Ex-head of Ukraine’s central bank tells what’s behind Russia’s smiling face

“For all the smiles, one should not forget that in the almost 30 years of Ukraine independence its major economic challenges came from our eastern neighbor. We have been constantly tested for strength and our weak points,” Halchynsky said.

“I do not want to rake up about our past relationships and attract attention to how Russia grabbed the savings of Ukrainians, divided FSU assets and gold reserves, or how Ukrainians were taken for a ride when they quit the ruble zone, or how Russia blocked our high-technology projects, notably the AN-70 plane construction, and many more similar examples.

There is no statute of limitations as far as these issues are concerned, and the Ukrainian authorities, regardless of their personal likes or dislikes for Russia, must not quash them because they have no mandate to do so, the former Central bank official says.

A. Halchynsky also reminded about the latest facts like Russia’s by-pass pipelines and the gas contract signed by Yulia Tymoshenko. Projects, including the Southern Stream which by-passes Ukraine, Halchynsky says, were initiated by Vladimir Putin during Leonid Kuchma’s presidency. They amount to more than defending the national interests of Russia. They are aimed at bringing rivals to heel, Halchynsky charged.

The notorious gas contract signed by Yulia Tymoshenko at the climax of the Russian blackmail in 2007 tellingly reflected that Russia doesn’t want a strong Ukrainian president and a strong Ukraine, the expert continued.

“True friends do not behave like this. Incidentally, the gas contract has not been cancelled, and a $100 discount is a very flimsy pay for the continued stationing of Russia’s Black Sea fleet in Sevastopol,” Halchynsky said.

“I do not urge the Ukrainian authorities to engage in similar tactics. We have a different mentality and vision of the future. However, the lessons must be learned. In short, and it is very important, developing links with Russia we must keep her at arm’s length,” Anatoly Halchynsky summed up.

As regards the economic cooperation with Russia, the optimum pattern is direct bi-lateral links, Prof. Halchynsky stressed. “To have direct links no free trade zones with Russia, no customs unions or similar multi-state structures are needed. I proposed this concept many years ago and have been its advocate since then, including the time when I was advisor to the president,” Halchynsky said.