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Ukraine's Capital Is Battleground Between Residents and Developers Prime Minister Mykola Azarov Returns Empty-Handed from Mosc

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Ukraine's Capital Is Battleground Between Residents and Developers Prime Minister Mykola Azarov Returns Empty-Handed from Mosc ïêàëíéë ÇéëäêÖë! CHRIST IS RISEN! THEPublished U by theKRA Ukrainian NationalIN AssociationIAN Inc., a fraternal Wnon-profit associationEEKLY Vol. LXXVIII No.14 THE UKRAINIAN WEEKLY SUNDAY, APRIL 4, 2010 $1/$2 in Ukraine Prime Minister Mykola Azarov Ukraine’s capital is battleground returns empty-handed from Moscow between residents and developers by Zenon Zawada projects that they say are ruining residen- Kyiv Press Bureau tial areas, parks and historic structures throughout the capital city. KYIV – Among the biggest challenges Save Old Kyiv has gathered momentum facing the new administration of President and spawned similar organizations, as Viktor Yanukovych will be coping with the more residents have become directly escalating conflicts, sometimes violent, affected by aggressive construction of sky- between Kyiv’s real estate developers, the scrapers, shopping malls and entertain- police and the city’s residents. ment centers in their neighborhoods. Battles raged daily during the Orange The peaceful protest on March 20 era, as a result of a construction boom that turned into a brawl when police officers emerged amidst inadequate laws, courts attempted to stop the activists from acti- and policing to regulate building. vating a megaphone and speakers to enable Developers are widely believed to pay their protests to be heard within the bribes to secure many of the required Cabinet building. Activists said they had building permits, architectural reviews and no choice but to fight the police in order to court rulings. defend their right to free speech. The lack of regulation in the industry “The police can’t forbid us to play has led civic activists to launch both legal music or not play music, to speak into a and illegal avenues of protests to combat microphone or megaphone,” said Web-Portal of Ukraine’s Government what they view as unrestrained illegal con- Oleksander Buntusov, an activist with the struction. The conflicts haven’t subsided Coalition of Participants in the Orange Prime Ministers Mykola Azarov of Ukraine (left) and Vladimir Putin of Russia with the new government, as brawls Revolution. during their meeting in Moscow on March 25. between activists and police erupted “That’s interference in conducting a throughout March. protest by a civic organization, as well as by Pavel Korduban Gas talks to continue “The illegal steps are taken out of des- abusing authority and exceeding govern- ment authority by police,” he said. “The Eurasia Daily Monitor Prime Ministers Putin and Azarov peration,” said Volodymyr Yavorsky, exec- police are so corrupt that they can agreed that the gas talks will continue utive director of the Ukrainian Helsinki Ukrainian Prime Minister Mykola approach you groundlessly and say, ‘Boys, during April in Moscow. Gazprom said it Human Rights Union in Kyiv. Azarov failed to persuade Moscow to my head hurts today. Don’t turn anything could discuss a decrease in prices if “In a civilized society, they could file a lower the price of gas for Ukraine. on.’” Ukraine agreed to buy more than 33.75 complaint in court and block illegal con- Although Kyiv’s offer of participation in The 10-minute fight resulted in the a consortium to manage Ukraine’s gas bcm of gas in 2010 as set out in the con- struction. In our legal system, that’s practi- cally impossible. It’s rare that these con- police surrendering and the protesters acti- pipelines was not openly rejected, it was tracts (Kommersant-Ukraine, March 26). vating the speakers. Yet the willingness of flicts can be decided in court,” he hinted that this might not be enough. Gazprom wants Ukraine to pump more the protesters to engage in a scuffle with explained. More economic and political concessions gas into its underground storage facilities. police demonstrates just how little authori- About 100 activists of the Save Old are expected in exchange for cheap gas. Cash-strapped Ukraine, whose GDP fell ty and respect they command from aver- Kyiv organization gathered in front of the Mr. Azarov returned to Kyiv only with by 15 percent in 2009, cannot afford such age Ukrainian citizens, observers said. a promise that the talks will continue. terms. Mr. Azarov said that Ukraine Cabinet of Ministers building on March 20 This was a test for the new Ukrainian would buy only as much gas as needed to protest rampant illegal construction (Continued on page 8) government, which many have labelled as for domestic consumption, since “we do pro-Russian. If President Viktor not need redundant gas” (UNIAN, March Yanukovych and his team do not agree to 26). Russian conditions, Kyiv will have to Mr. Azarov had arrived in Moscow at turn for financial assistance to the West, Mr. Putin’s invitation as talks between which will insist on serious reform. Ukrainian Fuel and Energy Minister Yurii Russian Prime Minister Vladimir Boiko, and Gazprom CEO Aleksey Miller Putin, during his talks with Mr. Azarov on March 23-24 produced no result. Mr. on March 25, flatly rejected Mr. Miller was shown on TV telling Mr. Yanukovych’s complaint that the January Boiko that contracts should be respected 2009 gas contracts were unfair as the (Channel 5, March 24). price is too high compared to European Ukrainian officials were determined to prices. Mr. Putin said that the contracts, persuade Moscow to lower the price of which were concluded by Mr. Azarov’s gas. Ukraine pays $305 per 1,000 cubic predecessor, Yulia Tymoshenko, must be meters of gas in the first quarter of 2010, honored. Mr. Azarov grudgingly con- and the average price for the year is firmed that Ukraine would continue to expected to reach $334 (RBK-Ukraine, pay according to the contracts. March 24), compared to $228 in 2009. The only concession that Mr. Putin Kyiv cannot afford this, especially as it is made was the promise that Russia would reluctant to increase domestic gas prices, not punish Ukraine for buying less gas which would be a very unpopular mea- than agreed. In the first quarter of 2010, sure. Ukraine imported 6 billion cubic meters The state-controlled oil and gas behe- (bcm) of Russian gas, rather than 8.4 bcm moth Naftohaz Ukrainy continues to sell Zenon Zawada as it stipulated in the contracts (Interfax, gas to end consumers with heavy dis- March 25). Mr. Putin had made the same counts, while buying from Russia at mar- Activists with Save Old Kyiv, which fights illegal real estate activity, battles concession to Prime Minister Tymoshenko against a police attempt to confiscate their microphone and speakers at a March in 2009. (Continued on page 17) 20 protest at the Cabinet of Ministers. 2 THE UKRAINIAN WEEKLY SUNDAY, APRIL 4, 2010 No. 14 ANALYSIS NEWSBRIEFS Naftohaz management change Preparations for Yanukovych’s U.S. visit high-level Canadian delegation will come to Ukraine in May for political consulta- indicates turn toward Russia KYIV – Foreign Affairs Minister tions and talks on cooperation in various Kostyantyn Gryshchenko held a meeting areas. (Ukrinform) within the framework of the Brussels by Vladimir Socor actually implemented the RosUkrEnergo Forum with U.S. Assistant Secretary of IMF to review forecast for Ukraine scheme that Mr. Boiko was instrumental in Eurasia Daily Monitor State for Europe and Eurasian Affairs devising. Mr. Firtash owned 45 percent of Philip Gordon and U.S. Assistant Secretary KYIV – The International Monetary On March 22, the new Ukrainian govern- RosUkrEnergo’s shares, with his Ukrainian of Defense for International Security Fund (IMF) is to review its forecast for ment completed the formation of the senior partner Ivan Fursin owning 5 percent, and Alexander Vershbow, it was reported on Ukraine’s gross domestic product (GDP) management team at Naftohaz Ukrainy, the Gazprom 50 percent. Prime Minister Yulia in 2010, the Finance Ministry’s press ser- state oil and gas company (Interfax-Ukraine, Tymoshenko’s government ultimately March 29 by the press service of Ukraine’s Ministry of Foreign Affairs. During the vice said in a statement following a meet- UNIAN, March 22; Kommersant, March removed RosUkrEnergo from the Russian- ing held between Vice Prime Minister meeting, the parties discussed topical 23). This team is directly answerable to Fuel Ukrainian gas trade in early 2009, by agree- Sergey Tigipko, Finance Minister Fedir issues of bilateral Ukrainian-American and Energy Minister Yurii Boiko and, equal- ment with Moscow. Yaroshenko and IMF mission experts. The relations, including preparations for a visit ly but informally, to RosUkrEnergo gas At present, Mr. Firtash seeks compensa- IMF review will take into account the by Ukraine’s President Viktor Yanukovych trader Dmytro Firtash, an industrial tycoon tion for 11 billion cubic meters (bcm) of gas, updated macroeconomic figures approved for participation in the Nuclear Security in his own right, closely allied with Boiko. which he claims was taken from by the Ukrainian government, it was Summit that will take place on April 12-13 Mr. Boiko’s appointment as minister was RosUkrEnergo’s storage in Ukraine in 2009. reported on March 30. (Ukrinform) widely expected; and apprehensively so, Although removed from the inter-state gas in Washington. The readiness to continue outside the government’s orbit. He had trade, Mr. Firtash remains in control of a development of bilateral relations in com- Women sue prime minister served in both previous governments headed diversified industrial holding, Group DF pliance with the Charter on Strategic Partnership of Ukraine and the U.S. was KYIV – The head of the Information by the newly elected Ukrainian President (Dmytro Firtash). Furthermore, he is a major and Advisory Women’s Center, Olena stakeholder in the Independent TV corpora- confirmed and interest was expressed in Viktor Yanukovych. In the new government, Suslova, has filed a lawsuit in Kyiv’s tion, which includes Ukraine’s top-rated expansion of trade and economic coopera- an informal division of spheres has placed District Administrative Court against Inter TV channel.
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