Yushchenko Says Honeymoon Over For Customs Service

KIEV, Ukraine -- Ukrainian president Viktor Yushchenko has demanded that the customs service carry out a fundamental purge of its staff in the next two months -- and wants the results of an inspection of 50 customs-houses on his desk in a month's time.

Yushchenko made his announcement in Kiev while presenting the new head of the State Customs Service, Vladimir Skomarovsky.

"We need new staff here. I'm allowing another 60 days, and I want a report back that this problem in the customs service has been solved: that worthy people capable of carrying out these duties have been appointed. Those found unworthy should either go to prison, or, if they don't deserve that, then to other jobs", said Yushchenko. "A fundamental purge of the service -- that is my demand. I won't agree to half-measures", he stressed.

The president said that in today's customs service everything had been "betrayed", and that the people within the service who ought to have been representing the interests of the state had not been carrying out their duties.

"Our customs service is riddled with holes", Yushchenko stated, accusing the leadership of the service of replacing the interests of the state with their families' and their personal interests. "You have failed the test of professionalism and good conduct", the president said.

The president also touched on the lack of professional customs policy at state-level. Addressing the customs officers present, he said that they were anathema in many Ukrainian businesses; the customs service's policies were putting Ukraine's domestic producers under threat.

In this context the president stressed that customs tariffs often exceed 100% of the price of the goods themselves. "If people are interested in this sort of trade, what are they supposed to do? Resort to bribery... That's why all the crooks are queuing up to see you", said Yushchenko, stressing that for identical goods tariff rates at different customs houses vary by as much as five times.

Yushchenko also highlighted another problem in the artificial lowering of customs tariffs for particular goods -- sometimes by as much as ten times. In particular this applied to illegal VAT compensation.

The president gave examples of computer equipment being falsely documented as bars of aluminium, of footwear declared at a value of $2/pair, when the true value was at least $20, and of completed television sets being passed off as television tubes.

"Last year 1,400,000 television tubes were imported, but the officially declared production of televisions only came to 400,000 sets. I ask you, what has happened to the other million tubes?" Yushchenko demanded of the customs service leadership. He also underlined that the first to answer for misdeeds would be those "with many stripes on their epaulets".

"Your honeymoon is over", Yushchenko said, stating that only professionals would be allowed to remain in the customs service. "In 30 days I want personal reports on my desk from 50 customs houses", the president said, noting that various agencies would take part in the inspection, including the State Security Service, the Ministry of Internal Affairs, and the Prosecutor-General's Office.

Admissibility Decision Gongadze v. Ukraine

STRASBOURG, France -- The European Court of Human Rights has declared admissible the application lodged in the case of Gongadze v. Ukraine. The decision is available today on the Court’s Internet site (www.echr.coe.int). Judgment will be delivered at a later date. (The decision is available only in English.)

The applicant

The applicant, Myroslava Gongadze, is a Ukrainian national, who was born in 1972 and currently lives in Arlington in the United States of America.

Summary of the facts

Georgiy Gongadze, the applicant’s husband, was a political journalist and editor-in-chief of the “Ukrainskaya Pravda” internet journal. He was known for his criticism of those in power and for his active involvement in Ukraine and abroad in raising awareness about the lack of freedom of speech in his country. He reported on, for example, corruption among high level State officials.

Mr Gongadze disappeared on 16 September 2000 under circumstances that have not yet been established by the Ukrainian authorities despite the numerous demands and requests of the applicant.

For months prior to his disappearance Mr Gongadze had complained to his relatives and colleagues that he was being subjected to threats and surveillance.

On 17 September 2000 the applicant petitioned Moskovskiy District Police Department of Kyiv about the disappearance of her husband.

On 2 November 2000 the decapitated body of an unknown person was discovered in the vicinity of the town of Tarashcha, in the Kyiv Region. Forensic tests later established that the body was that of Mr Gongadze.

The case is still pending.

Complaints

The applicant complains under Article 2 (right to life) of the European Convention on Human Rights that the death of her husband was the result of a forced disappearance and that the State authorities failed to protect his life. She further complained, under Article 2 that the State failed to investigate the case in a coherent and effective manner. She maintains that the atmosphere of fear and uncertainty, as well as the incomplete and contradictory information provided during the investigation, forced her to leave the country and caused her suffering, contrary to Article 3 (prohibition of inhuman and degrading treatment) of the Convention. She also relies on Article 13 (right to an effective remedy).

Procedure

The application was lodged with the European Court of Human Rights on 16 September 2002.

Decision of the Court

The Court considered, in the light of the parties’ submissions, that the complaints raised serious issues of fact and law under the Convention, the determination of which requires an examination of the merits. It therefore declared the application admissible, without prejudging the merits of the case.

The European Court of Human Rights was set up in Strasbourg by the Council of Europe Member States in 1959 to deal with alleged violations of the 1950 European Convention on Human Rights. Since 1 November 1998 it has sat as a full-time Court composed of an equal number of judges to that of the States party to the Convention. The Court examines the admissibility and merits of applications submitted to it. It sits in Chambers of 7 judges or, in exceptional cases, as a Grand Chamber of 17 judges. The Committee of Ministers of the Council of Europe supervises the execution of the Court’s judgments.

ITERA Goes Back to Ukraine

MOSCOW, Russia -- ITERA Group intends to go back to Ukraine this year and sell up to 4 billion cub. m. of gas there. To this effect, Naftogaz Ukraine managers are in active talks with ITERA-Ukraine, delving into all possible patterns of the company’s activities on that market. In his plans to demonopolize the gas sales of Ukraine, Naftogaz board chairman Alexey Ivchenko apparently counts on ITERA, as exactly with that company he cooperated as a gas buyer when he headed Intergaz.


ITERA Group President Igor Makarov
ITERA used to ship Turkmen gas from Turkmen/Uzbek border to the Russia’s/Ukrainian frontier, where the company sold it to Ukrainian intermediaries. In 2003, ITERA was forced out of the market of Ukraine by Gazprom. According to Ukrainian National Electricity Governance Commission, ITERA Energy (Kiev) sold 133.2 million cub. m. of Ukrainian gas on domestic market in 2004. TEK ITERA-Ukraine sold 25.2 million cub. m. of Ukrainian gas in the first two months of this year.

This year, ITERA Group is able to sell up to 4 billion cub. m. of gas in Ukraine, Valery Enkin, head of the power department at ITERA-Ukraine, announced in Kiev Wednesday, adding “if it gets an opportunity to import gas, which it plans to acquire under the foreign economic contracts.” Evidently, Enkin meant the Turkmen gas. Pursuant to agreement made between ITERA and Turkmenistan, the company may deliver up to 10 billion cub. m. of the natural gas till the year 2006. But the agreement was actually blocked by Gazprom in 2003-2004, when Russia’s gas monopoly didn’t seal the contract for Turkmen gas transit via Uzbekistan, Kazakhstan and Russia. Gazprom is skeptical about the yesterday’s statement of Enkin. “To ship gas, they need a contract with a buyer. ITERA has neither called on Gazprom with such requests, nor submitted its contract with Ukraine,” Igor Volobuev, Gazporm’s briefer, explained yesterday.

Sergey Lukyanenko, briefer at Naftogaz Ukraine, declined to confirm the company’s negotiations with ITERA. However, a source with the company told Kommersant on condition of anonymity “negotiations with ITERA are well underway. Alexey Ivchenko, as the head of Intergaz trader, which used to acquire gas from ITERA, intends to demonopolize the natural gas market and bring back the company on it, if not as a core deliverer, then at least as a gas trader.”

In view of the above it is not surprising that ITERA’s head Igor Makarov was among the Russian business giants invited by Ukrainian President Viktor Yushchenko to have a talk with.

Ukraine, Georgia Planning to Set Up Democratic Coalition

BISHKEK. Kyrgyzstan -- Ukrainian President Viktor Yushchenko and Georgian President Mikheil Saakashvili want to establish a Ukrainian-Georgian coalition "Democratic Choice," Ukrainian Foreign Minister Borys Tarasyuk said in Kyrgyzstan's capital city of Bishkek on Thursday.

Tarasyuk and his Georgian counterpart Salome Zourabichvili are discussing Yushchenko's and Saakashvili's involvement in settling the crisis in Kyrgyzstan.

Asked if a new union could be set up to comprise Ukraine, Georgia, and Kyrgyzstan, Tarasyuk replied, "We did not talk about unions."

At the same time, he did not rule out that Kyrgyzstan could in the future be included in the Ukrainian-Georgian coalition.

EU Keeps Ukraine at Arm's Length

KIEV, Ukraine -- An EU troika of foreign affairs heavyweights met their Ukrainian counterparts in Kiev on Wednesday to discuss the stepping up of EU-Ukraine relations in the post-Yushchenko era and Ukraine's role in the long-standing Transnistria conflict.

External relations commissioner Benita Ferrero-Waldner, Luxembourg Foreign Minister Jean Asselborn and the EU's foreign policy chief, Javier Solana, assured Ukraine Foreign Minister Boris Tarasyukin that the EU wants "to keep the momentum going" on the EU-Ukraine action plan.

The new Ukraine government, which took charge following the 'velvet revolution' in January, is not shy about its ambitions to join the EU.



Ukrainian President Viktor Yushchenko has repeatedly said "for us, it is very important that Ukraine once again confirm its final goal - full membership in the European Union".

While the EU welcomed the change in power and Yushchenko's ambitious reforms, it has stopped short of proposing accession talks.

The EU flirted back with its EU-Ukraine Action Plan, a blue print for internal reforms aimed at achieving European standards, and preparing the county for WTO accession - a precondition for a future EU-Ukraine joint free-trade area.

The EU is also accelerating the signing of agreements to provide access to EU markets for Ukraine’s steel and textiles exports (which amount to 30% of Ukraine’s exports to the EU), with an EU-Ukraine textile agreement having been adopted by the Council this week.

The Plan, which upgrades an existing cooperation and partnership agreement signed in 1998, is a part of the EU Neighbourhood policy, which aims to create "a ring of friends" around the Union.

The EU is also the biggest donor in Ukraine, having contributed with over one billion euro to Kiev's coffers in the period of 1998-2004, and has committed itself to increasing its assistance in the next budget period.

During the meeting, the issue of the long-standing Transnistria conflict in neighbouring Moldova was discussed with the European Commission calling for stricter border management between Ukraine and Moldova, a key element to the settlement of the conflict.

"Finding a peaceful solution is in the interests of Moldova, Ukraine and the EU," said Ferrero-Waldner on Tuesday (29 March).

The Commission is set to open an EU Delegation in Moldova this year.

More Than 18,000 Children From Chernobyl Treated In Cuba Over Last 15 Years

HAVANA, Cuba -- More than 18,000 children with health problems believed linked to the Chernobyl nuclear disaster in Ukraine have received treatment in Cuba over the last 15 years, officials said.

Hundreds of those children and their relatives gathered to mark the 15th anniversary of the program, launched in 1991 after the Chernobyl nuclear plant exploded and caught fire in 1986. The initial blast and fire caused 31 deaths but the radiation plume that spread from the crippled power plant eventually killed and sickened many more.

"For many mothers, Cuba was the only hope," said Svetlana Saslavskaya, whose son showed officials and diplomats attending Tuesday's event how he could stand up from a wheelchair and move slowly after several operations for an unidentified illness.

The children receive treatment at a coastal sanatorium at Tarara, east of Havana. Cuba pays for all medical treatment, room and board. The average stay is 2 1/2 months.

About 250 children are at the sanatorium at any one time. They live in houses surrounding the medical facility, often with their parents.

When the program began, most of the young patients suffered from leukemia, other forms of cancer and cerebral palsy - health problems doctors believe are related to the radiation.

But any sick child from the affected region is eligible for the program, regardless of their affliction.

Ukraine, Turkey Win World Cup Qualifiers

SAN FRANCISCO, USA -- France managed just a 1-1 draw at Israel, leaving the teams tied Wednesday atop their group in a battle to reach next year's World Cup finals.

David Trezeguet scored in the 50th minute in the World Cup qualifier, but Walid Badier tied it for Israel in the 83rd. France was playing with 10 men at the time because Trezeguet was sent off in the 55th for head-butting. He faces a three-match ban from qualifying play for the straight red card.

France and Israel have 10 points apiece to lead their qualifying group. The winners of Europe's eight groups qualify automatically for next year's World Cup finals in Germany. The best two second-place teams also advance, with the other six playing for three spots.

The United States played Guatemala in a night match in Birmingham, Ala., one of three games in the North and Central America and Caribbean group. South America featured four games.

On a night of 21 games across Europe, England and Poland picked up wins their tightly contested group.

Steven Gerrard and David Beckham scored as England beat Azerbaijan 2-0 in Newcastle to improve to 16 points and remain one in front of Poland.

The Poles defeated Northern Ireland 1-0, getting a goal in the 86th-minute from Maciej Zurawski. In another group game, Austria defeated Wales 1-0.

Ukraine stayed atop its group with a 1-0 victory over Denmark on Andriy Voronin's goal in the 68th minute. With 17 points in seven games, Ukraine is trying to reach its first World Cup finals.

European champion Greece, second in that group, won 2-0 at home against Albania to improve to 14 points. Angelos Charisteas scored in the 35th, and Giorgos Karagounis added the clincher in the 85th.

Turkey won 5-2 at Georgia, giving the 2002 World Cup semifinalist 12 points in seven games. Fatih Tekke scored two goals and set up another. Tolga Seyhan, Mustafa Avci and Tuncay Sanli also scored for Turkey.

Another European group has a tie at the top between Slovakia and Portugal, which played to a 1-1 draw in Bratislava. The result left them with 14 points each, three ahead of Russia. Miroslav Karhan gave Slovakia a 1-0 lead on an eighth-minute penalty, with Portugal equalizing on Helder Postiga's 61st-minute strike.

Russia and Estonia drew 1-1 in Tallinn. Andrei Arshavin scored for Russia and Sergei Terehhov tied it early in the second half. In the same group, Latvia defeated Luxembourg 4-0.

The Netherlands defeated Armenia 2-0 to stay in the lead in its group with 16 points. Ruud Van Nistelrooy and Romeo Castelen scored for the Dutch. The Czech Republic has 15 points after a 4-0 win at Andorra. In another game, Romania won 2-1 at Macedonia to improve to 13 points.

Norway played a 0-0 draw at Moldova to improve to eight points in its group. Leader Italy, with 12 points, did not play. In another group game, Belarus and Slovenia drew 1-1.

Serbia-Montenegro drew 0-0 in Belgrade against Spain. Serbia improved to 11 points and Spain moved up to nine in that group. Lithuania and Bosnia-Herzegovina played a 1-1 draw, which gave Lithuania nine points. In another match, Belgium defeated San Marino 2-1.

Dado Prso scored twice and Igor Tudor once in Croatia's 3-0 victory over Malta in Zagreb. The victory moved Croatia into first place in its group with 13 points, one ahead of idle Sweden. Prso scored in the 23rd and 36th minutes, while Tudor scored in the 70th. In the other group game, Bulgaria drew 1-1 at Hungary.

In Asia, Japan and South Korea kept their World Cup bids alive. South Korea defeated Uzbekistan 2-1 and Japan topped Bahrain 1-0. Kuwait and Saudi Arabia played to a scoreless tie, and Iran topped North Korea 2-0.

Wednesday marked the halfway spot in qualifying. The next rounds are June 4 and June 8. Qualifying ends Oct. 12, with playoffs in November.

Ukraine's President to Address US Congress

KIEV, Ukraine -- Ukraine's president, Viktor Yushchenko, is to address a joint meeting of the U.S. Congress next week.

Senate Majority leader Bill Frist and House Speaker Dennis Hastert say they look forward to hearing from the Ukrainian leader April 6.

In a statement, the lawmakers said Mr. Yushchenko's election last year is inspiring the spread of democracy throughout the world.

Mr. Yushchenko meets President Bush at the White House Monday.

Last year's presidential election in Ukraine was a bitter contest marred by controversy.

Mr. Yushchenko defeated his rival Viktor Yanukovych in a repeat election held after Ukraine's Supreme Court threw out the results of a previous vote because of widespread fraud.

Ukraine's Sweet Smell of Success

KIEV, Ukraine -- It may look like an ordinary range of perfumes. Tall see-through glass bottles contain different fragrances. But it is the orange ribbons attached to each of them that sets them apart.

"We feel very proud about the Orange Revolution and we wanted to create something to remember that special time," says Lydmila Bedrina, director of the Russian Cosmetics Company, which is based in Kiev.



"Every one of our employees stood on Independence Square during the big demonstrations by the opposition."

The company has developed a fragrance for each round of Ukraine's presidential elections, as well as the inauguration of Viktor Yushchenko.

Fragrant Support

They use orange ribbons like those worn by the opposition.

Their mass protests were sparked by a disputed ballot in November.

The perfume for that round of the vote is marketed as smelling of bitter oranges.

"I like the one dedicated to the day that Yushchenko came to power, as it best reflects the strong emotions I felt when I saw him as our president for the first time," says Masha Ulyanchenko, a shopper in her 20s.

They each cost around $6.

As commiseration for the supporters of the losing presidential candidate, Viktor Yanukovych, the company has also produced a collection of blue-and-white perfumes.

But it is being outsold by the orange range.

Building Trust

Last winter hundreds of thousands of people demonstrated in Kiev's Independence Square.

More than three months on, the protesters are gone.

But there is a growing trade in memorabilia commemorating the "Orange Revolution".

Former president Leonid Kuchma was unpopular in many parts of Ukraine - while Victor Yushchenko enjoys a high approval rating.

The latest opinion poll conducted in all regions of the country found the new president to be trusted by more than 60% of respondents.

That is a third higher than during the elections.

"The revolution was a success and the right man won. People want to associate themselves with that success," says Hryhoryi Nemyrya, a political analyst.

"Young people especially are moved by the romantic aspect of Ukraine's revolution. It has become very symbolic and almost like a legend now."

Thriving Business

In a subway under Independence Square a new store has opened.

Called "The Orange Revolution Shop and Museum", it only sells items which celebrate the mass protests.

There are portraits of Mr Yushchenko, as well as T-shirts, key rings, calendars featuring pictures of the new president and Prime Minister Yulia Tymoshenko.

You can also buy orange flags, jumpers, bags, pens, and mugs.

Many of the open air stalls which line the capital's main street are also cashing in.

"It seems to me that you can buy more orange things than ever before, even compared to when there were all the demonstrations. It's not about making a political statement any more, but a fast buck," remarks Oleg Lazarev on his way through Independence Square to his office.

When the protests started the opposition supplied much of the orange gear as it was their election campaign colour.

But there was so much demand that street traders also started selling the goods.

Now their biggest customers are Ukrainian tourists and foreign visitors.

"You want a piece of history?" Oleksandr, a street trader, asks passers-by in English.

"Just two dollars for a hat, three for a scarf."

New Markets

Visiting the scene of the mass protests has become part of the tourist trail.

For $150 you can even go on an "Orange Tour" of Kiev.

"You will feel the atmosphere which was created by the supporters of Viktor Yushchenko, who defended the democracy and freedom of Ukraine," says the website of Sun City, the Ukrainian tourist agency which offers the trip.

Far from winding down, this orange industry is now preparing for a new market.

In May Ukraine hosts the Eurovision Song Contest.

It is thought that the memorabilia will be popular amongst many of the thousands of people who are expected in the capital.

Ukrainian Parliament Continues Shift Towards Yushchenko

KIEV, Ukraine -- As Ukrainian President Viktor Yushchenko prepares to visit Washington, DC next week, his support in the Ukrainian parliament grows even stronger. The camp that supported the Kuchma regime has shrunk, after several groups defected from it to join the factions linked to parliamentary chair Volodymyr Lytvyn. The Yushchenko's faction, Our Ukraine, has consolidated, choosing a liberal ideology based on free markets and is starting to shake off its right-wing nationalist element. The parliamentary opposition to the government now consists of former prime minister Viktor Yanukovych's Regions of Ukraine, former presidential administration chief Viktor Medvedchuk's Social Democratic Party of Ukraine (United) (SDPUo), and the Communists.



The establishment of Viktor Yushchenko's new party, the People's Union Our Ukraine, earlier this month has strengthened Yushchenko's faction in parliament. From a coalition of several party groups cemented by Yushchenko's charisma, it has been transformed into an alliance between the People's Union and the moderately conservative People's Movement of Ukraine (PMU). This has been the result of the dissolution of three groupings within the faction -- the Razom (Together) group of former businessmen, the center-left Solidarity, and the liberal Our Ukraine (formerly Reforms and Order) -- and the defection of the right-wing Ukrainian People's Party (UNP).

Most of Razom's members have become government ministers, leaving parliament. Solidarity, the party of National Security and Defense Council Secretary Petro Poroshenko, has merged with the People's Union. Viktor Pynzenyk's Our Ukraine is about to do the same. And the UNP left the Our Ukraine faction for ideological reasons, according to its leader, Yuriy Kostenko. The UNP, he explained in recent interviews, is a right-wing nationalist party, but the People's Union is a liberal formation, which makes a merger impossible. Kostenko pledged that his party would continue to back the Yushchenko government. At the same time, the UNP may remain outside Yushchenko's coalition in the 2006 parliamentary elections. Kostenko views the PMU and another right-wing group, Sobor, as possible allies for the upcoming electoral campaign. This means that the PMU's defection from Our Ukraine is not ruled out either.

For the moment, Our Ukraine's 85 deputies, the UNP's 22, the 24 seats of Prime Minister Yulia Tymoshenko's Bloc, the 17 deputies from First Deputy Prime Minister Anatoly Kinakh's Industrialists and Entrepreneurs group, and the 28-strong Socialist Party form the pro-government camp in parliament. This camp may grow, given the high popularity of its leaders, Yushchenko and Tymoshenko. The newly elected leader of the Our Ukraine faction, Mykola Martynenko, has predicted that Our Ukraine will grow to 100-120 members in the near future.

The second strongest camp for the moment is Lytvyn's. Currently it consists of the 31-strong People's Party (not to be confused with the UNP) and the 19-strong Democratic Ukraine faction. Three more factions -- United Ukraine (22), Democratic Initiatives (14), and Union (13) -- are viewed as satellites. This camp is set to grow at the expense of the People's Democratic Party of former prime minister Valeriy Pustovoitenko, which currently numbers 11 deputies and is on the verge of dissolution. The groups flocking under Lytvyn's wing had once been parts of former President Leonid Kuchma's mega-faction, United Ukraine, which broke apart at the end of 2002. The People's Party is the former Agrarian Party, which Lytvyn hijacked from the previous government's agricultural bosses. Democratic Ukraine was formed on the ruins of the once largest pro-Kuchma faction, Labor Ukraine, in January. Democratic Ukraine is headed by the former leader of Labor Ukraine, Ihor Sharov, and includes Kuchma's son-in-law, the steel and media tycoon Viktor Pinchuk. Yushchenko, speaking at his People's Union founding congress in early March, named Lytvyn's party as a possible coalition partner for the 2006 elections, but Sharov revealed in a recent interview with Glavred that he is going to persuade Lytvyn to form a separate list for the elections. The list may include Pinchuk, but there will be no place for Kuchma in it, Sharov said.

The three factions in the opposition to Yushchenko have been shrinking. Between early December 2004 and late March 2005, membership in the Communist faction dropped from 59 to 56, Regions of Ukraine shrank from 62 to 53 deputies, and the SDPUo shrank from 34 to 21 members. There has been little coordination among the three opposition groups so far. The March 25 voting on amendments to the state 2005 budget demonstrated that it would be too early to speak of an opposition alliance, let alone a united opposition. Only Yanukovych's Regions of Ukraine behaved as real opposition, refusing to take part in the voting. But the SDPUo and the Communists voted "in favor." As a result, support for the budget amendments providing for an increase in social spending and cancellation of tax breaks was very high -- 376 ballots "in favor" in the 450-seat body (428 deputies were present during the voting).

Ukraine: New Government Moving On Reforms -- But Not Fast Enough For Some

PRAGUE, Three months have passed since Ukraine's Orange Revolution. Viktor Yushchenko and other opposition figures who led last winter's street protests now occupy government offices. Analysts say the government is trying to implement the reforms it promised -- and is succeeding in some cases. But many Ukrainians are hoping to see more reforms -- and sooner.

Igor Losev teaches history and philosophy at Kyiv's Mohyla Academy. He says the Orange Revolution has brought some immediate benefits to his country -- like a new tolerance for freedom of expression, particularly in the media.



"Ukraine never knew such press freedom before. We've never had such freedom to criticize the authorities -- not only in semi-underground opposition newspapers, but also in very respectable ones. And sometimes this criticism really pushes the boundaries," Losev said.

The new government has moved quickly on reforms since Yushchenko's inauguration on 23 January. Officials have taken steps to cut back industry tax breaks and investigate past privatization deals. Parliament last week approved a revised 2005 budget supporters hope will lay a course for aggressive economic reform.

There have also been changes in the way the government appears to view its electorate. Stuart Hensel of the Economist Intelligence Unit says authorities now treat society with respect.

"There seems to be a general change in the tone of the leadership in Ukraine, which is a very positive thing," Hensel said.

Still, observers say it is still too early to talk about major reform. Hensel says the new government's work is still largely rhetorical -- and focused more on small changes rather than sweeping actions.

"It's still very early to look for any concrete changes. They [the new administration] in fact spent most of the past two months focusing on issues like personnel changes, and haven't actually come up with any really concrete pieces of legislation that they can move through parliament," Hensel said.

Such delays are not surprising to some. One of the first tasks of Ukraine's new government is to streamline the state apparatus by creating a firm separation between business and politics. But it's a delicate maneuver. Many on Yushchenko's team are themselves successful entrepreneurs.

The administration has also begun the difficult task of reforming the police, secret service, and border and customs officials.

The most visible change to date may be in foreign policy. Ukraine has moved quickly to ingratiate itself with Western bodies like the European Union. Still, such gestures will have little impact until Kyiv is able to fully implement its internal reforms.

Losev of Mohyla Academy says the enthusiasm and excitement that infused the Orange Revolution have faded as the government gets down to the practicalities of holding good on its promises. He says many Ukrainians are impatient, and want to see reforms instituted as fast as possible.

"I think that a lot of things have changed, but people's expectations are too high. We have a specific mentality. A person thinks that if he comes to a rally today, by tomorrow everything in the country should have changed -- and changed exactly the way he wants it to," Losev says.

Still, most Ukrainians still appear to have trust in their new government.

A February poll shows 63 percent of people support Yushchenko -- a rise of 27 percentage points over last October, before the height of the Orange Revolution.

By contrast, support for his former rival, Viktor Yanukovych, has dropped by 8 percentage points, to 29 percent.

Alfa Delves Deeper Into Kyivstar

MOSCOW, Russia -- M&A Russia's Alfa Group Consortium said Tuesday, March 29, it has taken full control of a 43.5% stake in Ukraine's second-largest mobile operator, CJSC Kyivstar GSM, in what analysts said is further evidence of the improved investment climate in the country since the election of President Viktor Yushchenko.

The reformist Yushchenko in December won a rerun of the previous disputed presidential election on a platform to clean up the rampant corruption that allowed state assets to be sold to relatives and cronies of the previous regime for a fraction of their true value. Since coming to power, the new government has held talks with a number of foreign investors and launched investigations into several suspicious privatizations.

OOO Alfa Telecom, a subsidiary of Mikhail Fridman's financial-industrial conglomerate, said it has raised its stake in Storm Ltd. to 100% from 50.1%. Storm owns a 43.5% stake in Kyivstar.

Kirill Babaev, vice president for external communications at Alfa Telecom, did not disclose the price paid, though Norway's Telenor ASA, which owns the remaining 56.5% in Kyivstar, acquired a 7.7% stake in the operator in 2002 for $31 million, suggesting a total market cap then of about $400 million. Kyivstar's revenue rose 72% in 2004 to $640.7 million, so it would appear to be worth more now.

In an interview with Ukrainian business journal Kontrakty, Alfa Telecom's managing director, Pavel Kulikov, said talks to gain take full control of Storm have been ongoing since the Russian firm purchased an initial stake two years ago in the Ukrainian company, the ownership of which remains obscure.

Analysts suspect the owners of the stake in Storm that has been sold to Alfa Telecom are individuals close to the former president, Leonid Kuchma.

"The motivation for the sale was probably to secure cash before the new government launches wider probes into the wrongdoings of its predecessor," said Alexander Kazbegi, an analyst at Moscow investment bank Renaissance Capital.

Alfa's foray into Ukraine's telecom sector is testament to how much the investment climate has changed in the country, especially given that Russia's largest mobile operator, OAO Mobile TeleSystems, was involved in a murky legal dispute last year over its purchase of 51% of the country's largest mobile operator, Ukrainian Mobile Communications, from state-owned telecom OAO Ukrtelecom.

That lawsuit has since been dismissed, though analysts at the time believed the prosecutor general's office was being used by politically influential local investors as a tool to attack Mobile TeleSystems and perhaps prevent it from taking part in the planned privatization of Ukrtelecom.

Ukrtelecom is one of 27 of the biggest state monopolies that are being audited by the government ahead of sales to private investors later this year. The government has set up a special commission to carry out an audit of these companies to prevent the kind of abuses seen in prior privatizations, where they were sold off too cheaply.

Ukraine to Buy Russian Gas for New Higher Prices — Paper

MOSCOW, Russia -- Ukraine’s new government has agreed to buy natural gas from Russia’s gas monopoly Gazprom at higher prices in return for increased gas transit fees, Russia’s Kommersant daily reported on Tuesday, March 29.

According to the paper’s information, officials from Ukraine’s Energy Ministry and state oil and gas company Naftogaz Ukraine went to Gazprom’s Moscow headquarters to negotiate a switch to international prices for natural gas. The move is a bid on both sides to make their relationship more transparent. Kommersant reported that the price of Russian gas supplied to Ukraine would rise from $50 to $80 per 1,000 cubic meters, costing Russia’s neighbor an extra $690 million a year in total.



Ukraine’s President Viktor Yushchenko wants to turn Ukraine into a major energy trading center and to move it out of Russia’s shadow. He has already attempted to negotiate with Turkmenistan so that the Central Asian country comes over to manage Ukraine’s vast network of gas pipelines.

The negotiations have not been completed because of the price issue, but Yushchenko is intent on getting rid of Russia’s virtual monopoly on the Ukrainian energy market. Around 80 percent of Russia’s total gas exports flow to Europe through Ukraine. The other problem that Yushchenko faces is securing cooperation from Gazprom, which can make or break gas exports from landlocked Turkmenistan.

Last year Gazprom and Russia’s state-owned Vnesheconombank agreed to reclassify $1.2 billion of Ukraine’s debts to Russia as prepayments for gas transit. The transit tariff was set at $1.09 per 1,000 cubic meters per 100 kilometers of transit until 2009. But the Russian daily said that in the process of negotiations the parties agreed to raise the transit price to between $1.75 and $2 beginning in 2006 and to stop barter deals under which Gazprom pays for transit with gas.

According to the paper, Russia pipes around 130 billion cubic meters of gas through Ukraine annually. Ukraine receives some 23 billion cubic meters of gas in lieu of transit fees.

Yushchenko Plans Constitution Reform

KIEV, Ukraine -- President Viktor Yushchenko wants to reform Ukraine's constitution this fall, Interfax news agency reported Tuesday.

The changes are intended to raise the efficiency of local self-government across the former Soviet republic, the pro-Western president told a press conference.

"I am a great supporter of creating true self-government in Ukraine, starting with making this system legally self-sufficient. This process is promising. I, as president, will support it. I think we will see the constitution made stronger by appropriate amendments this fall," he said according to the Interfax report.

"Political reform should be public and honest, without forcing the decision making process," Yushchenko said.

Yushchenko's proposed reform will change Ukraine's political system from the presidential to the parliamentary form of government, Interfax said. This will allow a coalition of parliamentary factions to form the government. The president also wants to extend the term of an elected parliament to five years, the news agency said.

The new arrangements will come into effect on Sept. 1 if the constitutional amendments are ratified in time, Interfax said.

Ukraine Want to Prove Worth Without Shevchenko

KIEV, Ukraine -- Ukraine have a rare chance to dispel the myth of being a one-man team when they host Denmark in a World Cup qualifier on Wednesday.

The Ukrainians, who lead European Group Two with 14 points from six matches, will be without captain and leading player Andriy Shevchenko, who is still recovering after fracturing a cheekbone and eye socket in a Serie A match last month.

The AC Milan striker has scored four goals in five qualifiers to help Ukraine open a three-point lead over European champions Greece with Denmark joint third in the group with Turkey, a further two points behind.

With the European Player of the Year on the sidelines, the home side will not only miss his scoring touch but more importantly his ability to lead the team in tough situations.

"Do we miss him? Of course we do," Ukraine coach Oleg Blokhin told local reporters this week.

"It's like having two different teams, with Shevchenko or without him in the line-up. But it will give a chance for other senior players to prove their worth and show their leadership qualities," added the former Soviet international.

At least Blokhin will be allowed to guide his team from the bench after Ukraine's Appeal Court last week reversed an earlier decision and allowed the former Dynamo Kiev striker to keep his job.

Blokhin resigned this month saying he could not combine the coaching post with his other job as a Ukrainian parliament member, but the court said he could do both.

Gravesen Returns

"It has been a really tough week mentally for myself and the players," said Blokhin.

"I don't really know why someone in the parliament tried to create such turmoil, especially before a key match against Denmark. It is almost as if someone in our own group wanted us to lose, but I hope my players will prove them wrong."

Aside from Shevchenko, Ukraine will be missing injured Dynamo Kiev defender Serhiy Fyodorov and suspended Dnipro Dnipropetrovsk midfielder Oleg Shelayev.

Denmark, quarter-finalists at Euro 2004, beat Kazakhstan 3-0 at home on Saturday for only their second win in six qualifiers but welcome back Real Madrid midfielder Tomas Gravesen from suspension for a tougher assignment in Kiev.

"They must not take the lead because then they will pack themselves in front their own goal," warned coach Morten Olsen, quoted by the tabloid BT.

Defender Per Kroldrup is also available after serving a suspension.

Probable Teams

Ukraine - Olexander Shovkovsky; Andriy Nesmachny, Volodymyr Yezersky, Andriy Rusol, Oleg Gusev; Andriy Husin, Anatoly Tymoshchyuk, Ruslan Rotan; Andriy Vorobei, Olexiy Belik, Andriy Voronin

Denmark - Thomas Sorensen; Thomas Helveg, Christian Poulsen, Brian Priske, Niclas Jensen, Per Kroldrup, Thomas Gravesen, Jesper Gronkjaer, Jon Dahl Tomasson, Peter Moller, Martin Jorgensen

Referee: Michel Lubos (Slovakia).

Yushchenko Says Ukraine Must Improve Weapons Exports, Pledges Better Controls

KIEV, Ukraine -- Ukraine's President Viktor Yushchenko said that the country's military industry should make more efforts to improve it own weapons designs instead of exporting Soviet-designed surplus arms, the Unian news agency reported March 28.

After appointing Serhiy Bondarchuk, his ally and a prominent technocrat, as the new director of the Ukrspetsexport, Ukraine's state-run weapons exporter, Yushchenko said that "the company's future objective should be to focus more on manufacturing (of weapons), instead of (simple) trade and overhauling."

Yushchenko also said that Ukraine "should not be satisfied that it earns some $500 million (385 million euros) in weapons exports" to about a dozen other countries. "I expect a new, aggressive business approach," he was quoted as saying.

After the Soviet breakup in 1991, Ukraine inherited a sizable military industry and it remains a major producer of weapons, including missiles, aircraft and tanks.

However, the country has long been under scrutiny for murky weapons deals under the former regime of President Leonid Kuchma and Yushchenko said that Ukrspetseksport "must operate transparently, with clean hands and within the law." "Because of weapons scandals we are losing customers," Yushchenko said.

Ukrainian prosecutors acknowledged recently that 18 unarmed nuclear-capable cruise missiles were sold illegally to Iran and China by weapons dealers four years ago, during Kuchma's administration.

In 2002, the United States alleged that Kuchma had approved the sale of sophisticated Kolchuga military radars to Iraq despite U.N. sanctions against Saddam Hussein's regime, something Kuchma denied.

"We do not need ... deals that would later spark scandals," Yushchenko said.

He also pledged that the state will establish full control and supervision of weapons production, stockpiles and exports.

Last month Ukrainian authorities ordered military commanders to conduct an inventory of all military weapons and equipment in Ukraine after two anti-aircraft missile systems were discovered missing from a navy depot.

Poland Tapping Up Ukraine for Oil

WARSAW, Poland -- A proposed pipeline bringing oil from Ukraine to Poland could come onstream within three years and pay for itself within eight.

The chief executive of PERN, Wojciech Tabiś, has proposed bringing Caspian Sea oil to the Baltic via an extension of Ukraine's Odessa-Brody pipeline. In an interview with Reuters, he said that the zł.2 billion extension needs a throughput of 15 million tonnes a year to be profitable.

Originally, when Ukraine built the pipeline, it planned to ship Caspian crude to Gdańsk in Poland, but Kiev reversed the plan under Russian pressure. However, the new administration, under President Viktor Yushchenko, is moving away from Russia and towards the EU at a rate of knots, and wants to implement the original idea. Tabiś is confident that the project will be carried out.

"This pipeline will certainly be built - the only question is when. Ukraine needs it, Poland needs it, and Europe needs it," he said. Prime Minister Marek Belka said that Ukraine and Poland will set up a working group to push the project forward, and Tabiś said the next step is to draft a business plan for the extension to Gdańsk.

"The tender for a consultant to write the feasibility study should be announced in May, and according to the current schedule, the oil should start flowing 2.5 to three years after the study is completed," he said. "The investment should pay off in seven to eight years."

Poland appears anxious to find a non-Russian source for crude oil, although the new pipeline may be unsuitable for many Polish refineries as they are currently configured to refine high-sulfur Russian crude.

Georgia, Ukraine Form "New Axis"

KIEV, Ukraine -- President Mikheil Saakashvili returned to Tbilisi from Kiev on Saturday, after a three day visit to Ukraine during which he discussed cooperation between the two countries and signed an agreement on strategic cooperation with Ukrainian President Victor Yushchenko.

The two countries also signed an agreement of cooperation between the Black Sea regions of Odessa and Adjara, which according to Georgian media includes cooperation in trade, economic, technical, scientific and humanitarian issues.



Saakashvili was accompanied by Secretary of the National Security Council Gela Bezhuashvili, who signed a memorandum on mutual understanding between the National Security Councils of the two countries with his Ukrainian counterpart Piotr Poroshenko.

President Saakashvili, meanwhile, stressed Ukraine's importance in the region, saying Georgia considered Ukraine as the regional leader in economic, security and political issues as well as the "locomotive of European integration."

On Friday the two men signed a declaration on strategic cooperation that called for, among other items, mutual assistance in settling frozen conflicts in the region.

"The declaration we have signed reads that a new axis is being established from the Baltic Sea to the Black Sea. It is a very important strategic initiative," President Saakashvili stated.

The declaration also calls for demilitarization of the Black Sea region, utilization of energy transit potential, and reinforcement of humanitarian partnerships.

After the signing, Presidents Saakashvili and Yushchenko also discussed the forthcoming meeting of the leaders of GUUAM member countries - Georgia, Ukraine, Azerbaijan and Moldova - to be held on April 22 in the Moldovan capital Chisinau, which Romanian President Traian Basescu is also expected to attend despite not being a member of GUUAM. Uzbekistan, meanwhile, has suspended its membership and has not said it will attend the summit.

The presidential website cites him as saying, "We have cooperated with the Baltic States, Ukraine and Romania for a long time… This means that these countries have common interests." He added, "GUUAM member states strive for EU and NATO membership and we openly declare that."

"We are speaking about the re-establishment of the Baltic-Black Sea frame of stability," the president continued, stressing that such a union was not directed against any third country.

At a joint press briefing on March 25, Saakashvili and Yushchenko also commented on the events taking place in Kyrgyzstan, and called for a peaceful settlement of the conflict, and also sought to downplay any strong connection between the Kyrgyz events and the revolutions in Georgia and Ukraine.

"We are not the exporters of revolution. Our revolutions were similar, but not because they were fabricated by someone; simply, the people reacted to injustice in a similar way," Saakashvili declared.

"Of course, this is an issue that must be solved within the country, but the issue of democracy and our sympathy towards restoring democracy in the country are of course international issues are well. All international observers described serious violations in the elections in Kyrgyzstan," the Georgian president added.

Yushchenko, meanwhile, called for a peaceful settlement of the conflict as the best way to put an end to the instability.

Saakashvili also met with Ukrainian Prime Minister Yulia Timoshenko, whom he invited to visit Georgia. She said that she would visit Russia only after Georgia.

"I received an invitation from the Georgian president to visit Georgia. I will certainly do so after overseeing the adoption of the state budget. For me Georgia is a unique and romantic country," Timoshenko said in an interview with the media, although she added that this would be her first visit to Georgia.

While in Kiev, Saakashvili was awarded the prize of Honorary Doctor from the National Taras Shevchenko University in Kiev.

2005 declared Year of Georgia

Saakashvili's visit concluded with a concert dedicated to the declaration of 2005 as the Year of Georgia in Ukraine at the Taras Shevchenko Opera and Ballet Theater. Sandra Roelofs, who accompanied her husband to Ukraine, agreed to a schedule of events to mark the 'Year of Georgia 2005.'

Before the opening of the concert the presidents of the two countries addressed the audience, both highlighting the friendship between the two courtiers.

Saakashvili said that the fight for democracy in the world would be stopped by nothing. "This striving towards democracy will not be stopped by any army or use of force. I think that this force will lead us to greater kindness and, as I have already mentioned, kindness always wins," he told the audience gathered in the theater.

He promised that Georgia would respond be creating a 'Year of Ukraine' in 2006. After the speech the two presidents viewed the concert in which only Georgian singers and musicians took part.

At the back of the stage were hung screens depicting the revolutions in Ukraine and Georgia.

At the end of the concert Georgia's First Lady also sang two Georgian songs Suliko and Verkhvis Potoltan together with Folk Rustavi.

In May, President of Ukraine Yuschenko is slated to visit Georgia for the opening ceremony of the Ukrainian house in Tbilisi.

Master Card Caught Fraud Perpetrators in Ukraine

MOSCOW, Russia -- Friday night Master Card Europe distributed a press release saying that in Ukraine officials had stopped activity of a criminal group accused of committing fraud with credit cards. Master Card of Europe made this step to calm bankers and their clients because early Friday two Russian banks reported fraud through bank machines in Ukraine.

Two weeks ago, Raiffaizenbank (Moscow) stopped accepting its cards through bank machines in Ukarine. At that time, a member of the board of Raiffaizenbank, Alexander Koloshenko stated that recently “the cards that were used in the territory of Ukraine more than anywhere else were objects of schemes and frauds including compromising of the PIN code.” Last Friday two more Russian banks – Slavyaski Bank and Master Bank – shared the fears of Raiffaizenbank. They put on their web sites warning for clients about the high risk of fraud with the plastic cards in Ukraine.

For instance, the Department of Plastic Cards of Slavyaski Bank says in its warning “we ask that unless you have an urgent needs, do not use your bank cards to receive cash in the bank machine located in the territory of the Republic of Ukraine until the current situation is resolved.” The vice president of Slavyaski Bank Maxim Belov explained to Kommersant the appearance of such warnings was made after reading of the Kommersant article of March 15. The other reason, according to his words, was “we had two cases of fraud in ATM transactions in Ukraine this year. However, with only two cases from 100,000 (that’s how many cards the bank issued) we cannot make straight conclusions. In Southeast Asia at the same time there were many more frauds.” Belov thinks “it’s always better to overreact and warn the clients in the form of recommendation.”

Master Bank also warned its clients practically the same way. “Because of a large number of frauds with plastic cards in Russian banks in Ukraine, Master Bank does not recommend that use your cards in the territory of this state.” The bank also reminded clients that if they want to check all the operations done with cards they can join a free system of personal control. In other words, they can receive information on any transactions on the account online and through the cell phone as SMS message. The head of the payment transactions department of Master Bank, Oleg Safonov, explained to Kommersant “Our recommendation to the clients is based on the analysis of the developing situation in order to forecast and prohibit in the future possible increases in the number of fraud operations.”

The level of increased fraud among the Ukrainian bank machines from the fall of last year has become a hot topic among participants in the plastic card markets. The participants of this market noticed that percentage of compromised plastic cards in Ukraine was quite high, and that shows that the problem has a wide-spread character. The fraud of the PIN codes can be evidence of the existence of criminal groups which act from some processing center. Raiffaizenbank was worried about the existing situation and early this month asked Master Card and Visa to “find the root of the crime.” So far Visa did not react on the request of Raiffaizenbank. But Master Card of Europe, to calm down the Russian bankers and their clients, distributed an official press release last Friday.

“In August of last year, Master Card of Europe discovered fraud operations that were committed with Master Cards in ATM machines in Ukraine, says the press release. In order to prevent losses for card holders, Master Card, together with Ukrainian law enforcement, took measures for fast and effective resolution of this situation. The result of this active cooperation was halting fraud operations and arrest of culprits.” However the names of those arrested or the volume of the fraud, Master Card did not publish in its press release. “Master Card officially did not let us know about its actions and for that matter I think it would be not correct to comment on the situation right now,” said Koloshenko to Kommersant on Friday.

Estimates of Chernobyl Radioactivity Over France Too Low: New Report

PARIS, France -- A new expert report on the radioactive cloud from the 1986 Chernobyl nuclear disaster over France suggests radioactivity measurements were sometimes much higher than at first suggested, a source close to the case said.

Judge Marie-Odile Bertella-Geffroy, who has been leading the inquiry since July 2001, has just been handed new information from two experts, Paul Genty and Gilbert Mouthon, various French media organisations reported Saturday.

During their investigation into the matter the two experts relied on documents seized during searches in various ministries and organisations involved in the prevention of nuclear risks.

The accident at the Chernobyl plant in the Ukraine on April 26, 1986 was the world's worst nuclear power disaster, contaminating a large part of Europe over several days.

U.S. Ambassador Says Bright Prospect for U.S.-Ukrainian Relations

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko's planned visit to the United States would help usher in a new era in bilateral relations, the U.S. ambassador to Ukraine said, according to an interview published Saturday.

Yushchenko is set to meet with President Bush at the White House on April 4.

``We expect not only the revival of friendly ties that existed between our states seven-nine years ago, but the establishment of a qualitatively new level of relations,'' U.S. Ambassador John Herbst told the Kievskiy Telegraf weekly.

Ukraine has been cited frequently by Bush administration officials as an example of the movement toward greater democracy worldwide.

In Ukraine's so-called ``Orange Revolution,'' popular protests triggered by a fraudulent vote paved the way to Yushchenko's victory over a Russia-backed rival in December's court-ordered election rerun.

``Ukraine presses toward truly democratic changes in politics and economy,'' Herbst said. ``If it manages to fulfill its aspirations, our relations, I'm sure, will be absolutely close.''

U.S.-Ukrainian relations cooled under ex-President Leonid Kuchma, who was accused by Washington of selling a sophisticated radar system to Iraq despite U.N. sanctions against Saddam Hussein's regime. Kuchma denied the allegations.

In what was widely seen as an effort to improve relations with Washington, Kuchma sent Ukrainian troops to serve in the U.S.-led coalition in Iraq after the war. The deployment has been unpopular at home, however, and Ukrainian officials have vowed to bring the troops home this year.

``I see no problems in the withdrawal of the Ukrainian troops,'' Herbst said, emphasizing that Yushchenko had promised to consult coalition partners on details of the withdrawal.

Delta Couple Preparing to Start Life in Ukraine

DELTA, Ohio -- With the recent election of Viktor Yushchenko, a Delta native is hearing the call of Kiev.
Tim McQuillin, who served as an election monitor in Ukraine, is leaving the Fulton County countryside next week for his new home and job in one of the biggest cities in Europe.

"I had a vested interest in the outcome of the election," said Mr. McQuillin, 36, a 1987 graduate of Pike-Delta-York High School. His wife, Luda, is a native of Romny, Ukraine, where they met after Mr. McQuillin signed up in 1997 for a 15-month assignment as a consultant to help businesses in the former Soviet republic become private enterprises.


Tim and Luda McQuillin
Before the recent presidential election, Mrs. McQuillin, as well as many others in Ukraine, didn't pay much attention to politics, she said. "It was boring. It never made sense. It never made a difference." Today? "The country is changing," she said. "You can't stay indifferent to that."

Mr. McQuillin said that he knew in 2003 that he wanted to go back to Ukraine to live if the conditions were right. Term limits meant that a new president would be elected in 2004. "I knew there could be big changes," he said, and if the reform candidate won, "that would be the trigger."

Sensing an urgency to the outcome, the need to make sure that the election produced a respected leader who would help integrate Ukraine into Europe, Mr. McQuillin wanted to be involved in the process. He applied to be one of the election observers. He said he watched out for "any funny business" during two rounds of voting last fall.

In December, he and his wife went back - their third trip to Ukraine for the elections - to monitor a rerun of the Nov. 21 run-off between Mr. Yushchenko and pro-Kremlin Prime Minister Viktor Yanukovych, whose victory was later annulled by Ukraine's Supreme Court amid evidence of widespread vote fraud and massive pro-Yushchenko protests.

It was amazing to witness the protest in Kiev's Independence Square, said Mr. McQuillin. Protesters, he said, were saying that "they didn't have to live like this anymore. It was the first time that I saw them take a stand."

The election marked a turning point for the country where democracy has struggled to take hold in the years since the fall of the Soviet Union. Mr. Yushchenko has pledged to clean up corruption and set the country of 48 million on a course toward European integration.

In January, the McQuillins attended the presidential inauguration, meeting Mr. Yushchenko, and then the couple returned to Berkeley, Calif., where they started to pack up belongings in their apartment. They were married in California in 2000. For the last couple weeks, they have been staying at the Delta home of his parents, Kathleen and Mark McQuillin.

Tim, who has a background in business, and Luda, whose area is finance, have created a firm called ROMDEL, a name that blends her hometown of Romny and his hometown of Delta. They will do business consulting and work with Sauder Woodworking of Archbold to export Sauder products to Ukraine, said Mr. McQuillin. "I would love to see Ohio become a leader in export/import with Ukraine," he said. "Ukraine could be a good source. Ukraine has been out in the cold for so long." But the business climate is changing, he said. The thaw, "It's happening."

Pink Revolution Rumbles on in Blood and Fury

BISHKEK, Kyrgyzstan -- First there was the rose, then the orange, now it's pink. Revolution seems to be contagious in former Soviet republics; this is the third in 17 months. After three days of looting and violence, Kyrgyzstan's parliamentary Speaker yesterday tried to place a seal on the week's uprising by announcing that presidential elections would be held on 26 June.


Kirgyz riot police officer inspects a vehicle
The accidental revolution erupted in the Kyrgyz capital, Bishkek, on Thursday morning when 1,000 people turned up outside the presidential administration for a protest over an election that President Askar Akayev had fixed to give his allies, son and daughter all but six of the 75 parliamentary seats.

The Akayev regime had anticipated such a protest and bussed in hundreds of sympathisers, mostly state industrial workers who were told by officials they were there to 'defend the motherland' and ordered to be ready to fight 'to the death'.

Together with thin lines of young, ill-equipped police, they encircled the presidential administration, next to the central square. Opposition leaders Kurmanbek Bakiyev and Roza Otunbayeva, now the country's acting President and Foreign Minister, were at the front of the protesters, while behind the crowd snaked and grew, a mixture of the impassioned and drunk. The marchers' fury was clear, but their aim was not.

Slogans and symbols almost replicated the electoral struggle which unseated Ukraine's President Leonid Kuchma in November. Pink armbands were distributed to the crowd; they had been orange in Kiev. In Georgia, the symbol of 2003's revolution was a rose. Daffodils appeared in the marchers' hands, the opposition claiming the government had cleared the city of the initial symbol - tulips - out of fear.

Forty police, riot shields linked together, faced a volley of sticks and stones and dust rose over monuments in the city's central square as missiles flew between rival protesters.

Within an hour the crowds had broken through and were inside the presidential kitchen, drinking the presidential wine, riding the presidential Stairmaster and ransacking the safe.

They expressed their rage at the monopoly the Akayev government had on business and life in the central Asian state. Photocopiers, clocks, photographs of the President - nothing was safe from the rage of a crowd part ideological, part criminal, part drunk.

With no leader co-ordinating or calming the protest, mob fury ruled. The opposition, steeled by the peaceful success of crowds in Ukraine and Georgia, felt a repeat would be easy in Kyrgyzstan. But the infrastructure - parliament, economy, media and police - that held Ukraine together during its electoral crisis to ensure a clean transfer of power collapsed in Kyrgyzstan. At least five people died and more than 200 were treated in hospital.

There were also fears this weekend of further conflict. Last night some 3,000 Akayev supporters were marching on Bishkek from a town 55 miles away. Keneshbek Dushenbayev, Akayev's Interior Minister, said they were coming to 'help law enforcement tackle the youth looting the city'. Interfax reported that Akayev had fled to Russia and there were claims of an attempt on his life.

A second night of violence and looting hit the capital on Friday. 'Give me your watch or I will smash open your head,' one looter said to The Observer . Many police stood by, idly smoking. They said they wanted to impose a curfew but lacked numbers.

Yesterday morning, as the city appeared calm, Ruslan Akhimov picked through the wreckage of the supermarket Beta Stores, where he worked. 'We're all out of a job now', he said, 'and these criminal elements just want the place to fall apart.'

Ukraine Kicks off Corruption Clean-Up - with a Ban on Baths

MOSCOW, Russia -- Only in Ukraine would you think that the way to start a clean-up campaign is with a ban on baths. But the country's new leaders believe they can stamp out sharp practice by discouraging their underlings to steer clear of a centuries-old Slavic pastime, the banya or bath house.


A Ukrainian Banya
It may be the place where Ukrainians, and indeed Russians, go every week to wash away their sins and grime but Ukraine's new "Orange" government thinks it is also the place where many an official is "nobbled" by corrupt businessmen. Viktor Yushchenko, the country's crusading President, has therefore informally banned regional governors and other officials from going to the banya - traditionally a sacred part of Ukrainian and Russian culture.

"It's all about showing the new face of Ukraine," Irina Geraschenko, Mr Yushchenko's spokeswoman, told The Independent on Sunday. "It's no secret that you get all kinds of unsavoury types there, and they are not the people with whom government officials should be mixing." Though she conceded that there was no way Mr Yushchenko could physically prevent his officials from frequenting banyas, she said that he had made it clear that banya-goers will be frowned upon.

In neighbouring Russia, banyas remain a staple of business culture - often replacing a business dinner or a boardroom meeting. Indeed, many legitimate business transactions are concluded amid the hot steam and beery atmosphere, where men traditionally wash themselves once a week.

However, stamping out corruption is Mr Yushchenko's No 1 priority. He has banned officials from accepting gifts worth more than £12 and from having any business interests, and has ordered them regularly to declare their outgoings as well as their income. Cronyism, fraud and corruption are Ukraine's biggest ills, he has declared, a legacy he blames on his predecessor, Leonid Kuchma.

Mr Yushchenko has pledged that things will be different now. His task is Herculean. According to Transparency International's latest ranking of corrupt nations, Ukraine came 128th out of 146 - nestling between Sudan and Cameroon.

Mr Yushchenko's government has already started the process of reversing the privatisation of Ukraine's biggest steel producer on the grounds that it was "bare-faced robbery". A further 3,000 privatisations are set to be reviewed, and there have been flamboyant gestures. Yevhen Chervonenko, the new Transport Minister, promised to auction off a luxury Maybach limo worth £250,000 bought by the former head of the country's cash-starved railways.

However, there are signs that the corruption drive will not be plain sailing. At least one prominent government minister responsible for the campaign has complained of coming under "undue pressure" from outside interests.

Ukrainian President to Meet With Bush

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko's planned visit to the United States would help usher in a new era in bilateral relations, the U.S. ambassador to Ukraine said, according to an interview published Saturday.

Yushchenko is set to meet with President Bush at the White House on April 4.

"We expect not only the revival of friendly ties that existed between our states seven-nine years ago, but the establishment of a qualitatively new level of relations," U.S. Ambassador John Herbst told the Kievskiy Telegraf weekly.

Ukraine has been cited frequently by Bush administration officials as an example of the movement toward greater democracy worldwide.

In Ukraine's so-called "Orange Revolution," popular protests triggered by a fraudulent vote paved the way to Yushchenko's victory over a Russia-backed rival in December's court-ordered election rerun.

"Ukraine presses toward truly democratic changes in politics and economy," Herbst said. "If it manages to fulfill its aspirations, our relations, I'm sure, will be absolutely close."

U.S.-Ukrainian relations cooled under ex-President Leonid Kuchma, who was accused by Washington of selling a sophisticated radar system to Iraq despite U.N. sanctions against Saddam Hussein's regime. Kuchma denied the allegations.

In what was widely seen as an effort to improve relations with Washington, Kuchma sent Ukrainian troops to serve in the U.S.-led coalition in Iraq after the war. The deployment has been unpopular at home, however, and Ukrainian officials have vowed to bring the troops home this year.

"I see no problems in the withdrawal of the Ukrainian troops," Herbst said, emphasizing that Yushchenko had promised to consult coalition partners on details of the withdrawal.

Ukrainian Parliament Passes Reform-Minded Budget

KIEV, Ukraine -- Ukraine's parliament today approved a revised 2005 budget that supporters hope will help lay a course for aggressive economic reforms.

The vote was seen as a major victory for the Ukrainian government, which inherited major budgetary problems after last year's Orange Revolution succeeded in putting opposition candidate Viktor Yushchenko in office.


PM Yuliya Timoshenko (l) Presenting Budget with Minister of Finance Viktor Pynzenyk (r)
Prime Minister Yuliya Tymoshenko said the budget -- which cuts the country's deficit and scraps tax breaks for industry -- was the first step toward ending corruption and the shadow economy.

The budget had wide backing from parliamentary lawmakers. A total of 376 deputies in the 450-seat chamber backed the draft. The remainder abstained.

Tymoshenko said the broad agreement, which came after two days of talks, was a sign that the government and the parliament could work together to "produce results for every citizen."

Ukraine, Georgia Urge Kyrgyzstan to Avoid Violence

KIEV, Ukraine -- The presidents of Ukraine and Georgia, both catapulted to power by peaceful revolutions, urged Kyrgyzstan's new leaders on Saturday to shun violence after this week's revolt in the fellow ex-Soviet state.

Viktor Yushchenko and Mikhail Saakashvili won office in 2004 after "Orange" and "Rose" revolutions sent thousands onto the streets in their capitals to protest at fraudulent elections.


Viktor Yushchenko (l) and Mikhail Saakashvili (r)
Both came to power without violence, in contrast to the ouster of Kyrgyz President Askar Akayev which was marked by clashes between police and protesters and an orgy of looting.

"We are very preoccupied by the situation in Kyrgyzstan .... Democracy can only be established through non-violence," Saakashvili told reporters at the close of a three-day visit to Ukraine.

"People everywhere -- in Kiev, Tbilisi, Bishkek, Minsk, everywhere -- deserve to live in a democracy, but only achieved through peaceful means."

Those cities are the capitals of Ukraine, Georgia, Kyrgyzstan and Belarus -- a fourth ex-Soviet republic where police broke up a rally on Friday by demonstrators demanding long-time President Alexander Lukashenko resign.

Both Ukraine and Georgia have offered to mediate in the crisis in Kyrgyzstan, where demonstrators stormed government buildings in rallies denouncing a parliamentary election as rigged.

Yushchenko expressed alarm that no talks were taking place.

"We offered again our services and ask the authorities to respect their nation -- that means a guarantee not to use arms and to sit down at the negotiating table," he said.

The presidents had issued a statement overnight expressing concern over possible violent confrontation but praised Akayev's "courageous step in giving no order to use force against his own people in the first days of the people's uprising".

Akayev fled his Central Asian homeland and media reports say he is now in Russia.

Saakashvili had sharply criticised Akayev on Friday, saying he had dismissed opposition leaders as criminals and rebuffed his own offer to help mediate in a "coarse and impolite" manner.

Shriners Aid Heroic Ukraine Burn Victim

BOSTON, USA -- She is a national hero in her homeland, hailed for plucking her little sister from their family home as it was consumed by flames.

Now, Nastya Ovchar, her body burned extensively during the rescue of her sister, lies in a room at Shriners Burns Hospital Boston, half a world away from her home in the Ukraine.

If they made a movie about Nastya, they could well call it ''The President and the Little Girl," for it was the intervention of a national leader who had endured his own share of physical suffering that assured the 5-year-old could receive lifesaving medical treatment.

On March 15 fire erupted in a home in the Ukraine's Kharkiv region, which sits on the border with Russia. Nastya and her 2-year-old sister, Lyuda, were in the house by themselves.

Nastya saved her sister from the fire; in the process, she sustained burns over 80 percent of her body, according to an Associated Press report from Kiev. Lyuda suffered comparatively minor injuries.

Tales of the rescue swiftly captured the attention of Ukrainians. That nation's newly installed president, Viktor Yushchenko, extended his assistance to Nastya. Yushchenko confronted pain and disfigurement last year, when he was poisoned during his campaign for president.

''Mr. Yushchenko always supported very young people. Children are the future of our country," said Iryna Bezverkha, press secretary of the Ukraine Embassy in Washington. ''This is a really inspiring story."

At first, Yushchenko, who spoke directly with Nastya, and his associates sought treatment in the Ukraine for the child.

''Unfortunately," Bezverkha said last night, ''these efforts were not enough for this little girl."

So the president, Ukraine lawmakers, and Yushchenko's wife banded together to secure treatment for Nastya outside their nation.

''And they found Shriners," said Kathy Golden, spokeswoman for the Boston hospital.

The Ukraine government arranged for the child to be flown to Boston, and she arrived Thursday night. The Shriners provide care free of charge at all of their hospitals.

Golden said privacy rules prevented her from releasing details of Nastya's condition, or even officially confirming her name, but she acknowledged that ''typically children with burns have many months of treatment."

The president intends to follow Nastya's recovery intently, the embassy spokeswoman said.

Golden said, ''They've been keenly interested in her care, because they really see her as a hero."

Court Ruling Allows Blokhin Return

KIEV, Ukraine -- The Ukraine Appeal Court has cleared the way for Oleg Blokhin to return to his job as national coach.

Blokhin, 52, resigned saying he could not combine the post with his other job as a member of parliament.

However, the court ruling has said he can combine the two posts.

"I would like to thank the court for its objective and fair ruling in my case," said Blokhin.

The head of Ukraine's federation, Grigory Surkis, had asked the court to rule on whether Blokhin legally had the right to remain as coach and keep his seat.

The constitution bars deputies from holding other jobs but Blokhin receives no financial gain from coaching.

Blokhin, voted European Player of the Year in 1975, was elected as a Communist but switched to another party backing former President Leonid Kuchma, who stepped down in January.

He was named national coach in September 2003, replacing fellow ex-Soviet international Leonid Buryak, who was sacked following a string of poor results.

Immediately after his appointment, the former Soviet and Dynamo Kiev striker said his goal was to guide the country to their first major international finals -- the 2006 World Cup in Germany.

The Ukrainian Football Federation also voted last week to keep Blokhin, who has led the former Soviet Republic to the top of European qualifying Group Two with 14 points from six matches, six ahead of European champions Greece.

Ukraine host Denmark, in third place with six points from five games, next Wednesday at Kiev's Olympic stadium.

"I think it (the court ruling) is great news for me and my players ahead of a very important qualifier," said Blokhin.

"Definitely, it will give all of us a big boost next Wednesday against Denmark."