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Ukraine Blames I.M.F. for Collapse of Accord With European Union Ukraine Blames I.M.F. for Halt To Agreements With Europe
(about 2 hours later)
MOSCOW — Prime Minister Mykola Azarov of Ukraine told enraged opposition lawmakers on Friday that his government’s decision to walk away from far-reaching political and trade agreements with the European Union was based on fiscal imperatives, and ultimately triggered by the International Monetary Fund’s overly harsh terms for an aid package. MOSCOW — Prime Minister Mykola Azarov of Ukraine told enraged opposition lawmakers on Friday that his government’s decision to walk away from far-reaching political and trade agreements with the European Union was based on fiscal imperatives, and ultimately prompted by the International Monetary Fund’s overly harsh terms for an aid package.
The accords with Europe were due to be signed next week at a major conference in Vilnius, Lithuania. Opposition leaders furious over the decision called for the resignation of the Ukrainian government, for the impeachment of President Viktor F. Yanukovich, and for mass protests across the country. Many also blamed Russia for pressuring Ukraine to scuttle the deals. The accords with Europe were due to be signed next week at a major conference in Vilnius, Lithuania. Opposition leaders furious over the decision called for the resignation of the Ukrainian government, for the impeachment of President Viktor F. Yanukovich and for mass protests across the country. Many also blamed Russia for pressuring Ukraine to scuttle the deals.
Protests against the government’s decision were held in several Ukrainian cities, including Lviv, the largest city in western Ukraine, where more than 5,000 people joined a rally in the main square, led by Mayor Andriy Sadovy. Kiev, the capital, was pulsing with emotion that officials and commentators said they had not experienced since the Orange Revolution of 2004. Protests against the government’s decision were held in several Ukrainian cities, including Lviv, the largest city in western Ukraine and a hotbed of anti-Yanukovich sentiment, where more than 5,000 people joined a rally in the main square, led by Mayor Andriy Sadovy. Kiev, the capital, was pulsing with emotion that officials and commentators said they had not seen since the Orange Revolution of 2004.
On Friday evening, about 1,000 people protested in the rain in Independence Square, the revolution’s central gathering point, waving European Union flags and chanting, “Ukraine is Europe!” A bigger rally was set for Sunday. The jailed former prime minister, Yulia V. Tymoshenko, issued a statement urging people “to react to this as they would to a coup d'état” and take to the streets. On Friday evening, about 1,000 people protested in the rain in Independence Square, the revolution’s central gathering point, waving European Union flags and chanting, “Ukraine is Europe!” A bigger rally was set for Sunday. The jailed former prime minister, Yulia V. Tymoshenko, issued a statement urging people “to react to this as they would to a coup d’état” and take to the streets.
The Ukrainian government on Thursday said it was suspending plans to complete the agreements and would instead pursue improved economic relations with a competing trade bloc led by Russia. The decision upends the European Union’s top foreign policy initiative, a bid to draw in former Soviet republics and promote Western-style political and economic reforms. The Ukrainian government on Thursday said it was suspending plans to complete the agreements and would instead pursue improved economic relations with a competing trade bloc led by Russia. The decision upends the European Union’s top foreign policy initiative, an effort to draw in former Soviet republics and promote Western-style political and economic overhauls.
Ukraine is facing severe economic problems, and is expected to soon need financial assistance of $15 billion or more. In Parliament on Friday, where he appeared with other government ministers, Mr. Azarov said the conditions for aid from the West were too stiff and Ukraine needed to take steps to improve its economic relationship with Russia. Ukraine is facing severe economic problems and is expected to soon need financial assistance of $15 billion or more. On Friday in Parliament, where Mr. Azarov appeared with other government ministers, he said that the conditions for aid from the West were too stiff and that Ukraine needed to take steps to improve its economic relationship with Russia.
“The I.M.F. position presented in the letter dated Nov. 20 was the last straw,” Mr. Azarov said. “This decision is hard, but it’s the only one possible in the economic situation in Ukraine.”“The I.M.F. position presented in the letter dated Nov. 20 was the last straw,” Mr. Azarov said. “This decision is hard, but it’s the only one possible in the economic situation in Ukraine.”
His comments drew a roar of jeers and denunciations from opposing lawmakers, who also threw sheaves of papers at him.His comments drew a roar of jeers and denunciations from opposing lawmakers, who also threw sheaves of papers at him.
While Mr. Azarov sought to pin responsibility on the I.M.F., other officials said the decision to back away from the agreements was the result of fierce pressure by Russia, including threats of trade embargos and other punitive steps that would have devastated the Ukrainian economy. While Mr. Azarov sought to pin responsibility on the I.M.F., other officials said the decision to back away from the agreements was the result of fierce pressure by Russia, including threats of trade embargoes and other punitive steps that would have devastated the Ukrainian economy.
Jovita Neliupsiene, the chief foreign policy adviser to the Lithuanian president, Dalia Grybauskaite, said on Friday that Mr. Yanukovich had told her boss in a telephone conversation on Wednesday that he could not sign the agreements with Europe because of potential economic damage to eastern Ukraine.Jovita Neliupsiene, the chief foreign policy adviser to the Lithuanian president, Dalia Grybauskaite, said on Friday that Mr. Yanukovich had told her boss in a telephone conversation on Wednesday that he could not sign the agreements with Europe because of potential economic damage to eastern Ukraine.
Mr. Yanukovich’s base of political support is in the mostly Russian-speaking southern and eastern parts of the country, which are also home to a large portion of Ukrainian industry.Mr. Yanukovich’s base of political support is in the mostly Russian-speaking southern and eastern parts of the country, which are also home to a large portion of Ukrainian industry.
The phone conversation between the two presidents was first reported by the Baltic News Service, a news agency based in Vilnius.The phone conversation between the two presidents was first reported by the Baltic News Service, a news agency based in Vilnius.
The Russian president, Vladimir V. Putin, speaking to reporters after a meeting with Prime Minister Recep Tayyip Erdogan of Turkey in St. Petersburg, denied any strong-arming and said Russia had merely informed Ukraine that if it signed a free trade deal with Europe, Russia would take steps to protect its businesses from an influx of cheap European goods through Ukraine by imposing new trade restrictions. In Washington, the White House said that Vice President Joseph R. Biden Jr. had called Mr. Yanukovich to express disappointment over the decision to “delay preparations for signature” of the European Union accords.
The Russian president, Vladimir V. Putin, speaking to reporters after a meeting with Prime Minister Recep Tayyip Erdogan of Turkey in St. Petersburg, denied any strong-arming. He said Russia had merely informed Ukraine that if it signed a free trade deal with Europe, Russia would take steps to protect its businesses from an influx of cheap European goods through Ukraine by imposing new trade restrictions.
Mr. Putin said it was the Europeans who were trying to pressure Ukraine and refusing to accept its decision to delay the accords. “This is pressure, this is blackmail,” Mr. Putin said, according to a Kremlin transcript of his remarks.Mr. Putin said it was the Europeans who were trying to pressure Ukraine and refusing to accept its decision to delay the accords. “This is pressure, this is blackmail,” Mr. Putin said, according to a Kremlin transcript of his remarks.
Asked about the phone call between Mr. Yanukovich and Ms. Grybauskaite, Mr. Putin used the moment to take a jab at the United States over its surveillance programs. “I don’t know what the Ukrainian and Lithuanian presidents discussed — you could maybe ask our American friends,” he deadpanned. “They will tell you.” Asked about the phone call between Mr. Yanukovich and Ms. Grybauskaite, Mr. Putin used the moment to take a jab at the United States over its surveillance programs. “I don’t know what the Ukrainian and Lithuanian presidents discussed — you could maybe ask our American friends,” he said. “They will tell you.”
It remained unclear if the Kremlin had offered Ukraine any promise of financial assistance. Olga Stankova, a spokeswoman for the International Monetary Fund, said that talks with Ukraine over an aid package had been underway for months, and that Ukraine had been aware of the requirements for securing such help since a visit by I.M.F. officials in October.
The European Union had set some conditions for the agreements, including a deal that would free Ms. Tymoshenko, the former prime minister, and allow her to seek medical treatment in Germany for chronic back problems. Western governments have long criticized her conviction on charges of abuse of authority and her seven-year sentence as politically motivated. She is currently in a prison hospital in the city of Kharkiv.
Ms. Tymoshenko, who now seems likely to remain in prison, released an open letter to Mr. Yanukovich imploring him to find a way to resurrect the accords. “Yesterday after the government decision to deny signing of the association agreement, I wanted to kill you; I think 70 percent of people felt the same way,” she wrote. “But now it is important not to sink into aggression, but to save the situation by all means.”