Ukraine's parliament last week confirmed Yuriy Yekhanurov as the country's new prime minister by an overwhelming majority. Mr Yekhanurov replaces Yulia Tymoshenko, the colourful heroine of the Orange Revolution. The move closed a chapter in Ukraine's history but the accomplishments of that "revolution" remain palpable. Ukraine has become a real democracy with free and lively media, and its foreign policy has become western-oriented.

For the past eight months, however, Ukraine's economic policy has been nothing short of disastrous. Economic growth has plummeted from an annual 12 per cent last year to 2.8 per cent so far this year, driven by a fall in ­investment.