LE BOURGET - Russian aircraft manufacturer Sukhoi has signed a $283-million contract to supply 10 Superjet 100/95 aircraft to Italian carrier ItAli Airlines, with an option for 10 additional aircraft. The contract was signed by Sukhoi CEO Mikhail Pogosyan and top executives of the Italian regional air carrier at Le Bourget air show near Paris. Deliveries are to begin in 2009.
"The new Superjet is the ideal aircraft to allow ItAli's to grow in its national and international activities," said ItAli chairman Guiseppe Spadaccini of his company's order. The small, low-cost Italian airline is based in Pescara in central Italy.
Separately, Sukhoi announced that Italian aerospace group Alenia, a subsidiary of Finmeccanica, had completed its acquisition of a stake of 25 percent plus one share in the group's commercial plane operations, Sukhoi Civil Aircraft Company.
The SuperJet-100 project is a family of medium-range passenger aircraft developed by the Sukhoi Design Bureau in cooperation with major American and European aviation corporations, including including Boeing, Snecma, Thales, Messier Dowty, Liebherr Aerospace and Honeywell.
"Between now and 2024, Sukhoi expects to sell 800 Superjet 100s, including 300 in Russia and 500 on the Western market," said the head of commercial plane operations for the Russian group, Victor Subbotin, during a press conference.
Sukhoi had already signed deals with Russian airlines, but was searching for foreign customers. The first deliveries of the Superjet 100 to Russian clients are scheduled for 2008, but Pogosyan said his company had halted negotiations with Russia's S7 Airlines (formerly Sibir) on Superjet-100 sales.
"There are some problems with Sibir. Its development strategy has changed somewhat, so Sukhoi has closed negotiations with it on Superjet-100," Subbotin said
S7 Airlines signed a contract Monday with Airbus to buy 25 new A320 medium-haul passenger planes for more than $1.6 billion. In late May the airline had also ordered 15 Boeing-787 Dreamliners, with delivery starting in 2014.
According to Subbotin, Sukhoi is continuing negotiations with a number of Russian and European air carriers, about 30 in total. The Russian group has suggested in the past that Air France and Scandinavian airline SAS are interested, as well as German rival Lufthansa. Demand for regional jets, passenger planes of less than 100 seats, has risen in line with the market for large commercial aircraft as the booming global economy continues to boost the travel industry.
Small jet makers Bombardier from Canada and Embraer from Brazil have reaped the benefits, thriving in a part of the aircraft business neglected by the powerful duo of Airbus and Boeing.
Besides Sukhoi, there are a number of other companies entering this market worldwide.
A consortium of Chinese companies and research institutes have been working on a Chinese regional jet, the ARJ21, which is set to begin flights next year.
Earlier this week, the China Aviation Industry Corporation, the state company in charge of the project, signed a cooperation deal with Bombardier to extend its range of planes.
The Canadian group is to invest $100 million in the development of a ARJ21-900, a bigger version of the ARJ21. The companies have pledged to share technical information.
Monday 29 December 2008
Russia Unveils New Superjet Plane
KOMSOMOLSK-ON-AMUR (AFP, MN) - Russia on Wednesday rolled out a new regional passenger jet that it hopes will revive the country's civil aviation industry and rival similar models from Brazil and Canada.
The Superjet 100 is being developed by state-run jetmaker Sukhoi with Western partners at a factory in Komsomolsk-on-Amur in Russia's Far East, some 8,000 kilometers east of Moscow.
"The first plane of the new Russia is of great importance, a priority project, because the domestic market is not enough for a world economy," First Deputy Prime Minister Sergei Ivanov said at the unveiling ceremony.
With the Superjet 100, Sukhoi hopes to succeed where Soviet-era jetmakers Ilyushin and Tupolev failed: in taking a large share of the world's booming passenger jet market.
The plane, which can fit up to 110 passengers, is due to undergo test flights later this year, and developers hope to be producing up to six planes a month for world markets by 2010.
Sukhoi is hoping U.S. and European authorities will certify the plane in 2008.
For officials, the project is a symbol of Russia's ambitions to diversify its increasing powerful economy away from a reliance on oil and gas exports towards manufacturing and hi-tech.
U.S. jetmaker Boeing, Italy's Alenia, and French companies Snecma and Thales are all involved in the project, for which Sukhoi expects to spend around $1 billion.
Alenia, part of Italian industrial giant Finmeccanica, owns a 25 percent stake in Sukhoi Aviation.
Russian carrier Aeroflot has ordered 15 of the Superjet 100s for $400 million and Italian regional carrier ItAli has put in an order for 10 planes.
There are 73 orders in total so far for the Superjet, mainly from Russian regional carriers.
Sukhoi is aiming to break into the regional jet market, which is booming and is currently dominated by Brazil's Embraer and Canada's Bombardier.
Sukhoi chief Mikhail Pogosian estimated the Superjet 100 could take up a fifth of the market for planes with between 70 and 100 seats, which is estimated at 5,000 jets over the next 20 years.
Sukhoi estimates the project will become profitable after the 300th jet.
Pogosian said the plane offered "comfort and efficiency," as well as a price tag of $28 million, or 25 percent lower than the Embraer 190.
Meanwhile, Igor Kalygin, the general constructor of the Tu-334 plane expressed doubts about Superjet 100 prospects.
In an interview with Russia's Trud daily newspaper, Kalygin said the rollout of Superjet was a "PR action" and the aircraft still required a lot of work to be done.
"It will be wheeled out of its hangar and then wheeled back in for a long time. For the time being, it is - as constructors put it - a ‘painted shell.' It hasn't flown yet, and it won't soon as it requires serious fitting-out, during which its flying capabilities such as flying range, weight, etc., will likely change for the worse," Kalygin told the paper.
The Superjet 100 is being developed by state-run jetmaker Sukhoi with Western partners at a factory in Komsomolsk-on-Amur in Russia's Far East, some 8,000 kilometers east of Moscow.
"The first plane of the new Russia is of great importance, a priority project, because the domestic market is not enough for a world economy," First Deputy Prime Minister Sergei Ivanov said at the unveiling ceremony.
With the Superjet 100, Sukhoi hopes to succeed where Soviet-era jetmakers Ilyushin and Tupolev failed: in taking a large share of the world's booming passenger jet market.
The plane, which can fit up to 110 passengers, is due to undergo test flights later this year, and developers hope to be producing up to six planes a month for world markets by 2010.
Sukhoi is hoping U.S. and European authorities will certify the plane in 2008.
For officials, the project is a symbol of Russia's ambitions to diversify its increasing powerful economy away from a reliance on oil and gas exports towards manufacturing and hi-tech.
U.S. jetmaker Boeing, Italy's Alenia, and French companies Snecma and Thales are all involved in the project, for which Sukhoi expects to spend around $1 billion.
Alenia, part of Italian industrial giant Finmeccanica, owns a 25 percent stake in Sukhoi Aviation.
Russian carrier Aeroflot has ordered 15 of the Superjet 100s for $400 million and Italian regional carrier ItAli has put in an order for 10 planes.
There are 73 orders in total so far for the Superjet, mainly from Russian regional carriers.
Sukhoi is aiming to break into the regional jet market, which is booming and is currently dominated by Brazil's Embraer and Canada's Bombardier.
Sukhoi chief Mikhail Pogosian estimated the Superjet 100 could take up a fifth of the market for planes with between 70 and 100 seats, which is estimated at 5,000 jets over the next 20 years.
Sukhoi estimates the project will become profitable after the 300th jet.
Pogosian said the plane offered "comfort and efficiency," as well as a price tag of $28 million, or 25 percent lower than the Embraer 190.
Meanwhile, Igor Kalygin, the general constructor of the Tu-334 plane expressed doubts about Superjet 100 prospects.
In an interview with Russia's Trud daily newspaper, Kalygin said the rollout of Superjet was a "PR action" and the aircraft still required a lot of work to be done.
"It will be wheeled out of its hangar and then wheeled back in for a long time. For the time being, it is - as constructors put it - a ‘painted shell.' It hasn't flown yet, and it won't soon as it requires serious fitting-out, during which its flying capabilities such as flying range, weight, etc., will likely change for the worse," Kalygin told the paper.
US, Russia, China in Dogfight Over Jet Sales
WASHINGTON (AFP) - The United States is bracing for tough competition from Russia and China as cash-flush Asian economies look up to the trio for a new breed of fighter jets to beef up their air forces, experts say.
Japan, India, Australia and South Korea are keen to have the most modern, fifth generation, jet fighters while Southeast Asian nations such as Malaysia and Indonesia are reportedly eyeing fourth generation fighters from China.
With Asia powering ahead with military modernization and capability growth, the United States wants to maintain leadership in defense sales in the region attracted by low cost offerings from Russia and China, experts said.
"The Americans and Russians are competing hard for the Asian fighter aircraft market, but everybody is also watching to see how aggressively the Chinese will be entering this market," Richard Fisher, an expert with the Washington-based International Assessment and Strategy Center, said.
The tight competition comes as Asian economies move ahead "much more aggressively" to upgrade their air defense capabilities, he said.
"It's not quite right to say an arms race, but there is an arms jog in Asia," Fisher said.
The United States is currently the sole producer of fifth generation fighters - the F-22s and F-35s. Export of F-22s is barred by law while the lower cost F-35s have just started flight testing ahead of deployment around 2012.
Russia and China's fifth generation fighter offerings could well be on the market between 2015 and 2020, a time frame experts say is not very far away in terms of defense planning.
"I don't want to get into the numbers because they were given to me in confidence but the price the Russians are estimating for their fifth generation fighter is substantially less than the Joint Strike Fighter (F-35) and substantially less than F-22," U.S. aviation expert Reuben Johnson told a Washington forum last week on "challenges to the Asian air power balance."
He said the Russian arms industry was grappling with high production costs.
Russian weapon exports to China have also plunged as Beijing became more wary over Moscow's sales of its most advanced weaponry to neighbor India, Johnson said.
"What is really the challenge is we have two very large countries, China and India, whose economies are booming and who are buying lots of hardware and we are looking at a situation down the road where they are going to have very, very sophisticated air forces," he said.
Russia had already teamed up with India to co-develop and co-produce a version of Moscow's fifth generation fighter, but Fisher said that given the Indian preference of diversifying its weapons sources, it was possible New Delhi could purchase a U.S. fifth generation fighter at some point.
The United States is also vying with Russia and others for a 12-billion-dollar contract to sell 126 fourth generation fighter jets to the Indian air force.
The competition from Russia could prod the Americans to lift an export ban on F-22s, eyed by Australia and Japan, top U.S. allies in the region, experts said.
U.S. Defense Secretary Robert Gates hinted during a recent Australian visit that Congress may be asked to reconsider the ban.
"It is imperative that the United States consider selling some version of the F-22 to maintain a strong deterrent posture in Asia," Fisher said.
"I would say categorically that Japan requires a capability of the level of the F-22 in order to sustain a sufficient position to deter China," he said.
Japan, India, Australia and South Korea are keen to have the most modern, fifth generation, jet fighters while Southeast Asian nations such as Malaysia and Indonesia are reportedly eyeing fourth generation fighters from China.
With Asia powering ahead with military modernization and capability growth, the United States wants to maintain leadership in defense sales in the region attracted by low cost offerings from Russia and China, experts said.
"The Americans and Russians are competing hard for the Asian fighter aircraft market, but everybody is also watching to see how aggressively the Chinese will be entering this market," Richard Fisher, an expert with the Washington-based International Assessment and Strategy Center, said.
The tight competition comes as Asian economies move ahead "much more aggressively" to upgrade their air defense capabilities, he said.
"It's not quite right to say an arms race, but there is an arms jog in Asia," Fisher said.
The United States is currently the sole producer of fifth generation fighters - the F-22s and F-35s. Export of F-22s is barred by law while the lower cost F-35s have just started flight testing ahead of deployment around 2012.
Russia and China's fifth generation fighter offerings could well be on the market between 2015 and 2020, a time frame experts say is not very far away in terms of defense planning.
"I don't want to get into the numbers because they were given to me in confidence but the price the Russians are estimating for their fifth generation fighter is substantially less than the Joint Strike Fighter (F-35) and substantially less than F-22," U.S. aviation expert Reuben Johnson told a Washington forum last week on "challenges to the Asian air power balance."
He said the Russian arms industry was grappling with high production costs.
Russian weapon exports to China have also plunged as Beijing became more wary over Moscow's sales of its most advanced weaponry to neighbor India, Johnson said.
"What is really the challenge is we have two very large countries, China and India, whose economies are booming and who are buying lots of hardware and we are looking at a situation down the road where they are going to have very, very sophisticated air forces," he said.
Russia had already teamed up with India to co-develop and co-produce a version of Moscow's fifth generation fighter, but Fisher said that given the Indian preference of diversifying its weapons sources, it was possible New Delhi could purchase a U.S. fifth generation fighter at some point.
The United States is also vying with Russia and others for a 12-billion-dollar contract to sell 126 fourth generation fighter jets to the Indian air force.
The competition from Russia could prod the Americans to lift an export ban on F-22s, eyed by Australia and Japan, top U.S. allies in the region, experts said.
U.S. Defense Secretary Robert Gates hinted during a recent Australian visit that Congress may be asked to reconsider the ban.
"It is imperative that the United States consider selling some version of the F-22 to maintain a strong deterrent posture in Asia," Fisher said.
"I would say categorically that Japan requires a capability of the level of the F-22 in order to sustain a sufficient position to deter China," he said.
Anti-Corruption Law Passed
The cornerstone of President Dmitry Medvedev's anti-corruption legislative package has been passed this week by Parliament. Among harsher punishments and more stringent regulations is a rule that cuts the limit on the price of gifts received by officials from 5,000 rubles to 3,000 rubles.
The law "On Measures Against Corruption" passed the lower chamber of Parliament, the State Duma, last week, and was ratified by the upper chamber, the Federation Council, on Monday. The law amends a series of other laws, including those regulating the police, the prosecution, and the Federal Security Service. The Criminal Procedural Code has also undergone changes that make it easier to bring corrupt judges, deputies and other officials to justice, with special measures outlined against those alleged of taking advantage of their position.
Punishment for corruption and fraud has also become more stringent. The maximum jail term for managers of commercial companies who unlawfully use their position to further their own gain or harm others has been increased from three years to four.
Meanwhile, the status of a number of officials - including judges, parliamentarians, treasury officials and others has been changed. Stricter limitations have been imposed on regulations on who can become a judge, for instance. A potential judge has to be a Russian citizen who has not been convicted of any crimes, is not under investigation, and has not been rehabilitated for crimes committed in the past. He must not have citizenship in a foreign country or be registered as an outpatient with any psychiatric or drug clinic.
Also, stricter rules regulating the gifts officials can receive have been implemented. Now, a gift can cost no more than 3,000 rubles ($103). Before the law was passed, the limit was 5,000 rubles ($172). According Vladimir Pligin, head of the State Duma Committee on Constitutional Legislation and State Building, the best gift will now be a bottle of vodka. "One that costs less than 3,000 rubles," RIA Novosti quoted him as saying.
President Medvedev has taken a tough stance on corruption and what he calls "legal nihilism," making it his top priority upon his inauguration in May.
The law "On Measures Against Corruption" passed the lower chamber of Parliament, the State Duma, last week, and was ratified by the upper chamber, the Federation Council, on Monday. The law amends a series of other laws, including those regulating the police, the prosecution, and the Federal Security Service. The Criminal Procedural Code has also undergone changes that make it easier to bring corrupt judges, deputies and other officials to justice, with special measures outlined against those alleged of taking advantage of their position.
Punishment for corruption and fraud has also become more stringent. The maximum jail term for managers of commercial companies who unlawfully use their position to further their own gain or harm others has been increased from three years to four.
Meanwhile, the status of a number of officials - including judges, parliamentarians, treasury officials and others has been changed. Stricter limitations have been imposed on regulations on who can become a judge, for instance. A potential judge has to be a Russian citizen who has not been convicted of any crimes, is not under investigation, and has not been rehabilitated for crimes committed in the past. He must not have citizenship in a foreign country or be registered as an outpatient with any psychiatric or drug clinic.
Also, stricter rules regulating the gifts officials can receive have been implemented. Now, a gift can cost no more than 3,000 rubles ($103). Before the law was passed, the limit was 5,000 rubles ($172). According Vladimir Pligin, head of the State Duma Committee on Constitutional Legislation and State Building, the best gift will now be a bottle of vodka. "One that costs less than 3,000 rubles," RIA Novosti quoted him as saying.
President Medvedev has taken a tough stance on corruption and what he calls "legal nihilism," making it his top priority upon his inauguration in May.
Russian Prophecies
But the lives of people and the fortune of nations are very different stories. While the fortune of a person is his or her own affair, those of countries, and of the world, are the problems of mankind. Philosophers, astrologers, and fortune-tellers have been giveing advice on these matters through the ages. Yes, people may have different attitudes to prophecies, but regardless of one's opinions about them, one thing is for sure: they are fascinating.
One historical figure that has come to be synonymous with prophecies is Nostradamus, whose name happens to be one of the most frequently searched on the Internet. His "Centuries" are said to have prophesied the burning and devastation of Moscow in 1571, Napoleon's defeat in 1812, the victory of communism in Russia and the subsequent collapse of the Soviet Union.
Recently, Russia pulled off a hat trick: hockey, football and Eurovision. The country was ecstatic and there was jubilation in the air. The press was obsessed about it, and still are. Among all the chaos I read the following comment on the Internet: When the Northern Empire wins on Ice and Grass and its Clown sings his song, Red Clouds will cover the Sky and the Apocalypse will come. This grim prophecy was said to have been one of the Bulgarian prophetess Vanga's predictions, and that made me think about Russia's future. Searching for some evidence to substantiate the claim, I found out the passage was a harmless joke. Still, there are lots of prophecies about Russia that make people sit up and pay attention.
Vanga was born at the turn of the 20th century and died 12 years ago at the age of 84. Her gift of prophesy made her popular, and soon politicians visited her to have their fortunes told.
Among her most shocking predictions is what she had predicted in 1980: In August of 1999 or 2000, Kursk will be covered with water and the whole world will be weeping over it. Twenty years later, the nuclear submarine "Kursk" perished in an accident.
In January 1988 she said: We are witnessing events of paramount significance. Two big leaders shake hands. But we have to wait for a long time before the Eighth one will come forth and sign a final peace agreement on Earth. The first part of the prediction made reference to Gorbachev and Reagan, and the second to the fact that Russia joined the Group of Seven, now the G-8.
In the same way, she predicted some other events of world history. In 1989: The American brethren will fall after being attacked by the steel bird. The wolves will howl in the bush, and innocent blood will flow. It happened as predicted: The "Twin" towers of the World Trade Center in New York collapsed apparently because two commercial planes - "steel birds" - were flown into them. She predicted lots of things - the Chernobyl disaster, Boris Yeltsin's election win and so on. It is even said that Adolf Hitler left a visit with her looking very upset.
One of the popular predictions about Russia is that when the permafrost thaws and the floods come, nothing will survive on Earth but Russia. The climate will change and Russia will occupy the best inhabitable zone. Plus, Russia is predicted to herald in world peace and flourish in the face of good fortune.
Vanga also once said: "Everything melts away like ice yet the glory of Vladimir, the glory of Russia are the only things that will remain. Russia will not only survive, it will dominate the world."
Russia is on a roll with assorted victories. Whether we can believe that Russia will initiate world peace, however, remains to be seen.
One historical figure that has come to be synonymous with prophecies is Nostradamus, whose name happens to be one of the most frequently searched on the Internet. His "Centuries" are said to have prophesied the burning and devastation of Moscow in 1571, Napoleon's defeat in 1812, the victory of communism in Russia and the subsequent collapse of the Soviet Union.
Recently, Russia pulled off a hat trick: hockey, football and Eurovision. The country was ecstatic and there was jubilation in the air. The press was obsessed about it, and still are. Among all the chaos I read the following comment on the Internet: When the Northern Empire wins on Ice and Grass and its Clown sings his song, Red Clouds will cover the Sky and the Apocalypse will come. This grim prophecy was said to have been one of the Bulgarian prophetess Vanga's predictions, and that made me think about Russia's future. Searching for some evidence to substantiate the claim, I found out the passage was a harmless joke. Still, there are lots of prophecies about Russia that make people sit up and pay attention.
Vanga was born at the turn of the 20th century and died 12 years ago at the age of 84. Her gift of prophesy made her popular, and soon politicians visited her to have their fortunes told.
Among her most shocking predictions is what she had predicted in 1980: In August of 1999 or 2000, Kursk will be covered with water and the whole world will be weeping over it. Twenty years later, the nuclear submarine "Kursk" perished in an accident.
In January 1988 she said: We are witnessing events of paramount significance. Two big leaders shake hands. But we have to wait for a long time before the Eighth one will come forth and sign a final peace agreement on Earth. The first part of the prediction made reference to Gorbachev and Reagan, and the second to the fact that Russia joined the Group of Seven, now the G-8.
In the same way, she predicted some other events of world history. In 1989: The American brethren will fall after being attacked by the steel bird. The wolves will howl in the bush, and innocent blood will flow. It happened as predicted: The "Twin" towers of the World Trade Center in New York collapsed apparently because two commercial planes - "steel birds" - were flown into them. She predicted lots of things - the Chernobyl disaster, Boris Yeltsin's election win and so on. It is even said that Adolf Hitler left a visit with her looking very upset.
One of the popular predictions about Russia is that when the permafrost thaws and the floods come, nothing will survive on Earth but Russia. The climate will change and Russia will occupy the best inhabitable zone. Plus, Russia is predicted to herald in world peace and flourish in the face of good fortune.
Vanga also once said: "Everything melts away like ice yet the glory of Vladimir, the glory of Russia are the only things that will remain. Russia will not only survive, it will dominate the world."
Russia is on a roll with assorted victories. Whether we can believe that Russia will initiate world peace, however, remains to be seen.
Clock Ticks Down To New Russia-Ukraine Gas Conflict
MOSCOW, Russia -- Time is running out for Russia and Ukraine to reach a last minute deal by midnight at New Year to prevent a Russian cut of gas deliveries to its neighbour and a possible bitter diplomatic conflict.
Instead of awaiting the traditional champagne toasts for New Year, Russian and Ukrainian gas executives have cancelled their holiday plans as the sides try to strike a deal over Kiev's two billion dollars of unpaid gas debts.Russian energy giant Gazprom has warned it will cut off supplies to Ukraine if the debt is not settled, saying that a new contract needs to be signed by January 1 and no deal can be inked without the money being paid.Gazprom's board of directors, which is chaired by Russian Deputy Prime Minister Viktor Zubkov, is to hold an extraordinary meeting on Monday to discuss the situation."I think it's 50-50," Gazprom spokesman Sergei Kupriyanov said in an radio interview Saturday when asked if Russia would cut gas deliveries or if the two sides would clinch a last minute deal.A cut in deliveries could even hit west European consumers, who receive Russian gas that transits across Ukraine and were affected by a similar conflict in January 2006.Such a move would intensify tensions between Moscow and Ukraine's pro-Western government already inflamed by Ukrainian support for Georgia in its August war with Russia.Russia found the sight of Ukrainian President Viktor Yushchenko visiting Tbilisi to give his support during the war hard to swallow and the gas standoff is the consequence, said Russian analyst Alexei Malashenko."Putting pressure on Ukraine over gas has become an obsession of Russian politicians," said Malashenko of the Carnegie Centre in Moscow.According to Kupriyanov, the Ukrainian side has already made clear it cannot pay the debts comprising 805 million dollars for November, 862 million dollars for December and 450 million dollars in penalties for late payment.He said the two sides would use the last days to find a non-monetary solution to the conflict, possibly involving the money that Russia pays for the transit of gas across Ukraine."I hope that in the remaining days we will succeed in doing this," said Kupriyanov.In a stark warning, Russian President Dmitry Medvedev told Ukraine's government last week to pay up to the "last ruble" or face gas cuts or even sanctions against its wider economy."If Ukraine does not pay we will use a whole arsenal of possibilities and it is completely clear that there can be no illusions there," Medvedev said in an interview with Russian television."We cannot carry on like this. They should just pay up."The negotiations are further complicated by Gazprom's desire to raise prices for Ukraine closer to those paid by western European customers.Ukraine currently pays Russia 179.5 dollars for 1,000 cubic metres of gas but Gazprom has warned that price could rise to 400 dollars for 1,000 cubic metres from next year.Gazprom has vowed to fulfil its obligations to Europe but has also warned it cannot rule out disruptions to west European supplies if Ukraine siphons off transit gas during a crisis."Russia is carrying out a psychological war to force Ukraine to sign the contract under its conditions," said Ukrainian political analyst Volodymyr Fesenko."Gazprom could make European consumers suffer from the crisis so that Europe puts pressure on Ukraine," he added.Ukraine, which has tense relations with Moscow, is expected by analysts to plunge into recession next year as a result of the economic crisis and suffers from political turmoil amid a feud between its president and prime minister.
Instead of awaiting the traditional champagne toasts for New Year, Russian and Ukrainian gas executives have cancelled their holiday plans as the sides try to strike a deal over Kiev's two billion dollars of unpaid gas debts.Russian energy giant Gazprom has warned it will cut off supplies to Ukraine if the debt is not settled, saying that a new contract needs to be signed by January 1 and no deal can be inked without the money being paid.Gazprom's board of directors, which is chaired by Russian Deputy Prime Minister Viktor Zubkov, is to hold an extraordinary meeting on Monday to discuss the situation."I think it's 50-50," Gazprom spokesman Sergei Kupriyanov said in an radio interview Saturday when asked if Russia would cut gas deliveries or if the two sides would clinch a last minute deal.A cut in deliveries could even hit west European consumers, who receive Russian gas that transits across Ukraine and were affected by a similar conflict in January 2006.Such a move would intensify tensions between Moscow and Ukraine's pro-Western government already inflamed by Ukrainian support for Georgia in its August war with Russia.Russia found the sight of Ukrainian President Viktor Yushchenko visiting Tbilisi to give his support during the war hard to swallow and the gas standoff is the consequence, said Russian analyst Alexei Malashenko."Putting pressure on Ukraine over gas has become an obsession of Russian politicians," said Malashenko of the Carnegie Centre in Moscow.According to Kupriyanov, the Ukrainian side has already made clear it cannot pay the debts comprising 805 million dollars for November, 862 million dollars for December and 450 million dollars in penalties for late payment.He said the two sides would use the last days to find a non-monetary solution to the conflict, possibly involving the money that Russia pays for the transit of gas across Ukraine."I hope that in the remaining days we will succeed in doing this," said Kupriyanov.In a stark warning, Russian President Dmitry Medvedev told Ukraine's government last week to pay up to the "last ruble" or face gas cuts or even sanctions against its wider economy."If Ukraine does not pay we will use a whole arsenal of possibilities and it is completely clear that there can be no illusions there," Medvedev said in an interview with Russian television."We cannot carry on like this. They should just pay up."The negotiations are further complicated by Gazprom's desire to raise prices for Ukraine closer to those paid by western European customers.Ukraine currently pays Russia 179.5 dollars for 1,000 cubic metres of gas but Gazprom has warned that price could rise to 400 dollars for 1,000 cubic metres from next year.Gazprom has vowed to fulfil its obligations to Europe but has also warned it cannot rule out disruptions to west European supplies if Ukraine siphons off transit gas during a crisis."Russia is carrying out a psychological war to force Ukraine to sign the contract under its conditions," said Ukrainian political analyst Volodymyr Fesenko."Gazprom could make European consumers suffer from the crisis so that Europe puts pressure on Ukraine," he added.Ukraine, which has tense relations with Moscow, is expected by analysts to plunge into recession next year as a result of the economic crisis and suffers from political turmoil amid a feud between its president and prime minister.
Ukraine Charter
WASHINGTON, DC -- The United States and Ukraine have signed a charter on strategic partnership and security. "We have long believed," said U.S. Secretary of State Condoleezza Rice, "that Ukraine's independence, its democracy, is essential to a Europe whole and free and at peace."
To that end, the charter outlines enhanced cooperation in the areas of defense, security, economics and trade, energy security, democracy, and cultural exchanges.Ukraine has shown a commitment to international security and peacekeeping. It is the only non-NATO country participating in all NATO operations. The NATO summit declaration in Bucharest affirmed that Ukraine will become a member of NATO when it meets certain requirements."The United States," said Secretary Rice, "supports Ukraine's integration into the Euro-Atlantic structures." The Charter expresses the United States' continued commitment to help Ukraine meet the requirements for NATO membership. The United States plans to help Ukraine increase its interoperability with NATO forces, including via training and equipment for Ukrainian armed forces.The U.S. and Ukraine intend to expand economic growth through reform and liberalization, developing a business climate that supports trade and investment. It is also critical to improve market access for goods and services. The U.S. will help Ukraine in efforts to protect intellectual property and investor rights.Recognizing the importance of an efficient energy sector, the U.S. plans to work with Ukraine to rehabilitate and modernize the capacity of Ukraine's gas transit infrastructure and secure Ukraine's sources of nuclear fuel.Under the Charter on Strategic Partnership, the U.S. plans to help Ukraine increase the professionalism, transparency, and independence of its judiciary. Both countries will address common criminal threats including terrorism, organized crime, and trafficking in persons.In an effort to further promote democratic values, the United States and Ukraine intend to encourage cultural and social exchanges through initiatives including the Fulbright program and Future Leaders Exchange Program.The U.S.-Ukraine Charter on Strategic Partnership lays the foundation for Ukraine's long-term democratic development and security needs.
To that end, the charter outlines enhanced cooperation in the areas of defense, security, economics and trade, energy security, democracy, and cultural exchanges.Ukraine has shown a commitment to international security and peacekeeping. It is the only non-NATO country participating in all NATO operations. The NATO summit declaration in Bucharest affirmed that Ukraine will become a member of NATO when it meets certain requirements."The United States," said Secretary Rice, "supports Ukraine's integration into the Euro-Atlantic structures." The Charter expresses the United States' continued commitment to help Ukraine meet the requirements for NATO membership. The United States plans to help Ukraine increase its interoperability with NATO forces, including via training and equipment for Ukrainian armed forces.The U.S. and Ukraine intend to expand economic growth through reform and liberalization, developing a business climate that supports trade and investment. It is also critical to improve market access for goods and services. The U.S. will help Ukraine in efforts to protect intellectual property and investor rights.Recognizing the importance of an efficient energy sector, the U.S. plans to work with Ukraine to rehabilitate and modernize the capacity of Ukraine's gas transit infrastructure and secure Ukraine's sources of nuclear fuel.Under the Charter on Strategic Partnership, the U.S. plans to help Ukraine increase the professionalism, transparency, and independence of its judiciary. Both countries will address common criminal threats including terrorism, organized crime, and trafficking in persons.In an effort to further promote democratic values, the United States and Ukraine intend to encourage cultural and social exchanges through initiatives including the Fulbright program and Future Leaders Exchange Program.The U.S.-Ukraine Charter on Strategic Partnership lays the foundation for Ukraine's long-term democratic development and security needs.
Gazprom Says Ukraine Has Non-Cash Options To Pay
MOSCOW, Russia -- Crisis-stricken Ukraine may count its $2 billion debt for Russian gas deliveries against future fees for Russian gas transit to European customers, a Gazprom spokesman said on Saturday.Russia and Ukraine are locked in a gas dispute, the fourth in four years, and Kupriyanov said there was a 50 percent chance Moscow could cut supplies to Kiev from next year if Ukraine does not pay the debt.“We are looking for ways to do it (avoid a supply cut), including prepayment for transit,” Gazprom spokesman Sergei Kupriyanov told Echo Moskvy radio station. “I hope we will be able to do it (negotiate a settlement) in the remaining days.”Ukraine previously declined to accept the proposal. Ukraine currently pays $1.7 to transit 1,000 cubic metres for 100 kilometres.Kupriyanov said another option for Ukraine to pay its debt would be to hand back gas it had stockpiled in underground gas storages to help it live through the winter in the event Gazprom turns off the gas taps.Ukraine’s state firm Naftogaz says it has 17 billion cubic metres in storage, 22 percent of Ukraine’s annual consumption.Ukraine has been forced to accept International Monetary Fund assistance as the global financial crisis bites.Kupriyanov’s suggestion marked some softening of the line expressed by President Dmitry Medvedev, who chaired Gazprom’s board during previous disputes. Medvedev said Ukraine should pay the debt “to the last rouble” and threatened it with sanctions.European countries are watching the dispute nervously. A previous dispute in 2006 briefly disrupted Russian gas supplies to the entire continent in the middle of winter, when Ukraine suspended transit to Europe, sending up spot gas prices.Gazprom’s Chief Executive Officer Alexei Miller wrote a letter to the firm’s European customers warning them of possible supply disruptions because of the debt row.Kupriyanov declined to reveal any details of the negotiations or say how much Gazprom wants Ukraine to pay for gas from next year but said the price will be higher than $179.5 per 1,000 cubic metres Ukraine is paying now.Kupriyanov said Gazprom is ready to dump an intermediary firm RosUkrEnergo and move over to direct supplies once the debt is fully paid.Moscow and Kiev are trading accusations daily in the latest gas clash. Both countries feel the dire effects of the global financial crisis on their markets and economies and continue to argue over the size of the debt and payment deadlines.Kupriyanov said Gazprom, which employs 400,000 people plans no major job cuts next year because of the crisis and added that its $32.5 billion investment will help create new jobs.
Top 10 Uncovered Bribes By Law Enforcement
KIEV, Ukraine -- In 2008, more Ukrainian officials than ever got their fingers caught in the cookie jar. This year went down as a record-breaking year in the annals of bribes uncovered by law enforcement.
Given Ukraine’s reputation for corruption, one has to wonder how many bribes escaped the short arm of the law here. Some 1,500 public servants took bribes in 2008, totaling Hr 91.1 million, the Ministry of Interior Affairs announced on Dec. 19, almost triple last year’s totals. These are the top 10 bribes we found, mostly in the public service and real estate sectors:(1) - Law enforcement officials said they uncovered the all-time whopper – a $42 million bribe. The corruption bust came earlier in December when Mykola Didenko, a district council chairman in the Kyiv Oblast city of Brovary, along with two subordinates, were allegedly caught taking Hr 11 million “up-front” money from foreign investors wishing to build cottages on two plots of land totaling 76 hectares in a deal worth $42 million. At a news conference, Interior Affairs Minister Yuriy Lutsenko said that people along “[President Victor] Yushchenko’s vertical chain of command ‘covered’ for Didenko.” Yushchenko dismissed the Brovary official in February 2008 amid a land scandal, which critics said involved hundreds of hectares of land distribution worth $2 billion. Nevertheless, Didenko was reinstated as Brovary district chair in March 2008. News reports have speculated that Victor Baloha, head of the presidential secretariat, stands behind Didenko.(2) - The second on the list allegedly took place outside of Alushta in Crimea, where a township council member, Mykola Konev, elicited a $5.2 million bribe in return for leasing 17 hectares of land in the first half of 2008. “The overall sum of bribes is increasing dramatically,” said Leonid Skalozub, head of the economic crime unit of the Ministry of Interior Affairs, during a news conference in June.(3) - The next million-dollar land deal labeled as corrupt came in Kyiv Oblast’s Novi Petrivtsiv where Oleksiy Yankovskiy, the village council chair, was suspected of demanding $1.3 million for allocating land.(4) - More land deals made the news when Dnipropetrovsk City Council Chair Ivan Kulichenko and his aide allegedly were caught with $600,000 payoff in a land deal.(5) - Many bribes ranged from $20,000 to $200,000. For example, a district council chair in Cherkasy Oblast was nabbed for accepting $200,000 in exchange for doling out 2.6 hectares for development.(6) - A village council chair in Bakhchysarai district of Crimea was nabbed for accepting a $140,000 bribe in order to allocate two hectares of land in a recreational zone.(7) - The Security Service of Ukraine detained a Ministry of Interior police officer early in December while taking a $120,000 bribe for unspecified reasons. Subsequently, the Pechersk District Court of Kyiv dropped the case but prosecutors have appealed the case on grounds that the ruling was unlawful.(8) - In another case that further undermined respect for the country’s corrupt judicial system came when the former Lviv Appellate Court judge, Ihor Zvarych, was allegedly caught red-handed accepting a $100,000 bribe in the ex-governor's office early in December 2008. A search of his house later found large sums of hryvnia and more than $1 million in cash, which Zvarych explained as a "hourse warming." Zvarych was later released on bail and went missing on Dec. 12.(9) - Fraud is common in the banking system, especially in credit unions where loans were issued by employees to people who never repaid the money they borrowed. This particular incident is exemplary: A young loan officer issued nine loans ranging from Hr 20 to Hr 100,000 and received more than $20,000 for her “services.”(10) - To further diversify the scope of bribes, the director of the Department of Spirits, Alcoholic Drinks and Tobacco Goods at the State Tax Service was detained in August for taking $20,000 in return for issuing a license for the sale of alcoholic beverages to a private entrepreneur.
Given Ukraine’s reputation for corruption, one has to wonder how many bribes escaped the short arm of the law here. Some 1,500 public servants took bribes in 2008, totaling Hr 91.1 million, the Ministry of Interior Affairs announced on Dec. 19, almost triple last year’s totals. These are the top 10 bribes we found, mostly in the public service and real estate sectors:(1) - Law enforcement officials said they uncovered the all-time whopper – a $42 million bribe. The corruption bust came earlier in December when Mykola Didenko, a district council chairman in the Kyiv Oblast city of Brovary, along with two subordinates, were allegedly caught taking Hr 11 million “up-front” money from foreign investors wishing to build cottages on two plots of land totaling 76 hectares in a deal worth $42 million. At a news conference, Interior Affairs Minister Yuriy Lutsenko said that people along “[President Victor] Yushchenko’s vertical chain of command ‘covered’ for Didenko.” Yushchenko dismissed the Brovary official in February 2008 amid a land scandal, which critics said involved hundreds of hectares of land distribution worth $2 billion. Nevertheless, Didenko was reinstated as Brovary district chair in March 2008. News reports have speculated that Victor Baloha, head of the presidential secretariat, stands behind Didenko.(2) - The second on the list allegedly took place outside of Alushta in Crimea, where a township council member, Mykola Konev, elicited a $5.2 million bribe in return for leasing 17 hectares of land in the first half of 2008. “The overall sum of bribes is increasing dramatically,” said Leonid Skalozub, head of the economic crime unit of the Ministry of Interior Affairs, during a news conference in June.(3) - The next million-dollar land deal labeled as corrupt came in Kyiv Oblast’s Novi Petrivtsiv where Oleksiy Yankovskiy, the village council chair, was suspected of demanding $1.3 million for allocating land.(4) - More land deals made the news when Dnipropetrovsk City Council Chair Ivan Kulichenko and his aide allegedly were caught with $600,000 payoff in a land deal.(5) - Many bribes ranged from $20,000 to $200,000. For example, a district council chair in Cherkasy Oblast was nabbed for accepting $200,000 in exchange for doling out 2.6 hectares for development.(6) - A village council chair in Bakhchysarai district of Crimea was nabbed for accepting a $140,000 bribe in order to allocate two hectares of land in a recreational zone.(7) - The Security Service of Ukraine detained a Ministry of Interior police officer early in December while taking a $120,000 bribe for unspecified reasons. Subsequently, the Pechersk District Court of Kyiv dropped the case but prosecutors have appealed the case on grounds that the ruling was unlawful.(8) - In another case that further undermined respect for the country’s corrupt judicial system came when the former Lviv Appellate Court judge, Ihor Zvarych, was allegedly caught red-handed accepting a $100,000 bribe in the ex-governor's office early in December 2008. A search of his house later found large sums of hryvnia and more than $1 million in cash, which Zvarych explained as a "hourse warming." Zvarych was later released on bail and went missing on Dec. 12.(9) - Fraud is common in the banking system, especially in credit unions where loans were issued by employees to people who never repaid the money they borrowed. This particular incident is exemplary: A young loan officer issued nine loans ranging from Hr 20 to Hr 100,000 and received more than $20,000 for her “services.”(10) - To further diversify the scope of bribes, the director of the Department of Spirits, Alcoholic Drinks and Tobacco Goods at the State Tax Service was detained in August for taking $20,000 in return for issuing a license for the sale of alcoholic beverages to a private entrepreneur.
Saturday 27 December 2008
Medvedev Threatens Sanctions Against Ukraine
MOSCOW, Russia -- Russian President Dimitri Medvedev says Ukraine will face retaliatory sanctions unless it pays up every ruble it owes energy giant Gazprom.
Speaking in a televised end-of-the-year interview, Medvedev didn't specify what those sanctions might be.His statement came after Gazprom threatened to cut off gas deliveries to Ukraine on January 1, unless a new contract for 2009 is signed by then.Gazprom and Ukraine's state energy firm Naftogaz have failed to resolve a dispute over unpaid debts.Gazprom says Naftogaz owes it almost two billion euros.A bilateral dispute almost four years ago led to a brief disruption of gas supplies to several European Union countries.This time Gazprom has pledged to ensure that there is no disruption to the flow of gas to EU customers.
Speaking in a televised end-of-the-year interview, Medvedev didn't specify what those sanctions might be.His statement came after Gazprom threatened to cut off gas deliveries to Ukraine on January 1, unless a new contract for 2009 is signed by then.Gazprom and Ukraine's state energy firm Naftogaz have failed to resolve a dispute over unpaid debts.Gazprom says Naftogaz owes it almost two billion euros.A bilateral dispute almost four years ago led to a brief disruption of gas supplies to several European Union countries.This time Gazprom has pledged to ensure that there is no disruption to the flow of gas to EU customers.
China's Hainan Airlines Announces New Route To Ukraine
KIEV, Ukraine -- China's Hainan Airlines announced here Wednesday that it would launch a new route from Beijing to Ukraine's capital of Kiev aZhang Ning, the company's representative in Kiev, told a news briefing that passengers would be able to take a flight between the two cities on Tuesday and Saturday since Feb. 10, 2009."Flight frequency would be increased later," he said.Zhou Li, the Chinese ambassador to Ukraine, said that the opening of the new route will play a positive role in deepening mutual understanding and trust between the two countries and promote bilateral economic cooperation.The airline would use Airbus A330-200 aircraft, which has 222 seats with 36 business-class seats.t the beginning of next year.
Apartment Explosion Kills 19 In Ukraine
YEVPATORIA, Ukraine -- Ukrainian authorities say 19 people, including two children, are dead and at least 24 are missing after an explosion at an apartment building in the Crimean resort town of Yevpatoria.
Rescue teams are digging through rubble Thursday to find survivors from the blast that tore through the five-story building late Wednesday.They say 21 people have been rescued so far.Ukraine's Prime Minister Yulia Tymoshenko and President Viktor Yushchenko headed to Yevpatoria Thursday to meet with rescue officials.Russian President Dmitri Medvedev has offered to send naval personnel from Russia's Black Sea fleet to help with the search efforts.Authorities are working to establish the cause of the explosion. Preliminary reports say it could have been caused by oxygen or acetylene cylinders that may have been stored in the building's basement.Gas explosions are common in Ukrainian apartment buildings, especially during the winter when residents turn up the heat.
Rescue teams are digging through rubble Thursday to find survivors from the blast that tore through the five-story building late Wednesday.They say 21 people have been rescued so far.Ukraine's Prime Minister Yulia Tymoshenko and President Viktor Yushchenko headed to Yevpatoria Thursday to meet with rescue officials.Russian President Dmitri Medvedev has offered to send naval personnel from Russia's Black Sea fleet to help with the search efforts.Authorities are working to establish the cause of the explosion. Preliminary reports say it could have been caused by oxygen or acetylene cylinders that may have been stored in the building's basement.Gas explosions are common in Ukrainian apartment buildings, especially during the winter when residents turn up the heat.
Need A Ride? President Gives Archrival A Lift
SIMFEROPOL, Ukraine -- Feuding rivals President Viktor Yushchenko and Prime Minister Yulia Tymoshenko of Ukraine put their differences aside on Thursday to share a car to visit the scene of a deadly explosion.
Both leaders, who have quarrelled incessantly over the last few weeks, travelled to the southern region of Crimea to visit the scene of the blast at an apartment block that killed 27 people in the resort town of Yevpatoria.Tymoshenko arrived in Crimea before Yushchenko but then decided to wait for the president to visit the scene of the incident together.They then shared the same car to Yevpatoria before going back to Crimea's main airport in a vehicle personally driven by the president and leaving on the same plane, an AFP correspondent on the scene reported.The pair were accompanied by national security chief Raisa Bogatyriova, a Yushchenko confidant.Simferopol airport is 70 kilometres east of Yevpatoria, so the pair would have had ample time to either clear the air or sit in silent tension.Yushchenko and Tymoshenko were allies in the Orange Revolution of 2004 that swept them to power, but they have fallen out spectacularly in recent months, exchanging repeated accusations over Ukraine's economic crisis.It remains to be seen whether their car-sharing heralds a thaw in their relationship.Tymoshenko had on Wednesday accused Yushchenko of personally provoking the plunge of Ukraine's currency to enrich himself and weaken her government.Yushchenko then did not mince his words in biting back: "She's just an adventurer in politics, who is going to drown us all because she only needs one thing: unlimited power."
Both leaders, who have quarrelled incessantly over the last few weeks, travelled to the southern region of Crimea to visit the scene of the blast at an apartment block that killed 27 people in the resort town of Yevpatoria.Tymoshenko arrived in Crimea before Yushchenko but then decided to wait for the president to visit the scene of the incident together.They then shared the same car to Yevpatoria before going back to Crimea's main airport in a vehicle personally driven by the president and leaving on the same plane, an AFP correspondent on the scene reported.The pair were accompanied by national security chief Raisa Bogatyriova, a Yushchenko confidant.Simferopol airport is 70 kilometres east of Yevpatoria, so the pair would have had ample time to either clear the air or sit in silent tension.Yushchenko and Tymoshenko were allies in the Orange Revolution of 2004 that swept them to power, but they have fallen out spectacularly in recent months, exchanging repeated accusations over Ukraine's economic crisis.It remains to be seen whether their car-sharing heralds a thaw in their relationship.Tymoshenko had on Wednesday accused Yushchenko of personally provoking the plunge of Ukraine's currency to enrich himself and weaken her government.Yushchenko then did not mince his words in biting back: "She's just an adventurer in politics, who is going to drown us all because she only needs one thing: unlimited power."
Ukraine's Parliament Urges Top Banker's Dismissal
KIEV, Ukraine -- The Ukrainian parliament on Friday demanded the central bank chief be dismissed over the collapse of the national currency, accusing him of corruption and incompetence.
National Bank chief Volodymyr Stelmakh has denied having any hand in the exchange market speculations that caused the hryvna to lose half its value against the dollar last week.President Viktor Yushchenko is expected to ignore the nonbinding motion for Stelmakh to be fired. The motion was spearheaded by Yushchenko's rival, Prime Minister Yulia Tymoshenko, who has accused the central banker of conspiring with banks over the currency speculations and pocketing profits.Yushchenko has said the country needs the expertise of Stelmakh, his longtime associate, to weather the current financial crisis. The currency devaluation coincided with a drastic fall in steel exports, leading to a foreign currency squeeze.In the meantime, the Ukrainian currency has recovered some of last week's losses, which took it to 9.6 to the U.S. dollar from its September rate of 4.9 to the dollar.At the close of trading Friday, the hryvna was listed at 7.6 to the dollar, thanks to the National Bank's efforts to prop up the rate by selling hard currency.Tymoshenko has claimed Yushchenko was involved in the alleged corruption schemes.The president has dismissed the allegation, and his top aide this week accused Tymoshenko of seeking to take control of the National Bank for personal gains.Ukraine is sinking into a deep recession, with the economy expected to shrink up to 10 percent early next year, according to Yushchenko's estimates.Industrial output has fallen nearly 30 percent, as global demand for steel, the heart of the economy, halved.
National Bank chief Volodymyr Stelmakh has denied having any hand in the exchange market speculations that caused the hryvna to lose half its value against the dollar last week.President Viktor Yushchenko is expected to ignore the nonbinding motion for Stelmakh to be fired. The motion was spearheaded by Yushchenko's rival, Prime Minister Yulia Tymoshenko, who has accused the central banker of conspiring with banks over the currency speculations and pocketing profits.Yushchenko has said the country needs the expertise of Stelmakh, his longtime associate, to weather the current financial crisis. The currency devaluation coincided with a drastic fall in steel exports, leading to a foreign currency squeeze.In the meantime, the Ukrainian currency has recovered some of last week's losses, which took it to 9.6 to the U.S. dollar from its September rate of 4.9 to the dollar.At the close of trading Friday, the hryvna was listed at 7.6 to the dollar, thanks to the National Bank's efforts to prop up the rate by selling hard currency.Tymoshenko has claimed Yushchenko was involved in the alleged corruption schemes.The president has dismissed the allegation, and his top aide this week accused Tymoshenko of seeking to take control of the National Bank for personal gains.Ukraine is sinking into a deep recession, with the economy expected to shrink up to 10 percent early next year, according to Yushchenko's estimates.Industrial output has fallen nearly 30 percent, as global demand for steel, the heart of the economy, halved.
Top Events Of 2008
KIEV, Ukraine -- In 2008, yellow currency boards agitated Ukrainians the way waving flags bother bulls. Fluctuating rates flattened many champagne drinks this holiday season.
To bring the fizz back, the Kyiv Post presents the Top 10 “feel-good” stories of the year. Maybe 2009 will bring calm and patience. After all, most humans are luckier than bulls, who only see the world in two colors: black and white.1. Vitaliy and Volodymyr (Wladimir) Klitschko“They feel good, we knew that they would” is the Post’s slight remake of James Brown’s signature song “I feel good.” The Klitschko brothers’ boxing victories inspired Ukrainians to be proud of their country, if not to keep fit themselves.Vitaliy Klitschko, also known as Dr. Iron Fist, returned to the ring after a three-year break and quickly reclaimed his World Boxing Council heavyweight champion title.He beat the much younger Samuel Peter, nicknamed the “Nigerian Nightmare,” in the eighth round in October.Volodymyr, his brother, currently holds the International Boxing Federation, World Boxing Organization and International Boxing Organization world heavyweight titles. Beating Russian Sultan Ibragimov in February, he made Ukrainians roar in his honor. Held in New York, the bout had a special meaning for immigrants from the Soviet Union.The victory overwhelmed Ukrainians in the Big Apple who still remember traditional rivalries among ex-Soviet republics.2. Dasha AstafievaStaying with James Brown’s immortal “I feel good,” Dasha Astafieva feels nice, like sugar and spice. Ask Hugh Hefner for details. The man about town in his 82 years of age undressed her for the American version of his world-famous Playboy Magazine.He also announced the 23-year-old Ukrainian model and pop singer as January 2009’s Playmate of the Month. If that was not enough, she is also Playboy’s 55th Anniversary Playmate.To cause more scandal, Astafieva pulled off her underwear in front of the cameras on the red carpet before the ceremony. Despite some ranking it as bad publicity for Ukraine, she put a smile on many faces around the world.3. Ani LorakUkrainian pop singer Ani Lorak did not wear much either at the 2008 Eurovision Song Contest. Hardly anyone, however, can dispute her strong vocals and stage presence. She took second place with the song “Shady Lady,” defeated by Dima Bilan from Russia.Repeatedly named the most beautiful woman in Ukraine and the best singer by various magazines and music awards, she got engaged to a Turkish man this year.4. OlympicsAgainst all odds, Ukraine’s Olympic team finished 10th in the total medal count of 81 countries at the Summer Olympics in Beijing.Neither aging Soviet facilities, nor lack of financing could stop Ukraine from winning 27 medals. The team bested their Athens performance by four medals. Ukraine’s strongest side was in archery, boxing, athletics, canoe/kayak, shooting and fencing.Ukraine’s Paralympics athletes stood an impressive fourth place this September with an impressive 74 medals among 78 competitors.5. ChessIf chess was a part of the Olympic Games, Ukraine may have scored even better. This brainy game, however, has a separate competition. At the Chess Olympiad in Germany this November, the Ukrainian team edged other nations in combined men’s and women’s results.On the way home with a precious cup, they had a nerve-wracking adventure with damaged luggage. Their prize reached Kyiv broken and missing a few golden parts. Luckily, the trophy was insured. The team received more publicity for their part.6. Anatoliy TymoshchukMany foreigners admit that one of the toughest things about Ukraine is its surnames - Yushchenko, Tymoshenko, or indigestible Chernovetsky. But apparently difficult names do not always mean difficult times.Bavaria football club is interested in Ukrainian national team’s player Anatoliy Tymoshchuk. Korrespondent, the Kyiv Post sister publication, named him the Personality of the Year in the eponymous category to honor his victories.Currently playing for Russian Zenit, he claimed victory in Union of European Football Association’s Cup, UEFA Super Cup and Russian Super Cup.Tymoshchuk is considered one of the most sought-after players in Eastern Europe.7. Olga KurylenkoThis girl had to learn how to fly to land on this list. Olga Kurylenko, the Ukrainian-born top model-turned-actress, shook hands with the British royal family this year and kissed Daniel Craig (aka James Bond) after a world premier of the 22nd Bond film in London.Playing the secret agent’s friend, rather than girlfriend, Kurylenko performed most of her tricks herself. Fearlessly crossing continents and fighting villains in the movie, she confessed that her own life reminded that of her character, Camille.8. National Symphony Orchestra of Ukraine The Symphony Orchestra of Ukraine secured the Grammy Awards nomination in Best Classical Performance category. It is considered the highest music honor, the United States’ record industry equivalent to the Oscars. The ceremony will take place in February. The Ukrainians will present a violin concert they recorded with American soloist Elmar Oliveira. It is their second Grammy nomination.9. Bohdan StupkaHe has the courage of Mongolia’s historic leader Genghis Khan, the wit of Goethe’s Faust and the leadership of hetman Bohdan Khmelnytsky, a historic Kozak leader. Possibly the most famous living actor in Ukraine, Bohdan Stupka conquered Rome this year. At the III Rome International Film Festival, he won Best Actor award for the film “With a Warm Heart.”Stupka played a mentally and physically ill Polish aristocrat in a joint Polish-Ukrainian production. At the same ceremony, Al Pacino collected a lifetime achievement award.10. ViewdleUkraine has a room with the Viewdle – a start-up company with facial recognition technology for online video. At the largest web event in the world, LeWeb, they collected gold for the most successful start-up.Viewdle beat 30 other companies from Europe and a few from the U.S. What started in the ex-military university laboratory in Kyiv has turned into a lifeline technology for major media companies, like Reuters. Thanks to Viewdle, video recognition is no longer an exclusive spy tool.So there, despite a recession, good news still happens.
To bring the fizz back, the Kyiv Post presents the Top 10 “feel-good” stories of the year. Maybe 2009 will bring calm and patience. After all, most humans are luckier than bulls, who only see the world in two colors: black and white.1. Vitaliy and Volodymyr (Wladimir) Klitschko“They feel good, we knew that they would” is the Post’s slight remake of James Brown’s signature song “I feel good.” The Klitschko brothers’ boxing victories inspired Ukrainians to be proud of their country, if not to keep fit themselves.Vitaliy Klitschko, also known as Dr. Iron Fist, returned to the ring after a three-year break and quickly reclaimed his World Boxing Council heavyweight champion title.He beat the much younger Samuel Peter, nicknamed the “Nigerian Nightmare,” in the eighth round in October.Volodymyr, his brother, currently holds the International Boxing Federation, World Boxing Organization and International Boxing Organization world heavyweight titles. Beating Russian Sultan Ibragimov in February, he made Ukrainians roar in his honor. Held in New York, the bout had a special meaning for immigrants from the Soviet Union.The victory overwhelmed Ukrainians in the Big Apple who still remember traditional rivalries among ex-Soviet republics.2. Dasha AstafievaStaying with James Brown’s immortal “I feel good,” Dasha Astafieva feels nice, like sugar and spice. Ask Hugh Hefner for details. The man about town in his 82 years of age undressed her for the American version of his world-famous Playboy Magazine.He also announced the 23-year-old Ukrainian model and pop singer as January 2009’s Playmate of the Month. If that was not enough, she is also Playboy’s 55th Anniversary Playmate.To cause more scandal, Astafieva pulled off her underwear in front of the cameras on the red carpet before the ceremony. Despite some ranking it as bad publicity for Ukraine, she put a smile on many faces around the world.3. Ani LorakUkrainian pop singer Ani Lorak did not wear much either at the 2008 Eurovision Song Contest. Hardly anyone, however, can dispute her strong vocals and stage presence. She took second place with the song “Shady Lady,” defeated by Dima Bilan from Russia.Repeatedly named the most beautiful woman in Ukraine and the best singer by various magazines and music awards, she got engaged to a Turkish man this year.4. OlympicsAgainst all odds, Ukraine’s Olympic team finished 10th in the total medal count of 81 countries at the Summer Olympics in Beijing.Neither aging Soviet facilities, nor lack of financing could stop Ukraine from winning 27 medals. The team bested their Athens performance by four medals. Ukraine’s strongest side was in archery, boxing, athletics, canoe/kayak, shooting and fencing.Ukraine’s Paralympics athletes stood an impressive fourth place this September with an impressive 74 medals among 78 competitors.5. ChessIf chess was a part of the Olympic Games, Ukraine may have scored even better. This brainy game, however, has a separate competition. At the Chess Olympiad in Germany this November, the Ukrainian team edged other nations in combined men’s and women’s results.On the way home with a precious cup, they had a nerve-wracking adventure with damaged luggage. Their prize reached Kyiv broken and missing a few golden parts. Luckily, the trophy was insured. The team received more publicity for their part.6. Anatoliy TymoshchukMany foreigners admit that one of the toughest things about Ukraine is its surnames - Yushchenko, Tymoshenko, or indigestible Chernovetsky. But apparently difficult names do not always mean difficult times.Bavaria football club is interested in Ukrainian national team’s player Anatoliy Tymoshchuk. Korrespondent, the Kyiv Post sister publication, named him the Personality of the Year in the eponymous category to honor his victories.Currently playing for Russian Zenit, he claimed victory in Union of European Football Association’s Cup, UEFA Super Cup and Russian Super Cup.Tymoshchuk is considered one of the most sought-after players in Eastern Europe.7. Olga KurylenkoThis girl had to learn how to fly to land on this list. Olga Kurylenko, the Ukrainian-born top model-turned-actress, shook hands with the British royal family this year and kissed Daniel Craig (aka James Bond) after a world premier of the 22nd Bond film in London.Playing the secret agent’s friend, rather than girlfriend, Kurylenko performed most of her tricks herself. Fearlessly crossing continents and fighting villains in the movie, she confessed that her own life reminded that of her character, Camille.8. National Symphony Orchestra of Ukraine The Symphony Orchestra of Ukraine secured the Grammy Awards nomination in Best Classical Performance category. It is considered the highest music honor, the United States’ record industry equivalent to the Oscars. The ceremony will take place in February. The Ukrainians will present a violin concert they recorded with American soloist Elmar Oliveira. It is their second Grammy nomination.9. Bohdan StupkaHe has the courage of Mongolia’s historic leader Genghis Khan, the wit of Goethe’s Faust and the leadership of hetman Bohdan Khmelnytsky, a historic Kozak leader. Possibly the most famous living actor in Ukraine, Bohdan Stupka conquered Rome this year. At the III Rome International Film Festival, he won Best Actor award for the film “With a Warm Heart.”Stupka played a mentally and physically ill Polish aristocrat in a joint Polish-Ukrainian production. At the same ceremony, Al Pacino collected a lifetime achievement award.10. ViewdleUkraine has a room with the Viewdle – a start-up company with facial recognition technology for online video. At the largest web event in the world, LeWeb, they collected gold for the most successful start-up.Viewdle beat 30 other companies from Europe and a few from the U.S. What started in the ex-military university laboratory in Kyiv has turned into a lifeline technology for major media companies, like Reuters. Thanks to Viewdle, video recognition is no longer an exclusive spy tool.So there, despite a recession, good news still happens.
German Expert Alexander Rahr: Ukraine Might Steal Gas Bound For Europe
MOSCOW, Russia -- There is a risk that, if Kyiv and Moscow do not settle their dispute over Ukraine's debt for natural gas imported from Russia by the end of 2008, Ukraine might start siphoning off gas from the transit pipeline running further to Western Europe, said Alexander Rahr, the Russia/Eurasia program director at the German Council on Foreign Relations (DGAP).
"There are concerns that, while it is unclear who actually controls the transit pipeline in Ukraine, some forces there could illegally siphon off transit gas for domestic needs. Such a risk does exist," Rahr told Interfax."Ukraine should understand what political risks it could face if gas supplies to Europe stop," Rahr said."If it resorts to this, then, in addition to harming Russia, it will also harm itself and its image as a reliable country transiting Russian energy to the West," he said.As regards Europe's attitude toward the gas dispute between Russia and Ukraine, "Europe is very egoistic in this respect," he said."Europe believes that what matters above all is to receive its gas, and it is not inclined to look into the essence of this conflict to see whether Ukraine steals the gas, who is to blame, and why Russia cuts off gas supplies to Ukraine. Europe is demanding what it is entitled to, and if it doesn't get it, it would always begin to blame the one from whom it expects to receive gas, namely Russia, without getting into the situation, for which Ukraine is actually responsible," he said.Some political forces in Ukraine could make use of certain political nuances to destabilize the situation, he said."For the sake of promoting Ukraine's integration into NATO and the European Union, some Ukrainian forces would manipulate this situation, steal transit gas, and accuse Russia of the lack of gas supplies to Europe in order to artificially unleash a conflict," he said."This is how Ukraine is acting these days, and this is how the Baltic states are acting," he said."This is a silent war that Eastern European countries are now waging against Russia," he said.
"There are concerns that, while it is unclear who actually controls the transit pipeline in Ukraine, some forces there could illegally siphon off transit gas for domestic needs. Such a risk does exist," Rahr told Interfax."Ukraine should understand what political risks it could face if gas supplies to Europe stop," Rahr said."If it resorts to this, then, in addition to harming Russia, it will also harm itself and its image as a reliable country transiting Russian energy to the West," he said.As regards Europe's attitude toward the gas dispute between Russia and Ukraine, "Europe is very egoistic in this respect," he said."Europe believes that what matters above all is to receive its gas, and it is not inclined to look into the essence of this conflict to see whether Ukraine steals the gas, who is to blame, and why Russia cuts off gas supplies to Ukraine. Europe is demanding what it is entitled to, and if it doesn't get it, it would always begin to blame the one from whom it expects to receive gas, namely Russia, without getting into the situation, for which Ukraine is actually responsible," he said.Some political forces in Ukraine could make use of certain political nuances to destabilize the situation, he said."For the sake of promoting Ukraine's integration into NATO and the European Union, some Ukrainian forces would manipulate this situation, steal transit gas, and accuse Russia of the lack of gas supplies to Europe in order to artificially unleash a conflict," he said."This is how Ukraine is acting these days, and this is how the Baltic states are acting," he said."This is a silent war that Eastern European countries are now waging against Russia," he said.
Friday 26 December 2008
27 dead after Ukrainian apartment blast
The final death toll from a Christmas Eve explosion in a five-story apartment building in southern Ukraine has increased to 27 people, including three children, Ukrainian officials said Friday.Twenty-one people were rescued from the remains of the building, located in the Black Sea resort town of Yevpatoria.
Rescue workers were still combing through the site Friday, but are expected to finish their work soon, according to Ukraine's Emergency Situations Ministry.
Government officials said oxygen canisters stored in the basement of the building are the most probable cause of the blasts, which reduced the apartment complex to rubble.
Television footage showed rescuers trying to free people buried underneath fallen debris, while others scrabbled through wires, construction rods and boulders.
"As I was walking by, I heard a bang, and then I saw this building crumble," one eyewitness was quoted by Reuters.com as saying.
Another, who lived opposite the apartment block, told the news agency: "We heard a terrible bang. We though our balcony crashed because of the way the windows vibrated. But when I went onto the balcony I saw smoke from the other side."
Meanwhile, Ukrainian President Viktor Yushenko and Prime Minister Yulia Tymoshenko set aside their feuding to visit the town together. According to Reuters.com, Yushchenko declared Friday a national day of mourning, while Tymoshenko promised families of the dead compensation and said they would be rehoused by the end of the year.
Rescue workers were still combing through the site Friday, but are expected to finish their work soon, according to Ukraine's Emergency Situations Ministry.
Government officials said oxygen canisters stored in the basement of the building are the most probable cause of the blasts, which reduced the apartment complex to rubble.
Television footage showed rescuers trying to free people buried underneath fallen debris, while others scrabbled through wires, construction rods and boulders.
"As I was walking by, I heard a bang, and then I saw this building crumble," one eyewitness was quoted by Reuters.com as saying.
Another, who lived opposite the apartment block, told the news agency: "We heard a terrible bang. We though our balcony crashed because of the way the windows vibrated. But when I went onto the balcony I saw smoke from the other side."
Meanwhile, Ukrainian President Viktor Yushenko and Prime Minister Yulia Tymoshenko set aside their feuding to visit the town together. According to Reuters.com, Yushchenko declared Friday a national day of mourning, while Tymoshenko promised families of the dead compensation and said they would be rehoused by the end of the year.
'Tis The Season To Blame Ukraine
MOSCOW, Russia -- Gazprom tries to rally Russian workers' support for its case, saying Ukrainian gas debts could hurt the Russian economy and employment.
Russia's spat with Ukraine over unpaid gas bills is widening; Moscow is now portraying its own citizens as victims of the disagreement.Russian state-run energy giant Gazprom said Tuesday that the $2.0 billion debt that Ukraine still owed it was hurting the Russian economy. "Since the majority of the goods imported from Ukraine are also made in Russia, non-payments for gas damage those sectors where Ukrainian goods compete on Russia's domestic markets," Gazprom spokesman Sergei Kupriyanov said. "This cannot but affect the industries and the people who work in them."Gazprom had warned Monday that its European customers could face a disruption of gas supply due if its dispute with Ukraine led the Kremlin to stop the supply of gas to the former Soviet satellite. Russia provides about a quarter of Europe's gas, and 80.0% of its exports transit through Ukraine.Now Gazprom is highlighting that Russia's 6.6% unemployment could rise further, and Kupriyanov on Tuesday listed potentially vulnerable industrial cities and factories by name.Gazprom's tactical line of argument could help deflect Russian workers' collective anger about worsening unemployment and the economic slowdown toward Ukraine and away from the Kremlin.Shares of Gazprom were up by 2.1%, at $3.88, on Tuesday morning in Moscow, having risen 4.1% on Monday. Gazprom's shares have fallen 73.0% since the start of 2008, when they were trading at $14.38.Gazprom maintains that Ukraine's state gas company Naftogaz owes it up to $2.4 billion (1.8 billion euros), and it has warned of delivery cuts to the company if its outstanding debt is not cleared.The companies have until Jan. 1 to sign a new contract, and Russia is pushing for higher prices. Russia has warned that gas prices for Ukraine could rise to $400.00 per 1,000 cubic meters, from the current $179.50.There is a whiff of familiarity in all this. A similar dispute in January 2006 saw Russia turn off the gas taps to Ukraine, a key transit country for Russian gas exports, and disrupt gas supplies destined for the European Union for several days.On Dec. 19, President Viktor Yushchenko of Ukraine said his government had paid $1.0 billion to Gazprom for gas pumped in September and October.Both countries face difficult economic times. The Kremlin spent up to $2.5 billion supporting the ruble on Monday, according to TradeTheNews.com, marking the sixth time it has had to do so in December alone.Capital flight from Russia has meanwhile compelled the country's billionaire oligarchs to ask for loans from the government in exchange for portions of their assets (often companies).Ukraine's economic downturn is also being exacerbated by a sliding currency: the hryvnia has halved in the past six months, making imports far more expensive, not to mention the country's debt to Gazprom.Its central bank had to raise interest rates to 22.0%, from 18.0% last week, in a bid to boost the currency, and a perennially unstable political situation is not helping matters.Ukraine received a $16.5 billion loan from the International Monetary Fund in October, and Russia expressed "bewilderment" in an official statement that Ukraine had been unable to repay the debts in spite of that assistance.
Russia's spat with Ukraine over unpaid gas bills is widening; Moscow is now portraying its own citizens as victims of the disagreement.Russian state-run energy giant Gazprom said Tuesday that the $2.0 billion debt that Ukraine still owed it was hurting the Russian economy. "Since the majority of the goods imported from Ukraine are also made in Russia, non-payments for gas damage those sectors where Ukrainian goods compete on Russia's domestic markets," Gazprom spokesman Sergei Kupriyanov said. "This cannot but affect the industries and the people who work in them."Gazprom had warned Monday that its European customers could face a disruption of gas supply due if its dispute with Ukraine led the Kremlin to stop the supply of gas to the former Soviet satellite. Russia provides about a quarter of Europe's gas, and 80.0% of its exports transit through Ukraine.Now Gazprom is highlighting that Russia's 6.6% unemployment could rise further, and Kupriyanov on Tuesday listed potentially vulnerable industrial cities and factories by name.Gazprom's tactical line of argument could help deflect Russian workers' collective anger about worsening unemployment and the economic slowdown toward Ukraine and away from the Kremlin.Shares of Gazprom were up by 2.1%, at $3.88, on Tuesday morning in Moscow, having risen 4.1% on Monday. Gazprom's shares have fallen 73.0% since the start of 2008, when they were trading at $14.38.Gazprom maintains that Ukraine's state gas company Naftogaz owes it up to $2.4 billion (1.8 billion euros), and it has warned of delivery cuts to the company if its outstanding debt is not cleared.The companies have until Jan. 1 to sign a new contract, and Russia is pushing for higher prices. Russia has warned that gas prices for Ukraine could rise to $400.00 per 1,000 cubic meters, from the current $179.50.There is a whiff of familiarity in all this. A similar dispute in January 2006 saw Russia turn off the gas taps to Ukraine, a key transit country for Russian gas exports, and disrupt gas supplies destined for the European Union for several days.On Dec. 19, President Viktor Yushchenko of Ukraine said his government had paid $1.0 billion to Gazprom for gas pumped in September and October.Both countries face difficult economic times. The Kremlin spent up to $2.5 billion supporting the ruble on Monday, according to TradeTheNews.com, marking the sixth time it has had to do so in December alone.Capital flight from Russia has meanwhile compelled the country's billionaire oligarchs to ask for loans from the government in exchange for portions of their assets (often companies).Ukraine's economic downturn is also being exacerbated by a sliding currency: the hryvnia has halved in the past six months, making imports far more expensive, not to mention the country's debt to Gazprom.Its central bank had to raise interest rates to 22.0%, from 18.0% last week, in a bid to boost the currency, and a perennially unstable political situation is not helping matters.Ukraine received a $16.5 billion loan from the International Monetary Fund in October, and Russia expressed "bewilderment" in an official statement that Ukraine had been unable to repay the debts in spite of that assistance.
Prime Minister Calls For Probe Into Ukrainian Currency Collapse
KIEV, Ukraine -- Ukrainian Prime Minister Yulia Tymoshenko called Saturday on prosecutors and a corruption watchdog to probe the plunge in the country's currency, which she has blamed on her political rival, President Viktor Yushchenko.
She told a press conference she had sent a report to the Global Witness group, which campaigns against corruption, and the state prosecutor and the national security service, while expressing doubts about their honesty.Tymoshenko, who is in open conflict with Yushchenko, said Friday that the president should resign for "making money on people's grief."Earlier in the week she accused the president of provoking the plunge of the hryvnia's value, with the support of the national bank, to boost his personal fortune and weaken her government."They are pushing the country toward bankruptcy," added Tymoshenko, who is likely to challenge Yushchenko for the presidency in elections due late 2009 or early 2010.Yushchenko for his part has accused Tymoshenko of populism, saying this was one of the causes for the national currency's collapse.The hryvnia has lost nearly half its value against the dollar over the last six months amid global financial turmoil, sending Ukrainians rushing to swap local money for dollars and euros in scenes that have recalled the chaotic 1990s.Tymoshenko and Yushchenko are allies turned bitter rivals who have regularly denounced each other in recent months over topics including a gas dispute with Russia and Russia's war with Georgia in August.
She told a press conference she had sent a report to the Global Witness group, which campaigns against corruption, and the state prosecutor and the national security service, while expressing doubts about their honesty.Tymoshenko, who is in open conflict with Yushchenko, said Friday that the president should resign for "making money on people's grief."Earlier in the week she accused the president of provoking the plunge of the hryvnia's value, with the support of the national bank, to boost his personal fortune and weaken her government."They are pushing the country toward bankruptcy," added Tymoshenko, who is likely to challenge Yushchenko for the presidency in elections due late 2009 or early 2010.Yushchenko for his part has accused Tymoshenko of populism, saying this was one of the causes for the national currency's collapse.The hryvnia has lost nearly half its value against the dollar over the last six months amid global financial turmoil, sending Ukrainians rushing to swap local money for dollars and euros in scenes that have recalled the chaotic 1990s.Tymoshenko and Yushchenko are allies turned bitter rivals who have regularly denounced each other in recent months over topics including a gas dispute with Russia and Russia's war with Georgia in August.
Food-Poor Countries Seek Farmland
MOSCOW, Russia -- Wearing flowing red robes and pitching his own trademark desert tent, Libyan leader Moammar Qaddafi paid a visit to Ukraine last month in search of a remarkable deal to help feed his oil-rich but soil-poor people.
Under a proposed agreement with Kiev, Libya would lease 247,000 acres of Ukraine's rich black land to grow wheat. The harvest would then be shipped back to Libya, giving the desert nation a more secure supply of food in the face of predictions about higher food prices and potential shortages in decades to come.Ukraine, in turn, would get access to Libyan oil fields, helping free it from dependence on Russia for its energy needs.Around the world, food-poor but cash-rich countries, spooked by last season's high food prices, are racing to snap up rights to farmland in developing countries and breadbasket nations.• South Korea's Daewoo Logistics announced last month that it has signed a 99-year lease on 3.2 million acres of land in Madagascar, which it will use to produce corn and palm oil for shipment home.• China, which already farms more than 100,000 acres of land in Australia, is buying or leasing huge swaths of farmland in the Philippines, Laos, Kazakhstan, Myanmar, Cameroon and Uganda, according to Grain, a sustainable-agriculture group based in Spain.• Gulf nations -- Saudi Arabia, the United Arab Emirates, Bahrain and others -- also have locked up millions of acres in Indonesia, Pakistan, Sudan and Egypt.In the United States, a similar buy-up occurred in the late 1980s, when Japan purchased more than half a million acres of farmland in California, Montana, Colorado and Florida.In contrast to the latest rush, however, the main purpose was to raise cattle for Japan's beef appetite, rather than grain."It's literally all over" that rich countries and corporations have been looking for land, said Carl Atkin, head of research for Bidwells Agribusiness.The rush to buy or enter long-term leases on land has been fueled in part by the low levels of world grain stocks, despite record harvests this year.
Under a proposed agreement with Kiev, Libya would lease 247,000 acres of Ukraine's rich black land to grow wheat. The harvest would then be shipped back to Libya, giving the desert nation a more secure supply of food in the face of predictions about higher food prices and potential shortages in decades to come.Ukraine, in turn, would get access to Libyan oil fields, helping free it from dependence on Russia for its energy needs.Around the world, food-poor but cash-rich countries, spooked by last season's high food prices, are racing to snap up rights to farmland in developing countries and breadbasket nations.• South Korea's Daewoo Logistics announced last month that it has signed a 99-year lease on 3.2 million acres of land in Madagascar, which it will use to produce corn and palm oil for shipment home.• China, which already farms more than 100,000 acres of land in Australia, is buying or leasing huge swaths of farmland in the Philippines, Laos, Kazakhstan, Myanmar, Cameroon and Uganda, according to Grain, a sustainable-agriculture group based in Spain.• Gulf nations -- Saudi Arabia, the United Arab Emirates, Bahrain and others -- also have locked up millions of acres in Indonesia, Pakistan, Sudan and Egypt.In the United States, a similar buy-up occurred in the late 1980s, when Japan purchased more than half a million acres of farmland in California, Montana, Colorado and Florida.In contrast to the latest rush, however, the main purpose was to raise cattle for Japan's beef appetite, rather than grain."It's literally all over" that rich countries and corporations have been looking for land, said Carl Atkin, head of research for Bidwells Agribusiness.The rush to buy or enter long-term leases on land has been fueled in part by the low levels of world grain stocks, despite record harvests this year.
Ukraine's President Blasts Premier
KIEV, Ukraine -- Ukrainian President Viktor Yushchenko accuses Prime Minister Yulia Tymoshenko for lack of management over the country's economic crisis.
"Without a doubt, the prime minister lost control of the situation a long time ago," said Yushchenko in a statement aired Sunday and blamed Tymoshenko for the rise in Ukraine's inflation rate to 22 percent during the current year.Ukraine's prime minister had called earlier on the country's president to resign as she raised corruption allegations against him."I believe the president of this country, who works according to the (principle)...that whatever is worse for the country is better for me, who makes money out of the misery of people, must step down tomorrow together with the head of the central bank," Yulia Tymoshenko had said on Friday.But Yushchenko emphasized that according to the country's constitution, it is only the government that is responsible for creating an independent economic and financial policy."I am sure the prime minister is unable to assess the economic and social processes today," he said. "She put herself in opposition to the Ukrainian people and the state with her last accusations".Tymoshenko and Yushchenko known as political allies in Ukraine, have also been criticizing each other in recent months over issues such as a gas dispute with Russia and Russia's war with Georgia in August.
"Without a doubt, the prime minister lost control of the situation a long time ago," said Yushchenko in a statement aired Sunday and blamed Tymoshenko for the rise in Ukraine's inflation rate to 22 percent during the current year.Ukraine's prime minister had called earlier on the country's president to resign as she raised corruption allegations against him."I believe the president of this country, who works according to the (principle)...that whatever is worse for the country is better for me, who makes money out of the misery of people, must step down tomorrow together with the head of the central bank," Yulia Tymoshenko had said on Friday.But Yushchenko emphasized that according to the country's constitution, it is only the government that is responsible for creating an independent economic and financial policy."I am sure the prime minister is unable to assess the economic and social processes today," he said. "She put herself in opposition to the Ukrainian people and the state with her last accusations".Tymoshenko and Yushchenko known as political allies in Ukraine, have also been criticizing each other in recent months over issues such as a gas dispute with Russia and Russia's war with Georgia in August.
Batman: Part-Time Job For A European President
KIEV, Ukraine -- Ukrainian president Viktor Yushchenko could be accused of inconsistency in everything he does politically, but not in his love for wildlife. Amid financial and political instability, it seems the passionate beekeeper is the only one who cares about bats.
This week President Yushchenko propositioned the Parliament to adopt an amendment to the Agreement on the Conservation of Populations of European Bats.The agreement of 1991 has been ratified by 30 countries and has been effective in Ukraine since 1999. No information as to what particular changes should be made, however, has been released to the media.There is no doubt the endangered species both needs, and is worth, protection, but it seems few in Ukraine are concerned about their fate.Immediately after the proposal to parliament, Viktor Yushchenko came under fire from both his sarcastic political opponents and ordinary Ukrainians, who simply could not figure the importance of the move, or its timing.The Ukrainian president might have felt offended with such an inadequate response to his animal protection efforts but did not show it.He explained with patience that the initiative is “one of the steps Ukraine is undertaking in joining a series of international documents in the context of the country’s integration into Europe.”A statement from the Presidential press service said that since the beginning of the year the president has submitted to the parliament 17 draft laws of this kind, including those concerning Ukraine’s accession to the WTO and the ratification of the European convention about transborder television.Ukrainians already unhappy with Yushchenko were not placated by these moves.Their perceived obstinacy and ingratitude upset their leader so much that he even cancelled his annual media conference.Indeed, what can he respond to thousands of people who asked him online “Dear Mr. President, could you please tell us, how much do we (the simple people) have to pay you so that you – together with your parliamentarians, ministers and officials – leave the country?”How can he justify to the Ukrainian people, fearing to be without gas or heating this winter that bats will lead Ukraine towards a bright European future? It could be a future with no malicious Russia by its side, threatening to cut energy supplies for a $2.4 billion debt.In this perfect Ukraine, abundant in bats and covered with beehives, Prime Minister Yulia Timoshenko will forget her political and power ambitions or at least won’t be contradicting him on every issue possible - and President Yushchenko won’t have to dissolve Parliament every time the deputies fail to form a governing coalition.The country’s corporate and state debt of $105 billion could somehow be repaid and the national currency, the hryvnia, which has devalued by 50 per cent since June, will regain its value… if integration ever comes about.So, thanks to the President’s environmental awareness and love for all living creatures his move could propel Ukraine in the right direction, but it seems that Yushchenko’s initiative has not been appreciated for its true value.Whether or not this happens one day, one thing is clear: at least the bats will be grateful.Source: Russia Today
This week President Yushchenko propositioned the Parliament to adopt an amendment to the Agreement on the Conservation of Populations of European Bats.The agreement of 1991 has been ratified by 30 countries and has been effective in Ukraine since 1999. No information as to what particular changes should be made, however, has been released to the media.There is no doubt the endangered species both needs, and is worth, protection, but it seems few in Ukraine are concerned about their fate.Immediately after the proposal to parliament, Viktor Yushchenko came under fire from both his sarcastic political opponents and ordinary Ukrainians, who simply could not figure the importance of the move, or its timing.The Ukrainian president might have felt offended with such an inadequate response to his animal protection efforts but did not show it.He explained with patience that the initiative is “one of the steps Ukraine is undertaking in joining a series of international documents in the context of the country’s integration into Europe.”A statement from the Presidential press service said that since the beginning of the year the president has submitted to the parliament 17 draft laws of this kind, including those concerning Ukraine’s accession to the WTO and the ratification of the European convention about transborder television.Ukrainians already unhappy with Yushchenko were not placated by these moves.Their perceived obstinacy and ingratitude upset their leader so much that he even cancelled his annual media conference.Indeed, what can he respond to thousands of people who asked him online “Dear Mr. President, could you please tell us, how much do we (the simple people) have to pay you so that you – together with your parliamentarians, ministers and officials – leave the country?”How can he justify to the Ukrainian people, fearing to be without gas or heating this winter that bats will lead Ukraine towards a bright European future? It could be a future with no malicious Russia by its side, threatening to cut energy supplies for a $2.4 billion debt.In this perfect Ukraine, abundant in bats and covered with beehives, Prime Minister Yulia Timoshenko will forget her political and power ambitions or at least won’t be contradicting him on every issue possible - and President Yushchenko won’t have to dissolve Parliament every time the deputies fail to form a governing coalition.The country’s corporate and state debt of $105 billion could somehow be repaid and the national currency, the hryvnia, which has devalued by 50 per cent since June, will regain its value… if integration ever comes about.So, thanks to the President’s environmental awareness and love for all living creatures his move could propel Ukraine in the right direction, but it seems that Yushchenko’s initiative has not been appreciated for its true value.Whether or not this happens one day, one thing is clear: at least the bats will be grateful.Source: Russia Today
Ukrainians Protest Financial Crisis
KIEV, Ukraine -- Thousands of car drivers in the Ukrainian capital angrily blew their horns for several minutes Monday, protesting what they call incompetent and corrupt government policies that led to a devastating financial crisis.
The Ukrainian currency has lost some 40 percent of its value since September as a fall in the export of steel, the heart of the economy, led to a shortage of foreign currency. That was coupled with a loss of confidence in the hryvna and the banking system.Monday's protests branded "Enough" and organized mainly through the Internet were a sign of growing anger and opposition to the government which experts say could boil over into mass protests in the coming months.Many Ukrainians think that their leaders, brought to power on a wave of the 2004 pro-democracy protests known as the Orange Revolution, have betrayed their promises of turning Ukraine into a prosperous European nation.Instead, the government has been paralyzed by infighting and failed to deal efficiently to deal with the financial meltdown even after receiving several billion dollars on a loan from the International Monetary Fund."We've had enough of the authorities," said one protester, Ihor Ratushny.Prime Minister Yulia Tymoshenko has accused the National Bank officials of making huge profits on the shocking devaluation of the hryvna by allowing speculation on the foreign currency exchange.The National Bank denies the accusations, which were seen by some analysts as aimed at Tymoshenko's arch-rival, President Viktor Yushchenko.Ukraine is sinking into a deep depression. Yushchenko has forecast that the economy will contract by up to 10 percent in the first quarter of next year. Tens of thousands of workers face layoffs as steel and other plants across the country freeze.Industrial output shrank nearly to 30 percent in November, from a year earlier, the sharpest drop in a decade.On top of the crisis, Ukraine is facing Russia's threat to cut natural gas supplies on Jan.1 over its debt for the past supplies.
The Ukrainian currency has lost some 40 percent of its value since September as a fall in the export of steel, the heart of the economy, led to a shortage of foreign currency. That was coupled with a loss of confidence in the hryvna and the banking system.Monday's protests branded "Enough" and organized mainly through the Internet were a sign of growing anger and opposition to the government which experts say could boil over into mass protests in the coming months.Many Ukrainians think that their leaders, brought to power on a wave of the 2004 pro-democracy protests known as the Orange Revolution, have betrayed their promises of turning Ukraine into a prosperous European nation.Instead, the government has been paralyzed by infighting and failed to deal efficiently to deal with the financial meltdown even after receiving several billion dollars on a loan from the International Monetary Fund."We've had enough of the authorities," said one protester, Ihor Ratushny.Prime Minister Yulia Tymoshenko has accused the National Bank officials of making huge profits on the shocking devaluation of the hryvna by allowing speculation on the foreign currency exchange.The National Bank denies the accusations, which were seen by some analysts as aimed at Tymoshenko's arch-rival, President Viktor Yushchenko.Ukraine is sinking into a deep depression. Yushchenko has forecast that the economy will contract by up to 10 percent in the first quarter of next year. Tens of thousands of workers face layoffs as steel and other plants across the country freeze.Industrial output shrank nearly to 30 percent in November, from a year earlier, the sharpest drop in a decade.On top of the crisis, Ukraine is facing Russia's threat to cut natural gas supplies on Jan.1 over its debt for the past supplies.
Serial Killer In Ukraine Sentenced To Life In Prison
DNIPROPETROVSK, Ukraine -- A serial killer in the eastern Ukrainian city of Dnipropetrovsk has been sentenced to life in prison, RFE/RL's Ukrainian Service reports.
Serhiy Tkach was arrested in 2005. He had been found guilty of almost 80 rapes and murders. His victims were girls and young women.Tkach, who used to be a professional criminal investigator, has been able to conceal his crimes skillfully for more than 20 years.Nine people had been erroneously convicted for some of the rapes and murders committed by Tkach.
Serhiy Tkach was arrested in 2005. He had been found guilty of almost 80 rapes and murders. His victims were girls and young women.Tkach, who used to be a professional criminal investigator, has been able to conceal his crimes skillfully for more than 20 years.Nine people had been erroneously convicted for some of the rapes and murders committed by Tkach.
Tuesday 16 December 2008
The Battle For Bulgakov's Nationality
KIEV, Ukraine -- Russia and Ukraine are engaged in a cultural cold war over the nationality of one of the world's most celebrated playwrights.Few would disagree that Mikhail Bulgakov is a great writer. But is the man who wrote Flight and A Cabal of Hypocrites a great Russian writer, or a great Ukrainian writer? Or, can any country that exists today really lay full claim to him?I didn't give these questions much thought until visiting Kiev recently. There, Vitaly Malakhov, an acclaimed Ukrainian director who started the Bulgakov international art festival seven years ago, debated the question of Bulgakov's nationality with me.The identity crisis arises it seems because although Bulgakov was born in what is now Ukraine's capital, a city he immortalized in his first novel The White Guard, the playwright and novelist was ethnically Russian, wrote in Russian and moved to Moscow when he was 21.So, while in a recent poll of Russians, the author of The Master and the Margharita was named the country's second greatest writer, in similar poll in Ukraine, he was claimed as Ukraine's third best playwright.The mixed opinions on nationality aren't any less muddy elsewhere in the world of letters.Take, for example, Bernard Shaw – described as an Irish dramatist despite living in England most of his life – or Polish-born Tom Stoppard, who is nearly always referred to as a British playwright.The issue is, understandably, more politically fraught in Ukraine.As Malakhov said, "the problem is, that before 1990, we were all thought of as Russian". I was reminded of this recently when Anton Chekhov's dacha in Yalta, Ukraine hit the news.The playwright's Crimean house, where he wrote both Three Sisters and The Cherry Orchard, is falling apart, but the governments of Ukraine and Russia have been in a stand-off over who should pay to fix it up.It's a cultural cold war with little sign of tensions easing; Nikolai Gogol is another playwright often pulled into the fray.Although Gogol wrote in Russian, ethnically he was Ukrainian and his comic stories drew extensively on his Ukrainian background. The war over Gogol's nationality though, is fought everywhere from scholarly journals to Wikipedia. Alas, there are no government inspectors coming to town to rule on the subject.In an ideal world, the multi-faceted identities of famous literary figures would be used to promote intercultural understanding, rather than fuel rival nationalisms.Kiev's Bulgakov festival attempted just that, by bringing together theatre-makers and artists from around the world – including Russia and Georgia.As Igor Volkov, an actor who participated in the festival, told me: "Bulgakov's work unites people from different parts of the world and people with different political views." So does Gogol's and Chekhov's.As LP Hartley wrote, "the past is a foreign country," and that's the borderless country to which all great writers eventually get citizenship – regardless of where they were born or in which language they originally wrote.
Don’t Expect Service, With Or Without Smiles
KIEV, Ukraine -- Here’s a joke dating back to the times of the U.S.S.R.: In the metro, a woman says to a man: “Can you take your glasses off. You’re going to tear my stockings.”
I think only the Japanese can understand this sort of humor among all people from capitalist countries. I have never visited Tokyo, but I read that their metro is just as busy as ours.To be able to laugh at this joke one has to imagine oneself in the middle of a Kyiv metro carriage in a peak hour when people travel to or from work. People are pressed against one another as if they are fish in a can. There used to be jokes that one could get pregnant in the metro and not know by whom.Here is another curious phrase from the same sort of humor. A woman says to a man in a metro carriage: “Excuse me! Can you take your hand off!” Then to another man: “Not you, you’re ok.” People had to survive with this sort of service and it was easier to endure with laughter.Service remains bad in the metro. But it wasn’t just service that was bad, it was the whole philosophy of service back then. Unfortunately, these attitudes persist today.We ironically called it “unobtrusive Soviet service.” It wasn’t tactful or considerate. It existed for its own sake and could easily survive without the consumer. It didn’t care about the needs of its hypothetical clients in shops or wherever else transaction with the public took place.Foreign visitors to Ukraine rebelled against such a state of affairs. They did want to accept it, leading to funny situations.In the early 1990s, I worked in the press service of Narodniy Rukh political party. I worked with American Irene Jarosewich. One day we went to drop off some documents at a Kyiv hotel where parliament members lived. Afterwards, Irene felt tempted to dine in the hotel’s restaurant. I tried to delicately dissuade her, because I knew what restaurants were like, and suspected that it could not have a happy ending. But she insisted.We entered the restaurant’s great hall that was completely empty. Not a single visitor was to be seen at any of the tables. The waiters told us they will not serve us because they have a reception in a couple of hours. “We won’t eat for two hours. We’ll eat quickly and go,” she tried to persuade them.They advised us to talk to the administrator. He was sitting in a corner and writing something. He barely looked at Irene and continued his writing. He shook his head to all her arguments, with his eyes still fixed on the paper. “Soviet boor!” she exclaimed in the end. The administrator did not even so much as move his head to these words.But it didn’t end there. She poured out her frustration on to that parliament deputy in whose room we had left our coats. He put on his jacket with a parliament member’s badge on it, came down to the restaurant and firmly asked the administrator to feed us.Such impudence made the administrator stop writing and lift up his astounded eyes. When he saw the parliament member’s badge, he ordered the waiters to feed us. They were all afraid of authorities back then. Irene felt as if she were a World War II Red Army fighter who had set the Soviet flag atop the roof of Berlin’s Reichstag.At that time we, Soviet citizens, had an ironic attitude to foreigners who hoped to receive the same level of service in our country as they were accustomed to at home. We joked that they did not understand our realities. They couldn’t understand why a plumber cannot immediately come over to fix a leaky tap. They couldn’t understand why, in a shop with almost empty shelves, a sales assistant can just stand there and chat with her colleague, or even disappear for 10 minutes. They couldn’t understand why someone is being rude to them when you bring them money, i.e., contribute to the profitability of their establishment.But now I realize that I probably couldn’t explain the logic of Soviet service to the generation that was born after the U.S.S.R. These young people have a hard time believing this sort of thing.They have become foreigners to the U.S.S.R. They will hardly be able to imagine that if you said to someone then that “I’ll take my money elsewhere,” you would be ridiculed. There were few restaurants; there were queues in them. They didn’t have to care about their reputation and fight for clients.But Soviet people should thank former Communist Party General Secretary Leonid Brezhnev for having any service and any service industry at all. Until he came to power in 1960s, there was no such thing. The Soviet people had to be jacks of all trades and service themselves in everything. They had to repair their own flats, fix their own bathroom equipment and so on. There had been some restaurants. But they were meant for people with high incomes; in other words, for party and state bureaucrats.It seems that today we can exhale with relief. And even though the service industry is not flawlessly smooth, at least its philosophy is changing. It’s trying to satisfy the client. Former Soviet citizens should be able to rejoice.However, their joy is sometimes cut short by old habits that die hard. Last summer I visited a small town called Katerynopil in Cherkasy Oblast. When it was time to come back home, I came to the bus station. I had to squeeze myself inside the building between several refrigerators and a wall. It looked like a part of the bus station was rented out to someone selling household appliances, and they left it right in the middle of the passageway.I came to the cash desk. There was no one there, inside or outside the booth, not even a queue. Suddenly a woman sprang up from her chair and started sprinting. It turned out she was running towards the cash desk. When I realized that, I felt happier -- someone is hurrying to serve me. But I was about to get disappointed.When she got to her work station, the lady quickly grabbed her ringing cell phone. It was the phone call that made her hurry. She did not want to miss the call. For three or four minutes she talked on the phone, paying no attention whatsoever to me.Having said goodbye to her interlocutor, she sold me a ticket. I took it without looking. It wasn’t until I got inside the bus that I realized she charged me an extra fee for an early booking that I obviously had not made. This was yet more proof to me that Soviet service is still alive and well.
I think only the Japanese can understand this sort of humor among all people from capitalist countries. I have never visited Tokyo, but I read that their metro is just as busy as ours.To be able to laugh at this joke one has to imagine oneself in the middle of a Kyiv metro carriage in a peak hour when people travel to or from work. People are pressed against one another as if they are fish in a can. There used to be jokes that one could get pregnant in the metro and not know by whom.Here is another curious phrase from the same sort of humor. A woman says to a man in a metro carriage: “Excuse me! Can you take your hand off!” Then to another man: “Not you, you’re ok.” People had to survive with this sort of service and it was easier to endure with laughter.Service remains bad in the metro. But it wasn’t just service that was bad, it was the whole philosophy of service back then. Unfortunately, these attitudes persist today.We ironically called it “unobtrusive Soviet service.” It wasn’t tactful or considerate. It existed for its own sake and could easily survive without the consumer. It didn’t care about the needs of its hypothetical clients in shops or wherever else transaction with the public took place.Foreign visitors to Ukraine rebelled against such a state of affairs. They did want to accept it, leading to funny situations.In the early 1990s, I worked in the press service of Narodniy Rukh political party. I worked with American Irene Jarosewich. One day we went to drop off some documents at a Kyiv hotel where parliament members lived. Afterwards, Irene felt tempted to dine in the hotel’s restaurant. I tried to delicately dissuade her, because I knew what restaurants were like, and suspected that it could not have a happy ending. But she insisted.We entered the restaurant’s great hall that was completely empty. Not a single visitor was to be seen at any of the tables. The waiters told us they will not serve us because they have a reception in a couple of hours. “We won’t eat for two hours. We’ll eat quickly and go,” she tried to persuade them.They advised us to talk to the administrator. He was sitting in a corner and writing something. He barely looked at Irene and continued his writing. He shook his head to all her arguments, with his eyes still fixed on the paper. “Soviet boor!” she exclaimed in the end. The administrator did not even so much as move his head to these words.But it didn’t end there. She poured out her frustration on to that parliament deputy in whose room we had left our coats. He put on his jacket with a parliament member’s badge on it, came down to the restaurant and firmly asked the administrator to feed us.Such impudence made the administrator stop writing and lift up his astounded eyes. When he saw the parliament member’s badge, he ordered the waiters to feed us. They were all afraid of authorities back then. Irene felt as if she were a World War II Red Army fighter who had set the Soviet flag atop the roof of Berlin’s Reichstag.At that time we, Soviet citizens, had an ironic attitude to foreigners who hoped to receive the same level of service in our country as they were accustomed to at home. We joked that they did not understand our realities. They couldn’t understand why a plumber cannot immediately come over to fix a leaky tap. They couldn’t understand why, in a shop with almost empty shelves, a sales assistant can just stand there and chat with her colleague, or even disappear for 10 minutes. They couldn’t understand why someone is being rude to them when you bring them money, i.e., contribute to the profitability of their establishment.But now I realize that I probably couldn’t explain the logic of Soviet service to the generation that was born after the U.S.S.R. These young people have a hard time believing this sort of thing.They have become foreigners to the U.S.S.R. They will hardly be able to imagine that if you said to someone then that “I’ll take my money elsewhere,” you would be ridiculed. There were few restaurants; there were queues in them. They didn’t have to care about their reputation and fight for clients.But Soviet people should thank former Communist Party General Secretary Leonid Brezhnev for having any service and any service industry at all. Until he came to power in 1960s, there was no such thing. The Soviet people had to be jacks of all trades and service themselves in everything. They had to repair their own flats, fix their own bathroom equipment and so on. There had been some restaurants. But they were meant for people with high incomes; in other words, for party and state bureaucrats.It seems that today we can exhale with relief. And even though the service industry is not flawlessly smooth, at least its philosophy is changing. It’s trying to satisfy the client. Former Soviet citizens should be able to rejoice.However, their joy is sometimes cut short by old habits that die hard. Last summer I visited a small town called Katerynopil in Cherkasy Oblast. When it was time to come back home, I came to the bus station. I had to squeeze myself inside the building between several refrigerators and a wall. It looked like a part of the bus station was rented out to someone selling household appliances, and they left it right in the middle of the passageway.I came to the cash desk. There was no one there, inside or outside the booth, not even a queue. Suddenly a woman sprang up from her chair and started sprinting. It turned out she was running towards the cash desk. When I realized that, I felt happier -- someone is hurrying to serve me. But I was about to get disappointed.When she got to her work station, the lady quickly grabbed her ringing cell phone. It was the phone call that made her hurry. She did not want to miss the call. For three or four minutes she talked on the phone, paying no attention whatsoever to me.Having said goodbye to her interlocutor, she sold me a ticket. I took it without looking. It wasn’t until I got inside the bus that I realized she charged me an extra fee for an early booking that I obviously had not made. This was yet more proof to me that Soviet service is still alive and well.
Use Her Refuse Her
KIEV, Ukraine -- It’s regrettable that once again the marriage between Ukraine and NATO failed to take place. Russia snickered with satisfaction that neither its nemesis, the United States, nor NATO’s other member states, nor Ukraine together with its patriotic diaspora managed to pull it off.Russia won again: it decides who becomes a NATO member while Ukraine, despite its significance as the largest country in Europe and after some twenty years of nurturing democracy against great odds once again gets a "harbuz", a pumpkin-- Ukrainian vernacular for a marriage refusal.Why again? And the bureaucratese mumbo jumbo about “not meeting standards” simply doesn’t stand up as others join in. Was it because of Russia’s Goliathan response to Georgia’s legitimate claims to protect its territory? Fear of military engagement should Russia pursue other illegal land grabs like Ukraine’s Crimea? Threats of energy cut-offs to Europe?Are longer term aspiration with Russia—trade, space or power sharing-- influencing the two perennial opponents to Ukraine’s entry reducing France and Germany to placating Russia even while the United States -- to whom they owe post War peace -- supported Ukraine’s entry?Was it Ukraine’s own lack of determination coupled with the disfunctionality of President Victor Yushchenko, with a dismal 3% rating, that prevented the union?What about Ukraine’s diaspora? Was its absence of pressure in Nato members’ corridors of power a factor which turned former supporters, chiefly the United States, ultimately into refuseniks?The answer lies in all of the above.Following Russia’s over-the- top-response in Georgia this summer most members favoured Ukraine’s admission. To counter, Russia revved up its aggression. It refused to withdraw from occupied territory, threatened Ukraine with nuclear attacks, and distributed newly issues Russian passports to Ukraine’s citizens.Instead of standing firm against increased bullying some NATO members caved while Ukraine’s international diaspora failed to mount any significant support.The diaspora in Canada, for instance, couldn’t tear itself away from summer holidays long enough to protest Russia’s aggression let alone muster a vigorous political campaign to ensure Canada’s ongoing support of Ukraine’s membership would hold.Elsewhere, members found little incentive to follow through when confronted with the gargantuan pressures from Russia to halt Ukraine’s entry.Furthermore, Germany and France appear to have their own agenda in appeasing Russia. Perhaps Germany’s Chancellor Angela Merkel aspires to a more serious entente. Recently she’s been leading Europe’s rapprochement with Russia, supported by President Nicholas Sarkozy of France, clearly at Ukraine’s expense.Sacrificing Ukraine is not a new phenomenon. Consider this.Since Prussian Catherine the Great ascended Russia’s throne in the 18th century, Germany has had hopes of ruling up to the Urals. To this end, she destroyed the Ukrainian Cossak military formation that had defended Europe from the Ottoman Empire for some three hundred years. The rest of Europe said nothing.After WWI when Ukraine sought recognition of its sovereignty over its newly reunited eastern and western lands, Britain’s Prime Minister Lloyd George et al killed this aspiration at the Treaty of Versailles.Ukraine was again to be divided, this time between Russia and Poland. But Poland was determined to Polonize it while Russia, de facto the USSR, starved some 10 million to ensure russification and Communism’s dominance.There was more of the same after WWII when most of Ukraine was reunited but handed over to “friend and ally” Russia. The West made little of the fact that it was Ukraine, with yet another 10 million dead, that won WWII against Hitler.And last week the US, a staunch supporter of Ukraine backed away from seeking its NATO membership in exchange for support for the missile defense system.Unfortunately for both Ukraine and others most attempts to appease Russia have brought agonizingly painful consequences. In the last century alone czarist abuses precipitated the Communist era with its staggering 80 million victims in the USSR alone. The post WWII appeasement gave the world some fifty years of the Cold War.Returning to NATO’s latest rejection much of the blame also rests with President Yushchenko. His pro-NATO rhetoric over his four-year presidency did not translated into action.He failed to mount a robust public education campaign to increase support; there was no NATO ambassador in place months to the lead-up to April’s critical talks in Bucharest; failed, again, to hold support among western members.By default, the President -- directly responsible for foreign affairs under Ukraine’s Constitution -- has worked Russia’s rather than Ukraine’s agenda.For over two centuries the West—ignorant and acquiescing -- has appeased Russia at the expense of Ukraine. Each time Russia turned into a monster that ultimately turned on the West.Following last week’s meeting, Russia’s NATO Ambassador snickered. NATO, he said "pomatrosyla y brosyla Ukrajinu". In genteel vernacular is means NATO used her and refused her. The expression is cruder in Russian. It is obvious to all what happened, pretty rhetoric and promised of future membership in NATO notwithstanding.Perhaps next time NATO will get the point: its best interests lie with Ukraine inside NATO not aligned with Russia.
Ukraine Bank Prominvest Receiver 'Blockaded'
KIEV, Ukraine -- The receiver of Ukraine's sixth-largest bank was trapped in his office on Monday and prevented from announcing a proposed plan to revive the bank with the government's involvement, a bank official said.
Members of parliament confined receiver Volodymyr Krotyuk to his office as he was due to address a news conference, Andriy Shvets, part of the receiver's team, told waiting reporters."The press conference cannot take place for technical reasons -- the management of the temporary administrators is blockaded by members of parliament," Shvets said.Shvets would not identify the parliamentarians blockading the receiver. The central bank declined all comment.Prominvest, in receivership since October after a run on its deposits, was to have been bought by an Austrian holding company, Slav AG, controlled by two Ukrainian members of parliament -- brothers Andriy and Serhiy Klyuyev.But the brothers failed to meet last week's deadline for payment.Before the news conference, Krotyuk's press service issued a statement saying international auditor Deloitte&Touche was studying the bank's finances "after which a realistic estimate of the size of bank's assets will be made"."After this assessment, the temporary administrator will establish a programme of financial revival with government participation and submit it for central bank approval," it said.The brothers agreed to increase Prominvest's capital by 900 million hryvnias ($120 million) via a share issue and raise an extra 3.6 billion hryvnias through deposits or subordinated debt but twice failed to meet payment deadlines.Prominvest said a steep fall in the value of the hryvnia currency had complicated the transaction. The last deadline set by the administrator for payment was Dec. 8.Prominvest remains barred from allowing withdrawals, affecting ordinary depositors and heavy industry businesses traditionally financed by the bank.Such blockades are not uncommon, especially in ownership rows. Ukraine's largest refinery was taken over by a former head and armed men last year and two years ago members of parliament blockaded the prosecutors office in a row over its top staff.
Members of parliament confined receiver Volodymyr Krotyuk to his office as he was due to address a news conference, Andriy Shvets, part of the receiver's team, told waiting reporters."The press conference cannot take place for technical reasons -- the management of the temporary administrators is blockaded by members of parliament," Shvets said.Shvets would not identify the parliamentarians blockading the receiver. The central bank declined all comment.Prominvest, in receivership since October after a run on its deposits, was to have been bought by an Austrian holding company, Slav AG, controlled by two Ukrainian members of parliament -- brothers Andriy and Serhiy Klyuyev.But the brothers failed to meet last week's deadline for payment.Before the news conference, Krotyuk's press service issued a statement saying international auditor Deloitte&Touche was studying the bank's finances "after which a realistic estimate of the size of bank's assets will be made"."After this assessment, the temporary administrator will establish a programme of financial revival with government participation and submit it for central bank approval," it said.The brothers agreed to increase Prominvest's capital by 900 million hryvnias ($120 million) via a share issue and raise an extra 3.6 billion hryvnias through deposits or subordinated debt but twice failed to meet payment deadlines.Prominvest said a steep fall in the value of the hryvnia currency had complicated the transaction. The last deadline set by the administrator for payment was Dec. 8.Prominvest remains barred from allowing withdrawals, affecting ordinary depositors and heavy industry businesses traditionally financed by the bank.Such blockades are not uncommon, especially in ownership rows. Ukraine's largest refinery was taken over by a former head and armed men last year and two years ago members of parliament blockaded the prosecutors office in a row over its top staff.
Yushchenko's Son Spends $500,000 Dollars On His New Girlfriend
KIEV, Ukraine -- Andrei Yushchenko, the son of Ukrainian President Viktor Yushchenko, has found himself in the middle of another scandal again. Ukrainians continue to discuss a very expensive taste of both the presidential son and his new girlfriend Elizaveta Efrosinina.
Ukrainian tabloids have published quite a number of articles on Andrei’s adventures in Dubai, when he bought Chanel bags worth $500,000 for his girlfriend.He also became known for ordering a bottle of champagne with oysters for 2,000 euros ($2,768) at Kiev’s most luxurious nightclub.Andrei Yushchenko was originally spotted with a new girlfriend Elizaveta (Liza for short) in the middle of the summer of 2008.Everyone thought that it was just another girlfriend for the adventurous young man. It became known afterwards, though, that Andrei organized a ‘meet the parents’ party at his father’s home in Kiev.President Yushchenko reportedly had nothing against their wedding.Liza is only 21 years old, but she owns a luxury apartment in one of the most prestigious neighborhoods in Kiev. She frequently attends fashionable parties in Monte Carlo and Courchevel and buys clothes from latest collections of world’s most renowned designers.She appeared on front pages in a company of wealthy businessman Roman Gurevich. However, when Yushchenko’s son paid his attention to her, the woman decided not to miss such a chance.Andrei Yushchenko thus had to accomplish a difficult goal to outstrip businessman Gurevich behind in terms of his generosity.Andrei can be a very good match at this point: he lives in a 600 square-meter penthouse apartment. His fellow-students say that he owns a platinum Vertu cell phone worth 43,500 euros ($60,000). He usually leaves $500 tips at restaurants and spends there not less than two or three thousand euros. He is the only owner of BMW M6 in Kiev ($130,000).President Viktor Yushchenko uses the symbols of the orange revolution to let his son lead his idle life.The orange revolution brand (orange scarves, mittens, hats, flags, etc) is evaluated at $100 million, experts calculated.The Ukrainian Souvenir company sells orange revolution photo albums, watches, cigarette lighters and mugs, while Andrei Yushchenko simply has to go to the bank to get some cash.Andrei’s previous girlfriend, Anna Pavlovich, enjoyed the orange fruit too. The couple booked a $2,500-a-night hotel room during their holiday in Turkey.In the meantime, Andrei showers his new girlfriend with luxury. He ordered to pack everything that Liza would choose at a Chanel boutique and spent $500,000 to please the girl.
Ukrainian tabloids have published quite a number of articles on Andrei’s adventures in Dubai, when he bought Chanel bags worth $500,000 for his girlfriend.He also became known for ordering a bottle of champagne with oysters for 2,000 euros ($2,768) at Kiev’s most luxurious nightclub.Andrei Yushchenko was originally spotted with a new girlfriend Elizaveta (Liza for short) in the middle of the summer of 2008.Everyone thought that it was just another girlfriend for the adventurous young man. It became known afterwards, though, that Andrei organized a ‘meet the parents’ party at his father’s home in Kiev.President Yushchenko reportedly had nothing against their wedding.Liza is only 21 years old, but she owns a luxury apartment in one of the most prestigious neighborhoods in Kiev. She frequently attends fashionable parties in Monte Carlo and Courchevel and buys clothes from latest collections of world’s most renowned designers.She appeared on front pages in a company of wealthy businessman Roman Gurevich. However, when Yushchenko’s son paid his attention to her, the woman decided not to miss such a chance.Andrei Yushchenko thus had to accomplish a difficult goal to outstrip businessman Gurevich behind in terms of his generosity.Andrei can be a very good match at this point: he lives in a 600 square-meter penthouse apartment. His fellow-students say that he owns a platinum Vertu cell phone worth 43,500 euros ($60,000). He usually leaves $500 tips at restaurants and spends there not less than two or three thousand euros. He is the only owner of BMW M6 in Kiev ($130,000).President Viktor Yushchenko uses the symbols of the orange revolution to let his son lead his idle life.The orange revolution brand (orange scarves, mittens, hats, flags, etc) is evaluated at $100 million, experts calculated.The Ukrainian Souvenir company sells orange revolution photo albums, watches, cigarette lighters and mugs, while Andrei Yushchenko simply has to go to the bank to get some cash.Andrei’s previous girlfriend, Anna Pavlovich, enjoyed the orange fruit too. The couple booked a $2,500-a-night hotel room during their holiday in Turkey.In the meantime, Andrei showers his new girlfriend with luxury. He ordered to pack everything that Liza would choose at a Chanel boutique and spent $500,000 to please the girl.
Sunday 14 December 2008
Russian Marches of Dissent
Wide-scale opposition protests, known as Marches of Dissent, will take place in Moscow, St. Petersburg and other cities on December 14th, despite bans and stiff pressure from authorities.
Demonstrations by other groups, including the nationalist Movement Against Illegal Immigration (DNPI) and its “Russia March,” have meanwhile had no trouble obtaining permits.
Authorities were also mobilizing police for the weekend, which corresponds with the 15th anniversary of the Russian Constitution. The document was approved by a public referendum on December 13, 1993.
As the RBK business daily reports, some 45 thousand officers have been mobilized around the country to deal with public demonstrations.
No Agreement Reached With Moscow Mayor’s Office
No agreement has been reached with officials on the location of the December 14th March of Dissent, but organizers said the protest would go ahead as planned. Garry Kasparov and Eduard Limonov, two leaders of the Other Russia opposition coalition, met Wednesday with city authorities, who refused to grant a permit to hold the demonstration in central Moscow.
According to Ludmila Mamina, the press secretary for Kasparov’s United Civil Front, authorities offered two alternate locations, the Tarasa Shevchenko embankment and Bolotnaya Ploschad. Siting the demonstration in the city center was impossible because other events were already planned there, said Valery Kadatsky, a Moscow city public safety official. While the March of Dissent was the first to apply for a permit to the Moscow Mayor’s office, the other events, he said, had received permits from the Central Administrative District, and not the city.
Organizers first turned in the required documents for the protest on December 1st.
Still, the opposition organizers pledged not to change the meeting place and route of the event, and said that the Moscow Mayor’s office was not giving them any choice but to break the law.
“They did not make any concessions,” said Limonov. The alternatives proposed by officials, Limonov added, were “deserted” and would not allow anyone to see the demonstrators. “We argued that a street demonstration is about our desire to show other people how we feel, and there would be no other people to see our demonstration in those places [suggested by the city authorities],” Limonov said.
Mamina said that organizers were willing and ready to change the route of the March, but wanted to keep the demonstration central, and use the Triumfalnaya Ploschad (Triumph square) as an initial assembly point. The group has been advertising this location in leaflets and flyers for over a month.
The March of Dissent will take place on December 14th, starting at 2:00PM in Triumfalnaya Ploschad and moving along Tverskaya ulitsa.
Citing Safety Concerns, St. Petersburg March of Dissent Moved to Chernyshevsky Gardens
Citing concerns for the safety of demonstrators, organizers of the St. Petersburg March of Dissent have accepted an alternate location proposed by city officials. Organizers said the ban on their original location was “illegal,” but feared that protestors could be assaulted by law enforcement if the March went ahead illegally. The March will now take place in the Chernyshevsky Gardens, starting at 2:00PM on Sunday December 14th.
Read their statement on the matter below:
Statement by Organizers of the St. Petersburg March of Dissent
We, the organizers of the March of Dissent, used all the legal means available to us to receive permission from city officials to hold a March of Dissent in St. Petersburg. The march would start at an assembly point by the Gostiny Dvor at 2:00 PM.
We proposed three different routes, but the authorities illegally refused all of them. Under these circumstances, in order to ensure the safety of citizens, we were forced, under fierce pressure from law enforcement agencies, to accept a clearly illegal offer to hold the meeting in the Chernyshevsky Gardens.
We understand that most of the invited citizens will come to the Gostiny Dvor meeting point on December 14th at 2:00 PM, as was earlier announced.
We hope that the militsiya and other agents of the law, who have been thrown in with an order to prevent the March of Dissent, will not interfere with citizens who will proceed peacefully, calmly and without breaking the public peace, from the Gostiny Dvor to the new meeting-place.
Demonstrations by other groups, including the nationalist Movement Against Illegal Immigration (DNPI) and its “Russia March,” have meanwhile had no trouble obtaining permits.
Authorities were also mobilizing police for the weekend, which corresponds with the 15th anniversary of the Russian Constitution. The document was approved by a public referendum on December 13, 1993.
As the RBK business daily reports, some 45 thousand officers have been mobilized around the country to deal with public demonstrations.
No Agreement Reached With Moscow Mayor’s Office
No agreement has been reached with officials on the location of the December 14th March of Dissent, but organizers said the protest would go ahead as planned. Garry Kasparov and Eduard Limonov, two leaders of the Other Russia opposition coalition, met Wednesday with city authorities, who refused to grant a permit to hold the demonstration in central Moscow.
According to Ludmila Mamina, the press secretary for Kasparov’s United Civil Front, authorities offered two alternate locations, the Tarasa Shevchenko embankment and Bolotnaya Ploschad. Siting the demonstration in the city center was impossible because other events were already planned there, said Valery Kadatsky, a Moscow city public safety official. While the March of Dissent was the first to apply for a permit to the Moscow Mayor’s office, the other events, he said, had received permits from the Central Administrative District, and not the city.
Organizers first turned in the required documents for the protest on December 1st.
Still, the opposition organizers pledged not to change the meeting place and route of the event, and said that the Moscow Mayor’s office was not giving them any choice but to break the law.
“They did not make any concessions,” said Limonov. The alternatives proposed by officials, Limonov added, were “deserted” and would not allow anyone to see the demonstrators. “We argued that a street demonstration is about our desire to show other people how we feel, and there would be no other people to see our demonstration in those places [suggested by the city authorities],” Limonov said.
Mamina said that organizers were willing and ready to change the route of the March, but wanted to keep the demonstration central, and use the Triumfalnaya Ploschad (Triumph square) as an initial assembly point. The group has been advertising this location in leaflets and flyers for over a month.
The March of Dissent will take place on December 14th, starting at 2:00PM in Triumfalnaya Ploschad and moving along Tverskaya ulitsa.
Citing Safety Concerns, St. Petersburg March of Dissent Moved to Chernyshevsky Gardens
Citing concerns for the safety of demonstrators, organizers of the St. Petersburg March of Dissent have accepted an alternate location proposed by city officials. Organizers said the ban on their original location was “illegal,” but feared that protestors could be assaulted by law enforcement if the March went ahead illegally. The March will now take place in the Chernyshevsky Gardens, starting at 2:00PM on Sunday December 14th.
Read their statement on the matter below:
Statement by Organizers of the St. Petersburg March of Dissent
We, the organizers of the March of Dissent, used all the legal means available to us to receive permission from city officials to hold a March of Dissent in St. Petersburg. The march would start at an assembly point by the Gostiny Dvor at 2:00 PM.
We proposed three different routes, but the authorities illegally refused all of them. Under these circumstances, in order to ensure the safety of citizens, we were forced, under fierce pressure from law enforcement agencies, to accept a clearly illegal offer to hold the meeting in the Chernyshevsky Gardens.
We understand that most of the invited citizens will come to the Gostiny Dvor meeting point on December 14th at 2:00 PM, as was earlier announced.
We hope that the militsiya and other agents of the law, who have been thrown in with an order to prevent the March of Dissent, will not interfere with citizens who will proceed peacefully, calmly and without breaking the public peace, from the Gostiny Dvor to the new meeting-place.
Russian Markets Collapse
Russian stock markets experienced another stark collapse Friday, dropping to new lows amid plummeting oil prices and fears of a global recession. At close, the RTS index lost 13.68 percent, closing at 549.93. The index had ceased trading for one hour at 13:10, cancelled trading for shares of Sberbank at 14:30, and finally froze trading altogether at 17:05.
The MICEX, meanwhile, halted trading at 14:10 after losing 14.24 percent, closing at 513.62. The two indexes have lost over half their value in the past month alone. Both will resume trading on Tuesday, October 28th.
The Russian collapse comes in line with falling share prices in Europe, although the reaction in Russia has been much more severe. Fears of a global recession and oil prices at a 16 month low have made many investors fearful about the state of Russia’s oil and gas-rich economy. On Thursday, the Standard & Poor’s rating agency lowered Russia's long-term outlook to “negative” from “stable.”
Crude oil was trading at $63 per barrel on the New York exchange Friday. This posed a serious problem for Russia’s 2009 budget, which will go into deficit below a price of $70 per barrel.
To combat sinking prices, the OPEC cartel announced today that it would cut production by 1.5 million barrels a day. Unfortunately, many investors do not believe the move will be enough to counteract shrinking worldwide demand, and the cut did not have an immediate effect on markets.
The MICEX, meanwhile, halted trading at 14:10 after losing 14.24 percent, closing at 513.62. The two indexes have lost over half their value in the past month alone. Both will resume trading on Tuesday, October 28th.
The Russian collapse comes in line with falling share prices in Europe, although the reaction in Russia has been much more severe. Fears of a global recession and oil prices at a 16 month low have made many investors fearful about the state of Russia’s oil and gas-rich economy. On Thursday, the Standard & Poor’s rating agency lowered Russia's long-term outlook to “negative” from “stable.”
Crude oil was trading at $63 per barrel on the New York exchange Friday. This posed a serious problem for Russia’s 2009 budget, which will go into deficit below a price of $70 per barrel.
To combat sinking prices, the OPEC cartel announced today that it would cut production by 1.5 million barrels a day. Unfortunately, many investors do not believe the move will be enough to counteract shrinking worldwide demand, and the cut did not have an immediate effect on markets.
How Russia can escape the Debt crisis
A Statement by the Liberal Charter alliance
The Liberal Charter alliance expresses its fundamental disagreement with the measures taken by Russian authorities in the financial crisis, and puts forth the principles of a fiscal policy that a government responsible to the citizens of Russia must take.
1. Today’s financial crisis in Russia has foreign and domestic causes. The most important external cause of this crisis is the world monetary system, which goes through cyclical phases of boom and bust. Such instability is created first of all by modern money, which governments can issue in any amount, combined with a wide range of government privileges and guarantees provided to commercial banks. Interest rates held at artificially low levels and government loan guarantees stimulate the growth of credit that is not backed by real savings, leading to less responsibility on the part of creditors and borrowers, and a collapse of confidence in financial assets.
The main culprits of the global financial crisis are the fiscal authorities in the U.S. and European countries, who have pursued a policy of so-called “cheap” money in recent years. The governments of other countries, including Russia, also carry their share of responsibility for spreading and worsening the crisis. Government encouragement of credit expansion has led to massive investments into overly risky, inefficient, and unsalable projects. The illusion of the accessibility of investment resources, created by governments, has led to a decline in the quality of issued loans and purchased securities. As result, many banks have been unable to meet their obligations before depositors.
2. The Russian authorities have contributed their share to the financial “bubble” in our country. Due to their privileged status, state-owned and partly state-owned banks and companies borrowed heavily on foreign and domestic markets. In doing so, short-term loans were used for long-term investments, and to finance expenditures growing out of control. The disappearance of cheap credit destroyed such financial “pyramids”. With a fall in equity prices, companies whose shares were put as collateral to private and partly state-owned companies to obtain credit were now under threat of handing ownership to those creditors, including foreign ones. The threat that companies would be punished for their irresponsible borrowing policies became an instrument of their pressure on authorities, and the basis for transferring their colossal accumulated debts to the federal budget.
3. Provoked by government intervention, the mistakes made by banks and businesses are at the present largely irreversible; serious problems can no longer be avoided. The economy must undergo a period to correct those mistakes.
4. Presently, the primary danger to the global and Russian economies are the so-called “anti-crisis programs” put on by governments, which are hidden behind demagogic statements that the “free market” is supposedly to blame for the current crisis. Government intervention, which hinders the culling of inefficient investment projects, blocks the review of mistaken decisions and puts off the bankruptcy of irresponsible businesses, only deepens and extends the financial crisis, turning an inevitable short-term economic decline into a long-term depression. In world history, it is precisely the interference with market mechanisms that has had such dire consequences, such as the US Great Depression from 1929-33, or the transformation of Great Britain into the “sick man of Europe” from 1961-79, or the Japanese stagnation from 1991-2004.
5. The Liberal Charter alliance expresses a fundamental disagreement with the actions already undertaken, as well as the stated intentions of the Russian authorities – the president, parliament, government, and the Bank of Russia. Their plans of uncontrolled intervention in the country’s economy are, among other things, a disregard for the rule of law and the existing legislation, the undoing of the separation of powers, and the dismantling of democratic institutions accountable to the people.
We believe that the proposed measures are wrong. [These include] the use of federal resources, administered by the Government and Bank of Russia, to finance irresponsible borrowers, to support banks and stock market speculators who risked their client’s money, as well as acquiring shares of those companies that the market has lost confidence in. These measures will squander the federal gold reserves, which guarantee the value and free convertibility of the Russian ruble. They will inevitably result in higher prices for the public, who will end up paying for benefits essentially doled out to businessmen and managers close with the authorities. The concentration of financial resources in the hands of bureaucrats and their “inner circle” is aimed at further monopolization of property and power in our country.
6. In this time of crisis, a government responsible before the Russian people must follow financial policies based upon the following principles:
-Maintaining the exchange rate of the ruble against the pre-determined dollar and euro currency basket. A guarantee of the sanctity of gold reserves in the Bank of Russia to back 100% of issued Russian rubles. Continuing a responsible monetary policy, dictated by the basic principles of respect for property rights and meeting ones obligations, even if these obligations were not explicitly formalized.
-Preserving a deficit-free budget, where expenditures do not exceed revenues, [and committing to] prohibit the growth of public debt. At a time of unavoidable economic stagnation, public expenditures must be lowered proportionately with the fall in government revenues.
-Establishing transparent mechanisms for distributing assistance from the state budget and special endowments. Excluding the possibility that these funds will head to privileged banks and companies. The main way to use the budget surplus, which has accumulated in special endowments, must either be the return of previously collected taxes, or a reduction in future taxes.
- Directing funds from the budget and special endowments to commercial banks only in exceptional cases, and only through the mechanism of returning money to depositors (the so-called “monetization of bank liabilities”). The banks subjected to this measure must undergo bankruptcy proceedings. This provides an effective countermeasure to owners stripping assets, and allows for an open and transparent sale of all assets, with revenues going to the state budget. The expansion of a government role in the banking system’s equity is impermissible.
-It is unacceptable to use budgetary funds to rescue bankrupt companies. It is unacceptable to increase the government’s direct or indirect control over the real sector of the economy. Irresponsible business owners and managers should be punished by having the encumbered shares of bankrupt Russian companies transferred to their creditors– independent from their citizenship or country of registration. Bankruptcy sales must be carried out in open and transparent auctions.
-Reducing government intervention in the financial sector. The reorganization of the financial regulatory system on the principles of competition and free enterprise.
-Reform of the monetary regulatory system. The Bank of Russia should maintain its aim of supporting the value of the ruble, even as it ceases the additional powers granted it under the “anti-crisis measures.” Regulation of banks should be transferred to a separate government body. [This would] eliminate the privileges given to commercial banks, which arise from the Bank of Russia’s joint function of “printing” rubles and regulating the banking system.
7. The Liberal Charter alliance marks that the result of the so-called “anti-crisis programs” proposed by authorities will be the deepening and widening of the financial crisis, and the transition of a short-term recession into an extended depression. Preserving mistakes made during an economic boom, continuing the policy of promoting risky loans, and the misuse of public resources for false purposes will inevitably lead to grave financial, economic and social consequences. Russia does not need to repeat mistakes made more than once by authorities in the US, the European Union and other countries.
The only guarantee of the Russian economy’s competitive edge and long-term success, and that of the whole Russian society– is the freedom of entrepreneurship by Russian citizens. [Further, the] government must respect property rights and carry out responsible, consistent and ethical economic policies.
The Liberal Charter alliance expresses its fundamental disagreement with the measures taken by Russian authorities in the financial crisis, and puts forth the principles of a fiscal policy that a government responsible to the citizens of Russia must take.
1. Today’s financial crisis in Russia has foreign and domestic causes. The most important external cause of this crisis is the world monetary system, which goes through cyclical phases of boom and bust. Such instability is created first of all by modern money, which governments can issue in any amount, combined with a wide range of government privileges and guarantees provided to commercial banks. Interest rates held at artificially low levels and government loan guarantees stimulate the growth of credit that is not backed by real savings, leading to less responsibility on the part of creditors and borrowers, and a collapse of confidence in financial assets.
The main culprits of the global financial crisis are the fiscal authorities in the U.S. and European countries, who have pursued a policy of so-called “cheap” money in recent years. The governments of other countries, including Russia, also carry their share of responsibility for spreading and worsening the crisis. Government encouragement of credit expansion has led to massive investments into overly risky, inefficient, and unsalable projects. The illusion of the accessibility of investment resources, created by governments, has led to a decline in the quality of issued loans and purchased securities. As result, many banks have been unable to meet their obligations before depositors.
2. The Russian authorities have contributed their share to the financial “bubble” in our country. Due to their privileged status, state-owned and partly state-owned banks and companies borrowed heavily on foreign and domestic markets. In doing so, short-term loans were used for long-term investments, and to finance expenditures growing out of control. The disappearance of cheap credit destroyed such financial “pyramids”. With a fall in equity prices, companies whose shares were put as collateral to private and partly state-owned companies to obtain credit were now under threat of handing ownership to those creditors, including foreign ones. The threat that companies would be punished for their irresponsible borrowing policies became an instrument of their pressure on authorities, and the basis for transferring their colossal accumulated debts to the federal budget.
3. Provoked by government intervention, the mistakes made by banks and businesses are at the present largely irreversible; serious problems can no longer be avoided. The economy must undergo a period to correct those mistakes.
4. Presently, the primary danger to the global and Russian economies are the so-called “anti-crisis programs” put on by governments, which are hidden behind demagogic statements that the “free market” is supposedly to blame for the current crisis. Government intervention, which hinders the culling of inefficient investment projects, blocks the review of mistaken decisions and puts off the bankruptcy of irresponsible businesses, only deepens and extends the financial crisis, turning an inevitable short-term economic decline into a long-term depression. In world history, it is precisely the interference with market mechanisms that has had such dire consequences, such as the US Great Depression from 1929-33, or the transformation of Great Britain into the “sick man of Europe” from 1961-79, or the Japanese stagnation from 1991-2004.
5. The Liberal Charter alliance expresses a fundamental disagreement with the actions already undertaken, as well as the stated intentions of the Russian authorities – the president, parliament, government, and the Bank of Russia. Their plans of uncontrolled intervention in the country’s economy are, among other things, a disregard for the rule of law and the existing legislation, the undoing of the separation of powers, and the dismantling of democratic institutions accountable to the people.
We believe that the proposed measures are wrong. [These include] the use of federal resources, administered by the Government and Bank of Russia, to finance irresponsible borrowers, to support banks and stock market speculators who risked their client’s money, as well as acquiring shares of those companies that the market has lost confidence in. These measures will squander the federal gold reserves, which guarantee the value and free convertibility of the Russian ruble. They will inevitably result in higher prices for the public, who will end up paying for benefits essentially doled out to businessmen and managers close with the authorities. The concentration of financial resources in the hands of bureaucrats and their “inner circle” is aimed at further monopolization of property and power in our country.
6. In this time of crisis, a government responsible before the Russian people must follow financial policies based upon the following principles:
-Maintaining the exchange rate of the ruble against the pre-determined dollar and euro currency basket. A guarantee of the sanctity of gold reserves in the Bank of Russia to back 100% of issued Russian rubles. Continuing a responsible monetary policy, dictated by the basic principles of respect for property rights and meeting ones obligations, even if these obligations were not explicitly formalized.
-Preserving a deficit-free budget, where expenditures do not exceed revenues, [and committing to] prohibit the growth of public debt. At a time of unavoidable economic stagnation, public expenditures must be lowered proportionately with the fall in government revenues.
-Establishing transparent mechanisms for distributing assistance from the state budget and special endowments. Excluding the possibility that these funds will head to privileged banks and companies. The main way to use the budget surplus, which has accumulated in special endowments, must either be the return of previously collected taxes, or a reduction in future taxes.
- Directing funds from the budget and special endowments to commercial banks only in exceptional cases, and only through the mechanism of returning money to depositors (the so-called “monetization of bank liabilities”). The banks subjected to this measure must undergo bankruptcy proceedings. This provides an effective countermeasure to owners stripping assets, and allows for an open and transparent sale of all assets, with revenues going to the state budget. The expansion of a government role in the banking system’s equity is impermissible.
-It is unacceptable to use budgetary funds to rescue bankrupt companies. It is unacceptable to increase the government’s direct or indirect control over the real sector of the economy. Irresponsible business owners and managers should be punished by having the encumbered shares of bankrupt Russian companies transferred to their creditors– independent from their citizenship or country of registration. Bankruptcy sales must be carried out in open and transparent auctions.
-Reducing government intervention in the financial sector. The reorganization of the financial regulatory system on the principles of competition and free enterprise.
-Reform of the monetary regulatory system. The Bank of Russia should maintain its aim of supporting the value of the ruble, even as it ceases the additional powers granted it under the “anti-crisis measures.” Regulation of banks should be transferred to a separate government body. [This would] eliminate the privileges given to commercial banks, which arise from the Bank of Russia’s joint function of “printing” rubles and regulating the banking system.
7. The Liberal Charter alliance marks that the result of the so-called “anti-crisis programs” proposed by authorities will be the deepening and widening of the financial crisis, and the transition of a short-term recession into an extended depression. Preserving mistakes made during an economic boom, continuing the policy of promoting risky loans, and the misuse of public resources for false purposes will inevitably lead to grave financial, economic and social consequences. Russia does not need to repeat mistakes made more than once by authorities in the US, the European Union and other countries.
The only guarantee of the Russian economy’s competitive edge and long-term success, and that of the whole Russian society– is the freedom of entrepreneurship by Russian citizens. [Further, the] government must respect property rights and carry out responsible, consistent and ethical economic policies.
Standard & Poor downgrade Russia
In the latest news item to predict a chaotic future for the Russian economy, the Standard & Poor’s rating agency cut the country's debt rating (Rus) for the first time in a decade Monday. In a separate press-release, the agency also cut it's rating of a series of companies connected with the government and regional authorities (Rus), including oil and gas heavyweights Gazprom, Transneft and Rosneft.
Russia’s long-term foreign currency sovereign credit rating fell to BBB in the long-term, and A-3 in the short term, with a negative outlook. This means Russia is now just two notches above the “junk” category, and continuing adverse economic conditions could prevent Russia from meeting its financial obligations in the future.
The drop is tied closely with capital flows moving out of Russia, and with a sharp decline in Russian foreign currency reserves. The new ranking marked the first time Russia’s sovereign rating had been cut since the escalation of the financial crisis.
Other ratings agencies have also lowered their forecasts for Russia’s economy, warning of growing signs of trouble. Standard & Poor’s has lowered its outlook twice in 2008, moving from “positive” to “stable,” and ultimately to “negative.”
In a sign of how quickly the global crisis has reversed Russia’s economic fortunes, Standard & Poor’s cut the country’s debt rating on Monday for the first time in a decade, warning of the “rapid depletion” of Russia’s massive reserves.…
Russia is now two notches above the “junk” category of high-yield bonds that ratings agencies consider speculative.…
The agency warned that if oil prices remain low over the next two years, Russia will run through all of the $209 billion it has saved from its oil revenues in special rainy-day funds.…
But officials have said as many as 200,000 jobs could be cut over the next two months, and many economists warn that the actual figure could be substantially higher.
A survey released last week by the Public Opinion Foundation found that almost a third of Russians said the economy is in crisis. Forty-one percent said their own economic situation had worsened in the past two or three months, the highest level this year. Ordinary Russians have scrambled to shift from rubles into dollars and euros, reversing hard-fought gains in confidence in the Russian currency. Central-bank data show that Russians bought a record $16.9 billion in foreign currency in October, the last month for which figures are available.
After growing at nearly 8% in the past two years, the economy is decelerating sharply: S&P warned that Russia’s economy, measured in dollar terms, is likely to shrink next year. That would be a drastic turnabout from the decade of steady growth since Russia defaulted on its debt and devalued the ruble in 1998.
Russia’s long-term foreign currency sovereign credit rating fell to BBB in the long-term, and A-3 in the short term, with a negative outlook. This means Russia is now just two notches above the “junk” category, and continuing adverse economic conditions could prevent Russia from meeting its financial obligations in the future.
The drop is tied closely with capital flows moving out of Russia, and with a sharp decline in Russian foreign currency reserves. The new ranking marked the first time Russia’s sovereign rating had been cut since the escalation of the financial crisis.
Other ratings agencies have also lowered their forecasts for Russia’s economy, warning of growing signs of trouble. Standard & Poor’s has lowered its outlook twice in 2008, moving from “positive” to “stable,” and ultimately to “negative.”
In a sign of how quickly the global crisis has reversed Russia’s economic fortunes, Standard & Poor’s cut the country’s debt rating on Monday for the first time in a decade, warning of the “rapid depletion” of Russia’s massive reserves.…
Russia is now two notches above the “junk” category of high-yield bonds that ratings agencies consider speculative.…
The agency warned that if oil prices remain low over the next two years, Russia will run through all of the $209 billion it has saved from its oil revenues in special rainy-day funds.…
But officials have said as many as 200,000 jobs could be cut over the next two months, and many economists warn that the actual figure could be substantially higher.
A survey released last week by the Public Opinion Foundation found that almost a third of Russians said the economy is in crisis. Forty-one percent said their own economic situation had worsened in the past two or three months, the highest level this year. Ordinary Russians have scrambled to shift from rubles into dollars and euros, reversing hard-fought gains in confidence in the Russian currency. Central-bank data show that Russians bought a record $16.9 billion in foreign currency in October, the last month for which figures are available.
After growing at nearly 8% in the past two years, the economy is decelerating sharply: S&P warned that Russia’s economy, measured in dollar terms, is likely to shrink next year. That would be a drastic turnabout from the decade of steady growth since Russia defaulted on its debt and devalued the ruble in 1998.
500,000 Russians loose their Jobs in November
At least 500 thousand Russians were laid off in November, the Kommersant newspaper reports, citing labor market data from the Ministry of Public Health and Social Development. Experts interviewed by the newspaper predicted that unemployment could rise from 6.1 to 7 percent by the end of the year.
According to the official data from the Ministry and Rostrud (the Federal Labor and Employment Service) the number of people registered as unemployed rose by 15.8 percent from the previous year, from 1.203 to 1.498 million.
Nearly 200 companies have also revealed plans to shorten their work hours or send employees on mandatory leave.
Yet the data may not show the full scale of layoffs.
“Not all organizations present this information,” a statement by Ministry of Public Health explained, “and this is especially characteristic for small businesses.”
Only a share of businesses officially report layoffs to the Ministry, and some companies have gone to great lengths to make fired workers look like "voluntary resignations". Finally, not all laid-off workers register at the unemployment office, making their situation impossible to track.
According to Kommersant’s estimates, which account for unreported layoffs, the actual job loss rate may have been as high as 800 thousand in November. The corresponding number of total unemployed workers may exceed 5 million.
According to the official data from the Ministry and Rostrud (the Federal Labor and Employment Service) the number of people registered as unemployed rose by 15.8 percent from the previous year, from 1.203 to 1.498 million.
Nearly 200 companies have also revealed plans to shorten their work hours or send employees on mandatory leave.
Yet the data may not show the full scale of layoffs.
“Not all organizations present this information,” a statement by Ministry of Public Health explained, “and this is especially characteristic for small businesses.”
Only a share of businesses officially report layoffs to the Ministry, and some companies have gone to great lengths to make fired workers look like "voluntary resignations". Finally, not all laid-off workers register at the unemployment office, making their situation impossible to track.
According to Kommersant’s estimates, which account for unreported layoffs, the actual job loss rate may have been as high as 800 thousand in November. The corresponding number of total unemployed workers may exceed 5 million.
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