European Union suspends aid to Ukraine over procurement law

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Feb. 23, 2011, 9:37 p.m. | Ukraine — by Reuters


The European Union will hold up about 100 million euros in aid allocated for Ukraine until the former Soviet republic amends its law governing purchases of goods and services by the state, an EU diplomat said on Wednesday, February 23. The suspension concerns budget support programmes under which funds are managed by the Ukrainian side, Jose Manuel Pinto Teixeira, head of the EU delegation to Ukraine, told reporters.

"All the programmes of this type will be interrupted until we have guarantees that public procurement is done in a transparent and accountable way," Teixeira said.

Only one disbursement of about 30 million euros has been suspended so far, he said. For the whole of 2011, Ukraine's cash-strapped government was due to receive about 100 million euros in budget support.

Ukraine adopted a new law on public procurement -- purchases by government bodies and state-run companies -- last June in what the government said was a demonstration of its commitment to reforms.

Teixeira said the law was initially compliant with EU standards. But several amendments introduced in the second half of 2010 have limited its scope by introducing a number of exceptions to normal procurement procedures.

Public procurement is often used by corrupt officials across the former Soviet Union to extract personal gains by rigging tenders in favour of affiliated suppliers, making purchases at inflated prices and receiving kickbacks from businesses.

Ukraine is no exception and the country's public procurement system, according to the latest periodical investment report by the U.S. State Department, has been plagued by corruption for years.

But Teixeira said he hoped the government and the parliament would soon improve the procurement law. The EU continues to support Ukraine through programmes where funds are managed by other entities such as the European Bank for Reconstruction and Development. "It is not an exceptional situation for us," he said. "I am convinced we are going to resolve this issue."
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Anonymous Feb. 23, 2011, 9:48 p.m.    

What ?!!! How dare they! How is a dishonest crook like me supposed to pocket the extra money I need to bribe, bulley, and carry on BIZNIZ as usual???

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Anonymous Feb. 24, 2011, 12:13 a.m.    

Thats what happens when a former Soviet republic

reverts to being a current Soviet republic.

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Anonymous Feb. 24, 2011, 6:02 a.m.    

Euros 100 Million? to Ukraine?

I wonder how many EU citizen KNOW that the EU is giving money to Ukraine?

Plus the big question WHY ARE WE DOING THIS?

Complete waste of money

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Anonymous Feb. 24, 2011, 8:06 a.m.    

You don't think they read the KYIV POST?

No one want's to be the buffer with Russia. Let Ukraine do it.

When the poor playgirl cousin grows up the EU will have...

Fresh bread, sugar and a work force that can read directions.

When the US lets out the secret, how to get fuel from coal;

Old King Coal is a merry old soul... he called for his fiddlers three...

Kyiv, Lviv and Donets'k tourist destination for the Ukrainian diaspora.

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Anonymous Feb. 24, 2011, 6:06 a.m.    

Now if the IMF had a shred of respect, they would do the same thing, and suspend money going to Ukraine, until Yanuk and his soviet goons, start respecting the constitution, and restore media freedoms. Restore the rights of citizens to protest.......

Because if Yanukalin thinks he is a Mubarak or Kahahfi,,,,,,then his days are numbered ......

People will not continue with his repression and corruption......

The people will revolt.......the time is now......



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Anonymous Feb. 24, 2011, 9:19 p.m.    


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Anonymous Feb. 24, 2011, 8:27 a.m.    

The EU Has grown some &quot;Balls&quot; at last! They have always known how business was done in Ukraine. You open a business in the name of your son, daughter or friend and then buy goods at 1,000% mark up on paper and then split the difference in a bank account in Cypress between 4-5 shell companies who go bankrupt so no one can discover them.

I wonder why the EU does not want to donate any more tax money to millionaire politicians? Ukraine is a lesson in the reality that you can not &quot;Buy Democracy&quot;

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Anonymous Feb. 24, 2011, 8:30 a.m.    

Taking out all competition for public contracts is now called &quot;Reform&quot;?

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