POROSHENKO CONFIRMED AS NEW FOREIGN MINISTER

C O N F I D E N T I A L SECTION 01 OF 02 KYIV 001753 SIPDIS E.O. 12958: DECL: 07/05/2019 TAGS: PGOV PREL UP SUBJECT: POROSHENKO CONFIRMED AS NEW FOREIGN MINISTER REF: KYIV 00406 Classified By: Political Counselor Colin Cleary for reasons 1.4(b,d) SUMMARY -------------- ¶1. (C) The Rada approved President Yushchenko's nominee, Petro Poroshenko, as Ukraine's new Foreign Minister on October 9. The position has been vacant since March when the Rada ousted former FM Oryzhko over his vocal opposition to Prime Minister Tymoshenko's policies. Poroshenko, a wealthy businessman with broad political connections, called for increased European integration and more pragmatic relations with Russia. His ability to balance the demands of Yushchenko and PM Tymoshenko is likely key to his nomination. Among other holdings, Poroshenko controls the popular national TV Fifth Channel. End Summary. COALITION BACKS PRESIDENT'S NEW PICK -------------- ¶2. (U) The Rada on October 9 approved Petro Poroshenko as Ukraine's new Foreign Minister. President Yushchenko announced Poroshenko's nomination the previous day when he withdrew his earlier nomination of the current Ukrainian Ambassador to the U.S., Oleg Shamshur. Poroshenko was backed by 240 of 450 MPs, including two from the opposition. Yushchenko and the coalition led by Prime Minister Tymoshenko have been at loggerheads over a replacement for former FM Volodomyr Oryzhko who was ousted by the Rada on March 3 (ref). The Rada's refusal to consider Yushchenko's nomination of Ambassador Shamshur left the position vacant for more than six months. After his Rada confirmation, Poroshenko called for Ukraine to continue its efforts at European integration and for "pragmatic, mutually beneficial relations with Russia, based on respect for mutual sovereignty." CAREER MIXES BUSINESS AND POLITICS -------------- ¶3. (U) Poroshenko is one of Ukraine's richest businessmen. Estimates vary, but many consider him a (dollar) billionaire. Poroshenko controls Ukrprominvest, which has interests in bus manufacturing, shipyards, banking, and media. He also owns Roshen, Ukraine's largest confectionery company, which has factories in both Ukraine and Russia. Poroshenko served as a member of parliament from 1998 to 2005 in various political parties and was the Chairman of the National Security and Defense Council in 2005. Since 2007 he has served as the Chairman of the National Bank's Supervisory Council. In addition to his business and political activities, in 2002 Poroshenko completed his doctoral studies at the Kyiv Institute of International Relations. He speaks English. COMPROMISE CARETAKER? -------------- ¶4. (C) Tymoshenko bloc (BYuT) MP Valeriy Pysarenko told us BYuT backed Poroshenko's nomination because he may be able to help normalize relations with Russia. Pysarenko explained that unlike previous FM Oryzhko, Poroshenko can engage constructively with Moscow and would not needlessly provoke the Kremlin. Pysarenko said that Poroshenko is also willing to cooperate with the Prime Minister on foreign policy rather than oppose her as Oryzhko had. Ihor Kohut, Director of the Agency for Legislative Initiatives told us that Poroshenko was a good compromise candidate for the FM job. He said that Poroshenko has good personal relations with both the President and PM and was strong enough to balance between each of their demands. Kohut described Poroshenko as a "caretaker" Foreign Minister who has the chance to "steady the weak Ministry of Foreign Affairs" until a new president is elected. OR PM CURRYING FAVOR? -------------- ¶5. (SBU) Party of Regions MP Nestor Shufrych criticized PM Tymoshenko's bloc for its support of Poroshenko's nomination. He said that Tymoshenko's sole reason for backing Poroshenko was to gain access to his media and financial resources, including the popular television station Kanal 5, for the upcoming presidential election. Kohut agreed that Tymoshenko likely considered the benefits of Poroshenko's media and financial resources, but doubted that this was the most important factor in his approval. NEMYRIA -------------- KYIV 00001753 002 OF 002 ¶6. (C) Deputy Prime Minister Nemyria, commenting to visiting Deputy Assistant Secretary of Defense Wallander October 8, noted that Poroshenko's wealth -- he called him a billionaire -- created potential conflicts of interest. While Poroshenko was National Security and Defense Council Secretary, he came under criticism that his business interests in Russia had created a conflict. Nemyria said that Yushchenko had consulted more on Poroshenko's nomination than he had Shamshur's. The President had floated the nomination with Poroshenko a month to two before and gave time for Poroshenko to build support. Nemyria highlighted Poroshenko's ambitious nature but added that there was no "ideal candidate" at this juncture. JUMPING RIGHT IN -------------- ¶7. (SBU) Poroshenko jumped right into his role, reportedly joining Yushchenko in Chisinau October 9 for the CIS Summit. He will have the opportunity to present himself to Ukrainian Ambassadors from around the world as they meet in Kyiv October 12-13. PETTIT