Welcome to the U.S.-Ukraine Business Council

UKRAINE BUSINESS NEWS: SEVENARTICLES  

1.VICE PRESIDENT BIDEN PAYS OFFICIAL VISIT TO UKRAINE NEXT WEEK 
Expected to deliver speech to American and Ukrainian business people.
Ukrainian News-on-line, Ukrainian News Agency
Kyiv, Ukraine, Wednesday, July 15, 2009 

2. VICE PRESIDENT BIDEN'S VISIT TO KYIV EVIDENCE OF UKRAINE'S
IMPORTANCE TO U.S. SAYS PRES YUSHCHENKO'S PRESS SECRETARY 

Interfax Ukraine News, Kyiv,Ukraine, Wednesday, July 15, 2009

3. JOE BIDEN GOING TO UKRAINE. TO COMMUNICATE WITH
UKRAINIANS AND PREPARE THEM FOR OBAMA'S ARRIVAL?
Media International Group (MIGnews.com.ua) Kyiv, Ukraine, Wed, July 15, 2009
4.  JOE BIDEN'S CHOICE DURING VISIT TO UKRAINE
Go through the motions or take on the hard issues
Analysis & Commentary: By Yulia Pushko
Government Relations Director, Willard
Kyiv Post, Kyiv, Ukraine, Friday, July 3, 2009

5.  UKRAINE'S FOREIGN MINISTRY EXPLORING POSSIBILITY OF
ARRANGING MEETING BETWEEN YUSHCHENKO AND OBAMA  
Ukrainian News-on-line, Ukrainian News Agency
Kyiv, Ukraine, Wednesday, July 15, 2009

6.  THE OBAMA-BIDEN DYNAMIC
Analysis & Commentary: by Jenn Stachowski
Examiner.com, Denver, Colorado, Wed, July 15, 2009

7.  ANTICIPATING BIDEN'S VISIT TO GEORGIA
Analysis & Commentary, The Messenger Staff
The Messinger, English language newspaper, Tbilisi, Georgia, Tue, July 14, 2009
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1. US VICE PRESIDENT BIDEN PAYS OFFICIAL VISIT TO UKRAINE NEXT WEEK 
Vice President expected to deliver speech to American and Ukrainian business people.

Ukrainian News-on-line, Ukrainian News Agency
Kyiv, Ukraine, Wednesday, July 15, 2009 

KYIV - Vice President of the United States Joseph Biden will pay a working visit to Ukraine on July 20-22, Deputy Minister of Foreign Affairs of Ukraine Kostiantyn Yeliseev has announced in course of a press club meeting. He stressed that Biden would visit Ukraine at the invitation of President Viktor Yuschenko.

During the visit the US Vice President will meet President Yuschenko and Prime Minister Yulia Tymoshenko, and also he may meet leader of the Party of Regions Viktor Yanukovych and Verkhovna Rada deputy Arsenii Yatseniuk of the Our Ukraine - People's Self-Defense bloc faction.

Yeliseev also said that Biden and Yuschenko are planned to attend the Holodomor 1932-33 victims memorial.

SPEECH TO AMERICAN AND UKRAINIAN BUSINESS PEOPLE
Alongside with this, the US Vice President is expected to deliver speech to American and Ukrainian business people.

The White House press service said Biden also to pay a visit to Georgia on July 20-25. "The vice president intends to show the US support to democratic and economic reforms and discuss the issues both countries are interested in," the press service said.

Biden intends to meet with political leaders of Ukraine and Georgia and also with representatives of the opposition and of the public.

CHARTER ON STRATEGIC PARTNERSHIP
According to President Viktor Yuschenko's press service, Ukraine and the United States will confirm the intention to develop the co-operation in the frames of the Charter on the strategic partnership signed in December 2008.

At the meeting with Biden, Yuschenko intends to discuss a wide range of issues on the cooperation in the fight against the global financial and economic crisis, acceleration of the cooperation on the international arena, in the issues of energy security, strategic stability and the regulation of the regional conflicts.

Besides, it is planned to discuss a number of issues linked to the development of civil society. As Ukrainian News earlier reported, Secretary of the National Security and Defense Council Raisa Bohatyriova visited the United States on April 13-15. 
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2.VICE PRESIDENT BIDEN'S VISIT TO KYIV EVIDENCE OF UKRAINE'S
IMPORTANCE TO U.S. SAYS PRES YUSHCHENKO'S PRESS SECRETARY 

Interfax Ukraine News, Kyiv,Ukraine, Wednesday, July 15, 2009

KYIV -U.S. Vice President Joe Biden's visit to Kyiv is evidence of the importance of Ukraine as a strategic partner for the United States, the Ukrainian president's press secretary, Iryna Vannykova, has said.

"Joseph Biden's visit to Ukraine is evidence of the importance of Ukraine as a strategic partner for the United States in the Eastern European region," she said at a briefing in Kyiv on Wednesday.

Vannykova said that the visit was of huge importance for the development of a bilateral political dialogue and the Ukrainian-U.S. strategic partnership.
She said that this would be the first visit to Ukraine by a top-ranking official from the new U.S. administration.  Vannykova said that Biden would visit Ukraine at President Viktor Yuschenko's invitation next week.
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3.  JOE BIDEN GOING TO UKRAINE. TO COMMUNICATE WITH
UKRAINIANS AND PREPARE THEM FOR OBAMA'S ARRIVAL?

Media International Group (MIGnews.com.ua) Kyiv, Ukraine, Wed, July 15, 2009

KYIV - The U.S. Vice President Joe Biden will be making a visit to Ukraine on July 20-22, deputy Foreign Minister of Ukraine Konstantyn Yelyseev reported at a briefing.  According to him, Joe Biden is planning to have a meeting with President of Ukraine Viktor Yushchenko and Prime Minister Yulia Tymoshenko.

At the same time, Konstantyn Yelyseev did not rule out Joe Biden will hold the meeting with leader of the Party of Regions Viktor Yanukovych and leader of Front of changes Arseniy Yatsenyuk as potential candidates for President. Viktor Yushchenko and Joe Biden are expected to honor the memory of Holodomor victims in Ukraine in 1932-1933.

According to Konstantyn Yelyseev, the visit is an important signal of U.S. authorities about support of Ukraine’s policy to develop integration to Europe and realization of large-scale reforms.

Besides, according to him, Ukraine’s party expects for confirmation of U.S. president’s position that the NATO doors are open for any countries, especially, for Ukraine, if our country carries out certain engagements, UNIAN reports.

Konstantyn Yelyseev hopes the United States of America will confirm the principles of territorial integrity in Ukraine during Biden’s visit. Vice Foreign Minister reported authorities will be discussing how to prepare for the meeting of U.S. president Barack Obama and President of Ukraine Viktor
Yushchenko the nearest time. It may happen this fall. Besides, the visit of the U.S. state secretary to Ukraine will be discussed.

According to Konstantyn Yelyseev, Ukraine and USA would like to intensify and optimize bilateral cooperation. According to him, the issues of bilateral cooperation, improvement of political dialogue, cooperation in the security sphere, issues of trade and economic relations, intensification of energy safety will be discussed.

LINK: http://mignews.com.ua/en/categ342/articles/361491.html
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4.  JOE BIDEN'S CHOICE DURING VISIT TO UKRAINE
Go through the motions or take on the hard issues

Analysis & Commentary: By Yulia Pushko
Government Relations Director, Willard
Kyiv Post, Kyiv, Ukraine, Friday, July 3, 2009

In visiting Kyiv this month, U.S. Vice President Joe Biden can choose to go through the motions, or take on hard issues.

The news that U.S. President Barack Obama will visit Moscow on July 6-8 sent the Ukrainian diaspora into an e-mail frenzy as they attempted to lobby the White House to incorporate a swing through Kyiv as well.

American diplomats felt that a joint Russia-Ukraine mission might offend the testy Dmitry Medvedev and Vladimir Putin, and fought that idea. Then the governments announced that U.S. Vice President Joe Biden would visit Ukraine and Georgia between July 20 and 24. The news release included the usual diplo-babble about meeting with leaders, opposition figures and other pivotal parties. 

Foreign trips by heads of state often tend to be highly orchestrated affairs that leave the principals with little to do but shake hands, smile for the cameras, follow the script and enjoy the wine.

Biden, who is no newcomer to foreign relations, has a choice: Go through the motions or take on the hard issues. We hope that he opts for substance, pushing Ukraine’s leaders for real action and solidly linking progress with U.S. foreign aid and other benefits.      

Issue 1: Cash
Ukraine desperately needs to obtain funds from foreign lenders, starting with the International Monetary Fund, the World Bank and other U.S.-led financial institutions. Kyiv expects to receive the third tranche of its IMF loan later in July, and the IMF has been leaning on recipient nations to get rid of bad banks, keep interest rates high and control consumption by tightening social spending.

Strangely enough, the West seems to be doing just the opposite. Obama has said that the U.S. should lead by example, and Biden could underscore that, urging Ukraine to use the loans to invest in significant social and infrastructure projects as well. This may tread on toes at IMF & Co., but it might be the best direction.

Issue 2: Gazprom at gate 
Ukraine and Russia are in a perpetual tug-of-war over payment for natural gas. It’s a situation destined to arise winter after winter unless a lasting resolution is attained.  Europe seems unwilling to get too deeply involved, as it needs Russia’s gas. Should the U.S. offer to intercede? It seems unlikely that doing so would ameliorate U.S.-Russia relations.

Vice President Biden could help bail Ukraine out with a $4.2 billion loan package. That a huge financial band-aid, and like an unrepentant credit abuser, Kyiv would likely accrue future gas debt. But Biden might link the gas bailout to solid, sustainable reforms in areas like corruption and governance.

Issue 3: Crimea
The planned U.S. diplomatic office in Simferopol has been put on hold. Moving ahead with it would turn up the heat in Ukraine’s uneasy relationship with Russia. Moscow holds a lease on the Black Sea Fleet’s headquarters in Sevastopol until 2017, and is unlikely to walk away from its only naval access.

With some in parliament talking about closing the Russian base early, U.S. diplomats on the ground and a huge number of Crimean residents carrying Russian passports, Crimea is a potential military flashpoint. Biden – who likes to talk – should be urged to practice calm pragmatism with regard to Crimea. Don’t add fuel to embers, inducing a new Cold War on the Crimean peninsula.

Issue 4:  Sideline NATO
Ukraine is deeply divided over plans to join NATO. While the government still supports joining the alliance, only one in five citizens favor it, and the proposal is a perennial campaign hot-button. Joining NATO would be an expense that Ukraine can ill afford, and NATO's further intrusion into what Moscow sees as its rightful sphere of influence would increase tensions. Biden may well wish to give Ukraine’s leaders an honorable exit and advise that the country has other more important fish to fry.

Issue 5: Diplomacy
U.S. Ambassador William B. Taylor has left his post, and a successor has not yet been appointed. Taylor has arguably been one of the best ambassadors Washington has sent, though the Americans have a poor track record when it comes to backing winners in Ukrainian political horse races.

Early in 1999, the U.S. offered support to Leonid Kuchma, who, contrary to incumbent President Leonid Kravchuk, actively supported an open-market economy.

The Kuchma romance died with Georgiy Gongadze and the Kolchuga [radar] scandal [in which Ukraine allegedly violated an international ban on selling advanced military equipment to Saddam Hussen-led Iraq], which deservedly made Kuchma a pariah in the West. In 2004, the West welcomed Victor Yushchenko as a populist democrat, even allowing him to speak to Congress.

While Yushchenko still has admirers in the Ukrainian diaspora, pragmatists are aware of his single-digit ratings and are scanning the horizon for friendly faces. We hope that Biden will counsel his president to sit this election out. Pressing for an ideologically correct leader – unofficially, of course – hasn’t been a foreign policy winner to date.

NOTE: Yulia Pushko is government relations director for Willard, an international advertising and PR consultancy based in Kyiv.  She can be reached at yulia.pushko@TWG.com.ua.

LINK:  http://www.kyivpost.com/opinion/op_ed/44518
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5.  UKRAINE'S FOREIGN MINISTRY EXPLORING POSSIBILITY OF
ARRANGING MEETING BETWEEN YUSHCHENKO AND OBAMA  

Ukrainian News-on-line, Ukrainian News Agency
Kyiv, Ukraine, Wednesday, July 15, 2009

KYIV - The Ministry of Foreign Affairs of Ukraine is exploring the possibility of arranging a meeting of Ukrainian President Viktor Yuschenko and President of the United States of America Barack Obama in autumn, Deputy Foreign Minister Kostiantyn Yeliseev has announced in course of a press club meeting.

In his words, the sides will discuss preparations for the possible meeting during the visit of Vice President of the United States Joseph Biden to Ukraine on July 20-22.  "One of the important elements of the visit will be preparations for the possible meeting of the two presidents in near future, maybe already this autumn," he said.

Yeliseev added, for this very end the parties will discuss ways of strengthening and energising political dialogue at the top level when Biden stays in Ukraine. As Ukrainian News earlier reported, on election of Obama US President Yuschenko pointed to the importance of enhancing co-operation with him and his team.
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6.  THE OBAMA-BIDEN DYNAMIC

Analysis & Commentary: by Jenn Stachowski
Examiner.com, Denver, Colorado, Wed, July 15, 2009

Back when I first heard that Barack Obama had selected Joe Biden as his running mate, I wondered, "How's that dynamic going to work out?" The Joe Biden I knew was a senior senator who liked his Amtrak commutes, his role on the foreign relations committee and his independence.

But then Obama appeared on "Meet the Press" and said, "I'm going to want someone with independence, who's willing to tell me when he thinks or she thinks I'm wrong. We're going to have a lot of problems and a lot of work to do, and I'm not interested in a vice president who I just send off to go to funerals."

After many interviews of putting down the Veep speculation, Biden finally told the world he was ready to serve, especially since Obama made it clear he wants more than just a figurehead for his vice presidency. When Biden was first announced as the VP-elect, they went on this whirlwind "rockstar" tour of America to show that they had the charisma, the passion and the gravitas to lead the nation.

But over time, Biden's independent spirit has done the administration well: while Obama stays in Washington, tending to business, he can send Joe jet-setting and globe-trotting on special missions.

In many ways, Biden has been a loyal pointguard for Obama's agenda. He's traveled to small manufacturing towns to champion the stimulus efforts and call attention to the issue of the moment -- whether it be clean energy, middle class job creation, troop withdrawal in the Middle East or healthcare. He's also been given the enormous task of, not only publicly defending the stimulus bill, but also checking up on governors and enforcing its use.

Whenever necessary, Obama can send the affable Joe to do damage control in places like Ohio, where unemployment has risen past 10% or to speak at the annual LGBT fundraiser to assuage concerns that gays and lesbians have been fired from the military at an alarming rate since Obama took office. Obama also sends Joe Biden around to foreign countries to echo his sentiments.

BIDEN WILL VISIT UKRAINE AND GEORGIA
For instance, next Monday through Thursday, Biden will visit Ukraine and Georgia as a follow-up to Obama's Moscow visit this month. There, Biden will reassure Georgia and Ukraine that their interests matter to us as well, and we're not looking to strengthen ties with Russia at the expense of losing these neighboring allies.

However, there is another Vice President Biden that sometimes emerges. We suddenly see him as an experimental exploratory committee, used to test the waters on a number of issues the administration is silently considering.

For instance, they send Joe out to talk about "a second stimulus"; then when there's a public backlash and everyone's clamoring, "Wait, what? A second stimulus? The first one didn't even work!" -- Obama can step in and say, "No, no, that's not true. We don't know what Joe is saying. He didn't mean that, really."

On the campaign trail, one of Obama's advisors mentioned, "After having a president for 8 years who can't go beyond talking points, it's good that Biden can dig into the issues, even if he occasionally goes overboard."

Perhaps another instance of "going overboard" occurred with Biden's soundbite last week about Iran, where he told George Stephanapoulous that the U.S. would not stand in the way of Israeli military intervention in Iran -- which was widely perceived as an aggressive comment.

Obama then appeared on camera saying that the U.S. had no intention of getting into a military conflict with Iran and that the comment was simply misinterpreted. Yet, this sort of tough talk isn't quickly forgotten.

As Obama paints a picture of "America the Uniter," Biden is in the background reminding foreign nations what happens when you "mess with Sheriff Joe." This duality is a comfortable balance, since a president perceived as too accommodating and too nice may jeopardize national security, as ruthless dictators view kindness as a sort of weakness.

At the same time, we see the dangers of the previous administrations tough-line stance with foreign leaders, withholding talks based on a number of preconditions and hurting the world image of America.

Even though the Washington Post's David Ignatius once called Biden "the incredible shrinking vice president-elect," Joe is proving that he's serving a vital role in the current administration even if no one's really reporting on it. Whether he's reinforcing Obama's key talking points or testing the waters with his outlandish comments, this vice president is no mere placeholder.

LINK: http://www.examiner.com/x-14321-Joe-Biden-Examiner~y2009m7d15-The-ObamaBiden-Dynamic
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7.  ANTICIPATING BIDEN'S VISIT TO GEORGIA

Analysis & Commentary, The Messenger Staff
The Messenger, English language newspaper, Tbilisi, Georgia, Tue, July 14, 2009

In Georgia, the country of hopes and reading between the lines, there are high expectations of US Vice President Joe Biden’s visit.

[1] First of all the visit is considered material proof of US support.

[2] Secondly, it is considered that Biden will bring genuine and first hand information about what was really decided in Moscow and thirdly it is expected that Biden will clarify the US position on the current situation inside the country, meaning the confrontation between the authorities and the opposition and the passions surrounding this.

Here in Georgia we consider Obama’s clear cut statement about rejecting Russian claims to a sphere of influence and his confirmation of Georgia’s sovereignty and territorial integrity should be followed by some concrete steps. Analysts suggest that Biden’s visit to Ukraine and Georgia is the logical continuation of the US President’s visit to Moscow.

Obama’s phrase that “Just as all states should have the right to choose their leaders, states must have the right to borders that are secure and to their own foreign policies,” has become a sacred mantra for Georgian politicians and the general population.

However Georgia’s optimism may be less than well-founded, as some political analysts don’t share it. Not many still believe that some senior US officials will frighten Moscow and force it to give up its aggressive plans. This is a significant observation when we take into consideration that so far we don’t know that any kind of solution to the Georgian problem was taken in Moscow.

BIDEN WILL BRING DETAILED INFORMATION
Joe Biden will bring detailed information, it is believed. Maybe he will give the Georgian leadership extra details of what was discussed and decided in Moscow behind closed doors at a private and confidential level.

Georgians expect that Biden will give some precise details of what the USA will do if the situation gets more complicated. Last year Russia conducted an aggression against Georgia and showed the West that it ignores the rules of international law, a sovereign country’s foreign policy orientation and its formal membership of the CIS.

It generally sticks two fingers up at the existing world order and democratic rules, knowing beforehand that nobody will lift a finger of their own against the Russian bear. In Georgia there is a saying, “the dog barks, but the caravan moves ahead”. Russia is a big player and it has become more confident after the August war.

Only a very naive or biased person can think that the Georgian leadership started the war with Russia. Moscow wanted confrontation, it provoked it and did what it had always intended to do. Moreover, it went further, established puppet states, recognized them and is now building military bastions in the South Caucasus.

What have the West or the USA done? They have condemned Russia’s actions, but in return the Kremlin has blocked the continuation of two very important international observer missions, the OSCE one in South Ossetia and UNOMIG in Abkhazia.

Just after the Russian aggression Moscow was almost excluded from G8 group but pretty soon it recovered and now Westerners are flirting with the Kremlin just as before. So the question arises – is the West able to invent and activate any efficient mechanism which would prevent Russia repeating its aggression, force it to abolish its recognition of the puppet regimes or stop it building different military bases – air, naval, infantry - on occupied Georgian territory?

The immediate answer to this is no. Neither the West nor the USA possess the tools to do this, at least for the time being and in the foreseeable future.
WHAT GUARANTEES CAN THE WEST PROVIDE?
So what guarantees can the West provide Georgia that it will not be attacked again and again and that its breakaway territories will be returned? This is the most important thing Georgians are interested in. Maybe there were some promises made in Moscow by either Medvedev or Putin, but what is a Russian promise worth? Whatever the US will let it be worth, is the hard truth of this matter.

As for Georgia’s internal affairs, pro-opposition analysts want to read clear messages in Obama’s statements. “When Obama states that America supports Georgia’s democracy but not a particular individual, this should be seriously considered in Government circles,” suggests Soso Tsiskarishvili.

He also thinks that the new US administration will abandon the practice of the previous administration, which conducted bilateral politics by maintaining private relationships.

But before doing this the West, and the US in particular, should identify the Georgian political force it has the most confidence in and sees as most reliable. Tsiskarishvili suggests that most probably the Americans understand that supporting something like the Rose Revolution would not be justified, as that revolution has shown.

Most analysts suggest that the US administration is unlikely to make hasty decisions. It will continue to observe how different groups in Georgia would seek to develop democracy, confirm the country’s pro-Western orientation and strengthen its commitment to democratic values, as these are the courses the US has said it wants the country to take. Therefore what Biden sees in Tbilisi may prove to have much more valuable than what he says when he is here.

LINK: http://www.messenger.com.ge/issues/1896_july_14_2009/1896_edit.html