Yanukovych already decided who is guilty

From an interview with president Yanukovych in Davos:

Washington Post - But the U.S. government said that, with few exceptions, the only senior officials being targeted [with corruption charges..LEvko] have connections with the previous government. Do you plan to put Yulia Tymoshenko on trial?

Yanukovych - It is a controversial issue. With regards to the opinion of the U.S. government, it is an issue to be discussed. We believe that position is not really based on facts. I am sure that if everybody just tried to use the facts and the information that has already been provided by the prosecutor general's office - the information shows that we are in the midst of a major fight against corruption. Those people that you have referred to have really violated Ukrainian laws. As an example, the member of my party, Mr. [Anatoliy] Hrytsenko, he made those illegal actions back in 2007. So this is also a past deed. Only in 2010, quite a large number of people have been brought to criminal responsibility for acts of corruption. Many of them are either members of my own party or are members of other parties that are members of the governing coalition. This very fact proves that it is not a one-way road in terms of criminal persecution.

No trials of any major opposition figures, or others who are currently being detained or investigated, have yet taken place.

Yanukovych's performances in Davos last week did not impress the WSJ either..

First smart deal by President Yanukovych

"Ukraine's president clinched energy pacts with Azerbaijan on Friday and attacked Russia for plans to bypass his country in supplying gas to Europe, reviving market fears of regular spats between Moscow and Kiev...

more from Reuters...here

'Vanka' will not be pleased..

Ukrainian football covered in same sh*t as rest of country's big business

A couple of days ago, Reuters reported:

"FIFA has warned Euro 2012 co-hosts Ukraine it risks suspension if the country's soccer federation (FFU) replaces its current management, according to a letter from world soccer's governing body made public on Tuesday.

In December, several FFU members tried unsuccessfully to sack FFU president Hrigory Surkis who has been accused by some fans of favouring Dynamo Kiev, a team run by his brother Ihor Surkis.

Surkis' opponents have said they would continue to seek his dismissal.

FIFA said it had evidence of "interference by state authorities" in the case and warned the FFU against sacking Surkis before his term expires in 2012.

"In this regard, we have received clear evidence that some of these members made the decision... after strong pressure was exerted on their delegates by government representatives and other persons and bodies external to the FFU," FIFA said in a letter published on the FFU web site www.ffu.org.ua.

FIFA said it would not recognise any new management.

"FIFA requests that the FFU maintain its current executive committee until the end of its legitimate mandate in 2012. FIFA will not recognise any other leadership which emerges from a process marred by interference," it said.

According to FIFA rules, any third party interference in the activities of a national soccer federation could lead to the suspension of its membership.

"Among other things, it (suspension) would mean that no Ukrainian team of any sort (including clubs) could have any sporting contact with a FIFA member," FIFA warned."

In other words, the Ukrainian national team could find itself banned from the Euro 2012 football tournament that the country it is itself hosting...

The dreadful, diabolical mess in which the Ukrainian football league finds itself right now is well described in this blog and links therein.

Former president Leonid Kravchuk has issued an emotional public appeal to Yanukovych to intervene and halt the hugely disruptive actions of "the troublemakers who are thoughtlessly playing with fire while sitting on a powder keg.."

The richest men in the country, those who control its government, big business, and mass media, in an attempt to control the huge expected Euro 2012 cash flows and benefits, are behaving like horrible children in a sand-pit - throwing dog sh*t at one another...

p.s. Tetyana Nikolayenko and Serhiy Leshchenko, in two fine recent investigative articles in 'Ukrainska Pravda' here and here reveal how Boris Kolesnikov, the deputy prime minister in charge of the Euro 2012 football tournament, is allegedly 'cashing in' on the tournament by means of 'layering' schemes involving off-shore construction companies in Belize and elsewhere, to which he may be connected.

These companies are building new stadiums and infrastructure for Euro 2012 - without any tendering process having taken place. To compound Kolesnikov's complicity, the authors allege that once the scams were about to be exposed, official sale and transfer documents were 'post-dated' or 'lost', and official registers 'doctored', in an attempt to retroactively cover tracks. However, even this was clumsily bungled..

OP reveals dissatisfaction with el Presidente..

Nearly a year after presidential elections, 'Deutsche Welle' carried out an extensive opinion poll asking respondents to assess Yanukovych's, and PM Azarov's performance.

According to those questioned, the most significant problems facing the country were Ukraine's economic problems - 79 percent, corruption -55 percent, and wilfulness of officials and law enforcement officials - 34 percent.

Only 10 percent of those polled rated Yanukovych's success rate in solving any of these problems as "generally good." Azarov fared even worse...

President Yanukovych's scored best on improving tense relations with other countries - 37 percent "generally good", and the fight against terrorism - 38 percent "generally good".

However, around 40-50% of those asked recorded a "difficult to answer" response to most questions...

Thursday update: Big- selling 'Segodnya' run this story today entitled: "Ukrainians dissatisfied with [do not like] Yanukovich's and Azarov's attempts to to tackle corruption"...

Mykola Herman fatal car crash airbrushed away [almost]

For mysterious reasons, the web page from the link I provided in my posting yesterday, to the story about Hanna Herman's son, Mykola's, involvement in a car crash, has been changed. The fresh web page mentions no names, but still claims TV channels have been prevented from reporting details of this story..

Funny thing is though, the link URL is still: http://ua.vvnews.info/analytics/politics/65303-telekanalam-zaboronili-govoriti-pro-mazhora-mikolu-germana-kotriy-ubiv-troh-cholovk.html

i.e. "...television channels have been banned from speaking about 'big-shot' mikola german who killed three persons.html..

Update. Hanna Herman has called this story 'black PR'. "In the first place my son does not have a 'Lexus', in the second place he was in Israel at the time - this can be confirmed by his passport..."she says.

Trouble is there have been so many attempted 'cover-ups' in the past, e.g. after a vehicle in president's convoy killed a taxi-driver, after denials of assault of ByuT deputies...etc. etc...no-one knows what to believe..Stamps in passports can be back-dated...

But who really was driving the Lexus, if not Herman's son? Who was its registered owner? Is Herman becoming a liability - the story rather than the messenger?

"In wartime truth is so precious that she should be attended by a bodyguard of lies." Winston Churchill

Arbuzov not yet ready to answer questions - and Herman's son in trouble..again

After a few week's delay, the newly-appointed head of the National Bank of Ukraine, Serhiy Arbuzov [see photo] had agreed to hold a press briefing next Monday.

Indignant journalists were told that they could only ask one question each - to be emailed in advance, for vetting.

The journalists' union have called this "unacceptable, and a dangerous precedent.. a shameful totalitarian practice, which has nothing in common with freedom of speech..to which other organs of the state could descend."

Now, next Monday's press briefing has now been postponed indefinitely. Strange...he should have counted all of the money by now..one for you..one for me..one for you..one for me..

This is not the first time block-head Arbuzov has 'chickened out'.

One of these days he will have to face the 'grown-ups', piggy bank under his arm, without anyone holding his hand..

But for now, as my dad used to say, in Polish - "Ni z glovy movy, ni z dupy perdu"...not a word from the mouth..not a fart from the arse..or something like that..

p.s. There are reports that deputy head of the president's administration, Hanna Herman's son Mykola was involved in a car smash in which three persons were killed. [See Thursday update below..] Television channels have allegedly been banned from reporting the incident. I have recently blogged about young Mykola, who was only slightly injured in this latest "accident". He had recently been, for a time, deputy minister of Emergency Situations, promoted in a giant leap from "being his mum's driver".

Mykola's younger brother, Roman, was killed in a car smash last June. Reportedly. he was drunk and travelling at 220 km per hour when the incident occurred.

Such events take place with such predictable regularity that hardly anyone raises an eyebrow any more. Last October the 25 year-old son of a Dnipropetrovsk prosecutor killed three women aged betwen 43 and 62 on a pedestrian crossing, in a 'hit and run' "accident" whilst driving his Toyota Land Cruiser Prado. According to police reports, the victims' bodies lay 100 metres from one another. There was a concerted attempt to 'hush up' the incident but local anger was so great that eventually the driver of the vehicle was arrested.

Now this from an article in yesterday's "Gazeta po Kievski", entitled: "Son of prosecutor who killed three women pays off families"

"To put it delicately...they, (the relatives of those killed in the accident) have solved many of their financial problems, and now the degree of their rightful anger and indignation has been reduced. Therefore, they are no longer strongly interested in the speedly direction of a criminal case into court. I'll say nothing else - you understand me, yes?, said Mr. Pavlov, a prosecutor examining the case. The lawyer representing victims' families insisted, "We should not distress them yet again."

Looks like justice has been "well served", as usual...

There's a deadly, cold chill hanging over these people...

Today, Thursday, a Porsche Cayenne belonging to the son of VR deputy Oleksandr Feldman was involved in a head-on crash in which 5 people were killed. The Porsche was allegedly travelling at 200 km.p.h.

And an Update on the death of the 3 women pedestrians mentioned above, and how pay-offs to victims eliminate the need for messy police investigations and senseless court cases....Much better to pay a few dollars, sweep it under the carpet...won't bring back the dead anyway...right? Forgive and forget..best for everyone..no-one saw anything anyway...there was no film in the CCTV....

Thursday Update - For curious reasons, the web page from the link above, to the story about Hanna Herman's son, Mykola's, involvement in a car crash, has been changed. The fresh web page mentions no names, but still claims TV channels have been prevented from reporting details of this story..

the funny thing is though, the link is still entitled http://ua.vvnews.info/analytics/politics/65303-telekanalam-zaboronili-govoriti-pro-mazhora-mikolu-germana-kotriy-ubiv-troh-cholovk.html

"...television channel have been banned from speaking about 'big-shot' mikola german who killed three persons.html..

Cozy at the top for Arbuzov

The recently-appointed 34 year old head of the National Bank of Ukraine, Serhiy Arbuzov, has refused to provide any details of the company which paid him an officially declared, eye-watering 150 million hryvnya [$18 million] in dividends and royalties in 2009.

Quite extraordinary for a civil servant in such a top job..

Arbuzov is 'close' to president Yanukovych's son Oleksandr and banker to the Yanukovych clan. The clan in recent years, has become a significant financial player, independent of other Party of Regions' oligarchs and financial-industrial groups.

In 2008 he was head of UkrBiznesBank..which looked after the money of many of the obscure companies and foundations behind president Yanukovych's infamous 'Mezhyhirya' palace.

Last month Prosecutor-General, Viktor Pshonka, also an old family friend of the Yanukovych's, claimed he would investigate the reason why, most unusually, Arbuzov does not have a personal identification code number, normally allocated to all Ukrainians at the age of 14, enabling him to carry out uncontrolled personal transactions at banks. This privilege was granted by a Donetsk court, apparently, 'for religious reasons'.

Pshonka has not yet provided an explanation... Yanukovych Sr. is his son's - VR deputy Artyem's, godfather. Last December Pshonka's brother Mykola was appointed deputy head of the High Court for Civil and Criminal Cases .

Ukraine is ever-more closely resembling one of the 'dodgy' Central Asian republics..

"Reporters without Borders" report harassment of Ukrainian blogger

Check out this "Reporters without Borders" story, about police raiding the Kyiv home of young journalist and blogger Olena Bilozerska.

Support Olena by visiting her interesting blog - every hit helps...

PoR 'get knickers in a twist' over Danylyshyn

The granting of political asylum by the Czech Republic to Yulia Tymoshenko's former Economic Minister Bohdan Danylyshyn yesterday has been a blow to the image of the country's current administration, and will hinder progress along the road to European integration.

It has also caused quite a stir amongst Party of Regions.

The Press Service of the Party of Regions has posted a statement on their website in mangled English and loaded with old-style Soviet Khruschevite rhetoric, entitled:

"Authorities lead large-scale fight against corruption. Opposition is against.

Here's a small portion [don't laugh..]

"Fighting corruption is without regard to party affiliation of the corruptionist, thief or bribetaker. Among the citizens, who are prodecuted [?], there are many persons, who yesterday represented the government, and now call themselves the opposition. Other fugitive officials who have never engaged in political activity, try to present themselves as political refugees, which is puzzling. In this regard, spread rumors that the country is supposed to start political persecution of the opposition.

Party of Regions is firmly convinced that all attempts of former or current officials to prevent systemic fight against corruption will fail. Solidarity of ex-officials, who get used to live by the principles "one hand washes another" or "crows do not pick crow's eyes", can not prevent restoring order and restoration of legality in the country. We will make officials to take care of the taxpayers' money. Each embezzled government representative will be responsible by the fullest extent of the Law. Thieves and embezzlers will not be saved by any status, mandates, membership cards, high office or favor of some foreign countries.

Corrupt officials who are now in the ranks of the so-called opposition will not evade responsibility, covering themselves with a loud status [?] of political repression."

[My italics..LEvko]

Also, one of their most prominent deputies, Vadym Kolesnichenko, warned, while suffering a bad attack of mixed metaphors at a press briefing: "If..Mr Danylyshyn is given political asylum, it means that the corrupt chain of actions of the Tymoshenko government has spread its arms even into Europe..."

In 2013 Ukraine is supposed to chair the Organization for Security and Cooperation in Europe - its primary aim is: "to create a common democratic and legal area throughout the whole of the continent, ensuring respect for its fundamental values: human rights, democracy and the rule of law."

Seriously though, eminent political commentor Vitaliy Portnikov warns Yanukovych could find himself in the same bind as Belarus president Aleksander Lukashenko. Recently Russian Foreign Minister Sergey Lavrov declared that the position of his own country with respect to recent presidential elections in Belarus was concurrent with the position of the Council of Europe [who roundly condemned Lukashenko].

"If [by getting into the European's 'bad books.. Levko] Yanukovych is denied the possibility of a European maneouvre in the same manner as his Belarus colleague, he will be forced to accept any Russian 'generosity' solely on the Kremlin's own terms."

In other words, if the Ruskies get nasty, there will be nowhere to run...

p.s. If PoR want to be taken seriously, they should hire a decent proof reader - surely they can do better than just rely on GoogleTranslate...and have a word with Davis Manafort Inc., their US public relations consultants, who took so much of their wonga..

Herman puts her foot in it again..

So deputy head of the president's administration, Hanna Herman, says:

"..irrespective whether someone is trying to hinder Viktor Yanukovych - whether someone wants the world to look upon Ukraine as is does upon Belarus, we have a duty to work for Ukraine."

Clearly, she is upset that Ukraine is being tarred by the same brush as its northern neighbour.

No surprise, therefore, that her boss Yanukovych, who was one of the very few world leaders to warmly congratulate his Belarus counterpart, 'comb-over Alex', Lukashenko, on his 'victory' in recent presidential elections, did so surreptitiously, without informing the Ukrainian nation. It seems Yanukovych may be an admirer of Lukashenko's after all...

Most West European countries consider Lukashenko's 'victory' to be highly suspect - they condemn the post-election beatings and maltreatment of Belarus' opposition leaders.

p.s. the Italian 'Il Legno Sorto' consider Tymoshenko has been 'stitched up' by the current Ukrainian authorities, and that the Japanese are satisfied that the Kyoto protocol money is all properly accounted for...but unfortunately the links they provide all lead to Yulia T's own website...still, nice photo...

p.p.s. European Enlargement Commissioner Stefan Fule is in Ukraine "To Study Situation Involving Arrests Of Former Government Officials"

BYuT want him to ban PM Azarov and his cabinet ministers from entering EU countries, except on official visits, so that they are: "immediately disconnected from their Swiss bank accounts, or from [their joint-venture..LEvko] businesses situated in Austria and other countries. For them this would simply be the end." ....Nasty..

Ukraine tarred with same brush as Belarus..

From the influential 'Frankfurter Rundschau' - analytic article entitled 'Putinism in Kyiv'

[Here's the conclusion ..via Google-translate]

The EU must not be lulled by Yanukovich's Europe-friendly rhetoric, it must make pressure. For liberalization of visa regulations such as Brussels should make a return to the reform process to the condition. Freedom to travel against press freedom. The EU summit in May, will go where it focuses on the Eastern Partnership, could be a good time for it. It also provides the Member States an opportunity to strengthen bilateral relations with Ukraine in order to create further incentives for reform.

Later this month, EU foreign ministers will meet to discuss possible sanctions against Belarus's Lukashenko in power. It is right to show the dictator the red card. The EU should also not only lose sight of the fact that Kiev just turned into a second Minsk.

The whole article is worth reading.. If the Yanukovych-led administration continues on its current path, Ukraine and Belarus.. will ever-more frequently be tagged together as 'problem countries'..

Also this interview in the same newspaper by Ukrainian writer, Yuriy Andrukhovych. Below is an excerpt, again, Google-translated..]

Ukraine is for many in Western Europe, a terra incognita. Where you locate your country?

Politically, Ukraine is today no European country. We're back somewhere inEurasia . The prospects are poor. The leaders repeat the mantra of European integration, but in reality they do something completely different.The EU wants Ukraine to not break the bridges. But they should use the rhetoric of the ruling group to exert pressure. Actually, the EU would have with Ukraine is the approach as with Belarus.

Yanukovich is the one you conjured up in 2003 Ukrainian Putin, Ukraine will "stabilize" the Russian model?

Putin is smart, smart, athletic, sexy. Yanukovych is a parody of Putin. But he wants the ideas of the vertical power of the so-called sovereign democracy and copy. Freedom of speech exists in Russia only on the web. The judiciary is completely brought into line already.

What has changed since the takeover of the "Blue" in early 2010?

Sometimes I feel like I was in another country. Maybe I'm paranoid, but my city of Ivano-Frankivsk I feel sad and dirtier than a year ago. I am a witness of disintegration. The government is increasingly cynical and corrupt. The pressure, in conjunction with the local elections, local election commission was exerted on, was massive. I fear that Ukraine is on its way to becoming a "failed state" to be who can not fulfill its functions.

Were you surprised by the speed of restoration?

Yes, I am with a regime à la Kuchma (controversial President of Ukraine from 1994 to 2005, note) had expected. But it was worse. Yanukovych and his supporters have no connection to Ukraine. The country is only a tool for them to get even richer and more powerful. I was also surprised the massive attacks on the Ukrainian culture, language and identity. The pressure on local authorities is enormous, which means brutal.

But Yanukovych is, after all democratically elected president.

Really dangerous is it when characters who have come to power democratically undermine, democracy. You want to secure their power forever by allowing free elections in the future no more. A political analyst said it: in the past were thieves and rogues in power, now it's killer. The only hope is that the rulers of the Western perspective is important. They have bank accounts in the West and do holiday in Sardinia. Since the pressure would start.

Could a radical step, its about the connection of the eastern Ukraine to Russia, a solution to the current division of the country?

I have a few months in this direction expressed before and I was massively attacked. But such is the reality: Without the Donbass and Crimea regions had 38 percent of the vote and Yanukovych Tymoshenko percent received 55th But the territorial integrity of Ukraine is a sacred cow. My critics say I am for an independent Wales, for any Kuk-protected areas. This is absurd.Galicia itself makes no sense. It belongs to the large Ukraine. But the great Ukraine today is too large...

Who breaks a butterfly on a wheel?

Former Minister of the Internal Affairs and 'Narodna Samooborona' opposition party leader in court today. His appeal to be released on bail was denied..

Is he accused of mass murder... of terrorism? Of being a crime empire capo? International criminal mastermind..?

No...he allegedly overpaid his driver $5,000....

He may as well be charged for being a hit man for the TellyTubbies...

More photos of the crass 'overkill' here

What are the authorities afraid of - their own shadows?

c.f. this video of "Rostov Ripper" Andriy Chykatylo's appearances in court in the early '90's - the cage in which he is detained is barely guarded despite the presence of many family members of his victims...

He was sentenced to death for brutally murdering 53 women and children.

Who breaks a butterfly on a wheel?

Ever-quickening steps backward

Dmytro Salamatin, one of the most violent of the PoR deputies involved in the premeditated, vicious assault on a handful of BYuT deputies who were staging an after-hours parliamentary sit-in on the night of 16th December last year, has been appointed general director of the State arms company "UkrBoronProm" by Presidential ukaz.

Earlier in last year he had broke the nose of another opposition deputy..he's the half-crazed one leading the charge in this video ..Heaven help us all...

Perhaps only a president with a deeply violent, criminal past would not be embarrassed to make such an appointment...but just a little warning for Yanukovych and his administration - Belarus president Lukashenko and many of his cronies are to be placed on an EU visa ban list..

And I liked this from Vitaliy Portnikov, writing about ever-increasing repression of oppositionists in Russia, Belarus and Ukraine.

"But fear amongst the ruling authorites in a state where information is sterilized is often generated for irrational reasons. Those at the top frequently distrust their our own environment which assures them of their opponents' weakness. They does not believe it when television shows protests against them to be insignificant and to have little support, because they themselves control the TV. They do not believe the official voting figures, because they themselves gives instructions as what these figures are to be. So even a weak enemy may appear to them as a real giant.

And so there is generated a desire to punish and to intimidate - quite natural for of a person who has everything, but is afraid even of his own shadows. This is how the post-Soviet space has been transformed into a country called Arrestantia..."

Firtash, RUE & the Stockholm Conspiracy

Happy New Year dear readers!

Read this excellent piece of investigative journalism entitled:

"A Stockholm Conspiracy - The Underbelly of Ukrainian Gas Dealings"

from the current English language version of 'Der Spiegel'.

p.s. Will Firtash try to muzzle the magazine in German courts in the way he has tried to silence 'Kyiv Post' in the London courts? Is he man enough?

Herman's Freudian slip

Yesterday, Hanna Herman, commenting on criticism from from the European People’s Party and others about politically motivated persecution of members of Ukraine's political opposition, said:

"However, Ukraine should get used to the fact that people are appointed to a high office not to promote their drivers [reference to now-detained former Interior Minister Yury Lutsenko who had allegedly promoted his driver to an officer’s rank]. Power is given to serve the people.."

Ironic that shortly after her own appointment to the position of deputy head of Yanukovych's presidential administration last Spring, Herman's son, Mykola Korovitsyn, [now Herman] was appointed Deputy Minister of Emergency Situations.

His experience prior to this? As an aide to parliamentary deputy Taras Chornovil, and..being his mum's driver...[More here] ..... what a nice boy..

Would not someone with a lifetime's experience in the emergency services or, perhaps from a military background be more suited for this loft deputy minister's job ?

[The Minister of Emergency Situations at the time, Nestor Shufrych said that young Mykola ..was good at languages...]

Selective application of law..normal for Ukraine..

Arrests of some organisers have recently been made after large protests and demonstrations by small and medium-sized businessmen in Kyiv's Independence Square earlier this month.

One, or more of the organisers have been charged with criminal damage to the square's granite paving - 200,000 hryven's worth of damage was allegedly caused by protester's hammering tent pegs into gaps between paving stones.

But, as this excellent well illustrated U.P.blog reveals, in 2007, when Party of Regions, who were then in opposition, staged mass protests on the same spot, official Kyiv city authority's records show in total, 3,000,000 hryvnyas of extra costs were incurred by the city, including repair of damage, as a direct result of the demonstrations.

Photos from the official PoR regions website clearly show large tent stakes hammered into the paving...

Will any arrests of PoR's 2007 demonstration organizers take place now Mrs Herman?

Slow reader Lutsenko..

According to a statement by the head of the Prosecutor-General's press service today, former minister of Internal Affairs, Yuriy Lutsenko, is being detained because: "until today he has avoided fulfilling our demands of the necessity to familiarise himself with the evidence [of the case against him]. He was warned him that if he continues to draw out this familiarisation, his conditions of bail would be changed. Therefore he was detained yesterday."

To me it all rather sounds like something from an Aleksandr Solzhenitsyn novel.

Who is to decide whether he is familiar with the details of the case against him or not - and to what degree of familiarity? How, apart from Lutsenko himself, can anyone be sure?

Lutsenko said in court today that he has been reading 150 pages a day [of a reported 25 volumes of evidence], but has had to write many summaries and notes by hand for his own use because permission to make photocopies of this evidence was denied.

But he did not complain that he is being denied time to prepare his defence though, so where's the problem? Why is he in jail?

He may as well be charged "for being a nuisance..a general nuisance in the house.."

Lutsenko has now been formally arrested and is to be detained for 2 months. His lawyers will be lodging an appeal for his release.

All this over an alleged unlawful $5,000 payment made tp the former minister's driver. The time and labour of dozens of security men, prosecutors, investigators, judges, and drivers, etc. etc. involved in this case must have cost many times more than this sum already. But that's not the point is it?

What nonsense..

p.s. A story that has 'slipped under the radar.. just as a comparison:

Last September it was reported in "Kommersant" that according to the the Ukrainian State Committee for Regulatory Policy and Entrepreneurship, the Kremenchuk company "Livela" had long ago obtained the right to import petroleum products into Ukraine without payment of VAT, excise and import duty. In August alone, it was estimated by experts that the company imported 18.3 thousand tons of light oil valued about $ 14.6 million. During that month about 300 thousand tons of petroleum products in total were imported into Ukraine. The loss to the country due to "Lavela's" concession, in that one month, was more than $ 4 million. This has been going on for years....and guess what..one of the owners of "Livela" is a PoR deputy, Volodymyr Zubyk.

A few days ago the authoritative "Dzerkalo Tyzhnya" ran a piece entitled: "Livela" continues to import petroleum products, despite 3 Bn hryven loss to the state"...this was confirmed by head of the Poltava department of the State Anti-monopoly Committee....

The press office of first vice-premier Andrei Klyuev refused to comment on the "Livela" affair, but a source in the Ministry of Fuel and Energy told "Kommersant" that those "at the highest level" are engaged in its activities.

But hey, its all legal, so who cares....How many more "Livela's" are there? e.g. official Mercedes Benz distributors in Ukraine, who are the only one's capable of servicing their most expensive models, estimate that up to half of these models are imported illegally.

Why should the IMF provide any financial assistance to a country with such a poor record of tax and import duty collection?

God help Ukraine...

Hard times ahead...but not for all...

On 17th December the VR passed a law introducing fines for tenants who fail to pay their housing/communal services bills on time. From 1st January a 0.1% fine per day of arrears will be applied to unpaid bills. There are rumours the law was passed at the request of the IMF as a condition for its loans to Ukraine. But one of the major problems faced by tenants is late payment of salaries which, in some cases they fail to receive for many months. E.g. there have been very few trams and buses running in Ukraine's second city Kharkiv for several days now, wages have not been paid since the summer, and such cases are legion. A large portion of the country's housing stock is in a poor state of repair. Utility provision is often erratic, and water quality poor. Tenants requests for improvements are often ignored.

Drastic increases to gas and electricity tariffs are imminent in the New Year.

Pensionable age is to be incrementally increased from its current low level, but bearing in mind Ukraine's very short life-expectancy rates, it will mean many of it's citizens will never live to seetheir retirement.

The current reform programme will be most painful for the country's citizens - a quarter of more of whom live on the fringes of poverty. But for the population to accept this tough fiscal medicine, there has to be some kind of national concensus, as has been seen e.g. in the Republic of Ireland and elsewhere.

At the same time elected and non elected goverment officials have never had it better - there can expect budget increases all round. E.g. spending on sanatoria and leisure facilities for parliamentary deputies is being increased by about 50% - about 1000 times more is spent per parliamentary deputy on these facilities that for the healthcare for individual members of the public, even though many, perhaps most deputies judging by their clothes, watches, automobiles etc. are very wealthy indeed. The average health bill for each parliamentary deputy paid for by the state is over 5000 times greater than for 'joe public' Next year, over 77% more is to be spent on the State Prosecutor's office. Many other government institutions e.g. the Presidential Administration, are also receiving boosts to their budget.

The president is buying helicopters, building helipads for millions of dollars, building palaces for himself for tens and maybe hundreds of millions of dollars, yet the national debt is still increasing and default can by no means be discounted.

Foreign newspapers are disturbed how a friend of the president's son, Serhiy Arbuzov, came to be appointed head the National Bank of Ukraine recently with no discussion or questioning in parliament. His declared income for 2009 alone was over 150 million hryvnya [about $ 19 million]. None one knows where this came from. Yanukovych's son is to buy half the shares of the Ukrainian Development Bank, for 110 million hryvnya. How did such young men amass such wealth? Are their tax affairs available for scrutiny? Hardly. According to the influential Polish 'Rzeczpospolita' newspaper, permission for young Yanukovych to buy the bank is to be confirmed his pal the new head of the NBU.

One of the country's best-known politicians, Former Minister of Internal Affairs, Yuriy Lutsenko was taken into custody today, quite bizarrely in connection with the poisoning in 2004 of Viktor Yushchenko. Former president Yushchenko's party, 'Nasha Ukraina' have immediately issued a statement declaring the motives for the detention to be "entirely political."

"By throwing a public person behind bars without providing any understandable reason, the authorities are demonstrating only one thing - that they are clearing opposition forces and politicians from the political scene have embarked on a course of police [state?] monopoly," they add.

In recent days about 12 or 13 of PM Tymoshenko's former ministers and close aids have been arrested or are constantly being questioned and harrassed by prosecutors.

A possible explanation for this hounding of opposition leaders by the ruling Ukrainian authorities was provided in the Russian "Nezavisimaya Gazeta" recently. A Party of Regions representative told them off-the-record, that the president does not preclude holding parliamentary elections next year, while in public he talks of holding them in Autumn 2012. PoR really would like a 300+ constututional majority in parliament - at present they are 20 or 30 seats short and the Communists cannot be relied upon absolutely to support certain policies. The current actions are intended to further weaken the opposition, enabling a swift and decisive parliamentary election campaign to be held some time next year, before painful reforms start to bite. But there is a risk of creating martyrs - PoR will be painfully aware that Tymoshenko's brief incarceration almost 10 years ago was the start of a path that led to the PM's office, so this plan could backfire. Fractious opposition leaders will be forced into ever-closer co-operation in the interests of self-preservation. Nevertheless, it looks as if the persistent harassment will continue - the opposition just has to take it on the chin, for now.

Smelly sushi

Several days ago 'Dzerkalo Tyzhnya' questioned the head of the economic section at the Japanese embassy in Kyiv about the recent criminal charges made against former PM Tymoshenko and her alleged misspending of hundreds of millions of euros received from the sale of carbon emission rights under the Kyoto Protocol.

"Can you comment on the situation surrounding accusations against Yulia Tymoshenko of misuse of funds received under the terms of Art. 17 of the Kyoto Protocol?

" We know that a criminal case has been opened against the former prime minister of Ukraine, and the Government of Japan will watch developments closely. We also believe that cooperation in this field (implementation of green investments) is extremely important for both countries. The Japanese side has received confirmation from National Environmental Investment Agency of Ukraine that these funds are protected from misuse.... after the recent media reports, we communicated with Ukrainian government agencies, in particular the NEIA, and received confirmation that the funds intended for environmental projects, are protected in full."

It is generally considered that, ahem...by 'gentlemen's agreement', the seller of quotas acquires high technology and ecologically-friendly equipment from the purchaser of the quota, i.e. the money makes its way back to the quota buyer in exchange for goods and services. The Japanese companies that made the payments may be pissed off that confidential agreements have been breached, that they have been dragged into Ukrainian political in-fighting, and may be still be expecting orders to be placed..

If the current Azarov government do not spend this money and honour Ukraine's side of the contracts, it will they who will be held responsible, and the Japanese side will be entitled to redress. According to DzT, it could all cost Ukraine half a billion Euro, minimum, and the chances of selling greenhouse gas emission quotas in the future destroyed.

Meanwhile the Ukrainian NEIA, the agency directly responsible "for executing the demands of the UN convention on climate change and introducing mechanisms envisaged by the Kyoto protocol..and realising projects for protecting the environment..." posted a statement on their site on 23rd December.

They claim they have frequent contact with Japanese and other counterparts - things are hunky dory '[good], and these meetings "are in no way linked to any criminal cases opened against Tymoshenko or others.... the mass media are using out-of-date information....as of today there is no threat to any agreed contract.... [but] it is hardly likely this situation will be maintained if in the future the mass media continue to systematically print unconfirmed or distorted information." [i.e. blame the media for everything..]

The risible case against Tymoshenko looks ever more like crude political repression.

Yanukovych is planning to visit Japan early next year. He may have some explaining to do.

p.s. The Japanese should have used PayPal...

Bighead Arbuzov

Newly appointed head of the National Bank of Ukraine, Serhiy Arbuzov, was to hold his first press conference on Monday, 27th December, but today the NBU press service announced that the conference has been postponed indefinitely. Press agencies were informed that all questions to Arbuzov were to be sent in advance - by e-mail. I suppose the tough ones will be thrown in the bin...

As mentioned in my previous blog, Arbuzov astonishingly did not utter one word of thanks and did not address parliament detailing his plans for the future when his appointment was ratified on Thursday.

The thought that he is a civil servant responsible for looking after the financial assets of all of the country's citizens, and that he is directly accountable to these citizens, does not seem to have entered into his pea brain.

Upstart Arbuzov, when appointed deputy head of the NBU this summer, allegedly insisted that other deputy heads submitted applications in writing, detailing reasons, if they wanted to bother him about any matter.

When Arbuzov needed to meet Minister of Finance Fedir Yaroshenko, he absolutely insisted the Minister came to the Bank headquarters rather than the other way around. Having to travel the short distance to the Cabinet Minister's office would have been a humiliation, even though one of Arbuzov's first demands was his automobile be fitted with flashing lights...

Arbuzov's attitude is par for the course for members of Yanukovych's clan. The president has hardly ever exposed himself to open-microphone questioning either..