PRESIDENT AND PM CALL IN DIP CORPS; DEFENSE

C O N F I D E N T I A L SECTION 01 OF 02 KYIV 000988 SIPDIS E.O. 12958: DECL: 06/05/2019 TAGS: PGOV PINR PREL UP SUBJECT: PRESIDENT AND PM CALL IN DIP CORPS; DEFENSE MINISTER DISMISSED REF: A. KYIV 694 ¶B. KYIV 950 KYIV 00000988 001.2 OF 002 Classified By: Charge James Pettit for reasons 1.4 (b,d). Summary -------------- ¶1. (SBU) President Yushchenko and Prime Minister Tymoshenko on June 5 called in selected HOMs to argue their respective positions on a potential broad coalition between BYuT and opposition Party of Regions (Regions). Yushchenko characterized the potential BYuT-Regions marriage and their planned constitutional changes an illegal dismantling of democratic institutions. Tymoshenko in turn argued that the country needs reform now or it could be torn apart in the upcoming presidential election, and any constitutional changes will be legal under current law. In the Rada, Tymoshenko's BYuT and opposition Regions voted together to dismiss Defense Minister Yuriy Yekhanurov, a key Yushchenko ally. Rada contacts say a grand coalition could be announced on Tuesday if BYuT and Regions can agree to unite. End Summary. He Said -------------- ¶2. (C) President Yushchenko on the morning of June 5 called in G-7, Visegrad, and Swedish HOMs. Yushchenko, flanked by NSDC Secretary Bohateryova and other staff, characterized BYuT/Regions efforts at forming a broad coalition and passing a new constitution "an illegal dismantling of democratic institutions without referendum." The President focused especially on two facets of the new constitution as reported in the press (and confirmed by Rada contacts),the extension of the current Rada's term from 2012 to 2014, and the direct election of the President by the Rada. These steps would "overturn constitutional rule," according to Yushchenko, who closed the session with the statement "I will not allow election of the President by the Rada." The President did not outline any next steps he may take and left the meeting without taking questions. She Said -------------- ¶3. (C) Prime Minister Tymoshenko matched Yushchenko with an afternoon session with HOMs from Germany, France, the UK, EC and the US. Tymoshenko justified the need for a broad coalition with Regions, saying that a presidential campaign and election could tear the country apart. She conceded that 84 percent of Ukrainians oppose the idea of an indirectly elected president. She countered that under the new system, voters would be able to "in effect," directly elect a stronger executive government as the first name on each party list would be that party's candidate for Prime Minister. The PM reported that the first draft of what she termed a "sensible constitution" was finalized (reftels),and that three factions (BYuT, Regions and Lytvyn Bloc) supported it. Tymoshenko reported that they had bowed to public opposition to a two-year extension of the current Rada's term -- election will be held in 2012 as scheduled. The PM stressed that any changes to the constitution would be legal under the current constitution and would not require a national referendum. Grand Coalition Update -------------- ¶4. (C) Rada contacts told us on June 5 that BYuT and Regions would continue to negotiate the details of their potential coalition agreement through the weekend. Even if the two sides reached final agreement, our contacts did not expect an announcement on the coalition before next week. The Rada voted June 5 to work in plenary session again starting June 9 -- it had been scheduled to be a committee week with no floor activity. BYuT MP Valeriy Pysarenko told us that both Regions and BYuT planned to hold faction meetings on Tuesday. If both factions could agree to unite, the coalition could be announced in the Rada on Tuesday afternoon. Defense Minister Dismissed -------------- ¶5. (U) The Rada on June 5 voted to dismiss Defense Minister Yekhanurov over allegations that he failed to properly oversee Defense Ministry land sales and procurement contracts for food and fuel. The dismissal garnered 363 votes (out of 398 MPs present) with 161 Party of Regions, 152 Tymoshenko Bloc (BYuT),27 Communist, 19 Lytvyn Bloc, and 4 Our Ukraine-People,s Self Defense (OU-PSD) bloc MPs voting in KYIV 00000988 002 OF 002 favor. Yekhanurov was invited to the Rada to make a statement prior to the vote, but refused to attend the parliamentary session. ¶6. (C) MPs denied that Yekhanurov,s removal was connected to efforts to negotiate a new coalition between BYuT and Party of Regions or that it would cause the current coalition to fracture. BYuT Deputy Faction leader Andriy Kozhemyakin said that the party had long worked to remove Yekhanurov and that the support of the Lytvyn bloc and Communists, who are not part of the proposed new coalition, showed that this was not related to the ongoing negotiations. Regions MP Yuriy Miroshnochenko said that the vote was not a "rehearsal for a new coalition" but was simply a move to replace a minister who had failed to properly oversee the actions of his ministry. BYuT MP Valeriy Pysarenko and OU-PSD MP Volodomyr Ariyev both told us that although the current coalition partners could not agree on Yekhanurov,s fate, BYuT and Lytvyn bloc,s vote to dismiss him will not break up the current coalition. Comment -------------- ¶7. (C) With a dwindling domestic political constituency, Yushchenko's appeal to the international community was an attempt to garner support for his fight against the potential BYuT-Regions coalition. Tymoshenko has maintained since April that these steps are necessary to insure Ukraine's continued democratic development. While none of the proposed changes in the new draft constitution (as reported) appear to directly violate the current constitution, several are widely perceived as undemocratic in their impact -- especially the provisions extending the Rada's current term by two years, which she claimed had been abandoned, and indirect election of the President in the Rada. Tymoshenko is aware of her uphill battle in convincing Ukrainians, and the international community, of the democratic legitimacy of her efforts, but is holding to her argument that the changes are needed and will ultimately result in a more democratic and stable country. PETTIT