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HEPublished byKRA the Ukrainian NationalIN AssociationIAN Inc., a fraternal non-profit associationEEKLY Vol. LXXVIT UNo. 51 THE UKRAINIAN WEEKLY SUNDAY, DECEMBER W 21, 2008 $1/$2 in Ukraine U.S.-Ukraine Business Council New coalition emerges welcomes its 100th member, Microsoft amidst crisis in Ukraine by Zenon Zawada ment, the coalition is highly flawed – it Kyiv Press Bureau was established on a de facto basis, not having legal standing; and it lacks a KYIV – Forged with defectors from 226-vote majority in Parliament and, the president’s camp, a de facto coalition therefore, is dependent on drawing votes government emerged on December 16 to from other factions. offer stability, keep the current Cabinet of “The practical experience of voting has Ministers in place and replace the failed shown the [Party of] Regions and alliance between the Yulia Tymoshenko Communists can offer several votes,” said Bloc and Our Ukraine – People’s Self- Borys Tarasyuk, leader of the People’s Defense. Rukh of Ukraine party and vice-chair of The National Development, Stability the Our Ukraine – People’s Self-Defense and Order Coalition consists of the parliamentary faction. Tymoshenko Bloc, the Volodymyr Lytvyn Following the election of Mr. Lytvyn Bloc, and 37 national deputies from the as Verkhovna Rada chair, the de facto Our Ukraine – People’s Self-Defense bloc coalition was the latest step taken by no longer loyal to the president, including Prime Minister Tymoshenko to establish all 17 deputies from the People’s Self- some measure of political stability amidst Defense party. a Ukrainian financial and economic crisis Oleksiy Synelnychenko “The coalition’s creation is the end of that worsens with each passing day. At the annual meeting of the U.S.-Ukraine Business Council (from left) are: the political crisis,” Prime Minister The hryvnia continued its unprecedent- Iryna Teluk (USUBC), Dorothy Dwoskin (Microsoft, the USUBC’s 100th mem- Tymoshenko told Interfax-Ukraine on ed plunge, trading at 8.5 hryvni per $1 on ber) and Morgan Williams (USUBC). December 17. December 18 at street kiosks in Kyiv. The That same day President Viktor currency has lost close to half of its value by Yaro Bihun and programs – the Microsoft Corp. since the summer. That announcement was made here on Yushchenko criticized the de facto coali- Special to The Ukrainian Weekly tion, which he said only serves to keep in Meanwhile, Ms. Tymoshenko and for- December 17 by Morgan Williams at a mer Rada Chair Arseniy Yatsenyuk called WASHINGTON – The U.S.-Ukraine luncheon during the USUBC’s annual power Ms. Tymoshenko, who is incapable of managing the government, implement- for the resignation of National Bank of Business Council (USUBC), an associa- meeting at Washington’s Metropolitan Ukraine Chair Volodymyr Stelmakh, tion devoted to enhancing trade and Club. The meeting also re-elected Mr. ing pragmatic steps and taking effective measures to cope with the economic cri- accusing him of mismanagement, corrup- investment relations between the two Williams as the group’s president and tion and exploiting the financial crisis for countries, has reached its goal of having sis. “That today’s so-called coalition CEO. his own personal gain. 100 member-companies and institutions emerged on political corruption is fact,” The USUBC is the largest Ukraine- Both the de facto coalition and Mr. by the end of 2008. And that 100th mem- Mr. Yushchenko said. related business trade association outside Lytvyn’s election are a direct result of ber is the world’s leading developer and Despite Ms. Tymoshenko’s best efforts Ms. Tymoshenko’s enormous influence in producer of computer operating systems (Continued on page 26) to patch together a functioning govern- Ukrainian politics and her uncanny ability to strike deals with politicians. To get Mr. Lytvyn to join the de facto coalition, Ms. Tymoshenko offered him Report of U.S. Commission on Ukraine Famine presented in Ukraine control of the state railroad monopoly, Ukrzaliznytsia, and the State Material by Illya M. Labunka Reserves Committee. Special to The Ukrainian Weekly To get Mr. Lytvyn elected, Ms. Tymoshenko undoubtedly offered the KYIV – One of the last official events Communists some sort of favor, which is held in Ukraine in commemoration of this yet unknown to the Kyiv press corps, as year’s 75th anniversary of the Holodomor no political appointments have yet to took place in Kyiv at the U.S. ambassa- emerge from their ranks. dor’s residence. Though the Parliament passed the first Ambassador William Taylor and Dr. readings of a handful of laws during its Deborah Taylor on November 28 hosted December 11-12 sessions, the most representatives of the North American important legislation remains ahead, Ukrainian diaspora, as well as other invit- including the 2009 budget and measures ed guests from the United States and to cope with the financial crisis. Ukraine to mark the formal presentation However the prime minister declared of the fourth and final volume of the on December 18 that Parliament would Ukrainian translation of the Report of the pass no laws until Mr. Stelmakh appeared U.S. Commission on the Ukraine Famine. to present a report on the nation’s financ- Volume 4 serves as a summary report es. Her opponents derided the move as addition to the three-volume translated political showmanship to exploit the Oral History Project that was published in financial crisis. August in Kyiv. All four translated vol- Throughout Ms. Tymoshenko’s deal- umes were published by the Institute of making, the Presidential Secretariat and Illya M. Labunka History of the National Academy of the Party of Regions of Ukraine have Sciences of Ukraine and printed by the been sideline observers, unable to form Following the presentation of the final volume of the Ukrainian translation of the Kyiv Mohyla Academy publishing house alliances to pull the government out of its U.S. Famine Commission Report, and of the brochure explaining the behind-the- in Kyiv. current crisis. scenes history of the creation of the commission (from left) are: former Sen. Bill The original three-volume English- Instead the Presidential Secretariat, led Bradley, Dr. Nataliya Shulga, Ambassador William B. Taylor, Dr. Bohdan Vitvitsky and Ulana Mazurkevich. (Continued on page 5) (Continued on page 28) 2 THE UKRAINIAN WEEKLY SUNDAY, DECEMBER 21, 2008 No. 51 ANALYSIS NEWSBRIEFS Ukraine recognizes gas debt, Gazprom proposal unacceptable especially the prime minister.” He added, “It is clear that it is necessary to change the KYIV – The National Joint-Stock staff of the government and there should be may face far higher price Company Naftohaz of Ukraine believes another prime minister to resolve [econom- that the proposal of Russia’s gas giant by Pavel Korduban bility. ic] problems... It is premature to say that Gazprom to clear Ukraine’s gas debt at the these problems have been resolved Eurasia Daily Monitor Speaking in an interview on November expense of the advance payment for [because of the creation of the coalition 27, Mr. Dubyna said that Ukraine should Russian gas transit in 2009 is unacceptable, December 3 and the election of a new parliament speak- charge more for Russian gas transit if it according to Naftohaz Deputy CEO Vadym er].” The Presidential Secretariat predicted Gazprom has threatened to more than pays more for Russian gas. He pointed Suprun, who spoke with journalists in the that debts for the payment of wages in double the gas price in 2009 if Ukraine out that Ukraine’s western neighbors Chernihiv region on December 16. He said Ukraine would hit 461 million hrv by the fails to pay its debt for previous purchas- Slovakia and the Czech Republic charged talks with the Russian side are continuing end of this year, while the unemployment es by January 1. Ukraine’s energy ineffi- some $4 per 1,000 cubic meters per 61 and that the Ukrainian side has received level would total 5 million people in 2009. cient industry might not survive such an miles (100 kilometers) for transporting various proposals on the gas payment from increase amid the global economic crisis. Russian gas, compared with Ukraine’s Gazprom. Mr. Suprun said the Ukrainian Moreover, according to a survey conducted Moreover, RosUkrEnergo may be $1.70 (Kommersant Ukraine, November company had paid for Russian gas con- by the Presidential Secretariat, the financ- retained as an intermediary in gas trade, 27). sumed in September and would clear its ing of over 60 national programs has been contrary to Ukrainian Prime Minister If Naftohaz paid the debt as requested debt for gas imported in October by the stopped. (Ukrinform) and Russia adhered to the October Yulia Tymoshenko’s plans. Ukraine man- end of this week. He also expressed hope Ukrainians aboard hijacked ship aged to pay only a fraction of its debt by accords with Prime Minister Tymoshenko, that the company would fully clear its gas December 2. Russian gas should, in fact, cost much debt by the end of this year. Mr. Suprun KYIV – According to a report by the Talks on the 2009 price between less than $400 per 1,000 cubic meters said that Naftohaz could clear its gas debt Embassy of Ukraine in Kenya, on Naftohaz Ukrainy, the government-con- given the falling energy prices world- with the help of two sources: current pay- December 16 pirates hijacked the trolled oil and gas company, and Gazprom wide. ments for consumed gas and the debt of Bosphorus Prodigy vessel owned by the have been fruitless so far. As Naftohaz’s Yurii Boyko, Ukraine’s former fuel and Ukrainian consumers, which is currently Turkey-based Isko Marine Shipping Co., representatives have been traveling energy minister, suggested the gas should around 1.5 billion hrv (7.65 hrv equal $1 which flies the flag of Antigua.