Embattled Ukrainian President Viktor Yanukovich flew to China , leaving turmoil at home
Tuesday, December 3
, Posted by Angel❤ at 7:32 AM
KIEV (Reuters) – Embattled Ukrainian President Viktor Yanukovich flew to China on Tuesday, leaving behind a country in turmoil over his decision to spurn a landmark accord with the European Union under Russian pressure.
Besides anger in the streets and from opposition politicians, the president faces growing pressure from international markets, increasing the risk of a financial crisis that could force his hand.
The government’s November 21 decision to reject a deal on closer trade ties and integration with the EU has plunged the country of 46 million into turmoil, laying bare once more a deep split in thinking between the Russian-speaking East and Ukrainian-speaking West.
Ukraine’s currency, bonds and share prices have come under severe pressure. The central bank has been forced to assure people their savings are safe, while the finance minister said Ukraine was repaying its debts and would continue to do so.
“Ukraine is a reliable borrower and is flawlessly fulfilling, and will fulfill, all of its obligations on time,” Yuri Kolobov said in a recorded message broadcast by state television on Tuesday.
The cost of insuring Ukraine’s debt against default, already at its highest since September, rose further on Tuesday, however, while the government must find billions to meet debt repayments and the cost of gas imports next year.
“I ask Yanukovich – resign!” Vitaly Klitschko, a former heavyweight boxing champion and now leader of the opposition Udar (Punch) party, told the parliament.
“Don’t do anything stupid – don’t drive yourself and the country into a dead end.”
“COUP D’ETAT”
The opposition was seeking to put on the agenda a confidence vote in the government of Prime Minister Mykola Azarov. He continues to command a majority, despite an announcement by the speaker of the parliament that two of 207 deputies in Yanukovich’s Regions Party had left the party faction to become independents.
Azarov says the crisis “has all the signs of a coup d’etat”.
The opposition itself is an unlikely alliance of political creeds,
lacking the kind of unifying leadership behind Ukraine’s 2004 Orange
Revolution, when huge street protests forced the annulment of a
fraudulent presidential election won by Yanukovich. That opposition
alliance eventually splintered in government, and Yanukovich took power
in 2010.
Protesters blocked the entrances to the main government building for a second day, impeding the government’s ability to function.
Tented camps and supplies of food and warm clothing suggested protesters were hunkering down for a long campaign to bring down Yanukovich.
He flew to China seeking loans and investment to avert a debt crisis.
The decision to travel suggested the president felt the security situation was under control. But some felt leaving was unwise nevertheless.
“It is a very bad time to go abroad. The president’s absence may make talks with the opposition much more difficult,” said Ukrainian political analyst Gleb Vyshlinsky.
Russia wants to draw Ukraine into a Moscow-led customs union and prevent it moving closer to the EU, a decision that would signal a historic shift towards the West and away from Kiev’s former Soviet masters in Moscow.
But the tug-of-war between Brussels and Moscow for influence in Ukraine has so far done little to alleviate its looming debt crisis and the China visit will involve the signing of at least 20 economic and trade agreements.
“Yanukovich is trying to show that the European Union and Russia are not the only possible partners for Ukraine,” said Volodymyr Fesenko of Ukraine’s Penta think-tank.
However, he said Beijing may now demand assurances over Ukraine’s political and economic stability, adding: “Ukraine is unlikely to secure direct financial aid (from China).”
Beijing has already provided the former Soviet republic with loans worth $10 billion, but the government must find more than $17 billion in 2014 to meet gas bills and debt repayments.
(Additional reporting by Thomas Grove; Writing by Matt Robinson; Editing by Giles Elgood)
Besides anger in the streets and from opposition politicians, the president faces growing pressure from international markets, increasing the risk of a financial crisis that could force his hand.
With black-clad riot police facing
off against several thousand pro-EU protesters outside parliament,
opposition leaders inside the chamber demanded a vote of no-confidence in Yanukovich’s government.
The fiery debate reflected growing anger on the streets of the
capital, Kiev, where 350,000 protesters massed on Sunday and thousands
are still manning barricades and picketing government buildings.The government’s November 21 decision to reject a deal on closer trade ties and integration with the EU has plunged the country of 46 million into turmoil, laying bare once more a deep split in thinking between the Russian-speaking East and Ukrainian-speaking West.
Ukraine’s currency, bonds and share prices have come under severe pressure. The central bank has been forced to assure people their savings are safe, while the finance minister said Ukraine was repaying its debts and would continue to do so.
“Ukraine is a reliable borrower and is flawlessly fulfilling, and will fulfill, all of its obligations on time,” Yuri Kolobov said in a recorded message broadcast by state television on Tuesday.
The cost of insuring Ukraine’s debt against default, already at its highest since September, rose further on Tuesday, however, while the government must find billions to meet debt repayments and the cost of gas imports next year.
A protestor shouts during a demonstration in support of EU integration in Kiev December 3, 2013
“Don’t do anything stupid – don’t drive yourself and the country into a dead end.”
“COUP D’ETAT”
The opposition was seeking to put on the agenda a confidence vote in the government of Prime Minister Mykola Azarov. He continues to command a majority, despite an announcement by the speaker of the parliament that two of 207 deputies in Yanukovich’s Regions Party had left the party faction to become independents.
Azarov says the crisis “has all the signs of a coup d’etat”.
Protesters blocked the entrances to the main government building for a second day, impeding the government’s ability to function.
Tented camps and supplies of food and warm clothing suggested protesters were hunkering down for a long campaign to bring down Yanukovich.
He flew to China seeking loans and investment to avert a debt crisis.
The decision to travel suggested the president felt the security situation was under control. But some felt leaving was unwise nevertheless.
“It is a very bad time to go abroad. The president’s absence may make talks with the opposition much more difficult,” said Ukrainian political analyst Gleb Vyshlinsky.
Russia wants to draw Ukraine into a Moscow-led customs union and prevent it moving closer to the EU, a decision that would signal a historic shift towards the West and away from Kiev’s former Soviet masters in Moscow.
But the tug-of-war between Brussels and Moscow for influence in Ukraine has so far done little to alleviate its looming debt crisis and the China visit will involve the signing of at least 20 economic and trade agreements.
“Yanukovich is trying to show that the European Union and Russia are not the only possible partners for Ukraine,” said Volodymyr Fesenko of Ukraine’s Penta think-tank.
However, he said Beijing may now demand assurances over Ukraine’s political and economic stability, adding: “Ukraine is unlikely to secure direct financial aid (from China).”
Beijing has already provided the former Soviet republic with loans worth $10 billion, but the government must find more than $17 billion in 2014 to meet gas bills and debt repayments.
(Additional reporting by Thomas Grove; Writing by Matt Robinson; Editing by Giles Elgood)
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