[Ohio UZO News] Ukraine: US State Dep't; FT (2); AP

[Deychak, Orest]

U.S. Department of State

 

U.S., Ukraine Sign Charter on Strategic Partnership <http://www.state.gov/video/?videoid=5332045001> 
Secretary Rice (Dec. 19): "This charter underscores our principles of relations. It outlines a way to advance cooperation in defense and security, in economics and trade, in energy security, in democracy, and in people-to-people contacts and cultural exchanges." Full Text <http://www.state.gov/secretary/rm/2008/12/113394.htm>  l Media Note <http://www.state.gov/r/pa/prs/ps/2008/dec/113367.htm>  l Charter <http://www.state.gov/p/eur/rls/or/113366.htm>  : http://www.state.gov/p/eur/rls/or/113366.htm

Daily Press Briefing
Sean McCormack, Spokesman
Washington, DC
December 19, 2008

Excerpt on Ukraine:

 

…QUESTION: Do you think that Secretary Rice will be talking to the Ukrainians at all today about trying to help them in their financial crisis? I mean, the currency, apparently, just in the last couple of days, has just really totally crashed. And you know, Russia says it’s not going to give them any more gas because they’re way behind in their debt. Everybody is afraid the IMF loan is going to have to be all spent on supporting the currency. So I just wondered if there’s anything that, you know, that you guys can do – 

MR. MCCORMACK: I’m not going to venture into the world of currency markets. No, thank you. Look, they’re going to talk about the wide range of the U.S.-Ukraine bilateral relationship. They’re going to sign a memorandum of understanding.

Let me get you the exact terms here. It’s going – the United States-Ukraine Charter on Strategic Partnership. And this just outlines areas of cooperation, everything from defense, to economic, trade relations, energy, security, democracy, and cultural exchanges, and just about everything in between.

QUESTION: Is there any sort of hard substance to that? I mean, does it increase, you know, consultations? You know, you have strategic dialogues with other countries that periodically meet at various levels. Or is this just kind like we can work together on all these things, and we’re going to define later just how we’ll do that?

MR. MCCORMACK: Right. Well, I think there is substance to it. We’re – I don’t have here whether or not this – the signing of this will constitute any particular groups, like strategic dialogue groups. But it outlines very, you know, specifically areas of cooperation and a roadmap for those areas of cooperation, so you’ve more clearly defined where you think it can work, for example, on HIV/AIDS, in a cooperative way where there’s mutual interest. So there’s substance there and it provides a roadmap. We do this with a lot of – these sorts of things with a lot of countries, as you know.

QUESTION: (Inaudible) give them any advice on what to do when the Russian lease on Sevastopol runs out? I think that’s next year.  [Note:  The lease runs out in 2017, not next year.  OD]

MR. MCCORMACK: They’ll have to deal with that themselves in the context of their relationship with Russia.

QUESTION: Can you explain what it means -- this idea of opening a diplomatic presence in the Crimea?

MR. MCCORMACK: We’re considering opening an American Presence Post in the Crimea, in the Crimean capital of Simferopol to expand a cultural – to expand exchanges and promote mutual understanding between the United States and the Crimean region. And these American – well, you know what they are, but just for everybody else who might be interested in them. They’re just, you know, one-person or two-person diplomatic post, very small. That person does a whole variety of different work – you know, work from doing cultural exchanges, cultural events, to doing political reporting, that sort of thing.

QUESTION: And when – 

MR. MCCORMACK: And so we’re considering it. We’re not – 

QUESTION: Thank you.

QUESTION: It’s yet another American incursion into Russia’s historic sphere of influence, right? (Laughter.)

QUESTION: When is this – 

MR. MCCORMACK: No.

Yeah. When is this?

QUESTION: When?

MR. MCCORMACK: We’re considering opening, so that’s the language that I have here. So I don’t have a date for you, Matt.

QUESTION: Well, you only have a few weeks to consider it.

MR. MCCORMACK: Well, so that means we have a few weeks to consider it.

QUESTION: Well, I mean, is this something that this Administration is going to do, or is this something that will be – that will bubble and percolate through to the administration? 

MR. MCCORMACK: I can’t – Matt, I don’t have an answer for you on that. I’ll – since you’ve expressed a deep interest in that, I will – 

QUESTION: Well – 

MR. MCCORMACK: I will – no, it’s an important issue. I will get you an answer. 

QUESTION: Okay….

 

…QUESTION: Going back to the – this diplomatic – this is going to be like a consulate or – 

MR. MCCORMACK: An American Presence Post? 

QUESTION: Yeah. 

MR. MCCORMACK: No, it’s not a consulate. It is exactly that, American Presence Post. This is – they started during, I believe, the Clinton Administration in France where the Ambassador there started – had the idea of opening up these very small presence posts throughout the country because he thought it was a very good idea to try to get a better feel for what’s going on outside the capital and outside the consulates, and also to have an American presence in those places. And it’s a concept that has proven its worth over time and that has been replicated in other countries, you know, other countries where we have representation around the world. 

Yeah. 

QUESTION: Well, France is one thing. I mean, how do you deal with the undoubted questions that will come from Russia, you know, the – seeing this as a provocative act, somehow protective of the Crimea, that it will stay with Ukraine? 

MR. MCCORMACK: Right. 

QUESTION: Wow. Now I’m sorry I asked the question. 

MR. MCCORMACK: Yeah, yeah. (Laughter.) So am I. (Laughter.) Look, this is about U.S.-Ukraine bilateral relations. You know, if the Russian Government chooses to be upset by – you know, by my stating that we’re considering opening up an American – you know, a one-person or a two-person American Presence Post, well, there’s not much I can do about that then… 

Financial Times

Ukraine's premier calls on president to resign

By Roman Olearchyk in Kiev 

Published: December 22 2008 02:00 

Ukraine's prime minister has called for the resignation of Viktor Yushchenko, the president, and an investigation into his associates after accusing individuals of profiting from bets against the country's currency.

Yulia Tymoshenko also named Dmytro Firtash, the billionaire and Gazprom's partner in the supply of natural gas to Ukraine and Europe, as a co-conspirator in the alleged speculation.

"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," Ms Tymoshenko said.

The attack escalates a feud between Ms Tymoshenko and Mr Yushchenko at a time when the country is struggling against the threat of economic instability.

Ms Tymoshenko said a significant portion of $1.2bn (€862m) in central bank emergency financing granted to Nadra, a troubled Ukrainian bank, had been used for currency speculation. The hryvnia was down as much as 12 per cent against the US dollar at one point last week as the country battled to avoid a financial meltdown.

Mr Firtash, who plans to buy Nadra, threatened legal action against Ms Tymoshenko "for the groundless accusations and attacks against him personally". Mr Yushchenko hit back by accusing Ms Tymoshenko of mishandling the economy.

Analysts say infighting could complicate Ukraine's efforts to deal with the financial crisis and complicate crucial energy talks with Moscow, which has threatened to cut off gas supplies next year citing debt arrears.

Ms Tymoshenko has produced no evidence to back her allegations but called for an independent investigation by Global Witness, a London-based non-profit organisation that exposes corruption.

Financial Times

Ukraine's PM seeks currency bets probe

By Roman Olearchyk in Kiev 

Published: December 22 2008 02:00  

Yulia Tymoshenko, Ukraine's prime minister, has called for an investigation into the president's inner circle after accusing individuals of profiting from bets against the currency last week as the country struggled to avoid financial meltdown.

The prime minister demanded the resignation of Viktor Yushchenko, the president, and named billionaire Dmytro Firtash, Gazprom's partner in the supply of natural gas to Ukraine and Europe, as a co-conspirator in the alleged currency speculation.

"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," Ms Tymoshenko said.

The attack sharply escalates a long-running political feud between Ms Tymoshenko and Mr Yushchenko at a time when the country's economy is struggling.

Ms Tymoshenko claimed that a significant portion of $1.2bn (€860m, £803m) in central bank emergency financing recently granted to Nadra, a troubled Ukrainian bank, had been used for currency speculation. The hryvnia was down as much as 12 per cent against the US dollar at one point last week.

Mr Firtash, who recently announced plans to buy Nadra, said he intended to take legal action against Ms Tymoshenko "for the groundless accusations and attacks against him personally".

Mr Yushchenko responded by accusing Ms Tymoshenko of mishandling the economy.

This most recent spat between the one-time Orange Revolution allies could complicate crucial energy talks with Moscow, which has threatened to cut off Ukraine's gas supplies for next year citing debt arrears.

Ms Tymoshenko has produced no evidence to back up her allegations, but called for an independent investigation by London-based Global Witness, a non-profit organisation that exposes corruption.

A Global Witness probe published in 2006 questioned the transparency of Rosukrenergo, the Swiss-registered gas supplier co-owned by Mr Firtash and Gazprom.

Mr Yushchenko last week accused Ms Tymoshenko of mishandling energy negotiations with Moscow. She blames the president for interfering with plans to remove what she calls "corrupt" middlemen from the multibillion-dollar gas business between Ukraine, Russia and central Asia.

The rivalry between Ms Tymoshenko and Mr Yushchenko has mounted as they prepare to square off for the presidency next year. Analysts worry infighting could complicate Ukraine's ability to deal with its financial difficulties.

Associated Press

Ukrainians protest financial crisis 

22 December 2008

11:00

 

KIEV, Ukraine (AP) - 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.

 

-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: application/ms-tnef
Size: 20366 bytes
Desc: not available
URL: <http://clevelanduzo.org/pipermail/uzonews_clevelanduzo.org/attachments/20081222/684060cb/attachment.bin>