'Drunk' Claims Upset Ukraine Parliament Budget Hearing

KIEV, Ukraine -- A parliamentary hearing on Ukraine's budget was suspended for several hours on Tuesday after opposition deputies alleged that a deputy finance minister presenting the budget report was drunk.

Anatoly Myarkovsky (C), first deputy finance minister, delivers a speech while opposition deputies react next to speaker's rostrum during a session of the parliament in Kiev June 18, 2013.
Anatoly Myarkovsky, first deputy finance minister, spoke for 10 minutes on the government's budget performance in 2012.

But when questions were invited, deputies from Ukraine's rowdy opposition called out "He's drunk".

One shouted: "Anyone within five meters can tell he reeks like someone who has been drinking vodka. Mr. Speaker, go and sniff for yourself."

Speaker Volodymyr Rybak declined, saying it was not for him to check on the behavior of officials or deputies.

But he suspended the budget hearing to allow time to clarify whether Myarkovsky had been under the influence of alcohol or not.

Myarkovsky himself left the chamber as Rybak was speaking.

There was no formal word from his office.

When proceedings resumed several hours later, Finance Minister Yuri Kolobov told deputies that Myarkovsky was receiving hospital treatment.

"He is undergoing a medical examination. He will inform you himself later about his condition," Kolobov said.

A deputy from the ruling Regions party, Volodymyr Makeyenko, leapt to Myarkovsky's defence.

"There wasn't any smell of alcohol coming from the deputy minister. I have known him for 20 years and he's a responsible person. These allegations are just an attempt by the opposition to undermine (parliamentary) proceedings," he told reporters.

Ukraine's parliament, where the Regions party holds a small majority against a boisterous opposition which is seeking the release of ex-prime minister Yulia Tymoshenko from jail, is often a theatre for tussles and fist-fights among deputies.

Source: Yahoo News

As More Countries Scramble To Fill Revenue Holes, Ukraine Plans To Triple Beer Tax

KIEV, Ukraine -- Hold on to your Carlsberg - it’s about to get a lot more expensive to drink a pint in the Ukraine.

As More Countries Scramble To Fill Revenue Holes, Ukraine Plans To Triple Beer Tax.
Ukraine, which is the largest country wholly in Europe, borders Russia and Poland.

At the turn of the 19th century, the country was poor and largely ignored by its bordering countries.

Conflicts within Europe following World War I consumed Ukraine and it was eventually swallowed up by the Soviet Union.

Ukraine remained a part of the Soviet Union for nearly 80 years; it won independence after the Soviet Union dissolved in 2001.

Unfortunately, Ukraine didn’t see an immediate economic benefit after the dissolution.

The country, which had held the distinction of the second largest economy in the Soviet Union, fell into a nearly decade-long recession.

After a short period of growth, the economy slowed in the second half of 2012 landing the country in another recession.

One sector of the economy that has managed to stay afloat is the beer industry: proceeds from beer sales of Ukrainian producers are about 5 times bigger than their Russian counterparts who turned out 3.3 times more products.

Internally, sales and imports are up, appealing statistics for beer producers.

The combination of imports, exports and increased sales also makes appealing statistics for tax purposes: in an effort to boost revenues, Ukraine plans to almost triple the excise tax on beer.

Ukraine, which is seeking a bailout from the International Monetary Fund (IMF) needs to demonstrate that it can increase revenues: increasing the tax on beer appears to their answer.

Today, the leading breweries in Ukraine include Carlsberg A/S (which now markets the centuries old regional brew, Lvivske), Obolon CJSC and Anheuser-Busch InBev (which does market local brews Chernihivske and Rohan, in addition to what you’d expect).

If you’re not familiar with Ukrainian beers, the most popular styles of beer in the country tend to be similar to Czech beers. Breweries and beer marketers clearly oppose the planned hike which will initially boost tax to 2.43 hryvnia ($.30 US) per liter; according to UkrPivo, that will boost the price of each bottle of beer by 3 hryvnia ($.37 US).

The number could grow even higher depending on the initial reaction to the tax.

Revenues from the tax are expected to hit 4 billion hryvnia ($494 million US).

Beer has traditionally not been taxed heavily in the country. It’s treated not so much like an alcoholic drink but like a soft drink.

They’re cheap to buy and can be purchased at kiosks.

Even more surprising?

While you have to be 18 to grab a vodka in Ukraine, there is no minimum age to buy beer.

Anti-drinking forces in the country believe that the lax laws and low taxes are contributing to alcoholism inside the country.

Tax increases could, they believe, slow that trend.

The worry is, of course, that the tax increase may cause the beer market to shrink.

Analysts have suggested the decrease could be as much as 10% to 25% which would result in an overall decline in taxes received.

That’s a real worry, of course.

Excise taxes, like those on alcohol, are sometimes referred to as luxury taxes or sin taxes, since the taxes are often on products that taxpayers don’t “need” in the conventional sense.

The choice to boost those taxes results in a dilemma.

In theory, the higher the tax, the less likely the taxpayer is to engage in the behavior.

But if the tax “works” – that is, the behavior that it’s intended to tax actually slows or is eliminated – the revenue stream potentially disappears.

Source: Forbes

Ukraine Needs $16.3 Bln USD For Army Reform: Official

KIEV, Ukraine -- Ukraine needs about $16.3 billion U.S. dollars over the next 5 years to restructure its armed forces, senior defense official said here Monday.

Ukrainian army troops, on parade.
"We need funding for the formation of a more compact, professional, mobile, well-trained army, which would correspond to the European standards," Director of the Finance Department of the Defense Ministry Ivan Marko told a press briefing.

Under the reform blueprint, Ukrainian government plans to replace outdated weapons and military equipment, increase budget for combat trainings and peacekeeping operations and shrink the size of the troops.

Defense officials also mull slashing the number of officers and military contractors to 70,000 from the current 192,000 by 2017.

Source: Xinhua

Ukraine's Tymoshenko 'In Worsening Pain': Daughter

KHARKIV, Ukraine -- Ukrainian opposition leader Yulia Tymoshenko's daughter Yevgenia on Monday warned that her mother's health is worsening, after a rare visit to her hospital bedside.

Ukraine's Tymoshenko 'in worsening pain': daughter.
"On Friday she got worse during a therapy session... and now she feels very sharp pain with almost any movement despite taking a strong painkiller," Yevgenia Tymoshenko told reporters in the eastern Ukrainian city of Kharkiv where Tymoshenko is serving her sentence.

Tymoshenko was jailed for seven years in 2011 on charges of overstepping her authority while prime minister by agreeing a gas deal with Russia, but has spent over a year in a hospital where she is being treated for back pain.

The opposition leader has dismissed the charges against her as politically motivated and orchestrated by Ukrainian President Viktor Yanukovych -- a long-time rival who won against her in the heated presidential polls in 2010.

"Her condition is very serious," said Yevgenia Tymoshenko, adding that her mother cannot walk without assistance and is only able to sit down for short periods of time. 

In April the European Court of Human Rights ruled that detention of Tymoshenko was unlawful but threw out accusations of ill-treatment.

Her jailing has been condemned by Western governments as the result of selective persecution by the authorities and has led to a sharp deterioration in ties with the European Union, which Kiev wants to join.

Source: AFP

Batkivshchyna Merges With Smaller Parties

KIEV, Ukraine -- Seeking to expand its influence ahead of the March 2015 presidential election, Ukraine’s largest opposition party, Batkivshchyna, on Saturday merged with several smaller opposition groups.

Arseniy Yatseniuk
The merger with the Front for Changes and other smaller parties is seen as an attempt to boost positions of Arseniy Yatseniuk, who now will be the de-facto leader of the merged entity.

Yatseniuk’s Front for Changes will be liquidated.

He has recently come under pressure after several of his once loyal lawmakers have suddenly decided to join groups supporting President Viktor Yanukovych. 

Yatseniuk is now expected to strengthen his role at Batkivshchyna in hopes to challenge Yanukovych in the elections in March 2015.

“Today we become a party that in 2015 will assume responsibility for the life of our nation and will confidently take responsibility for the life of our nation and justify the confidence of the people,” jailed former Prime Minister Yulia Tymoshenko, the founder and the leader of Batkivshchyna, said in a letter to the party.

Tymoshenko, who was jailed in October 2011 to seven years in prison, warned the battle for the presidency will not be easy.

She said the party needs to consolidate to prepare for violent events.

“You do understand that in 2015 the ruling party will hold a battle without any rules or morals,” Tymoshenko said.

“More precisely, it won’t be a fight, but a violent political massacre. They are preparing for it for the past three years.”

Yatseniuk, in a speech at the party convention at a downtown square in Kiev, said the merger will be a “recipe for victory in the presidential election."

He said united Batkivshchyna party will be prepared to take to the streets to protect election results if the government resorts to fraud.

"Viktor Yanukovych will lose the presidential election, but he will try not go out of power," Yatseniuk said.

“That’s why only in unity with the people of Ukraine we need to protect people's choice - and a new Ukrainian president, the new Ukrainian way.

He also vowed to press the authorities for the release of Tymoshenko from prison. 

"Our faith is the best recipe and most powerful force that can change the country and to dismiss Yulia Tymoshenko,” Yatseniuk said.

The developments come ahead of a meeting between opposition leaders and Yanukovych to ease political crisis that had suspended the work of Parliament. 

Yatseniuk said earlier that the best time for the meeting will be Monday, June 17, and that the release of Tymoshenko must be among the issues to be discussed.

The crisis postponed indefinitely debate and approval of legislation that has been suggested by the government, and Yanukovych said continued delay would hurt Ukraine’s economic growth.

The delay postpones Parliament’s 2014 budget resolution that must outline main parameters for the next year’s budget.

The resolution is needed for the government to start drafting the 2014 budget before it is submitted to Parliament by September 15.

The delay also derailed the government’s plans for amending 2013 budget towards increasing spending, seen as a key step for the government ahead of next presidential election due in March 2015.

Yanukovych, who will most likely seek reelection, recently told the government to make sure the 2013 budget is amended and spending is increased.

Source: Ukrainian Journal