Monday, April 30, 2007

Dynamic tension..

Today president Yushchenko sacked Valeriy Pshenychniy, one of the Constitutional Court judges for 'violating his vows of office.' I posted about some of Pshenychniy's dubious dealings several days ago.

From 'Oboz': "A letter from the President on the need to abolish privileges to 'special economic zones' (SEZ) and 'territories of priority development' (TPR) in the Donetsk region, was sent to prime minister Yanukovych on Wednesday 25th March. i.e. - on the eve of the second ukaz on the dissolution of parliament and re-re-appointment of Svyatoslav Piskun to the post of 'henprokurator'.

The coincidence of these events can be be interpreted thus: Viktor Yushchenko is now attacking the "Donetski" along all fronts, including economic. The logic is that he wants to turn off oxygen to his opponents, in the financial field. It is possible that the money given to the "zones and territories" is being used finance trains carrying Donetsk "political tourists" to Kyiv."

Yush has taken Charles Atlas's 'dynamic tension course' and is fighting back..

Seriously, LEvko highly recommends Yevhen Zakharov's excellent "On the political situation in Ukraine" from the Information website of the Kharkiv Human Rights Protection Group - Anyone interested in Ukrainian affairs should read it!
[From Ukrainetoday]

"It is thus, most regrettably, difficult to see a legal solution to the political crisis. Yet without returning to the law, it is impossible to overcome the crisis. Early parliamentary elections without a change to the Constitution and to electoral law will change nothing. A way out of the political crisis is thus possible only via political agreement between the President and parliament."

Sunday, April 29, 2007

Snake pit politics

Last summertime, the unexpectedly re-appointed Prosecutor General Svyatoslav Piskun [see picture] was telling 'Oboz' that the prez's dismissal of the VR would be: "a betrayal of the fatherland."

"In this instance there are sufficient grounds to commence criminal proceedings against Viktor Yushchenko as per the article 'misuse of power and official authority," he said. [Yushchenko had come within a whisker of dismissing the VR last August.]

Piskun had also mused about locking up the President for other transgressions. Less than half a year ago he suggested to 'Oboz' that an investigation was required into how Petro Yush's gas business, which is linked to 'RosUkrEnergo', is percieved by Viktor Yush. He now has an excellent opportunity to do this, suggests 'Oboz' cheekily...

The publication adds that although Piskun is a PoR VR deputy, he has no debt of gratitute to that party...he paid in cash for his place on the party election list, before last March's VR elections..

Some in the presidential team suggest that Piskun should 'do at least something' for Yushchenko in gratitude to Yush re-appointing him.."like open a criminal case against Stanik".

'Oboz' and others claim Piskun has already kicked out former P-G Medvedko's deputies - the highly dubious and disreputable bunch of Kuzmin, Pshonka and Shokin, and replaced them with the loyal Mykola Holomsha [who had been sacked by Pshonka just a few days ago].

Last night at a big open opposition meeting in Kyiv Yushchenko declared, "I am convinced that the changes which have taken place in the Prosecutor-General's office will lead to the P-G beginning a 'clear-out' [chystka] at the top, and bring about order in its work. We will see an effectively working 'henprokuratura' which will respond adequately to all resonant criminal matters." Hmm.

Friday, April 27, 2007

The squeaker is back [again]

Some speculation in today's normally solid "Delo" business newspaper about the re-re-appointment of Svyatoslav Piskun - the van'ka vstan'ka [weighted self-righting tilting doll] of Ukrainian politics. Some bits below:


"The President will require of him 'a clear and precise reaction' to the decision of the KabMin not to fulfill the President's decree on snap parliamentary elections, as well as on the activities of a number of local councils who are not carrying out instructions to prepare for these elections. The primary task then, placed on Piskun, is to control financing of the early elections and to control the work of the Central Election Commission. Piskun must have agreed to this.


After being sacked by the president, relations between the president and the disgraced Prosecutor-General were completely destroyed, Piskun openly criticizing him and referring to the head of state in uncomplimentary terms.


Piskun has been given a guarantee, but not by the president, but by an influential representative of the Party of Regions, says a confidential source of 'Delo'. According to the source, a rift is taking place inside Party of Regions along a Yanukovych-Akhmetov fault line. The latter supports the idea of re-elections, hoping to strengthen his position in the fraction and at the same time placing a check on the premier's grasping of authority.


Whether this version corresponds to reality, will become clearer immediately after the first cadre reshuffles in the Prosecutor-General's office. For example, if Svyatoslav Piskun discharges Yanukovych's godparent - deputy general prosecutor Viktor Pshonka, and at the same time allows Renat Kuzmin, who is considered close to Rinat Akhmetov, to remain, will indicate that 'Delo's' source is correct.


LEvko says there may be some truth in this. Akhmetov is a shrewd gambler. Some say that he started his meteoric career as a 'naperstochnik' - a three-thimble and pea scam grifter who rose to be a high-stakes roller. He is not one to miss an opportunity, even if some risk is involved.
Photo of Piskun and Akhmetov from Ukr Pravda. Do those smiles seem sincere?

ps Piskun in Russian means 'sqeaker'. One article calls him "the last refuge for [Ukr] presidents". "In Ukraine, from the days of Kuchma, a panacea was confirmed against Donetsk prosecutors: if there is no other way, there is always the 'ace up the sleeve' - Piskun." Too right..

Counterbalancing the FIGs

An article entitled "Attack of the clans - today's crisis in Ukraine was provoked by the concluding phase of redistribution of assets", in the current pro-Yush 'Bez Tsenzury', concludes:

"Leonid Kuchma well knows that the system of counterbalances created by him earlier cannot work without him. It was precisely because of this that the changes to the constitution in 2004 were taken on in emergency order.

Leonid Kuchma in his time was a real guarantor, but not of the constitution. [Ukraine's president is sometimes called the guarantor of the constitution.] He guaranteed that not one oligarchical clan in Ukraine would obtain a monopoly of authority and capital. Pavlo Lazarenko was removed precisely for the fact that he attempted to create exactly such a monopoly. The former President also cannot but understand, that a time bomb was placed during his time in office. Indeed the clans (which are now euphemistically called financial-industrial groups) grasped a large portion of state assets. This is what Leonid Kuchma did - by strengthening or weakening at first one, then another figure, he held the growing appetites of oligarchs in check. This was possible under the non democratic conditions created by him. But such a scheme cannot work in the conditions of parliamentarism - the deterent factor has disappeared, but the clans remain. So what we observe today is a ferocious contest for power and the redistribution of assets."
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Today Svyatoslav Piskun was reappointed as Prosecutor-General by the president for a third time. This man is unique in Ukrainian political intrigues and has served many masters - at the moment he is a PoR VR deputy. He has pursued some of the top players on the Ukrainian political scene over the years, and is probably the slickest behind-the-scenes operator of them all.

LEvko thinks he just loves the power of being P-G, which enables fixing of deals. He should serve Yush well - and PoR are not too pleased about this. LEvko seems to recall that during the OR he frequently discretely visited Yush's house in Kyiv. Good write-up in Ukr Pravda.

In a 5-iy Kanal TV interview tonight Piskun declared that the president's ukaz to dismiss the VR is binding on all state officials. When the interviewer asked him why had he voted last week with the VR coalition not to recognize the president's ukaz, he replied: "Why did my card vote? You saw what I was occupied with. I cannot be here and there, so, it's possible, someone pressed my [voting] button." What a guy..

Thursday, April 26, 2007

Constitutional or Kangaroo Court?

Interesting piece in 'Ukr Pravda' today on shenanigans in the Constitutional court.

Here are some paraphrased bits:

Negotiations between Yu and Ya on the current crisis, on several occasions took place in the presence of the US and German ambassadors William Taylor and Reinhardt Schaefer.

The atmosphere in the constitutional law court is complicated by mutual hostility and hardly concealed hatred between the judges. The CC is not prepared to take responsibility for any decision - which either one half or the other half of the country will challenge by questioning the court's authority.

The CC is empowered to interpret the existing constitution only, and should not comment on judgements made by the president in his ukaz e.g. on the imperative mandate.

As a result, the judges will not rush with their final judgement, If it is not given next week, the following week includes 4 days holidays, then rest days...

The best solution for the CC judges would be to wait until the politicians sort out the mess between themselves, and then write up their judgement to fit the politicians' requirements, according to their mutual agreement. Or they could simply close the legal proceedings entirely.

The judges are concerned about our old friend Syuzanna Stanik who is the rapporteur in the CC presenting the challenge to the president's ukaz to dismiss the VR. Suspicions of her taking bribes continues.

It seems that Stanik was sworn in as a CC judge in an unconstitutional manner on 22nd April 2004. Kuchma was absent, contrary to constitutional requirements.

In her years of work in the CC, Stanik was always a minor player, so it was odd that she was appointed to lead such a vital matter in the court. Once the 53 VR anti-crisis coalition deputies submitted their challenge to the court on 3rd April, some 'funny business' took place, again, contrary to the court's 'reglament', or code of precedures.

Deputy CC Chairman Valeriy Pshenichniy took it upon himself on that day to appoint Stanik rapporteur over the head of court 'top banana' Dombrowskiy [a Yush man] who was still at work. It was assumed 'Dombo' would resign on the 4th April. Had his resignation been accepted by the other court members, this would all have been irrelevant. In the event, he remained head of the CC. Another document has now apparently come to light dated 5th April, signed by Psenichniy which, because Dombo was not at work that day, would be valid. [All very suspicious].

On the 5th of April Stanik turned up to the court as rapporteur, but no vote took place to confirm her appointment, contrary to the CC's reglament. Yushchenko has asked the CC to provide documentation so that he can check any possible procedural irregularities.

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Pres. has postponed the snap VR elections until June 27th. Full text of his address in English here.

Wednesday, April 25, 2007

Arrogance of the Staniks

Syuzanna Stanik's husband, Vadim Dolhanov, a newspaper editor, agreed to be interviewed by 'Unian' today. I have posted several times recently about Constitutional court judge Stanik , who is leading the court's deliberations on whether president Yushchenko had the constitutional right to dismiss the VR.

The interview is one long trashy diatribe directed at both Stanik's critics and opposition politicians.

When asked to enumerate land and apartments that they allegedly possess, he replies to his female questioner, "And can you tell us, what your underwear looks like?. [A freudian slip? Stanik in Polish means brassiere.]

That Stanik, supposedly one of the top judges in Ukraine, and her husband, are quite openly prepared to talk to the media about a 'sub-judice' case in which Stanik herself is currently deeply involved, while the Constitutional court in which she operates is considering this matter of critical national importance, shows their complete disregard to any notion of impartiality or prejudicial behaviour. She and her husband, like much of Ukraine's so-called judicial system, are a joke..

Journalists, including those from 'Ohlyadach/Obozrevatel' are doing their job.

A further 4 apartments in central Kyiv have been found registered to an Oksana Teodorivna Antoshko - the name of Stanik's 76-year old mother. Veteran BYuT deputy Hryhoriy Omelchenko claimed in a press conference recently that two other luxury apartments in central Kyiv, owned by Antoshko were sold last year for $2million and $1.8 million.

For all of Stanik's and her husband's bluster, this is not going to go away..

Tuesday, April 24, 2007

Big business to solve crisis?

According to the 'novosti.dn' site,

Akhmetov, Feldman and Kolomoyskiy will be able to solve the political crisis during the next few days

Experts from the 'Agency for situation modelling' consider that the big businessmen represented in the Verkhovna Rada's fractions and state offices are capable of solving the political crisis that was triggered by the president's dissolution of parliament.

"ISD and Hayduk in Yushchenko's team, Feldman and Kolomoyskiy in Tymoshenko's team, Akhmetov's SCM in Yanukovych's team - literally in the next few days these regional leaders can solve the drawn-out political crisis - having returned politicians to the negotiationg table," said the deputy director of the Agency, Aleksey Golobutskiy.

He considers that regional elites are not drawn into this crisis, and therefore they can provide prescriptions for its solution. "The present political crisis has a virtual nature, which explains why the regions are not involved. For this very reason, regional elites have sufficient mechanisms to contribute to the regulation of present political crisis," said Golobutskiy.

He considers the crisis itself is the problem of politicians in the centre, and is not understood by the inhabitants of regions. "Today it is already obvious that the political crisis exists [only] in the minds of Kyiv's political elite. Whereas the mainstream inhabitants of Zhytomyr, Kharkiv and Odessa do not understand what is happening in the streets and squares of the capital. Regional political elites are obligated to say their piece in the present situation, and to drag the capital's political beau-monde from their state of creative stupor," said the expert.

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Constitutional Court judge Syuzanna Stanik, who is leading the court's deliberations on whether president Yushchenko had the constitutional right to dismiss the VR, and around whom a corruption scandal is currently swirling, has, astonishingly, gave an interview to the Russian Channel 1 TV station yesterday.

Stanik said: "If a Constitutional Court judge, a deputy chairman of the Constitutional Court, can be treated in this way, [as I've been treated,] what can be done to a lower court judge, in a district centre or some region of Ukraine, for instance? How can he be treated?"

"In December 2004 the CC also made a decision -and the Supreme court accepted it. Then all the orange flags stood at the Supreme court, and what were they demanding? The demanded a quick decision. And now? The opposite. So I have a simple question. If we believed the Supreme court and CC in 2004, what has changed in the meantime?"

LEvko says allegations of $12million 'back-handers' for starters..

Sunday, April 22, 2007

Westward-leaning conciliator

Brief interview in yesterday's 'Daily Telegraph' with 'former weightlifter and one-time racing driver' Viktor Yanukovych here

Are there no limits to the man's talents?

Saturday, April 21, 2007

Yanukovych interview

Brief interview with a confident Yanukovych on EuroNews here. He seems well coached.

Friday, April 20, 2007

Stink around Stanik

I've posted several times recently on allegations of corruption directed at deputy-head of the Constitutional Court, Syuzanna Stanik [see photo].
She is at the centre of media attention right now because she is leading the Constitutional Court's assessment into whether the President's decree to dismiss the VR was constitutional or not. Their decision, if one is made, could have a cataclysmic effect on the future of Ukrainian politics.

Today's 'Unian' publication provides more details of Syuzanna Stanik's dubious past.

According to their article, in September 2001, the first Deputy Chairman of the SBU Yuriy Vandin reported to a parliamentary committee on corruption and organized crime. He had been investigating the activities of a specialized government enterprise "UkrSpetsYust", which was subordinated to the Ministry of Justice. The minister of justice at that time was Syuzanna Stanik .

"UkrSpetsYust" was created in July, 1999 to liquidate confiscated and reclaimed property in accordance to courts' rulings, and comprised an astonishing 743 subdivisions over the entire country employing a total of 3568 people.

It was alleged that "UkrSpetsYust", in two years, had massively misused its authority by selling off profitable strategic enterprises for 'peanuts', including thousands of automobiles 'for the price of their wheels'.

Stanik declared that the outfit had brought great benefit to society, and that since the beginning of that year "UkrSpetsYust" had realized properties to to value of 4 million hryven.

However, the chairman of the parliamentary committee, Yuriy Karmazin, had his own data: in the short period of existence of 'Stanik's baby', it had 'turned over' about 6000 confiscated automobiles, which had been sold at a fraction of their worth. As a result of these vehicle sales, losses to the state exceeded 4 million hryven, It turned out later that these 6000 foreign-produced vehicles were from 3 oblasts only - Vinnitsa, Khmel'nitskiy and Chernovetsk.

It became apparent that there was a organized criminal ring operating which included a number of workers of UkrSpetsYust, court valuers and purchasers.

But this was only a small part of UkrSpetsYust's activities. 49% of the shares of private limited company "Rosava" were sold by them - the estimated value was 100 million hryven at that time. The company was sold for 20 times less - for 5 million. The size of the kick-backs can only be guessed, says UNIAN.

Other assets 'processed' by UkrSpetsYust included three power stations owned by joint stock company "DonbasEnergo", and the Luhansk, Kurakhovsk and Zuyevsk thermal power stations sold by emergency order.

First Deputy Chairman Yuriy Vandin also mentioned the "Hammer and sickle" enterprise sold for 30% of its true value, a scientific research institute sold for 4 million, whereas it had been valued at 104 million, and others.

It was no wonder that the parliamentarians proposed Stanik be removed from her post of justice minister, and UkrSpetsYust disbanded. But nothing came of this, probably because of Stanik's personal relationship with the-then president Leonid Kuchma and his wife.

The entire matter was suppressed, and Stanik sent away while things quietened down - to Strasbourg, to become Ukraine's representative at the Council of Europe. Subsequently she became ambassador to Switzerland. She was supposed to be ambassador to Poland, but there was a problem - in Polish "Stanik" means brassiere.

Stanik was born in Lviv in western Ukraine, and studied law at that city's university. She is a recipient of the presidential 'Order of Princess Olha' 3rd degree, and the presidential 'Order of Merit' 3rd degree.
LEvko thinks that other C.C. members' tacit acceptance of this woman amongst their ranks says much about the rest of the C.C...

'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
On a brighter note, 'Shakhtar Donetsk' played out a rather dull 0-0 draw in the first leg of a Ukrainian Soccer league semi-final match against 'Tavriya Simferopol' last night.

The highlight of the evening was an announcement on the public address system that Ukraine had been selected by the Union of European Football Associations [UEFA], in a joint bid with Poland, to host the 2012 European Nations football championship finals.

Shakhtar's fanatical fans behind one goal spontaneously started chanting 'Uk-ra-i-na! Uk-ra-i-na! Uk-ra-i-na! ..

Compared with Stanik, the president of Shakhtar, Rinat Akhmetov doesn't seem so bad..

Thursday, April 19, 2007

Latest from PACE

Latest from PACE

All sides should accept the ruling of Ukraine’s Constitutional Court, says PACE

Strasbourg, 19.04.2007 – The urgent ruling of Ukraine’s Constitutional Court in the current crisis, if delivered, should be accepted as binding by all sides, the Council of Europe Parliamentary Assembly (PACE) said in a resolution adopted today at the end of an urgent debate attended by Ukraine’s Parliamentary Speaker Oleksandr Moroz.
However, the Assembly also warned that pressure in any form on the judges of the Court was “intolerable”, and should be investigated and criminally prosecuted.

In a resolution adopted by 107 votes to 5, the parliamentarians called on Ukraine’s leaders and parliament to resolve the current crisis in a legitimate, strictly constitutional and peaceful manner, “whether that be by calling legitimate early elections, emanating from the ruling of the Constitutional Court, or by way of a negotiated compromise”.

Early elections were a “normal practice” and could be accepted as “a key building block of the political compromise”, the parliamentarians said, but only according to a legitimate procedure that allows fair campaigning and a free choice for voters.

They regretted that the government “has not complied with the formally valid decree (until proven otherwise) and has not allocated the required funding for these elections The Assembly criticised “personal rivalries and short-sighted fights for personal gain, linked to posts and positions” and said the reputations of all the political leaders in Ukraine was “tarnished”.

It called for further constitutional reform to help resolve the current crisis and said the “imperative mandate” should be abandoned. PACE President René van der Linden said he would visit Ukraine on 21 and 22 May, at the invitation of the Speaker Moroz, for high-level meetings.

Judge Syuzanna gets physical..

According to an article in today's 'Delo' business newspaper, "the first session of Constitutional Court examining of the legality of President's Decree dismissing the Verkhovna Rada was reminiscent of judical Comedy Club, rather than the work of authoritative lawyers. [Heard that somewhere before...]

There was a paucity not only of a constructive position by the judges, but also of elementary respect for one other. Throughout the entire session journalists present in the courtroom continually laughed aloud at the mutual verbal needling of members of law court."

The deputy chairman of the C.C. Syuzanna Stanik, who is leading the court's examination into the legality of the President's decree, was involved in a scuffle outside the court when she tried to force through a blockade of opposition demonstrators. In the altercation, she gave BYuT VR deputy Mykhaylo Volynets a couple of 'judicial slaps' across the face when no-one was watching. See video here [Better than clawing which leaves parallel scratch marks that can be used as evidence - any lawyer will tell you that.]

Astonishingly, according to the SBU press-centre, the SBU [security service] and Prosecutor General are continuing their investigation into alleged corruption and 'actions that include indications of a series of crimes' by Judge Stanik.

Yuliya Tymoshenko called the the events taking place in the C.C 'a farce'.

"But today we saw that deputies and peaceful citizens where quite severely beaten up by Popkov's police. It was Mr Popkov that controlled this operation."

It had been the same Serhiy Popkov, now deputy minister of internal affairs, that had given the order in 2004 to 'smash up the orange Maidan'. "Our political force will not recognize any decision of the C.C," she added.

Wednesday, April 18, 2007

Important PACE report released

Parliamentary Assembly Council of Europe

"Functioning of democratic institutions in Ukraine Report"
17th April 2007 here

More later..

Update - The're dropping like flies - The Prosecutor General Oleksandr Medvedko is in hospital with 'heart problems'

A commenter has added: "How are his kidneys and liver, the favoured spots for application of force by the Proffessor?"

Tuesday, April 17, 2007

Yanuk and the judges

Today PM Yanukovych visited the Parliamentary Assembly of the Council of Europe in Strasbourg. He declared that any political statements [made during the current crisis] will not influence the decisions of judges; and that, "We are making it impossible for any kind of pressure to be applied on judges."

This reminded me of a conversation between the then-president Kuchma and the then-head of Donetsk Oblast Rada Viktor Yanukovych, on 30th March 2000, secretly recorded by Mykola Melnychenko. The pair were discussing a court case being held in Donetsk, in which Kuchma considered that the accused, Sergey Salov, Oleksandr Moroz's election agent at that time who they were trying to 'frame', was being given 'an easy ride' in court. [Much more about the Salov affair, which finished up in the European court of human rights , in English here ]

Moroz and Yanuk are now big buddies in the ruling coalition - how things change..

Anyway, here are parts of the conversation.

Kuchma..Your judges are the dregs. I am now obliged to come and testify! That's why you should take this fucking judge, hang him by the balls, let him hang for one night.

Yanukovych..I understand. We will look into it.

Kuchma.. Judges in general. All fuckers.

Yanukovych..Well, the're the dregs. The boss of my court there is hopeless. He's got to be changed.

Kuchma..Well, I think now you'll look into it..that he'll remember it his whole life.

It was only about 9 months later that Moroz himself sensationally brought these recordings into the public domain.

[From Andrew Wilson's 'Ukraine's Orange Revolution' Yale University Press, page 57]

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Mykhailo Brodsky, a former member of Tymoshenko's 'Batkivshchyna' party interrupted an opposition 'democratic forces' press conference today. He revealed that Tymoshenko had promised him a bottle of cognac if she was unable to bribe the Constitutional Court, and even asked him for the money to bribe judges.

Yushchenko has been on his travels today too - to Brussels. At a press conference with Euro-parliament head Hans-Gert Pottering he stated that Ukrainian political forces are working on a suitable political packet, and that he is, "Convinced that we find ourselves close today to solving the political crisis."

Should all be sorted by Christmas then..

Monday, April 16, 2007

Constitutional Court or Comedy Club?

The Constitional court, which is supposed to commence deliberations tomorrow on whether President Yushchenko's ukaz to dismiss the VR was constitutional or not, has become a farce.

This from 'Ukrainian Journal': "Judges hospitalized as pressure mounts

KIEV, April 15 – At least three judges of the Constitutional Court were hospitalized over the weekend in development that may delay the court’s ruling on sharp political crisis in Ukraine, a television reported Sunday.

The court was supposed to start hearings on April 17 on the legality of President Viktor Yushchenko’s decree that had dismissed Parliament earlier this month amid unfolding political crisis in the country.

Susanna Stanik, the deputy head of the court who was authorized to report on the case, was suddenly taken to Feofania, an elite hospital near Kiev, Inter television reported.

Stanik, as well as two other judges that have been apparently taken to the same hospital over the weekend, are thought to be loyal to Prime Minister Viktor Yanukovych."

The Security Service of Ukraine [SBU] are investigating alleged bribery of Judge Stanik involving real estate and several automobiles to the value of $12m.

The SBU also confirm that evidence of coercion applied to some of the judges has come to light. A family member of one of the judges had the wheel nuts on his automobile loosened. [?] [I have long suspected these guys have a few 'screws loose']

The Prosecutor-General's office say, with laughably indecent haste, that the accusations against Judge Stanik have been checked out and have been determined to be groundless.

Last week 50% of Ukrainians considered the Consitutional court was incapable of making an objective legal decision. This week it would probably be even more.

LEvko says the CC is a discredited institution and should be dismissed [or ordered to take part in a best-of-5 penalty shoot-out to decide].

Or 18 new CC judges should be selected by the drawing of lots from a pool of young, anonymous and untainted judges.

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Interesting graphic on how Ukraine's GDP [in black]
is linked to world hot-rolled steel prices [in red]. The Orange Revolution, and the current troubles will not alter this graph.

...........................................................
Finally , some good analysis [in Russian] from the Ukrainian business journal: 'Expert'

I've translated and paraphrased portions:

"Viktor Yanukovich's team pushed too hard to establish a monopoly of power, and this provoked consolidated resistance from all other remaining players. It will be impossible now to avoid early parliamentary elections.

Last summer PoR had only one task - to minimize the consequences of the creation of orange coalition, but when Oleksandr Moroz left the orange team this allowed Regionaly to create their own ruling coalition. Yanukovych became prime minister, and "Our Ukraine" people and representatives of presidential environment were removed from the majority of administrative structures.

The new law "on the cabinet of ministers of Ukraine" gave the government almost unlimited power. The ruling coalition established control almost over all spheres of economic policy - from the privatization, to the regulation of banking sector. But even this wasn't enough for them. Yanukovych's team wanted one last decisive offensive, which would finish off the President as an independent center of power and would allow the premier to revive the one-man management of Leonid Kuchma's time. For Regionaly this became their Stalingrad. All of their opponents combined, and convinced the President Yushchenko to deliver the strike to their flank.

It's not worthwhile searching for a lawful basis for the breaking up of parliament - it does not exist. The decision of the President appeared twelve hours before former "NasheUkrainets" Volodymyr Zaplatinskiy , at a session of the VR, was to announce the creation of a new fraction of the ruling coalition consisting of 22 deserters from BYuT and NU. By the end of that week the majority would have been up to 300 deputies. Into the ukaz on snap elections was poured the energy of all political forces and business groups which understood that the constitutional majority, under the control of the premier, would have almost absolute power. Any opponents would either be subdued or would have to run abroad.

Indeed besides control over parliament, up to the moment of Yushchenko's radical step, the coalition almost established sole influence on the judicial system, enabling them to block constitutional law court. Even Kuchma did not have the possibility to combine legislative, and executive powers, and control their functioning.

Regionaly roughly destroyed one of the fundamental principles of a functioning system of balanced forces, formulated in the 60's of the previous century by American scientist Morton Kaplan, i.e. all subjects are unavoidably united against any participant, who attempts to acquire a dominant position with respect to the remaining part of the system. Certainly, for the presidential team, Yulia Tymoshenko is rival to equal Regionaly.

The actions of Yushchenko completely correspond to this rule. During September 2005 he sacked Tymoshenko's government after finding temporary support from Yanukovych. Now the President is 'blocked up' with BYuT in order to eliminate the scenario of the usurpation of authority by "Donetskiye". But if Tymoshenko's team turns out to be victorious in the elections, then the idea of a wide coalition between 'Regionaly and "Nasheukraintsi" could be realized by this summer.

No one can force the parties of the ruling coalition to participate in the early elections, but if they did not take part, the electorate of the Communists or Regionaly would vote for Nataliya Vitrenko or Volodymyr Litvin's parties.

The leadership of the Party of Rgions well understand that the government can only hinder, but not stop parliamentary elections - existing laws on election of VR deputies are such that elections are recognized as having taking place, even if only one party and one voter participates.

If Regionaly boycott the elections, they could finish up with nothing. The premier has to solve a complex problem - obey the decision of his political opponent Viktor Yushchenko while at the same time preserving face with his voters and party members.

If Regionaly play their cards right they have good chances to obtain a majority in the new parliament.

However, before the elections it is necessary for PoR to decide what to do with the Socialist Party. Independent participation of the SPU in the early elections mean they probably will not enter parliament at all, while joining up with Regionaly would deprive them of their independence. An analogous dilemma stands before Anatoliy Kinakh and the other deserters.

Pro-presidentia parties have a much greater chance of winning the elections if they form a mega-block.

The prospects of creating this mega-block will become known this week. On Tuesday the congress of "Our Ukraine" takes place, followed by "Batkivshchina". Yulia Tymoshenko thus far has not been well disposed to the idea.

Even after the snap elections questions about power in the Ukraine will again be the object of complex and multi-evel compromises between Party of Regions and the President.

The 'double act' of Victor Yanukovich and Victor Yushchenko, which was established in 2004, will be preserved at the minimum until the following presidential elections in November 2009."

Friday, April 13, 2007

Treating people like idiots

In his op-ed piece in today's 'FT' [Ukraine's democracy must rest on the rule of law], Viktor Yanukovych declares: "Mr Yushchenko's allegations that democracy in Ukraine is in danger are simply not true. Democracy is thriving."

He "invites interested readers to request a reference about the state of democracy in Ukraine from any independent and authoritative source such as the Council of Europe, which monitors our democratic progress."

The following quotes from "The Parliamentary Assembly Council of Europe Information note of the co-rapporteurs following their fact-finding visit to Ukraine (9-12 October 2006)", may be helpful.

The note, released several weeks ago, concludes:

paragraph #22 " The political reality in today's Ukraine shows that, apart from the conduct of free and transparent elections in March 2006, the promises of the Maidan to introduce clean, honest and competent governance and promote the rule of law and transparency at all levels have not been met. The new Cabinet is top-heavy with officials who personified the corrupt fusion of business interests with the government and the manipulation of elections before the Orange Revolution period. The non-transparent way in which the coalition negotiations were conducted over half a year, the mismatch of the political 'colours' of the so-called coalition partners and the murky deals that the short-lived 'grand coalition' stemmed from means that people do not finally know who they voted for..."

paragraph #23 "Ukraine's unpredictable political system without fixed rules, moral umpires or political traditions, where agreements between political forces are signed only to be broken on the following day, coupled with the lack of strategy and transparency, disinterest in reforms and the return of discredited personnel from the Kuchma era to the state apparatus cast doubt on the irreversibility of the spirit of the Universal, augment the gap between the state and society in Ukraine and seriously undermine Ukraine's international reputation as a reliable partner..."

paragraph #24 "A huge gap exists between the rhetoric and reality, promises and performance, intentions and action, which in turn have contributed to a loss in public confidence in state institutions, and to the rise of political apathy, corruption, and fears of eventual return of undemocratic practices."

Thursday, April 12, 2007

Moroz to blame

Yush at his press conference today revealed that it was Moroz who caused his patience to snap on April 2nd. After their head-to-head earlier that day, Moroz was to have a meeting next day with VR deptuties, apparently to give them an update what was going on only.

Yush however, learned Moroz was calling an extraordinary meeting that evening and minutes later they were actively preparing a whole raft of decisions, including one to terminate the activity of the Central Election Commission.

Yush immediately phoned Moroz requesting him to stop taking such decisions. Moroz replied that he cannot go to the VR without a prepared proposals.

"Then I said, Oleksandr Oleksandrovych, you are acting according to your conscience, but I am acting as is required by the constitution. At 9 p.m. I signed the ukaz terminating the authority of the 5th convocation of the VR."

Seems to me that PoR have been suckered into this crisis by Moroz.

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Rumours are flying about that deputy head of the Constitutional Court, and former Ukrainian minister of Justice Syuzanna Stanik, has been bribed. She had previously been Ukraine's representative in the Council of Europe, and was reportedly appointed to the C.C. thanks to her close ties to former president Kuchma and his wife, but her personal position on the president's ukaz is not known.

However, it seems that according to private notary Sotnikova, on 28th March this year an agreement had been made whereby an 'Oksana Fedorivna Antonenko' 'gifted' Judge Stanik two apartments at 27/28 Nesterivskyi Provulok in central Kyiv. The value of the apartments is estimated to be about $2m.

When she was in Strasbourg at the Council of Europe, she had a reputation for enjoying 'the finer things of life'.

PoR in a rather curious statement have warned of a campaign to discredit the CC judges, and categorically reject "all untrustworthy information that will be released into the informational domain later" [?]

Five C.C. judges [probably loyal to the president] have publicly asked for protection from external threats and pressure.

LEvko says the C.C. is descending into 'Affentheater'. They will probably finish up declaring that they could not come to a firm ruling, or will call their decision a non-binding recommendation only, or make some other kind of 'fudge'. Who can blame them.

Yush acts on Luhanskteplovoz

The higly dubious privatization of the biggest manufacturer of railway locomotives in the CIS took place a couple of weeks ago. No-one batted an eyelid.

Now this:

Yushchenko orders to check privatization of Luhanskteplovoz
Journal Staff Report

President Viktor Yushchenko urged Prosecutor General Oleksandr Medvedko and Security Service of Ukraine (SBU) Acting Head Valentyn Nalyvaichenko to check whether the State Property Fund of Ukraine was obeying the laws of Ukraine in the privatization of Luhanskteplovoz, the major producer of locomotives. The company was apparently sold at below market price to a Russian investor.

The president at his press conference today complained, "Instead of the expected 2 billion hryven, the treasury obtained only 292 million hryven. The invalid, the pensioner, the teacher, the entire nation all received less money."

LEvko thinks that its too late.. the train has already left the station...[sorry]

He went on: "What's going on with Ukrtelekom? Only a [small] part is going to be privatized, not the controlling interest. It is clear that an important investor would go after a controlling interest, but for a small portion, [only] a cheat. The same goes for the Odessa port plant, the obl-gazes, and the energy wholesale domestic market. If nation does not understand that it they that are being robbed in this way, everyone loses, Ukraine loses." said V.Yushchenko.

To find out who the cheat is, check out my February posting on Ukrtelekom here.

Yush going wobbly?

Viktor Hayduk, secretary of the National Security and Defence Council says, "The president's ukaz [to dismiss the VR] could be paused [pryzupynenyi], not countermanded [vidmineniy], but paused, which would provide a possibility, sufficient for political forces, to come to the election process."

President Yushchenko has told journalists he is prepared to discuss a possible later date for the snap election.

PM Yanukovych is also suggesting that Yushchenko pauses the enforcement [diya] of his ukaz, according to which early elections are scheduled to take place on the 27th of May.

Secretary general of Council of Europe Terry Davis has heard rumours of postoned elections too - something he says he supports.

He offered to help solve the current crisis if asked by the protagonists, but noted: " Ukraine should solve this problem itself, indeed the functioning of democracy and courts - these questions should be resolved in Ukraine ".

There may be a whiff of a deal here. Look out Yulka - Yu and Ya have shafted you many times before...

It will be Yush who will be seen as having backed down..

BBC carry an item on this too.


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'Ukraina Moloda' [pro-Yush] run a story in today's issue entitled: 'Hundreds of millions for 'Regiony' - the government coalition is seriously preparing for elections: 700 million hryven' stolen from the state treasury already.'

'UM' claim to have documents revealing a scam devised by Minister of Finances Mykola Azarov to skim off funds, perhaps for funding party election expenses.

Prior to importing goods, businesses have been able to deposit money in a client account with a commercial bank for settlement of import duties and VAT, in order to expedite passage of their goods through customs at the country's borders. This function has been taken over by the state treasury. If for any reason goods do not enter the country, the money can be reimbursed to the business enterprise concerned.

'UM' has documents revealing that on 30th March about 700 million hryven [~$140million] was paid to the state treasury by state stock company Naftohaz Ukrainy. On the 2nd April, the day the president issued his decree, the deputy head of the state treasury wrote a letter to the customs service saying, ' receipts to the special state budget VAT fund are not envisaged," and ordered the 'return' of this money to Naftohaz's account. The money has gone into a 'Bermuda triangle', UM claims.

The article says that without the goodwill of Azarov finding out where this money has gone now will be impossible.

LEvko says the sums of money involved, and the backgrounds of the people put in place at the prosecutor-general's office and at law enforcement agencies since last March's VR elections means that such matters will not be properly investigated. All but a few leading players in Ukrainian politics do not have the shadow of corruption on their backs. This is the tragedy of Ukraine, and maybe explains why compromise is so difficult.

Wednesday, April 11, 2007

Statesmanlike Yanukovych

I've translated excerpts from Yanukovych's interview today in the Polish newspaper 'Rzeczpospolita':

"It would have been better from all points of view, had President Yushchenko, in accordance with the law, consulted with the Constitutional Court before making of his decision. [He could have] asked, does he have the right for other reasons other than those defined by the constitution, to dissolve parliament. However, this did not occur.

But today we should all await the verdict of the Constitutional Court.

I responsibly declare: my government, the parliamentary coalition and I personally, will accept any decision of the Constitutional Court.

We expect this [also] from all participants in the political process in Ukraine.

In any event, elections cannot take place on 27th May, as President Yushchenko is demanding. If, of course, we are talking of honest and democratic elections - it is necessary to decide on many technical questions, [and] form election commissions.

At the moment, so far, there is time for the negotiations and the agreements. And I call on President Yushchenko to reject the language of ultimatums and to return for the negotiating table."

His tone is markedly different to that heard in the VR yesterday [see previous posting.]

Meanwhile, the CC have postponed their meeting until 17th of April to consult and decide on the legitimacy or otherwise of the President's ukaz to dismiss the VR and call for a snap election.

Yushchenko accepts that the date for the proposed snap election could be moved back. and has come up with his own 15 point program for compromise.. [Yawn..]

Ex-president of Poland Alexander Kwasniewski is flying in to Kyiv tonight. Maybe he will be around, in case he is needed, to broker a deal between Yu and Ya [again.]