Identifier
Created
Classification
Origin
06KYIV4299
2006-11-17 15:40:00
CONFIDENTIAL
Embassy Kyiv
Cable title:  

UKRAINE: PRESIDENT YUSHCHENKO FOCUSED ON KEEPING

Tags:  PREL PGOV PHUM UP 
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VZCZCXRO2432
PP RUEHDBU
DE RUEHKV #4299/01 3211540
ZNY CCCCC ZZH
P 171540Z NOV 06
FM AMEMBASSY KYIV
TO RUEHC/SECSTATE WASHDC PRIORITY 0409
INFO RHEHNSC/NSC WASHDC PRIORITY
RUCNCIS/CIS COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 KYIV 004299 

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/17/2016
TAGS: PREL PGOV PHUM UP
SUBJECT: UKRAINE: PRESIDENT YUSHCHENKO FOCUSED ON KEEPING
PM YANUKOVYCH ON EURO-ATLANTIC COURSE

Classified By: Ambassador for reasons 1.4(a,b,d).

C O N F I D E N T I A L SECTION 01 OF 02 KYIV 004299

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/17/2016
TAGS: PREL PGOV PHUM UP
SUBJECT: UKRAINE: PRESIDENT YUSHCHENKO FOCUSED ON KEEPING
PM YANUKOVYCH ON EURO-ATLANTIC COURSE

Classified By: Ambassador for reasons 1.4(a,b,d).


1. (C) Summary: In a 40-minute meeting November 17,
President Yushchenko told visiting EUR A/S Fried that he was
optimistic about making cohabitation work and his ability to
move his relationship with PM Yushchenko and his team from
coexistence to cooperation. He expressed concern about
several disagreements with the PM and Cabinet of Ministers in
specific areas, but said that both he and the PM were
committed to Euro-Atlantic integration as the ultimate
guarantor of Ukrainian sovereignty and independence. On
NATO, Yushchenko said that he was ready to sign a MAP, and
that agreement on a MAP would consolidate Ukraine behind
membership. Yushchenko supported the PM's December visit to
Washington, noted that his Chief of Staff, Viktor Baloha, and
newly-appointed Chairman of the National Defense and Security
Council (NSDC) Vitaliy Haiduk both planned to visit the U.S.
soon, and hoped that the Secretary and the President would
both be able to visit Ukraine in the near future. End
Summary.

From Coexistence to Cooperation
--------------

2. (C) President Yushchenko said that although the internal
political situation was complex, he was optimistic about
moving from coexistence to cooperation. Ukraine's political
elites were not yet united and he had had a very short time
to make that happen. Former opponents now had to learn to
work together for the good of the country. Yushchenko said
that he did not want to minimize the difficulties of the
process, but that his long November 13 meeting with the PM
had been very positive and that he was determined that they
would continue to meet.

Not Satisfied in All Areas
--------------

3. (C) Yushchenko highlighted the fact that he was not
happy with all the decisions made by the PM and Cabinet of
Ministers. He did not like the grain export restrictions and
the control of grain process; he was not satisfied with pause
in the privatization process; and he did not like the
financial management provisions in the current draft of the
budget. Yushchenko noted that he was unhappy with the gas

price agreements since there was no formula included for
setting the price -- in the fact the deal had been agreed
with the "sigh" of politics. Also of concern were the PM's
"contradictory" statements made in Brussels September 14,
although Yushchenko was convinced that this was now an issue
on his personal agenda with the PM and that the two teams
were united in support of a Euro-Atlantic direction for
Ukraine.


4. (C) President Yushchenko was confident that the issues
raised by the PM's team during the March parliamentary
elections were simply campaign rhetoric. Yushchenko was sure
that there would be no more talk of federalism, of giving
Russian the status of a second official language or of
opposition to a united church. However, it was important to
find ways to resolve all of these issues.

But Euro-Atlantic Integration Key
--------------

5. (C) Yushchenko said that he wanted to raise several
issues. He believed that Euro-Atlantic integration and a
European direction should be the dominant prerequisite for
the PM. Yushchenko was clear -- only Euro-Atlantic
integration could guarantee Ukrainian sovereignty and
independence. And Ukraine could not share in the economic,
social and humanitarian aspects of Europe without being
within the framework of its common defense structure.
Therefore, it was critical now to raise the MAP issue and he
was ready to sign. This was an issue that he had raised with
the PM; and he was satisfied with the PM's answers, but this
was a question of taking steps and concrete actions. If the
President, PM and Speaker all signed on to MAP, then this
would be an important step toward consolidating the elite in
support of a common foreign policy and defense policy.
Otherwise Ukraine's very independence could be threatened.


6. (C) Regarding WTO, Yushchenko said that it was important
to "go the distance" and expressed the hope that the WTO
working group would meet in December and come up with a
positive result. He worried about the model of "harmonizing"
Ukraine's WTO accession with Russia, noting that
harmonization would mean that Ukraine would not be able to
accede to the WTO for "several years." Instead, it was
critical for Ukraine to implement the entire package of
legislation required for WTO accession. He said that 21 laws
had been passed in the first reading; Chief of Staff Baloha
corrected him, noting that the draft law on metallurgy was

KYIV 00004299 002 OF 002


still being written.


7. (C) Yushchenko described the "logic" of the European
model of integration as beginning with WTO accession. This
would be followed by negotiation of a free trade agreement
with the EU, and then sectoral agreements in 4-5 key areas --
energy systems, space exploration and aviation, free media
and democracy, legal and judicial issues and tourism.
However, with the WTO accession, then "we would have to
reject it all" and settle for a far lower level of
cooperation.

Looking for U.S. Help in Getting into Europe
--------------

8. (C) Although a date and time did not have to be fixed,
Yushchenko asked A/S Fried for support with the Europeans on
getting some indication that EU membership was possible at
some point in the future. What was not needed was yet
another "neighborhood." In particular, help was needed with
the UK, Germany and France. A/S Fried urged Yushchenko to
ensure that Ukraine took the necessary steps to help
themselves by fighting corruption and moving toward the
Euro-Atlantic community; this was the best way to convince
the Europeans that Ukraine was a good EU candidate. In
response to A/S Fried's comment that the Europeans were in
disarray, Yushchenko quipped that "the Europeans themselves
had turned into Euro-skeptics."

Supporting the Bilateral Relationship
--------------

9. (C) Yushchenko foresaw a dynamic bilateral policy
dialogue for the next year, beginning with a series of
visits, including the PM's December visit to Washington -- a
trip that he fully supported as a way to ensure the PM's
support for his strategic goals for the country. A/S Fried
agreed, noting that the PM could use the visit to convince
Americans that he wants to lead Ukraine into the
Euro-Atlantic community. Yushchenko supported trips to
Washington by Presidential Chief of Staff Baloha and NSDC
Chairman Haiduk and looked forward to visits to Ukraine by
the Secretary and the President. Yushchenko suggested that a
"Gore-Kuchma" like series of meetings be re-established in
order to balance the existing Yushchenko-Putin Commission,
but in a "new version."


10. (C) In specific areas, Yushchenko hoped that U.S.
technical support for ongoing security reform would continue
(military-to-military programs) and that the U.S. would
continue to help on energy independence and conservation.
Yushchenko also asked about continued cooperation in the
nuclear energy sector, given Ukraine's current 100 percent
dependence on Russia for nuclear fuel. He requested
continued USG support for the successful commercial venture
with Westinghouse to produce nuclear fuel rods and diversify
its supply away from complete dependence on Russia. A/S
Fried said that the U.S. was strongly in favor of
diversification in this area and would help. Yushchenko was
enthusiastic about the MCC program, both the anti-corruption
threshold program and a possible future compact, expressing
the hope that MCC would provide the resources for a powerful
development push and a "national breakthrough."


11. (U) A/S Fried did not have the opportunity to clear this
cable.


12. (U) Visit Embassy KYIV's classified website:
www.state.sgov.gov/p/eur/kiev.
Taylor