UKRAINE: REGIONS'S PARTY CONGRESS: A HANDSHAKE, A

C O N F I D E N T I A L SECTION 01 OF 03 KYIV 001940

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/08/2017
TAGS: PGOV PREL UP
SUBJECT: UKRAINE: REGIONS'S PARTY CONGRESS: A HANDSHAKE, A
COMMUNIST, AND THE RUSSIANS


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


1. (C) Summary. The Party of Regions August 4 party congress
was the least predictable of the major party congresses,
featuring both moderate speeches by Prime Minister Yanukovych
and faction leader Raisa Bohatyreva and well-received
speeches from Communist Party leader Symonenko and a
representative of the pro-Putin Duma party Yedina Rossiya
(United Russia). Yanukovych underscored the party's new
motto--Stability and Well-Being--and argued that his
government was the only one that protected average
Ukrainians. Most of the Regions MPs who followed were much
more openly critical of President Yushchenko and the
opposition calling them "destroyers of democracy;" there were
a number of references to the Orange Revolution as a coup.
There was also loud applause for special guest Konstantin
Zatulin blacklisted from Ukraine after he took part in
anti-NATO protests in Feodosiya in May 2006. Regions's new
party list includes most of the Yanukovych Cabinet, rewards
opposition defectors, and adds new elements like Energy
Minster Yuriy Boyko and PM Chief of Staff Serhiy Lyovochkin,
both of whom are connected to shadowy gas middleman
RosUkrEnergo.


2. (C) Comment. At the congress, the party played up its
stability and reluctance to go to new elections--trying to
contrast its strong leadership with the more chaotic Our
Ukraine. However, the surprising presentations by Symonenko
and the Russian MP also gave an optic of a pro-Russian party
that was proud of its current coalition. Although some in
Regions may be uncomfortable with this line, we are being
increasingly told that the party leadership feels it must
project this image if it is to protect itself from attacks by
leftist parties, like the Communists, Socialists, and
Progressive Socialists. The congress itself was run in an
orderly way, with all votes unanimous and journalists tightly
controlled. The composition of Regions's list suggests
overall satisfaction with its current team, although its top
ten differs from its 2006 top ten with the promotion of
Bohatyreva to the second spot, the inclusion of First deputy
PM Azarov, and the introduction of non-party members Inna
Bohoslovska and Nestor Shufrych. The inclusion of both of
the latter suggests accommodations with their political
backers, former President Kuchma son-in-law Viktor Pinchuk
and former Kuchma chief of staff Viktor Medvedchuk
respectively. End summary and comment.

The Congress Begins
--------------


3. (C) The Congress started off with standing ovations and
chants of "Viktor" and "Yanukovych" as the Prime Minister
entered the conference hall. The party presidium's 18
members took their seats on the stage--including Yanukovych,
Azarov, faction leader Bohatyreva, DPM Klyuyev, oligarch
Akhmetov, his political manager Borys Kolesnikov, Yanukovych
lawyer Olena Lukash, and MPs Hanna Herman, Taras Chornovil,
Viktor Tykhonov, Hryhoriy Skudar, and Vyachesalv Boguslayev.
Non-Regions notables at the congress included first Ukrainian
President Kravchuk, Economics Minister Kinakh, most of the
Cabinet (minus the Socialist and Communist ministers),and
defectors to the coalition from the opposition. Yanukovych,
Bohatyreva, Herman, and Chornovil were among the only
Ukrainian speakers at the conference--they were also among
the small minority who seemed to know the words to Ukraine's
national anthem.

Yanukovych's Speech: We Are Working For Good of the Country
-------------- --------------


4. (SBU) Yanukovych gave the first speech of the day, a
moderate talk that reflected the Party's new slogan:
Stability and Well-Being. He praised his Cabinet for its
success in working for the good of the country and criticized
the opposition for considering itself above the law. Regions
had demonstrated its readiness for compromise, but Our
Ukraine did not listen. He said his Cabinet stood for a
balanced foreign policy, a good economic policy, normal
relations with Russia, and closer ties to the EU. His
government was on the side of the people, while the
"so-called democratic, European President" was using the
constitution for his own benefit. His government was trying
to improve the lives of the people, but Yushchenko had
blocked their efforts. Regions was proposing unity, since
there was no alternative, but the opposition wanted absolute
power. He claimed that the Orange Revolution had been a
political-technical experiment and its proponents were
attempting another such experiment now.


5. (SBU) Yanukovych then ran through a series of possible

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social-welfare improvements, such as increasing the minimum
wage, giving money to young families to buy their first home,
working on a pension fund, increasing salaries for officers
in the military, and setting a minimum price for land sales.
He said that there needed to be changes to the constitution
and a working CabMin law. He mentioned the need for
administrative-territorial reform and strong local
government. Yanukovych wrapped up his speech with the phrase
that became a second slogan of the congress--when the
opposition shows a fist (note--a reference to People's
Self-Defense fist logo),we will offer them a handshake.

The Rest of the Regions: Beware of Orange Coups
-------------- --


6. (SBU) A number of Regions officials then made speeches.
Key themes were that Regions equaled stability, that the
opposition was destructive and selfish, and that Regions was
a reluctant participant in the elections. Bohatyreva said
that the early elections were revenge by the political
minority, who should really blame the situation on their own
disorganization and failures. She said Regions's program was
"national pragmatism"--including better pension and insurance
systems, greater moral values, and patriotism. Many speakers
criticized the Orange Revolution, Our Ukraine, and
Tymoshenko. There was very little offered in terms of
specific program ideas. MP Herman said that the orange
forces had caused a split between Ukraine and Russia. She
also amended Yanukovych's handshake for a fist line to say
that the opposition will feel the force of Regions's
handshake--"we won the last battle, we will win again."


7. (C) Kravchuk gave a wacky presentation, comparing
Yushchenko to Stalin in terms of his meddling in political
party affairs. He expressed his pride in becoming a new
member of Regions (although he is not included on the party's
electoral list) and praised Yanukovych as a great leader. MP
Chornovil--who got strong applause, most likely because
although he is the son of famous dissident and ardent
nationalist Vyacheslav, he had moved from the orange to the
blue camp (in 2004)--said that the third round of the 2004
presidential election had been illegal and falsified, but
said Regions would do its best to keep this election honest.
Fellow MP Boguslayev said that the Orange Revolution and the
upcoming Rada elections were both anti-democratic coups.

The Russians Are Backing Regions
--------------


8. (SBU) Early in the conference, the announcer welcomed very
special visitor Russian Duma deputy Konstantin Zatulin, who
was put on Ukraine's blacklist in 2006 for participating in
the anti-NATO protests in Feodosiya; Zatulin received loud
applause. Another Duma MP, Konstantin Kosachev from the
pro-Putin Yedina Rossiya party, was invited on stage to give
a speech on behalf of Duma Speaker Borys Gryzlov. His speech
drew the loudest applause of the day. It underscored the
partnership agreement signed between Yedina Rossiya and
Regions. (Note. A Regions delegation, including Azarov and
Kolesnikov, recently traveled to Moscow to sign the
agreement. End note.) Kosachev talked about the eternal and
strong friendship between Ukraine and Russia. He said that
Regions was a constructive and responsible political force
and the Russians had been very pleased with the results of
the March 2006 Rada elections. He said democracy was not a
color, but respect for the constitution and for the people,
no matter where the people live or what language they speak.
He said that Russia wants to live in a Europe without
borders, but there was still one border--to Ukraine's west.
He said that new elections do not answer the needs of the
Ukrainians, but they will show how popular Regions is, adding
that Regions would build a great state and a great Ukraine.
Kosachev closed by saying that Russia is rooting for Regions,
once again drawing the loudest applause of the day.

Symonenko: Keep the Coalition Strong
--------------


9. (SBU) Regions also invited coalition partner and head of
the Communist party Petro Symonenko to address the congress.
As usual with the Communist leader, Symonenko gave a harsh
and fierce criticism of Yushchenko. He said that the
Anti-Crisis Coalition had crossed the Rubicon together in
2006 in defeating the orange forces and they must strengthen
and solidify the current coalition to fight the usurpation of
power by Yushchenko and his circle. He claimed Yushchenko
had created a split in the political elite while seeking
personal benefit for his family and friends. He said that
the coalition must protect Ukraine's national capital,
providing jobs for everyone and creating economic

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independence from all sides.

Party Approves Election List and Platform
--------------


10. (C) After the speeches, Yanukovych moved on to party
business. He proposed that the congress approve the party
list as a whole, but only read out the top ten names, leaving
delegates to support the list blindly. We also noted that in
all votes taken, the assumption appeared to be that all
delegates supported the motion and no attempt was made to
actually count the votes (this also happened at BYuT's
congress; only Our Ukraine publicly counted the votes). In
one democratic highlight, however, Yanukovych announced that
Regions political committee had finally decided to expel from
the party list MP Kalashnikov, who was caught on film in
August 2006 roughly pushing a tv cameraman outside the Rada,
raising an outcry from freedom of speech proponents.

Party List--New Members
--------------


11. (C) Comment. The Regions party list approved by the
congress starts off with a surprising top five, including two
non-party members--Deputy Justice Minister Inna Bohoslovska
and Minister of Emergency Situations Nestor Shufrych.
Bohoslovska, whose Viche party did not make it into the Rada
in 2006, is a political ally of oligarch Viktor Pinchuk,
suggesting the Dnipropetrovsk baron may have found an
accommodation with his Donetsk neighbors. Shufrych's
addition to the list has been attributed to the alliance with
Regions of the Social Democratic Party of Ukraine
(united)--known for the anti-democratic, pro-Russian stance
of its leaders, such as Kuchma Chief of Staff Medvedchuk. At
the same time, the exclusion of Medvedchuk himself from the
list, as well as other SDPU(o) members--Medvedchuk boasted to
the press that he would get ten spots--is a positive sign.
Also reassuring is the absence of Socialists from the list,
other than junior oligarch and Kuchma godson Andriy Derkach,
who was only a Socialist for the 2006 elections.


12. (C) Most Cabinet ministers are on the list, including the
politically unaffiliated like Dmytro Tabachnyk, Oleksandr
Kuzmuk, and Yuriy Boyko. Regions did reward opposition
defectors, giving slots to Economics Minister Kinakh and his
allies, former OU MPs Serhiy Holovatiy and Oleksandr Volkov
(the basketball player),former BYuT financial backer Vasyl
Khmelnitskiy, and on-again off-again Prosecutor General
Svyatoslav Piskun. PM Chief of Staff and rumored
RosUkrEnergo liaison Serhiy Lyovochkin is also on the list,
his first foray into elected politics.


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