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EDM on Ukraine's Presidential Election: three articles.

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  • EDM on Ukraine's Presidential Election: three articles.

    Eurasia Daily Monitor

    Friday, January 22, 2010 -- Volume 7, Issue 15

    YANUKOVYCH CONSISTENTLY RUSSIA-LEANING IN UKRAINE'S PRESIDENTIAL ELECTION

    by Vladimir Socor

    Russia's authorities have adopted a position of studied equidistance
    between the two main candidates during Ukraine's presidential election
    campaign. Moscow has interfered only to the extent of ostracizing
    President Viktor Yushchenko, whose re-election chances it knew to be
    nil. Prime Minister Yulia Tymoshenko and Party of Regions leader
    (formerly two-time prime minister) Viktor Yanukovych will face each
    other in the February 7 run-off. Moscow as well as Western governments
    have insisted throughout the campaign that they would work with either
    winner after the election, only stipulating that the process be free
    and fair.

    Formal equidistance seems to be the only possible option at this
    stage, in view of the volatile race with an unpredictable outcome. But
    this option also reflects the lessons of the 2004 presidential
    election in Ukraine, when the Kremlin's Yanukovych project failed
    outright, and the opposite Yushchenko project unraveled soon
    afterward. His presidency already sinking in 2006, Yushchenko tried to
    keep afloat by bringing RosUkrEnergo into Ukraine (as Yanukovych had
    first decided to do in 2004 as prime minister) and bringing Yanukovych
    back as prime minister (2006-2007) on a fast track toward the
    presidential candidacy again.

    Yanukovych's programmatic statements during this campaign differ
    starkly from Tymoshenko's positions regarding Ukraine-Russia relations
    and Ukraine's place in Europe. Theirs are, in major respects, two
    different foreign policies. Yanukovych's stated positions are aligned
    with Russian policy objectives on some issues of central significance
    to Ukraine, his prescriptions opposite to those of Tymoshenko.

    On gas supplies and transit, Tymoshenko has signed agreements in 2009
    with Russia on supplies and with the European Union on modernizing the
    transit system. The agreements envisage European-level prices for
    Russian gas supplies to Ukraine and E.U.-led technical and financial
    assistance to the transit system's modernization, keeping Ukrainian
    ownership intact.

    Yanukovych, however, calls for sharing control of the Ukrainian system
    with Gazprom, in return for discounted prices on Russian gas
    supplies. Yanukovych has brought back the old idea of creating a
    Gazprom-led international consortium to implement that
    bargain. Apparently reflecting the Donetsk steel and chemical
    industries' need for low-priced gas supplies, Yanukovych is turning
    this issue into a campaign promise of cheap gas for the people, vowing
    to renegotiate the agreements with Russia (Inter TV, Interfax-Ukraine,
    January 15, 19, 21).

    Regarding the Russia-Belarus-Kazakhstan Customs Union, Yanukovych
    considers the possibilities of Ukraine participating in it
    selectively, for certain categories of goods and commodities (steel,
    chemicals, and agricultural products presumably topping the list of
    sheltered interests). Yanukovych and Moscow are willing to negotiate
    the terms of such Ukrainian participation. This would, however,
    complicate and slow down the negotiations launched by the Tymoshenko
    government toward a free trade agreement with the E.U. and an
    association agreement with it. Yanukovych claims that Ukraine could
    have it both ways, in an overarching framework of the World Trade
    Organization (WTO). Russia, Belarus, and Kazakhstan, however, are not
    WTO members; and their chances have become more remote since Russia
    insists on their admission as a group, which is unacceptable to WTO
    countries, including those of the E.U. (Interfax, January 16, 20).

    Yanukovych supports a prolongation of the Russian Black Sea Fleet's
    stationing on Ukraine's territory. In return for higher rent payments
    (currently a derisory $ 95 million per year), Yanukovych says that he
    would favor extending the Russian fleet's presence beyond the 2017
    deadline, and delaying official debate until the deadline draws closer
    (thus pre-determining the deadline's breach). According to him, the
    Russian fleet enhances Ukraine's and Russia's common security; and
    extending the fleet's presence would fit within Russian President
    Dmitry Medvedev's concept of a new European security
    architecture. Tymoshenko, however, insists that no foreign forces may
    be stationed in Ukraine after 2017, pointedly citing the
    constitutional prohibition in this regard (Inter TV, January 15).

    Following Russia's 2008 invasion of Georgia, Yanukovych came out in
    favor of `recognition' of Abkhazia and South Ossetia. Elements in his
    Party of Regions submitted resolutions to that effect in the Verkhovna
    Rada and the Crimean regional legislature in 2009. Yanukovych did not
    seem to actively support that effort but he did not distance himself
    from it either. He seems ignorant of such resolutions' potential
    boomerang effect on Ukraine in the Crimea.

    In line with Russia's policy, Yanukovych supports awarding official
    status to the Russian language in Ukraine's regions (not necessarily
    confined to the east and south). This would be impossible to legislate
    at the national level because it would necessitate a two-thirds
    majority in the Verkhovna Rada to amend the constitution. Yanukovych
    (as well as Moscow) calls for using the European charter of minority
    and regional languages in Ukraine as a means to confer official
    status--in practice, a privileged status--for Russian at the level of
    Ukraine's regions.

    The Party of Regions has entered into a cooperation agreement with
    Russia's party of power, United Russia. According to the Duma's
    international affairs committee chairman, Konstantin Kosachev, the two
    parties' relations have a `systemic character' (Interfax, January 17).
    Tymoshenko's presidential candidacy, however, has been endorsed in
    emphatic terms by the European People's Party, the umbrella
    organization of Europe's Christian-Democrat parties.

    --- Vladimir Socor




    Thursday, January 21, 2010 -- Volume 7, Issue 14


    RUSSIAN-BROKERED DIARCHY WOULD BEST SUIT MOSCOW IN UKRAINE

    by Vladimir Socor

    Ukrainian Prime Minister Yulia Tymoshenko and opposition Party of
    Regions leader (formerly twice prime minister) Viktor Yanukovych will
    face each other in the presidential election run-off on February
    8. Russia has made clear that it is willing to work with Tymoshenko,
    Yanukovych, or both leaders at present and in the post-election
    period.

    By all indications, Moscow does not have a preferred Ukrainian
    candidate. However, Moscow must contemplate a preferred outcome, which
    could well be a diarchy in Ukraine. A Russian-brokered governing
    diarchy would enable Moscow to play both sides in Ukraine and emerge
    as a political arbiter or balance holder between them.

    Moscow has previously supported diarchy-type arrangements in two
    post-Soviet republics: in Armenia in 1998-2000 and in Moldova in
    2001. Both experiments ended with the imposition of de facto
    presidential rule by Moscow-friendly presidents, despite the mixed
    presidential-parliamentary systems formally existing in both
    countries.

    Ukraine's existing constitutional arrangements are a prescription for
    stalemate, pitting the presidency against the government and
    parliamentary majority, and turning rivalries between parties into
    conflicts between institutions. The 2004 constitutional compromise
    aggravated this situation, with often paralyzing effects. The Orange
    Revolution's unintended result turned out to be disorganization of the
    state and generalized dysfunctionality of its institutions.

    As President Viktor Yushchenko-who bears a major share of
    responsibility for that situation-departs the scene, Ukraine's
    three-cornered power contest is turning into a bipolar one involving
    the Party of Regions and the Yulia Tymoshenko Bloc (BYUT). A fragile
    and unstable equilibrium between these rival forces after the
    presidential election would open possibilities for Russia to advance
    its objectives in Ukraine (see article below). From Moscow's
    standpoint, the optimal solution in Ukraine would be a tense diarchy.

    An unstable Ukraine or a deeply dysfunctional Ukrainian state,
    however, is not in Russia's interest. Ukrainian political leaders
    would simply be unable to deliver on agreements reached in such
    circumstances. Ukraine's Western partners as well as Russia have
    learned this repeatedly from 2005 onward -- with the partial exception
    of the BYUT-led government in 2009. Moscow needs a Ukrainian president
    and government sufficiently effective to deliver on agreements, but
    still unconsolidated and insecure in power, and leaving scope for
    Moscow to deal alternately with Ukraine's rival political forces.

    Whether Tymoshenko or Yanukovych win the presidency, Moscow may well
    encourage diarchy-type arrangements to take shape for the
    post-election period. That would involve a Russian-brokered
    cohabitation between the Ukrainian president and government, as well
    as between the parliamentary majority and an almost evenly matched
    opposition. A delimitation of spheres of authority at the level of
    institutions could then, with Russia's encouragement, take shape also
    between Kyiv and Donetsk, formally or informally.

    Russia can therefore be expected to try a soft version of the general
    post-Soviet paradigm of controlled instability. In Ukraine's case it
    can exploit the stalemate between institutions and branches of power
    and their respective political exponents. The Kremlin had earlier
    invoked more severe forms of controlled instability by playing on
    Ukraine's regional differences, e.g., to influence the presidential
    election in 2004 and derail the Ukraine-NATO membership action plan in
    2008. At the present stage, however, Moscow has no cause to encourage
    centrifugal forces and no interest in doing so.

    On January 19, two days after the first round of Ukraine's
    presidential election, Russian President Dmitry Medvedev instructed
    Ambassador Mikhail Zurabov in front of TV cameras to take up his post
    in Ukraine immediately. Zurabov had been appointed in August to fill
    that vacant post, but was never actually sent to Kyiv, as the Kremlin
    refused to deal with Yushchenko. Once Yushchenko lost the election's
    first round on January 17, Medvedev instructed Zurabov in this
    set-piece meeting to work with the first-round winners in
    Ukraine. Without naming names and without awaiting the run-off,
    Medvedev expressed confident hope that `capable, effective authorities
    would emerge in Ukraine [from this election], willing to develop
    constructive, friendly, multi-dimensional relations with Russia.' The
    message to Tymoshenko and Yanukovych is that Moscow is ready to work
    with either of them or both. Medvedev elevated Zurabov's status by
    appointing him special presidential envoy for economic relations with
    Ukraine (i.e., reporting directly to the Russian president),
    concurrently with the ambassadorial assignment (Interfax, Russian
    Television, January 19).

    If Tymoshenko wins the presidency, Ukraine could overcome the
    political stalemate without a Russian-brokered diarchy
    solution. According to many observers, a Tymoshenko success would
    induce defections from the Party of Regions and residual
    pro-Yushchenko sub-factions, reinforcing the BYUT-led parliamentary
    majority and government. Should Yanukovych win the presidency,
    however, he is widely expected to trigger pre-term parliamentary
    elections for a new majority and government under his Party of Regions
    (UCIPR [Kyiv], `The Obvious and the Hidden,' Research Update, January
    14).

    Yet another electoral campaign, if Yanukovych does trigger it, would
    cripple Ukraine's and international lenders' efforts to deal with the
    economic crisis in the country. It would also prolong Ukraine's
    permanent election campaign syndrome (almost continuous since 2004)
    even further. And it would increase Moscow's opportunities to play
    arbiter and stabilizer between Ukrainian political forces, for greater
    Russian political influence in the country.

    --- Vladimir Socor


    Thursday, January 21, 2010 -- Volume 7, Issue 14



    RUSSIAN POLICY OBJECTIVES IN UKRAINE'S PRESIDENTIAL ELECTION
    by Vladimir Socor

    FroM its preliminary stages down to the January 17 first round,
    Ukraine's presidential election has occasioned a full and continuous
    display of Russia's strategic policy objectives toward the country.

    Irrespective of the presidential run-off's outcome on February 8,
    Moscow has already achieved-largely by default-three basic objectives
    regarding Ukraine.

    First, the Kremlin no longer has reasons to fear the Orange freedoms'
    contaminating effect upon Russia. Given Ukraine's political and
    economic predicaments, it has lost the attractiveness of a democratic
    example to Russia's populace or elite circles. If anything, Russian
    business interests associated with the state authorities seem poised
    for predatory takeovers of crisis-hit Ukrainian assets.

    Second, Russia has managed to remove discussion of Ukraine's
    hypothetical NATO membership from the political agenda. All serious
    parties and candidates now avoid this subject as a political liability
    in Ukraine and as an irritant to Russia.

    And thirdly, Moscow has been content to watch the defeated President
    Viktor Yushchenko instrumentalize Ukrainian national identity issues
    as his last resort and `anti-Russian' card. Yushchenko's tactics
    seemingly vindicated Russian President Dmitry Medvedev's August 11
    open-letter warnings to him and Ukraine. The outgoing president's
    campaign has split the Ukrainian electorate in the west and center,
    complicating the country's post-election politics even further.

    The next tier of Russian objectives emerged both before and during the
    Ukrainian presidential election campaign. They can also be deduced in
    part from presidential candidate Viktor Yanukovych's campaign
    statements. The operational order of Russia's priorities should become
    somewhat clearer after the run-off's outcome. Moscow's post-election
    goals are mostly familiar ones, albeit in a changing Ukrainian and
    international context. They include:

    --- Introducing some form of shared control over Ukraine's gas transit
    system (several forms are theoretically available), notwithstanding
    Ukrainian legislation explicitly banning all forms of alienating that
    transit system.

    --- Acquiring ownership in Ukrainian industries through Russian state
    banks and Kremlin-connected oligarchs.

    --- Expanding the use of the Russian language in Ukraine's public
    sphere; and claiming an inherent Russian vetting right on Ukraine's
    educational policies and interpretations of the national history.

    --- Using Ukrainian interest groups to link Ukraine with the planned
    Russia-Belarus-Kazakhstan Customs Union, which would delay Ukraine's
    free trade agreement with the European Union and its association
    agreement with the E.U.

    --- Stonewalling any preparations for withdrawal of Russia's Black Sea
    Fleet from the Crimea, so as to render the 2017 withdrawal deadline
    inoperative long before its technical lapse, and necessitate its
    extension by Ukraine.

    --- Committing Ukraine officially (and notwithstanding the Russian
    Fleet's presence) to neutrality or permanent nonalignment, which would
    foreclose the country's option to join NATO in the future.

    --- Encouraging a double-vector discourse on Ukraine's external
    orientation, which would confuse Western partners and Ukrainians
    themselves about the country's intentions and prospects.

    Russian business interests generally seem to await the final outcome
    of Ukraine's presidential election, before bidding for Ukrainian
    industrial property. In one major case, however, they have
    jump-started the acquisition process before Ukraine can recover from
    crisis. In the second week of January, a consortium of Russia's
    state-owned Vneshekonombank (chairman of the board: Prime Minister
    Vladimir Putin) and the Metalloinvest steel holding of
    Kremlin-friendly Alisher Usmanov announced a preliminary $ 2 billion
    deal to acquire some 50 percent ownership in the Industrial Union of
    Donbass, a major Ukrainian steel producer, with plants also in Hungary
    and Poland (Interfax-Ukraine, January 6, 8, 15).

    Presidential candidate and Party of Regions leader Viktor Yanukovych
    seems not only unduly alarmed, but also utterly confused about Russia
    bypassing Ukraine's gas transit system through the Nord Stream and
    South Stream projects. In two campaign appearances, Yanukovych has
    called for Ukraine to invest in Nord Stream and South Stream, but at
    the same time bring Gazprom into Ukraine's transit system in the hopes
    of ensuring larger gas transit volumes through Ukraine
    (Interfax-Ukraine, Inter TV, January 15, 19).

    Some Russian representatives are testing Ukrainian reactions to more
    ambitious goals than those officially announced. Thus the CSTO's
    Secretary-General, Nikolai Bordyuzha, has declared that Ukraine would
    be welcome to join the CSTO or participate in at least some of the
    organization's activities (Interfax-Ukraine, January 18).

    Ultimately, Moscow would hope to reach a point at which it could,
    together with Ukraine, define what Ukrainian interests are in the
    Russia-Ukraine relationship. According to Minister of Foreign Affairs
    Sergei Lavrov when dispatching Ambassador Mikhail Zurabov to Kyiv (see
    article above), Russian policy must ensure that Ukraine's new
    president `understands not to make our relationship hostage to
    somebody's ambitions=80¦that have nothing in common with the Ukrainian
    people's interests, or those of the Russian people' (Interfax, January
    19).

    Russia is still very far from achieving that kind of influence over
    Ukraine's political system and decisions. However, Moscow's
    intermediate objectives as displayed during Ukraine's presidential
    election campaign could, if attained, increase Russian political
    influence gradually to a significant level in Ukraine.

    -- Vladimir Socor
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