You're reading: Unconvincing Azarov talks up achievements, dismisses ‘stereotypes’

YALTA, Ukraine -- To hear Prime Minister Mykola Azarov describe it, Ukraine's biggest problems are high prices for Russian natural gas imports and inaccurate stereotypes about the nation in the world.

In his
usual combative style, Azarov said high corruption in Ukraine is more of a
stereotype than a real problem. He also said that some issues causing
international concern, such as rollbacks involving freedom of speech, are
overblown. He also said solutions offered to Ukraine by the international
community, are also too stereotypical.

“We managed
to crawl out [of the economic crisis] because we broke stereotypes and went our
own way,” he said at the Yalta European Strategy forum in Crimea on Sept. 15.

Azarov told
a distinguished audience of international experts, diplomats and businessmen
that Ukraine is taking its own path and finding its own solutions in reforming
its economy — and its working. He said Ukraine managed to crawl out of the
2008 economic crisis because it did not take advice to tighten the belt and
stop spending, but instead raised wages, went ahead with vast spending for
infrastructure and other upgrades ahead of the Euro 2012 football championship,
and was better off for it.

“Now we’re
being attacked by the second wave of the crisis,” he said. “We need to find the
technological breakthroughs that would allow us to ride [it] out.”

Coincidentally,
technology was a key issue of debate at the forum the previous day, with some
of the world’s leading minds taking part on the discussion on the role of
technology in the modern economy.

But there
was only one Ukrainian official in the audience taking notes, Sergiy Tigipko. The
deputy prime minister later explained that he understands Ukraine’s great need
for innovation, and is trying to learn from the world about it.

Azarov, on
the other hand, talked up his government’s achievements. He said Euro 2012 was
a success despite predictions of skeptics, agriculture is feeling the benefits
of the government’s attention, and the tax reform is proving to be a success.

The business
community disagreed.

“I was not
impressed,” said Anna Derevyanko, head of the European Business Association in
Ukraine. She said there are plenty of facts that would prove Azarov wrong.

Azarov also
talked about what he described as “stereotypes” about Ukraine. Extreme
corruption, he said, is one of those.

The issue
was raised by Anders Aslund, a prominent Swedish economist, who said his
studies are showing no improvements in the past 2.5 years. In 2011, Transparency
International Corruption Perceptions Index slipped to the 152nd place out of 183
countries in the study.

“To say I
am satisfied with the current situation in Ukraine would not be true.
Corruption reduces effectiveness of taking decisions and fulfilling decisions,”
Azarov said. Yet he insisted that the problem is not as bad “as the opposition
is trying to portray it.”

Azarov accused
Ukraine’s political opposition of exaggerating how much could have been stolen
through inflated contracts during Euro 2012 infrastructure upgrades and stadium
construction.

He did not
take any questions from journalists about the election campaign of his son
Oleksiy Azarov, who is running for parliament in a majority constituency in
eastern Ukraine. Despite spending years behind the scenes, Azarov’s camera shy
son is suddenly in the media spotlight
. Analysts claim that his candidacy,
backed strongly by top officials, is the latest sign of nepotism running high
in government circles.

Azarov said
problems with freedom of speech are also way overblown. “I overheard that there
was a discussion on freedom of press in Ukraine,” he said to the smiles of many
journalists in the audience.

He said
that in the current election campaign is being conducted on anti-government and
populist slogans. None of the political forces in the ballot are in alliance
with the government, and that’s a sign of freedom of speech.

Azarov said
that Ukraine’s biggest headache is Russia’s gas price. Currently, Ukraine pays
$440 per 1,000 cubic meters. He said it gives him “cold rage” to think about
how much money is being wasted on these payments that could be invested
otherwise.

Unexpectedly,
former President Leonid Kuchma jumped into an argument with the prime minister.
Kuchma suggested that both the president and prime minister should stop “going
back to Russia begging” and see the positive of the high gas prices.

“The high
gas prices have been a colossal push for the business. It has forced the
business not to eat cheap gas, but think about gas saving technologies,” Kuchma
said.

 Azarov disagreed.

“What
really hurts is that he takes any advice as criticism,” said Derevyanko.

Kyiv Post editor Katya Gorchinskaya can be reached at [email protected].