"Ukraine will comply with all of its commitments envisaged by the protocol on joining the World Trade Organization, President Viktor Yushchenko said in a telephone conversation with WTO Director General Pascal Lamy." (Ukrainian Journal)

 "The Party of Regions will deny support to the WTO bills submitted by the BYUT faction without elaboration and implementation or appropriate measures to adapt Ukraine's agro-industrial complex to WTO conditions, the party MP Viktor Slauta stressed." (NRCU)

With Parliament not functioning, will Ukraine be able to enter into WTO as planned on May 16th? Have all the bills been voted on and passed in Parliament?

"Fitch Ratings revised Ukraine`s outlook to stable from positive, saying the country`s recent strong macroeconomic performance faces growing risks from accelerating inflation and a rising current account deficit, according to Thompson Financial. " (UNIAN)

"Ukraine drifted closer to the bottom of a global competitiveness index for 55 countries this year. According to international mass media, Ukraine`s rating slipped to 54 from 46 last year - beating just Venezuela - according to the index produced by the Swiss-based International Institute for Management Development (IMD)." (UNIAN)

Spotlight on the Biggest Privatization in Ukraine 

Since privatization is a big topic again with the fight between Yushchenko and Tymoshenko, I thought it would be worth looking back to see what's going on with Kryvoryzhstal, now Mittal Steel Kryvy Rih.

For background, this state asset was first privatized in an untransparent bid by Akhmetov and Pinchuk in Fall 2004 for $800mn, then reprivatized in November of 2005 in a fair and open bid that provided a massive amount more money for government coffers ($4.8bn: more than the previous 10 years of investment). It's been quite a while since I've seen big news about the plant, but if we're to decide what we think of Tymoshenko's new privatization proposals, knowing the current status of this key privatization will be important.

2006-2007 

In the spring of 2006 ran into troubles (some big troubles) with State Property Fund Chairwoman Valentyna Semenyuk. Taking into account that she fought against the privatization to Mittal Steel from the beginning (preferring, implicitly, the much less economically beneficial, nontransparent, and suspicious privatization to Akhmetov and Pinchuk), this was not an unexpected attack. However, her accusation that Mittal wasn't keeping the promises regarding wages that were part of the privatization deal did not seem to have been refuted by the company in the Ukrainiska Pravda article above, thought the company resolved to do better. Two days later, according to this article, the company raised the wages it pays its employees to the highest in the entire metallurgic sector.

Things also seem to have improved in fall of 2006, when Mittal Steel got a loan from the European Bank for Reconstruction and Development for $500mn to modernize the facilities. The company claimed to have already invested a further $85mn of its own money in the same effort. This article in New Europe states that the company managed to increase sales by 16% as the result of its efforst in 2006.

In 2007, the company bought a new coke battery, increased production in the first quarter, and submitted plans for further investment and growth, especially growth in sales in the Ukrainian market. A January 2008 report states that the company lifted output for 2007 year by 7%. 

Finally, the company is cited in this report on the Ukrainian steel market as the major factor in increasing competition in the Ukrainian steel production, and thus improving the market overall.

2008 

For it in 2008 is this conflict, in which it seems the company has defaulted on one promise to improve the situation for workers, as well as a number of lesser articles in the privatization agreement of 2005 (again coming into conflict with Semenyuk).

I originally looked back into this issue, because a friend of mine who knows people working in or around Mittal Steel Kryvy Rih told me that his acquantences were complaining that the new company was worse than the old one.

Does anyone else have more information on this? The track record in the articles of continued investment and growth looks good from a business standpoint. However, is this be happening without greatly improving the situation for workers? What's happened to the high wages they were reported to have been earning in 2006?

Thanks in advance for any article links you might have! 

Tymoshenko and Yushchenko's Loudest Confrontation Yet: Privatization

It used to be that Yushchenko would send uncountable directives over to Tymoshenko and she would blithely ignore most of them and work towards her own purposes while saying she "admires" the president. He would veto what she did, issue a new directive, and the process would start again.

Recently, things have degenerated.

The major sticking point is Tymoshenko's extensive privatization plan, the proceeds from which she intends to use mostly for government remunerations (or handouts) to holders of Soviet bank accounts made worthless in the aftermath of the fall of the Soviet Union. Yushchenko considers this an irresponsible use of the money, and accuses her of privatizing into the hands of her allies--the claim made by pretty much every party against a privatization by one of its opponents.

So, for example, since State Property Fund Chairwoman Valentyna Semenyuk has been one of the main agents blocking Tymoshenko's privatizations, Tymoshenko kicked her out and installed her own chairman, Andriy Portnov. Yushchenko reinstated Semenyuk, cancelled the privatizations, and issued a "yellow card" warning to Tymoshenko's government. The Constitutional Court overturned his decision, and Tymoshenko told Portnov to ignore it. Along a parallel track, the privatization of, for example the Odesa Pre-Port Plant has been ordered, suspended, ordered again, and again suspended. The Eurasia Daily Monitor has a summary of all the tit-for-tat.

In retaliation, it seems, BYT lined up with the Party of Regions and Tymoshenko said she supports a vote to decrease the President's power in favor of the Parliament (and she's been taking on a number of advisors from the defunct and unmourned SDPU(o) of Viktor Medvedchuk, though this may not be a retaliatory gesture as much as a tactical one). However, when Yushchenko saw that he lacked the support of the Constitutional Court and the Parliament, he backed down. His statement is a classic one of a politician accidentally saying the truth:

Let us not put to question which organization [of power] we need, but focus on the task of achieving, through dialogue, through the work of public commission, through public referendum, a system of counterweights which would ensure serene future for us and our children.

Exactly. Now why have you been wasting your time on this issue practically since you got into office?

Not that Tymoshenko or Yanukovych are any less to blame. The last link goes to an article in Dzerkalo Tizhnya: it's wordy, but overall a great article. The line that pretty much sums everything up:

Each of the three top Ukrainian political players more or less realize the need of the reforms, but all explain their slackness by the following logic: “Now preparations for the decisive battle are going on. What is of critical importance now is to garner as much resources and voter support as possible. It is imperative that sufficient financial, media and electoral reserves be built up. I will begin attending to the country’s salvation and development once I take the country’s top office for a long enough period”. The result is that Tymoshenko and Yushchenko are competing in populism, while Yanukovych, in the absence of State resource, is busy with NATO and language-related issues. This provides an explanation as to why we keep making the same mistake, which is because we make no headway. A country cannot move ahead unless and until the main state and public challenges are correctly identified and begun to be dealt with. Purely personal and corporate interests of policy makers cannot provide enough progress to drive us away from the same old mistake.

Speaking of wasting their time on political games while gas and inflation crises loom...

The Kyiv Mayoral Election vs. Macroeconomics

Taras Kuzio, writing in the Eurasia Daily Monitor, thinks BYT's candidate in the Kyiv mayoral election, Turchynov, will be able to get past Klitchko and Chernovetsky, citing corruption charges against both of the latter. I still fail to see how Turchynov is going avoid similar charges sufficiently to overcome the huge gap in public support between himself and the main contenders--particularly since there will be no runoff. Not that we should want Chernovetsky to win (which recent polls think he might, using the same tactics as last year).

This mayoral election is the biggest distraction from the two main problems for Ukraine, both of which are economic: inflation and fuel price hikes. 

While Tymoshenko was certainly overstating things when she said her government was getting the highest appreciation in the world and holding inflation policy unchanged will be enough, it is true that she was praised by the WTO.
The IMF was more moderate in its praise. In this report it did not actively argue against her privatization plan, but it definitely suggested holding back at least some of the money thus earned to promote a more balanced budget (meaning less going to Tymoshenko's handouts). Another one of its main points is that the hryvnia should be allowed to float against the dollar (meaning appreciate, in the current economic climate). According to the Ukrainian Journal, the NBU seems interested and Tymoshenko has reigned in her criticism of the bank on at least this issue. The WTO and IMF both make the situation with inflation seem less dire than Dzerkalo Tizhnya seems to think it is, but DzT bases more of its assessment on an expected massive fuel price hike from Russia (something I also think is imminent, and the IMF notes as a potentially major problem).

Two More Good Items 

One alternative to politics-watching is this entry on Ukrainiana about Chernobyl. It includes Taras's own story from living (six years old) in Kyiv at the time. It also is heavily laden with YouTube videos related to the event.

Another wonderful and unrelated article by John Marone at Eurasia Home praises the introduction of national standardized university examinations. One step forward for transparency, one step backward for corruption.

BYuT and NUNS fight over city politics, the nation gets closer to crisis

February and part of March were the Party of Region's chance to waste everyone's time blocking parliament with their NATO Circus of Obstructionism. The end of March seems to have been burnt up looking for the next issue for politicians to focus on. Now it's April and they've finally found something to keep themselves from addressing any of the multiple looming disasters—the Kyiv Mayoral Election.

NUNS is the less popular party, but is pushing for the vastly more popular candidate in this election: Klitchko. BYuT's candidate is Turchynov, who has about 6% popularity to Klitchko's 31%. That means that if Tymoshenko wants him to win she'll have to spend massive amounts of time and political capital to do so. So far she doesn't seem to have been deterred at seeing what PoR earned for its anti-NATO efforts on a national level—a ten percent drop in popularity and repeated local election losses to Bloc Yulia Tymoshenko.

Certainly Baloha and his new gang (a breakaway from NUNS) haven't acted constructively and won't do so in the future. But NUNS bleeds votes every election because of their pettiness and unprofessionalism. It's BYuT, which is stronger and more politically savvy that will need to compromise here, because there are much bigger national problems her Cabinet needs to be addressing.

Inflation

Thank's to IIU's blogging, readers here already know that inflation is a big problem that's getting worse. Years without reform, worldwide price increases for foodstuffs, government-on-government increases in unsupported payouts to voters (the most recent being Tymoshenko's payments on Soviet accounts) have all resulted in 26% inflation this March.

As with other issues, NUNS and BYuT are working at cross-purposes. Tymoshenko's payouts went through, but the privatizations she proposed to use to generate the money to pay for them were vetoed by Yushchenko. She's tried to get rid of a longstanding land auction ban which she also thinks could improve economic growth (I do, too) and has again been vetoed by Yushchenko. I would be less apt to think Yushchenko was simply playing spoiler if I saw any indication that he has a better plan instead of his usual vague generalities.

Tymoshenko has said the government going to stop inflation in five to six months. To do this will take actual reforms, though, and that means working with NUNS. That may not be possible under any circumstances, but fighting over the Kyiv mayor is the one way to ensure defeat.

Gas Price Hikes

RosUkrEnergo is still hanging on in Ukraine-Russia gas deals despite Tymoshenko's opposition. She is claiming a victory anyway by saying that the deals will happen on Russian soil so it is technically "out of the Ukrainian market", but it looks from this angle like she's trying to save face after failing to eliminate it.

Though Russia has been able to keep its intermediary (and its active push to keep RosUkrEnergo throughout the negotiations last month confirms that it is, indeed, Russia's preferred intermediary), this won't stop Ukraine's gas prices from increasing significantly in the next few months. The ultimate driving force will be simple, rational self-interest: why sell at under $200 per m³ to Ukraine when Europe will soon be paying over $300 per m³ to Europe?

The price rise has already been foreshadowed: a month ago Russia increased the price it pays Central Asia for gas. This was not out of generosity: it was a revision to preempt hard bargaining by Central Asia, or (much worse for Russia) actual progress on alternative gas routes to Europe that don't include it (one of them is Tymoshenko's White Stream project, lauded by The Economist, which would be a great use of her considerable political skills if she weren't too busy in Kyiv). Russia's price increase is likely to be passed on to Europe in the near future, and Ukraine should not expect to be far behind.

We should not be distracted from this issue. Yes, another Russian general has threatened to attack Ukraine militarily (and with "other methods" as well), and responding in a professional manner was important. Yes, Kommersant claims Putin said Ukraine "isn't a real nation" and it will "cease to exist" if it joins NATO (a claim his government has not refuted). Ukrainian politicians should remember this when dealing with Russia (Hey, Yanukovych, you've been shouting a lot about Ukrainian national sovereignty at anti-NATO rallies—refresh my memory, when did any NATO ally threaten that as much as Putin just did?). Nevertheless, the real motive force in the gas sphere will be the $100 per m³ price differential. Either Russia will take payment in cash, or in ownership of Ukrainian energy assets, but it won't sit for long without payment.

I don't know when the hike will come. Gazprom may not know, and maybe not even the Russian government. But since the Russian government doesn't like NATO and doesn't think Tymoshenko is going to give it anything in exchange for the discount pricing, the hike will certainly come this year. If Russia is looking to improve its chances of getting paid, it may hike them this summer or wait until inflation is more under control, so it doesn't catch Ukraine when it is more desperate. If it wants to shake Ukraine up more it may load on the hike about the same time that inflation problems come to a head.

Not Even Together Enough To Host A Soccer Match

Inadequate preparation for Euro 2012 should be a big issue. There is $25 billion more investment that needs to be made, Ukraine's reputation is on the line—this should be a cause for major concern. But, because the government has gotten into an inflationary and budgetary mess that dwarfs even this event, all that I'll do is note that it's still a problem. I will add, though, that it particularly unhelpful to see Yushchenko blithely state that everything is going smoothly despite warnings from Ukraine's host partner Poland and the Euro 2012 committee.

Tymoshenko Should Support Klitchko 

Below inflation, gas prices, Euro 2012, somewhere under corruption in public transportation, is the Kyiv mayoral election. And yet, the politicians of an entire nation are occupying themselves with this single city election.

Tymoshenko doesn't need to look very far to know what she should do in this situation: all she needs to do is remember her own decision ahead of the 2004 presidential election.

In 2004 she gave up her own candidacy in order to support Yushchenko, despite her ego and despite the animosity between them that is unlikely to have emerged fully-formed in January of 2005. The reason she did so was that she did not have a real chance at the presidency (her public popularity was in the low teens, I believe), but Yushchenko needed help to overcome his opponent Yanukovych. Divided, their two parties could have both lost a legitimate election to Yanukovych. In doing the right thing, Tymoshenko also earned enough voter support to improve her political rating far beyond anything she had had thusfar.

Tymoshenko should support Klitchko. Like Tymoshenko in 2004, Turchynov in 2008 is little more than a spoiler. This is especially true since the mayoral election, unlike the presidential, is decided without a runoff (though BYuT is trying to change this). If Turchynov and Klitchko fight one another, it is likely that both will lose to to Chornovetsky, whi is still polling above 30% popularity.

In a real, monetary way, Ukrainians cannot afford to watch BYuT and NUNS continue to squabble. If Tymoshenko makes the magnanimous step here, not only will it improve the nation's chances in the upcoming crises, but likely result in voters rewarding her as they did after 2004.

"Ukraine's parliament ratified a protocol on joining the World Trade Organisation on Thursday, clearing the final hurdle to membership after more than 14 years of negotiations. A total of 411 members in the 450-seat assembly approved the protocol, signed by President Viktor Yushchenko in February after the WTO said the former Soviet state had met membership conditions. Membership of the WTO takes effect 30 days after ratification." (Reuters)

Update: 5 more laws have to be passed for Ukraine to be able to enter into WTO.

"Ukraine’s inflation rate topped 26% in March, propelled by surging food prices and the government’s largesse. Although high food and energy price inflation are global phenomena, Ukraine’s situation is being made worse by budgetary policy. Moreover, the political climate reduces the likelihood of policy changes to meet the inflation challenge. ... Although the government tends to stress that high inflation is the unavoidable outcome of high food and energy prices globally, the authorities are doing their best to delay the impact of import-price inflation. Utility tariffs, for instance, are rising at a high single-digit rate this year. If the full cost of the gas-price hike instituted this year had been passed on, utility price inflation would be well into double digits. Instead, municipal budgets have borne much of the burden--this is a situation that cannot continue indefinitely, particularly as further import price rises are inevitable in 2009. If consumer prices fully reflected the cost of imported energy, inflation would be running even higher. ... As a result, there is no chance of meeting the official inflation target; most likely, price growth will be at or close to double that level." (The Economist)

"The hryvnia rate fell by 0.5 kopeck in interbank trading on Monday, to 5.0 UAH/USD after falling on Friday. ...  The National Bank of Ukraine did not enter the market.  According to market participants, most of the transactions were concluded at the exchange rate close to 5.0 UAH/USD." (Ukrainian News)

"Let the hryvnia exchange rate appreciate to contain Ukraine`s inflation. Ukraine`s inflation has got out of control. In February, it surged to no less than 22 percent over February 2007, doubling from 11.6 percent in 2006. This inflation crisis is Ukraine`s most urgent economic problem. Unlike in the 1990s, the problem is not the budget, which is close to balance. Instead, the main culprit is the inept exchange rate policy." writes Anders Aslund (UNIAN)

"In March, the consumer prices rose by 3.8%. Ukrainian News learned this from a statement by the State Statistics Committee. In particular, the consumer prices on foods and soft drinks grew by 5.6% in March, the prices of housing and utility services grew by 0.9%, and the health care services grew by 1.6%, the transport tariffs rose by 3.9%. In January-March the inflation rate totaled 9.7%. Compared to March 2007, in March 2008 the inflation rate rose by 26.2%." (Ukrainian News)

"The Ukrainian people sold $129.1 million more in hard currency in March than they bought, while in February they bought $668.2 million more than they sold, according to a statement from the National Bank of Ukraine." (Ukrainian Journal)

"Liquidity measures must be eased for economic growth, NBU says" (Ukrainian Journal)

"Ukrainian Verkhovna Rada (Parliament) Chairman Arseniy Yatseniuk is hoping that, in the course of two plenary weeks (April 8 - 11 and April 15 - 18), the parliament will adopt and ratify all documents and the protocol required for entry in the World Trade Organization.  President Viktor Yushchenko is proposing ratification of the protocol on Ukraine's accession to the World Trade Organization. Ukraine and the WTO reached membership agreement on February 5." (Ukrinform)

"A U.S. judge ordered a former Ukrainian prime minister on Friday to pay nearly $19.5 million to a Ukrainian businessman who said the politician demanded cash and half ownership of his firm in exchange for favored treatment.

Pavlo Lazarenko, who served as Ukraine's prime minister from 1996 to 1997, was convicted in U.S. federal court in 2004 of using his position to extort millions of dollars from his country and then launder it through California banks. The indictment in the complicated and slow-moving case came down in 2000. During the trial businessman Peter Kiritchenko [a former Soviet trade official who was a Communist Party member] testified that he gave Lazarenko tens of millions of dollars and ownership of half of a company to help expand his firm. "I agreed to give him 50 percent of the profit and 50 percent of the company. I didn't see any other way to develop the company," Kiritchenko testified in 2004. He later asked for a court order for Lazarenko to give back the money, and on Friday U.S. District Judge Martin Jenkins agreed the former prime minister should return it." [add. to story is mine](Reuters)

President Yushchenko recently made changes to the oversight committee of Oschadbank (ukr UNIAN) (ukr President website) appointing two people from the Presidential Secretariat and replacing Moroz with Rybachuk.

"The bloc of Yulia Tymoshenko undertook obligations to return all frozen deposits of former OschadBank of USSR during two years after coming to authority." (Tymoshenko website)

Excellent paper outlining hx and from the Oschadbank website.

Back in the news again, this time for using Hitler rather than Stalin, on its billboards UNIAN, Metro, Utlak, RIA Novosti.

"Prime Minister of Ukraine Yulia Tymoshenko hopes that already next week the Verkhovna Rada of Ukraine ratifies all documents necessary for Ukraine’s accession to the WTO. She announced this at her meeting with the diplomatic corps." (eGov Monitor) (ukr UA Gov Portal)

Ukraine is in debt for 2 billion USD for gas. PM Tymoshenko and delegation is being sent by the President to Moscow for negotiations. (ukr UNIAN) What will it be like next year when prices are expected to be at least $320?

"Direct investments" from Ukraine to the beautiful island of Cyprus, rose in 2007 from tens of millions to billions of USD. "the economic showing soared due to the growth of Ukraine’s investments to Cyprus – from US$10.3 million, as of January 1, 2007, to US$5 billion 825.5 million, as of January 1, 2008." (UNIAN)

Because tariffs have increased but there have not been corresponding increases in the budget, 16 separate military divisions in the Ukrainian armed forces have now been cut off from electricity and gas, (no more heat or hot water) because of debts. (ukr UNIAN) Update: Minister of Defense Yekahnurov has spoken with the President regarding the situation which lead to the gas and electricity being shut off. (ukr UNIAN)

While PoR politcians are actively demonstrating against the Secret Services of Ukraine and their seizure of items from the Mayor of Kharkiv's office (Dobkin of youtube fame.) "Ukrainian Security Service (SBU) investigators brought a criminal case on the fact of embezzlement of state money by means of misuse of office, which was committed by Kharkiv City Council officials. According to the SBU press-center, the crimes were discovered during the planned inspection of the financial and economical activities of the Kharkiv Oblast Council, which was carried out by the Control-Revision Department in the Kharkiv Oblast. SBU established facts of state money embezzlement at nearly 1.5 million hryvnias [US$ 300 thousand]. On the whole, the inspection revealed in the Kharkiv City Council activities different money crimes at total of 2.4 million hryvnias [US$ 480 thousand]." (UNIAN) And banners were posted in the Parliament denouncing the SBU. Yanukovych is threatening that the Parliament will again be blockaded starting tomorrow (for an unknown period of time.) Circus of Obstructionism is back.

"Speaking during a visit to Brussels after the announcement, Ukrainian President Viktor Yushchenko welcomed the agreement with Gazprom but noted that parts of the deal still had to be "assessed and accepted."

The president's press office later said Yushchenko had called for a meeting with Ukrainian Prime Minister Yulia Tymoshenko, who has been heavily involved in the gas negotiations with Russia. Under the agreement, Gazprom said Ukraine will meet a Russian demand that gas deliveries so far in 2008 will be paid for. Starting this month, Ukraine will no longer make gas payments via opaque intermediaries criticised by Ukraine's leadership, it added.In clauses that analysts said could prove more controversial for Ukraine, the deal said Gazprom will supply Ukrainian industries directly from April and hinted at price hikes for imports from 2009. ...

The price for that gas will be 315 dollars per 1,000 cubic metres. Naftogaz explained that there would be no payment as such but that the 1.4 billion cubic metres of gas delivered by Russia in January and February would effectively be worked out through reduced supplies going forward. Gazprom said Ukraine will also pay, via RosUkrEnergo and another subsidiary, UkrGazEnergo, for deliveries of 5.2 billion cubic metres of Central Asian gas that were made in January and February. But from March until the end of 2008, the payments will be made directly by Naftogaz at a price of 179.5 dollars per 1,000 cubic metres, in line with demands made by Yushchenko ahead of the talks, the statement said. ... "We don't think the potential increase in Central Asian gas would have any effect on Gazprom but it would have a very significant, almost devastating, effect on Ukraine if it happens," said Kushnir from Deutsche Bank." (AFP) For a slightly different report of the story check out Bloomberg.

For more go to Kremlin Inc (which I am happy to say has gone up the Google scale :)  

"We consider Ukraine as a part of the European economic landscape,” (ERT Chairman Jorma Ollila) said. In his opinion, Ukraine’s accession to the WTO would be the first significant step in Ukraine’s advancement to European markets..." (UNIAN)

Yep, Ukraine is still not actually completely in WTO. "Ukraine will have to ratify the deal by 4 July 2008. Ukraine will become a member 30 days after notifying the WTO Secretariat of this ratification." (WTO website) 

"The National Bank of Ukraine has proposed that the Cabinet of Ministers raise this year's annual inflation forecast from 9.6% to 12%." (Ukrainian News)

"Implementation of inflation targeting comes with several key conditions: government support, effective inflation policy by the National Bank and the National Bank’s independence in action. Under such conditions, the National Bank will be able to maintain a low level of inflation rate as well as interact with society on matters connected with implementation of inflation targeting. ..." [In addition to numerous recommendations] "... First of all, the interference of the government in the process of setting prices should be reduced so that inflation can reflect the general economic correlation between supply and demand." (Mirror Weekly)

"Yushchenko, who called the inflation “very serious,” demanded a concerted effort from the government and from the National Bank of Ukraine to stop the inflationary pressure. The president specifically warned the government against using administrative tools. But the government’s anti-inflationary plan contains a number of administrative measures, including controls on prices of power, natural gas and water supplies to households, according to a person familiar with the plan. The plan also anticipates keeping budget the deficit within 2% of the GDP this year, which is in line with Yushchenko’s demand, and easing imports of some goods, such as grain and gasoline, to allow greater competition and to drive prices down, the person said. But the plan doesn’t call for curbing social payments, the feature of the Tymoshenko government program that independent economists say is probably the main reason behind the rising inflation this year. The developments put greater pressure on the NBU to hike its key interest rates again this year, following a dramatic two-percentage-point increase in early January to 10%. But further interest rate hikes, together with monetary policy tightening, may stifle economic growth, Zhukovskiy said.

New disagreements emerged between President Viktor Yushchenko and Prime Minister Yulia Tymoshenko on Monday, now over the government’s economic policy and planned anti-inflationary measures, with presidential officials criticizing the government over a spike in inflation." (Ukrainian Journal)

"The Kyiv city authorities planned the constructions of eighteen new road junctions to unclog the city's traffic jams. By the time the city's main engineering bureau responsible for road construction KyivGenPlan had taken to serious urban planning of the road infrastructure in Kyiv, the Kyiv City Council had managed to sell or lease out the majority of land plots designated for such construction. ... The Kyiv government has planned the construction and reconstruction of 18 transport junctions to free up the traffic bottlenecks in the city. Experts in the field are convinced that if this project is disrupted, Kyiv faces the threat of a total collapse of its transport system due to the soaring number of vehicles in the city. “This was carefully calculated by experts at the KyivGenPlan Institute, who developed the general plan of Kyiv. The new city authorities, however, continuously violated the plan by changing the designated purpose of land. At this point in time, if the city does not shell out some serious money to buy back this land, the transport problem will remain unresolved forever due to the lack of other available land. Today, it is virtually impossible to get around anywhere in the city due to congestion. Meanwhile, shopping and office centers continue to pop up in the city’s downtown instead of the much needed transport junctions and multi-level parking lots,” said Vadym Zhezheryn, President of the Kyiv office of the National Architects’ Union of Ukraine (NAUU)." (Kyiv Weekly)