Thursday 19 December 2013

Why Ukraine spurned the EU and embraced Russia

On September 4, Ukrainian President Viktor Yanukovich called a meeting of his political party for the first time in three years, summoning members to an old Soviet-era cinema called Zoryany in Kiev.

For three hours Yanukovich cajoled and bullied anyone who pushed for Ukraine to have closer ties to Russia. A handful of deputies from his Party of Regions complained that their businesses in Ukraine's Russian-speaking east would suffer if Yanukovich didn't agree to closer ties with Russia. That set him off.
"Forget about it ... forever!" he shouted at them, according to people who attended the meeting. Instead the president argued for an agreement to deepen trade and other cooperation with the European Union.
Some deputies implored him to change his mind, people who attended the meeting told Reuters. Businessmen warned that a deal with the EU would provoke Russia - Ukraine's former master in Soviet times - into toughening an economic blockade on Ukrainian goods. Yanukovich stood firm.
"We will pursue integration with Europe," he barked back, according to three people who attended the meeting. He seemed dead set on looking west.
Less than three months later Yanukovich spurned the EU, embraced Russian President Vladimir Putin and struck a deal on December 17 for a bailout of his country. Russia will invest $15 billion in Ukraine's government debt and reduce by about a third the price that Naftogaz, Ukraine's national energy company, pays for Russian gas.
It is not clear what Yanukovich agreed to give Russia in return, but two sources close to him said he may have had to surrender some control over Ukraine's gas pipeline network.
What caused the U-turn by the leadership of a country of 46 million people that occupies a strategic position between the EU and Russia?
Public and private arm-twisting by Putin, including threats to Ukraine's economy and Yanukovich's political future, played a significant part. But the unwillingness of the EU and International Monetary Fund to be flexible in their demands of Ukraine also had an effect, making them less attractive partners.
And amid this international tug-of-war, Yanukovich's personal antipathy towards his jailed political rival, Yulia Tymoshenko, was a factor, according to Volodymyr Oliynyk, an ally of Yanukovich and a prominent member of the ruling party. The EU accused Ukraine of treating Tymoshenko unfairly - to the annoyance of Yanukovich, according to his supporters and one of her lawyers.
The upshot is that Yanukovich, 63, has split his party and his country. Some leading party officials have deserted him. His hopes of re-election in 2015 - if there is a free and fair vote - look weak.
Hundreds of thousands of protesters have taken to the streets, demanding he step down and the country pursue closer links with the EU. Yanukovich, who has been increasingly cut off in his sprawling residence outside Kiev and distant even from some of his oldest friends, did not respond to requests for comment.
Source: Reuters

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