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Economy / Ukraine

Rising Tensions

February 2007 | Risk Summary

Ukraine's intra-executive power struggle continues, with President Viktor Yushchenko in early February challenging in the Constitutional Court a government-backed law that further limits his powers, including the right to nominate the foreign and defence ministers. Yushchenko's increasingly lame-duck presidency, and the recent resignation of foreign minister Borys Tarasyuk after months of government pressure, spell more bad news for his floundering NATO and EU membership bids. However, this need not necessarily prevent progress in forging closer economic ties with the EU, which in January gave the go-ahead to talks on a new cooperation agreement with Ukraine that could include a free

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