Georgia represents threat to region; Ukraine doesn't

[stepanstas]

Ukraine disappoints Russia on Georgia rebel regions

KIEV — President Viktor Yanukovych said Friday Ukraine was against recognizing Georgia's rebel regions, dashing Russian hopes Kiev will support one of Moscow's most controversial policies.

Russia recognised Abkhazia and South Ossetia as independent after fighting a brief war in August 2008 with Georgia over their status, but its hotly-contested move has only been followed by a handful of far-flung states.

Yanukovych -- a pro-Russian figure who defeated the leaders of the pro-West Orange Revolution in February elections -- said the recognition of Abkhazia and South Ossetia, as well as that of Kosovo, were against international law.

"I have never recognized Abkhazia, South Ossetia or Kosovo as independent states. This is a violation of international laws and norms," he told reporters at a news conference to mark his first 100 days in power.

"According to international law, any violation of the territorial integrity of any state is forbidden."

The president said he had never "in any interview" supported actions which violated the borders of states.

While in opposition in 2008, Yanukovych declared that Ukraine should "accept the will" of the people of South Ossetia and Abkhazia and "recognize their independence," according to the website of his party.

The recognition of Kosovo by Western powers and most of the EU infuriated Russia, a traditional ally of Serbia, and analysts believe this encouraged Russian recognition of the Georgian breakaway regions.

Yanukovych's comments appear aimed at emphasizing his vision of Ukraine as a neutral, non-aligned state, which while ditching the previous government's aim to join NATO will also not join Russian-led military alliances.

The day earlier, parliament had voted to formally end the ambition to join NATO espoused by the administration of previous President Viktor Yushchenko -- a goal which had deeply riled Russia.

Carefully balanced neutrality between East and West was the flagship policy of Ukraine's second post-independence president, Leonid Kuchma.

Since taking power, Yanukovych has moved with blistering speed to reinforce ties with Moscow, agreeing a deal to extend the stay of the Russian Black Sea Fleet in Ukraine in an exchange for a huge discount on gas prices.

But there have been signs Kiev is nervous at the swiftness of events, notably after Russian Prime Minister Vladimir Putin astonished his Ukrainian counterpart with an impromptu announcement their state gas firms should merge.

Prominent Russian MP Konstantin Zatulin said Yanukovych's statement was linked to Ukrainian concerns about separatism on its Black Sea peninsula of Crimea which has a Russian majority as well as a large Tatar minority.

"The doubts about the territorial integrity of Ukraine have not disappeared and these are making Kiev extra careful," he told the Interfax news agency.

But he said the issue was not paramount in Russian-Ukrainian relations and expressed hope that Ukraine "after some time comes to a different decision".

Russia's recognition of Abkhazia and South Ossetia as independent was condemned by the West, which considers the two regions to be an integral part of Georgia.

Embarrassingly for Moscow, so far only the South American states of Nicaragua and Venezuela and the tiny Pacific island nation of Nauru have followed its move.

Even Russia's once steadfast ally Belarus has so far held off from recognizing the rebel regions.

Copyright © 2010 AFP. All rights reserved.

[Gotno Gizmo]

I believe it is a sad sign of the times that in recent years we have witnessed the splintering of former states into newly declared terrirtories resulting from ancient religious / clan/ dialect separators. It is an ongoing situation with separatists within Europe as well as other parts of the world. Why is that in the age of the jet plane humanitty is anxious to restore ancient frontiers that had more meaning in the journey times of the on horse or on foot, that it does in a modern transportation and trading environment.
More governments mean more politicians with their devisive squabbles and meddling.
It cannot be to the benefit of any would "new" country, save one that finds itself right on top of an oil field with no other such sites within a large area. If only humanity cou;d see the benefits of more integrated cooperation rather than the disadvantages of division.

[Hannia]

GG,

The real danger facing the world is not from separatists, the groups voting for their independence, but from the emergence of undemocratic massive state bureaucracies.

One would be naive to think that the threat of violence does not come from the larger parties in these events, in this particular case from Putin's Russian Federation and his secret police.

[IreneLviv]

Will all due respect to you Hannia,, I totally agree with you here , especially re secret police!

[Hannia]

As Ukrainian industry is driven toward consolidation by global trends, Mr Rinat Akhmetov is fighting to hold his own dominating position in the nation lucrative metals sector against what looks like a stealth invasion from Russia.

Battles are currently being fought for control of two Ukrainian steel mills, with tactics ranging from the covert transfer of shares to intense struggles among competing bidders. One such ownership tug of war is flaring over Mariupol based Ilyich Steel Mill, the nation third largest triggering Mr Viktor Yanukovych President call this week for law enforcement officers to investigate what is happening.

When the dust settles, the question of who owns the nation top engines of industry and how they were acquired could send strong signals internationally. For one, it could gauge how far Ukraine’s economy will tilt under Russian control. Secondly, it could show whether the country is moving away from free market levels of transparency back towards the wild 1990s decade of gangster capitalism where tycoons close to top political leaders grab assets at will.

For now, the question to what lengths the would be consolidators of Ukraine metal sector will go is an open one that has many growing increasingly nervous.

Mr Serhiy Mahera Ilyich spokesman who claims his company is the target of a hostile takeover said “If this raider attack on Ilyich is successful, it will show that it’s no longer possible to conduct normal business in Ukraine.”

Mr Nick Piazza head of sales at BG Capital investment bank said the stakes are high, but for slightly different reasons. He said that steel mill owners are driven by the need to be vertically integrated meaning they need to control as many stages of production as possible, from acquisition of raw ore which Ukraine has the world fourth largest reserves of to exports of finished products where Ukraine ranks globally among the top 10 and everything in between in order to be competitive globally.

Integration means survival of the fittest and the fittest in Ukraine could end up being Russia and its oligarchs who have started advancing into Ukraine quickly since the Moscow friendly Mr Yanukovych became president. Mr Piazza said “Mr Akhmetov is the strongest domestic player in Ukraine, Russia is a regional giant and metallurgy is the sector where it’s all going to start.”

The first shots of the battle for Ukraine metallurgical industry which accounts for 40% of the country exports were heard at the start of 2010 when unspecified Russian investors took control of steelmaker Industrial Union of Donbass including two of Ukraine top five mills. Now just a few months later, the action is centered on two other top metallurgical facilities Zaporizhstal and Ilyich. They are ripe for the picking due to their reliance on other sector players for iron ore.

On May 26th two men claiming to represent offshore companies registered in Cyprus announced the sale of Ilyich to an unknown Russian investor. No banks were involved in the alleged transaction which valued the USD 2 billion factory at only USD 30 million.

Mr Volodymyr Boyko CEO of Ilyich who manages the shares of the mill holding company accused unidentified corporate raiders of trying to seize the asset.

A week later at a June 2nd press conference the broker who actually transferred the shares in Ilyich refused to reveal the seller in whose name he carried out the deal. Mr Sergey Velikanov director of GPI Brok said “I am inhibited by client confidentiality.”

Ilyich spokesperson Mr Mahera accused Mr Velikanov of abusing his status as temporary custodian of the shares to push through the shady deal. Mr Mahera said “We let down our guard, adding however that not a single soul can prove that we authorized the broker to sell these shares.”

Another Ukrainian steel mill set to change hands is Zaporizhstal which Mr Akhmetov holding company System Capital Management acknowledged it was trying to acquire. However, Ukrainian media have recently reported that more unspecified Russian investors had outbid Mr Akhmetov in negotiations with Zaporizhstal owners a grouping led by two Soviet born businessmen Toronto based Alex Mr Shnaider and Mr Eduard Shifrin.

Mr Akhmetov company spokesperson Ms Anna Terekhova said however, that her company is still in the running. She said “We submitted all documents but a final decision has not been taken yet.”

So is there a link between the mysterious Russian investors in Ukraine metallurgical industry which is ranked 7th worldwide?

(Sourced from Kyiv Post. Independence. Community. Trust - Homepage)

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One can only wonder if Putin and Yanukovich haven't already started to butt heads.

[Gotno Gizmo]

Originally Posted by Hannia

GG,

The real danger facing the world is not from separatists, the groups voting for their independence, but from the emergence of undemocratic massive state bureaucracies.

One would be naive to think that the threat of violence does not come from the larger parties in these events, in this particular case from Putin's Russian Federation and his secret police.

I could empathise with Putin more if he didn't have a background as a "security man". But of course it's not just the Russian security or secret service people, you can include the USA, Britain France, Israel ,to name but a few, who plot, conive and manipulate to bring death, disorder and other trauma that often involve innocent people. The typical excuse for their existence is that they must protect us from terrrorism, and in all fairness they do. Unfortunately, they also act on the behest of their paymasters to neutralise those who pose an embarrasment to their government because they could whistle blow on a matter that they do not want to be released in the public domain. Thus the masses can be "kept in the dark", but in our own best interests of course!