Archive for October, 2009


Yushenko derails IMF Agreement…….well, he would, wouldn’t he!

October 31, 2009

Ukrainian President Viktor Yushchenko signed a bill on Friday that would raise the minimum wage by over 20 percent — a move the International Monetary Fund chief said pushed its $16.4 billion bailout “off-track.”

Uncertainty over IMF funding for Ukraine, one of Europe’s worst performing economies, prompted credit ratings agency Standard & Poor’s to cut its outlook to “stable” from “positive”, while Fitch said the wage rises would pressure its own already low ‘B’ rating.

Prime Minister Yulia Tymoshenko has said the wage rises would place “an atom bomb under the finances of the country” and would cost an extra $10 billion.

But Yushchenko told reporters: “I would like to inform you that I have signed the bill.”

Analysts have said the issue has become a political football ahead of a Jan. 17 presidential election in which Yushchenko, his bitter rival Tymoshenko and former premier Viktor Yanukovich will run.

IMF chief Dominique Strauss-Kahn reacted to Yushchenko’s decision swiftly, telling Reuters it concerned him greatly.

“I’m very worried by the president’s agreement to this bill which puts the programme we had signed off track and in this situation I’m afraid it would be very difficult to complete the next review of the programme,” he said by telephone.

“That’s why we are going to continue working with the Ukrainian authorities in the hope they can come together again to reach a position which would comply with the technical agreement we signed with the government.”

The government has said it simply cannot afford the extra spending.


Now Tymoshenko and government have always been for the IMF help, Yanukovych and PoR have always been against it……..and Yushenko, like so often during the past 5 years has flip-flopped on the issue and has now derailed the program.

This would be the same Yushenko who recently said to the world Ukraine was the place to invest…….well obviously not if you want to rely on signed agreements and contracts it isn’t when the Presdient knowingly derails the biggest outside assistance program for the nation for no real reason.  After all, he has done sweet f*ck all about the social funding during his last 5 years in office……..until now.





Reality setting in?

October 28, 2009

Yushchenko says struggle for presidential post not his goal

Ukrainian President Viktor Yushchenko has said that struggle for the post of president is not his goal.

He said this at a meeting with the intellectuals of Zakarpattia region in Uzhgorod on Wednesday.

“I think that most of you know quite well that power is not a goal for me,” Yushchenko said.

He said that during his premiership and presidency, he only had the goal of being responsible for the country’s policies, reforms, and his work. He said that he had seen his posts as a civic duty.

“I see my current post from the [same] view of civic duty,” Yushchenko said.

Well, I think a little more work on the resignation speech is required…….but I do recognise resignation in his tone.


Oh No – The IMF Is Interfering……

October 28, 2009

Regions Party accuses IMF of intervening in Ukraine’s domestic affairs

Interfax-Ukraine Kyiv, October 27 (Interfax-Ukraine) – The Regions Party has described the International Monetary Fund’s insisting on the need to veto the law on a rise in social standardKyiv, October 27 (Interfax-Ukraine) – The Regions Party has described the International Monetary Fund’s insisting on the need to veto the law on a rise in social standards as intervention in Ukraine’s domestic affairs.s as intervention in Ukraine’s domestic affairs.

“If earlier the position of the International Monetary Fund that extended funds to Ukraine despite the obvious failure by the government of [Ukrainian Prime Minister Yulia] Tymoshenko to abide by the Stand-By Arrangement caused surprise, now recent statements by the fund’s representatives are provoking objections,” reads a statement published by the party’s press service on Tuesday.

The party said that the IMF mission made a statement after returning from Kyiv to Washington on October 25, 2009, “which could be easily perceived as intervention in Ukraine’s domestic affairs and the deprivation of our state of its right to pursue social and economic policies on its own.”

“So, the IMF mission said after returning from Ukraine that the law on a rise in pensions and wages is not in line with the terms of the economic recovery program approved by the IMF,” reads the statement.


Hmmm – I can think of about 16,000,000,000 reasons why the IMF would want to have at least a say in the internal mechanics of Ukraine.  After all the $16 Billion it has given to Ukraine is a loan and not present.

It is what happens when you sell your soul to the devil.

Hardly surprising nobody wants to invest in Ukraine if the IMF look as though they are about to be shafted in February after the election.



An Economic Saviour Arrives In Ukraine…….

October 27, 2009

Well dear readers, it seems someone has had the answer to the financial crsis all along……..

Opposition leader Viktor Yanukovych, the frontrunner ahead of the next presidential election, on Monday said his plan of pulling economy out of recession includes sweeping tax cuts and attracting foreign investments.

The measures, which are supposed to be in place for the next 10 years – or two five-year presidential terms – are aimed at helping Ukraine to enter the list of the world’s top 20 economies. – Ukrainian Journal


So you borrow $16 billion from the IMF and make guarnatees of reform and payments to them.  Mr Yanukovych and party of Regions force through increases in social welfare which are not agreed by the IMF or incorporated in the budget plans agreed with the IMF………and then when you take power……..which he stands a far better than average chance of doing……….he will cut taxes so the IMF do not get their repayments………and that will increase inwards investment?

Yep………that’ll work!



Sphere’s of influence……..and Ukrainian public opinion

October 26, 2009

Poll: over 40 percent of Ukrainians sure Russia could influence results of presidential elections

Ukraine’s citizens consider that Russia and the United States could influence the results of the presidential elections in Ukraine, according to a study entitled “Five facts about Ukrainians” that was conducted by the international research IFAK Ukraine agency and presented at a press conference in the Interfax-Ukraine news agency on Monday.

According to the results of the research, 42% of the polled Ukrainians (31% in the east and 58% in the west) think that Russia could influence the results of the presidential elections in Ukraine, while 35% (40% in the east and 28% in the west) think the United States could impact the results.

Another 13% of the respondents think that countries of the European Union could influence the results of the elections, and 4% consider the CIS countries could bring influence to bear as well.

A total of 18% of the respondents could not answer this question. The survey was conducted on October 1-10, 2009.

A total of 1,500 respondents aged 18-60 were polled. The poll’s margin of error is 3.5%.


Ukraine’s future lays in Europe – Tymoshenko

October 25, 2009

Well dear readers, seems Tymoshenko has made the first serious policy/direction speech from the 2 most likely to be in the final round of voting.

Wisely for her, although she and many may believe Ukraine’s future lays within Europe, she does not state Ukraine will join the EU…….as it is unlikely to expand again during the next 5 years (apart from Iceland……which is more f*cked than Ukraine) even if Ukraine did meet EU standards……..which it doesn’t.

So she is not promising EU membership during what could be her first term as President.  Very wise as it really is not her decision.

I do expect that Ukraine will sign the Eastern European Associate status deal with the EU within 12 months though……..not that it will make any difference to the average EU or Ukrainian citizen…….in fact it won’t even annoy Russia…… it really makes little difference to the way things are now.

Anyway, a theological political statement with no promises…….sounds like a very “EU statement” to me…..are we sure Ukraine didn’t join quietly and nobody was told?


A Guide To Odessa Rayons…….

October 24, 2009

Someone asked for a guide to the regions of Odessa…….well, here you go……..


Financial Development Rankings……….Oh Dear

October 23, 2009

Now dear readers……..have a quick squint at this…….in fact no put your glasses on instead of squinting because my wife says it will leave permanent lines over your face in time.

Eh?…….Yes, yes, I know you face already looks like a scrotum and a few more wrinkles and lines will make no difference at all……but you must learn to humour my wife or you never hear the bloody end of it!

Anyway…….take a look at this from Interfax-Ukraine…….

Russia has fallen to 40th place in the financial development rankings compiled by the World Economic Forum (WEF).

Russia was 36th in the 2008 rankings. In the latest rankings, which included 55 countries, it was passed up by Brazil among others, the WEF’s global competitiveness program coordinator in Russia Alexei Prazdnichnykh said at a meeting with securities markets participants.

Russia ranked the lowest among the BRIC countries (Brazil was 34th, India – 38th and China 26th). But Russia’s CIS neighbors were ranked lower: Kazakhstan was in 47th place and Ukraine was 53rd.

Now, it may seem easy to say, Ukraine should be behind Brazil, India, China and Russia…….but Kazakhstan?

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