In an opinion poll carried out in Kyiv last week, 77% of respondents considered the increases in housing and communal services tariffs were unjustified: 45% said they cannot pay the new tariffs, and 44% said they could, but that it would be difficult.
Details of a similar poll taken in Donetsk are described in an article entitled, 'To pay or not to pay, this is the question..' in today's 'Donbass' newspaper.
In their poll, 40% of those in employment said they would not pay, against 54% who said they would.
47% of pensioners said they would not pay and and equal portion, 47%, said they would.
Three quarters of the respondents who are intending not to pay explained that this was because they just don't have the money in their family budget to do this.
My bet is that this is a far greater worry for most families that questions about NATO, special status for the Russian language, possible entry into the EU, squabbles in the VR, and so on.
Monday, November 13, 2006
Showdown over Tarasyuk?
Yanukovych declared on Saturday that he is going to turn to the President and Parliament with an initiative to sack Minister of Foreign Affairs, Presidential appointee, Borys Tarasyuk.
"What can my attitude be to a minister who states that he is in opposition to the government? This means he does not agree with the program of the government. If you are a man, if you have principles, write a [resignation] declaration, and go. And if not, if you don't want to do this, then of course, we'll help you," said the PM in a TV interview.
Yanuk was particularly pi$$ed that Secretary General of the Council of Europe, Terry Davis, did not see him, as planned when he was in Kyiv several days ago. Apparently Davis was 'held up' at a lunch with Tarasyuk.
Davis had been particularly critical of the way the first two rounds of the 2004 Presidential elections were conducted and so is well aware of the hanky-panky that went on at that time.
A few weeks ago it was reported in the Ukrainian media that during a cabinet meeting, Yanuk broke off when addressing the cabinet, to warn Tarasyuk for 'snickering'. Rumor has it that when Yanuk was last PM, such matters were, on occasion, resolved with fists.
I think Tarasyuk is a cool operator who knows exactly what he is doing - for Yushchenko to 'give him up' and accept a PoR candidate for this position would be a big humiliation. But it is also clear that 'playground bully' Yanuk is sick of brainy teacher's pet Borys.
"What can my attitude be to a minister who states that he is in opposition to the government? This means he does not agree with the program of the government. If you are a man, if you have principles, write a [resignation] declaration, and go. And if not, if you don't want to do this, then of course, we'll help you," said the PM in a TV interview.
Yanuk was particularly pi$$ed that Secretary General of the Council of Europe, Terry Davis, did not see him, as planned when he was in Kyiv several days ago. Apparently Davis was 'held up' at a lunch with Tarasyuk.
Davis had been particularly critical of the way the first two rounds of the 2004 Presidential elections were conducted and so is well aware of the hanky-panky that went on at that time.
A few weeks ago it was reported in the Ukrainian media that during a cabinet meeting, Yanuk broke off when addressing the cabinet, to warn Tarasyuk for 'snickering'. Rumor has it that when Yanuk was last PM, such matters were, on occasion, resolved with fists.
I think Tarasyuk is a cool operator who knows exactly what he is doing - for Yushchenko to 'give him up' and accept a PoR candidate for this position would be a big humiliation. But it is also clear that 'playground bully' Yanuk is sick of brainy teacher's pet Borys.
Saturday, November 11, 2006
Improving people's lives..
Donetsk city council held an unusual and important meeting today during which deputies voted to double housing charges in one stroke. A council commission had proposed a threefold increase, but the mayor of Donetsk, Aleksandr Lukyanchenko, held out for a less punitive increase.
During the session deputies could not agree on the increases in tariffs, and the speaker called for a break during which 'Regionaly' held a meeting on their own. Eventually, Lukyanchenko's proposal to 'only' double tariffs was upheld by 50 deputies, 4 voted against, 2 abstained, and 6 did not vote. Out of a total of 81 deputies, only 61 turned up on the day. The city council comprises two fractions - PoR with 68 deputies, and 13 'Vitrenkovtsy'. Motions are normally carried with boring regularity almost unanimously, just as in 'the good old days'.
This is the second time this autumn that communal tariffs have been increased. From 1st October bus fares increased by one and a half times in Donetsk, and on the 4th October 'GorElektroTransport' also went up. Heating and hot water charges have almost doubled too. The leader of urban opposition, the chairman of the civic organization "Gromads'ka Rada" Aleksandr Kolchak, made several statements to representatives of the media about the local authority's extortion of the city's inhabitants.
"When the local authority is converted from the defenders of people and social partners to prison guards and tax collectors - they becomes a general evil, so it is completely possible that in the very near future, inhabitants themselves will terminate the authority of those whom they elected by mistake in 2006," said Kolchak.
Commenting to novosti journalists, the secretary of city council Nikolai Levchenko stated that, "Today any opposition between the council deputies arose around just small dispute, we had a discussion," and when asked about the legality of voting on the motion which took place three times, he claimed 'the reglament' had not been breached.
Representatives of the Nataliya Vitrenko bloc severely criticized the decision of their associates, and declared they will refer the matter to the procurator and a court of law in order to cancel today's decision. There had even been rumour that the "vitrenkovtsy" would block the speaker's platform preventing any vote taking place.
PoR's website announces to visitors today that 'In three months of work, the Min. of Finance has corrected the negative situation with the execution of the 2006 budget, which occurred during the first half of the current year..
The article is accompanied with this graph - maybe inappropriate in the light of the huge increases in housing and utility charges facing the citizens of most Ukrainian cities ..
ps some interesting photos on the novosti.dn link
During the session deputies could not agree on the increases in tariffs, and the speaker called for a break during which 'Regionaly' held a meeting on their own. Eventually, Lukyanchenko's proposal to 'only' double tariffs was upheld by 50 deputies, 4 voted against, 2 abstained, and 6 did not vote. Out of a total of 81 deputies, only 61 turned up on the day. The city council comprises two fractions - PoR with 68 deputies, and 13 'Vitrenkovtsy'. Motions are normally carried with boring regularity almost unanimously, just as in 'the good old days'.
This is the second time this autumn that communal tariffs have been increased. From 1st October bus fares increased by one and a half times in Donetsk, and on the 4th October 'GorElektroTransport' also went up. Heating and hot water charges have almost doubled too. The leader of urban opposition, the chairman of the civic organization "Gromads'ka Rada" Aleksandr Kolchak, made several statements to representatives of the media about the local authority's extortion of the city's inhabitants.
"When the local authority is converted from the defenders of people and social partners to prison guards and tax collectors - they becomes a general evil, so it is completely possible that in the very near future, inhabitants themselves will terminate the authority of those whom they elected by mistake in 2006," said Kolchak.
Commenting to novosti journalists, the secretary of city council Nikolai Levchenko stated that, "Today any opposition between the council deputies arose around just small dispute, we had a discussion," and when asked about the legality of voting on the motion which took place three times, he claimed 'the reglament' had not been breached.
Representatives of the Nataliya Vitrenko bloc severely criticized the decision of their associates, and declared they will refer the matter to the procurator and a court of law in order to cancel today's decision. There had even been rumour that the "vitrenkovtsy" would block the speaker's platform preventing any vote taking place.
PoR's website announces to visitors today that 'In three months of work, the Min. of Finance has corrected the negative situation with the execution of the 2006 budget, which occurred during the first half of the current year..
The article is accompanied with this graph - maybe inappropriate in the light of the huge increases in housing and utility charges facing the citizens of most Ukrainian cities ..ps some interesting photos on the novosti.dn link
Thursday, November 09, 2006
O.R.#2?
Curious article in today's 'Donbass' newspaper entitled:
"Is a revolution being preparing in Donetsk?"
The leader of the Committee of Voters of Donbass [K.I.D. - website here ], Aleksandr Khryakov, told journalists that he considers that, "An Orange Revolution #2," is being prepared in Donetsk.
He says he has information that western funds are financing numerous public organizations of a nationalist character, which are now very active in Donbas, adding there are precisely 270 of them. According to Khryakov, this process is proceeding with the support of the Donetsk city council, and also with the support of the city's Head Administration for Community Links, Maxim Rovinskiy.
"The nationalistic forces, beginning with the World Forum of Ukrainians, and also from the diaspora, will soon start an investment project to introduce into the economic field of the Ukraine a network of the public organizations, directed primarily for the purpose of "splitting the the electoral field of Donbass," asserts the KID leader. The headquarters of these organizations, in the opinion of Khryakov, are in Brussels, Warsaw, L'viv, Kyiv and Donetsk. These organizations will now conduct a "brutal battle for the power" in Ukraine.
He mentions" numerous flows of money, into Donets region, directed toward work with the young people, seminars in forests etc.
When 'Donbass' correspondents asked Maxim Rovinskiy to comment on Kryakov's statements, he replied: "This charge would even be flattering to me if it was made by someone other than Kryakov."
The Donetsk mayor Aleksandr Luk'yanchenko called these charges fantasies. "Probably, such fantasies came to mind to Mr. Khryakov on the second anniversary of the Orange Revolution," he said.
OK, not much of a story, but if but if protests against swingeing increases in housing and utility charges occur, then we know who will be blamed.
The Novosti.dn website posts a riposte from Denis Tkachenko - founder of the ngo.donetsk site [Maybe there's something in it after all..]
"If a baboon has a red 'zadnitsa', this does not necessarily mean, that it is in a revolutionary frame of mind."- V. Shenderovich
Also worthy of attention is a brief interview in 'Expres'with Hennadiy Udovenko - senior Ukrainian diplomat even in the days of the Soviet Union, a former Ukrainian foreign minister and UN ambassador, and now an NSNU VR deputy, who says,
"Russian capital will pulverise the 'Donetski'"
"Russian capital today has very powerful forces in Ukraine. The Yanukovych government is creating advnatageous conditions for a massive offensive of this capital in Ukraine.
Having gained control in Ukraine, Russian capital will destroy both Ukrainian oligarchs, and those who aspire to them. This powerful force will not indulge any opposition.
It is very strange that the ruling circles in power are striving as quickly as possible to enter the Single Economic Space. Donetsk capital has certain positions in Ukraine, but Russian capital is already stepping on its heels. Anti-Ukrainians and anti-state forces are activating their actions, taking advantage of their influence in parliament, and exploiting anti-Nato, and pro-Russian attitudes in the government.
What surprises me is the short-sightedness of the 'Regiony': if tomorrow Russian capital comes into Ukraine, they'll be pulverised! They don't realise that it is the independence of Ukraine has secured their businesses, and that they should continue on this independent path...Taking into account the substance of Russian capital and its endeavour to become the ruling power in Ukraine, the authorities should give this matter serious thought before giving this capital the 'green light'.
"Is a revolution being preparing in Donetsk?"
The leader of the Committee of Voters of Donbass [K.I.D. - website here ], Aleksandr Khryakov, told journalists that he considers that, "An Orange Revolution #2," is being prepared in Donetsk.
He says he has information that western funds are financing numerous public organizations of a nationalist character, which are now very active in Donbas, adding there are precisely 270 of them. According to Khryakov, this process is proceeding with the support of the Donetsk city council, and also with the support of the city's Head Administration for Community Links, Maxim Rovinskiy.
"The nationalistic forces, beginning with the World Forum of Ukrainians, and also from the diaspora, will soon start an investment project to introduce into the economic field of the Ukraine a network of the public organizations, directed primarily for the purpose of "splitting the the electoral field of Donbass," asserts the KID leader. The headquarters of these organizations, in the opinion of Khryakov, are in Brussels, Warsaw, L'viv, Kyiv and Donetsk. These organizations will now conduct a "brutal battle for the power" in Ukraine.
He mentions" numerous flows of money, into Donets region, directed toward work with the young people, seminars in forests etc.
When 'Donbass' correspondents asked Maxim Rovinskiy to comment on Kryakov's statements, he replied: "This charge would even be flattering to me if it was made by someone other than Kryakov."
The Donetsk mayor Aleksandr Luk'yanchenko called these charges fantasies. "Probably, such fantasies came to mind to Mr. Khryakov on the second anniversary of the Orange Revolution," he said.
OK, not much of a story, but if but if protests against swingeing increases in housing and utility charges occur, then we know who will be blamed.
The Novosti.dn website posts a riposte from Denis Tkachenko - founder of the ngo.donetsk site [Maybe there's something in it after all..]
"If a baboon has a red 'zadnitsa', this does not necessarily mean, that it is in a revolutionary frame of mind."- V. Shenderovich
Also worthy of attention is a brief interview in 'Expres'with Hennadiy Udovenko - senior Ukrainian diplomat even in the days of the Soviet Union, a former Ukrainian foreign minister and UN ambassador, and now an NSNU VR deputy, who says,
"Russian capital will pulverise the 'Donetski'"
"Russian capital today has very powerful forces in Ukraine. The Yanukovych government is creating advnatageous conditions for a massive offensive of this capital in Ukraine.
Having gained control in Ukraine, Russian capital will destroy both Ukrainian oligarchs, and those who aspire to them. This powerful force will not indulge any opposition.
It is very strange that the ruling circles in power are striving as quickly as possible to enter the Single Economic Space. Donetsk capital has certain positions in Ukraine, but Russian capital is already stepping on its heels. Anti-Ukrainians and anti-state forces are activating their actions, taking advantage of their influence in parliament, and exploiting anti-Nato, and pro-Russian attitudes in the government.
What surprises me is the short-sightedness of the 'Regiony': if tomorrow Russian capital comes into Ukraine, they'll be pulverised! They don't realise that it is the independence of Ukraine has secured their businesses, and that they should continue on this independent path...Taking into account the substance of Russian capital and its endeavour to become the ruling power in Ukraine, the authorities should give this matter serious thought before giving this capital the 'green light'.
Wednesday, November 08, 2006
Winter of discontent..again?
This winter Ukrainians are being hit with massive price increases - a doubling and more of their housing-communal-services tariffs and utility charges.
I've posted blogs about rumblings of discontent, particularly in the eastern parts of the country previously. Today 'Oglyadach' publishes results of a recent opinion poll in which repondents were questioned on these matters.
72% thought that there was no justification for the increases.
31.3% said they would refuse to pay the increased tariffs,
and 48.5% thought it was the government that was to blame for the increases.
Surprisingly only 14.4% considered that no one was responsible, and that the tariffs had increased because of increase in the price of Russian gas.
The author ends his article rather ominously: "So with the first cold spells of November and December we should expect serious mass actions. The experience of Orange revolution shows that the snows of revolution are not an obstacle.."
Today the President's Secretariat issued a detailed statement: "The President's Secretariat calls on the Government and VR to take into account the Head of State's comments on the Projected 2007 Budget," which enumerates the many parts of the budget with which he is not happy.
This may well develop into a deeper conflict between the Pres and Gov - the Pres could refuse to sign-off the budget, gaining some 'brownie points' from the electorate.
The 'Novosti.dn' website has published a list of the most valuable Ukrainian corporations:
1. Naftohaz Ukrainy [state-owned oil and gas co.] $10.9Bn
2. Metinvest Holding [SCM] $18.14Bn
3.UkrZaliznytsya [State Railroad] $12.53Bn
4.Industrial Union of Donbas $10.22Bn
5. NAEK Energoatom[State Atomic Energy Company] $7.18Bn
6.TNK-BP [Alfa-Group] $7.07Bn [incl.Russian Mikhail Fridman]
7.MMK im.Il'ich [Mariupol worker's collective] $7.00Bn
8.DTEK - Donbas Fuel and Energy Company [SCM] $5.8Bn
9.Interpipe [Pinchuk] $5.7Bn
10.Zaporizhstal $5.18Bn [Interesting link here]
12. Mittal Steel Ukraina $5.09Bn
and so on.
Predominantly in eastern part of the country..
I've posted blogs about rumblings of discontent, particularly in the eastern parts of the country previously. Today 'Oglyadach' publishes results of a recent opinion poll in which repondents were questioned on these matters.
72% thought that there was no justification for the increases.
31.3% said they would refuse to pay the increased tariffs,
and 48.5% thought it was the government that was to blame for the increases.
Surprisingly only 14.4% considered that no one was responsible, and that the tariffs had increased because of increase in the price of Russian gas.
The author ends his article rather ominously: "So with the first cold spells of November and December we should expect serious mass actions. The experience of Orange revolution shows that the snows of revolution are not an obstacle.."
Today the President's Secretariat issued a detailed statement: "The President's Secretariat calls on the Government and VR to take into account the Head of State's comments on the Projected 2007 Budget," which enumerates the many parts of the budget with which he is not happy.
This may well develop into a deeper conflict between the Pres and Gov - the Pres could refuse to sign-off the budget, gaining some 'brownie points' from the electorate.
The 'Novosti.dn' website has published a list of the most valuable Ukrainian corporations:
1. Naftohaz Ukrainy [state-owned oil and gas co.] $10.9Bn
2. Metinvest Holding [SCM] $18.14Bn
3.UkrZaliznytsya [State Railroad] $12.53Bn
4.Industrial Union of Donbas $10.22Bn
5. NAEK Energoatom[State Atomic Energy Company] $7.18Bn
6.TNK-BP [Alfa-Group] $7.07Bn [incl.Russian Mikhail Fridman]
7.MMK im.Il'ich [Mariupol worker's collective] $7.00Bn
8.DTEK - Donbas Fuel and Energy Company [SCM] $5.8Bn
9.Interpipe [Pinchuk] $5.7Bn
10.Zaporizhstal $5.18Bn [Interesting link here]
12. Mittal Steel Ukraina $5.09Bn
and so on.
Predominantly in eastern part of the country..
Old pals together again..
Volodymyr Shcherban, 55, a former governor of Sumy Oblast, was deported from the United States to Ukraine on 4th November. Ukrainian prosecutors had issued an international arrest warrant for Shcherban in 2005, charging him with vote fraud during the 2004 Presidential election, extortion, and abuse of office. Scherban was detained in Florida in October 2005 on charges of being in the United States illegally. He was not taken into custody after returning to Kyiv, but released because several influential deputies from the ruling coalition signed a pledge that he would voluntarily appear for interrogation whenever prosecutors summon him.In 2004 Shcherban gave Sumy students a particularly hard time . Their desperate but dignified appeals, some in rudimentary English, posted on the internet were really quite moving.
More on Shcherban's background here.
I've translated portions of an hubristic interview [one of several] he gave in today's 'Obozrevatel', entitled: 'Akhmetov put up bail for me.' He makes a few 'Freudian slips'.
In the interview he says that in order to leave the US, a bail of $2M had to paid, and admits Akhetov's System Capital Management [SCM] put up the cash. [Even though they had previously denied this.]
When asked if he requested Akhmetov to help him out, he replies, "You have to ask him," and claims that had SCM not put up the money, then Industrial Union of Donbas [IUD], owned by Serhiy Taruta, and Vitaly Hayduk who is now secretary of Yushchenko's National Security and Defense Council, would have put up the bail.
"I have known what persecution is since 1996 when Kuchma sacked me as the head of Donetsk OblAdministratsiya... one of the reasons for this was the fact that I was supposed to have organized an attempt on the life of premier Lazarenko to take place here, in Kyiv, on the Rybalskyi bridge. The same now. I know I have not broke either Ukrainian or American laws... well, perhaps just immigration [laws]...
Wasn't it foolish, to burn your fingers over an overdue visa?
"This was usual tourist visa."
Shcherban explains that in the USA he was represented by one of the largest companies of attorneys in that country.
In 2004, Presidential election falsifications in the Sumy oblast, where Shcherban was governor, were maybe even greater that in Donetsk, but Shcherban denies any falsifications took place and suggests that local commissions favourable to Yushchenko, who comes from that part of Ukraine, exaggerated the extent of election fraud.
"And your son [Artem - presently a PoR VR deputy] withdrew [from bank accounts] $50 million in just a few days, then transferred them through mediators so that you had something to eat in the USA?"
"Yes, last year, in April he did make withdrawals - from the "Rodovіd bank", as I recall. But this was before any criminal case was opened, and not in such quantities, certainly. Lutsenko exaggerates! Although I'm not poor person, I came into politics from business...
What are your relations with Timoshenko like?
"Normal. I have never quarrelled with her. Generally I am a man who dislikes conflicts, but I advise you - don't touch me - I'll eat you, together with your boots."
When asked about his businesses, he replies: "I participated also, in the creation IUD. We created employment, together with Taruta and Hayduk. The economy of region was put onto fresh tracks. They wanted finished products, and not raw material to be exported from the Donetsk region. Remember, I was governor - Hayduk and I examined huge three metre long diagrams in my office. They were spread on the floor and we crawled around on our knees, deciding where the coal has to go, and where coke and metal also, so that the region would develop...Vitaly Anatolevych [Hayduk] worked with me in my provincial administration. I invited him to be my deputy... Andrey Klyuev was also my former deputy - I took him on as a 30- year old...
Monday, November 06, 2006
Price of gas
The BBC last night broadcast a current events 'Panorama' program -'Price of gas' .
There are some bits on RosUkrEnergo, Firtash et. al. - about 16 minutes into the program and onward. It includes brief interviews with Yuliya T., a decidedly 'shifty' and sweaty Robert Shelter Jones, and old clips of Mogilevich.
See it here
And a full transcript here
Here's a portion:
YULIA TYMOSHENKO: When I was the Prime Minister,. We provided the President of Ukraine with documented proof that some powerful criminal structures, are behind the RosUkrEnergo company. I can only say as a politician: we have no doubts whatsoever that the man named Mogilevich is behind the whole operation called RosUkrEnergo.
STEVE BRADSHAW: Simeon Mogilevich is on the FBI's most wanted list - wanted for alleged money-laundering.
Seven years ago Panorama made a film about him and asked about his complex business deals- and why he'd opened offshore accounts in Britain's channel islands.
Then in April this man - Dimitry Firtash - a Ukranian gas trader - said it's not Mogilevich - it's my company that owns the mystery half of RosUkrEnergo.
Attention now focussed on mister Firtash's business associates - including one who did seem - well - unusual. Her name - Louise Lukacs. Gas baron? Mobster?
No - out of work Romanian actress with a role in another gas trading company MR Firtash had helped set up.
She'd agreed to be on the share register saying she needed help with her phone bill.
We asked Mr Firtash for an interview, but were offered instead his British representative.
STEVE BRADSHAW:But what on earth was this woman doing with a company in the first place?
ROBERT SHETLER-JONES: As is usual in some private businesses, ownership is held on trust for the beneficial owner. It was ... this was one of the trustees who was known to the team that created the company and she was asked, approached, to be a trustee on behalf of Mr Firtash.
STEVE BRADSHAW: Figure head for Mr Firtash.
ROBERT SHETLER-JONES: Absolutely .
STEVE BRADSHAW: Necessarily because... ?
ROBERT SHETLER-JONES: Mr Firtash at that time did not want to be a public figure.
STEVE BRADSHAW: Was Mr Mogilevich - people wanted to know - perhaps using Mr Firtash as a figurehead? The two men had met and had used the same lawyer.
But both deny ever having done business together. Mr Firtash says the hugely lucrative shares he holds in RosUkrEnergo are his own.
ROBERT SHETLER-JONES: Mr Firtash is his own man. I think you have to look at...
STEVE BRADSHAW: Are you sure he's not acting on behalf of anybody else?
ROBERT SHETLER-JONES: I'm positive he's not acting on behalf of anybody else
STEVE BRADSHAW: Would you know?
ROBERT SHETLER-JONES:Given how close I am to him and his business I would know. I would argue that Rosukrenergo is not a murky company, in fact it is very open and transparent. It is a Swiss registered company. The owners of the company are known, and Ukraine is benefiting today from some of the cheaper gas in Europe as a result of RosUkrenergo's business.
STEVE BRADSHAW: Why could Rosukrenergo matter to us?
JONATHAN STERN: What happens ... if RosUkrenergo breaks up because there are some problems of governance, or some problems of alleged mafia connections, that could eventually disrupt gas supplies, and that's what we should be concerned about.
STEVE BRADSHAW: Gas supplies to?
JONATHAN STERN: That could disrupt Russian gas supplies to Europe. That's why we need to be concerned about it.
There are some bits on RosUkrEnergo, Firtash et. al. - about 16 minutes into the program and onward. It includes brief interviews with Yuliya T., a decidedly 'shifty' and sweaty Robert Shelter Jones, and old clips of Mogilevich.
See it here
And a full transcript here
Here's a portion:
YULIA TYMOSHENKO: When I was the Prime Minister,. We provided the President of Ukraine with documented proof that some powerful criminal structures, are behind the RosUkrEnergo company. I can only say as a politician: we have no doubts whatsoever that the man named Mogilevich is behind the whole operation called RosUkrEnergo.
STEVE BRADSHAW: Simeon Mogilevich is on the FBI's most wanted list - wanted for alleged money-laundering.
Seven years ago Panorama made a film about him and asked about his complex business deals- and why he'd opened offshore accounts in Britain's channel islands.
Then in April this man - Dimitry Firtash - a Ukranian gas trader - said it's not Mogilevich - it's my company that owns the mystery half of RosUkrEnergo.
Attention now focussed on mister Firtash's business associates - including one who did seem - well - unusual. Her name - Louise Lukacs. Gas baron? Mobster?
No - out of work Romanian actress with a role in another gas trading company MR Firtash had helped set up.
She'd agreed to be on the share register saying she needed help with her phone bill.
We asked Mr Firtash for an interview, but were offered instead his British representative.
STEVE BRADSHAW:But what on earth was this woman doing with a company in the first place?
ROBERT SHETLER-JONES: As is usual in some private businesses, ownership is held on trust for the beneficial owner. It was ... this was one of the trustees who was known to the team that created the company and she was asked, approached, to be a trustee on behalf of Mr Firtash.
STEVE BRADSHAW: Figure head for Mr Firtash.
ROBERT SHETLER-JONES: Absolutely .
STEVE BRADSHAW: Necessarily because... ?
ROBERT SHETLER-JONES: Mr Firtash at that time did not want to be a public figure.
STEVE BRADSHAW: Was Mr Mogilevich - people wanted to know - perhaps using Mr Firtash as a figurehead? The two men had met and had used the same lawyer.
But both deny ever having done business together. Mr Firtash says the hugely lucrative shares he holds in RosUkrEnergo are his own.
ROBERT SHETLER-JONES: Mr Firtash is his own man. I think you have to look at...
STEVE BRADSHAW: Are you sure he's not acting on behalf of anybody else?
ROBERT SHETLER-JONES: I'm positive he's not acting on behalf of anybody else
STEVE BRADSHAW: Would you know?
ROBERT SHETLER-JONES:Given how close I am to him and his business I would know. I would argue that Rosukrenergo is not a murky company, in fact it is very open and transparent. It is a Swiss registered company. The owners of the company are known, and Ukraine is benefiting today from some of the cheaper gas in Europe as a result of RosUkrenergo's business.
STEVE BRADSHAW: Why could Rosukrenergo matter to us?
JONATHAN STERN: What happens ... if RosUkrenergo breaks up because there are some problems of governance, or some problems of alleged mafia connections, that could eventually disrupt gas supplies, and that's what we should be concerned about.
STEVE BRADSHAW: Gas supplies to?
JONATHAN STERN: That could disrupt Russian gas supplies to Europe. That's why we need to be concerned about it.
Sunday, November 05, 2006
Battle for metal
This week's 'Bez Tsenzury' carries a lengthy article about the growing struggle [and possible political and economic ramifications] between the major Donbas financial industrial groups [FIGs]. They are fighting over the supply of raw materials for their heavy industry plants. As usual I've loosly translated most of the significant portions:
Battle for the metal
Increasing opposition between oligarch- metallurgists threatens Ukraine with economic crisis
The Ukrainian State Property Fund [SPF] recently postponed for an indeterminate period the tender competition for the sale of 38,14% of the state-owned block of shares in the "Komsomol mine management" company . This was decided by a special VR commission on questions of privatization, which also ruled against additional conditions being applied in the competition.
Potential bidders accuse the head of the SPF, Socialist Valentina Semenyuk, of favouring the "Mariupol Metallurgical Combine im. Il'icha", [MMK] which is led by leading Socialist Vladimir Boyko.
The head of the VR special investigation commission on questions of privatization, VR BYuT-faction deputy Andriy Kozhemyakin, has referred the matter to the Prosecutor General, the Minister of Internal Affairs, and the security service.
Parliamentarians are concerned that the conditions currently being applied considerably narrow the circle of those who can participate in the competition for the purchase of the block of the shares of enterprise, and consider they are biassed in favour the "Mariupol Metallurgical combine im. Il'icha".
Kozhemyakin claims that that if the privatization tendering process for "Komsomol mine management" were to be fair, then the state would receive three times more money than is being offered by MMK, as most of Ukraine's FIGs would be interested in bidding and purchasing the shares.
"Komsomol mine management" is the sole producer of essential flux limestone for Ukraine's metallurgical enterprises. If the 'Il'ichevtsi' were to regain, via the SPF, the right to purchase the 38% of shares of "Komsomol mine management", practically the entire enterprise would be in their hands, since they already have possession of 60% of the shares, obtained by means of doubtful manipulations. The "Komsomol'sk-Il'ichevsk" conglomerate would become monopolist domestic producers of scarce flux limestone.
According to experts, the chances of opponents 'MMK im. Il'ich' purchasing the 38% of shares on offer will only increase if the leadership of SPF is changed, therefore they do not exclude the possibility of a political war between 'Regionaly' and their ruling coalition partners, the Socialists.
Experts do not doubt the fact that the MMK boss, "people's capitalist" and leading Socialist Vladimir Boyko, would not fail to exploit his position and take vengeance upon his competitors for all the years of humiliations and offences.
Recently the representatives of 'MMK im. Il'icha' accused "Avdeyevskiy KoksoKhimZavod", [coke works] which belongs Rinat Akhmetov, of the intentional disruption of deliveries of coke. Coke reaches other customers on time, but not to us, say the Il'ichevtsy. They have been forced to obtain alternative supplies from the far-off Altai region in Siberia.
'MMK im. Il'ich' has also had problems with iron ore supplies and has had to pay 'through the nose' for their raw material.
At a recent conference of the government commission for mining/metallurgy complex, the deputy minister of 'prompolitiki' Pavel Shinkarenko, in premier Victor Yanukovich's presence, warned that the problems being experienced by the industry right now are worse than have been for ten years or more.
"Metallurgprom" boss Vasiliy Kharakhulakh stated that during September production of cast iron fell sharply - by 134,000 tons, because of the undersupply of coke to 'MMK im. Il'icha' and "Zaporozhstal', and because of an emergency situation at the 'Yenakievsko Metzavod' . Deliveries of home-produced coking coal to the 'koksokhimzavods' have decreased by 180,000 tons.
The association of coke-chemical enterprises "UkrKoks " claims there could be a possible shortage 104,000 tons of coke for metallurgical enterprises during November. Moreover, the Ukrainian KabMin has decided to order 200,000 tons of coal, including coking coal, for supply of power stations, to ensure the country is prepared for winter. There are problems with the import of coal from Russia because of ever-increasing demand from the Chinese. There is also a shortage of suitable railroad wagons for transportation.
The problem is so acute that it seems that in 2007 it will be necessary to import more than 10 millions tons of coking coal - an unrealistically high quantity.
Experts assert that the present metallurgical crisis is the result of the privatisation campaign of "UkrRudProm", started by Yanukovich government as early as 2004.
Then, Ukrainian oligarchs, with the support to President Leonid Kuchma, forced through a law in parliament: "On the characteristics of the privatization of enterprises in the state joint-stock company UkrRudProm ". All the most tasty morsels of the metallurgical pie were divided up between the Financial Industrial Groups's owned by Igor Kolomoyskiy, Vadim Novinskiy, Victor Pinchuk and Rinat Akhmetov.
First of all, they determined ownership of the ore-dressing and iron-ore combines, to ensure that raw material supplies to their own industrial enterprises of were guaranteed.
Their competitors were left with the crumbs. The 'MMK im. Il'icha' was deprived of deliveries of domestic raw material, and interrelations between metallurgists and miners became almost war-like.
Simple workers have also been drawn into oligarchic disputes. [something I have posted blogs about recently] Workers have not only become instruments in the hands of their masters, but also the victims of their business warfare and intrigues. At the beginning of October approximately 150 representatives of the Joint stock company "DonetskKoks" picketed the Donetsk city executive committee. It seems that their enterprise is simply no longer required by its owner - Akhmetov's SCM corporation, which includes more profitable 'koksokhim' works, including the 'Avdeyevskiy KoksoKhim', the largest in Europe.
No one has considered the problems of other metallurgical producers and the universal shortage of coke. Protesters holding meetings are carring banners with the inscriptions "Koksokhim workers are not animals!", "Work for the people - coke for the country", and "Oligarchs - hands off the plant!"
Recently the minister of internal affairs Yuriy Lutsenko declared that in 8 months of the present year the state lost 8 billion hryven as a result of the irregularities in the metallurgical industry, that criminal investigations are proceeding into these matters, and that all material has been transferred to the state prosecutor who will make decision on how to proceed. The Minister emphasized that there was no political sub-text to his investigations, and enterprises were being checked independently of the political preferences of their management.
[Note: Lutsenko was suspended a few days ago from his ministerial position by the VR.
Socialist deputies abstained, and did not vote with their PoR coalition allies. The motion to suspend Lutsenko was carried only with the help of 'renegade' BYuT and NU deputies; some of these BYuT deputies are wealthy and influential associates of Yuliya T suggesting to observers that there may have been collusion between PoR and BYuT on this VR motion.]
If one considers that the fraction of metallurgy in the export balance of our country exceeds 40%, then the losses to Ukraine may even be greater than the more significant numbers quoted by Lutsenko.
Battle for the metal
Increasing opposition between oligarch- metallurgists threatens Ukraine with economic crisis
The Ukrainian State Property Fund [SPF] recently postponed for an indeterminate period the tender competition for the sale of 38,14% of the state-owned block of shares in the "Komsomol mine management" company . This was decided by a special VR commission on questions of privatization, which also ruled against additional conditions being applied in the competition.
Potential bidders accuse the head of the SPF, Socialist Valentina Semenyuk, of favouring the "Mariupol Metallurgical Combine im. Il'icha", [MMK] which is led by leading Socialist Vladimir Boyko.
The head of the VR special investigation commission on questions of privatization, VR BYuT-faction deputy Andriy Kozhemyakin, has referred the matter to the Prosecutor General, the Minister of Internal Affairs, and the security service.
Parliamentarians are concerned that the conditions currently being applied considerably narrow the circle of those who can participate in the competition for the purchase of the block of the shares of enterprise, and consider they are biassed in favour the "Mariupol Metallurgical combine im. Il'icha".
Kozhemyakin claims that that if the privatization tendering process for "Komsomol mine management" were to be fair, then the state would receive three times more money than is being offered by MMK, as most of Ukraine's FIGs would be interested in bidding and purchasing the shares.
"Komsomol mine management" is the sole producer of essential flux limestone for Ukraine's metallurgical enterprises. If the 'Il'ichevtsi' were to regain, via the SPF, the right to purchase the 38% of shares of "Komsomol mine management", practically the entire enterprise would be in their hands, since they already have possession of 60% of the shares, obtained by means of doubtful manipulations. The "Komsomol'sk-Il'ichevsk" conglomerate would become monopolist domestic producers of scarce flux limestone.
According to experts, the chances of opponents 'MMK im. Il'ich' purchasing the 38% of shares on offer will only increase if the leadership of SPF is changed, therefore they do not exclude the possibility of a political war between 'Regionaly' and their ruling coalition partners, the Socialists.
Experts do not doubt the fact that the MMK boss, "people's capitalist" and leading Socialist Vladimir Boyko, would not fail to exploit his position and take vengeance upon his competitors for all the years of humiliations and offences.
Recently the representatives of 'MMK im. Il'icha' accused "Avdeyevskiy KoksoKhimZavod", [coke works] which belongs Rinat Akhmetov, of the intentional disruption of deliveries of coke. Coke reaches other customers on time, but not to us, say the Il'ichevtsy. They have been forced to obtain alternative supplies from the far-off Altai region in Siberia.
'MMK im. Il'ich' has also had problems with iron ore supplies and has had to pay 'through the nose' for their raw material.
At a recent conference of the government commission for mining/metallurgy complex, the deputy minister of 'prompolitiki' Pavel Shinkarenko, in premier Victor Yanukovich's presence, warned that the problems being experienced by the industry right now are worse than have been for ten years or more.
"Metallurgprom" boss Vasiliy Kharakhulakh stated that during September production of cast iron fell sharply - by 134,000 tons, because of the undersupply of coke to 'MMK im. Il'icha' and "Zaporozhstal', and because of an emergency situation at the 'Yenakievsko Metzavod' . Deliveries of home-produced coking coal to the 'koksokhimzavods' have decreased by 180,000 tons.
The association of coke-chemical enterprises "UkrKoks " claims there could be a possible shortage 104,000 tons of coke for metallurgical enterprises during November. Moreover, the Ukrainian KabMin has decided to order 200,000 tons of coal, including coking coal, for supply of power stations, to ensure the country is prepared for winter. There are problems with the import of coal from Russia because of ever-increasing demand from the Chinese. There is also a shortage of suitable railroad wagons for transportation.
The problem is so acute that it seems that in 2007 it will be necessary to import more than 10 millions tons of coking coal - an unrealistically high quantity.
Experts assert that the present metallurgical crisis is the result of the privatisation campaign of "UkrRudProm", started by Yanukovich government as early as 2004.
Then, Ukrainian oligarchs, with the support to President Leonid Kuchma, forced through a law in parliament: "On the characteristics of the privatization of enterprises in the state joint-stock company UkrRudProm ". All the most tasty morsels of the metallurgical pie were divided up between the Financial Industrial Groups's owned by Igor Kolomoyskiy, Vadim Novinskiy, Victor Pinchuk and Rinat Akhmetov.
First of all, they determined ownership of the ore-dressing and iron-ore combines, to ensure that raw material supplies to their own industrial enterprises of were guaranteed.
Their competitors were left with the crumbs. The 'MMK im. Il'icha' was deprived of deliveries of domestic raw material, and interrelations between metallurgists and miners became almost war-like.
Simple workers have also been drawn into oligarchic disputes. [something I have posted blogs about recently] Workers have not only become instruments in the hands of their masters, but also the victims of their business warfare and intrigues. At the beginning of October approximately 150 representatives of the Joint stock company "DonetskKoks" picketed the Donetsk city executive committee. It seems that their enterprise is simply no longer required by its owner - Akhmetov's SCM corporation, which includes more profitable 'koksokhim' works, including the 'Avdeyevskiy KoksoKhim', the largest in Europe.
No one has considered the problems of other metallurgical producers and the universal shortage of coke. Protesters holding meetings are carring banners with the inscriptions "Koksokhim workers are not animals!", "Work for the people - coke for the country", and "Oligarchs - hands off the plant!"
Recently the minister of internal affairs Yuriy Lutsenko declared that in 8 months of the present year the state lost 8 billion hryven as a result of the irregularities in the metallurgical industry, that criminal investigations are proceeding into these matters, and that all material has been transferred to the state prosecutor who will make decision on how to proceed. The Minister emphasized that there was no political sub-text to his investigations, and enterprises were being checked independently of the political preferences of their management.
[Note: Lutsenko was suspended a few days ago from his ministerial position by the VR.
Socialist deputies abstained, and did not vote with their PoR coalition allies. The motion to suspend Lutsenko was carried only with the help of 'renegade' BYuT and NU deputies; some of these BYuT deputies are wealthy and influential associates of Yuliya T suggesting to observers that there may have been collusion between PoR and BYuT on this VR motion.]
If one considers that the fraction of metallurgy in the export balance of our country exceeds 40%, then the losses to Ukraine may even be greater than the more significant numbers quoted by Lutsenko.
Friday, November 03, 2006
VAT fiddles..
Bits from an article it today's 'Delo' business daily entitled:
"Economy returning to the shadows"
The number of business enterprises in Ukraine who paid their taxes honestly in 2006 has dropped dramatically compared to the previous year.
The Institute of economic research and political consultations calculates that Ukrainian companies paid almost 80% of what was due last year, but this year the figure is around 55%.
According to the State Tax Administration, Ukrainian financial-industrial groupings [FIGs] are taking advantage of the links between their numermous enterprises to set up fictitious deals and avoid payment of taxes.
The FIG's who 'minimize' their financial responsibilities to the greatest extent, according to deputy head of the STA Mykola Romaniv, are 'Privat', 'Industrial Union of Donbas' [IUD], and 'Interpipe', [owned by Kolomoyskiy, Taruta/Hayduk, and Pinchuk resp.]
Akhmetov's System Capital Management, [SCM] was not mentioned on the list of transgressors. [What a surprise..]
Romaniv said that in order to minimize their VAT payments, the FIGs use 'pseudo-exporting' operations to obtain refunds [Well, well, well..]
"The mentality of Ukrainians is such that does not accept taxes which can be recompensed from the budget. If there is even a minimal possibility of return of tax from the budget, then there will certainly be abuses. To administer this nightmare in the present form is quite impossible, " considers Dmitriy Svyatash, member of the VR committee on questions of finances and bank activity. [It's all the fault of Ukrainians' mentality then.]
Meanwhile other companies are complaining that they they are not receiving the VAT repayments to which they are entitled.
Newly appointed NSDC secretary Vitaliy Hayduk [see above] has recently been asked by the President to sort out the problem of VAT fiddles - obviously the right man for this vital task.
See also VAT-man Azarov
Two views of Dnipropetrovsk - a fine city that's been in the news lately. [Click on the photos for a better image]
"Economy returning to the shadows"
The number of business enterprises in Ukraine who paid their taxes honestly in 2006 has dropped dramatically compared to the previous year.
The Institute of economic research and political consultations calculates that Ukrainian companies paid almost 80% of what was due last year, but this year the figure is around 55%.
According to the State Tax Administration, Ukrainian financial-industrial groupings [FIGs] are taking advantage of the links between their numermous enterprises to set up fictitious deals and avoid payment of taxes.
The FIG's who 'minimize' their financial responsibilities to the greatest extent, according to deputy head of the STA Mykola Romaniv, are 'Privat', 'Industrial Union of Donbas' [IUD], and 'Interpipe', [owned by Kolomoyskiy, Taruta/Hayduk, and Pinchuk resp.]
Akhmetov's System Capital Management, [SCM] was not mentioned on the list of transgressors. [What a surprise..]
Romaniv said that in order to minimize their VAT payments, the FIGs use 'pseudo-exporting' operations to obtain refunds [Well, well, well..]
"The mentality of Ukrainians is such that does not accept taxes which can be recompensed from the budget. If there is even a minimal possibility of return of tax from the budget, then there will certainly be abuses. To administer this nightmare in the present form is quite impossible, " considers Dmitriy Svyatash, member of the VR committee on questions of finances and bank activity. [It's all the fault of Ukrainians' mentality then.]
Meanwhile other companies are complaining that they they are not receiving the VAT repayments to which they are entitled.
Newly appointed NSDC secretary Vitaliy Hayduk [see above] has recently been asked by the President to sort out the problem of VAT fiddles - obviously the right man for this vital task.
See also VAT-man Azarov
Two views of Dnipropetrovsk - a fine city that's been in the news lately. [Click on the photos for a better image]
Wednesday, November 01, 2006
Gangster state
For all of the talk of economic progress and cleaning up of politics in Ukraine, the grim reality is that business, politics and organized crime are intertwined, and disputes are still too often settled by criminal means. Politicians, businessmen, as well as police are still being periodically assassinated.
'Juicy' bits of real estate such as the 'Ozerka' market in Dnipropetrovsk are being fought over by private armies on behalf of their untouchable oligarchic paymasters whilst state law-enforcement agencies stand idly by.
I've loosely translated some parts from an article from today's 'Kommersant', by no means a sensationalist newspaper, below:
In parliament an atmosphere of fear has set in
Deputies frighten each other with the situation in the country and within their families.
Without naming concrete names, Yulia Tymoshenko's bloc has accused the authorities of terrorist attacks against its deputies.
A large part of the yesterday's sitting in Parliament was concerned with the drafting of the State budget for 2007. Nevertheless the day began with addresses from several parliamentarians. BYuT deputy Oleksandr Turchinov stated that in Ukraine, "criminal terror has begun [to be used] against the opposition fraction". He spoke at length about several incidents in which representatives of BYuT have been attacked in different regions, in particular about the murder on 27th October of one of one of its leaders in the the Donetsk oblast - a founder of the Debal'tsevsk machine building plant - Gennadiy Bystryakov. Turchynov accused local authorities of indifference in solving the murder.
"You had excellent possibilities to demonstrate force and decency of the authorities, when you were the head of the security service," retorted VR speaker Oleksandr Moroz to these charges.
Immediately after Turchinov left the podium, up stepped the leader of Socialist fraction Vasyl Tsushko, who stated that, "For the first time I come to the platform not to talk on about politics."
Mr. Tsushko reminded deputies, about his recent appearance on an ICTV TV program - "Freedom of Word" when he publicly quoted President Viktor Yushchenko who had once asserted that the company "Unified energy systems of Ukraine" (YeESU), which was headed Yulia Tymoshenko, were responsible for state losses of 8 billion hryven.
"After this my family and I were subjected to illegal pressure and persecution from unknown persons," said Mr. Tsushko. He alleged that certain anonymous persons had told him they know the telephone numbers of its family, had provoked a traffic accident, and also intimidated his son and wife.
After the VR session Oleksandr Turchynov responded, accusing Tsuskho of talking rubbish, raking over the matter of YeESU for political gain. He suggested Tsushko go to the SBU to provide protection and to check out his accusations. BYuT representatives had stated previously that they were suing Tsushko for slander folowing his remarks on TV, but a spokesman from the judical department, Andriy Portnov, told 'Kommersant' that he knew nothing of this.
On 26th October, a BYuT Lviv city council deputy, Roman Fedyshyn survived an assassination attempt during which Fedyshyn's car was blown up - a young schoolgirl, Mariya Kutsynda, was killed.
In June two ByuT representatives were killed. On 11th of June Zaporizhzha city council deputy Viktor Savkin was shot dead in Yalta. That same week, Hryhoriy Potelchak, a city councillor from Nizhyn was also killed.
BYuT has made many unsubstantiated claims in recent times about murders, bribes of VR deputies, and corruption at the highest levels of government. Nevertheless, people as still being killed with impunity, that's a fact. And while the country has leaders who climbed to the top of the political/business ladder by methods akin to those employed at the 'Ozerka' market, this state of affairs will continue.
More on "Ozerka" - UNIAN reports that groups of raiders, many from Russia, have been seen mobilizing in the suburbs of Dnipropetrovsk in order to launch another attack on the market.
Unian' s sources speculate that the conflict around "Ozerka" is being used by specific political forces of Russian origin to destabilize the region and then the country as a whole, and that the attempts to take "Ozerka" is a rehearsal for similar actions in other parts of Ukraine. The article mentions that Maxim Kurochkin, one of the two chief protagonists in the tussle, benefits from the patronage of the highest echelons of Russian Ministry of Internal Affairs, as well as that of the Russian president's administration.
'Juicy' bits of real estate such as the 'Ozerka' market in Dnipropetrovsk are being fought over by private armies on behalf of their untouchable oligarchic paymasters whilst state law-enforcement agencies stand idly by.
I've loosely translated some parts from an article from today's 'Kommersant', by no means a sensationalist newspaper, below:
In parliament an atmosphere of fear has set in
Deputies frighten each other with the situation in the country and within their families.
Without naming concrete names, Yulia Tymoshenko's bloc has accused the authorities of terrorist attacks against its deputies.
A large part of the yesterday's sitting in Parliament was concerned with the drafting of the State budget for 2007. Nevertheless the day began with addresses from several parliamentarians. BYuT deputy Oleksandr Turchinov stated that in Ukraine, "criminal terror has begun [to be used] against the opposition fraction". He spoke at length about several incidents in which representatives of BYuT have been attacked in different regions, in particular about the murder on 27th October of one of one of its leaders in the the Donetsk oblast - a founder of the Debal'tsevsk machine building plant - Gennadiy Bystryakov. Turchynov accused local authorities of indifference in solving the murder.
"You had excellent possibilities to demonstrate force and decency of the authorities, when you were the head of the security service," retorted VR speaker Oleksandr Moroz to these charges.
Immediately after Turchinov left the podium, up stepped the leader of Socialist fraction Vasyl Tsushko, who stated that, "For the first time I come to the platform not to talk on about politics."
Mr. Tsushko reminded deputies, about his recent appearance on an ICTV TV program - "Freedom of Word" when he publicly quoted President Viktor Yushchenko who had once asserted that the company "Unified energy systems of Ukraine" (YeESU), which was headed Yulia Tymoshenko, were responsible for state losses of 8 billion hryven.
"After this my family and I were subjected to illegal pressure and persecution from unknown persons," said Mr. Tsushko. He alleged that certain anonymous persons had told him they know the telephone numbers of its family, had provoked a traffic accident, and also intimidated his son and wife.
After the VR session Oleksandr Turchynov responded, accusing Tsuskho of talking rubbish, raking over the matter of YeESU for political gain. He suggested Tsushko go to the SBU to provide protection and to check out his accusations. BYuT representatives had stated previously that they were suing Tsushko for slander folowing his remarks on TV, but a spokesman from the judical department, Andriy Portnov, told 'Kommersant' that he knew nothing of this.
On 26th October, a BYuT Lviv city council deputy, Roman Fedyshyn survived an assassination attempt during which Fedyshyn's car was blown up - a young schoolgirl, Mariya Kutsynda, was killed.
In June two ByuT representatives were killed. On 11th of June Zaporizhzha city council deputy Viktor Savkin was shot dead in Yalta. That same week, Hryhoriy Potelchak, a city councillor from Nizhyn was also killed.
BYuT has made many unsubstantiated claims in recent times about murders, bribes of VR deputies, and corruption at the highest levels of government. Nevertheless, people as still being killed with impunity, that's a fact. And while the country has leaders who climbed to the top of the political/business ladder by methods akin to those employed at the 'Ozerka' market, this state of affairs will continue.
More on "Ozerka" - UNIAN reports that groups of raiders, many from Russia, have been seen mobilizing in the suburbs of Dnipropetrovsk in order to launch another attack on the market.
Unian' s sources speculate that the conflict around "Ozerka" is being used by specific political forces of Russian origin to destabilize the region and then the country as a whole, and that the attempts to take "Ozerka" is a rehearsal for similar actions in other parts of Ukraine. The article mentions that Maxim Kurochkin, one of the two chief protagonists in the tussle, benefits from the patronage of the highest echelons of Russian Ministry of Internal Affairs, as well as that of the Russian president's administration.
Tuesday, October 31, 2006
Tfu!..Tfu!
Minister of Internal Affairs Yuriy Lutsenko, an Orange Revolution 'field commander', giving vice PM Andriy Kluyev, one of the chief 2004 Presidential election steal organizers, a friendly peck.
Dear, oh dear!
Photo from Unian
Monday, October 30, 2006
Custard pie fight at the market
At 5 am this morning over 90 raiders were detained by 'Berkut' special units as they tried to take over the 'Ozyorka' market in Dnipropetrovsk. Melodramatic newsreel footage can be seen here.
The minister of internal affairs Yuri Lutsenko called the assault on the market a turf war between Ihor Kolomoyskiy, one of Ukraine's richest men and the 'colorful' Russian 'businessman' Maxim [a.k.a. Mad Max] Kurochkin.
"Kurochkin attacks - the 'Privat' group protects itself," said Lutsenko, describing events during which police also detained Oleg Netrebko, who had been a VR election candidate on the Vitrenko bloc list (#21), but now is an assistant to a deputy from the PoR.
Kurochkin, a vice-president of the Russian Club in Kyiv, has apparently been in hiding in Moscow after Ukraine's Prosecutor-General launched charges against him. The Russian Club had been created in summer 2004 as a lobbying center for Russian interests and Russian "political technologists" working for Viktor Yanukovych's campaign. The Russian Club was officially opened by the Russian Embassador Chernomyrdin, Yanukovych, Medvechuk, and other 'usual suspects'.
Kurochkin is accused of having links to heavyweight organized crime and even survived a mafia-style hit in Kyiv in November 2004. His wife ran the beauty salon in Kyiv' s finest hotel, the 'Premier Palace', which had also been the Russian Club's headquarters.
The huge Ozerka market had been 'bought' by Kurochkin in a rushed 'privatization' in October 2004, but after legal proceedings were instigated in Febrary 2005, the privatization was reversed.
The minister of internal affairs Yuri Lutsenko called the assault on the market a turf war between Ihor Kolomoyskiy, one of Ukraine's richest men and the 'colorful' Russian 'businessman' Maxim [a.k.a. Mad Max] Kurochkin.
"Kurochkin attacks - the 'Privat' group protects itself," said Lutsenko, describing events during which police also detained Oleg Netrebko, who had been a VR election candidate on the Vitrenko bloc list (#21), but now is an assistant to a deputy from the PoR.
Kurochkin, a vice-president of the Russian Club in Kyiv, has apparently been in hiding in Moscow after Ukraine's Prosecutor-General launched charges against him. The Russian Club had been created in summer 2004 as a lobbying center for Russian interests and Russian "political technologists" working for Viktor Yanukovych's campaign. The Russian Club was officially opened by the Russian Embassador Chernomyrdin, Yanukovych, Medvechuk, and other 'usual suspects'.
Kurochkin is accused of having links to heavyweight organized crime and even survived a mafia-style hit in Kyiv in November 2004. His wife ran the beauty salon in Kyiv' s finest hotel, the 'Premier Palace', which had also been the Russian Club's headquarters.
The huge Ozerka market had been 'bought' by Kurochkin in a rushed 'privatization' in October 2004, but after legal proceedings were instigated in Febrary 2005, the privatization was reversed.
Friday, October 27, 2006
RosUkrEnergwho?
Discussion between Yuliya Tymoshenko and Fuel and Energy minister Yuriy Boyko on a TV prog 'This is what I think', Channel '1+1', 26th Oct 2006
"Yuriy Anatoliyovych [Boyko], tell us please: 'RosUkrEnerho' - is it a private company?"
-"I don't have a clue."
"So you don't know?"
-"No."
"Is it private or state [company]?"
-"To me it makes absolutely no difference whose company it is."
"But you have you fully given up Ukraine to 'RosUkrEnerho'. Do you at least know.."
-"No, for me this is not of principal importance. For me two matters are pricipally important: The contract should be for 55 Billion [cu.m. p.a.] and the price should be $130."
Tymoshenko then produces what she claimed was RUE's company registration document in which the founders submit their start-up funds, as well as minutes of RUE's co-ordination committee, signed by representatives of two companies - 'Tsentrohaz' and the Russian "Erosgaz".
One of the 'Tsentrohaz' signatories was Yuriy Boyko, who was head of the Ukrainian State Gas Company 'Naftohaz Ukrainy' at that time.
"And when you say you don't know what 'RosUkrEnergo' is, I'll tell you - it's a private company, which was created by state official Yuriy Boyko. And in all civilized normal countries, when a person holding an official state position creates a private company for state circulation [of funds], this is known as corruption. I want every person today who receives a new bill for utilities to know, that they are giving their money not to 'Naftohaz Ukrainy', not to 'RosUkrEnerho', and not even to 'Gazprom', but their money is going into the pockets of the highest state officials."
"And when people pay this money I want those people to recall the names of Boyko, Kuchma, Yanukovych and the founders of this [scheme]. And Yekhanurov as the person who perfected the scheme."
RosUkrEnergo is the intermediary monopolist supplier of natural gas to the Ukrainian market.
Campaign against housing, utility and communal service charge increases
Rumblings of discontent amongst Ukrainians, sparked off by massive increases in housing, utility and communal service charges seem to be getting louder. Whether they 'blow themselves out' or continue to grow, and what the political repercussions are if they do, is anyone's guess.
Here's some bits from a story today on the Lugansk-based 'parallel media' site:
Luganskites called on to pay for public services at old tariff rates only and participate in a "communal self-defence" campaign.
Today at a meeting of the Lugansk press-club, representatives of public organizations called upon Luganskites to participate in a communal self-defence campaign.
The initiators proposed that people pay for public services at the old tariff rates until the authorities finds a way of overcoming the crisis in the housing and communal services complex.
Co-ordinators of the action include the 'Civil Forum of Ukraine', 'Lugansk coalition of Citizens for the transparency of the actions of the authorities', 'the Committee for Constitutional rights and freedoms of Citizens', and 'Citizen's control'.
According to the head of the Committee for the protection of constitutional rights and freedoms of citizens Nikolai Kozyrev, today the majority of population find themselves on the fringes of destitution - to provide nourishment for one person per month a minimum of 750 Hvn. [about $125] is necessary. "To place the solution of all problems in the housing and communal services complex on the shoulders of people by increasing tariffs is simply inhuman. The population should not pay for the inactivity of authorities and the thriftlessness of kommunal'shchikov."
The Chairman of "Citizen's control", Victor Vakumenko said that on 9th December, the initiators of the action intend to conduct a hearing on questions of municipal reform with the participation of people's deputies. Action will be extended to an oblast, and an all-Ukraine level.
The initiators of the action declare, that while there is no agreement with the 'kommunal'shchiki', the populus has the legal right to pay 'kommun-uslugi' at the old valuations. They see this as the only way they can force the authorities to earnestly examine the entire municipal service system.
Here's some bits from a story today on the Lugansk-based 'parallel media' site:
Luganskites called on to pay for public services at old tariff rates only and participate in a "communal self-defence" campaign.
Today at a meeting of the Lugansk press-club, representatives of public organizations called upon Luganskites to participate in a communal self-defence campaign.
The initiators proposed that people pay for public services at the old tariff rates until the authorities finds a way of overcoming the crisis in the housing and communal services complex.
Co-ordinators of the action include the 'Civil Forum of Ukraine', 'Lugansk coalition of Citizens for the transparency of the actions of the authorities', 'the Committee for Constitutional rights and freedoms of Citizens', and 'Citizen's control'.
According to the head of the Committee for the protection of constitutional rights and freedoms of citizens Nikolai Kozyrev, today the majority of population find themselves on the fringes of destitution - to provide nourishment for one person per month a minimum of 750 Hvn. [about $125] is necessary. "To place the solution of all problems in the housing and communal services complex on the shoulders of people by increasing tariffs is simply inhuman. The population should not pay for the inactivity of authorities and the thriftlessness of kommunal'shchikov."
The Chairman of "Citizen's control", Victor Vakumenko said that on 9th December, the initiators of the action intend to conduct a hearing on questions of municipal reform with the participation of people's deputies. Action will be extended to an oblast, and an all-Ukraine level.
The initiators of the action declare, that while there is no agreement with the 'kommunal'shchiki', the populus has the legal right to pay 'kommun-uslugi' at the old valuations. They see this as the only way they can force the authorities to earnestly examine the entire municipal service system.
Wednesday, October 25, 2006
What people really want..
An interesting [and IMO important] O.P. was posted today on the Lugansk-based irtafax website :
"62% of population consider that Ukraine in not heading in the right direction
According to an opinion poll carried out by "R&B Group" from 16th to 23rd October, 62% of the population of Ukraine consider that since the Match 2006 parliamentary election, the country is not going in the right direction. Only 14% held the opposite opinion, 24% couldn't really say.
69% consider that the political situation in Ukraine is unstable, 10% - stable, 21% - found it difficult to answer.
Those questioned named the current problems facing the country as: high prices and low quality of public services - 25%, low wages and unpaid wages - 19%, increases in prices, inflation - 19%, low pensions - 18%, poor material standing of people - 18%, and high level of unemployment - 17%.
Also mentioned were the low quality of medical services - 7%, high cost and low quality of education - 5%, shortage and high cost of living accomodation - 4%, problems with the health - 3%, high levels of corruption in state authorities - 3%, poor quality of roads - 2%, decline of agriculture - 2%, problems, connected with fuel - 2%.
In the opinion of those questioned, the government should concentrate on the following : increasing social payments - 41%, decreasing the level of unemployment - 29%, resolving gas problems within the framework of interrelations with Russia - 27%, and restoring lost ties with Russia - 24%.
The percentage of those questioned who consider the government must concentrate on the preparation of the economy of the country for the autumn-winter period - 23%, introduce tighter controls of the economy from the side of the state - 14%, resolve cadre questions - i.e. select a professional government team - 11%, and act to protect individual rights and freedoms - 8%.
The respondents considered the government must also act on the following: the entrance of Ukraine in NATO and European Union - 6% , the elevation of the status of the Russian language to that of a second state language - 3%, and lend support and increase agricultural productivity - 1%.
Sociologists questioned 2,200 respondents in all regions of the Ukraine. The samping error should not exceed 1,1%
The concerns of "Donbass" newspaper readers are revealed by today's lead story entitled: 'Even bread in now gilded'. The piece is about steep increases in the price of bread and includes a chart with bread prices in the main Donetsk oblast towns.
Another story on the irtafax describes problems with communal heating systems.
The irtafax website also carries a story informing its readers that the large Alchevsk metallurgical combine is halting production because of difficulties with the supply of raw materials. Trade union leaders have written to PM Yanukovych warning that other plants may soon have to shut down too, if prices for raw materials are not reduced.
The background to this dispute about which I posted last week can be found here.
"Simple commercial trading between the sellers and buyers of iron ore has become a battle. Opposition between the metallurgists and the miners last week reached, probably its highest intensity in the entire history of Ukraine. Among other things, geopolitical rivalry has appeared in the conflict, between domestic and Russian business."
"62% of population consider that Ukraine in not heading in the right direction
According to an opinion poll carried out by "R&B Group" from 16th to 23rd October, 62% of the population of Ukraine consider that since the Match 2006 parliamentary election, the country is not going in the right direction. Only 14% held the opposite opinion, 24% couldn't really say.
69% consider that the political situation in Ukraine is unstable, 10% - stable, 21% - found it difficult to answer.
Those questioned named the current problems facing the country as: high prices and low quality of public services - 25%, low wages and unpaid wages - 19%, increases in prices, inflation - 19%, low pensions - 18%, poor material standing of people - 18%, and high level of unemployment - 17%.
Also mentioned were the low quality of medical services - 7%, high cost and low quality of education - 5%, shortage and high cost of living accomodation - 4%, problems with the health - 3%, high levels of corruption in state authorities - 3%, poor quality of roads - 2%, decline of agriculture - 2%, problems, connected with fuel - 2%.
In the opinion of those questioned, the government should concentrate on the following : increasing social payments - 41%, decreasing the level of unemployment - 29%, resolving gas problems within the framework of interrelations with Russia - 27%, and restoring lost ties with Russia - 24%.
The percentage of those questioned who consider the government must concentrate on the preparation of the economy of the country for the autumn-winter period - 23%, introduce tighter controls of the economy from the side of the state - 14%, resolve cadre questions - i.e. select a professional government team - 11%, and act to protect individual rights and freedoms - 8%.
The respondents considered the government must also act on the following: the entrance of Ukraine in NATO and European Union - 6% , the elevation of the status of the Russian language to that of a second state language - 3%, and lend support and increase agricultural productivity - 1%.
Sociologists questioned 2,200 respondents in all regions of the Ukraine. The samping error should not exceed 1,1%
The concerns of "Donbass" newspaper readers are revealed by today's lead story entitled: 'Even bread in now gilded'. The piece is about steep increases in the price of bread and includes a chart with bread prices in the main Donetsk oblast towns.
Another story on the irtafax describes problems with communal heating systems.
The irtafax website also carries a story informing its readers that the large Alchevsk metallurgical combine is halting production because of difficulties with the supply of raw materials. Trade union leaders have written to PM Yanukovych warning that other plants may soon have to shut down too, if prices for raw materials are not reduced.
The background to this dispute about which I posted last week can be found here.
"Simple commercial trading between the sellers and buyers of iron ore has become a battle. Opposition between the metallurgists and the miners last week reached, probably its highest intensity in the entire history of Ukraine. Among other things, geopolitical rivalry has appeared in the conflict, between domestic and Russian business."
Disgruntled miners
Ukr Pravda reports:
In eastern Ukraine some people are beginning to get annoyed because the PoR-led government is not delivering on their March 2006 VR election slogan: "An improvement in your lives, now today."
There are massive utility and communal charge increases on the way too..It is up to the opposition parties to pick up the banner and speak up for these people, but NSNU in particular are more interested in their own internal political squabbling.
"Invalid miners in shock as Yanukovich removes their benefits
More than 500 invalid miners protested in the central square of Pavlograd [a town just to the east of Dnipropetrovsk] against cabinet of ministers' plans to reduce their benefit payments in the 2007 state budget.
According to the miners, the planned 2007 budget will seriously reduce these benefits, and completely abolish such benefits to miners when
they reach the age of 60.
These benefits have been paid out since 1992; and they range from 1 to 2 thousand hryven depending on disability and length of employment.
In total, in the western Donbass today there are 11,000 disabled miners who obtain these benefits.
According to the Deputy Chairman of the Union of invalid miners of Ukraine, Nikolai Tkachenko, "People are infuriated by the behavior of the government. The've chopped what we obtained so far. We will have to subsist on beans, there'll be no money for medicines, there'll be no money for food supplements, nor for recuperation", he said.
Tkachenko noted that practically all these men suffer from silicosis, bordering on tuberculosis. Therefore it is not only drugs that are necessary, but also dietary supplements.
The protesters have directed a resolution to the supreme rada, to the cabinet of ministers, and also to the President of the Ukraine Victor Yushchenko.
According to the miners, they have most hope for the support of the president - they are convinced he will not sign a budget with reduced social payments."
In eastern Ukraine some people are beginning to get annoyed because the PoR-led government is not delivering on their March 2006 VR election slogan: "An improvement in your lives, now today."
There are massive utility and communal charge increases on the way too..It is up to the opposition parties to pick up the banner and speak up for these people, but NSNU in particular are more interested in their own internal political squabbling.
Monday, October 23, 2006
Donbas supports neutral status
I've translated a bit from an article in today's 'Donbass' newspaper entitled:
'Donbass supports [Ukraine's] neutrality'
According to the 'Declaration of State Sovereignty' dated 16th July, 1990, Ukraine proclaimed its intention to be a neutral state that will not participate in any military bloc.
Subsequent state authorities have tried to alter this, and by various means change Ukraine's non aligned bloc status. But the results of a sociological study carried out between 1st and 3rd October by the analytical service of Nikolai Gavrilov show a large part of adult population in the Donetsk region considers that Ukraine should remain a neutral state. Of 708 questioned, 71% women and 67% of men support this neutral status, with 21% of women and 24% of men against this
Of the respondents who want Ukraine to remain a neutral state, 28% justified their position saying such a status was advantageous to our country, 23% said that the neutrality of Ukraine was the essence of its independence, 22% concluded that this status gives Ukraine fewer problems, while 9% thought this the optimum position for interrelations with other countries.
Note: Article 9, entitled 'External and Internal Security', of the 'Declaration of State Independence', states :
The Ukrainian SSR has the right to its own armed forces.
The Ukrainian SSR has its own internal armies and bodies of state security subordinated to the Verkhovna Rada of the Ukrainian SSR.
The Ukrainian SSR determines procedures for military service by citizens of the Republic.
Citizens of the Ukrainian SSR perform their military service, as a rule, on the territory of the Republic, and cannot be used for military purpose beyond its borders without the consent of the Verkhovna Rada of the Ukrainian SSR.
The Ukrainian SSR solemnly declares its intention of becoming a permanently neutral state that does not participate in military blocs and adheres to three nuclear free principles: to accept, to produce and to purchase no nuclear weapons.
Passed by the Verkhovna Rada of the Ukrainian Soviet Socialist Republic
Kyiv, July 16, 1990
I presume a national referendum would be required to alter this Declaration, before entry into NATO could be considered.
'Donbass supports [Ukraine's] neutrality'
According to the 'Declaration of State Sovereignty' dated 16th July, 1990, Ukraine proclaimed its intention to be a neutral state that will not participate in any military bloc.
Subsequent state authorities have tried to alter this, and by various means change Ukraine's non aligned bloc status. But the results of a sociological study carried out between 1st and 3rd October by the analytical service of Nikolai Gavrilov show a large part of adult population in the Donetsk region considers that Ukraine should remain a neutral state. Of 708 questioned, 71% women and 67% of men support this neutral status, with 21% of women and 24% of men against this
Of the respondents who want Ukraine to remain a neutral state, 28% justified their position saying such a status was advantageous to our country, 23% said that the neutrality of Ukraine was the essence of its independence, 22% concluded that this status gives Ukraine fewer problems, while 9% thought this the optimum position for interrelations with other countries.
Note: Article 9, entitled 'External and Internal Security', of the 'Declaration of State Independence', states :
The Ukrainian SSR has the right to its own armed forces.
The Ukrainian SSR has its own internal armies and bodies of state security subordinated to the Verkhovna Rada of the Ukrainian SSR.
The Ukrainian SSR determines procedures for military service by citizens of the Republic.
Citizens of the Ukrainian SSR perform their military service, as a rule, on the territory of the Republic, and cannot be used for military purpose beyond its borders without the consent of the Verkhovna Rada of the Ukrainian SSR.
The Ukrainian SSR solemnly declares its intention of becoming a permanently neutral state that does not participate in military blocs and adheres to three nuclear free principles: to accept, to produce and to purchase no nuclear weapons.
Passed by the Verkhovna Rada of the Ukrainian Soviet Socialist Republic
Kyiv, July 16, 1990
I presume a national referendum would be required to alter this Declaration, before entry into NATO could be considered.
Sunday, October 22, 2006
Straws in the wind?
Last Thursday's newspaper "Donbass", the largest-selling daily in eastern Ukraine, carried the following story about a demonstatration in Konstaninovka, a town about 60 km north of Donetsk, against large increases in communal and utility prices:
"We will continue to hold meetings until the draconic tariffs are changed!
Yesterday near the building of the Konstantinovka town council approximately two hundred angry townspeople with placards in their hands emotionally protested against the sharp increases in the cost of living.
The reason for the picketting of the town council was the decision of local deputies to introduce new, two-fold increases in tariffs on housing services and utilities in the city. Last Friday, at a special session, elected representatives almost unanimously abolished the previous tariffs affirmed by city council in the past year.
It is possible to understand the position of authorities - in the event of their non-acceptance of new tariffs, the city will not receive 1,5 mln. hryven from the state budget in the form of subsidies for fuel. One way or another, from 1st November the monthly payment of the heating of one square meter of dwelling in Konstantinovka rises to 2,64 hryven, and for the delivery of one cube of water, to 2,22 hn.
Meetings will be held repeatedly, until the excessive valuations are completely cancelled."
But what is interesting is that day's edition of "Donbass" also carried a large article by Yuliya Tymoshenko entitled "About populism, tariffs and the [VR] speaker/terrorist", which had been posted in various other periodicals including her own website on 5th October. In it she lambasts PoR and the Socialists for voting down a motion in the VR to maintain a moratorium on price hikes on these tariffs, after having supported it weeks before.
Last Thursday the NSNU executive council head Mykola Katerynchuk declared that the leader of a united VR opposition should be Yuliya T.
At Saturday's NSNU congress fiasco, once Yushchenko had finished his address, Roman Bezmertnyi's immediately pronounced that the congress was ending but would be reconvened in three week's time. The abrupt termination of the congress was met by the chanting of Katerynchuk's name by some of the delegates who wanted it to continue.
All of the delegates had received a 'welcome pack' containing congress documentation etc. - the pack also included a copy of a book entitled, 'The Donetsk Mafia'.
'Oboz' periodical journalists made enquiries whose idea this was; no-one was keen to say, but apparently it may have been Katerynchuk's. None of the party's leading lights were to be seen holding or examining the book, probably because of the numbers of TV cameras present.
NSNU in the anti-crisis coalition still possible?
"We will continue to hold meetings until the draconic tariffs are changed!
Yesterday near the building of the Konstantinovka town council approximately two hundred angry townspeople with placards in their hands emotionally protested against the sharp increases in the cost of living.
The reason for the picketting of the town council was the decision of local deputies to introduce new, two-fold increases in tariffs on housing services and utilities in the city. Last Friday, at a special session, elected representatives almost unanimously abolished the previous tariffs affirmed by city council in the past year.
It is possible to understand the position of authorities - in the event of their non-acceptance of new tariffs, the city will not receive 1,5 mln. hryven from the state budget in the form of subsidies for fuel. One way or another, from 1st November the monthly payment of the heating of one square meter of dwelling in Konstantinovka rises to 2,64 hryven, and for the delivery of one cube of water, to 2,22 hn.
Meetings will be held repeatedly, until the excessive valuations are completely cancelled."
But what is interesting is that day's edition of "Donbass" also carried a large article by Yuliya Tymoshenko entitled "About populism, tariffs and the [VR] speaker/terrorist", which had been posted in various other periodicals including her own website on 5th October. In it she lambasts PoR and the Socialists for voting down a motion in the VR to maintain a moratorium on price hikes on these tariffs, after having supported it weeks before.
Last Thursday the NSNU executive council head Mykola Katerynchuk declared that the leader of a united VR opposition should be Yuliya T.
At Saturday's NSNU congress fiasco, once Yushchenko had finished his address, Roman Bezmertnyi's immediately pronounced that the congress was ending but would be reconvened in three week's time. The abrupt termination of the congress was met by the chanting of Katerynchuk's name by some of the delegates who wanted it to continue.
All of the delegates had received a 'welcome pack' containing congress documentation etc. - the pack also included a copy of a book entitled, 'The Donetsk Mafia'.
'Oboz' periodical journalists made enquiries whose idea this was; no-one was keen to say, but apparently it may have been Katerynchuk's. None of the party's leading lights were to be seen holding or examining the book, probably because of the numbers of TV cameras present.
NSNU in the anti-crisis coalition still possible?
Saturday, October 21, 2006
Complete shambles..
Today in Kyiv, at the 3rd Congress of NSNU, President Yushchenko confirmed that he remains the honorary chairman of party. He declared that the party is in a state of 'serious internal crisis', and that the party leadership is responsible for this state of affairs.
He severely criticized the fact that reconstruction of party is being conducted by 'administrative methods', where party cells and members of the party are selected by leaders at the top; and was dismayed that, "By recruiting members of the party from the representatives of authority - the party has become an appendage of the power structures".
"I do not want the party to become the closed joint-stock company, where the main shareholders decide, what it is necessary for party, but in reality decide their own, or near to their own interests", said Yushchenko.
"The party and its leading organs, and especially presidium must be held responsible for this," he added.
He is still sticking with the idea of a grand coalition. "If you attentively listened, my position is political consolidation with different forces, including with PoR, SPU, and parliamentary and extra-parliamentary forces," said the President. The negotiations [on coalition building], in his opinion have not yet ended.
The head of the party council, Roman Bezsmertnyi, together with the party leadership have now [sort of] relinquished their authority, and it was agreed that the Congress reconvene in 3 weeks time. Bezsmertyi remains 'acting chairman' of the party council. Other party leaders, in particular Petro Poroshenko considered that the President's criticisms meant that the entire party leadership should go too.
In short - a complete shambles. Are this bunch fit to govern the country?
cf: Troubled NSNU
He severely criticized the fact that reconstruction of party is being conducted by 'administrative methods', where party cells and members of the party are selected by leaders at the top; and was dismayed that, "By recruiting members of the party from the representatives of authority - the party has become an appendage of the power structures".
"I do not want the party to become the closed joint-stock company, where the main shareholders decide, what it is necessary for party, but in reality decide their own, or near to their own interests", said Yushchenko.
"The party and its leading organs, and especially presidium must be held responsible for this," he added.
He is still sticking with the idea of a grand coalition. "If you attentively listened, my position is political consolidation with different forces, including with PoR, SPU, and parliamentary and extra-parliamentary forces," said the President. The negotiations [on coalition building], in his opinion have not yet ended.
The head of the party council, Roman Bezsmertnyi, together with the party leadership have now [sort of] relinquished their authority, and it was agreed that the Congress reconvene in 3 weeks time. Bezsmertyi remains 'acting chairman' of the party council. Other party leaders, in particular Petro Poroshenko considered that the President's criticisms meant that the entire party leadership should go too.
In short - a complete shambles. Are this bunch fit to govern the country?
cf: Troubled NSNU
Striking hard bargains..
According to an article in today's 'Kommersant-Ukraina', Ukraine has has to agree to a number of political and economic conditions in exchange for Russia guaranteeing to fix the price of natural gas in 2007 at $130 per 1000 cu.m,
They are: Ukraine has to conduct a referendum in the near future on Ukraine's entry [or otherwise] into NATO,
Ukraine has to agree to extend the treaty which allows the Russian Black Sea fleet to use Ukrainian ports and territory after 2017 [when current agreements expire],
and Ukraine has to agree to use the monopolist intermediary gas trading company, RosUkrEnergo for the next five years for its gas purchases.
However, this would only postpone hikes in the price of gas for one year. Yanukovych has already stated that, "The price of the gas for the Ukraine will be $200-210 per thousand of cubic meters in the following (2008 -7) year."
Another article in the same newspaper describes conflicts between some of Ukraine's biggest industrial corporations and their suppliers of raw materials.
I've translated a bit:
On Wednesday about 300 workers from the Alchevsk Metallurgical Kombinat (AMK) which is controlled by "Industrial Union of Donbass" (IUD), blocked the work of the Makeyevka Metallurgical Plant (MMZ), which is part of Vadim Novinskiy's "Smart- group".
The management and workers of AMK were reacting to an increase in the prices of iron-ore raw material supplied by the ['Smart-group'-controlled] Ingulets GOK [ore enrichment plant] which is actually situated much further away, near Kryviy Rih. Experts consider that similar conflicts could be repeated with other participants in the market.
The annual turnover of IUD is about $3,5 billion - its joint owners are Sergey Taruta and Vitaliy Hayduk, who President Yushchenko recently appointed secretary of the National Security and Defense Council.
MMZ published a press release, reporting that on 18th October approximately 300 AMK workers from Lugansk travelled to the Donetsk region to block the work of the MMZ enterprise. Two of five railway lines were partially blocked by some of the men, disrupting railroad freight traffic to MMZ. Another group of workers from AMK, headed by the chairman of trade-union committee Boris Shevel'gin, arrived at MMZ's administration offices, which they picketed. Their actions were precipitated by Inguletsk GOK's sudden steep price increases for iron-ore raw material from November 2006.
The tangled web of ownership of enterprises that form 'Smart-Group' is partially revealed in this informative website.
More on similar struggles here and here.
They are: Ukraine has to conduct a referendum in the near future on Ukraine's entry [or otherwise] into NATO,
Ukraine has to agree to extend the treaty which allows the Russian Black Sea fleet to use Ukrainian ports and territory after 2017 [when current agreements expire],
and Ukraine has to agree to use the monopolist intermediary gas trading company, RosUkrEnergo for the next five years for its gas purchases.
However, this would only postpone hikes in the price of gas for one year. Yanukovych has already stated that, "The price of the gas for the Ukraine will be $200-210 per thousand of cubic meters in the following (2008 -7) year."
Another article in the same newspaper describes conflicts between some of Ukraine's biggest industrial corporations and their suppliers of raw materials.
I've translated a bit:
On Wednesday about 300 workers from the Alchevsk Metallurgical Kombinat (AMK) which is controlled by "Industrial Union of Donbass" (IUD), blocked the work of the Makeyevka Metallurgical Plant (MMZ), which is part of Vadim Novinskiy's "Smart- group".
The management and workers of AMK were reacting to an increase in the prices of iron-ore raw material supplied by the ['Smart-group'-controlled] Ingulets GOK [ore enrichment plant] which is actually situated much further away, near Kryviy Rih. Experts consider that similar conflicts could be repeated with other participants in the market.
The annual turnover of IUD is about $3,5 billion - its joint owners are Sergey Taruta and Vitaliy Hayduk, who President Yushchenko recently appointed secretary of the National Security and Defense Council.
MMZ published a press release, reporting that on 18th October approximately 300 AMK workers from Lugansk travelled to the Donetsk region to block the work of the MMZ enterprise. Two of five railway lines were partially blocked by some of the men, disrupting railroad freight traffic to MMZ. Another group of workers from AMK, headed by the chairman of trade-union committee Boris Shevel'gin, arrived at MMZ's administration offices, which they picketed. Their actions were precipitated by Inguletsk GOK's sudden steep price increases for iron-ore raw material from November 2006.
The tangled web of ownership of enterprises that form 'Smart-Group' is partially revealed in this informative website.
More on similar struggles here and here.
Subscribe to:
Posts (Atom)