Andreas Umland: Averting a Post-Orange Disaster: Constitutional Reforms and Political Stability in Ukraine
[Andreas Umland is the general editor of the book series Soviet and Post-Soviet Politics and Society and a co-editor of the German-Russian journal Forum for the Ideas and History of Contemporary Eastern Europe. He also administers the website Russian Nationalism, which contains extensive information on recent trends in Russian radical right-wing thought and politics.]
After several years of impressive economic growth and encouraging political change, Ukraine has recently entered troubled waters. The democracies west of Ukraine are institutionally consolidated and internationally embedded enough to circumscribe the political repercussions of their so far relatively mild economic contractions. While being hit almost as hard as Ukraine by the world financial crisis, Russia has managed to build considerable financial reserves thanks to the enormous cash inflow into her state budget during the years of rocketing energy prices, allowing her to soften the social repercussions of the economic downturn.
Ukraine, in contrast, has neither a consolidated political system nor significant financial reserves. During the first quarter of 2009, the Ukrainian economy seems to have contracted between 20-23 percent, and its industrial production might have fallen as much as 30 percent. Given the limited capacities of the Ukrainian government to deal with the social aftermath of these developments, the effects of the crisis on Ukrainian domestic politics and foreign relations are unpredictable. To be sure, Ukrainians have shown considerable maturity in earlier periods of political crisis, such as during the country's last contested presidential elections. It is often ignored, however, that 2004 was not only the moment of the Orange Revolution, but also a year of steep economic growth of almost 10 percent. In contrast, Ukraine's economy today is experiencing a depression that rivals the 1992-1994 plunge in industrial production.
As if this were not challenging enough, Ukraine is facing an increasingly assertive Russia on which it is economically dependent. Until recently, Ukraine's energy reliance on its Eastern neighbour was partly neutralized by Russia's heavy dependence on the Ukrainian gas pipeline system which delivers Russian gas to the European Union (EU) and on the Kremlin's stated interest in preserving the Sevastopol naval base for Russia's Black Sea fleet. Neither of these two balancing mechanisms is fully functional today. Out of parochial interests, the EU has been pressuring Ukraine to "internationalize" energy transportation. While understandable from a Central and West European view, “internationalization” is weakening Ukrainian control of perhaps the most important instrument of securing Ukrainian independence from Russia. Out of his familiar political myopia, President Viktor Yushchenko has prematurely declared that Ukraine, in any case, intends to close
Sevastopol for the Russian fleet when the current contract for the lease of the Crimean port expires in 2017. Whereas earlier, the Russian and Ukrainian governments had something to negotiate about, Kiev’s diplomatic leverage has diminished today. The Kremlin, aware of Ukraine's new weakness, on a daily basis, threatens via mass media to cut gas deliveries if Ukraine does not pay in time for them.
Moreover, in 2008, the Moscow leadership demonstrated in Georgia – not the least to Kiev - that it is prepared to use military force to defend vital interests in Russia's "near abroad." Many Russian politicians have let it be known, in public, that the Crimea’s majority Russian ethnic makeup places the peninsula within Moscow's natural sphere of influence. Some even see Crimea as a part of Russia's historic territory.
Worse, Ukraine's political system prescribes new presidential elections in January 2010, when a new standoff between Ukraine and Russia concerning gas deliveries and payments is likely to occur....
Read entire article at Harvard International Review
After several years of impressive economic growth and encouraging political change, Ukraine has recently entered troubled waters. The democracies west of Ukraine are institutionally consolidated and internationally embedded enough to circumscribe the political repercussions of their so far relatively mild economic contractions. While being hit almost as hard as Ukraine by the world financial crisis, Russia has managed to build considerable financial reserves thanks to the enormous cash inflow into her state budget during the years of rocketing energy prices, allowing her to soften the social repercussions of the economic downturn.
Ukraine, in contrast, has neither a consolidated political system nor significant financial reserves. During the first quarter of 2009, the Ukrainian economy seems to have contracted between 20-23 percent, and its industrial production might have fallen as much as 30 percent. Given the limited capacities of the Ukrainian government to deal with the social aftermath of these developments, the effects of the crisis on Ukrainian domestic politics and foreign relations are unpredictable. To be sure, Ukrainians have shown considerable maturity in earlier periods of political crisis, such as during the country's last contested presidential elections. It is often ignored, however, that 2004 was not only the moment of the Orange Revolution, but also a year of steep economic growth of almost 10 percent. In contrast, Ukraine's economy today is experiencing a depression that rivals the 1992-1994 plunge in industrial production.
As if this were not challenging enough, Ukraine is facing an increasingly assertive Russia on which it is economically dependent. Until recently, Ukraine's energy reliance on its Eastern neighbour was partly neutralized by Russia's heavy dependence on the Ukrainian gas pipeline system which delivers Russian gas to the European Union (EU) and on the Kremlin's stated interest in preserving the Sevastopol naval base for Russia's Black Sea fleet. Neither of these two balancing mechanisms is fully functional today. Out of parochial interests, the EU has been pressuring Ukraine to "internationalize" energy transportation. While understandable from a Central and West European view, “internationalization” is weakening Ukrainian control of perhaps the most important instrument of securing Ukrainian independence from Russia. Out of his familiar political myopia, President Viktor Yushchenko has prematurely declared that Ukraine, in any case, intends to close
Sevastopol for the Russian fleet when the current contract for the lease of the Crimean port expires in 2017. Whereas earlier, the Russian and Ukrainian governments had something to negotiate about, Kiev’s diplomatic leverage has diminished today. The Kremlin, aware of Ukraine's new weakness, on a daily basis, threatens via mass media to cut gas deliveries if Ukraine does not pay in time for them.
Moreover, in 2008, the Moscow leadership demonstrated in Georgia – not the least to Kiev - that it is prepared to use military force to defend vital interests in Russia's "near abroad." Many Russian politicians have let it be known, in public, that the Crimea’s majority Russian ethnic makeup places the peninsula within Moscow's natural sphere of influence. Some even see Crimea as a part of Russia's historic territory.
Worse, Ukraine's political system prescribes new presidential elections in January 2010, when a new standoff between Ukraine and Russia concerning gas deliveries and payments is likely to occur....