EU Urges Ukraine Elections to Break Stalemate Over Protests (1)
The European Union is pushing for
new elections in Ukraine to break a political stalemate between
the government and protesters manning street barricades for
almost three months.
EU foreign-policy chief Catherine Ashton called for
President Viktor Yanukovych and opposition leaders to engage in
more dialogue after the 28-member bloc said it was “alarmed”
by violence and evidence of civil and human-rights abuses. The
EU is working with civil-society leaders in the ex-Soviet
republic to help end the demonstrations that have blocked parts
of Kyiv since November, it said in a statement yesterday.
The EU stresses “the importance of stopping any form of
violence, bringing to justice those who have perpetrated that
violence and moving forward to the work of the parliament on
constitutional reform, which is a key part of trying to solve
this crisis, and onward to free and fair elections,” said
Ashton after foreign ministers met in Brussels yesterday.
Ukraine has been rocked by a crisis triggered Nov. 21 when
Yanukovych snubbed an offer to forge closer ties with the EU
over a $15 billion deal with Russia. Opposition leaders are
struggling to force a change in the constitution back to its
pre-2004 version that would shift some powers from the president
to the prime minister. They argue Yanukovych has abused his
power and is marching the country closer to default.
Death Toll
Seven demonstrators and two policemen have died since the
protests began, crippling Ukraine’s ability to raise funds. The
authorities are grappling to stabilize the economy and have
imposed capital controls to stem a slide in the hryvnia.
Meanwhile, some foreign ministers sought sanctions against
Ukraine while others proposed boosting incentives to steer the
Ukrainian government back toward the west.
“We are primarily in the carrots business, not the sticks
business,” said Swedish Foreign Minister Carl Bildt yesterday.
“There won’t be any funds for an un-reformed Ukraine,” added
his Polish counterpart, Radoslaw Sikorski.
The cost of insuring Ukraine’s debt against non-payment for
five years using credit-default swaps rose 82 basis points to
1,059 yesterday, CMA data showed. The CDS for Argentina, which
shares Ukraine’s CCC Standard Poor’s rating, traded at 2,378
basis points, according to CMA.
The yield on the Ukrainian government’s dollar bond due
2023 fell seven basis points to 9.919 percent as of 10:54 a.m.
in Kyiv, data compiled by Bloomberg show.
Constitutional Debate
Talks between opposition and Yanukovych have ended with no
solution as the president seeks to delay changes in the
constitution. Opposition leaders, who are also not in agreement
on what to change in the constitution, want a vote on curbing
presidential rights, including picking the prime minister, as
soon as this week. Yanukovych insists up to six months is needed
to make constitutional changes.
Opposition called supporters to rally as soon parliament
meets to vote on the change. No date has been set for such an
emergency meeting, which was originally supposed to be scheduled
for this week.
Thousands of people gathered on Feb. 9 in Kyiv’s
Independence Square to demand snap elections and curbs on
presidential powers. Opposition leader Arseniy Yatsenyuk told
the crowds that the U.S. and the EU are ready to step in with
financial aid.
The EU-offered association agreement, which includes closer
trade ties, is still on the table for Ukraine, though it is not
the “final goal,” said Lithuanian Foreign Minister Linas Linkevicius in a statement on the ministry’s website.
Rising Tensions
Attempts to reduce tensions in the wake of deadly clashes
between protesters and police, including Premier Mykola Azarov’s
Jan. 28 resignation, have failed to clear the streets.
Demonstrators have erected barricades and are holding out in a
tent camp near the main square. They’ve also seized government
buildings in Kyiv and in other cities.
“The current atmosphere of impunity which allows for such
acts to take place must be addressed,” the EU said in the
statement yesterday. “The EU will remain actively engaged with
Ukraine and maintain its high-level presence.”
The EU also offered Ukraine “expert support” in helping
put the country “back on a sustainable path of reforms.”
“The EU remains committed to supporting Ukraine’s reform
course,” it said. “On the basis of a new Ukrainian government
pursuing economic and political reforms, the EU is ready to
further pursue its efforts with the international community and
international financial institutions to assist Ukraine, in line
with well-established conditions, to find a sustainable way out
of its difficult economic situation.”
To contact the reporters on this story:
Daryna Krasnolutska in Kyiv at
dkrasnolutsk@bloomberg.net;
Kateryna Choursina in Kyiv at
kchoursina@bloomberg.net;
Ian Wishart in Brussels at
iwishart@bloomberg.net
To contact the editors responsible for this story:
Balazs Penz at
bpenz@bloomberg.net;
James M. Gomez at
jagomez@bloomberg.net;
James Hertling at
jhertling@bloomberg.net