UKRAINE BUSINESS NEWS - TEN ARTICLES
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1. IMF COULD DECIDE ON ALLOCATION OF NEXT TRANCHE TO UKRAINE LATE IN NOVEMBER OR EARLY DECEMBER, SAYS DPM NEMYRIA
UkrInform - Economic News online, Wed, November 11, 2009
2. IMF MISSION CHIEF: IMF EXPECTS UKRAINIAN AUTHORITIES'
CONSENSUS ON IMPLEMENTATION OF COOPERATION PROGRAM
Interfax Ukraine, Kyiv, Ukraine, Monday, Nov 9, 2009
3. UKRAINIAN POLITICIANS WILL NOT GIVE IMF A CHANCE SAY EXPERTS
UNIAN News, Kyiv, Ukraine, Wed, November 11, 2009
4. HORIZON CAPITAL IS IN TALKS ON INVESTING IN NEW PROJECTS
Interfax, Kyiv, Ukraine, Wed, October 7, 2009
5. MINISTER OF ECONOMY OF UKRAINE PRESENTS AWARDS IN
WASHINGTON, D.C. FOR OUTSTANDING SERVICE TO UKRAINE
Awards given to Andriy Bihun, Zenia Chernyk, Andriy Futey, Morgan Williams
Speech by Ukrainian Minister of Economy Bohdan Danylyshyn
Embassy of Ukraine to the USA, Wash, DC, Wed, Oct 14, 2009
6. UNITED STATES FIRM IMTC-MEI L.L.C. WINS TENDER TO
BUILD NEW PASSENGER TERMINAL AT LVIV AIRPORT
Interfax Ukraine, Kyiv, Ukraine, Wed, November 4, 2009
7. UKRAINE: HUMAN CAPITAL NEWS
Newsletter, Human Capital Group, Ernst & Young Tax and Legal Department.
Ernst & Young, Kyiv, Ukraine, Wednesday, 11 November 2009
8. MOLDOVA KEEPS FIGHTING FOR ATTENTION
Commentary By Vlad Spanu, RFE/RL, Wed, November 11, 2009
9. FIRST CANADIAN H1N1 MEDICAL AID SHIPMENT LEAVES FOR KYIV
Ukrainian Canadian Congress (UCC), Toronto, Ontario, Canada, Wed, Nov 11, 2009
10. U.S.-UKRAINE BUSINESS COUNCIL URGES PRESIDENT YUSHCHENKO TO VETO NEW LAW INTRODUCING MORATORIUM ON INCREASE OF PRICES OF MEDICINE
Joins with European Business Association (EBA) & Pharmaceutical Industry Associations
U.S.-Ukraine Business Council (USUBC), Wash, D.C., Thu, Nov 5, 2009
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1. IMF COULD DECIDE ON ALLOCATION OF NEXT TRANCHE
TO UKRAINE LATE IN NOVEMBER OR EARLY DECEMBER,
SAYS DEPUTY PRIME MINISTER NEMYRIA
UkrInform - Economic News online, Wed, November 11, 2009
KYIV - If the secretariat of the Ukrainian president, the National Bank of Ukraine and the Cabinet of Ministers agree on the implementation of the clauses of a cooperation program between Ukraine and the International Monetary Fund (IMF), then the IMF Executive Board could meet to discuss the possible provision of the next tranche of its loan to the country late in November or early in December this year, Ukrainian Vice Premier for European and International Integration Hryhoriy Nemyria has said.
“As soon as agreement is reached at the level of the IMF mission's management regarding a letter of intent, at least two weeks should pass before the IMF Executive Board can take a decision. Put it shortly, if we soon reach compromise and agree this with the IMF mission, then a meeting of the Executive Board could be held in two weeks. This could happen late in November or early in December,” he said.
Nemyria also said that the sides could reach consensus by reviewing some clauses of the state budget for 2010. The IMF approved the Stand-By Arrangement with Ukraine in November 2008 in an amount equivalent to about USD 16.4 billion, and allocated the first disbursement of USD 4.5 billion.
On May 12, 2009 Ukraine received the second tranche worth USD 2.8 billion. Part of that tranche, worth USD 1.5 billion, was sent directly to the national budget of Ukraine to finance the government's external commitments.
The third tranche amounted to USD 3.3 billion instead of the USD 3.2 billion planned earlier. The IMF initially planned to allocate the fourth tranche, worth 2.5 billion Special Drawing Rights (around USD 3.71 billion), to Ukraine on November 15, 2009.
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2. IMF MISSION CHIEF: IMF EXPECTS UKRAINIAN AUTHORITIES' CONSENSUS ON IMPLEMENTATION OF COOPERATION PROGRAM
Interfax Ukraine, Kyiv, Ukraine, Monday, Nov 9, 2009
KYIV - A key problem in the implementation of the economic program agreed between Ukraine and the International Monetary Fund (IMF) is the lack of consensus among the Ukrainian authorities, says IMF Mission Chief to Ukraine Ceyla Pazarbasioglu.
"For any economic program to be successful, there must be a minimum level of consensus," she said in an interview with the IMF Survey online published on November 4.
"When the economic program was designed a year ago, there was a broad consensus in Ukraine on the underlying policies. All branches of executive authority, civil society, and even the opposition expressed strong support for this program," she said.
"But the pressure of events and political developments means that consensus is now much harder to achieve. Without this, progress will stall, the recovery could be jeopardized, and people may lose confidence in the ability of policymakers to improve the economy," she said.
Moreover, she said, the submission by the Ukrainian government of an expansionary 2010 budget and the new social standards law signed by the president are not in line with the liabilities undertaken by Kyiv in cooperation with the IMF.
"…Our recent mission to Ukraine found that policies in some areas, including the submission of an expansionary 2010 budget and the new social standards law, threaten these gains," she said. According to her, if the social standards law is implemented as voted, it could cost as much as 7% of GDP in 2010.
"Even with a change in the law as suggested by the president - which would limit indexation to low-wage workers - we estimate the cost will be as much as 2.5% of GDP, a very large addition to Ukraine's budget deficit," she said. "However you calculate it, the country simply cannot afford this."
Moreover, she said, the Ukrainian government has submitted a draft 2010 budget that would lead to a deficit of almost 8% of GDP, far above program commitments. (3-4% of GDP, Interfax-Ukraine note).
"We stand ready to continue our help, of course, should Ukraine choose to go on with the program and implement the policies needed now to build on the early gains," Pazarbasioglu said. "But there is serious disagreement among the authorities on how to proceed. We hope that they can shortly reach consensus. "
The IMF Mission Chief said that protecting the poor, the unemployed, and the most vulnerable is a priority for the fund. "A sizable part of our funding has
been directed toward ensuring timely payment of wages and pensions by the government," she added.
"But we need to face reality—the availability of financing places clear limits on spending increases," she said. "In 2010, the government committed to raise wages and pensions in line with expected inflation. This would imply a 10% increase." "A larger increase cannot be financed without resorting to inflation or significant downsizing of the public sector workforce," she added.
Commenting on cooperation between the IMF and Ukraine at a press conference in Kyiv on November 9, Ukrainian Vice Premier Hryhoriy Nemyria said that IMF has not refused to continue to cooperate with Ukraine until the end of the presidential campaign in the country.
"The International Monetary Fund was and is ready to continue its cooperation with Ukraine without waiting for the end of the presidential election in Ukraine," he said.
He said that at 1405 on November 9 he had had a phone conversation with IMF Managing Director Dominique Strauss-Kahn, who noted that his statement on such a possibility [the end of cooperation with Ukraine] had been misinterpreted by the media.
Nemyria said that a key condition for continuing cooperation with the IMF and receiving the next tranche by Ukraine is the need to draft a joint position on this issue in Ukraine.
"This will depend on when the government, the National Bank of Ukraine … and the Presidential Secretariat reach agreement on the minimum parameters required to continue the program [of cooperation with the fund]," he said.
Nemyria said that one of the greatest difficulties in talks is the law on a rise in social standards, which was adopted by the Verkhovna Rada and signed by the head of state. He said that the adoption of this law foresees a budget deficit of 3-7% in the state budget for next year.
He also said that the fund described as "regular" the situation with the implementation of an IMF demand for a rise in minimum gas tariffs for the population and municipal heat suppliers. "The fund doesn't insist on this [rise in these tariffs] as an urgent measure required to continue the review [of the cooperation program]," he said.
Nemyria said that the government would do all it can to reach understanding with the National Bank of Ukraine and the Presidential Secretariat on the need to continue cooperation with the fund.
In particular, Prime Minister Yulia Tymoshenko ordered the holding on November 10 of a meeting of the monitoring committee on the implementation of Ukraine's cooperation program with the IMF in order to discuss the steps required to continue this cooperation. Representatives from the Presidential Secretariat and the National Bank of Ukraine were invited to the meeting.
Nemyria also said that he had spoken with representatives of the European Commission on the possible provision of a EUR 610 million loan to Ukraine. He said that this sum could be provided to the country after the continuation of the cooperation program with the IMF.
He said that the loan would be allocated in three tranches. The provision of the first tranche, worth EUR 110 million, has already been agreed with all of the EU agencies, he said. The allocation of the second and third tranches, worth EUR 500 million, would require additional confirmation. If Ukraine gets the next tranche of the IMF loan, the respective funds could be sent to the country by the end of this year.
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3. UKRAINIAN POLITICIANS WILL NOT GIVE IMF A CHANCE SAY EXPERTS
UNIAN News, Kyiv, Ukraine, Wed, November 11, 2009
KYIV - According to a press release passed to UNIAN by the Gorshenin Institute, it is very unlikely that there will be a consensus reached between the branches of Ukrainian government before the presidential elections. Such was the experts’ opinion expressed in the survey regarding cooperation with IMF carried out by Gorshenin institute.
IMF has refused to give Ukraine the forth tranche of the stand-by loan. IMF Chief Dominique Strauss-Kahn said that the Fund will continue cooperation with Ukraine if there is a consensus between all government branches which will most likely happen only after the presidential elections.
[1] Director of Gorshenin Institute Kost Bondarenko is sure that consensus in the Ukrainian Government regarding cooperation with IMF is very unlikely today because of the presidential elections. According to the experts IMF decided to deny Ukraine the forth tranche because it has adopted a new law that increases the standards of living.
Despite the fact that IMF chief is a French socialist the Fund calls on the countries-borrowers to limit social benefits for their citizens. Especially in the time of economic crisis. Dominique Strauss-Kahn understands very well that increase of benefits, salaries, social security and other payments will lead to economic collapse of developing countries, including Ukraine.
That’s why IMF can not give new tranches to unstable countries, noted Mr. Bondarenko. He also added that the consequences of such policies for Ukraine are very multi-dimensional.
On one hand Ukraine is in dire need of this loan, most of all to pay for Russian gas. On the other hand speaking of political dividends, today the Party of Regions can celebrate a small victory. They have tripped Tymoshenko’s Cabinet. It is though difficult to assess the impact of this situation on the future of Ukrainian economy. Any loan is a two headed animal. In the short run Ukraine gets certain capabilities and instruments. In the long run – any debt for any country is a heavy burden, says Mr. Bondarenko.
[2] President of the Center for Social studies “Sofia” Andrey Yermolayev thinks that the chances that Ukrainian politicians will find a common ground before the elections are very low. May be they will have consultations that will result in a declaratory document, let’s say a letter to IMF, for instance. But it is imperative that legislators support such effort.
Rada members are the only guarantors that any promises given by the Government are supported by legislation and reflected in the Budgets for 2009 and 2010. It is a possible but very unlikely situation.
According to the expert, suspension of cooperation with IMF for Ukraine means failure of the Budget 2009. There is a real danger that the Budget will suffer from serious deficit – federal salaries dept will grow and there is a risk of destabilizing the Retirement Fund which is mostly dependent on the Budget subsidies.
The only way to strengthen national Budget today is emission. That is why Tymoshenko and her colleagues have been actively criticizing Yuschenko and the National Bank for blocking different mechanisms of financing the Government and in particular its work in the process of forming the Budget.
I think neither the President nor the National Bank, nor the opposition will allow the Cabinet to use emission mechanisms and therefore we’ll suffer very serious consequences at the end of the year. The expert thinks that political opposition will benefit immensely from this situation having scored additional arguments against Tymoshenko. Unfortunately it might have a very negative impact on Ukrainian economy.
Budgetary collapse is a very negative signal and will have dire consequences for the population, which in the state of permanent pandemics and shock might end up without proper budgetary back up. According to the expert the fact that Ukraine is not a “clean” borrower in the eyes of IMF will send a negative message about our country to the international community.
[3] Head of the PR Group “Polittech” Tara Berezovets does not see the possibility of agreement between Ukrainian Government branches necessary to continue cooperation with IMF. And because it was the President’s and the Party of Regions’ agenda to cease cooperation with IMF, that’s why they will not compromise and certainly will not agree to any negotiations with the third parties, namely the Government, says Berezovets. According to the expert, trust to Ukraine on the part western investors is very dependent on Ukraine’s relations with IMF.
The key statement is that IMF will resume cooperation with Ukraine after the elections. In other words IMF recognizes that the obstacle for cooperation is not economic of even political situation in Ukraine, but rather, even though the name has never been said, the current president Yuschenko, thinks Mr. Berezovets.
He added that the only way to implement the new law that increases the standard of living in Ukraine is to start printing more money. We are not getting any cash from IMF and on top of that we have to spend more because of inflation. Now the idea of introducing the Sate of Emergency is getting more and more reasonable - no money from IMF, budget deficit, payments dept. The situation might remain stable till February but in March we’ll experience the peak of hardship.
That’s why today Yuschenko and Yanukovych will try to do everything in their power to delay elections. So that in the following months Ukraine suffers fully from the economic crisis, so that the people experience first hand budget deficit not getting paid. Who’s winning in this scenario? Yanukovych, says T. Berezovets
[4] Director of Kiev Center for political studies and conflict sciences Mihkail Pogrebinsky thinks that, however small, the possibility of consensus still exists. Victor Yuschenko is always very attentive to what the US want from him. IMF is the US. Therefore if he gets a piece of advice to behave, he will abandon his position, says Mr. Pogrebinsky.
According to the expert, the reason why IMF has denied Ukraine the fourth tranche is the latest law that increases the standards of living. One can justify the populist actions of opposition but the actions of the President who has signed this law can not be excused.
It seems to me that the President should bear all of responsibility having let this piece of legislation pass, because it is in his direct interest – to create problems for the Government. Now the Government will have to find the way out of this mess because Ukrainian budget heavily depended on IMF loans. I don’t know how Tymoshenko will find the solution but she’s facing a very difficult situation, says Pogrebinksy.
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4. HORIZON CAPITAL IS IN TALKS ON INVESTING IN NEW PROJECTS
Interfax, Kyiv, Ukraine, Wed, October 7, 2009
KYIV - Horizon Capital, which manages funds with total capital of over $600 million, is in talks on possible investing in four new projects, a managing partner at Horizon Capital, Natalia Jaresko, has said. "It's time to hold serious talks," she told Interfax-Ukraine.
Jaresko said that Ukrainian businessmen have come to a conclusion that they need additional funds to overcome crisis. She said that the said fact and a fall in prices to the realistic level make it interesting for private equity funds.
She said that even in the crisis conditions and recession,there are sectors that show good results and good potential for growth,in particular,the sector oriented on consumer goods and business services (Business to Business, b2b).
Jaresko said that in the medium term,the farming and construction material sectors would be interesting in Ukraine,and later the financial sector would be subject to investment. She said that over one month the company plans to report on a first project,although it would be realized in Moldova,while three other projects are located in Ukraine.
Horizon Capital manages the Emerging Europe Growth Fund (EEGF ),Emerging Europe Growth Fund (EEGF) and Western NIS Enterprise Fund (WNISEF), with a combined volume of over $600 million.
FOOTNOTE: Horizon Capital is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org.
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5. MINISTER OF ECONOMY OF UKRAINE PRESENTS AWARDS IN WASHINGTON, D.C. FOR OUTSTANDING SERVICE TO UKRAINE
Awards given to Andriy Bihun, Zenia Chernyk, Andriy Futey, Morgan Williams
Speech by Ukrainian Minister of Economy Bohdan Danylyshyn
Embassy of Ukraine to the USA, Wash, DC, Wed, Oct 14, 2009
WASHINGTON, D.C. - Speech by Ukrainian Minister of Economy Bohdan Danylyshyn at the Ukrainian Embassy Reception in honor of the second meeting of the US-Ukraine Trade and Investment Council and ceremony to present state awards to leading members of the Ukrainian community in the U.S.)
Dear Friends!
On behalf of the Ukrainian government allow me to welcome all of you and thank you for the warm reception and opportunity to be with you today.
Our delegation came to the US with an important mission – to hold talks with our American colleagues in the framework of the second meeting of the US-Ukraine Trade and Investment Council.
Today we discussed a number of important bilateral trade and investment issues and identified areas for economic cooperation in the near future, such as: customs, tax, the banking sector, business development and support, agriculture, and others.
We stressed once again that Ukraine sees the US as a strategic partner. We are convinced that the possibility exists to strengthen cooperation in all spheres.
I would like to thank our American friends for their support of our joint work, for organizing this important event, and for their contribution to developing productive relations between the US and Ukraine.
Today I would like to recognize the President of the U.S.-Ukraine Business Council, Morgan Williams, for his tremendous support in building bilateral economic and trade relations between the US and Ukraine. In recent years the Business Council has grown into a powerful organization that includes over 110 American companies that are building business and trade relations between the U.S. and Ukraine and are investing in our country’s economy.
I would like to take this opportunity to express our thanks and deep respect to the U.S.-Ukraine Business Council, and Morgan Williams personally, for their hard work in organizing the First Annual International Forum on the Economic Development of Ukraine. I am confident that tomorrow’s Forum will be of the highest quality.
I would also like to thank the Ukrainian community in the U.S. for your concern for Ukraine’s future, your active role in protecting our national interests in the US, and for your initiative and support!
I now have the honor, on behalf of the Ministry of Economy, of presenting awards for personal contribution to increasing Ukraine’s prestige abroad, strengthening economic ties between Ukraine and the US, and establishing effective cooperation with numerous Ukrainian organizations in America to support Ukraine to:
- ANDRIY BIHUN – Certificate of Honor from the Cabinet of Ministers of Ukraine.
[President, The Washington Group; President, Global Trade and Development, Inc.] - DR. ZENIA CHERNYK – Medal of the 3rd Class from the Ministry of Economy of Ukraine;
[Chair, Healthcare Commission, Ukrainian Federation of America (UFA)] - ANDRIY FUTEY – Certificate of Gratitude from the Cabinet of Ministers of Ukraine.
[President, Andrew J. Futey & Associates] - MORGAN WILLIAMS – Medal of the 3rd Class from the Ministry of Economy of Ukraine;
[Director, Government Affairs, Washington Office, SigmaBleyzer; President/CEO, U.S.-Ukraine Business Council (USUBC)]
I would like to raise a toast to friendship between the US and Ukraine, peace and prosperity.
God Bless Ukraine!
God Bless America!
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6. UNITED STATES FIRM IMTC-MEI L.L.C. WINS TENDER TO
BUILD NEW PASSENGER TERMINAL AT LVIV AIRPORT
Interfax Ukraine, Kyiv, Ukraine, Wed, November 4, 2009
KYIV - The auction commission of the Ukrainian Transport and Communications Ministry has named U.S. company IMTC-MEI L.L.C. the winner of a tender for the construction of a new passenger terminal for Lviv international airport state company.
The head of the State Aviation Administration, Oleksandr Davydov, said at a press conference in Kyiv that the U.S. company has proposed to pay UAH 4.9 million for the right to build the terminal. He said that the initial price was UAH 1 million, and the auction bid increment was UAH 100,000.
Davydov said that an investment agreement with the winner would be signed within two weeks. According to the conditions of the agreement, the investor is to invest over UAH 1 billion in the construction of the terminal. The terminal should be built in the terms foreseen by UEFA. The approximate term for the completion of the construction is August 2011.
Davydov said that no later than three months before the completion of the terminal construction, the authorities and the investor would sign an agreement on the transfer of the airport complex to the management of the U.S. company for 30 years. In 30 years, the airport will be returned to state management or
transferred to an investor under a new agreement.
As reported, in September the Ukrainian Transport and Communications Ministry prolonged a tender to select an investor to build a new terminal at Lviv airport until November 4, 2009.
FOOTNOTE: IMTC-MEI L.L.C. is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org. Sean T Regan, Ph.D, CCE, CEP, MRICS, Vice President International Operations, IMTC-MEI, serves on the USUBC board of directors and is head of the IMTC-MEI operations in Ukraine and the region. USUBC offers our congratulations to Sean Regan and his colleagues at IMTC-MEI L.L.C. on winning the tender to build the new passenger terminal at the Lviv Airport.
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7. UKRAINE: HUMAN CAPITAL NEWS
Newsletter, Human Capital Group, Ernst & Young Tax and Legal Department.
Ernst & Young, Kyiv, Ukraine, Wednesday, 11 November 2009
KYIV - Ernst & Young Newsletter: Human Capital News Contents,
[1] The law on raise of the social standards came into legal force
[2] President of Ukraine by his decree suspended several resolutions of the Cabinet of Ministers of Ukraine regarding additional pension contributions of private entrepreneurs
PART ONE: The law on raise of the social standards came into legal force On 4 November 2009 the Law of Ukraine "On the Level of the Subsistence Minimum and Minimum Wage" of 20 October 2009 # 1646-VI was published. The Law legally takes effect at the date of its official publication. According to the Law, minimum wage will be as follows: starting from 1 November 2009 UAH 744
starting from 1 January 2010 UAH 869
starting from 1 April 2010 UAH 884
starting from 1 July 2010 UAH 888
starting from 1 October 2010 UAH 907
starting from 1 December 2010 UAH 922
The Law also envisages that the monthly subsistence minimum per person will be set at the following levels:
General figure For able-bodied individuals
starting from 1 November 2009 UAH 701 UAH 744
starting from 1 January 2010 UAH 825 UAH 869
starting from 1 April 2010 UAH 839 UAH 884
starting from 1 July 2010 UAH 843 UAH 888
starting from 1 October 2010 UAH 861 UAH 907
starting from 1 December 2010 UAH 875 UAH 922
Payroll cap is set at a level of 15 subsistence minimums for able-bodied individuals. According to the adopted Law payroll cap amounts:
starting from 1 November 2009 UAH 11,160
starting from 1 January 2010 UAH 13,035
starting from 1 April 2010 UAH 13,260
starting from 1 July 2010 UAH 13,320
starting from 1 October 2010 UAH 13,605
starting from 1 December 2010 UAH 13,830
Given the above, due to the payroll cap raise employers' actual salary expenses will be increased as well.
PART TWO: President of Ukraine by his decree suspended several resolutions of the Cabinet of Ministers of Ukraine regarding additional pension contributions of private entrepreneurs
As we earlier informed, on 28 September 2009 the District Administrative Court in the city of Kyiv suspended the Resolution of the Cabinet of Ministers of Ukraine "On Contributions to the State Mandatory Pension System by Private Entrepreneurs–Single Tax Payers" of 14.04.2009 # 366. The Resolution obliged private entrepreneurs–single taxpayers to make additional insurance contributions to the Pension Fund of Ukraine.
Ukrainian Government appealed the court’s decision, but it is still uncertain when the court hearing will take place. Until then the Resolution # 366 is suspended. Moreover, on 2 November 2009 President of Ukraine signed the Decree "On Suspense of Several Resolutions of the Cabinet of Ministers of Ukraine" # 890. The Decree suspends resolutions regarding additional pension contributions of private entrepreneurs.
The Decree suspends the following resolutions:
- On Application of Certain Regulations of the Decree of the President of Ukraine of 3 July 1998 # 727 for Private Entrepreneurs Performing Their Activity Outside of Ukraine in Context of the Worldwide Financial Crisis" of 5.03.2009 # 236;
- On Contributions to the State Mandatory Pension System by Private Entrepreneurs–Single Tax Payers" of 14.04.2009 # 366;
- On Amendments to the Resolution of the Cabinet of ministers of Ukraine of 5.03.2009 # 236" of 15.04.2009 # 454;
- On Payment of the Contributions to the State Mandatory Pension System by Private Entrepreneurs Who Chose Special Tax Regime" of 21.05.2009 # 505.
However, the Decree of the President of Ukraine # 890 comes into force after its publication.
President of Ukraine has also addressed the Constitutional Court of Ukraine with the respective query to consider whether the abovementioned resolutions of the Cabinet of Ministers of Ukraine constitutional.
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8. MOLDOVA KEEPS FIGHTING FOR ATTENTION
Commentary By Vlad Spanu, RFE/RL, Wed, November 11, 2009
The Republic of Moldova surprised many in April when youths took control of Chisinau's main square, Piata Marii Adunari Nationale (or "PMAN", which became one of the most "wanted" words on Twitter during those days). The young Moldovans protested against the Communist-controlled government’s way of conducting parliamentary election.
I was reminded of August 31, 1989, when hundreds of thousands of Moldovans took to the streets and forced the Soviet political elites to adopt a law reinstating Romanian as the republic’s official language and restoring the Latin alphabet. Both in 1989 and in 2009, few in the West were paying attention.
That August day in 1989 marked the culmination of a national civic movement that had been forming since late 1987. But there was virtually no support from the outside world. When some courageous Moldovans laid down on the street in front of Soviet tanks and successfully blocked a military parade being held to mark the anniversary of the Soviet revolution on November 7, there was no international media coverage.
Moldova's "Tiananmen moment" passed virtually unnoticed.
In the minds of most Moldovans in 1989, the country had aligned itself solidly with the emerging democracies in Poland, Czechoslovakia, Romania, the Baltic states, and elsewhere. But, unfortunately for them, the West considered Moldova small and insignificant -- a part of Russia's backyard, in fact.
The people of Moldova were on their own back then.
The outside world was caught by surprise again with the April protests. Pleas to CNN, Fox News, and other major networks to report on what was happening in Moldova were ignored. However, the protesting youths used new media and social-networking websites to thrust their country into the spotlight anyway.
The youths, mostly students, succeeded in forcing the ruling Communist Party to admit that the parliamentary elections were neither free nor fair and to adjust the results in favor of the opposition. They paid a high price for this success, as at least three protesters were killed and scores were injured in connection with the uprising.
The protests produced a chain of events that led to repeat parliamentary elections on July 29 that brought to power a four-party, Western-leaning, pro-reform coalition called the Alliance for European Integration (AIE). But the alliance controls only 53 seats in the 101-seat parliament, making it impossible for the coalition to elect a new president without at least eight votes from the now-opposition Communist faction.
When lawmakers convened on November 10 to try to elect a president, the Communist faction boycotted the poll. Doing so, they risk being viewed as obstructionist and possibly being punished at the polls if the country is dragged into yet another round of legislative elections.
The size of the Communist faction in parliament has been steadily declining, from 71 deputies in 2001 to 56 in 2005 and now just 48. The party faces a tough choice: either it must support the election of the AEI’s moderate candidate, Marian Lupu (who defected from the Communist Party in June), or it must face another round of elections that could result in even fewer mandates.
If the party goes for the second option, the country would have parliament speaker Mihai Ghimpu as acting president until the new elections are held and certified. Legal experts are still squabbling over when the new elections would be have to be held (as soon as in the spring of 2010 or as far as two years off), but these months or years with Ghimpu -- a veteran of Moldovan politics and an avowed anticommunist -- could be extremely annoying for the Communist Party.
Voting for Lupu might well be the less-bitter pill to swallow.
Regardless of how the current political standoff plays out, the AIE has a window of opportunity to push ahead with real reforms and set Moldova on the path of democratic and economic development. But it needs the active support of the international community to do so. The United States and the European Union have pledged political and financial aid to the new government, but their funds are mostly committed to long-term infrastructure projects.
The International Monetary Fund, on the other hand, is uniquely positioned to disburse funds to cover Moldova's large budget deficit, allowing the government to meet its domestic commitments. If, on the other hand, pensions and state-sector wages are not paid on time or if the government is unable to foster an economic climate that minimizes unemployment, the Communists will be quick to capitalize with populist slogans and could return in force following the next elections.
This month the world is celebrating the 20th anniversary of the fall of the Berlin Wall. But Moldova, the South Caucasus countries, Belarus, and Ukraine have not been as fortunate as the Central European democracies over the last two decades.
Now, with the West’s attention focused on Iran, Afghanistan, and elsewhere, the chances are great that the emerging democracies of the Baltic-Black seas region might again be denied the international support they need and deserve. Just as in 1989, it will take vision and leadership to tear down the walls and barriers that still exist in this corner of Europe.
NOTE: Vlad Spanu served in the Moldovan foreign service from 1992 until 2001 and is the president of the Washington-based Moldova Foundation. He co-authored "The Historical Dictionary of Moldova." The views expressed in this commentary are the author's own and do not necessarily reflect those of RFE/RL.
LINK: http://www.rferl.org/content/Moldova_Keeps_
Fighting_For_Attention/1875344.html
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9. FIRST CANADIAN H1N1 MEDICAL AID SHIPMENT LEAVES FOR KYIV
Ukrainian Canadian Congress (UCC), Toronto, Ontario, Canada, Wed, Nov 11, 2009
TORONTO, Ontario, Canada - The first Canadian relief shipment of H1N1 medical supplies left this past Monday evening from Toronto's Pearson Airport bound for Kyiv, Ukraine. The shipment was organized by the Canada Ukraine Foundation (CUF) in conjunction with the Ukrainian Canadian Congress (UCC) subsequent to an urgent appeal by the Ukrainian Ambassador to Canada, Ihor Ostash, just over a week ago.
The shipment consisted of some 4,000 pounds of urgently needed medical supplies that included masks, surgical gowns, disposable gloves, hand
sanitizers, oxymeters and assorted other medical goods and equipment. Another 3,000 pound shipment is scheduled to leave today with more to follow in subsequent days. Future shipments will include antibiotics, anti-virals and other medications that are currently in short supply in Ukraine.
Bohdan Onyschuk, President of CUF, expressed his particular gratitude to Health Partners International for donating most of these supplies, as well as to Air Canada and Cole Freight Inc. for providing transportation and freight forwarding services for these shipments at no cost.
Ambassador Ostash and the Ukrainian Embassy staff in Ottawa were also praised for their tireless efforts in fast-tracking the clearance of these shipments with Ukrainian Customs and Ministry of Health officials in Ukraine.
The initial shipment was accompanied by Ostap Haweleshka, the former President of CUF, who will work with Ukraine's Ministry of Health to coordinate future shipments and ensure they are distributed in Ukraine to areas of most need.
The flu outbreak has reached pandemic proportions in recent days in Ukraine, with over one million Ukrainians affected and more than fifty thousand
hospitalized. The latest statistics issued by Ukraine's Ministry of Health, and confirmed by World Health Organization (WHO) officials currently working
in Ukraine, indicate that 189 people have died in the past week.
Although it is difficult to say how many of these are due to the H1N1 flu strain due to a lack of adequate testing facilities, most experts suspect it to be the primary cause. The rapid spread of the flu has prompted the government to close all schools in Ukraine have been closed down, cancel public events, and impose travel restrictions.
Fund raising efforts within Canada's Ukrainian community are continuing, with Bohdan Onyschuk indicating that the CUF is hoping to raise $200,000 to
$300,000 over the next week to fund future shipments.
TO DONATE TO THE UKRAINE PANDEMIC APPEAL:
Contact: www.cufoundation.ca, or by mailing donations to CUF, 203-952 Main Street, Winnipeg, MB Canada R2W 3P4. For more information, contact: Details on what is needed and how you can donate or help are available at www.ucc.ca or www.cufoundation.ca or you may contact Lesia Demkowicz at ucc@ucc.ca or tel: (204) 942-4627.
CUF Media Contact: Canada Ukraine Foundation. Bob Onyschuk Q.C.., Tel. (416) 369-4574, Email: bob.onyschuk@gowlings.com, www.cufoundation.ca
UCC Media Contact: Darla Penner, Telephone: 204-942-4627, Email: dpenner@ucc.ca, Website: www.ucc.ca. Ukrainian Canadian Congress, 203-952 Main Street, Winnipeg, Manitoba, R2W 3P4, Canada
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10. U.S.-UKRAINE BUSINESS COUNCIL URGES PRESIDENT YUSHCHENKO TO VETO NEW LAW INTRODUCING
MORATORIUM ON INCREASE OF PRICES OF MEDICINE
Joins with European Business Association (EBA) & Pharmaceutical Industry Associations
U.S.-Ukraine Business Council (USUBC), Wash, D.C., Thu, Nov 5, 2009
WASHINGTON, D.C. - The U.S.-Ukraine Business Council (USUBC) today called on the President of Ukraine, Victor Yushchenko, to quickly veto a new law recently passed by the Ukrainian Parliament (Verkhovna Rada) that introduces a moratorium on the increase of the prices of medicine.
USUBC joins with the European Business Association (EBA) in Kyiv and several pharmaceutical industry trade associations in strongly urging President Yushchenko to veto the drug price control legislation.
The new legislation is bad all the way around, USUBC said. The people of Ukraine will lose as there will be a severe shortage of critical medicines, the shelves in drug stores and pharmacies will be empty, businesses will lose money, many stores will be forced to close their doors, and major drug manufacturers will stop shipping needed supplies to Ukraine. Legislation like this never works and is always counterproductive according to USUBC. Ukraine is shooting itself in the foot big-time once again.
"The new law will lead to a crisis in the pharmaceutical industry and huge losses," the director of the European Business Association (EBA), Anna Derevianko, said at a press conference in Kyiv last Wednesday.
"Mr. President, we ask you interfere in the situation and employ the president's right to veto," said Petro Bahrii, the president of the Association of Pharmaceutical Producers, in a recent statement in Kyiv.
Nadia Chyslenko, president of the Pharmaceutical Professional Association, said recently the enactment of the law will result in closure of most of drug stores in the country and operation of the industry in the shadow.
Volodymyr Dudka, president of the Association of Pharmaceutical Distributors in Ukraine, assesses the moratorium as being absurd. "The law introducing the moratorium on prices is, in my opinion, as absurd as the law on the moratorium on devaluation of the hryvnia," he said.
The U.S.-Ukraine Business Council (USUBC) urged President Yushchenko to veto the legislation immediately in order to stop the severe disruption that has occurred in the marketplace. Winter is coming and the flu season has already hit Ukraine hard. Stability and order is needed in the marketplace, not unnecessary and major negative, misguided interventions by the government of Ukraine, according to USUBC (www.usubc.org).
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U.S.-Ukraine Business Council (USUBC)
1701 K Street, NW, Suite 903, Washington, D.C. 20006
Telephone: 202 437 4707; Fax: 202 223 1224
usubc@usubc.org; ww.usubc.org
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