Ukraine MPs vote to sack cabinet over 'traitorous' gas price deal with Russia 
By Andrew Osborn in Moscow 

Published: 11 January 2006 

Ukraine's government fell last night, for the second time in six months, when 
MPs voted to sack the cabinet in response to a "traitorous" deal with Russia 
over gas prices. 

Viktor Yushchenko, the hero of the orange revolution of 2004, questioned the 
parliament's right to dismiss his government and ministers spoke of a bizarre 
legal vacuum opening up.

Mr Yushchenko hinted he might disband the parliament in response, as his 
supporters called on him to adopt direct presidential rule until new 
parliamentary elections could be held at the end of March.

The crisis was exacerbated by the fact that Mr Yushchenko was en route to the 
former Soviet state of Kazakhstan when his government was dismissed and said he 
had no intention of changing his schedule. The vote of no confidence by the 
Rada (parliament) was called during a debate on last week's gas crisis. Moscow 
switched off Ukraine's gas for three days, in response to Kiev's refusal to pay 
higher prices, hitting supplies across Europe before the two sides clinched a 
face-saving deal.

Mr Yushchenko and his team hailed the deal (which in effect doubled the price 
Ukraine pays for Russian gas) as a victory for Kiev and have since tried to 
argue that its economic independence has been safeguarded. Indeed, during 
yesterday's debate, Yuri Yekhanurov, Mr Yushchenko's Prime Minister, gave a 
spirited defence of the deal.

But MPs and opposition groups are unconvinced. They said yesterday they were 
unhappy with the government's handling of the crisis and accused it of selling 
out to Russia and betraying national interests.

The motion to sack the government, which appeared to take many MPs by surprise, 
was backed by 250 of the parliament's 450 members. Mr Yushchenko's former ally 
and one-time prime minister, Julia Tymoshenko, was among those who voted 
against the government, along with the Communist party.

The vote's outcome delighted the pro-Russian Party of the Regions, the main 
losers in the orange revolution.

Though it was ostensibly sparked by the gas row, analysts from across the 
political spectrum said it had as much to do with pre-election manoeuvring 
ahead of a parliamentary election on 26 March. Much is at stake since, under 
new constitutional changes, the parliament and the Prime Minister will become 
more powerful at the expense of the President, a state of affairs that has 
breathed life into Mr Yushchenko's opponents who have staged a comeback as his 
own popularity has fallen away.

Serious doubts about the deal struck with Russia have also emerged as the small 
print agreed in fraught, late-night negotiations has been made public. Though 
the deal was initially thought to be for five years, Ukrainian politicians are 
now saying they have no guarantee that Russia will not try to raise the price 
again in six months.

A perplexing question mark also hangs over the intermediary company that will 
supply all of Ukraine's gas needs in future. The identity of its principal 
owners has not been revealed and politicians such as Ms Tymoshenko have cast 
doubt over the legality of its business practices, suggesting that mafia 
figures may be involved, claims staunchly denied by the firm.

Finally, concerns that the price rise might be passed directly to consumers 
have gathered momentum as have fears of the impact on Ukraine's industry.

Mr Yushchenko has vowed to give a detailed response to the crisis this morning 
while his Prime Minister, Mr Yekhanurov, has suggested that the government 
might try to ignore the no-confidence motion. 

Ukraine's government fell last night, for the second time in six months, when 
MPs voted to sack the cabinet in response to a "traitorous" deal with Russia 
over gas prices. 

Viktor Yushchenko, the hero of the orange revolution of 2004, questioned the 
parliament's right to dismiss his government and ministers spoke of a bizarre 
legal vacuum opening up.

Mr Yushchenko hinted he might disband the parliament in response, as his 
supporters called on him to adopt direct presidential rule until new 
parliamentary elections could be held at the end of March.

The crisis was exacerbated by the fact that Mr Yushchenko was en route to the 
former Soviet state of Kazakhstan when his government was dismissed and said he 
had no intention of changing his schedule. The vote of no confidence by the 
Rada (parliament) was called during a debate on last week's gas crisis. Moscow 
switched off Ukraine's gas for three days, in response to Kiev's refusal to pay 
higher prices, hitting supplies across Europe before the two sides clinched a 
face-saving deal.

Mr Yushchenko and his team hailed the deal (which in effect doubled the price 
Ukraine pays for Russian gas) as a victory for Kiev and have since tried to 
argue that its economic independence has been safeguarded. Indeed, during 
yesterday's debate, Yuri Yekhanurov, Mr Yushchenko's Prime Minister, gave a 
spirited defence of the deal.

But MPs and opposition groups are unconvinced. They said yesterday they were 
unhappy with the government's handling of the crisis and accused it of selling 
out to Russia and betraying national interests.

The motion to sack the government, which appeared to take many MPs by surprise, 
was backed by 250 of the parliament's 450 members. Mr Yushchenko's former ally 
and one-time prime minister, Julia Tymoshenko, was among those who voted 
against the government, along with the Communist party.
The vote's outcome delighted the pro-Russian Party of the Regions, the main 
losers in the orange revolution.

Though it was ostensibly sparked by the gas row, analysts from across the 
political spectrum said it had as much to do with pre-election manoeuvring 
ahead of a parliamentary election on 26 March. Much is at stake since, under 
new constitutional changes, the parliament and the Prime Minister will become 
more powerful at the expense of the President, a state of affairs that has 
breathed life into Mr Yushchenko's opponents who have staged a comeback as his 
own popularity has fallen away.

Serious doubts about the deal struck with Russia have also emerged as the small 
print agreed in fraught, late-night negotiations has been made public. Though 
the deal was initially thought to be for five years, Ukrainian politicians are 
now saying they have no guarantee that Russia will not try to raise the price 
again in six months.

A perplexing question mark also hangs over the intermediary company that will 
supply all of Ukraine's gas needs in future. The identity of its principal 
owners has not been revealed and politicians such as Ms Tymoshenko have cast 
doubt over the legality of its business practices, suggesting that mafia 
figures may be involved, claims staunchly denied by the firm.

Finally, concerns that the price rise might be passed directly to consumers 
have gathered momentum as have fears of the impact on Ukraine's industry.

Mr Yushchenko has vowed to give a detailed response to the crisis this morning 
while his Prime Minister, Mr Yekhanurov, has suggested that the government 
might try to ignore the no-confidence motion. 

http://news.independent.co.uk/europe/article337798.ece 
<http://news.independent.co.uk/europe/article337798.ece> 




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