NEWS

Nation / Society

Middle class gaining greater visibility

In an analytical article called “Middle class gaining greater visibility”, Maria Aksyonova states that, while a middle class has visibly emerged in Ukraine in the last several years, it currently accounts for only a small part of Ukrainian society, and is still a far cry from being a girder of the nation’s economy, as in other more developed countries.
A recent study shows that the middle class in Ukraine currently accounts for less than one-tenth of the country’s population of around 47 million. However, more than a third of Ukrainians subjectively feel themselves to belong to the middle class. Due to its small size, Ukraine’s middle class does not perform the role of economic stabilizer as the middle class does in more mature economies. As in more developed market-economy countries, the rise of Ukraine’s middle class is reflected in increasing consumer spending and consumption, savings, and bank loans for household items, automobiles, apartments and private homes, and business development.
The further development of the middle class in Ukraine depends mostly on the political situation in the country and the existence of a plan for the development of the nation’s economy.

Politics

Ukrainians ready for elections, polls say

According to the most recent public opinion polls, more than 75 percent of Ukraine’s voters are ready to take part in early parliamentary elections, scheduled for Sept. 30.
Voter turnout is important for these elections, because for the first time since independence, a minimum voter turnout of 51 percent has been established. Coalition and opposition politicians alike have pointed to the minimum voter turnout as one of the ways the elections can be undermined. Three opinion polls have been conducted so far. The results, somewhat differing, show that between 54 and 78 percent of voters (will or probably will) take part in the elections.
Support for the Regions and Our Ukraine has risen in the last few months, while Byut’s numbers have fallen slightly. Still, the polls conducted show different results as to the number of voters who to support the political parties.
Meanwhile, Socialist leader and Rada chairman Oleksandr Moroz continued questioning the legitimacy of an early election date throughout the week.
On July 10, Foreign Minister Arseniy Yatsenyuk announced that he has personally signed invitations to the Commonwealth of Independent States to send observers for the Sept. 30 elections, Ukrainian News reported.
On July 8, the man behind pop icon Verka Serdyuchka announced that he would run for parliament. Andriy Danylko announced plans to organize the “Against All” electoral bloc. By the way, this party might become successful, as in the 2006 elections, nearly 1.8 percent voted “against all.”

Suspension of social benefits unconstitutional, Constitutional Court of Ukraine says

Forty-six deputies asked the Constitutional Court to check the constitutionality of several clauses of the 2007 budget law dated December 19, 2006, and all subsequent amendments to it. The Constitutional Court of Ukraine ruled on Wednesday that the steps taken within the 2007 budget to suspend all social benefits and guarantees envisioned by legislation do not comply with the Constitution. The lawmakers claim that the aforementioned sections of the law restrict the public's constitutional rights to social security, wages, social benefits, compensation and guarantees.

Majority of Ukrainians say country moving in wrong way, poll shows

According to a poll conducted by the Democratic Initiatives Fund and the Ukrainian Sociology Service from June 19 to July 2, over half of the Ukrainian people (58%) say the country is developing in the wrong direction. A total of 2,000 respondents aged over 18 participated in the poll. Only 18% of Ukrainians are confident that the country is on the right course, while another 24% were undecided.

Business & Economics

Government’s Ukrtelecom sale plans continue to flop

The Ukrainian government has repeatedly failed in its bid to raise more than $200 million within recent weeks by privatizing minority stakes in fixed-line telephone company Ukrtelecom, one of the country’s most prized assets.
Bickering between the political camps of Yushchenko and Yanukovych are expected to shift into high gear ahead of the Sept. 30 elections. The Ukrtelecom privatization debate is not expected to be settled during this turbulent period. It could also become one of the issues for debate.

Tycoon fetches $2 billion for bank

Ukrainian tycoon Viktor Pinchuk’s Interpipe Group inked a deal July 5 to sell Ukrsotsbank, a top-five Ukrainian bank in terms of assets (for $2 billion, marking the biggest deal of its kind to date and the second largest price paid for an asset in Ukraine) to Italy’s Unicredit Group.
As, according to forecasts, the share of foreign capital in Ukraine’s banking system continues growing, some state officials and local bankers have already rung the alarm bell. The deal will also mean that three out of Ukraine’s top five banks are under foreign control. Foreign players will bring to Ukraine’s banking business competition, which isn’t always welcome.

Ukraine increased export of commodities for 5 months of 2007 for 34,4%, up to 18,88 milliard dollars

The export of commodities from Ukraine for January-May, 2007 made up more than 18.5 billion (milliards) dollars, the import – 22.5 billion, according to the data of Federal State Statistics Service. As compared to the similar period of the last year the export increased for 34,4%, import - for 35%.
(Foreign trade operations were conducted with partners from 193 countries of the world. The volumes of export deliveries to the countries of CIS made up 36,3% of the total volume of export, to Europe - 32,4% (including the countries of European Union - 30,4), Asia - 20,1%, Africa - 5,8%, America - 5,3%. The import from countries of CIS made up 46% of its total volume, from Europe - 36,3% (including import from the countries of European Union - 34,9), from Asia - 13,5%, from America - 3,2%, from Africa - 0,8%, from Australia and Oceania - 0,2%.)
(In general volume of export of commodities for January-May, 2007, as compared to the proper period of the last year the share of black metals increased - from 34% to 35%, black metals wares - from 5,6% to 6,6%, caldrons, machines, vehicles and mechanical devices - from 5,2% to 5,4%, electric machines and equipment - from 3,1% to 3,9%, railway and tram locomotives, track equipment - from 2,6% to 3,4%. The share of cereal crops diminished from 3,7% to 2,7%, as well as the share of ores, slags and ash - from 2,5% to 2,1%, energetic materials, oil and products of its processing - from 8,1% to 6,2%, products of inorganic chemistry - from 3,4% to 2,8%.
The share of polymeric materials and plastics increased in the total volume of import of commodities from 4,1% to 4,3%, of black metals - from 3,1% to 3,6%, of caldrons, machines, vehicles and mechanical devices - from 11% to 11,9%, surface transport vehicles, except for railway ones, - from 10,1% to 11,8%. The share of energetic materials, oil and products of its processing diminished from 31,1% to 30,6%, of paper and cardboard - from 2,4% to 2,2%, of electric machines and equipment - from 6,1% to 4,8%.)

The Cabinet intends to confirm the prognosis of GDP and inflation of 2008

During the session on Wednesday the Cabinet intends to confirm the prognosis of basic economic and social macroindices of 2008, including GDP 7,2%, and inflation 6,8%, said the first vice-prime, Minister of Finance Nikolay Azarov, opening the session of the Cabinet on Wednesday.
On the basis of these prognoses the Cabinet intends to develop and introduce in Verkhovna Rada before the 15th of September the bill of 2008 state budget.

The growth of import of coke-coal will depend on growth of production of coke in Ukraine

The growth of import of coke-coal will depend on growth of production of coke in Ukraine. Anatoliy Starovoyt, the head of «Ukrkoks» Association declared about it in interview for UGMK.INFO. «The Ukrainian mines promise to provide by-product coke plants with coke-coal in full, but we do not see prospects. God grant to save the current volumes of extraction», - said the expert.

International

Georgia hosts 12-nation NATO-led emergency and rescue exercises

NATO-led rescue drills involving the air forces of 12 nations started on the 11th of July in Georgia. Georgia hopes that hosting the maneuvers will improve its chances of joining the Western military alliance.
Several hundred air force personnel from NATO members, including the United States and Germany, and aspiring members, including Georgia and Ukraine, have started the 20-day training. The participants also include Albania, Azerbaijan, Croatia, Hungary, Jordan, Latvia, Moldova and Turkey. (These exercises are part of NATO's Partnership for Peace - a program of cooperation between the alliance and former Soviet militaries.) Participants will learn to help victims of earthquakes and floods, evacuate people by helicopter and set up a field hospital.

Ukraine views Morocco as important partner on African continent, foreign minister says

Ukrainian Foreign Minister Arseniy Yatseniuk has said (13 July) that Ukraine considers Morocco as a major partner on the African continent. Yatseniuk said a bilateral commission had been created to study issues of economic mutual relations, cooperation in the humanitarian sector, in particular, in education and the student exchange program between Ukraine and Morocco.

Sport

Klitschko defeats Brewsters

Volodymyr Klitschko fought most of his title bout against Lamon Brewster with a broken left hand, in the city of Cologne, Germany (on the 7th of July).
He defeated Brewster on a technical knockout to defend his IBF and IBO heavyweight titles. In the first round, he suffered a fracture below the middle knuckle of his left hand. Despite the injury, the Ukrainian dominated the first five rounds, and landed several strong left jabs that largely went unanswered. In the sixth round, two massive left-right combinations rocked the American, and Brewster's trainer stopped the fight before the seventh round could start.
Klitschko's record is now 49-3, with 44 knockouts, while Brewster is 33-4 with 29 KOs.

World news

Brazil issues arrest warrant for Berezovsky on money-laundering charges

On the 12th of July, a court in Sao Paolo, Brazil, issued an arrest warrant for Boris Berezovsky on charges of money laundering. The Brazilian warrant was the result of close cooperation between the law enforcement agencies of a number of countries, the source said.
The trial against Berezovsky in Moscow was postponed for two weeks so the court-appointed defense attorney could read the voluminous case materials. Berezovsky has ordered his own lawyers not to take part in the trial, which he said was part of a Kremlin effort to draw attention away from the poisoning death of his associate Alexander Litvinenko.

Monday, 16 July

 Ukraine and Morocco agreed to create inter-government commission for trade and economic cooperation
 It has been announced that Ukraine is now planning to boost cooperation with Afghanistan in defense, gas, construction sectors
 Director of NATO's information and documentation centre in Ukraine, in his recent interview, stressed high level of the current information campaign about alliance
 Yatseniuk has declared that Ukraine won't send its servicemen to Afghanistan
 Ukrainian foreign minister is said to be planning to visit Brussels on July 17
 One of Kyiv regional prosecutors was dismissed on Monday
 Zaporizhia NPP reactor was shut down for unscheduled repairs
 A press conference entitled "Orthodox choice or European and EuroAtlantic integration of Ukraine" will be conducted in the nearest future.