope it doesn't happen here (and I should add, there are many, many reasons why it shouldn't.) But one thing is for certain: The parties on all sides believe they are in a fight to the death with their opponents only and with no others. But there are other interests and other actors who also have a say in what happens in Ukraine. The politicians here need to take that into account in their deliberations and in their public statements. Because those other actors, acting on the basis of self interest, criticize it for that reason as we will, can have a very significant effect on the lives of Ukrainians. (That has been my point with the very careless-- irresponsible, really-- way the investment situation here has been handled.)

But noting what has been said and done in the past, I won't be holding my breath.

Yanukovych takes control

Giving his first press conference since the March parliamentary elections, PR leader Viktor Yanukovych has imposed his authority on the drift in forming a parliamentary coalition. He pronounced that PR would 'bloc-up' with any other party in a governmental coalition, but he must be PM - he is not prepared to give up the PM's chair.

Other PR 'big-shots' have recently been a little 'off-massage' on this, but now Yanukovich has made his position clear.

He said that his party is ready to come together with NSNU, and believes this would provide the most effective coalition. Importantly, PR have commenced two-sided discussions on formation of a coalition, but [oddly] didn't specify with whom.

In principle, the orange parties would seem to be the most natural partners in any government, but an article in 'Svoboda' entitled 'Pipes and Chocolates, or an Akhmetov-Poroshenko coalition', illustrates what is happening at regional level, where local elections took place at the same time as parliamentary elections. In the Lviv oblast rada the NU chairman categorically refused to give up his position, even though BYuT received a greater mandate.

An analogous situation has occurred in Kyiv oblast rada where BYuT has the largest number of seats, but NU bloc has formed a union with PR. In Odessa the head of the NSNU branch has declared that there is a possiblity of a coalition with PR. And, typically for central Ukraine, in Golovansk, a town in Kirovograd oblast in a 46 seat council, BYuT-Socialists-NSNU had sufficient seats to form a majority, but in a vote to choose a 'rayi-soviet' chairman, a split occurred, and a Litvinite man who had held the position previously, was elected.

In the Zakarpattya oblast rada NU have done a deal with PR on co-operation, driving BYuT, and the Socialists and Litvinites into opposition. But now in the BYuT fraction itself there has split into two groups.

A similar sequence of events with splits and deals may well occur in the Parliament even after coalition negotiations are finally completed. Yushchenko is predicting these will drag on until mid June..

More on Gazprom

Anyone with an interest in Russia's waving of its 'gas weapon', its 'pipeline' or other metaphor in the air, and the reaction in the mass media, should check out Jerome a Paris' recent blog:

a short quote:

..the press campaign against Gazprom...from all available information, originates with the Blair government, desperately looking for an external scapegoat for its failing energy policy and the accompanying gas shortages in the UK, this is highly suspicious...

As Abdymok in his own unique way puts it, there's some 'gang flakking' going on here. Even 'The Times' gets in on the act. [with graphics and backround links too.]

*Some brilliant 'background stuff' on why Ukraine has a unique position in Gazprom's history and infrastructure from a man who was there - Jerome a Paris - the man deserves respect..

Gazprom - more worries for Europe?

A couple of clipped paragraphs from articles in today's London 'Times' :

Algerians and Russians in gas talks

TALKS in Algiers last month between Gazprom and Sonatrach, the Russian and Algerian gas giants, were overshadowed by a $7 billion (£4 billion) arms deal between the two nations. Despite being held in the shadow of a visit by President Putin, the significance of the talks over gas was not lost on the Algerian media, which described it as the first step to the creation of a “powerful energy lobby that would force Europe to bend”. The Quotidien d’Oran, a newspaper, said that Gazprom and Sonatrach would be the “locomotives of a new Opec of gas”.

and

Gazprom talks spark fears of gas cartel

DEEPENING ties between Russia and Algeria are causing concern among Europe’s gas importers, raising fears that recent talks between Gazprom and Sonatrach, the Algerian state energy company, could be the first step to the formation of a natural gas cartel.

Lost in translation

Unian reports that the press service of the US embassy in Kyiv announced US presidential aide and deputy national security advisor Jack D Crouch, during his recent visit to Ukraine, passed on greetings from George W. Bush to President Yushchenko only, and not to Viktor Yanukovych, on PR's decisive victory in the parliamentary elections, as had been declared by the Party of Regions press service.
Rather small-minded, no?

Crouch apparently greeted leaders of Ukraine's political parties [including Yanukovych] 'only personally'.

Some observers interpreted the 'greeting' to Yanukovych as possible approbation for a grand coalition.

[Reminder: PR will have 186 seats in the new VR, Our Ukraine 81.]

p.s. First chairman of PR's polit-rada Mykola Azarov states that Yanukovych does not necessarily have to be PM in any NSNU-PR coalition, [see previous blog] and now PR front-man Taras Chornovil, in an interview with Glavred says, "Under certain circumstances Yekhanurov [NSNU #1] could be Prime Minister."

You have to feel a bit sorry for Yanukovych, who for all of his faults, ran an efficient and successful election campaign for PR. He even tried to be nice to Jack D Crouch.

Next time Azarov or Chornovil meet Yanukovich, it may be a good idea if they keep out of arm-swinging range..
[Yanukovych has a reputation of having 'a useful pair of fists'.

Easter break

«Христос Воскрес!»

President Yushchenko has delivered an address for the Orthodox Easter, asking his people to pray for unity and peace. The holiday break will give politicians a few days to reflect on, and possibly reassess their positions on the question of building a democratic coalition in parliament following last month's elections.

For the NU bloc there are no easy options. The three orange parties combined would have a 17 seat majority max. Even if NU and Yushchenko agree that Tymoshenko be nominated to head a newly-appointed cabinet [something that looks a long way off, but what the majority of NU voters nevertheless want], there would probably be defectors or abstainers when she were to be voted into office to the position of PM in the Verkhovna Rada.

A PR-NU coalition [without the Communists] would command a majority of 41, but the number of defections from NU would be certainly greater than from a democratic coalition mentioned above, particularly if their 'biggest beasts' Yanukovych or Azarov were 'pencilled in' for the position of PM.

However it's been reported today that PR are not setting a condition that Yanukovych be PM in any PR/NSNU coalition. Mykola Azarov is quoted as saying: "Regiony at the moment are not claiming the premiership at all, nor [the positions] of 1st VicePM, or VicePM responsible Fuel and Energy."

This flatly contradicts a statement made by Taras Chornovil several days ago to the media, when he stated: "Yanukovych - PM, and Azarov and Kluyev VicePM's." Now Azarov says that the PR polit-soviet had made no such decision.

According to some analysts, a pivotal role may be played by Socialist leader Oleksandr Moroz. If he could be persuaded to join a grand coalition which excluded some of the less palatable PR leaders, then BYuT could be shut out, joining the Communists in opposition. Such a PR-NU-Socialist grand coalition would be more acceptable to NSNU voters, and it would be Tymoshenko who would be seen as 'the party pooper'. The Socialists' 33 seats in the new parliament would be useful too.

So plenty for everyone to think about, and plot, over the Easter break.

Finally 'The Independent,' in an article entitled: 'Russian gas giant could leave Europe in the dark,' includes this: "The Russian government has strengthened its grip on the media by closing in on a controlling stake in the country's best-selling tabloid, Komsomolskaya Pravda. State-controlled Gazprom Media is reportedly waiting for the deal to be approved by the anti-monopoly commission." Haven't Gazprom got enough on their plates?

ps Maybe the Ukrainian economy is doing better than generally accepted. It's been reported that sales of new automobiles is booming - there's been a 43% year-on-year sales increase. Some showrooms are even experiencing shortages. 32% of the market is dominated by AvtoVAZ, 13% Daewoo, and 10% ZAZ....[no snickering at the back..]

Lotto winner

It looks like I have won about four different European lotteries in the past two weeks. At least that's what the emails tell me, emails from the likes of @yahoo.com or @hotmail.com.

They must like me, they really must.

it's got to be some new kind of scam. At least I haven't seen it before.

Gazprom worries EU

With their usual deft hand, Gazprom (and the Kremlin, we should add) has just added to their problem in the EU:

Amid growing tensions between the European Union and Gazprom, an EU spokesman said Thursday that the gas monopoly's warning to European countries not to block its expansion had intensified fears about growing reliance on Russian gas.

The comments continued the verbal sparring that followed reports last week that Britain was conjuring up legal barriers to block Gazprom's potential takeover of Centrica, Britain's largest gas supplier. On Tuesday, Gazprom CEO Alexei Miller told European countries not to "politicize" gas supplies at a lunch with EU ambassadors in Moscow.

Gazprom's "statement gives grounds to our concerns on the growing foreign dependency of European energy supply and ... our need to diversify both the origin of our supplies and our supply routes," said Ferran Tarradellas Espuny, spokesman for EU Energy Commissioner Andris Piebalgs, Reuters reported Thursday.

Maybe they could threaten to turn off the taps. You know, something between friends.

Gas and the Orange coalition

Many political observers explain the mutual problems between Tymoshenko and Yushchenko as partly being a clash between prima-donnas. The quote below from today's 'The Independent' is typical:

"[The premiership] was a job she [Tymoshenko] did until September of last year, when Mr Yushchenko abruptly sacked her for allegedly spending too much time polishing her own image, for apparently being too radical on the economy, and for picking too many fights with some of his closest advisers."

But perhaps the main reason for her sacking involves corruption and money made by the intermediaries and their secretive beneficiaries in the Russia-Ukraine gas trade. Tymoshenko's #2 and former SBU chief Oleksandr Turchynov described soon after Tymoshenko's sacking how Yushchenko himself ordered a halt to his investigations into these matters, commanding him to "stop persecuting his men" because it was "creating a conflict with Russian President Vladimir Putin."

Tymoshenko has made it clear many times that if she becomes PM she will renegotiate the the entire Russian-Ukrainian gas arrangement from scratch - something both Russian government and President Yushchenko have declared is not a good idea. Some have suggested she will do this not wholly for altruistic reasons. She even brought down the Yekhanurov government on 10th January this year over the opaque details of the newly agreed Russian-Ukrainian gas accords, so causing a major constitutional crisis. It's no surprise then that during the parliamentary election campaign Yekhanurov stated clearly that he would not work with Tymoshenko 'under any circumstances'.

The smell of gas [sorry..] will continue to hang heavy over any orange coalition building.

Curiously newly-elected BYuT parliamentary deputy and newspaper editor Oleh Lyashko revealed on the Russian language service of Radio 'Svoboda' today that Oleksandr Turchinov has been hospitalized, and that there is a suspicion that he may have been poisoned."There are some facts that would indicate an unnatural reason for him to be in hospital," said Lyashko. However Tymoshenko's press secretary says he has no information whether Turchinov was poisoned.

Kompromat and backstabbing..

Petro Poroshenko responded quickly to Yuliya Tymoshenko's accusations [of which I wrote yesterday], in a lengthy TV interview last night. Perhaps the most sensational of her accusations against him had been the claim that Poroshenko was co-operating with deputy Prosecutor General Viktor Shokin to open a criminal case and sanction the arrest of Oleksandr Turchynov, BYuT #2, and former head of the SBU, and Andriy Kozhemyakin, a former SBU adviser, at the time of Tymoshenko's premiership.

Turchinov may have been using his position to destroy or 'dark-hole' evidence on Tymoshenko's 'dim and distant past' which could be used against her and others some time in the future, as well as collecting potential kompromat on her enemies.

Abdymok has blogged in great detail on these matters and how RosUkrEnergo and its shady beneficiaries [some close to Yushchenko] were being investigated by Turchinov and Kozhemyakin. Turchinov in a resignation press conference on 15th September last year, claimed that the President himself had told him to 'back-off' with his investigations.

In his TV interview Poroshenko claims that when she was PM, Yuliya Tymoshenko,"arranged, at night, at her dacha, with the then Prosecutor General, Sviatoslav Piskun", to open a criminal case against him, apparently in a private agreement, and to submit appropriate arrest warrants.

Before and during the Orange Revolution, Yushchenko kept close ties with the then Prosecutor General Sviatoslav Piskun, and with the SBU [late night meetings with Smesko and Satsiuk?].

In a country like Ukraine, where 'blackmail and kompromat were used a tool of state domination', the people, who have the 'dirt on everyone' become most important and powerful. Yushchenko only fired the odious Piskun late last year - he will now be sitting in a PoR seat in the newly-elected VR.

An insight onto how kompromat has been used is described in an excellent article by Keith A Darden [Yale University], which although written several years ago, is still a most interesting read, and helps explain the methods Ukraine's leaders have used to try to discredit or get the better of one another. [In the article it's still many of the same names on the gas merry-go-round as now, I'm afraid.] But at least after the Orange Revolution there's a free press and media..

Coalition of democratic forces? It looks a long way away.. And grand coalition? Maybe a bit nearer?

An interview with Yuschenko

Here's an article by Anne Applebaum on her visit with Yuschenko. She's been good on the issues in this area of the world.

I post a link here without any comment.

Yushchenko' s dilemma..

Vira Ulyanchenko, one of President Yushchenko's closest advisers, admits that a broad coalition in Parliament including PR and its leader Yanukovich, is possible. "I think that..a broad coalition may happen, or maybe an orange coalition may be created, because this is absolutely natural...[but] no-one is talking of a marriage with PR. We are talking of a broad coalition, about including...possibly including, PR into the coalition. This is a matter of discussion."

She also claims PR agrees with NSNU on Ukraine's entry into the EU and WTO, because it will widen access for Ukrainian business to external markets, adding "It seems to me that he - [Rinat Akhmetov] would be interested in such a [broad] coalition, as a representative of big business."

"The President's secretariat [where Ulyanchenko has an office] is not looking seriously into the question of the candidature of the PM at the moment."

Tetyana Mokridi, a NU press secretary, stated that the NU bloc could not decide at a political council meeting today whether to sign a democratic forces coalition protocol. A decision has been deferred until tomorrow.

But Yuliya Tymoshenko has accused a portion of NU led by Yekhanurov, Poroshenko, and Martynenko of wanting to form a coalition with PR, something she has ruled out for BYuT. She says she obtained the information from an insider - a member of the NU polit-rada, who told her that there is an NSNU campaign afoot to discredit negotiations on the creation of the democratic coalition, in order to create a broad coalition with PR.
She also appeals to the President to take personal responsibility in conducting talks with her and Socialist leader Moroz in this matter.

But perhaps, most sensationally she accuses Petro Poroshenko of co-operating with deputy Prosecutor General Viktor Shokin, and Mykola Martynenko of working with SBU chief Ihor Drizhchanyi to open a criminal case and sanction the arrests of Oleksandr Turchynov, BYuT #2, and Andriy Kozhemyakin, BYuT #25. Turchynov was former head of the SBU - Kozhemyakin an SBU adviser. This has all been denied by the Prosecutor General's office.

Meanwhile President Yushchenko strikes a statesman-like note and "is disturbed that the participants in the discussions [on coalition] are dragging their feet in developing a a realistic program of action for the coalition, and wasting too much time and energy on mutual insults in the mass media."

Yushchenko is caught in a dilemma. If he continues to procrastinate, he is open to accusations that he is doing under-the-table deals with 'the enemy' - PR. If he caves in and agrees to Tymoshenko becoming PM, the first thing she will do is pull her program out of her handbag and insist that her junior partners agree to it. If he forms a coalition with PR, then he will be despised by a large portion of the Orange electorate in central and western Ukraine.

Yuliya is in a much stronger position. Apart from having secured the support of a much larger portion of the electorate than NU in the March elections, in the 'worst possible case scenario' i.e. going into opposition against an NSNU-PR government, she has 'an ace in the hole' - a very good chance to crush Yushchenko in the next presidential elections.

What is Yushchenko to do with this woman? Perhaps there are worse fates than just lying back and thinking of Ukraine?

Those russophobic, crazy Brits

This is interesting:

British Trade and Industry Minister Alan Johnson had eight meetings this year on how to block a potential takeover of British utility Centrica, the country's biggest gas supplier, by Gazprom, the Financial Times said on Monday.

Some collateral damage from the Ukraine/Russia gas crisis, no?

Depressing thoughts..

Yekhanurov has discovered he shares quite a number of values with PR, and sees much in common with them on the development of the Ukrainian economy. About 40% of his ideas coincide with those of the Socialists. And as for BYuT? Well, according to Yekhanurov, they don't have an economic program at all.

Meanwhile Taras Chornovil, Partiya Regioniv front man and their #4, has again declared that PR are ready to co-operate with the NU bloc in any coalition, on the proviso that Yanukovych is PM, and that the ghastly pair of Mykola Azarov and Andriy Klyuyev are vice PM's and ministers of finance and of fuel and energy respectively. What despicable characters they are is documented in Andrew Wilson's excellent "Ukraine's Orange Revolution" [Yale University Press].

The thought that they may wield power again propped up by the 'Our Ukraine' bloc is truly depressing, even for an outside observer like me.

And Yushchenko hints that he is not against new Kyiv mayor, "nutty-as-a-fruitcake" Leonid Chervonetsky, [see photo] who is already sacking people, changing locks, and controlling affairs using newly-introduced security men in the Kyiv city state administration..

An article [in Ukrainian] on pro-BYuT 'Kiyany' website describes was a swamp of nepotism the Kyiv city council has now become, and helps explain why things are turning out as they are..

Maybe there will be something more cheerful tomorrow.

So, how many were there?

Hi all. From an investor point of view it makes no difference whether she said that her government would seize 3000 businesses or whether she said that there might be problems with the 3000. Re-privatization was always about a process anyway and her government would determine which ones would be reviewed under that. Investors were looking for some indication about what her government’s position would be on it. Saying anything about 3000 companies in that context put a cloud not only on 3000 of them, whichever those were, but the number was large enough to put a cloud an any other business in Ukraine.

Are there any lasting consequences? There must be because it keeps coming up and not only from her critics. But she can lay it all to rest now by simply saying how many she is going to inquire into when she takes the reins. I suspect she won’t/can’t do that because of her supporters. They want justice and who can blame them, a point I have made over and over here. The problem is that by getting that justice you may just drive off the very people who would be your friends. (Another point I have been making here.) As a case in point, Western companies that are here offer Ukrainian employees much better benefits and pay, on the whole, than their Ukrainian and Russian counterparts. Is that in the interests of Ukrainians?

And that’s the other problem with it. Discouraging Western investment doesn’t mean there will be no investment (though, it will always mean investment at much lower levels) it means that investment will come in from other areas. The chief candidate right now is Russia. Russians invest here now; they have more of a stomach for the risk (another point I have been making here.) But with Russian investment comes less transparency and less accountability. And it also comes freighted with Kremlin geopolitical ambitions. Russian businesses, to stay in business, have to bow to the Kremlin—pure business decisions must take a back seat to that. Some people might like that but is it the best for the country?

The same sorts of things can be said about going after the oligarchs and the other “bandits.” Will it serve the interests of Ukraine in the end? When they start lining up at the European Court of Human Rights making their case for persecution and framing it in ways that Europeans understand, let me know. (See here for something on this.) Will the Europeans have patience with it especially when it is remembered those Ukrainians took our natural gas? Maybe they won’t do it. But one of the markers of good governance should not be leaving an important flank exposed to the enemy.

A lot more can be said and maybe should be said, but won’t be said by me. I am out of the government critiquing business. I have to function here and don’t want that ability to be compromised in the future. So anything further to be said on the subject will be said to clients only from now on.

But I do wish them all success. I would like to see more Ukrainians better off than just the Mercedes and BMW owners around here. Of course, that may mean putting justice on hold-- and there's the rub.

Skulduggery in Kyiv city council

The newly-elected oddball mayor of Kyiv Leonid Chervonetsky was sworn into office Friday, apparently after a delay of two hours during which time he managed to scrape together a quorum of 61 registered city council deputies out of a total of 120. [Scott has previously posted info on this guy.]

Some deputies claim they were not aware that the ceremony was taking place, while others claim only 55 deputies were present. It all seems to have been rather a farce.

On Saturday a coalition comprising a total of 62 deputies called 'A Just Kyiv' led by Vitaliy Klychko, was formed by BYuT, Pora-PRP, and 'Hromadskyi aktyv Kyyeva' [HAK] factions.

Today Yuliya Tymoshenko condemned the support given to Chervonetsky's deputies by the NU and PR blocs. "I consider that such a coalition will practically make Kyiv a new business bridgehead for certain groupings, and practically ruin the aim of making Kyiv a civilized capital where politicians act fairly and honestly, in particular in the City council," she underlined.

She also promised that BYuT will not form any coalitions in any regional, city or oblast council with PR.

The Kyiv city council comprises 8 different political factions with 15 deputies from NU bloc, 9 from PR, and 21 from Chervonetsky's bloc. BYuT is the largest faction with 41 deputies.

I wonder if the NU 'nachal'stvo' will comment on this skulduggery..

Lingering sense of injustice

The following story featured in Friday's Ukrainian 'Expres' newspaper.

"Former Yushchenkite and now colleague of Yanukovych stole $3.5Bn?

Independent trade unions blame the Federation of Trade-Unions of Ukraine of illegally appropriating billions of dollars-worth of property.

They consider that nearly 300 objects* in Crimea, in the Carpathian mountain region, and elsewhere were sold in 'shadow' schemes. "We suspect that property to the value of $3.5 Bn has disappeared. The person responsible for this is Oleksandr Stoyan," said the head of Federation Mykhaylo Volynets.

He also accuses Oleksandr Yurkin, the new head of the Trade Union Federation, of involvement in the misappropriation. Both Yurkin and Stoyan deny all the accusations.

Stoyan refused to give any information of his earnings, or to show reporters his new dacha in Koncha-Zaspa, a swanky new recreation and leisure suburb of Kyiv where many of the rich and powerful, including Kuchma, have built dachas and live. Stoyan, who is #23 on the PR parliamentary election list explained, "The builders are still working there, and I haven't planted any flowers." In the previous parliament he had been on the NU bloc list."

Whatever the veracity of this particular story, millions of Ukrainians, not unreasonably, feel that most privatizations were 'a steal' - they remain poor, whilst the likes of the two above have made it 'big', and that some are now taking advantage of criminal immunity in parliament .

Yuliya Tymoshenko taps into this ground swell of opinion on this core issue, and until some kind of legal clear-out procedure take place, the sense of injustice will linger.

On 16th February last year, Tymoshenko, when she was PM, gave a press conference from which sprung forth the story that she intended to privatize 3000 enterprises, spooking so many investors. Certainly a lot of damage was done, vital investments went elsewhere, and Tymoshenko herself was branded a rampant 're-nationalizer'. The story was reported in ForUm thus:

I've translated some bits so that readers can make up their own mind what Tymoshenko's intentions were, and whether she was wise to tackle this matter in the manner she did:

"Tymoshenko to sort out the privatizations of 3,000 enterprises"

"The gov't is to review the legality of privatization of more than 3,000 enterprises, the results of the inspections of which were set aside by the Prosecutor General of Ukraine for five years," declared PM Yuliya Tymoshenko.

"The leaders of the state covered up these criminal transgressions during the time of privatization... the absence of competition, and unprecedented reduction of the estimated value of state-owned objects...childrens camps, and superb industrial establishments were sold off for kopeks."

PM Tymoshenko reported that at that day's Cabinet meeting, the gov't and Procurator General's office had co-ordinated their actions. "And for each establishment where transgressions are exposed, a plan will be adopted, so that we can return to the state, that which was illegally transferred into private hands, solely by deceit and corruption," noted the head of the gov't.

She also reported that the given materials would be analyzed by the Ministry of Justice, and after this they would be handed over to a court. "We will return to state ownership, in an absolutely legitimate way, that which was illegally privatized."

"Nobody today can say what the number of objects that will be returned to state ownership [will be]. It has been established that violations during privatization occurred, and there are courts that should investigate these questions," she emphasized.

*probably holiday camps, sanatoria etc. LEvko

Political hokey-kokey*

Yesterday it looked like the 'democratic coalition' was on the way to being formed when Tymoshenko, Moroz, and Bezsmertnyi signed a coalition protocol.

Today NSNU #1 Yekhanurov stated that according to the protocol, Tymoshenko may well not be PM, 'correcting' Tymoshenko's statement that it will be she that is the main pretender to the post of PM.

Yekhanurov queried paragraph 6 on the signed protocol and says the political council of NU are studying the matter. According to Yekhanurov, "It's important that people understand the principles of the work of this coalition, and not whose physiognomy will head the government, or 'adorn' the cabinet."

Tymoshenko has wasted no time responding, and upped the ante, striking back at NU's backpedalling. She told unian: "The protocol on the [democratic] coalition will be denounced, if NU does not sign it in its totality."

Bezsmertnyi said earlier today that NSNU party council presidium has excluded article 6 of the protocol which may be interpreted that BYuT, as biggest coalition member, selects the PM. Article 6 states that the agreement on the coalition "is being prepared on the basis of the principles, laid out in the memorandum project on [setting up] of the coalition of democratic forces." The memorandum envisaged that the PM will be proposed by the political force who obtains most votes in the election ballot.

Yushchenko held quite a lengthy press conference a couple of days ago. He was quite irritable, rude and agressive to some of the journalist's answering their questions. When asked if he would he agree to YT as PM, instead of obfuscating [which he should really learn to do] he curtly replied, it was not a matter for that day. He praised Yekhanurov - 'a talented PM who wants to be perfect'. During the press conference he mentioned Y.T. only once by name. "Yesterday..it became apparent that Moroz and Tymoshenko will support my programe.."

Now the NU bloc is insisting that article 6 be removed from the coalition protocol.

Tymoshenko's response in a TV interview is that article 6 is the 'heart of the protocol' in which all the procedures for creating the coalition agreements are laid out. She appeals President Yushchenko to get involved in the processes going on in NU and stop the ruinous steps of politicians who are fighting to create a coalition between PR and the NU bloc.

But he clearly is in no way reconciled to working with YT as PM even after the mauling NSNU received in the elections.

*English dance song. 'Left leg in, right leg out, in out, in out, shake it all about..

Orange coalition [re]formed

Yuliya Tymoshenko, Oleksandr Moroz, and Roman Bezsmertnyi to-night signed a protocol on the priciples of formation of the coalition of democratic forces in the newly-elected parliament. The terms of the protocol indicate Tymoshenko will be PM.

Maybe I'm a cynic, but I feel like the miserable old drunk at a wedding. "I give it six months.." But can 'Regiony' stick together for that long?