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THEPublished U byKRAINIAN the Ukrainian National Association Inc., a fraternal non-profitW associationEEKLY Vol. LXXVII No.9 THE UKRAINIAN WEEKLY SUNDAY, MARCH 1, 2009 $1/$2 in Ukraine Former chief of staff to Yushchenko Economic crisis deepens; says voters will opt for new leadership protests reported in Ukraine by Zenon Zawada Tymoshenko to revise the 2009 budget, she Kyiv Press Bureau has declined to do so, stating her preference for more effectively using current funds, as KYIV – As the dysfunctional Ukrainian well as those derived from local taxes. government scrambled to put out economic “It’s absolutely correct that it’s better not fires, the hryvnia slid further against the U.S. to review the budget, which we’re planning dollar this week, leading thousands of to examine in May, as much as any review Ukrainians to organize protests and demand of the budget is a reduction in revenues, not the resignation of President Viktor a supplement,” she told a February 25 meet- Yushchenko. ing of oblast council chairs at the Cabinet of On February 24, Kyiv street kiosks were Ministers. offering 9.20 hrv per $1 as the value of the Hampering the government’s efforts to Ukrainian currency fell about 10 percent form a plan and cope with the crisis was the from the prior week. February 12 resignation of former Finance Sharing the frustrations of common Minister Viktor Pynzenyk, who has yet to be Ukrainians were global bankers, who held replaced. back the second tranche of a promised $1.9 Meanwhile, the controversial chair of the billion loan from the International Monetary National Bank of Ukraine, Volodymyr Fund (IMF), citing the ongoing conflict Stelmakh, who was supposed to return from Yaro Bihun between the Presidential Secretariat led by his vacation on February 23, decided to Oleh Rybachuk discusses the political and economic crises in Ukraine as it looks President Yushchenko and the Cabinet of extend it to March 9. The vacation began on forward to changing its leadership in the 2010 presidential elections. Sitting next Ministers led by Prime Minister Yulia January 15. to him is the discussion moderator Markian Bilynsky, vice-president of the U.S.- Tymoshenko. Subsequently, the Ukrainian government Ukraine Foundation. “The political situation is becoming less has yet to draft any crisis plan, not only and less positive in light of the upcoming resulting from the lack of consensus, but by Yaro Bihun Minister Yulia Tymoshenko; how the presidential election,” Ceyla Pazarbasioglu, also because conditions are changing rapidly the IMF mission head to Ukraine, said on Special to The Ukrainian Weekly president’s ratings would be one-tenth of and unpredictably, political observers said. what they were then and that he would be February 26. “Above all, the government is currently WASHINGTON – President Viktor fifth in the polls for the coming presiden- “And until quite recently, domestic eco- resolving the immediate problems of filling Yushchenko’s former chief of staff Oleh tial election; and that he – Mr. Rybachuk nomic indicators are more and more compli- the budget and making payments, particu- Rybachuk said that the Ukrainian people – would be speaking not as an Orange cated and serious. In light of such conflicts, larly Gazprom and pensions,” said will opt for new leadership when they go politician but as an independent. it’s more and more complicated to avoid the Volodymyr Fesenko, a political expert with to the polls in the next presidential elec- “Economically, Ukraine is doing very consequences of the financial-economic cri- the Penta Center for Applied Political tion in 2010. badly,” Mr. Rybachuk said. “On top of sis,” she said. Research in Kyiv. “But there hasn’t been a Speaking at the U.S.-Ukraine that we have a political crisis,” which has Political consensus between the certain consensus or agreed-upon view of Presidential Secretariat and the Cabinet is Foundation headquarters here on February been there since the Orange Revolution. what a crisis plan should be, even within the needed to meet the key IMF demand that 24, Mr. Rybachuk said that Ukraine’s cur- Adding the global economic crisis to the Tymoshenko team, which Pynzenyk’s resig- Parliament pass a revised 2009 budget that rent three major political figures – mix, he said, the situation has become nation was proof of.” is more realistic than what was approved in President Viktor Yushchenko, former “really threatening.” Instead the Cabinet led by Ms. December 2008, particularly cutting the 3 Prime Minister Viktor Yanukovych and There is a very low level of public Tymoshenko is attempting to extinguish Prime Minister Yulia Tymoshenko – are percent deficit. seen by the public as sharing responsibili- (Continued on page 22) While Mr. Yushchenko has urged Ms. (Continued on page 8) ty for the major economic and political problems the country now faces and have little chance of being elected. Kyiv warns Russian envoy about disparaging remarks Since Ukraine’s independence, Mr. Rybachuk has served with Mr. by Zenon Zawada Yushchenko at the National Bank of Kyiv Press Bureau Ukraine and in the top positions in the prime minister’s and presidential offices, KYIV – Tensions flared between but now considers himself an indepen- Ukraine and the Russian Federation dent. after Foreign Affairs Minister He came to Washington last week in Volodymyr Ohryzko warned Russian his capacity as the chairman of the Ambassador to Ukraine Viktor Suspilnist Foundation, which promotes Chernomyrdin about disparaging Ukraine’s participation in Euro-Atlantic remarks he made concerning President structures. Viktor Yushchenko and the Ukrainian Mr. Rybachuk recalled that when he people. visited Washington five years ago, during At a February 17 meeting at the the Orange Revolution presidential elec- Ministry of Foreign Affairs, Mr. tion campaign that brought President Ohryzko cautioned Mr. Chernomyrdin Yushchenko to power, he could not have that further remarks, such as those pub- imagined how five years later he would lished on February 11 in the pro-Russian be explaining how things did not work daily newspaper Komsomolskaya out the way they had planned for Ukraine; Pravda, could lead to a persona non how Mr. Yushchenko today has a better grata declaration, making him liable to Maria Masich Zenon Zawada expulsion from Ukraine. relationship with his presidential oppo- Russian Ambassador to Ukraine Foreign Affairs Minister of Ukraine nent Mr. Yanukovych than with his (Continued on page 4) Viktor Chernomyrdin. Volodymyr Ohryzko. Orange Revolution partner, Prime 2 THE UKRAINIAN WEEKLY SUNDAY, MARCH 1, 2009 No. 9 ANALYSIS NEWSBRIEFS EU foreign ministers discuss Kyiv to have new emblem, flag citizenship. A total of 233 national deputies backed the measure. According to amend- KYIV – Ukraine’s capital city will get a ments to this document, foreigners and indi- Eastern Partnership initiative new emblem and a new flag for this year’s viduals without citizenship would be able to Day of Kyiv (celebrated in May), the depu- by Ahto Lobjakas common platform for issues of mutual leave Ukraine for countries of their origin ty chairman of the Kyiv City State or other countries not only with valid pass- RFE/RL interest such as energy security, is the way Administration, Serhii Rudyk, stated on forward.” ports, but also with certificates of foreigners BRUSSELS – Next month, the European February 20, during a meeting of the work- or individuals without citizenship if these The final shape of the project will ing group that is preparing the design for Union is expected to offer six countries an emerge at an EU summit on March 19-20. documents are recognized in accordance upgrade of its European Neighborhood the emblem and the flag. The Kyiv City with Ukraine’s international agreements on It is clear at this stage already that the part- Council had decided back in 1995 to adopt Policy in a new arrangement it is calling the nership offer will not include EU member- readmission. (Ukrinform) Eastern Partnership, an initiative tailored as a Kyiv emblem, but at present it has only a ship. The partners will be offered eventual description of the capital’s main symbols. More peacekeepers for Afghanistan a response to growing Russian assertiveness free trade, visa-free travel and close energy in what EU officials used to call “the shared And, despite the fact that the figure of St. cooperation – assuming they harmonize Michael the Archangel is used in all of KYIV – Ukraine’s Defense Ministry neighborhood.” their laws with those of the EU’s, reform announced plans to increase the number of After a meeting on February 23 in Kyiv’s official symbols, to date there is no their economies and demonstrate democrat- single, approved design for Kyiv’s emblem its peacekeepers in Afghanistan, Defense Brussels of EU foreign ministers, EU ic progress. Minister Yurii Yekhanurov said on February External Relations Commissioner Benita and flag. Thus, the working group “has a The EU will engage its partner countries concrete task: to develop renewed and mod- 23. “I think we will shortly propose a small Ferrero Waldner said Russia’s recent spats in a “give and take,” Ms. Ferrero Waldner group of specialists to work in Afghanistan,” with Georgia and Ukraine have forced the ern graphics of Kyiv’s emblem and flag and said. “Like [I] always said, it offers incen- to submit them for the approval of the Kyiv he said. According to Mr. Yekhanurov, the EU to react. tives to perform and to reform. It’s more for military command from Lithuania had “I think that after the [Russian]-Georgian Council,” said Mr.