The Guesstimation. Who (and when) will be the next President of Ukraine? And what comes next?

It is my first post here after the first round of presidential election in Ukraine. Obviously, the result was predictable. But nevertheless every Ukrainian needed time to think over in order to understand, what happened. After January, 19, at least one simple thing is clear: there will be no miracle for Ukraine. And no hope for a big change. We’ve got a choice without choice – between two well-known faces.

The results of the first round of Presidential vote in Ukraine demonstrated a confident priority of leader of the opposition Party of Regions, anti-hero of times of the 2004 Orange revolution Viktor Yanukovych, who received a support of 35,32 percent of voters.

The Prime Minister of Ukraine Yulia Tymoshenko has got only 25,05 percent (a gap between two leaders is 10,27 %, which is a big challenge for the PM).

The 7th of February will be a day of a totally hopeless choice for Ukraine. President Viktor Yushchenko had mentioned recently that both candidates are almost equal. Yes, I must confess that there is not much difference between Tymoshenko and Yanukovych. First of all, they’ve got very similar programmes, mostly based on social promises and well-written slogans (it reflects a wider problem of absence of big ideological parties in Ukraine – all the main political forces differ by names of their leaders and oligarchic sponsors). Secondly, they have almost the same origin – East of Ukraine. It is very popular these days to say that Viktor Yanukovych represents Eastern and ‘pro-Russian’ (I don’t agree with that formulation) Donetsk region, and that he has a lot of difficulties with communication in Ukrainian language (though he’s not a good speaker at all). But lot of experts prefer to forget that only a decade ago Yulia Tymoshenko had a nickname “ a gas princess from Dnipropetsovsk”, and that she learned Ukrainian only at the beginnign of 2000th.

The choice between Viktor Yushchenko (who did represent Ukrainian mentality and traditions) and Viktor Yanukovych in 2004 was really a choice between values – Western and Eastern. But the current choice is totally different. It may be said that it is a choice between importers and exporters (as there are more representatives of the biggest export-oriented enterprises are accumulated around Viktor Yanukovych, and Yulia Tymoshenko’s biggest supporters are making their profits on import operations). but it’s not a clear statement at all. I would say, it is just a fight for power between two politicians and their establishments – it is naïve to expect the revolutionary breakthrough from any of them.

Who will win?

Most probably, Yanukovych.

Is it for better, of for worse? I don’t know what to say. No comments for this moment.

Let’s count. (It will be just a ‘guesstimation’ as the percentage strongly depends on the voters’ turnout. Besides, the less turnout we will have in the second round, the better it will be for Mr. Yanukovych, as he proved to have a very stable electorate).

Starting position:
YANUKOVYCH – 35,32 %
TYMOSHENKO – 25,05 %

Both the pretenders are fighting now for votes of supporters of other political heavyweighters.

First of all, it is Sergiy Tigipko who (with a help of a French political technologist Jacques Segela) showed the third result – 13,05 percent. Here I would like to mention that I don’t agree with experts who call Mr. Tigipko a kingmaker. Yes, he may become very and very influential, but only after the parliamentary election. As for now, Mr. Tigipko may hardly influence his electorate to vote for this or that candidate – it’s a specifity of Ukrainian voter, and especially of a well-educated urban voter, than he makes his own decisions, some times unpredictable.

Most of Ukrainians who voted in favor of Tigipko didn’t actually support him as a politician, but were hoping for change and the renovation of Ukrainian politics. On 7th of February a big part of them will stay at home, some will vote against all, and others will divide between Yanukovych and Tymoshenko. I would suppose that at least half of supporters of Tigipko will vote for Yanukovych as they represent Eastern, Central and Southern part of Ukraine.

So, we are adding 6,5% to Yanukovych – subtotal result 41,82 percent. Let’s also give around 4% to Tymoshenko – subtototally 29,05 percent.

Arseniy Yatseniuk with a very unsuccessful advertising campaign, mostly created by Russian team of PR-professionals, has gained only 6,95 percent. Some of his voters will also demonstrate the absenteeism, but the active part will surely vote for Yulia Tymoshenko. Let’s say it will be 5%. (YANUKOVYCH – 41,82 %, TYMOSHENKO – 34,05 %.)

The voters of the President of Ukraine Viktor Yushchenko (5,45 %) are also rather unpredictable. Taking to the account the rough fight between PM and President during last months, we may predict that part of them will not show up at the polling places. But I hope Yulia Tymoshenko may count on additional 4,5 percent. (YANUKOVYCH – 41,82 %, TYMOSHENKO – 38,55 %.)

It is for sure that the electorate of a Communist party leader Petro Symonenko (3,54%) will vote for Yanukovych. At least, 3 percent. (Subtotal result: YANUKOVYCH – 44,82 %, TYMOSHENKO – 38,55 %.)

In favor of Prime Minister may be also around 4 percent of voters, who supported other candidates – like Speaker of the Parliament of Ukraine Volodymyr Lytvyn (total 2,35%), radical right politician Oleh Tyahnybok (1,43%), and ex-Minister of Defense Anatoliy Hrytsenko (1,2%).

So, the forecasting figures look like YANUKOVYCH – 44,82 %, TYMOSHENKO – 42,55 %. (The gap is 2,27 percent).

But taking to the account the probable growth of the level of absenteeism, my own style of the vote-count, very favorable to the Prime Minister, and also the fact that Ms. Tymoshenko represents the acting power, I would predict that in reality the gap may be not 2, but 3-4 percent or even more.

Anyway, both candidates are preparing to challenge the result of election in courts. And here comes the next important question:

Is there any chance to have an inauguration in March?

According to the Law on Election of the President of Ukraine, the official results of second round should be declared not later than 17 February. But the court proceedings (which will be long and difficult in case of 1-2-3-percent gap between candidates, or in case of a high level of ‘against all’ votes) may postpone this date even for a month.

The inauguration shall be held in frames of 30 days after the declaration of official results, and some influential off-going forces may try to postpone this date. The elected President shall take the oath during the special parliamentary sitting, which may also be wrecked.

So, there is a chance that the inauguration of nobody-knows-who will be held in March 2010, but as I am informed the headquarters of both candidates has received the instructions to be ready to work till the summer. Maybe, to prepare for the early parliamentary elections, who knows.

Early parliamentary election: to be or not to be?

Analyzing the current alignment of political forces in Ukraine, I am 99 percent sure there will be no early parliamentary election on 30 of May 2010, despite of all the ‘promises’ of the top-politicians.

(The day of 30 of May is widely discussed as a possible date for early parliamentary vote as is an officially established day for the local elections).

The argumentation is simple: there is no parliamentary party in Ukraine, which would be really very interested in early election in 2010. Though, it is very possible that the early parliamentary poll will take place in 2011, even in January 2011, – about one year before the scheduled time.

Why the current composition of Parliament seems to be very livable? First of all, because two biggest factions wouldn’t run the risk of losing the precious parliamentary seats.

The party of Regions is again in the most confident position. In comparison to the results of last parliamentary election of September 2007, Viktor Yanukovych slightly strengthened the ranks of his supporters – on 1 percent (from 34,37%). But it is not clear, how Ukraine will vote for the ‘Regions’ in half of the year, especially if Yanukovych win the presidential position (Ukrainians are predisposed to give less support to the ruling authorities).

Yulia Tymoshenko, to the contrary, has lost more than 5 percent – in 2007 she had 30,71% of votes. And 5 percent is about 20-27 seats in Parliament (it depends on the quantity of parties, which will overcome a 3% threshold).

All the other political parties, presented in Parliament now, including the members of so-called ruling coalition, have very illusive chances to enter the Parliament after the early vote. The block of Viktor Yushchenko Our Ukraine – People’s Self-Defense has already been falling into pieces, and ex-and-current-pro-presidential MPs are seriously thinking about their political future and risk not to become MPs again in case of the early election. Communist Party understands that it will never win 27 seats in Parliament which they have now. The block of Volodymyr Lytvyn (currently having 20 seats) seems as totally not able to pass the 3% threshold, so, the Speaker would surely form a coalition with a winner of Presidential fight, whoever it will be.

Does a new coalition already exist?

The vote in favor of dismissal of the Interior Minister of Ukraine Yuriy Lutsenko on Thursday, 28 January, has showed that a new coalition (pro-Yanukovych one) already exists in Ukrainian Parliament.

Who voted in favor? Here is the list, ahich may be considered as a draft of a 'new coalition':

The Party of Regions faction – 171 vote (out of 172 members of the faction)

The Block of Yulia Tymoshenko faction – 1 vote (out of 153 members of the faction)

Our Ukraine – People’s Self-Defense faction – 11 votes (out of 71).
I have to add that part of these MPs represent ex-Head of Presidential Secretariat Viktor Baloha. A brother of Viktor Yushchenko Petro and a godmother of President’s child Oksana Bilozir also voted in favor of Minister’s dismissal.

The Communist Party of Ukraine – 27 (out of 27).

The Block of Lytvyn – 19 (out of 20 – as the Speaker decided not to vote).

Independent MPs – 2 (out of 6).

As the proverb says, we shall see how the cat jumps.

Next regular election of the President of Ukraine will be held in October 2009. Or in January 2010. Or in December 2010.

The Prime Minister of Ukraine Yulia Tymoshenko made a very interesting statement yesterday. She said, “it left 9 month until the election of President” in Ukraine. It was not a kind of “slip of the tongue”: Mrs. Tymoshenko repeated the phrase about the nine months a couple of times. So, she will try to schedule the regular Presidential election for late October 2009.

The Head of the Committee on Judicial Policy of the Verkhovna Rada of Ukraine Sergiy Mishchenko said on Friday, 23 January that he has the information from the insiders in Presidential Secretariat that they are trying to agree with the Central Election Commission to hold the presidential vote in December 2010. Besides, Mr. Mishchenko himself is sure that the Presidential election should be held on 17 January 2010, counting this date from the Inauguration day of 23 January 2005.

According to Ukrainian law, the date of the regular election of President has to be scheduled by the resolution of Parliament.

A bit of history:

The first President of Ukraine – Leonid Kravchuk – was elected in one tour on 1 December 2001.

In 1994 the early presidential election was held together with early parliamentary election: first tour took place on 26 June 1994, and the second tour – on 10 July 1994. Leonid Kuchma was a winner of presidential race, Leonid Kravchuk lost.
The third presidential election in Ukraine was held in 1999: first tour was on 31 October 1999 and second tour – on 14 November 1999. The leader of the Communist party Petro Symonenko couldn’t beat President Kuchma, and he saved his post with more than 56% of voters’ support.
The first tour of presidential election 2004 was held on 31 October. Current President Viktor Yushchenko and current opposition leader Viktor Yanukovych met in a second tour on 21 November. The Central Election Commission declared the winner was Viktor Yanukovych. After the mass actions of protest, later called the Orange revolution, the Supreme Court of Ukraine cancelled the results of the 2nd tour on 3 December. The new second tour was held on 26 December. Viktor Yushchenko won with the result of 51.99%.

Parliamentary Control. Starting from today, a special Investigation Commission of MPs will follow the gas negotiations between Ukraine and Russia.

Today the Parliament of Ukraine has founded a Temporary Investigation Parliamentary Commission to follow all the developments of current gas crisis. The Committee is going to examine the actions of Ukrainian officials in the sphere of gas supply and gas transit in 2008, and also will follow the negotiations with Russian Gazprom in 2009. The questions of signing the new gas supply and transit contracts – including financial issues, like gas price – will be under everyday control of the Commission.

222 MPs voted in favour of the Commission’s founding: 174 members of the Party of Regions (total size of faction – 175 MPs), 27 members of Communist party (total size – 27), and 19 members of the Block of the Speaker Lytvyn (total size – 19). The Block of Prime Minister Yulia Tymoshenko (BYT) and all the faction Our Ukraine – People Self-Defence (OU-PSD) didn’t support the idea of establishing the parliamentary control of gas problematic.

The new-elected Head of the Temporary Investigation Commission Inna Bogoslovska (member of the Party of Regions) promised to give the information on its findings to press every three days. “Our task is to speed up the signing of two contracts”, Inna Bogoslovska explained. On 6 February the preliminary report of the Commission will be presented in Parliament. The Commission (according to the size of every faction, it comprises 4 MPs from the Party of Regions, 3 MPs from the BYT, 2 MPs from the OU-PSD, 1 MP from BL and one Communist) is going to work during two months.

“It may well happen that, according to the results of this Commission’s activities, the question on the impeachment of President and the resignation of Government will be raised”, Inna Bogoslovska said. The leader of the Party of Regions Viktor Yanukovych went further today, calling for the immediate Government resignation. The Communist party on its turn proposed to start the impeachment procedure as soon as possible.

P.S. I’m not going to comment a lot the today’s “blockade” of Russian gas transit to Europe as I still think that this “problem” is staged by some forces from Russia AND Ukraine. I would only add one point concerning the gas interests of Russia. It is important to pay attention to one interesting figure the Prime Minister of Russia Vladimir Putin mentioned during his meeting with foreign journalists last week. He told that Russia might pay for the Middle Asian gas “on average $375 per tcm” in 2009. As the European gas prices (in most of the EU countries) are linked to the oil prices, and the oil prices are still falling despite of all the Russian efforts and the statements of the OPEC countries, it is reasonable for Moscow just to win time for extra negotiations, in particular, with the successor of Turkmenbashi. But I have to say that Russia will have to re-start gas export to Europe in a very short time – there are simply not enough of gas storage facilities on the Russian territory. In a while Moscow will face only two choices: to transit the gas to Europe or to burn it (or to close some gas wells), losing money Gazprom needs too much today.

Expected gift – II. The Verkhovna Rada of Ukraine didn’t approve the budget 2009 again.

The Parliament of Ukraine voted against a budget 2009 three times this morning. MPs failed to approve the document as a whole, and then in the first reading. Parliament considered also a proposition to come back to the budget discussion today, but the majority voted against that. The problem is that the Party of Regions, the Communist party and pro-president part of the Our Ukraine – People’s Self-Defence Block (MP’s Group “For Ukraine” founded by ex-Head of the faction Vyacheslav Kyrylenko) don’t support the budget project as it is today.

MP’s have decided to hold sittings on Tuesday, 30 December and Wednesday, 31 December. But a lot of people predict that Ukraine will start the New Year without a budget. Parliament will probably approve the document in January.

Expected Gift. The Parliament of Ukraine made a Christmas present to Yulia Tymoshenko, sending the project of budget back to her office.

Verkhovna Rada failed to pass the 2009 budget on Thursday, December 25. Most of the Members of Parliament decided that the project of budget is not realistic, in particular, because of its extra-optimistic economic forecasts. The budget, presented by the Prime Minister of Ukraine Yulia Tymoshenko on Tuesday, 23 December, supposes that the inflation will stay in frames of 9,5%, hryvnia rate to US dollar will be not more than 7-7,5, and the GDP will grow to 0,4%.

The result of the vote has demonstrated the absence of the real coalition of majority in Ukrainian Parliament. The budget was supported by all MPs of the Block of Yulia Tymoshenko and the Block of Lytvyn, and also by 44 MPs from the ex-president’s faction Our Ukraine – People’s Self-Defense. But the faction of the Communist party (who is not a Coalition member) was not in favor, and the vote failed.

Parliament will hold the sitting today, on Friday 26 December (starting at 10 AM), and will come back to the budget question – and will face problems again. Even non-economist may see that there are problems with a revenue side of the budget, and with the macroeconomic forecast (as was said). Also as Ukraine still hasn’t signed an agreement with Russia on gas supply, and nobody knows the price of gas for 2009, all the economic planning that was made is very approximate.

Some sources in Verkhovna Rada suppose that the budget 2009 will not be adopted before the New Year.