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Showing posts with label Ukraine. Show all posts
Showing posts with label Ukraine. Show all posts

Tuesday, May 15, 2012

Ukraine Boosts Natural Gas Production

Story first appeared in The Wall Street Journal.
Ukraine will increase its natural gas production by as much as 25% in the next three years in order to wean itself off costly Russian supplies and wriggle free of Moscow's influence, the Prime Minister said in an interview. On the eve of talks in Brussels Tuesday, he also accused European leaders of blocking Ukraine's efforts to integrate into the European Union over the jailing of an ex-prime minister.

The comments reflect the increasingly difficult balancing act for Ukraine's leadership as it attempts to steer the former Soviet Republic of some 46 million between its two powerful neighbors.

The Ukrainian President's attempts to integrate his country with the European Union have faltered in recent months amid accusations of authoritarian behavior and attempts by Moscow to cajole its neighbor to form tighter economic ties in return for cheaper natural gas supplies.

Ukraine consumes around 60 billion cubic meters of gas per year, around two-thirds of which is imported from Russia. Two new drilling rigs, one of which arrives on Ukraine's Black Sea shelf this month, will help boost production by three to five billion cubic meters by 2015. Natural Gas Expert Witnesses are expected to be on site.

He hailed recent agreements with Royal Dutch Shell RDSA and Chevron Corp. to explore two large shale natural gas fields as critical steps to increase the country's energy independence. He said shale gas could hold the key to eventually covering all of Ukraine's needs. Officials say they expect to start producing from five to 15 billion cubic meters of shale gas per year by 2020, depending on the results of exploration.

The U.S. Energy Information Administration estimates Ukraine has the third-largest shale gas reserves in Europe at 1.2 trillion cubic meters. Officials said more tenders are planned. Representatives of Exxon Mobil Corp., an unsuccessful bidder on one of the fields won by Shell and Chevron, will meet with the prime minister this week.

The exploitation of shale gas deposits could weaken the influence Russia attempts to exert on Ukraine's economy and politics. Analysts say Russia has used its control over natural gas supplies to its neighbor to try to enforce its political will. Russia has turned off supplies to Ukraine twice in recent years amid disputes over pricing and payment.

Ukraine has been trying for months to renegotiate a gas contract that will see it pay around $415 per thousand cubic meters this year, a price the Ukraine feels is unfair. But Russia has refused, demanding closer economic integration including joining a Moscow-led customs union. Many times the negotiations appeared complete, but every time some reasons were found to delay the matter on the Russian side.

The Ukranian president has so far rebuffed Russia's offers, instead taking steps to bring his country closer to the EU. But Europe has shelved a planned free-trade and political association deal over the jailing of the ex-Prime Minister, calling the prosecution politically motivated and demanding her release.

A Ukrainian court on Tuesday delayed the start of an appeal hearing on her conviction for abuse-of-office in connection with gas contracts signed with Russia when she was prime minister in 2009.

European leaders in recent weeks have intensified criticism of the president, whom they accuse of using the courts to sideline. The German Chancellor last week branded Ukraine a "dictatorship."

Several European leaders have threatened to boycott the European soccer championship, which Ukraine co-hosts with Poland next month, over the treatment of the ex-prime minister.

The current prime minister accused European leaders of using the case to slow down Ukraine's integration and called on them not to draw an "iron curtain" across Europe.


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Thursday, February 4, 2010

Update: Elections in Ukraine

Uninspiring candidates and an economy on the edge are casting a gloomy atmosphere over the polls
The Economist

 

Sunday, January 17, 2010

Will Moscow-Kyiv Ties Improve After Ukraine Elections?

Voice of America
Ukrainians go to the polls Sunday to elect a new president. Analysts say who wins will determine the course of relations between Ukraine and Russia.


Billboards for presidential candidate Viktor Yushchenko are seen as people 
wait at a bus stop in Kiev, 13 Jan 2010

Public opinion surveys indicate current President Viktor Yushchenko is trailing several other candidates as the country prepares to vote in presidential elections Sunday, January 17. The two front runners are former Yushchenko ally and prime minister, Yulia Tymoshenko, and Viktor Yanukovich, leader of the "Party of Regions" in the Ukrainian parliament.

During his five-year presidency, Mr. Yushchenko has steered a distinctly pro-Western course, seeking membership in the European Union and in the North Atlantic Treaty Organization - or NATO.

Russia has consistently criticized Mr. Yushchenko's pro-European policies and strongly opposed Ukraine's NATO membership bid.

James Sherr, with the London-based research organization, Chatham House, says there are two reasons for Moscow's position.

"Ukraine, for Russia, is not just a neighbor. Ukraine, for Russia, is part of Russia's own identity. Kiyv and Rus is the origin of the Russian, as well as the Ukrainian state - that's the way Russians see it. So any movement by NATO into Ukraine is seen, at least emotionally, as a direct encroachment on Russia itself," he said.  "And the second issue is that behind NATO they [the Russians] see the United States and U.S. power - and they remain as convinced as in the past that it is in the U.S. national interest to weaken Russia as an authentically independent countervailing pole in the international system," he said.


Many analysts say if pre-election public opinion surveys are correct and current president Yushchenko is defeated, that would mean potentially better relations with Russia.

 [Photo: Victor Yanukovich]

"With the exception of Yushchenko, most of the politicians, including all of those vying for the presidency, and certainly the two major candidates, are arguing for, in one way or another, a balanced policy that would attempt to create a constructive, productive relationship with Russia," said Robert Legvold of Columbia University. "Some tilt more in favor of focusing on Russia, like the leader of the Communist Party [Petro] Symonenko and Yanukovich, as the head of the 'Party of Regions.'  And others, like Tymoshenko and a few other candidates focus on the European option as well. But there is nobody who is saying that we ought to choose one side - East - over the other side - West - or vice-versa," he said.

In the last presidential election in 2004, Russia openly supported Viktor Yanukovich, who was declared the winner in a run-off with Viktor Yuschenko. But hundreds of thousands of Yushchenko supporters took to the streets, protesting the results, which were subsequently declared fraudulent by the Ukrainian Supreme Court and international monitors. In a second election, Mr. Yushchenko defeated Mr. Yanukovich.

Robert Legvold says this time around, the Russian leadership is far more guarded.

"They obviously are very interested in who is going to win this election, but they don't appear to feel that they have a horse in this race that they need to go to lengths to support," he said. "I think they would be perfectly content if Tymoshenko wins, they know that Yanukovich, who in the past has been their preferred candidate, would not do their bidding, that in the end he will defend Ukraine's interests as he sees it. And if that means cutting deals with the European Union or with the West, he will do it. So I think the Russians are more or less comfortable with what's going to come out of this election," he added.

Experts say sources of friction between Kiyv and Moscow will remain whoever is elected president of Ukraine, such as the long-term, unresolved question of the Russian Black Sea fleet in Sevastopol. But analysts say the strong anti-Russian views as espoused by President Yushchenko will no longer be part of the Ukrainian political landscape.

Friday, January 15, 2010

Ukraine: The Road From Democracy

Business Week
As Ukraine votes Jan. 17, disappointment with the Orange Revolution and Viktor Yushchenko is deep—and likely to result in a new government 


In the autumn of 2004, on the threshold of the presidential election in Ukraine, an aide to then-President Leonid Kuchma, Viktor Medvedchuk, declared in an interview that he had no doubt of a victory for Viktor Yanukovych, the candidate supported by the country’s power base. Reminded that polls predicted victory for the oppositionist democrat Viktor Yushchenko, the functionary answered curtly, “Yushchenko will not be the president.”

Such certainty gave rise to criticism from representatives of the democratic camp, who accused Medvedchuk of preparing a program of electoral fraud on behalf of Yanukovych.

What happened next is well-known. The November 2004 elections were marred by unprecedented fraud, and Yanukovych was declared the winner, sparking huge protests that came to be known as the Orange Revolution. A repeat of the election resulted in a victory for Yushchenko. For many people in Ukraine and around the world Yushchenko was a model democratic leader, capable of leading to power the country’s democratic forces.

Today, though, it is obvious that those hopes were premature. The romance of the Orange Revolution cooled with each month; the Ukrainian democrats could not work together; promised structural reforms remained nothing more than a nice idea. But probably the greatest disappointment for the people who stood in those vigils on Kyiv’s Maidan Nezalezhnosti, Independence Square, is Yushchenko himself. The model democrat has become an unpopular autocrat. Increasingly, observers say that Yushchenko grew to be like his predecessor, the anti-democratic Kuchma.

HIS UGLY SIDE

Five years ago the Ukrainian opposition proved what sociologists had been seeing in polls: that people wanted change. In 2004 Kuchma had record low trustworthiness ratings: 7 percent of those polled trusted him, while 59 percent did not. Today Yushchenko has set a new record. Nine percent say they trust him, compared with 84 percent who do not. Still, Yushchenko insists on being on the ballot this weekend. He vows that he will win, saying the polls are not to be trusted.

Suggestions that his time in power has come to an end are met with furious attacks, even during public events. On a live, pre-election talk show, respected journalist Valery Kalnysh asked the president if he had considered getting out of the race and devoting his energies to ensuring that elections are fair. Instead of answering, Yushchenko insulted his interlocutor, declaring him an “unprofessional journalist” who “has no right to work in the media if he asks the president such questions.”

Kalnysh later said, “I was shocked by such a nervous reaction. The president should be ready to answer any questions. If he was confident, he could explain why he intends to continue campaigning.”

In 2004 the “orange opposition” criticized the imperious Yanukovych for lying and manipulating data during the campaign. Today the opposition levels the same charges at the current president. For example, Yushchenko has said that four candidates have promised to step aside in his favor. The politicians in question deny it. “The president has told a lie, once again. We have not had and will not have negotiations with him and his staff,” said candidate Anatoly Gritsenko, minister of defense from 2005 to 2008. Another candidate, Oleg Tyagnybok, leader of the ultra-right Svoboda (Freedom) Party, said, “Yushchenko’s statements are inaccurate. He knows perfectly well that I haven’t met with him since 2005. And neither I nor my colleagues are conducting any negotiations with Yushchenko’s campaign.”

Perhaps the biggest shock for Yushchenko’s supporters is that the president, whom the cultural intelligentsia had claimed as its own, has taken to using coarse and abusive language as the elections approach. Referring to the country’s recent practice of taking out international loans, he said Prime Minister Yulia Tymoshenko gets loans “like a bitch gets fleas.” He has called parliament “a hall of murderers and pedophiles” and supporters of other candidates “yokels.” He has even used such language in front of shocked foreign dignitaries.




Yushchenko has not refused to use the power of his office – administrative resources – for his own political ends, despite having been at the receiving end of such tactics in 2004. Since the campaign started, he has made more than 40 flights at taxpayers’ expense for regional rallies. His political events are beamed over the UT-1 state television channel. In early January the Central Electoral Commission ordered the president to stop using administrative resources for his campaign.

“Yushchenko became a victim of the syndrome that has ruined many politicians throughout world history: the power and enormous trust people placed in him have spoiled him,” said Anatoly Lutsenko, a political expert who advised Yushchenko in 2004. “The Latin saying ‘Honores mutant mores, sed raro in meliores’ [Achievements change morals, rarely for the better] is true in Ukraine.”

Experts say there was no turning point in Yushchenko’s career that killed his democratic aspirations. Instead, the transformation occurred gradually. “A lot of people are shocked with the use of abusive language by the president. But I remember occasional instances of it even in 2005. Nobody paid much attention to it at the time,” said Igor Zhdanov, president of the Open Policy think tank in Kyiv.

Even with a long list of transgressions pinned to his name, observers acknowledge that Yushchenko’s tenure helped to push Ukraine toward democracy. “Everything is relative. If you compare less-than-ideal President Viktor Yushchenko with former President Leonid Kuchma, who committed awful infringements of basic freedoms, we see that Ukraine has changed a lot. And the ‘spark of the Maidan,’ [the revolutionary spirit of the protesters on Independence Square] that was with Yushchenko initially has not allowed him to roll things back to the authoritarian level that Ukrainians remember from the time of Kuchma,” Zhdanov said.

With the powers of the presidency trimmed in a deal that eased his path to the office, Yushchenko does not have the authority to commit the kinds of violations that led to the Orange Revolution in 2004. Still, he has a propensity to authoritarianism. He regularly signs decrees reversing government decisions, and the Constitutional Court repeatedly overturns those decrees.

IT’S PERSONAL

Some Ukrainian politicians say Yushchenko persists in such behavior for one reason – to harm Tymoshenko, the prime minister, presidential candidate, and Yushchenko’s one-time ally.

“Yushchenko’s over-arching problem is envy of Tymoshenko,” said Oleg Rybachuk, director of the presidential secretariat in 2005 and 2006.

“Yushchenko can’t admit to himself that he made mistakes. He really believes that everything good in Ukraine over the last five years is his achievement, and everything bad is connected with Tymoshenko. Therefore Yushchenko sincerely considers battling Tymoshenko to be a mission,” Zhdanov said.

The president’s conflict with Tymoshenko began in 2005 and has become more intractable each year. Over the last five years Yushchenko has also scrapped with almost every other member of his former team, especially those he saw as potential rivals.

But even the many cronies who had no ambitions to replace him, and few qualifications, have forsaken the president. “Yushchenko’s childhood friends and home-folk were the most influential lobbyists on personnel matters,” Rybachuk said.

Viktor Baloga, director of the presidential secretariat from 2006 to 2008, said, “Viktor Yushchenko is unable to choose team members. I repeatedly argued with him that some nominations were impossible, even citing instances of corruption on the part of his closest friends. But he didn’t want to hear it.”



It is worth noting that Yushchenko’s transformation from the model democrat to a politician willing to abuse his power is not unique for Ukraine. Most Orange politicians, including Tymoshenko, have strayed far from democratic standards. A dozen times during the campaign Tymoshenko has said she favors an authoritarian model of governance and wants to concentrate all the power in the country in one place. Her approach to democracy may be even more questionable than Yushchenko’s, as she has long surrounded herself with people suspected of corruption, including some who worked for Kuchma.

Nevertheless, Tymoshenko has maintained the trust of the electorate, trailing only Yanukovych throughout most of the campaign. A 13 January poll suggested she was locked in a tie for second place with a third candidate, businessman Sergey Tigipko.

Today the politicians who were considered the hope of Ukrainian democracy in 2004 are criticized throughout the country. Even Yanukovych, who back then was considered the embodiment of falsification and dishonest elections, has earned the moral right to reproach them. “We shouldn’t confuse democracy and dictatorship,” he said recently. “Democracy means the rule of law, means that human rights are protected. What we saw during the past five years was not democracy. It was the chaos and disorder into which the ‘Oranges’ have cast the country.”

If the polls are right, many Ukrainians will believe him instead of the discredited leaders of the Orange Revolution in Sunday’s elections.

Monday, March 30, 2009

Video: Ukraine, Rest of Eastern Europe On Verge Of Financial Collapse
From BBC




In a related article from Reuters:

Billionaire investor George Soros said on Tuesday Eastern Europe was a "prime candidate" for International Monetary Fund (IMF) support.

Speaking at the London School of Economic ahead of the G20 summit, Soros said: "G20 should not just provide pious words but should take steps to stabilise periphery countries."

Last week Soros told the Times that it was "conceivable" for Britain to seek help from the IMF.