Wednesday, May 31, 2006

Employers Asked to Turn Blind Eye On Day Of Ukraine’s World Cup Performance

KIEV, Ukraine -- The Ukrainian government asked employers to adjust the working day on June 14 so that Ukrainians can watch their national soccer team make its debut in the World Cup, AP reports.

Prime Minister Yury Yekhanurov

“On June 14 at 4 p.m., we expect an epidemic of unexplained illness to appear in Ukraine,” Prime Minister Yury Yekhanurov said Wednesday.

Ukraine’s appearance in the World Cup is a source of pride for the ex-Soviet republic, whose team is led by AC Milan’s Andriy Shevchenko — one of the world’s top strikers.

Much of the country’s 47 million population is expected to watch a TV broadcast of the team’s opening game.

Yekhanurov, noting that the game starts near the end of the working day, said the government recommended that employers start the day earlier or bring in televisions and allow a break.

“I want to say this so that all our players know that the government and all of the people will be supporting you,” Yekhanurov said at a cabinet session.

Ukraine is playing in Group H, which also includes Tunisia and Saudi Arabia.

Shevchenko, who hurt his knee on May 7, is not playing in the warm-ups, but is expected to recover in time for the opener against Spain.

Source: MosNews

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Ukraine-Russia Relations Have Never Been Worse: Russian Ambassador

KIEV, Ukraine -- Russian ambassador Viktor Chernomyrdin delivered a strong message, on Tuesday, to Ukrainian President Viktor Yushchenko.


Russian Ambassador Viktor Chernomyrdin

He pointed to a direct relationship between Ukraine's possible NATO membership and higher energy prices.

He said that if Ukraine joins the Euro Atlantic alliance, Russia will reconsider its strategic partnership with Ukraine.

He said relations between the two countries have never been worse.

Chernomyrdin cited NATO, the Black Sea Fleet in Crimea, the conflict between Moldova and Trans-Dniester and the GUAM organization as issues that aggravate Russia most in its bilateral relations.

Source: Channel 5 TV

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Opposition Parties Call Arrival Of U.S. Ship A Threat To Ukraine's Sovereignty

KIEV, Ukraine -- Pro-Russian opposition parties on Tuesday railed against President Viktor Yushchenko's government for allowing a U.S. naval ship to enter a Ukrainian port, calling it a threat to the nation.


Kremlin sympathizer Natalya Vitrenko

The USS Advantage's arrival in the Crimean port of Feodosiya this weekend sparked protests and left the government scrambling to explain that it was coming as part of NATO's Partnership for Peace program and was only bringing equipment for exercises this summer in the Black Sea.

Yushchenko wants this ex-Soviet republic to join NATO, but the military alliance remains deeply unpopular here, particularly in the largely Russian-speaking east and south.

Natalya Vitrenko, leader of a political party that is influential on the Black Sea peninsula of Crimea, accused Yushchenko of ignoring legislation that requires parliamentary approval before any foreign military troops or ships enter Ukrainian territory.

She also noted that parliament earlier this year voted to bar foreign troops from participating in military exercises in Ukraine.

"On May 27, an act of state betrayal was committed by Ukraine's top officials," Vitrenko said.

The larger pro-Russian Party of the Regions called the ship's arrival "an attempt to infringe on Ukraine's sovereignty and national security" and urged punishment of those who approved it. The opposition Social Democratic Party (United) also slammed the government.

Navy spokesman Mykola Nedohipchenko said the ship came to participate in Sea Breeze peacekeeping exercises, which Ukraine has been conducting annually since 1997. He said it delivered construction facilities to help Ukrainians update their training ground, bulldozers, lifting cranes, and medicine.

The exercises are to take place in July-August for up to 45 days and involve 17 countries, including the United States.

"The protest is just a political game aimed to cause unrest in Crimea," Nedohipchenko said.

Crimea has a large ethnic Russian population and its main port, Sevastopol - 160 kilometers (100 miles) from Feodosia - is home to both the Russian and Ukrainian Black Sea fleets.

The Defense Ministry said it will ask parliament to approve the training when lawmakers reconvene next month.

The U.S. ship left the port a day after it arrived. Vitrenko, who is known for her anti-American stance, accused NATO of plotting to construct a special permanent military base in Crimea. Ukraine's NATO office did not return a phone call seeking comment.

Source: AP

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Anti-NATO Bomb Threat Against US Soldiers In Ukraine Port

KIEV, Ukraine -- An anonymous bomb threat was called in against US soldiers in a Ukrainian port city on Tuesday as anti-NATO protests by local residents continued.


A Ukrainian bomb squad team inspected a dormitory housing 120 US service personnel in the Crimean provincial capital Simferopol after an unidentified man informed authorities of an intention to detonate the device.

The caller made no demands but said NATO troops should stay out of Ukraine, according to a police report.

Ukrainian sappers searched the building and found no explosives. No US service personnel were injured, the Interfax news agency reported.

The false alarm came a day after thousands of Ukrainian demonstrators opposed the unloading of a NATO cargo ship in the Crimean port Feodosia, Sehodnia newspaper reported on Tuesday.

Marchers erected a barricade at the port's entrance after the ship, chartered by the Atlantic alliance, arrived began discharging military materials.

The vehicles and supplies had been intended for use in joint training exercises between NATO and Ukrainian army troops next month.

The demonstrators, most linked with a fringe Ukrainian political party supporting Marxism, told reporters the planned exercise violated Ukraine's constitution, which forbids the presence of foreign troops on Ukrainian soil without express permission of parliament.

Marchers displayed signs saying 'NATO Out!,' 'No to NATO!' and 'Guys, we don't need (vulgar expletive) NATO in our land!'

Ukrainian special forces armed with automatic rifles and silencers had deployed to the site by Tuesday evening. There was no physical conflict between the soldiers and the crowd.

Drivers of lorries hired to carry the NATO materials to the training site however refused to move past the roadblock, in part because some protestors threatened to damage the lorry tyres if the vehicles shifted from a parking lot near the ship.

Ukraine has conducted joint training exercises with NATO troops for more than a decade. This year parliamentary permission has not been forthcoming, because Ukraine's newly-elected legislature has been stymied for two months trying to form a working majority.

Ukrainian constitutional scholars do not agree as to whether the Ukrainian President may allow foreign troops in the country, if parliament is not in session.

The annual training event, called Sea Breeze, sometimes involves dozens of warships and thousands of military personnel from nations throughout the Black Sea basin. Usually the soldiers practise a multi-national response to a regional crisis or natural disaster.

Protest leader Natalia Vitrenko, a Ukrainian politician known for her outspoken support of Leninism and close links to the Kremlin, in a speech predicted the Feodosia protest was just the beginning.

Anti-NATO protestors have targeted a training exercise scheduled between the Ukrainian and British air forces later this summer in Mikolaev, and preparations are in progress for demonstrators to lie down on runways to prevent their use by combat aircraft, she said.

Ukraine's government has repeatedly declared its intention to join NATO as soon as possible, although it has dragged its feet on military reforms necessary to allow the former Soviet republic to join the alliance.

Russia bitterly opposes Ukraine's sometimes nebulous NATO aspirations.

The majority of Ukrainians are against joining NATO, because of fears Ukrainian soldiers might be sent to Afghanistan and Iraq, and because of NATO's 1999 airstrikes against Serbia, a traditional Ukrainian ally.

Source: Deutsche Presse-Agentur

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Tuesday, May 30, 2006

Rates Of Neural Tube Defects In Ukraine Highest

KIEV, Ukraine -- Recently, the Nuclear Energy Agency noted that in Ukraine the impact of the Chornobyl disaster is profound and that “the concern of people for their own health is only overshadowed by the concern for the health of their children and grandchildren”.


Chernobyl reactor number 4

According to the press-release, sent to UNIAN by Dr. W. Wertelecki, chief of the Supervisory Council of OMNI-Net Ukraine International Charitable Organization, during the past twenty years, this has been the heaviest burden imposed by the disaster.

The dismissive term “radiophobia”, often used by international experts, is not appropriate in regards to the profound concerns in Ukraine about the Chornobyl threat to the genome of the population.

According to the press-release, following the Chornobyl disaster, it was determined that the areas most heavily contaminated by ionizing radiation lie principally in Northwest Ukraine. The distribution of the contamination is complex and contamination maps are very approximate.

Direct measurements taken from Ukrainian population showed that 65 percent of internal radiation was from Caesium (Cs-137) ingested with food. It was also established that levels of ionizing radiation accrued by rural populations were significantly higher than urban populations, mostly due to weaker control of sources of food.

In a paper submitted by Dr. J. Neel, a world renown geneticist who pioneered many studies of the Hiroshima/Nagasaki bomb survivors and their children, he stated “if we had to do such studies over again, the most obvious change in the research design would be to include studies at the DNA level from the outset”.

He also recommended that the frequency of congenital malformations, stillbirths, death rates of live born children, and growth and development of surviving children should be investigated.

In 1999, through a cooperative agreement with the USAID, we initiated the slow and complicated process of establishing BD surveillance systems in Ukraine. After the USAID component ended in 2005, BD surveillance continues by the OMNI-Net, an international not-for-profit Ukrainian organization.

The OMNI-Net BD surveillance system began formal data collection in 2000 in the Northwest region of Ukraine (Rivne and Volyn oblasts). Nine raions (counties) of the Northwest region have been designated as impacted by Chornobyl, six are in Rivne and three are in the Volyn oblast.

In 2002, we noted elevated rates of spina bifida, anencephaly and encephaloceles, collectively referred to as neural tube defects (NTD). In 2004, we reported a prevalence of NTD in Northwest Ukraine of 21 per 10 000 live births, nearly 4 times what it would have been were the population consuming enough folic acid.

Data collected during 2002-2004 and preliminary data from 2005 confirmed ongoing epidemic rates of NTD in Ukraine. High prevalence rates persist in the Northwest and were also found in the Central and South regions of Ukraine.

The lowest prevalence rate, 10.7 per 10 000 live births, was in the South region (Kherson oblast and the Autonomous Republic of Crimea). Nonetheless this rate is three times as high as in many other countries, including the U.S.

In partnership with the Ukrainian Academy of Medical Sciences, the Ministry of Health of Belarus and the WHO Regional Office for Europe, conferences were held in Minsk, Belarus and Rome, Italy concerned with “Folic acid: from research to public health practice”.

The participating experts calculated that folic acid flour fortification at the level 0.42 mg/100g flour would reduce annual NTD pregnancies in Ukraine from 884 to 460.

In 2006, there was sufficient data to permit analysis of NTD prevalence rates in raions designated as impacted and not impacted by Chornobyl. The raions impacted by Chornobyl belong to a region called Polissia where the NTD rates were the highest we found in Ukraine.

Population based BD surveillance systems, such as the OMNI-Net, are designed to promote the prevention and better care of children with malformations, mental subnormality and other developmental disabilities. In view that most BD are due to unknown causes, surveillance systems are also designed to promote research.

One strategy, among others, is to monitor the occurrence of very rare malformations. In this regard, between 2000 and 2005 we noted five instances of conjoined twins in the Rivne oblast. Notably, one of the twins had spina bifida.

For the period 2000-2005, there were 81 909 live births in the Rivne oblast. In an informal review of ten large BD surveillance systems, each monitoring at least one million pregnancies, none reported more than one instance of conjoined twins.

The noted high prevalence of NTD in Polissia most likely reflects dietary folate deficiencies, perhaps magnified by significant alcohol consumption. Whether low dose chronic ionizing radiation is an additional risk factor remains speculative.

Deficiencies of folate result in higher prevalence rates of NTD and other birth defects. Folate deficiencies are also associated with elevated plasma homocysteine, a risk factor for cardiovascular disease, and perhaps higher risks for breast cancer and colon cancer.

The impact of alcohol on a developing fetus often results in serious BD and mental subnormality. Our studies in Ukraine show that 10 percent of children in Ukrainian orphanages have BD suggestive of prenatal exposure to alcohol. Furthermore, alcohol also impairs folate absorption and chronic alcohol use decreases liver stores of folates.

The children of Ukraine bore the brunt of Chornobyl and continue to bear a heavy daily burden of BD because the Ukrainian government has not implemented mandatory folic acid fortification, as done by some other 40 countries of the world.

The cost of each day of delay is the life of an infant. Regardless of future investigations, we urge Ukrainian authorities to immediately institute an intensive folic acid supplementation program in Polissia for all women of reproductive age.

Further molecular, genetic, folic acid, alcohol and epidemiologic studies by an international consortium are, in our view, essential. The results are likely to elucidate new facts important to the Ukrainian public and contribute to a better understanding of the complexities of the causes of BD.

Ukraine has, perhaps more than most countries, much to gain from an established and experienced BD surveillance system upholding international standards. The OMNI-Net BD surveillance system can facilitate the immediate introduction of folic acid supplementation, rapidly show the impact of the introduction of flour fortified with folic acid and facilitate studies of low dose chronic ionizing radiation effects on human reproduction. In the final analysis, the resolution of the questions discussed, are bioethical by nature and for Ukrainian authorities to resolve.

We want to emphasize that this report reflects the high competence of Ukrainian professionals engaged by BD oblast surveillance systems. Furthermore, these achievements were also made possible by the constant support of public health care leaders, as well as the directors of medical facilities where OMNI-Centers are located.

Source: UNIAN

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Ukraine's Century-Long Quest

KIEV, Ukraine -- Ukraine will finally get the chance to appear in a World Cup for the first time, in Germany, despite a proud footballing history that stretches back over a century.


The first documented evidence of introduction to the game comes from the western Ukrainian city Lviv, where the first football match between the hosts and the visitors Krakow was held on July 14, 1894.

It was a sudden-death match, held at a newly built 7,000-seat stadium in Stryisky Park, which ended in the sixth minute when Wlodzimierz Gatynsky of the host team netted the winning goal.

By the beginning of the 20th century, football was rapidly becoming popular in most regions of Ukraine, which was then part of the Russian empire.

Dozens of teams and leagues were established in almost every Ukrainian city due in large part to the influence of the British companies which were doing business in the region and are credited with popularising the game.

The visit of Turkish side Fenerbahce to Odessa just before the outbreak of World War I opened the international football era at Ukraine.

The guests played three matches in Odessa and two games in the neighbouring town of Mykolaiv, attracting thousands of fans to the overpacked venues.

This initial flourishing of the game however was interrupted by the war and the 1917 Bolshevik revolution, along with the civil war that followed it, which conspired to bring sporting life in Ukraine to a virtual standstill for almost six years.

The revival of the game in Soviet Ukraine in the early 1920s was marked by domination of the team from the republic's new capital - Kharkiv, which won seven Ukrainian titles between 1921 and 1931.

In 1934, Ukraine's capital was moved to Kiev, whose team quickly clinched the leading position in Ukrainian football. Dynamo Kiev became the flagship side of Ukraine's football and was, in essence, the national squad.

Dynamo was the only non-Russian team in the top division of the Soviet league, which was set up in 1936. Kiev managed to clinch the silver medals of the first domestic championship, which Dynamo Moscow won.

However, it took almost two decades for Dynamo to clinch their first serious national success in the Soviet Union when, in 1954, the squad won the Soviet Cup, defeating Spartak Yerevan 2-1 in the final match. Shakhtar Donetsk repeated Kiev's success in 1961-62, winning two Soviet Cups in a row, while Dynamo Kiev became the first non-Moscow side to win the Soviet league in 1961.

In total during the Soviet era Ukrainian teams won 16 domestic titles and 16 Soviet Cups with Dynamo Kiev winning the European Cup Winners' Cup twice in 1975 and 1986 and the European Super Cup in 1975 in a two-leg showdown with Bayern Munich.

That run ended abruptly however in 1991 when the collapse of the Soviet Union plunged football in Ukraine - now an independent state - into severe crisis.

With Ukraine yet to form a FIFA-affiliated national association, several of the countries top players elected to play for Russia as it was designated the official successor of the USSR.

Almost as damagingly, Ukrainian league clubs faced hard times because of cash shortages, which also forced many young, talented and skilled footballers to seek their fortunes abroad.

To complete the set of disasters, the country's flagship side Dynamo Kiev was thrown out of the Champions' League in 1995 after the Spanish referee Antonio Lopez Nieto accused the club officials of a bribery attempt.

However, the years that followed have seen a steady revival of the country's football and in 1996 Dynamo Kiev returned to the European football stage after UEFA lifted the ban.

Meanwhile, thoughtful planning and huge investment by Ukrainian billionaire businessman Rinat Akhmetov, the president of Shakhtar Donetsk, has taken his club to the top of the domestic table.

The government also took part in developing the game, making football an obligatory activity in schools.

A special football textbook was written for the schoolboys, while more than 550 football pitches were constructed around the entire country and over one million footballs were bought to fit the demands of the programme.

Source: AFP

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Monday, May 29, 2006

New Life, New Identity

PRAGUE, Czech Republic -- Russia’s aggressive geopolitical policies have helped revive a moribund regional organization, GUAM, comprising states interested in reducing their economic dependence on Moscow.


The leaders of the four member states – Georgia, Ukraine, Azerbaijan, and Moldova – gathered on 23 May in the Ukrainian capital Kyiv to reanimate the long-troubled organization.

In a move designed to bury its troubled legacy, summit participants agreed to rename the group the Organization for Democracy and Economic Development (ODED)-GUAM.

The new name underscores the differences that each of the four states have with Russia. Participants at the Kyiv summit stated that they intend to use ODED as a vehicle for accelerated integration into Western economic and security structures.

Moldovan President Vladimir Voronin, in comments distributed by his press service, sought to draw a distinct line between ODED member states and Moscow, saying the group aimed to become a "hotbed of European standards" in the former Soviet Union.

At a 23 May news conference, Ukrainian President Viktor Yushchenko emphasized the group’s Western orientation. "We are linked by common values [and] common goals: the aspiration to occupy a respectable place in a united Europe," Yushchenko said.

The organization has existed since 1997, largely in name only, as repeated attempts to undertake substantive regional economic cooperation never got off the ground. When a fifth member, Uzbekistan, withdrew from the organization in 2005, it appeared that GUAM was destined to end up a failed experiment.

Given its history, skepticism continues to cloud the group’s immediate future. But the leaders of member states seem more optimistic than ever about its prospects. "I am convinced that our organization, which is assuming a new format, will announce itself loudly in the international arena," the Interfax-Ukraine news agency quoted Azeri President Ilham Aliev as saying.

Lending additional weight to the belief that the ODED-GUAM may have turned a corner was a report, distributed 24 May by the Azeri news agency Trend, saying that Romania was intent on joining the organization. Romania – which is already a NATO member, as well as a candidate for EU accession – has a strong cultural connection with Moldova.

Political experts believe that Russia’s heavy-handed behavior towards its former Soviet neighbors played a major role in prompting renewed interest in ODED-GUAM. Since the start of the year, Russian leaders have feuded with three of the four member states, with Moscow demonstrating a willingness to use coercive measures to impose its geopolitical agenda on the region.

Georgia has the tensest relations with Russia, which has introduced trade sanctions against Tbilisi, including a ban on the import of Georgian wine. In early 2006, Ukraine and Russia engaged in a bitter row over gas imports. Meanwhile, the Kremlin has rankled Moldovan leaders with its continuing support for Transdniester separatists.

The only ODED-GUAM state not to have a severely strained relationship with Moscow is Azerbaijan. However, Russia’s recent energy moves have exhibited an intent hostile to Azerbaijan’s new economic lifeline – the Baku-Tbilisi-Ceyhan (BTC) pipeline.

Aliev indicated that ODED leaders see the group as a means to defend against Russian bullying. The Azeri leader appeared to take a swipe at Russia when he mentioned that those responsible for violating the territorial integrity of three of the four ODED members "have been subjected to neither international nor public condemnation."

He went on to say that the "energy-factor" would drive ODED decision-making. Yushchenko indicated that one of the ODED’s main aims was challenging Moscow’s energy-export dominance. "Azerbaijan has unique oil producing capabilities, while Ukraine has unique oil transit facilities. Why don’t we unite them?"

A free-trade agreement, signed by the member states on 23 May, is expected to give the group the cohesion that has been lacking. "I am confident that the next stage of our joint work will be harmonizing our relations concerning the unification of border and customs services," Yushchenko said.

The Ukrainian president went on to recognize the difficulty of unifying trade and tariff policies, but he stressed that "the four presidents have the will to solve" logistical issues concerning ODED development.

In a sign of the strong sense of solidarity now binding ODED states, billboards were put up in Kyiv in advance of the summit urging Ukrainians to buy Georgian wine that had been "banned in the Russian Federation."

In Azerbaijan, some political analysts expressed surprise that the Aliev administration, which has been assailed by human-rights organizations for restricting the individual rights of Azeri citizens, would join an organization that holds democratization to be one of its major aims.

“[The administration] is against democratization in the country because democracy undermines its authority,” said Zardusht Alizade, independent political analyst based in Baku. “Azerbaijan is there because the United States is backing this project [ODED-GUAM].” Eldar Namazov, the president of the Public Forum for Azerbaijan, suggested that Azeri leaders would probably stress the economic development aspect of the new organization.

Rasim Musabekov, another Baku-based political analyst, believed that ODED-GUAM may well serve as a transition mechanism to assist member states in Euro-Atlantic integration efforts. Musabekov downplayed the group’s potential for economic development, saying that “the volume of trade between Ukraine and Russia exceeds $20 billion, while turnover with GUAM states is roughly $1 billion. So this alliance will fail to impose an alternative to the trade with Russia.

“Let us hope that [the] ‘democracy’ word in the name of [the] organization will inspire real processes in this direction,” Musabekov added.

Russian analysts do not appear to be concerned about ODED’s creation. Political analyst Alexei Makarkin, in a commentary published on 24 May by the Russian state-run RIA Novosti news agency, suggested that it was unlikely that the group’s grand energy-export designs would come to fruition. "There is a long distance between a declaration of intent and practical energy projects," he wrote.

Source: Transitions Online

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Lukashenko Says Will Ban Flights Over Belarus In Response To Sanctions

MINSK, Belarus -- President Alexander Lukashenko suggested that he might ban Western overflights over Belarus in response to sanctions against his former Soviet state in connection with his disputed re-election, the Reuters news agency reported.


Europe's last Dictator Lukashenko

“Let them fly over the Baltic states or Ukraine. We ought to close the main route through,” Lukashenko told parliament in his annual state of the nation address. “Perhaps we will lose something here. But we must show them that we are proud people.”

The United States and European Union have barred entry to Lukashenko and other officials in response to what they say was rigging in Lukashenko’s March re-election.

Lukashenko’s latest comment was almost certainly in response to last month’s refusal by Canada and the United States to refuel a plane carrying Belarus’s prime minister to and from Cuba.

Source: MosNews

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10 Injured When Elevator Plummets 23 Floors In Ukraine

KIEV, Ukraine -- Twenty people in Ukraine have survived a 23-floor plunge in an elevator at the Transport Ministry.

Transport Ministry building where accident occured

Officials say ten were injured and eight are hospitalized.

It's unclear what caused the lift to fail, but an Emergency Situations Ministry official says a system of emergency brakes switched on automatically when the lift hit the 11th floor, slowing its descent.

Many elevators in former Soviet republics suffer from outdated technology and infrequent repairs.

Source: AP

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Residents In Feodosia Protest Arrival Of NATO Warship

KIEV, Ukraine -- The arrival of a U.S. naval ship with military hardware and marines has sparked off protests in Feodosia, Crimea.


Feodosia port at night

Inter TV channel reported Sunday evening that the unloading of vehicles, arms and construction equipment from the military transport ship Advantage began at the seaport of Feodosia.

Local residents staged an impromptu rally at the gate of the port protesting the arrival of the naval vessel without the permission of the national parliament.

They stressed that the seaport in Feodosia is commercial and foreign naval ships are not allowed to call on it. They said they had sent a letter to Ukrainian President Viktor Yushchenko.

Ukrainian Defense Ministry spokesman Andryi Lysenko said the Americans had arrived to prepare the Sea Breeze-2006 exercises to which 40 countries have been invited.

He said the ministry regards as a temporary problem the absence of permission from parliament for the presence of the Americans.

Source: Interfax

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Gas Chief Unveils Plan To Upgrade Titanium Plant

KIEV, Ukraine -- Dmytro Firtash, the Ukrainian tycoon who last month revealed his ownership of RosUkrEnergo, the natural gas trader, has taken a further step out of the shadows by revealing his other holdings, including a titanium plant in Ukraine.


Crimean Titanium

Robert Shetler Jones, Mr Firtash’s British partner, told the Financial Times in an interview that he was working on a plan to consolidate Mr Firtash’s holdings in the chemicals sector, which include Crimean Titan, Crimean Soda and the Rivneazot, Nitrofert and Tajikazot fertiliser plants in Ukraine, Estonia and Tajikistan, respectively.

Both Crimean plants are currently owned by RSJ Erste, a German company in which Mr Shetler Jones is the sole shareholder. But he said RSJ was an “interim structure” and after the consolidation Mr Firtash would emerge as main owner.

Mr Shetler Jones said the consolidation of Mr Firtash’s chemicals companies was aimed primarily at attracting financing for an upgrade of Crimean Titan to enable it to produce a broader range of titanium and titanium alloy products for the aviation, space and defence industries. He said it would take up to five years at a cost of $500m-$800m (€392m-€628m) to upgrade the plant, which produces titanium dioxide for paint production.

“One of the options we look at very strongly is the introduction of strategic partners from the west,” Mr Shetler Jones said.

By revealing his ownership of the plants and his ambitions for Crimean Titan, Mr Firtash is raising the stakes in his effort to gain acceptance both in the west and in Ukraine.

Whether his efforts succeed will depend partly on the outcome of negotiations in Ukraine on a new government. The leading candidate to take over as prime minister, former prime minister Yulia Tymoshenko, has been an outspoken critic of RosUkrEnergo and has vowed to cancel a deal with Russia in January that made RosUkrEnergo Ukraine’s sole supplier of imported gas.

Mr Firtash’s plans for Crimean Titan come as Russia’s government is moving to rein in VSMPO-Avisma, a Russian titanium producer. Russia’s powerful state arms-export company, Rosoboronexport, wants to secure supplies of titanium for Russia’s defence industry and has pressed the plant’s owners to cede control.

“What we would like to do is create additional product to fill the supply gap but one that is also not Russian-based,” Mr Shetler Jones said.

Mr Shetler Jones said Mr Firtash also owned other companies in the gas industry including Russia’s Zangas, a pipelines builder, and an Austrian sister company also called Zangas, which recently built a stretch of pipeline for Turkmenistan in exchange for gas.

Separately, officials in Russia’s southern Astrakhan region announced last week that Mr Firtash had taken control of an undeveloped gas field by acquiring control of the Astrakhan Oil and Gas Company.

Source: Financial Times

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Sunday, May 28, 2006

Ukraine Hammers Costa Rica 4-0 In World Cup Warm-Up

KIEV, Ukraine -- Ukraine hammered Costa Rica 4-0 in a World Cup warm- up match Sunday, showing that they can score without Andriy Shevchenko and give the visitors plenty of headaches.


Danny Fonseca of Costa Rica challenges Maksym Kalynychenko of Ukraine (L) during their friendly soccer match in Kiev May 28, 2006. Ukraine won 4-0.

Serhiy Nazarenko, Andriy Vorobey and Maksim Kalinichenko settled the matter in Kiev in 11 minutes between the 27th and 38th and Oleksiy Byelik completed the rout in the 56th.

The victory will boost Ukraine's morale as the team heads into its World Cup debut at the June 9-July 9 finals where the Group H opponents are Spain, Tunisia and Saudi Arabia.

The star forward Shevchenko is expected to have recovered from his knee injury by then and attacking partner Serhiy Rebrov was not fit on Sunday either.

Costa Rica, meanwhile, need to improve quickly as the eyes of the world will be on the Central American team in the June 9 World Cup opener against hosts Germany. Poland and Ecuador are the other two teams in group A.

Ecuador were due to play non-qualifiers Macedonia later Sunday in Madrid. Croatia and Iran met in a duel of two World Cup teams in Osijek and the United States were due to host Latvia in East Hartford.

Source: DPA

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Russian TV Sees Revitalized GUAM As Possible Threat To CIS

LONDON, UK -- The GUAM summit which brought together the leaders of Georgia, Ukraine, Azerbaijan and Moldova in Kiev was generally seen by Russian TV channels as an attempt to revitalize the organization so it would become a Russia-free alternative to the CIS.


Presidents (L-R) Vladimir Voronin of Modova, Ilham Aliyev of Azerbaijan, Viktor Yushchenko of Ukraine and Mikhail Saakashvili of Georgia raise their arms during a photo call at the GUAM summit in Kiev

Gazprom's NTV played down the threat to the CIS, while Moscow-government-owned Centre TV saw the renewed GUAM as potentially viable, particularly if plans for a Caspian-EU energy corridor came to fruition.

State channel Rossiya (RTV) viewed the organization as a US-funded attempt to counterbalance Russia's influence in the former Soviet Union area.

Although the Russian Foreign Ministry issued statements saying it did not view GUAM as an anti-Russian coalition, prime-time TV news reports on the summit generally took the view that an element of anti-Russian feeling was involved.

NTV Segodnya news programme on 23 May raised concerns about the summit's pro-Western focus, but then played down the possibility the organization would pose a threat to the CIS.

"In Kiev today there was criticism of the CIS and calls to move closer to NATO and the European Union", presenter Aleksey Pivovarov said.

The ensuing report featured comments by Ukrainian President Viktor Yushchenko that full European integration was GUAM's main aim, while correspondent Roman Sobol cited a survey that showed that more than 60 per cent of Kiev residents believed that GUAM was an anti-Russian organization.

However, Sobol went on to say that the majority of those involved in the summit did not view the end of the CIS as imminent. "Although GUAM is called an alternative CIS, here they prefer somewhat less strident wording: not a replacement for the CIS but in parallel with the CIS,"

Sobol said, pointing out that only Georgian President Mikheil Saakashvili had categorically expressed a wish to leave the commonwealth.

The report suggested that the four member states were fundamentally incompatible and hinted that this may well hinder the organization's progress. "The Georgian and Ukrainian president's are old friends and leaders of colour revolutions.

But often the question arises: what links them to the Moldovan Communist Voronin and Azerbaijani leader Aliyev?" Sobol asked. Centre TV the same day also asked similar questions about the viability of GUAM, but was less quick to dismiss the possibility the organization could be successful.

Introducing the report presenter Nikolay Petrov highlighted the fundamental differences between the GUAM member states. "GUAM is now called the Organization for Democracy and Economic Development.

True, it is not entirely clear exactly what Communist Vladimir Voronin and crown prince Ilham Aliyev have to do with democracy," he said pointedly.

Correspondent Aleksandr Ogorodnikov noted that "it seems shared grudges against Russia unite the four presidents more closely than their common goals", but added that Aliyev had made a point of stressing Azerbaijan's good relations with Russia.

However, Ogorodnikov warned that if GUAM's proposed Caspian-EU energy corridor "which threatens to take the bread from Russia's mouth" became a reality, then conflict between Moscow and Baku would be unavoidable.

Nevertheless, the report saw the energy plans and the agreements on creating of a free-trade zone as a good basis for the future of "GUAM mark-II", especially as it has US support.

"So, GUAM, which nearly disintegrated six years ago, now seems to have a real chance of success," Ogorodnikov said. He went on to suggest that expansion to include Poland, Bulgaria, Romania and Lithuania might even be on the cards.

RTV's Vesti on 23 May saw the plans for an energy corridor as the main aim of GUAM, which it suggested was nothing more than a US foreign policy tool.

Presenter Mikhail Antonov introduced the report with claims that the organization was funded by the USA. "GUAM's main task is to create a counterbalance to the CIS and provide an energy corridor from the Caspian to Europe, bypassing Russia.

The people who thought up this plan and are willing to finance it can only be found far beyond the boundaries of the former Soviet Union," he said. He added that because of this the abbreviation GUAM is particularly apt, as Guam is also the name of the American military base "from which the USA put political and military pressure on those it disliked".

The ensuing video report featured comments by political analysts which supported this view of the USA's role. Mikhail Pogrebinskiy, director of the Kiev-based Centre for Policy and Conflict Research, described GUAM as "an instrument for implementing US policy in the former Soviet area".

Director of the Political Research Institute Sergey Markov insisted that the organization was entirely dependent on US funds. In a fuller version of his comments, broadcast in the later Vesti Plyus bulletin, Markov described GUAM as an attempt "to shut the Russian bear up in its Siberian lair and isolate Russia from Europe".

Source: BBC Monitoring Service

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Ukraine Players Unfit For Finals Says Coach Blokhin

KIEV, Ukraine -- Ukrainian national coach Oleg Blokhin told the press that only 16 players in his 23-man squad were in top form and ready to play at the forthcoming World Cup.


Ukrainian national coach Oleg Blokhin told the press that only 16 players in his 23-man squad were in top form and ready to play at the forthcoming World Cup, with star striker Andrei Shevchenko one of those suffering from injury.

"Some of my players including Andrei Shevchenko and Sergei Rebrov are currently trying to overcome injuries," Blokhin told the press Saturday.

"We still have time to prepare for the tournament but so far the situation is not really optimistic. I hope that nobody else will suffer any injuries in Sunday's friendly with Costa Rica."

Blokhin also said that he still failed to finalise the name of a player to replace Dynamo Kiev full back Sergei Fedorov, who has an injured thigh and was taken out of the World Cup squad.

"Probably it will be somebody from our under-21 squad but I still cannot decide who," Ukraine's manager said. "Besides they may be exhausted following a very tough match with Italy."

However the coach said that the shortage of skilled players in top form should not decrease the level of competition in his team.

"I have warned my players that still nobody was guaranteed of a place in my team," Blokhin added. "I promise that in Germany only players who are 100 percent fit will play."

Source: World Soccer News

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Saturday, May 27, 2006

Yulia Tymoshenko AIMS To Be Ukraine’s Answer To Thatcher

LONDON, UK -- Any day now, depending on the outcome of the coalition talks, Yulia Tymoshenko will return as Ukraine’s prime minister or emerge as its power broker.


Ukraine's beautiful "Iron Lady"

When she was interviewed in London, she was in high spirits and revealed she thinks highly of Margaret Thatcher. “I have Margaret Thatcher as my model”, she says.

This she presumably hopes will help reassure investors. When she was prime minister, Tymoshenko demanded a review of the privatisations carried out in dodgy circumstances during the reign of Leonid Kuchma, the former president.

At the time this was interpreted as an attack on private property. The new Mrs T says her policy was misunderstood.

“As a result of the severe political struggle between the old system and the new Orange team, the mass media published lots of myths about re-privatisations, nationalisation and price-fixing.

All of these things I would like to say are absurd, we want to pursue none of these things,” she says.

Any disputes over the legitimacy of past privatisations – some were at discounted prices to friends of the previous regime ­– will be determined by the courts, she says.

“Before the Orange Revolution we had an absolutely post-Soviet state with all the post-Soviet rules,” she says. There was “corruption, clans, unpredictability, helplessness, absence of an effective courts system, absolute bias and a lack of independence of the mass media.

To understand the importance of the Orange Revolution one needs to have lived in that period. The Orange Revolution has changed Ukraine absolutely.”

She wants to restart free-­market reforms. “My government managed to abolish more than 5,000 regulatory acts which were creating terrible conditions for corruption in businesses. Under my government, the only transparent, honest privatisation took place.

We would like to continue these policies.” She assured me she will continue to privatise Ukraine’s strategic industries, starting with the communications sector, slash duties and tariffs; remove barriers to foreign banks and insurance companies and reform the judiciary.

Earlier this year, to punish the country for the Orange Revolution, Russian President Vladimir Putin hiked the price Ukraine pays for gas; he briefly switched off supplies, which also affected Europe.

“Ukraine respects Russia as its neighbour, as a political partner, but the question of energy independence for Ukraine is issue number one. The reason why it hasn’t been solved is that there was no political will from political authorities.”

She wants to attract foreign investors to help rebuild the oil and gas sectors, to integrate Ukraine’s electricity network into Europe’s, to burn more coal and less gas, build new pipe­lines and make nuclear power stations safer.

“The reason why I came to London before the government is being formed is to meet world investors to organise this dialogue.”

Talks between Ukraine’s parties have been going on since the elections on 26 March. A new Orange coalition is most likely. It would be led by the Tymoshenko bloc and include Viktor Yushchenko’s Our Ukraine and the Socialists.

“For the second time, the population has voted for a European orientation, the European vector of policy, for integration in world markets,” she says.

Tymoshenko acknowledges the long negotiations “could look to some like instability or disorder but this I can assure you is not the case. All this testifies that a rapid and intense transformation is going on.

Ukraine today is the Poland or the Czech Republic of the 1990s. All ways are open to us.”

Source: The Business Online

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Ukraine’s Elite Help Cigar Business Thrive

KIEV, Ukraine -- As cigar smoking increasingly becomes part of the glamorous lifestyle led by Ukraine’s wealthy, top cigar brands, cigar clubs and specialized magazines are attracting greater consumer interest to satisfy the market’s growing demand.


Davidoff cigars

One company eager to take advantage of Ukraine’s growing cigar market is Oettinger Imex AG, a Swiss-based company that owns the Davidoff brand and offers homemade tobacco and tobacco-related products.

The Davidoff boutique in Kyiv, a franchise that is owned by a Ukrainian businessman, became the first mono-brand cigar shop in Ukraine’s capital last year.

Last week, the boutique marked its official opening with a lavish celebration, attracting more than 300 VIP guests, including Sonia Davidoff, the 73-year-old daughter of the company’s Ukrainian-born founder Zino Davidoff.

“We are here for the same reason that Mercedes and Bentley are here,” said Raymond Scheurer, a member of Davidoff’s executive board, who arrived at the event along with Sonia Davidoff from Switzerland.

“If there is a market for those brands, there is a market for us as well,” said Scheurer.

Viktoria Selantyeva, deputy editor of Cigar Clan magazine in Ukraine, said the Ukrainian version of the specialized Russian publication on cigars was launched last year because “the audience appeared to be there.”

“Our audience consists of prosperous people with a high consumer culture,” said Selantyeva of the magazine’s readership.

“These are the people who can afford, and are already accustomed to, choosing the best – whether it’s clothing, accessories, cars, art, tobacco products or glossy magazines,” said Selantyeva.

According to her, Cigar Clan’s readers are successful business owners and top managers aged 26-55, who, opting for cigars, display a concern for their image and a taste for the pleasure of tobacco smoking.

Although cigar smoking is not a novelty for Ukraine - Cuban cigars were sold in shops in Soviet times – true cigar aficionados were few in number a decade ago, according to Jean Smotrich, marketing director of Cigar House Fortuna.

Fortuna was among the first firms to import handmade cigars to Ukraine at the end of the 1990s and promote the cigar smoking culture in the country, he said.

“It is only now that most big Ukrainian cities have cigar clubs where people can get closer to the cigar smoking ritual and its philosophy,” said Smotrich, who added that his company partners with existing cigar clubs in Kyiv, Odessa and Lviv, supplying them with cigars and accessories.

Cigars are never smoked in a hurry, Smotrich explained. They are enjoyed in a relaxed state of mind and, ideally, are combined with a friendly chat, coffee, and expensive alcohol, traditionally cognac, he said.

“Handmade cigars are a product for people with status, and oriented toward a very narrow segment of the market,” Smotrich said, adding that about 1 percent of all smokers in Ukraine prefer cigars over cigarettes, while worldwide statistics put that number at 3 to 5 percent.

The challenge of the cigar business in Ukraine, said Smotrich, has been the need to invest in the development of the cigar smoking culture and nurture potential customers.

“It’s a huge investment – in special equipment and the development of standards for product presentation, in teaching personnel, in development of marketing strategies,” said Smotrich, adding that Fortuna has worked on creating cigar menus in Kyiv restaurants and training their wait staff to offer the product.

Fortuna’s distribution network currently covers 22 of Ukraine’s biggest cities. The company runs an elite cigar salon in Kyiv, plus nine boutiques and some 30 tobacco kiosks in other parts of the country that offer over 40 cigar brands from Cuba, the Dominican Republic, Honduras and Nicaragua, said Smotrich.

Cigar smoking, according to Davidoff’s Scheurer, is part of a certain lifestyle and can be fully appreciated only if “a person enjoys life and people.”

Scheurer said that while around 50 years ago the profile of a cigar smoker was a successful man in his 50s, now it’s a younger person and, increasingly, female. Ukraine is following the world cigar smoking trend, Scheurer said, and it’s the country’s financial capacities that determines the number of the company’s Ukrainian clients.

Indeed, cigars are an expensive pleasure.

A cigar at the Davidoff boutique costs from $4 to $50, depending on its size and type, while prices for accessories can be “as high as one’s imagination goes,” according to the boutique’s owner, Artem Holubchenko.

According to Holubchenko, the most popular products in his boutique are Zino Platinum cigars, which sell for $50 per cigar, and humidors, special boxes that maintain the right temperature and environment for cigars to maintain their original aroma. In particularly high demand, he said, are humidors that were produced in very limited editions. These models go for some $10,000.

Yet Holubchenko claims that high-profile businessmen are not the only customers of his boutique on Chervonoarmiyska Street.

“It’s true that we get customers who send their drivers to us with lots of money to spend on cigars,” said Holubchenko.

“But we also have people who apparently can’t afford a box of cigars, but come once a month, and for whom a cigar is a special treat,” he added.

Fortuna’s Smotrich said that since handmade cigars are not a mass-produced product, and regular advertising is not effective, the company tries to think of alternative ways to promote its products and attract its customers.

“Recently, for instance, we offered a new service of ‘cigar catering’ at VIP parties and presentations, when our representative arrives at a location with pre-ordered cigar brands and the necessary accessories, serving as a consultant,” said Smotrich.

Source: Kyiv Post

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Shevchenko Set For Chelsea

MILAN, Italy -- AC Milan's Ukrainian striker Andrei Shevchenko will leave AC Milan this summer, opening the way up for a transfer to English champions Chelsea.


Soccer star Andriy Shevchenko, of Ukraine, arrives with his wife American model Kristen Pazik, at a party to celebrate Dolce & Gabbana

Shevchenko met with Milan vice-president Adriano Galliani on Friday, who offered the 29-year-old, who joined Milan from Dynamo Kiev in 1999, a contract extension to 2011.

But Shevchenko turned it down and Chelsea are now favourites to land him.

"I'm leaving for family reasons," said Shevchenko. "I want to thank the club for what they have done for me, there is no problem in terms of relationship and this isn't about money."

Galliani said the striker's decision was a "victory for the English language over the Italian one" in apparent reference to the fact that Shevchenko does not speak English, the language of his American model wife Kristin Pazik.

The couple, and their 18-month-old son, currently communicate in Italian.

"I did all that I could do to convince him to stay," Galliani admitted. "This is the most difficult separation since I have been at Milan. We will now start negotiations with Chelsea, but they won't be easy."

In the season that has just ended, Shevchenko scored 19 goals in 28 Serie A matches. He also netted nine goals in the Champions League.

The 2004 European Footballer of the Year lies second in AC Milan's all-time scoring table with 173 goals, behind Gunnar Nordahl on 223, and was for two consecutive seasons Serie A's top-scorer (2000, 2004).

Champions League winner in 2003, Shevchenko was also part of the AC Milan team that won the Italian league (2004), Italian Cup (2003) and the European Super Cup (2003).

Shevchenko will also spearhead Ukraine's bid for glory in what will be the former Soviet Republic's first ever World Cup finals (June 9 to July 9).

He goes into the World Cup having netted 28 times in 63 appearances for Ukraine, pooled in the group stages with Spain, Tunisia and Saudi Arabia.

Source: AFP

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Ukraine's Tymoshenko To Block Ex-Security Chief Rada Speaker Bid

KIEV, Ukraine -- Yulia Tymoshenko, the one-time heroine of Ukraine's 2004 "orange revolution", said Friday she would refuse to back a former head of the nation's security council for the post of parliamentary speaker.


Yulia Tymoshenko

A Ukrainian newspaper said earlier Friday that Tymoshenko had met with Petro Poroshenko, who resigned as secretary of the Ukrainian National Security and Defense Council last fall amid accusations of corruption, to discuss the distribution of a new government's posts among "orange" coalition members.

But the press service of the Yulia Tymoshenko Bloc dismissed suggestions that the fiery former prime minister would support Poroshenko's candidacy for the speaker's chair:

"Yulia Tymoshenko did not, does not and will not support Petro Poroshenko's election as Supreme Rada speaker," a spokesman said,

The press service said Tymoshenko would also reject the mooted appointment of Oleksandr Tretyakov, who like Poroshenko is a member of the pro-presidential Our Ukraine movement and is considered to be a member of President Viktor Yushchenko's close entourage, as the head of the president's secretariat.

Tymoshenko was originally Yushchenko's prime minister but was fired after only eight months in the job after a public falling out.

Tymoshenko's bloc, Our Ukraine and the Socialist Party are holding complicated talks to establish a parliamentary majority in the wake of March 26 elections that failed to produce a clear winner.

Source: RIA Novosti

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A Walk In The Woods With Friends

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko is reminiscent of the fabled giant in Kievan Rus who stood at the fork of three roads as he tortures himself over the choice of the next prime minister.


President Viktor Yushchenko at opening session of Parliament

The giant from the signposts knew what was ahead on every road, just as the president knew what his choices were on the second day after the parliamentary elections.

If Yushchenko takes the road on the right, leading to an alliance with the Yulia Timoshenko Bloc and Socialist Party, the Orange coalition will be restored. But then he will have to let the Orange Princess come back to power, and in triumph.

Timoshenko is not especially hiding her ambitions not only to play first violin in Ukraine, but to be the director at the same time.

This road means admitting his defeat in his dispute with Timoshenko on the future development of Ukraine that began almost immediately after their triumph in the Orange Revolution.

If Yushchenko takes the left path and enters into an alliance with Viktor Yanukovich's Party of the Regions, the ruling coalition will have an absolutely majority in the parliament.

But then he will no longer be the Orange president and will be forced to sacrifice his image as a democrat, which is what brought him to power in the first place, and which will not be taken well in his already shrinking electoral base.

The West, which Yushchenko is trying to orient himself toward, is not likely to applaud such an unprincipled coalition either.

The road straight ahead of him apparently looks less dangerous and more attractive to Yushchenko. Here he will not show preference for any potential ally and will remain above the squabbling.

At the same time, he will earn points internationally as the wise father of the nation. In his calculations, it won't be all that important who the next prime minister is, if he can form that image both at home and in the West.

In reality, there are many dangers on that road. First, the road doesn't go on forever. Sooner or later, a coalition has to be formed, unless Yushchenko wants permanent elections.

Second, the middle path is always doesn't take a democratic president anywhere. His authoritarian opponents will never acknowledge him as one of their own, and his democratic allies will soon disavow their ties to him.

Yushchenko may soon find himself alienated from everybody.

Source: Kommersant

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Friday, May 26, 2006

Ukraine Looks To Shevchenko For World Cup Glory

KIEV, Ukraine -- Andriy Shevchenko will have the hopes of 50 million countrymen on his shoulders when he leads Ukraine into the World Cup finals for the first time in their history.

Ukraine Captain Andriy Shevchenko


The Ukraine captain has won everything at club level but has never played in a major championship. Shevchenko said it was his life-long dream to represent his country at the highest level.

"No matter how many trophies you've won at a club level, nothing can be compared with playing for your country," said the 2004 European Footballer of the Year, who has won the Champions League and Serie A titles with AC Milan as well as five Ukrainian championships with Dynamo Kiev.

"Every player dreams of representing his country in a World Cup and I'm no different. I can only imagine what it would feel like walking on to the pitch wearing your national colours."

Shevchenko feels Ukraine are quite capable of qualifying from their first-round group, which also includes Spain, Tunisia and Saudi Arabia.

"We have a young team, capable of causing upsets," he said.

Leading Ukraine to the knockout round, however, would be no easy task even for a proven goalscorer such as the 29-year-old striker.

Unlike his club, where he is surrounded by a great international cast including Brazil playmaker Kaka, Dutch midfielder Clarence Seedorf and Italy full back Paolo Maldini, Ukraine have often been regarded as a one-man team.

Shevchenko would love to prove sceptics wrong as he has done time and again in his career.

Few believed a skinny 22-year-old from Ukraine would make a smooth transition to the demanding Serie A when he joined AC Milan in 1999.

Shevchenko became an instant hit with Milan fans, however, notching up 24 goals and becoming the first foreigner to top the Serie A scoring charts in his debut season.

He is now the club's second all-time leading scorer behind Gunnar Nordahl and has a chance to overtake the great Swede.

Shevchenko is also the leading active scorer in European club competition with 55 goals and is fast closing on Gerd Muller's all-time record of 62.

Source: Reuters

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Mittal Steel To Boost Some Workers' Pay

KIEV, Ukraine -- Netherlands-based Mittal Steel Co. has announced a 15 percent hike in salaries for workers at the giant Ukrainian steel mill it purchased last year, an increase that comes amid increasingly strong complaints by the Ukrainian government about low salaries.


The company said in a statement Thursday that it will increase salaries by 10 percent backdated as of January and by 5 percent from June.

The increase was agreed during negotiations with the local coal and metallurgical trade union, Mittal Steel said.

The average salary at the plant now is 1,590 hryvna ($318) a month, said spokeswoman Natalya Sedova. After the increase, the average salary will climb to 1,830 hryvna ($366) a month.

The State Property Fund, which oversaw Mittal Steel's purchase of Kryvorizhstal from the state last October, warned this month that it might sue if the company did not fulfill an alleged promise to increase salaries by June 6.

Mittal Steel countered that it has fulfilled almost all of its 60 obligations and accused the property fund of misinterpreting just one of the agreements.

Narendra Chaudary, general director of the mill, said in the statement that the company is fulfilling and will continue to fulfill all its obligations, and will aim "to solve all issues through negotiations."

Mittal Steel bought Kryvorizhstal mill for 24.2 billion hryvna ($4.8 billion) in October in Ukraine's biggest and most profitable privatization auction ever.

The sale earned Ukraine nearly six times more than the amount the mill was sold for a year earlier under former President Leonid Kuchma.

That sale to Kuchma's son-in-law and another tycoon was later declared illegal and canceled.

Source: AP

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Ukraine's New Parliament Opens 1st Session, Govt Resigns

KIEV, Ukraine -- Ukraine's new parliament on Thursday opened its first session, while the outgoing government submitted its resignation ahead of a coalition taking form in June.


Ukrainian President Viktor Yushchenko addresses parliament during the opening ceremony in Kiev Ukraine, Thursday, May 25, 2006

The 450 newly elected legislators were sworn in in the ornate chamber that once served as home to Soviet Ukraine's parliament.

The five parties taking seats in parliament are expected to hold consultations on the formation of a coalition government within a month.

According to law, Prime Minister Yuri Yekhanurov announced the resignation of his government. The parliament, however, empowered him to head a care-taking cabinet until the new government is set up.

The parliament decided to hold another session on June 7 to elect parliamentary leaders and discuss the formation of a government.

At Thursday's session, Ukrainian President Viktor Yushchenko told law makers that he hoped the new parliament and the coalition government in the making would give full backing to his reform initiatives.

The new parliament faces the grave task of improving the systemof political power and the legal environment to ensure economic growth and national unity, Yushchenko said.

Ukraine held parliamentary elections on March 26. The Party of the Regions won the most votes, but failed to obtain a majority, forcing the country into difficult coalition talks.

The other parties to make it over the barrier were those of ousted Prime Minister Yulia Tymoshenko, President Yushchenko's bloc, the Socialists and the Communists.

Source: China View

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Thursday, May 25, 2006

Ukraine Lakes And Rivers Searched For Piranhas

KIEV, Ukraine -- A piranha search was on in dozens of Ukrainian lakes Wednesday as officials tried to determine how many of the aggressive South American fish were swimming in the former Soviet republic’s waters, Deutsche Presse-Agentur agency reports.


Marine biologists discovered a piranha school in the Kasianka Lake in Ukraine’s eastern Dnepropetrovsk region earlier this week.

Since then reports that hundreds of the carnivorous fish had taken up residence elsewhere has dominated the country’s news.

A full-scale search of all lakes and waterways in the Dnepropetrovsk region began Wednesday.

The netting and trawling program, headed up by wildlife experts of the Dnepropetrovsk regional council, would ’capture and destroy all the carnivores without exception,’ said Volodymyr Alekhin, a government spokesman.

Piranha-related reports were prominent in most major Ukrainian media on Wednesday. The popular Fakty newspaper was typical, featuring a front page splashed with a photo of three toothy piranha chasing hapless goldfish, and the headline: ’The aggressive fish have already attacked two fishermen and killed off the lake’s muskrats, ducks, and snakes.’

Five of the Amazonian fish, all small, were netted by Kasianka Lake fishermen on Monday and Tuesday. Two piranha bit their captors, inflicting minor injuries.

The competing Sehodnia newspaper offered readers a color photograph of an actual captured Kasianka Lake piranha, and interviews with local fishermen.

Although believed to be present in the lake since early spring, the piranha ignored lures of sports fishermen set for local pike and gar, said fishing expert Ihor Ushchakovsky.

Editorials generally blamed lax government control over the country’s pet industry, and the low cost of the fish (five to ten dollars each) to potential pet owners.

An owner unwilling to take care of the fish probably dumped them into the lake, where they apparently were free to multiply, Dnepropetrovsk police said.

Besides fishing to cull the population, the Dnepropetrovsk ’anti-piranha’ action plan called for increased government monitoring of open-air markets, where most pets in the region are bought and sold. The markets operate without effective regulation.

Source: MosNews

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Wednesday, May 24, 2006

Former Soviet Republics Break Free

LONDON, UK -- ONE of the last vestiges of the Soviet Union appeared to be crumbling yesterday, when four former republics signalled they would be pulling out of the organisation established to keep the Kremlin connected with its lost empire.


Ukrainian President Viktor Yushchenko (C) gestures as he shows the Dniepr River to Moldovan President Vladimir Voronin (R) and Azerbaijan's President Ilham Aliyev (L) during their meeting in Kiev May 22, 2006

At a meeting in Kiev, the leaders of the pro-Western states of Azerbaijan, Georgia, Moldova and Ukraine pledged to form their own association to promote democratic values.

They also hinted they would leave the Commonwealth of Independent States, which was created 15 years ago as a group representing most of the former Soviet republics.

While the CIS never fulfilled any great economic or political function, its very existence was supposed to reflect Moscow's continued influence from Eastern Europe to the Caucasus and on to Central Asia.

But ties between the Kremlin and some of its former client states have deteriorated with a wave of democratic movements that swept pro-Western leaders into power in Georgia and Ukraine and encouraged anti-Russian sentiment in Azerbaijan and Moldova.

The new group, to be called the Organisation for Democracy and Economic Development, will be based in Kiev.

It will rival the CIS, which is based in Minsk, the capital of Belarus, where it is headed by Vladimir Rushailo, a tough former Russian interior minister.

Ukrainian President Viktor Yushchenko said: "Our citizens are giving us a mandate to develop strong, democratic and successful states."

The move is seen as a huge snub to Moscow, which has not been invited to join.

It faces the prospect of being left in a CIS of eight states including Belarus, regarded as the last dictatorship in Europe; Armenia; and the Central Asian republics of Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

The splits within the CIS ranks have been growing in recent months.

Moscow, which backed Mr Yushchenko's opponent in the Ukrainian elections, clashed with Ukraine this year when it suspended gas sales, causing an energy crisis across Europe in the middle of winter.

The Kremlin has also argued openly with Tbilisi over Russian support for two breakaway regions in Georgia and its reluctant withdrawal of troops from the country.

Moscow's recent decision to ban the import of Georgian and Moldovan wine, on the spurious ground that they contain pesticides, has further strained ties.

Azerbaijan has provoked the ire of Moscow by developing close ties with the US and building an oil pipeline to pump crude from the Caspian Sea to Turkey, bypassing traditional Russian control over energy supply routes.

Moldova signalled yesterday that it might be the first country to quit the CIS.

President Vladimir Voronin said the issue would soon be debated in parliament, where the move was likely to be approved.

Georgian Prime Minister Zurab Nogaideli said his country was also debating the value of remaining in the CIS, and that the question of withdrawal would come up before parliament in a few months.

"Many in Georgia have been very critical of the CIS, of its performance, of its efficiency, and we, as a government, are accountable to the people's concerns," he told Britain's The Times during a visit to London.

He said Georgia had attempted to make the CIS more efficient and capable of dealing with important bilateral disputes, such as the Russian wine ban, but that the CIS was incapable of addressing real issues.

"What is the sense in having an organisation that fails to discuss basic issues that affect the countries concerned?" Mr Nogaideli said.

"It seems to me that Russia itself is not interested in the CIS, in reality. They want to keep it as an organisation, but they don't want it to be an effective and functional organisation.

"Russia only keeps it for prestige."

Source: The Times

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Thousands Of Ukrainian Union Members Rally In Capital Against Increase In Gas And Energy Prices

KIEV, Ukraine -- Thousands of Ukrainian union members jammed the capital's main square on Wednesday to protest the increase in gas and electricity prices and demand that this ex-Soviet republic do more to raise its people out of poverty.

Thousands of Ukrainian workers rally in Kiev, Ukraine, Wednesday, May 24, 2006. Tens of thousands are protesting against the growth of electricity tariffs

"How can the government expect us to keep paying more when we don't receive a wage that you can live on?" said Kateryna Ivanchuk, a senior nurse at a Kyiv emergency room. She said the average nurse's salary was 354 hryvnias ($70) a month.

President Viktor Yushchenko's government has increased wages for state workers in this nation of 47 million, but the increases have been quickly gobbled up by rising prices for food and utilities.

This month, private consumers saw gas prices jump 25 percent, and Prime Minister Yuriy Yekhanurov warned Tuesday that another 50 percent increase could be on the horizon. The cost of other communal services, such as electricity, have also increased.

The sharp increases became a necessity after this year's gas dispute with Russia, which led to a twofold increase in the gas price charged to Ukraine. Ukrainian lawmakers initially pledged that there would be no immediate impact on the population, and kept the promise until after the March parliamentary elections.

The protesters, who numbered some 15,000, carried signs reading, "Increase in prices means an increase in poverty." Nurses and medical workers, wearing long white laboratory coats, brushed shoulders with eastern Ukrainian miners in red hard hats and Communists waving Soviet flags.

Yekhanurov on Wednesday ordered the Ministry of Fuel and Energy to explain the reasons behind the increase and provide comparisons with neighboring countries, many of which pay more than Ukraine for energy supplies.

Ukraine is one of the biggest gas consumers in Europe, but critics say that huge amounts are wasted through inefficiency.

Oleksiy Shvetlichny, a member of the Donetsk Union of Metalworkers and Miners, said he feared that the rising cost of energy could drive some of Ukraine's factories and mines out of business. "How much are we supposed to endure," he said.

Source: AP

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Tymoshenko May Fall Short In PM Quest - Official

LONDON, UK -- Former Prime Minister Yulia Tymoshenko, seeking to return to power as prime minister in Ukraine, may have too little support in parliament to win the job, a top Ukrainian official said on Tuesday.


Yulia Tymoshenko

Tymoshenko, estranged ally of President Viktor Yushchenko, says she is entitled to be premier again as her bloc finished first of three liberal groups in March's parliamentary election.

Rival parties are now negotiating to form a coalition government, but Yushchenko has proved reluctant to put Tymoshenko back in the job from which he fired her last year.

Some of the president's allies want a coalition deal with the Regions party, led by Viktor Yanukovich, the Revolution's main loser in 2004.

Oleh Rybachuk, presidential chief of staff, said Tymoshenko had a good chance of clinching a coalition deal but might have too few votes to become premier, he said.

"My feeling is that she might not get those votes," he told a seminar organised by the Policy Exchange think tank in London. "If (the candidate) is Yulia, I don't want to predict, but there are high chances she will not get enough votes."

Outgoing Prime Minister Yuri Yekhanurov, the president's longstanding ally who led his Our Ukraine party in the election, restated his preference for a broad coalition.

That would embrace the Regions party, first in the poll but still short of a majority to govern on its own. It is supported mainly in Russian-speaking eastern and southern regions.

"I do not want them to be in opposition to the president," Yekhanurov told Ukraine's Radio Era, referring to the Regions Party. "The task is to consolidate Ukrainians, including those 8 million citizens who voted for the Regions Party."

The new parliament, empowered under new constitutional provisions to name the prime minister, holds its first sitting on Thursday and has about two months to form a government. Yushchenko expects a government early next month.

The coalition of parties behind the "Orange Revolution" have agreed in principle to a new coalition, but talks on a formal agreement appear stalled. Our Ukraine refuses to sign any deal that would make Tymoshenko premier.

Source: Reuters

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Tuesday, May 23, 2006

Ukraine's Yushchenko Hosts Leaders Of Three Other Ex-Soviet Republics For Regional Summit

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko on Tuesday meets with the leaders of three other ex-Soviet republics to discuss strengthening economic and security cooperation and promoting democracy in the region along Russia's border.


Presidents (L-R) Vladimir Voronin of Modova, Ilham Aliyev of Azerbaijan, Viktor Yushchenko of Ukraine and Mikhail Saakashvili of Georgia attend a joint news conference at the GUAM summit in Kiev May 23, 2006

The summit brings together leaders of Georgia, Ukraine, Azerbaijan and Molodova. The four countries formed an alliance in 1997 that has increasingly been seen as an alternative to the Russian-dominated Commonwealth of Independent States.

Yushchenko has insisted that the goal is not to squeeze out Moscow's role in the region, but to foster cooperation on a smaller scale between these largely Western-leaning nations.

However, in recent weeks, both Georgia and Ukraine have complained about the ineffectiveness of the Commonwealth of Independent States, and Georgia's President Mikhail Saakashvili has raised the prospect of quitting that grouping of 12 ex-Soviet nations.

"If we can breath life into the old format, let's try," Saakashvili was quoted as saying by the Unian news agency. "I'd be only happy. But, unfortunately, the CIS is not at its best right now." He added that the free trade and free movement the Commonwealth of Independent States was set up to protect had floundered.

Saakashvili was speaking in the Ukrainian capital on Monday at a festival to promote Georgian wine, which has been barred from Russia in a trade dispute, the latest strain in relations between Tbilisi and Moscow.

The four leaders planned to use Tuesday's summit to transform the loose grouping, known by its acronym GUAM, into an international organization, whose headquarters will be in the Ukrainian capital. The organization will be renamed the Organization for Democracy and Economic Development.

The presidents were also expected to discuss energy cooperation and ways to diversify energy resources.

Lithuanian President Valdas Adamkus was also expected to participate in the talks as an observer. Yushchenko also invited senior officials from Bulgaria, Romania and Poland. The summit began Monday with an agreement to combine efforts to fight organized crime and weapons trafficking in the region.

Pro-Western presidents have come to power in Ukraine and Georgia since 2003, after their supporters poured into the streets to protest widespread allegations of election fraud. Moldova's leaders have also pulled away from Moscow's influence, and oil-rich Azerbaijan is being courted by both Russia and the West.

Source: AP

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Ukraine's Tymoshenko Bloc Claims Ally Working With Opponent

KIEV, Ukraine -- The race to form a majority coalition in Ukraine's parliament took an unexpected turn Tuesday when the Yulia Tymoshenko bloc accused one of its allies of siding with a pro-Russian party.

Oleksandr Turchinov

Oleksandr Turchinov, a representative of the Tymoshenko bloc, said pro-presidential grouping Our Ukraine and the Party of Regions, led by former presidential candidate Viktor Yanukovych, had voted together during a session of a four-party working group charged with overseeing preparations for the newly elected parliament's first session this week.

"This leads to the conclusion that a draft agreement [on a parliamentary coalition] between Our Ukraine and the Party of Regions is being prepared," Turchinov said.

Tymoshenko said she expected a draft agreement on forming a majority coalition in Ukraine's Supreme Rada early last week after a period of intensive negotiations between groups following March 26 parliamentary elections that failed to produce an overall winner.

The coalition was likely to include Tymoshenko's bloc, Our Ukraine, led by incumbent Prime Minister Yuriy Yekhanurov, and the Socialist Party.

Official results from the March ballot saw the Party of Regions take first place with 32.14% of the vote, which translates to 186 seats in the 450-seat Rada.

Yanukovych's party was followed by the Tymoshenko bloc with 22.29% of the vote (129 seats), Our Ukraine with 13.95% (81 seats), the Socialist Party with 5.69% (33 seats) and the Communist Party with 3.66% (21 seats).

No other party won a 3% share of the vote needed to take up a place in the Rada, which under the country's constitution must convene 30 days after the publication of the election results in two newspapers on April 27. A parliamentary

Our Ukraine, however, said it was suspending its participation in the talks until Tymoshenko clarified her position on how posts in the new government would be distributed.

The heroine of the 2004 "orange revolution" has consistently sought to return to the prime minister's post, from which she was dismissed after only seven months in office over a rift with President Viktor Yushchenko.

Source: RIA Novosti

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Ukrainians Gather At Mass Grave To Commemorate Victims Of Stalin Regime

KIEV, Ukraine -- Relatives and survivors gathered in a forest outside Kyiv Sunday at the site of Ukraine's largest mass grave for victims of Soviet dictator Josef Stalin, commemorating up to 120,000 Ukrainians killed during his regime.


The Monster Josef Stalin

People laid flowers and tied linen towels with Ukrainian embroidery on trees at the Bykovnya grave.

"It's hard to imagine how it was possible to bury over 100,000 people in one forest. The most awful is that it's impossible to answer the question why they were killed," President Viktor Yushchenko said.

Historians say millions were killed throughout the Soviet Union during Stalin's reign, accused of state treason and other crimes.

Separately, up to 10 million Ukrainians died of the 1932-33 Great Famine, which Stalin provoked as part of his campaign to force Ukrainian peasants to give up their land and join collective farms.

On Thursday, thousands of Crimean Tatars marched in the capital of Crimea to mark the 62nd anniversary of their deportation from the Black Sea peninsula under Stalin, a forced exile that lasted almost half a century.

Some 200,000 Tatars were deported in May 1944 after Stalin accused them of collaborating with the Nazis and were not allowed to return until the Soviet collapse of 1991.

Source: AP

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Monday, May 22, 2006

Ukraine Hosts Talks By 4 Ex-Soviet Republics

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko is hosting a two-day meeting of officials from three other former Soviet republics aimed at building democracy in the region.


Georgian President Mikhail Saakashvili (C), holds his glass of Georgian wine during a Festival of Georgian Wine in the Ukrainian capital, Kiev, on Monday, May 22, 2006

Representatives of Azerbaijan, Georgia and Moldova join their Ukrainian colleagues in Kiev Monday ahead of a meeting of the four countries' presidents on Tuesday. Talks are expected to focus on energy issues as well as cooperation by the four nations, known under the acronym GUAM, in international organizations.

Ukrainian officials say the meeting will consider expanding the activities of the group and changing its name to the Organization for Democracy and Development.

The group was founded in 1997 with the aim of expending cooperation of the four members of the Commonwealth of Independent States. Uzbekistan joined in 1999, but announced its withdrawal three years later, complaining that the group had deviated from its goal of economic cooperation to a focus on political issues.

Source: Voice of America

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Oh Lordi! Rockers Take Eurovision

LONDON, UK -- Finnish 'horror rock' band Lordi astonished Eurovision viewers when they stormed to victory at this years contest.


Finland's Lordi celebrate after winning the 51st Eurovision song contest at the Athens Olympic Indoor Hall

Monstrous looking Lordi - who have one member who looks like a 'Star Trek' Klingon - scored a massive 292 points in the annual European singing contest - 44 ahead of runners up Russia.

The rock band won voters over with their song 'Hard Rock Hallelujah' despite the competition being traditionally associated with catchy pop tunes and heartfelt ballads.

Leadsinger, also called Lordi, said: "We are a rock band and we just won Eurovision - that's weird. This was a victory for rock music and also a victory for open-mindedness. This is proof that there are rock fans who watch Eurovision."

Not only was the victory a surprise because of the band's style and performance, which included fire jets and monster costumes, but the record point score was also a shock.

Eastern European countries traditionally collude with each other in the contest, and ensure their neighbours are given the most points.

Ukraine's Tina Karol came in 7th with her song 'Show me your love'.

But this year voting broke with tradition across the whole of Europe, ensuring that Lordi's win was spectacular.

Though a big contrast to Russia's second-placed entry, which included a routine with a ballerina emerging from a piano, Lordi are keen to assert that they are just good musicians.

Lordi said: "We have nothing to do with Satan worshipping or anything like that - this is entertainment."

Britain's own entry, 'Teenage Life' by rapper Daz Sampson only managed to come 19th out of 24 countries.

Finland's win means that they will host the contest next year.

Source: BANG Media International

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U.S. Envoy Pledges Support to Ukraine in Revising Russia Gas Deal

KIEV, Ukraine -- Ukraine can count on support from the United States if it wishes to reconsider its gas deal with Russia, U.S. Ambassador told a local daily.


John Herbst said in an interview published in the Saturday issue of the Den (Day) daily that if the Ukrainian government comes to a conclusion that the gas agreements with Russia should be reconsidered it can expect support from the U.S., which has pointed to certain problems in this issue since the very beginning of the gas price dispute with Russia, the Interfax news agency reported.

At the same time, Herbst did not specify what support Ukraine could expect and suggested that Ukraine should find where it stands in this issue itself. Herbst also said he believes Ukraine’s convergence with NATO should not worsen Kiev’s relations with Moscow or any other country.

The ambassador described current relations between Ukraine and the U.S. as very good.

Among the steps that confirm this he mentioned the renewal of the Generalized System of Preferences, bilateral agreements on World Trade Organization membership, the granting of market economy status to Ukraine, and the lifting of the Jackson-Vanik Amendment in relation to Ukraine.

All these steps signal the progress that Ukraine has made in its reforms, he said.

Herbst will conclude his diplomatic mission in Ukraine in May.

Source: MosNews

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We Need Europe But Europe Needs Us Too – Yushchenko

KIEV, Ukraine -- In a Europe Day radio address to the nation, Victor Yushchenko said Ukraine’s integration with the European Union was mutually beneficial, according to the President’s press-office.

Viktor Yushchenko

“We need Europe but Europe needs us too, for Ukraine can give a powerful impulse to many European projects,” he opined.

The President explained that Ukraine could help Europe no longer be energy dependent by building new oil and gas pipelines from the Caspian region or new transportation routes.

In its turn, Ukraine must introduce profound judicial, economic, energy and social reforms. “This great challenge calls for political consolidation and political will but also great professionalism and responsibility,” he said.

The Head of State pledged to spare no effort to ensure that Ukraine makes a great breakthrough in this direction during his presidency. He said, in 2005, we had already done more than ever before, with the Ukraine-EU turnover reaching USD 20 bln and the export rate increasing by 60%.

“Now it is important not to slow down. We have implemented a considerable part of the Ukraine-EU Action Plan and hope to establish a new dialogue with Europe. We want to sign a free trade agreement and an associated membership protocol with the European Union, which will open the doors of EU before Ukraine,” he said.

Ukraine and the European Union are currently engaged in negotiations to liberalize visa requirements for our citizens.

“This path is painstaking but we will go to its end for the sake of our people,” he promised.

The President also said practically all political parties in parliament supported Ukraine’s integration with EU.

“I believe the Verkhovna Rada will form a coalition that will formulate European rules. I am sure our pre-election slogans should now be put into effect.”

Source: UNIAN

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Superstar Rapper To Perform In Kyiv

KIEV, Ukraine -- This summer concert season is certainly full of surprises. If only a short time ago the appearance of a real Western musical star sounded like an extraordinary event here, it certainly won’t anymore.


Curtis James Jackson (aka 50 Cent)

Not after The Black Eyed Peas and Jamiroquai announced their concerts, and The Cardigans promised to give an open-air show on Europe Day – and all this during over little more than a month.

Frankly, I didn’t expect any more surprises of this kind, but then I went to music.com.ua this weekend and felt my jaw drop. 50 Cent is coming? Are you kidding? I really found it hard to believe.

Please, don’t get me wrong – it was not because I thought he was too big and great to come to Kyiv, but it just seemed so hard to imagine someone like that hitting Kyiv’s grounds with his million-dollar sneakers.

Just imagine him strolling along Khreshchatyk – all showy and shiny with all those golden chains, diamonds, a bullet in the head and an indispensable gang of fellow rappers. It just didn't seem to make sense. And yet he’s coming June 3 .

As living proof of the wonder of show biz, Curtis James Jackson (aka 50 Cent), has jumped to fame in no time at all. After being discovered by Dr. Dre and Eminem, he released his debut album “Get Rich or Die Trying” in 2003 and sold 90,000 copies of it in the first week.

His hits such as “Candy Shop” and “In Da Club”, are known even to those who have no interest for rap at all (such as myself). Since then 50 Cent has released his second successful album,

“The Massacre,” and has also become an actor, starring in a movie based on his own biography – much like his patron Eminem. In fact, he’s already filming another movie, “Home of the Brave.”

Unlike the other American hitmakers coming to Kyiv this summer, 50 Cent will perform not at Palats Sportu, but at the Arena entertainment center – and he certainly will look much more at home there, doing his rap for an audiences that – though perhaps not quite as “gold-plated” as himself – are nonetheless ready to pay $100 for the cheapest tickets available.

Apparently, they've taken his famous motto “get rich or die trying” much to heart.

Source: Kyiv Post

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Sunday, May 21, 2006

Ukraine Deals With Messy Side of Democracy

KIEV, Ukraine — What to do with Yulia? The fate of the ousted prime minister is much the talk among Ukrainians _ those, at least, whose eyes haven't glazed over from a surfeit of politics.


Feisty Yulia Tymoshenko

The heady days of revolution and unity of purpose have given way to squabbling and complex coalition dealings, and the nation of 47 million is discovering how messy democracy can be.

With her feisty manner and intricately braided blond hair, Yulia Tymoshenko was one of the highest-profile figures in the 2004 Orange Revolution that swept Viktor Yushchenko to the presidency of the former Soviet republic.

She became prime minister but fell out with Yushchenko and was fired, only to bounce back in parliamentary elections two months ago with more votes than her potential coalition partners combined.

That election was hailed as Ukraine's most democratic ever. But no party won enough seats to form a government, and with the parliament session due to start Thursday, the wheels of coalition-building are grinding slowly. Tymoshenko wants her old job back. Yushchenko is cool to the idea.

The fate of Tymoshenko is not the only unresolved issue. There are plenty of other potential deal-breakers that need to be sorted out, or risk scuttling any alliance that does form. And many of them are rooted in Ukraine's Soviet past:

NATO: Yushchenko wants Ukraine to join, but the Socialists, a potential coalition partner for the president's Our Ukraine party, opposes entering the Western military alliance.

Russian gas: A deal this year nearly doubled the price Ukraine pays, and has underlined how much clout the Kremlin retains even if it ceased to rule this nation nearly 15 years ago.

Tymoshenko wants the deal reversed; Yushchenko says Ukraine got the best deal it could, but allies of his party have sent mixed signals about how far they will go to defend it.

Privatization: Some industries, such as the energy sector, communized in Soviet times, remain state-owned and inefficient. Yushchenko has made their privatization a priority. The Socialists, however, oppose privatization on principle.

Tymoshenko's views are harder to read. While prime minister, she called for a large-scale review of murky privatizations carried out under former President Leonid Kuchma. Investors saw her stance as an assault on ownership, which Tymoshenko strongly denied.

Language: Yushchenko has pledged to protect Ukrainian as the nation's only state language. The Socialists say they would support making Russian a second state language, noting that much of Ukraine's east and south is Russian-speaking.

The three parties in negotiations to share power run from left through center to right. United by hatred of Kuchma's former corruption-tainted regime, their alliance quickly showed cracks once the old order was gone, highlighted by the sacking of Tymoshenko and her government last September amid mutual allegations of incompetence and corruption.

Despite Yushchenko's reluctance to give Tymoshenko her old job back, the alternative is even more awkward. The party of Viktor Yanukovych, the pro-Russia candidate who was humbled in the upheaval that brought Yushchenko to power, won the most votes in the March election. He has reached out to his former opponents, but all have rebuffed him - publicly at least.

The Socialist party differs the most ideologically from its potential coalition partners, but it won the fewest votes and has proven in the past that it knows how to compromise.

"If the Socialist Party is interested in creating a coalition of democratic forces, it must modify its position; otherwise there cannot be a coalition," Foreign Minister Borys Tarasyuk said last week.

Andriy Dmytrenko, an economics analyst with Dragon Capital, sees a more pliant Tymoshenko emerging, too.

"When Tymoshenko was campaigning, we heard a lot of pro-populist rhetoric, but there are hints now that she has become a lot softer, particularly after winning significantly," he said. "People still associate her term as prime minister with an economic slowdown and price controls.

She has to recover her image as a good economic manager."

Source: AP

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HBO Eyes Great Ukrainian Hope

NEW YORK, NY -- You can hardly blame HBO Sports executive producer Rick Bernstein for getting a little excited as he watched the spectacle of Wladimir Klitschko pummeling Chris Byrd to win the International Boxing Federation’s heavyweight title last month.


Dr. Wladimir Klitschko

After all, not only could the Ukrainian pugilist bring fans back to boxing, but he’s Bernstein’s best chance in a long time to bring boxing fans back to HBO—along with hundreds of millions of dollars in pay-per-view grosses. "We are just sitting back and hoping," says Bernstein.

Not since the heyday of the erratic yet captivating Mike Tyson has there been a charismatic heavyweight champion with the potential to draw non-boxing fans.

Tyson’s 2002 fight with then-champ Lennox Lewis was the last big heavyweight event, a match jointly distributed by HBO and Showtime that grossed $103 million from 1.8 million pay-per-view buys.

Klitschko might have that magic combination of looks and personality that could bring back the big paydays.

Towering at 6 foot 6, the 1996 Olympic gold medalist looks like he could have played Ivan Drago, the Russian villain portrayed by Dolph Lundgren in Rocky IV. But, often a fan favorite, he speaks English, holds a Ph.D. in sports science, and plays chess.

Of course, Klitschko needs to keep winning. Before a recent string of victories, he suffered upset defeats in 2003 and 2004. Says Bernstein, "You are only as marketable as how well you can fight."

Source: Broadcasting & Cable

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Ukraine Remains On Pro-Europe Course - Foreign Minister

KIEV, Ukraine -- Ukraine's foreign minister said Saturday the country's aim of full membership in the European Union remained unchanged.


Foreign Minister Borys Tarasyuk

"Ukraine's course, which aims at gaining full-fledged membership of the EU, remains unchanged," Borys Tarasyuk said at celebrations to mark Europe Day in Ukraine. "We will make maximum efforts to achieve relevant standards in all spheres."

Tarasyuk said Ukraine was looking to conclude a new agreement with the EU based on integration and association.

He said the establishment of a free trade zone with the EU and Ukraine's accession to the World Trade Organization were the country's main priorities.

"Concluding an agreement on simplifying visa regulations will be an important element of our cooperation with the European Union," he said.

Tarasyuk added that successful implementation of these plans would eventually take Ukraine into the EU.

Europe Day - officially May 9 - marks the symbolic birthday of the EU, as it marks the day in 1950 when French Foreign Minister Robert Schuman made the now-famous "Schuman declaration," seen as the beginning of the creation of the Union.

Ukraine is celebrating the holiday for a fourth time, although it is not an EU member.

Source: RIA Novosti

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Michael Wetzel's Charitable Mission In Ukraine

KIEV, Ukraine -- Pushcha Vodytsa Street Children Centre hosts the Shepherd’s Purse delegation headed by its founder Michael Wetzel. Fifteen missioners, the oldest one is 62 and the youngest Rachel is only 9, have brought the humanitarian aid included all necessities for the children.


Michael Wetzel

Having made long way from Lansing, the delegation arrived on May 16 in Kyiv. Michael Wetzel reported to ForUm about the activity, goals and missions of his organisation and the horrible conditions the street children live in Ukraine.

US missioners do all their best in order to help these children. Many of them prefer to stay on streets because they have got used to live this way instead of being kept in the orphanage.

Explaining the motives, Michael Wetzel told the story of his first contact with the problems of homeless kids. It was the video shot by his son about Kherson’s homeless kids, there was eleven-year-old Nastya who had lived on streets since four-aged.

Now she is fourteen and she is still on streets because her mother is an alcoholic and her new step-father abuses her, so she prefers the street-life. She perfectly knows about all traps of such life – sexual abuse or human trafficking – but she thinks it will not happen with her.

Having got known about Kherson, Michael Wetzel decided to do what he can do and started the Shepherd’s Purse organisation. Its main goal is to find and contact the centres, soup-kitchens and hospitals for homeless kids, the second step to find out their needs and then to raise funds and to provide them with humanitarian aid.

Mr. Wetzel stressed the necessity to raise awareness of people here in Ukraine and in the US regarding the problem because “children suffer now and they need help.”

Not all US citizens as well as many Ukrainians are eager to help but those who want and who can do all their best. “some of them can give a new coat or some money.” Even these small efforts contribute much to the great deal of the humanitarian aid to those who have nothing at all.

Last summer the Shepherd’s Purse collected £1,200 of new clothes, boots and other goods which were shipped to Kherson.

Mr. Wetzel cooperates with certain centres in Ukraine and Russia taking care of street children -- Kherson, Dniprodzerzhyns’k, Kyiv, Vladivostok and Perm. Dr. Andriy Revtov and Dr. Hazs have founded two centres in Kherson. Revtov’s centre works with 70 children per day and in Dr. Hasz’s one kids may eat and take shower without staying at it for a long time.

Michael Wetzel said that it has become a tradition for him and his wife to celebrate Christmas two times a year – one in the US on December 25 and the second in Kherson on January 7. His mission brings presents to the children living in the centres or on street. The next year it will happen again.

There are 21 kids living in Pushcha Voditsa centre. They decided to change their life and started the new one in the centre. They study, play and even work there. Now, the centre implements the project called the Coalition which is aimed to share the info about the centre among the street kids: the former street kid tells others about the advantages of non-street life because they trust each other.

Mr. Wetzel wished the Ukrainian authorities would change the current system of the ID’s and humanitarian cargos examination in order the charitable missions may give more aid as they can do and want to do.

Source: ForUm

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Ukrainian Celebs Condemn Language Decision

KIEV, Ukraine -- Cultural figures and celebrities on Friday criticized efforts to grant the Russian language special status in this ex-Soviet republic, calling it an act of war against Ukraine.


Movie Director Yuriy Illenko

Artists, writers, politicians and scientists, meeting in Kiev, condemned recent decisions by several regional councils to have Russian declared a regional language, allowing its use in official business. The overwhelmingly Russian-speaking region of Donetsk on Thursday became the fourth area to do so.

"Today they announced a war, and we must react accordingly,'' said Yuriy Illenko, a movie director.

President Viktor Yushchenko's administration has said it would be unconstitutional to grant Russian special status, contending that the document declares Ukrainian to be the only state language.

His office has said it will challenge the decisions in the two eastern regions, an eastern city and the Crimean city of Sevastopol.

The language issue has become one of the most sensitive in Ukraine, where Russian dominated during Soviet times and today many still consider it their native language, particularly in the east and south.

In western regions, Ukrainian dominates and nationalists see protecting the language as a way to prevent meddling from Moscow.

"Today we have a direct threat to the Ukrainian nation and Ukrainian state system,'' said Ivan Zayeyts, a lawmaker.

Council officials say their decision is based on a European charter, which was ratified by the Ukrainian parliament in 2003, that protects regional and minority languages.

Critics, however, say Russian should not be considered a minority language and does not need special protection.

The Party of the Regions, the pro-Moscow opposition party that won the most votes in last month's parliamentary election, campaigned on a promise to make Russian a second state language.

Declaring Russian a regional language is a lesser move than trying to have it declared a second state language, but it could open the door to those efforts.

Source: AP

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Saturday, May 20, 2006

Shevchenko To Decide On Future Next Week

ROME, Italy -- Former European Footballer of the Year Andriy Shevchenko will decide next week whether he will stay at AC Milan or move to English champions Chelsea.


Shevchenko's Milan contract ends in June 2009 and the club have reportedly offered him a lucrative two-year extension.

But Chelsea are keen to sign the 29-year-old striker who joined Milan from Dynamo Kiev in 1999.

Asked if he was heading for England, Shevchenko told the Gazzetta dello Sport: "I'm considering it and you will know my decision on the 24th or 25th (of May).

"I never said I had made my mind up to go to Chelsea. I just said that I was thinking about it for family reasons."

Shevchenko admitted that learning to speak English was part of the attraction of joining Chelsea.

"I don't speak the language of my wife and my son," said the Ukraine international who is married to American model Kristen Pazik.

"When you play for a successful club, it's not easy to find the time to learn (another language).

In the season that has just ended, Shevchenko scored 19 goals in 28 Serie A matches. He also netted nine goals in the Champions League.

Shevchenko will also spearhead Ukraine's bid for glory in what will be the former Soviet Republic's first ever World Cup finals (June 9-July 9).

Source: AFP

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Crowning Glory Awaits The Orange Heir Apparent

LONDON, United Kingdom -- There are two things people really want to ask Yuliya Tymoshenko, the Orange Revolution’s as yet unimmolated Joan of Arc.

The appearance of Yuliya Tymoshenko, the former Prime Minister of Ukraine, has undergone a revolution of its own.

The first is whether the former Ukrainian Prime Minister, sacked by her former ally President Yushchenko last September, is again within grasp of the premiership. The second is: what’s with that hairdo? In reverse order then . . .

During the Ukrainian revolution of November 2004, in which a corrupt pro-Russian President was finally forced to concede that his protégé had not won the rigged election to replace him, Mrs Tymoshenko’s hair, once a practical dark mop, evolved into a work of art, a crowning glory of Princess-Leia braiding in gold, inspired, surely, by Slavic iconography.

“It means nothing. It is just a hairstyle,” she protests. But it’s changed! “There is nothing special in that,” she says through her translator. “Women do change their hair colour.” I take it she travels with a professional hairdresser? “No! I do it myself. It only takes me seven minutes. If I employed a professional I would need to leave an extra hour in the mornings.”

In her work, does being glamorous help? “Oh, nothing helps!” she says. “I read my press cuttings every day and it is all negative material: all politicians are monsters!” We meet at the Savoy in London. In her feathery tunic, designed by her favourite Ukrainian dressmaker, she resembles a sugar plum fairy who has become detached from her dance troupe.

She is 45 and could pass for 25, although her heavy make-up is unwisely tinted the colour of the Orange Revolution she came to personify. In London for just 13 hours, she has been schmoozing investment bankers and William Hague, the Shadow Foreign Secretary, who, given his recent kind words about the Lib Dems, may have sought her advice on coalition politics. In the Ukraine, these are nothing if not complicated.

In parliamentary elections in March her party, modestly named after herself, came second — ahead of Mr Yushchenko’s, but ten points behind that led by Viktor Yanukovych, the brief winner of the fixed 2004 presidential contest.

Mr Yanukovych, a twice-convicted robber, may (or may not) have been involved in the poisoning that caused the prince-to-toad disfiguration of Victor Yushchenko’s face during the campaign, yet discussions between Mrs Tymoshenko and the President who fired her when the shine wore off her economic strategy have become so fractious that some fear the emergence of an unholy Yushchenko-Yanukovych alliance.

But, yes, Mrs Tymoshenko believes that she will emerge as prime minister. “What I know for sure is that there will be an Orange coalition. I know we will have the government in place by the end of June and I’m sure that the political team which I lead will take the leading position.”

And she will demand to be prime minister? “I don’t think we need to demand anything because the Ukrainian voters demonstrated that they were putting their hopes in our political force and they connected the future with my name.”

Could she work with the man who fired her? “From my last meeting with Mr President I got the idea that he and I realised what the mistakes we made were and we are determined not to make any more mistakes that might break up our alliance.”

So she has overcome her anger at being dismissed? “I didn’t have any anger or offence because I don’t think these are the feelings a responsible politician should have. The only thing I regretted is that the colossal opportunities the Orange Revolution provided were not actually utilised.”

Yet she insists the revolution has not failed. “What I think the world and the Ukrainians underestimated was the strength of the reactionary groups — the resistance of the system. There was too much optimism.”

But she, glamorous on the barricades, inspired that optimism! “I’m very glad that people fell in love with my idealism. It is much worse when people fall in love with cynicism.”

As thousands of Orange-branded supporters took to the streets, it was Mrs Tymoshenko who dared to enter the presidential building to talk sense into President Kuchma. Some wondered if she would make it out. “We are human beings, so we were afraid, but we had this goal in front of us and we managed to suppress the fear. Plus there was this feeling that no one else could do it apart from me.”

Was she given courage by having survived six weeks’ imprisonment by the Kuchma regime in 2001? “At least that memory didn’t scare me and didn’t stop me. Even in prison I had no feeling of fatality or tragedy. I was pretty sure this regime would be dismantled.”

I read that she has separated from her husband of 27 years. Does she blame politics? “I too have heard terrible things about myself but nobody separated me from my husband! There is an old Ukrainian saying like Mark Twain’s: the rumours of my death are much exaggerated.”

Aleksandr “hates politics” but gives her tremendous support, she says. Their dream of a world cruise is on hold, even though after her years heading an energy company she is as rich as any of the oligarchs she now pledges to take on.

She has enjoyed equal encouragement from her mother, who brought her up in poverty single-handedly, and her daughter Evgenia, who recently married an English rock musician, Sean Carr.

Although educated in Britain, Evgenia, 25, has chosen to return to the Ukraine and Carr’s band, the Death Valley Screamers, toured the country during the election. Supporting his mother-in-law? “Supporting democracy,” she says. Will she stand for president in 2009? “If the coalition works I will support Mr Yushenko in 2009’s presidential elections.

“People say sometimes, ‘He might let you down’. But for me, most important is the future of the Ukraine.”

It is a politician’s answer: a threat disguised as a promise. As we leave, our photographer marvels at what a pretty picture this politician takes.

“In America,” her political adviser sighs knowingly, “I could make her president.”

Source: Times Online

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Prospect Of Bush Visit Puts Pressure On Kiev Parties

KIEV, Ukraine -- A possible visit to Kiev by President George W. Bush in June or July is causing consternation in Moscow and putting pressure on Ukraine's quarrelling pro-western political parties to agree quickly on a coalition government.

George W. Bush

The White House is hoping the Kiev visit could be combined with a US-European Union summit in late June or with the Group of Eight summit in Moscow in mid-July.

A Kiev visit timed closely to the G8 summit would allow Mr Bush to stress US support for the western-oriented democracies on Russia's perimeter that have come under economic pressure from Moscow.

Mr Bush would also use the visit to promote Ukraine's accession to Nato, which his administration is suggesting could be launched at the alliance's summit in Riga in November and completed by 2008.

The aggressive schedule was outlined by William Taylor, Mr Bush's nominee to take over as US ambassador in Kiev, in a Senate confirmation hearing last week.

At a conference on Nato in Moscow yesterday, Jaap de Hoop Scheffer, the alliance's secretary-general, defended proposals for Nato to take in Ukraine and Georgia, which he said were "not directed against Russia".

Russian speakers warned that Nato-Russia relations would change for the worse if Ukraine was invited to join.

However, Mr Bush's mission in Kiev depends on there being a government to greet him. A newly elected parliament is not due to convene until next Thursday, two months after the March polls.

The three parties that led the 2004 Orange Revolution and together won the largest share of parliamentary seats continue to argue over the sharing out of key jobs, including the prime min-ister's.

Viktor Yushchenko, president, added impetus to the talks last week when he said that he did not object to the candidacy of Yulia Tymoshenko, a former prime min-ister, with whom he has had a somewhat rocky relationship.

Ms Tymoshenko leads the largest of the three groups in the prospective coalition and her bloc insists she be premier.

Mr Yushchenko's spokeswoman said Mr Bush was likely to visit this year but no date had yet been set.

"Thank god that in Ukraine the government is formed without outside influence," she said.

"But the president is optimistic that we will see a government by the middle of June."

Source: Financial Times

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Friday, May 19, 2006

Euro Hit Tina

ATHENS, Greece -- Ukrainian singer Tina Karol has confirmed her place in the Eurovision Song Contest final, which takes place in Athens on Saturday.

Tina Karol

The 21-year-old secured her spot with a strong performance of her song, Show Me Your Love, which won over fans across Europe in the semi-final on Thursday, landing one of 10 remaining places in the final.

The daughter of a Jewish engineer, Tina – whose real name is Tatiana Liberman – was born on January 25 1985 in the Magadan region of Russia. Her musical career began when she was a teenager, taking part in Jewish and Israeli music festivals both in her home country and abroad.

"For four years, I performed with the dancing ensemble at the Kiev branch of the Jewish Agency, and my repertoire included songs in Hebrew and in Yiddish," she recently revealed.

She also made her mark in a series of charity concerts all over the US, as well as performing for the Ukranian Armed Forces and going on peacekeeping missions to Iraq and Kosovo. However, little is actually known about her Jewish background – and Tina hasn't given much away.

"There was a period in my life when I was deciding on my religious beliefs, but now I think I've found my stand on this," she says. "I believe in God, but I don't identify with any particular religion."

However, Tina faces competition from other Jewish hopes in Saturday’s event – including teenage singer Liel. The 16-year-old Israeli singer is a big star both at home and across Europe, and is probably best known for performing with former president Bill Clinton – and she's hoping to add Eurovision success to her list of achievements.

However, she's not representing Israel, as you might expect, but is in fact one member of Six4One, a multi-national group representing Switzerland (which also features members from Bosnia , Malta and Portugal among others). Their song, If We All Give A Little, will start the contest on Saturday and is being tipped to do well.

And what of Israel themselves? Well, their participant isn't actually Jewish, but is in fact an African-American who lives in Jerusalem and is currently undergoing conversion to Judaism. Eddie Butler previously sang for Israel as part of the band Eden in 1999 (when the contest took place in Jerusalem), and this year is back as a solo performer with the ballad Together We Are One.

Source: Something Jewish

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Ukraine Starts Implementing NATO Action Plan - Defense Minister

KIEV, Ukraine -- Ukraine has begun implementing a plan of action in a bid to join NATO, the country's defense minister said Friday.


"The Defense Ministry is not waiting for [political] approval of the plan on Ukraine's NATO membership," Anatoliy Hrytsenko said.

He said Ukraine had been improving its combat readiness, and working on transparency and social protection for military servicemen, which are all steps under the NATO Action Plan.

Hrytsenko added that the country's attempts to join NATO, the World Trade Organization or the European Union would force the government to make wise decisions.

Many Russian officials have said that NATO enlargement and the accession of Ukraine and Georgia to the bloc is a sensitive issue for Russia, which would need to spend considerable sums on reorienting its military capabilities.

Source: RIA Novosti

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GUAM Headquarter To Be Located In Ukraine

TBILISI, Georgia -- The next session of GUAM (Georgia, Ukraine, Azerbaijan, Moldova) will be held in Kiev on May 22-23, Ukrainian mass media says.

Foreign Minister Borys Tarasyuk

Constitutive documents, providing for amendment of status of GUAM into the international organisation, would be signed at the session, Borys Tarrasiuk, Ukrainian Foreign Minister said at the press conference in Kiev.

According to him, the headquarter of the organisation will be located in Kiev.

He also added that the meeting of the presidents of the GUAM countries, as well as session of the GUAM foreign ministers and meeting of ministers of different branches, will be held within the frameworks of the session.

Borys Tarrsiuk said that it is planned to hold negotiations in GUAM-USA format.

Source: Prime News

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Former Ukrainian Governor Asks Miami Judge To Stop Deportation

MIAMI, FL -- A former Ukrainian governor arrested in Florida last year has asked a judge to halt his deportation, claiming U.S. officials have violated his rights and failed to verify alleged charges against him, according to a lawsuit filed Thursday.

Volodymyr Shcherban

Volodymyr Shcherban, 55, was accused of extortion and abuse of power in the Ukraine's tumultuous 2004 election after he entered the United States in April 2005.

He applied for asylum in July and was detained Oct. 12, four days after his visa had expired. Though the United States has no extradition treaty with Ukraine, officials from both countries began the deportation process.

The lawsuit alleges that the removal proceedings are illegal because individuals with pending asylum claims are allowed to remain in the United States.

Instead of an official charging document or arrest warrant, U.S. officials have only produced an "unofficial and unverified translation of a purported charging document," according to the lawsuit.

The lawsuit also claims U.S. officials "improperly and deliberately manipulated Mr. Shcherban's asylum appointment schedules so DHS could make the claim that he had overstayed his visa."

A U.S. Immigration and Customs Enforcement spokeswoman referred calls Thursday to U.S. Citizenship and Immigration Services. A CIS spokeswoman said the agency does not comment on asylum cases.

The U.S. State Department has also alleged that Shcherban was also responsible for a 2004 attack on students protesting the merger of three colleges in Sumy, where he was governor. Opposition witnesses reported protesters being pushed to the ground, beaten and dragged at least 20 feet.

Ukrainian prosecutors never filed charges against Shcherban or anyone else with these allegations, according to the lawsuit filed in U.S. District Court in Miami.

Shcherban's attorneys declined comment Thursday.

Shcherban ran the regional government until January 2005, when President Viktor Yushchenko assumed office and fired several high-ranking regional officials.

Shcherban had previously been a supporter of Yushchenko, who was an opposition leader before he won last year's bitterly contested presidential race. But in 2002, Shcherban fell out with Yushchenko's camp and joined the People's Choice party, which was allied with ex-President Leonid Kuchma.

Source: AP Wire

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Tymoshenko Returns To Negotiations

KIEV, Ukraine -- Negotiations on the formation of an Orange coalition to govern Ukraine were resumed yesterday. The pro-presidential Our Ukraine Party, the Yulia Tymoshenko Bloc and the Socialist Party of Ukraine returned to the negotiating table at the initiative of Ukrainian President Viktor Yushchenko.


Yulia Tymoshenko

The fragile peace may not last long, however, since Viktor Yanukovich's Party of the Regions has announced that it is discussing a coalition agreement with Our Ukraine.

The main Orange forces in the country, Our Ukraine and the Timoshenko Bloc, tried to bury the hatchet yesterday after negotiations were broken off the day before. Timoshenko Bloc leader Alexander Turchinov said that negotiations were continuing on forming a three-way coalition and very near completion.

He added that the coalition agreement consists of three parts: an economic program, a program for government action and rules of the coalition. The details of the agreement would be discussed at a meeting with Timoshenko, Socialist leader Alexander Moroz and Our Ukraine figure Boris Bespaly.

On Tuesday, head of the Our Ukraine legal department Roman Zvarych announced that the party was withdrawing from negotiations because of the behavior of Tymoshenko, who was demanding to be made prime minister. The Timoshenko Bloc countered with accusations that Our Ukraine was holding secret negotiations with the Party of the Regions.

Passions were calmed Tuesday evening after Yushchenko met with Tymoshenko. Yesterday morning, all sides expressed their wishes to continue negotiations. The meeting may be delayed, however, if it takes place at all.

Our Ukraine, the Yulia Tymoshenko Bloc and the Socialist Party of Ukraine are preparing separate agreements with their own requirements to participation in the coalition. The Tymoshenko Bloc is insisting that ministerial positions be distributed in proportion to the results of the March parliamentary elections, to which Our Ukraine strongly objects. Our Ukraine wants the agreement to be signed before posts are assigned.

The Party of the Regions has added another degree of uncertainty with its announcement. Party leader Viktor Yanukovich said at a press conference yesterday that his experts have prepared a draft coalition agreement for the political force with which that party is in negotiations.

He did not specify what political forces those are. Another prominent member of the Party of the Regions, Andrey Klyuev, told journalists that “the basic principles of that coalition agreement have already been discussed with representatives of Our Ukraine.”

Another Party of the Regions figure, Taras Chornovil, told Kommersant that the party excludes only the possibility of an alliance with the Yulia Timoshenko Bloc.

Source: Kommersant

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Thursday, May 18, 2006

Eastern Ukrainian Region Of Donetsk Grants Special Status To Russian Language

KIEV, Ukraine -- The eastern Ukrainian region of Donetsk granted special status Thursday to the Russian language despite warnings from President Viktor Yushchenko that such moves violated the Constitution, which declares Ukrainian the country's only official language.


An elderly Ukrainian takes part in a picket organized by Communist supporters at the regional legislature in Donetsk, eastern Ukraine, Thursday, May 18, 2006. The demonstrators held red flags and rallied against Ukraine's bid to join NATO and for granting a special status to the Russian language.

More than 120 of the regional legislature's 133 members voted to make Russian a regional language, allowing it to be used together with Ukrainian in state and public institutions as well as at universities and cultural institutions, said Irina Tarana, spokeswoman for the council.

The move was inspired by the fact that about 75 percent of the region's population believe Russian to be their native language, said Tarana.

The overwhelmingly Russian-speaking Donetsk region becomes the fourth area to adopt such a measure, following similar moves in the eastern region of Luhansk, the eastern city of Kharkiv and the Crimean city of Sevastopol.

"The decision was made in the interests of community ... In the region, people will communicate in such a way as it is better for them," head of the Donetsky council Antoliy Blyznyuk was quoted as saying by the Unian news agency.

Yushchenko's office has ordered prosecutors to consider a legal challenge because the moves come in conflict with Ukraine's post-Soviet constitution, which declared Ukrainian the sole state language. Blyznyuk also expressed concern that prosecutors would appeal the council decision, Unian reported.

The language issue is a sensitive topic in this ex-Soviet republic, where Russian is predominantly spoken in the east and south and Ukrainian in the west. During Soviet times, Russian predominated and now many nationalists see protecting Ukrainian as critical to national identity.

Declaring Russian a regional language is a lesser move than trying to have it declared a second state language, but it could open the door to those efforts.

Tarana said the council also adopted a recommendation to the new national parliament, calling on it to recognize Russian as a state language in Ukraine. Yushchenko has vowed to fight this.

Source: AP

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Ukraine's Yushchenko Urges Parties To Accelerate Coalition Talks

KIEV, Ukraine -- Ukraine's President Viktor Yushchenko called on the parties engaged in coalition talks to work harder to reach agreement between themselves, his spokeswoman said Wednesday.


The potential "Orange" coalition

Yushchenko's party has said that it wants to reunite with its 2004 Orange Revolution allies - the bloc of former Prime Minister Yulia Tymoshenko and the Socialists – to keep Ukraine on its reformist, pro-Western path.

However, the talks have not yet produced a deal, largely because of deep-seated mutual distrust between Yushchenko and Tymoshenko, whom he fired as prime minister in September.

Iryna Gerashchenko, the president's spokeswoman, said the president remained optimistic that an agreement would be reached by month's end.

Yushchenko would like to host a meeting between the three parties next week, but only on condition they have agreed on a single draft coalition agreement.

"He thinks that each of their documents has rational and important aspects, but a future coalition needs them to come out with a single document and then bring this to the president," Gerashchenko said.

Talks began seven weeks ago after no party won a majority in the March 26 parliamentary election. On Tuesday, Yushchenko's party announced that it was taking a time-out, accusing its partners of issuing ultimatums over jobs in the new government.

But the party's spokeswoman Tetyana Mokridi insisted Wednesday that it hasn't interrupted coalition-building efforts.

One of the main stumbling blocks has been Tymoshenko's demand that she be returned to the prime minister's job. Her party received more votes than any of its other coalition partners, which she says entitles her to the job.

Meanwhile, Viktor Yanukovych, who leads the pro-Russian opposition party that won the most votes in the election, criticized Tymoshenko's insistence that his party only receive low-level jobs in the new government, saying Wednesday that the Party of Regions must receive senior posts.

"We are the party that won the parliamentary elections, and we believe that the creation of effective government control without considering the opinion of nearly half the voters is impossible," Yanukovych said. His party won just over 32 percent of the vote.

Source: AP

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Wednesday, May 17, 2006

Ukraine's Party Of Regions To Seek Official Status For Russian

KIEV, Ukraine -- Ukraine's pro-Russia Party of Regions intends to try to make the Russian language an official language in the country, the party's political council said Wednesday.


Viktor Yanukovych (C) at a Party of Regions meeting

The party said in a statement that it would attempt to put this issue on the agenda of the first session of the new parliament, which is due to convene at the end of May.

"The party program's objective is to achieve the status of a second state language for Russian. This is not a populist election slogan. We understand that it is crucial for the fates of millions of people and a real opportunity for them not to feel like strangers in their motherland," the statement said.

The party, which won the largest share of the March 26 parliamentary vote with 32.14% and claimed 186 seats in the new parliament, is led by 2004 presidential hopeful Viktor Yanukovych and maintains its powerbase in eastern Ukraine, where Russian is widely spoken.

The party, which despite its electoral success has been frozen out of the process to form a new coalition, also said a Justice Ministry statement on the unconstitutional nature of decisions by some regional and municipal authorities in the east and south to make Russian a regional language had "no basis in law."

Source: RIA Novosti

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Mittal Steel Bids For Ukraine Iron Plant KGOKOR

KIEV, Ukraine -- Mittal Steel, the world's largest steel producer, has submitted an $800 million bid to Ukraine's government to complete construction of the Soviet-era KGOKOR iron ore plant, the company said on Wednesday.


Lakshmi Mittal, owner of Mittal Steel

Mittal, which became the biggest foreign investor in Ukraine by acquiring the Kryvorizhstal steel works last year, said it would be able to produce 10.5 million tonnes a year of iron pellets at KGOKOR.

It would be able to start production in a year at an initial rate of 7 million tonnes a year, the company said, without specifying when it would reach full capacity.

Ukraine said last month it wanted to set up a joint venture with a powerful investor to complete KGOKOR, whichofficials said at the time could cost at least $400 million.

The country's top producer of iron pellets, Ferrexpo Poltava Mining, said last month it was interested in the project.

KGOKOR has also attracted a joint proposal from Russia's Metalloinvest, a group managing some of the assets of businessmen Alisher Usmanov and Vasily Anisimov, and Ukraine's Smart Group, controlled by Vadim Novinsky.

Construction of KGOKOR was begun by the Soviet Union in 1983. After the collapse of the USSR, Ukraine received a 56.4 percent stake, Romania 28 percent and Slovakia 15.6 percent.

"Mittal Steel is ready to organise cooperation with the governments of Slovakia and Romania," the company said.

KGOKOR is located 70 kilometres from Kryvorizhstal, Ukraine's largest steel plant, which Mittal acquired in October.

Ukrainian officials have said KGOKOR could initially produce 6.6 million tonnes a year of iron ore pellets, rising later to 10 million.

Source: Reuters

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Our Ukraine Proposes Moroz For PM Job

KIEV, Ukraine -- The analytical department of the Our Ukraine central HQ is convinced that the candidacy of SPU front-runner Oleksander Moroz is the most acceptable for the post of the Prime Minister.

Oleksander Moroz

Chief analyst of Our Ukraine HQ Anatoliy Lutsenko disclosed to UNIAN that it attentively studied the course of the negotiations process, as well as the threat of its disruption and the situation in the political forces, participating in the coalition talks.

Then Our Ukraine analytical department came to a conclusion that the candidacy of BYuT leader Yulia Tymoshenko for the post of Prime Minister is rather controversial and may not be approved by the parliament.

At the same time, A.Lutsenko stressed, the candidacy of O.Moroz is rather compromise and respected in the current “orange circle”.

Source: UNIAN

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Belarus Opposition Seeks Ukrainian Asylum

KIEV, Ukraine -- In a sign of the worsening political situation in Belarus, Belarus opposition leaders have petitioned Ukrainian President Viktor Yushchenko for asylum.


Alexander Lukashenko has jailed over 2,000 opposition demonstrators

ForUm news agency reported Monday that Molodoy Front leader Dmitry Dashkevich, Vyacheslav Sivchik RAZAM Coordinator, Student Fellowship Chairman Oleg Yatsenko and others announced their request at a press conference in Kiev. Dashkevich has only been recently released from prison.

The group of leaders identified themselves as "Minsk Maydan" and urged the pro-Western President Yuschenko "to raise a question before the heads of leading countries of the world how Russia may be a member of G8 if it implements uncivilized policy and supports odious dictatorial regime which violates all international laws."

The "Minsk Maydan" group said Russia was reverting to being "the evil empire" again. They said that because of Belarus President Aleksandr Lushenko's growing closeness to Moscow, Belarus political independence was at risk.

The press conference participants urged Ukrainian university rectors to consider admitting Belarus students who faced political repression into their institutions.

The Belarus oppositionist leaders also urged Ukraine's democrats to monitor the situation in Belarus.

Source: UPI

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Tuesday, May 16, 2006

Ukraine Criticizes But Won't Quit Commonwealth Of Independent States

WASHINGTON, DC -- Ukraine's foreign minister says the Commonwealth of Independent States has no future in its present form but indicated his country is not planning to quit the organization that groups 12 former Soviet republics.

Ukraine Foreign Minister Boris Tarasyuk

Boris Tarasyuk told reporters in Kiev Tuesday that the commonwealth, long criticized for being dominated by Russia, has become stagnant.

Georgia has said it is considering quitting the group.

Ukrainian authorities are currently preparing for a summit Monday of leaders from another grouping of former Soviet republics known as GUAM, a group that brings together Georgia, Ukraine, Azerbaijan and Moldova.

Tarasyuk says one purpose of next week's meeting is to strengthen and reorganize the smaller group, which, he said, could bring in other countries.

Source: Voice of America

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Yushchenko's Party Calls A Time-Out On Ukraine Coalition Talks

KIEV, Ukraine -- President Viktor Yushchenko's party called a time-out Tuesday in coalition talks with its former Orange Revolution partners amid further disputes over who would get the top job in a new government.

Roman Zvarych

The breakdown weakened hopes for an agreement before the new parliament's first session next week.

The announcement came after seven weeks of negotiations to put together a new government appeared to be making progress, with former Prime Minister Yulia Tymoshenko and the Socialists suggesting an agreement with Yushchenko's Our Ukraine could even be signed this week.

A revived Orange coalition would reunite the three parties that drew hundreds of thousands of people to the streets in 2004 to protest a rigged presidential election, helping prompt a new vote that Yushchenko won.

Yushchenko and Tymoshenko later had a major falling out, and the partnership between their parties disintegrated into mutual accusations. After March 26 parliamentary elections, however, all three parties said they were committed to trying again to keep Ukraine on its reformist, pro-Western path.

But a senior Our Ukraine official Roman Zvarych on Tuesday accused Tymoshenko and Socialist Party leader Oleksandr Moroz of issuing ultimatums over jobs in the new government. Tymoshenko, whose party won more votes than the other potential coalition partners, has demanded to be prime minister again.

The Socialist Party has supported her in exchange for her blessing for its leader, Oleksandr Moroz, to get the powerful parliamentary speaker job.

"Our Ukraine won't accept ultimatums," Zvarych said, announcing the suspension. Both Tymoshenko's bloc and the Socialists denied issuing an ultimatum, and Tymoshenko ally Oleksandr Turchynov accused Our Ukraine of "looking for reasons to drag out the negotiations."

Pressure is building on the parties to reach an agreement because parliament is scheduled to hold its first session on May 25. Lawmakers have one month after the first session to form a coalition, and another month to name the government. But Ukrainian politics has been effectively frozen for much of this year due to campaigning and then the coalition talks, leading to calls for the lawmakers to sort themselves out quickly.

The main stumbling block still appears to be the prime minister's job, with many in Yushchenko's circle extremely reluctant to see Tymoshenko return.

"All this is about the prime minister and Yulia Tymoshenko," said Inna Pidluska, an analyst with the Kyiv-based Europe Foundation. "There are many in Our Ukraine who do not want to see her be prime minister at this point."

Source: AP

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HIV Rates Increase Tenfold In One Decade In Eastern Europe

MOSCOW, Russia -- The first European and Central Asian AIDS Conference is underway in Moscow, Russia, where HIV infection is growing faster than anywhere else in the world.

HIV-positive children at an orphanage in Odessa, Ukraine

Over 1.6 million people in Eastern Europe and Central Asia are HIV positive, of which over three-quarters are under 30 years of age.

Russia has the highest number of HIV cases in Europe, followed by Ukraine. Even though Africa has the highest number of cases, Eastern Europe and Central Asia are experiencing the fastest spread.

The rapid rise first started as a result of drug users sharing infected syringe needles. Now, the infection is also spreading as a result of heterosexual sex.

Dr. Peter Piot, UNAIDS Executive Director, opened the conference with a keynote speech. He thanked Dr. Gennady Onishcenko and colleagues from various Russian agencies and organisations for making the conference possible.

Dr. Piot reminded delegates that it was 25 years ago that AIDS was first recognised among 5 gay men in Los Angeles, California. Today, it is the leading cause of death among men and women aged 15-59. He warned that as such a huge proportion of new infections are among young people, the threat to future generations is a serious concern.

Dr. Piot stated that during 2003-2005 over 300,000 lives a year were saved in developing countries thanks to the tripling in the numbers of people receiving antiretroviral therapy.

Dr. Piot thanked Russian President Putin for convening the Presidium of the State Council of the Russian Federation to examine all aspects of the epidemic in Russia. He also thanked Ukraine President Yushchenko for his efforts.

Source: Medical News Today

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Monday, May 15, 2006

Blokhin Names Team For Ukraine's World Cup Debut

KIEV, Ukraine -- Ukraine coach Oleh Blokhin named Andriy Shevchenko in his 23-man squad Monday for the World Cup despite the AC Milan striker's knee injury.

Ukraine coach Oleh Blokhin

Shevchenko, tied for fourth in Italy's Series A with 19 goals this season, hurt his knee earlier this month against Parma. But he plans to take part in the World Cup, Ukraine's first ever appearance at a major soccer tournament.

Dynamo Kyiv goalkeeper Oleksandr Shovkovsky is also on the list despite struggling with a collarbone injury. Shovkovsky, however, showed no sign of injury when he played Sunday in the Ukrainian league.

In one of the few unexpected moves, Blokhin also named 21-year-old Andriy Pyatov, who plays for Ukraine's youth team.

The squad will include eight players from Dynamo Kyiv, five from Shakhtar Donetsk, four from Dnipro Dniproptrovsk and four from outside of Ukraine.

Ukraine became the first European team to qualify for the World Cup by winning its group ahead of European champion Greece, 2002 World Cup semifinalist Turkey and Denmark.

At the World Cup, Ukraine will face Spain, Tunisia and Saudi Arabia in Group H.

Source: AP

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Festering Divisions Plaguing Ukraine

KIEV, Ukraine -- The politicians trying to reunite the political parties that were swept to power in Ukraine a year and a half ago have drawn up a list of the issues that divide them.

Yulia Tymoshenko wants her old job back as Prime Minister

They include the World Trade Organization, membership in NATO, privatization of state properties and the volatile issue of whether to allow sales of agricultural land.

The most divisive issue, though, is the most important of the moment: Who will be Ukraine's new and newly empowered prime minister?

Six weeks after parliamentary elections produced no outright winners, no one can say for certain. The issue has stirred a new round of recriminations among those who joined President Viktor Yushchenko in leading the popular protests that overturned a fraudulent election in 2004.

"They want a compromise with the past, the Kuchma era," said Hryhory Nemyrya, a newly elected member of Parliament, referring to the scandal- tarred presidency of Leonid Kuchma.

The leading candidate for prime minister is the head of Nemyrya's party, Yulia Tymoshenko, the erstwhile ally of the president who insists that her bloc's showing in the election - ahead of Yushchenko's party, Our Ukraine - makes her the rightful candidate among the so-called Orange coalition.

In an interview with a Polish newspaper, published Friday, Yushchenko said he did not preclude that possibility. But at least some of his supporters strongly oppose Tymoshenko, arguing that she would prove as divisive as she was when she served as his first prime minister for eight months last year - until tumultuous economic policies, political infighting and dueling accusations of corruption prompted him to dismiss her.

Even as they hold talks to reunite last year's Orange coalition to form a governing majority, Yushchenko's supporters have raised the possibility of compromise candidates.

"There are others on the bench," said Anatoly Kinakh, a leader of Our Ukraine and Yushchenko's national security adviser, declining to identify them. Kinakh resigned his security post Friday to take a seat in Parliament, presumably as part of the positioning to form a coalition government.

Some, including the acting prime minister, Yuri Yekhanurov, have suggested the possibility of a broader coalition government that could include the party led by Yushchenko's vanquished presidential rival, Viktor Yanukovich, which led all parties in the parliamentary election with 31 percent of the votes.

Source: International Herald Tribune

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Da Vinci Code: Church Sounds Caution

NEW DELHi, India -- With the world premiere of The Da Vinci Code just days away, the Catholic Church has called on followers to regard both the book and movie with caution.

Da Vinci Code stars Tom Hanks (R) and Audrey Tautou

Last month the Vatican called for a boycott of the movie and now the church has produced a rebuttal documentary entitled, The Da Vinci Code -- A Masterful Deception.

A central premise of The Da Vinci Code is that Jesus had a child with Mary Magdalene and that a clandestine society has for centuries protected their descendants.

The movie, which stars Tom Hanks premieres at Cannes this week before being released worldwide. [The movie will open in Kiev theaters, on Thursday, May 18th]

Source: ndTV

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Sunday, May 14, 2006

Chelsea's Mourinho Hopes For Shevchenko

LONDON, UK -- Chelsea manager Jose Mourinho welcomed the arrival of Germany midfielder Michael Ballack on Sunday and indicated the champions were trying hard to sign Ukraine striker Andriy Shevchenko.

AC Milan's forward Andriy Shevchenko of Ukraine

Speaking from an open-topped bus as it snaked its way through west London streets packed with cheering fans, Mourinho told Chelsea TV: "He (Ballack) believes in us, he believes in Chelsea, he believes he can have success.

"He believes in the Champions League, he believes in three, four years’ success for him in a crucial time of his career."

"He had a lot of other chances as you can imagine. He decided on Chelsea and I think we are very happy and I think also English football should be happy to have such a player playing in the Premiership."

The English champions are planning to present the 29-year-old playmaker, who helped Bayern Munich win a second successive German league and Cup double, at a news conference on Monday.

Bayern’s fans, disappointed with Ballack’s decision to leave, jeered him at his last game for the side on Saturday.

Ballack will be vying for a place in a strong midfield that includes Frank Lampard, Claude Makelele of France and tough Ghana international Michael Essien.

Lampard, runner up as world and European player of the year, said Ballack was a "good player and a talented player.

"He’s another player who wants to get forward so we’ll have to link up," the England midfielder told Sky Sports News.

He dismissed speculation he might leave because of the competition. "No way," he said over the noise of hooting horns and bellowing fans. "I’m very happy here. Days like this make me realise how happy."

TOUGH NEGOTIATIONS

AC Milan’s Shevchenko has told his club he wants to leave after seven years at San Siro but Mourinho and Chelsea chief executive Peter Kenyon say negotiations are tough.

"The natural thing is we have a big striker coming to join us," Mourinho told Sky Sports News. "I can’t say if it is Shevchenko or not.

"Shevchenko is a player who belongs to Milan and Milan have him on a long contract and can say the same thing as we in relation to Gallas which is no offers are wanted."

France defender William Gallas has told Chelsea he wants to leave but the club say he must complete the year he has left on his contract.

"I am optimistic that I will keep every important player and am optimistic that we can bring in two or three players of a big quality," Mourinho added.

"Shevchenko, I cannot say I am confident because Milan have the power."

Kenyon, who joined billionaire Russian owner Roman Abramovich and the players on the bus to celebrate back-to-back titles, said Chelsea had been talking to Milan about the former European player of the year.

"Shevchenko is a type of player we would like. We have shown our interest in him for the last two seasons," Kenyon told Sky Sports News.

"Milan, like Chelsea, don’t lose players they don’t want to but to improve what we have got it would have to be a big player. Shevchenko is of that class.

"It has got to be 50-50, but I wouldn’t put it at any more than that."

Kenyon played down reports linking Chelsea with Argentine forward Carlos Tevez of Brazilian champions Corinthians.

"We have looked at him. He is a good player and does a good job, but reports linking us with bids for him are not right," Kenyon said.

"I would be surprised if we saw him in a Chelsea shirt this season."

Source: Reuters

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Ivchenko Fails Gas Prices

KIEV, Ukraine -- Naftogaz Ukraine CEO Alexey Ivchenko resigns to become one of Supreme Rada’s deputies. The resignation is attributed to Ivchenko’s inability to secure guarantees for stable gas prices in contracts with Gazprom, the failure of gas negotiations with Turkmenistan and the drop in financial rating of Naftogaz Ukraine.

Naftogaz Ukraine CEO Alexey Ivchenko

The candidacy of the new CEO will depend on the strength of the parliamentary coalition.

Ivchenko submitted resignation yesterday morning. The ministers unanimously sealed it and Ukrainian President Viktor Yushchenko had the document in two hours.

In Naftogaz Ukrainy, they insist Ivchenko has vacated the office with no political pressure. “Alexey Ivchenko decided to switch over to the work in Supreme Rada,” explained Eduard Zanyuk, an adviser to Naftogaz CEO.

“I’m not going anywhere yet. No one has dismissed or will dismiss me,” Ivchenko vowed in ten days after his first deputy Andrey Lopushansky vacated the office on April 12, apparently not dreaming of another employment then.

Meanwhile, the analysts attribute the resignation, first of all, to gas agreement of January 4 sealed by Naftogaz and Gazprom, as it doesn’t guarantee the price of $95/1,000 cub m for 2006 to 2008.

As a result, Gazprom submitted a letter to Naftogaz in early May, calling for the start of the talks about gas prices for the second half-year.

“I see no real opportunities for hiking gas price for Ukraine by Russia,” Yushchenko rebuffed then, signaling it was the end of Ivchenko’s career in Naftogaz.

Other reasons could be the failure of gas negotiations with Turkmenistan and the drop in Naftogaz rating. Naftogaz payables widened from $500 million in March 2005 to $2.02 billion in May 2006, having prompted Fitch to curtail the rating from BB+ to B-.

Source: Kommersant

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Some 2,000 Ukrainians Gather To Complain

KIEV, Ukraine -- The Ukrainian capital's new mayor was taken aback when an estimated 2,000 people turned up at his office Saturday after he announced that he would be available to personally hear complaints.

Mayor Leonid Chernovetsky

Standing amid the pressing crowd at the building's front entrance, Leonid Chernovetsky promised he would make this a weekly event but expressed hope that in coming weeks, it would be more orderly. The start of the event was delayed due to the huge and demanding crowds.

"I now fully understand that you want to live in a democracy,'' Chernovetsky said, according to Ukraine's Unian news agency.

Tables were set up to help residents put their complaints in writing, and Chernovetsky's staff said some 3,000 petitions had been submitted. Residents took turns at a microphone to publicly address the mayor.

The concerns included development and property issues, as well as criminal matters in the capital of the former Soviet republic, city officials said.

Chernovetsky, a wealthy businessman, won the March 26 mayoral election, defeating two-term Mayor Oleksandr Omelchenko. Since his surprise victory, he has been making waves with his unorthodox style, which included proposing a special compensation to Kiev residents who live near millionaires.

Source: AP

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Ukraine, Polish Leaders Remember 1945 Massacre

WARSAW, Poland -- Poland's president expressed "the greatest sadness" over the murder of 366 Ukrainian civilians by Poles at the end of the Second World War as he and his Ukrainian counterpart lit candles at a memorial to the dead.

Presidents Viktor Yushchenko (L), of Ukraine and Lech Kaczynski of Poland attend a ceremony in the village of Pawlokoma , Poland , Saturday May 13, 2006, remembering the murder of 366 Ukrainian civilians by Poles at the end of World War II, a step in reconciliation between the neighboring nations.

Polish soldiers murdered Ukrainian civilians in the eastern village of Pawlokoma in March 1945 in revenge for the killing by Ukrainians of about 10 Poles.

The countries' presidents joined in prayers conducted by leaders of Poland's Roman Catholic and Ukraine's Greek Catholic church at the recently built memorial in Pawlokoma. They laid wreaths and lit candles.

"Pawlokoma became for Ukrainians a symbol of the tragedy of their nation," Polish President Lech Kaczynski said in remarks that fell short of an apology. "We reflect on that today with the greatest sadness."

"A strong and lasting reconciliation can only be built upon the truth," Kaczynski said. "We cannot change the past but can ensure that it doesn't determine our future."

Calling it "a historic day," Ukrainian President Viktor Yushchenko stressed the importance of reconciliation for the sake of the future.

The memorial, a large grey granite cross, remembers the suffering that Poles and Ukrainians suffered at one another's hands amid the brutality of the Second World War.

"To the eternal memory of the 366 victims who tragically lost their lives in the village of Pawlokoma March 1-3, 1945," it reads. "To the memory of Poles, residents of the village of Pawlokoma, who in 1939-1945 suffered death from Ukrainian nationalists."

The memorial was officially unveiled in March on the anniversary of the massacre.

For years, residents of the village opposed erecting the memorial. They agreed after Ukraine last year restored Lviv's Cemetery of Orlyats, the resting place of 2,500 Polish soldiers who struggled against Ukrainians in a 1918-20 war.

Source: AP

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Saturday, May 13, 2006

Kiev Also Looking At Exit From CIS

WASHINGTON, DC -- While Tbilisi seems prepared to leave the Commonwealth of Independent States altogether, Kyiv is reducing its own participation in the organization to almost nil, while maximizing its criticism of it.


Even the meager membership dues of "nearly $1 million" that Ukraine pays annually into the CIS budget is now deemed "wasteful spending that can be reallocated to other purposes" by Ukrainian officials.

Ukraine's situation vis-à-vis the CIS is more complicated than Georgia's in two respects: First, a sizeable part of Ukraine's population in the east of the country would not countenance an open abandonment of the CIS by Kyiv, equating such a move with abandonment of Russia.

And, second, the Ukrainian presidency and parts of the government are interested in the country's selective participation in the planned Single Economic Space of Russia, Belarus, and Kazakhstan.

Legally, however, Kyiv's official exit from the 12-country CIS would be a simple matter, because Ukraine technically is not a full member of the organization. Ukraine never became a party to the CIS Charter, ratification of which was the legal prerequisite to each member country's membership.

Thus, even though Ukraine was among the founder-states of the CIS (in December 1991), it has technically the status of a "participant state," rather than a member state. Ukraine is also sometimes referred to as an "associate member" of the CIS. Apparently taking a cue from Kyiv, Turkmenistan last year lowered its status from full to "associate membership" in the CIS.

While a CIS "participant," Ukraine does not take part in CIS joint activities related to foreign policy, defense, or security issues (with a few symbolic exceptions) while actually participating in NATO and U.S.-led peacekeeping and other activities in the sphere of international security, and is an official aspirant to NATO membership. When that membership draws within sight, Ukraine can be expected to make a full exit from the CIS.

At present, the Ministry of Foreign Affairs is the most active in preparing public and elite opinion for abandoning the CIS. First Deputy Minister Volodymyr Ohryzko made a series of statements to that effect in recent days, including some caustic remarks for the media in Moscow while on an official visit there. Ohryzko characterized the CIS as a "talk shop," an "empty shell," a "club that keeps busy chattering."

He announced that Ukraine is examining whether it is worth staying with the CIS at all. The conclusion of such examination seems almost foregone, based on the stated premises.

Ohryzko's remarks are a continuation of those delivered by Minister of Foreign Affairs Borys Tarasyuk during the recent CIS ministerial conference in Moscow, where Ukraine, Moldova, Georgia, and Azerbaijan formed a common front to oppose Russian policies directed against their interests.

On that occasion, Ukraine protested against Russia's recent restrictions on the import of Ukrainian meat and dairy products to the Russian market and called in vain for a resumption of discussions on creating a CIS Free-Trade Zone, as distinct from the Moscow-promoted Single Economic Space. Moscow and its loyalists also blocked Kyiv's proposal for the upcoming CIS summit to express its attitude to the 1930-33 famine and genocide in Ukraine (the Holodomor).

In his concluding remarks, therefore, Tarasyuk described the CIS as "not a normal international organization" and "without a future."

Officials in Ukraine's presidency, however, sound more cautious in their comments on the CIS. According to Kostyantyn Tymoshenko, head of the Presidential Secretariat's foreign policy section, Ukraine needs the agreements signed earlier in the framework of the CIS to start working.

Only if that does not happen in the near future should Kyiv raise the question "whether the existence of the CIS makes any sense at all and take some appropriate steps." In a similar vein, the presidential representative in the Cabinet of Ministers, Borys Bespalyy, downplays the issue of leaving the CIS as "not topical today or tomorrow."

Such remarks seem at least in part to reflect President Viktor Yushchenko's priorities, which include advancing coalition negotiations with the Party of Regions and -- irrespective of the eventual shape of a coalition government -- persuading Russian President Vladimir Putin to visit with Yushchenko in Ukraine.

For the time being, Kyiv will not march with Tbilisi out of the CIS, but it will continue its decade-old, futile quest for a CIS free-trade zone while at the same time criticizing the organizations from the sidelines for its irrelevance.

Source: Eurasia Daily Monitor

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Celebrate Europe Day!

KIEV, Ukraine -- To acknowledge that Ukraine is a European country after all, Europe Day will be held here for the fourth time now, taking place in Kyiv on May 20 as well as two regional cities – Zaporizhzhya and Kharkiv.

Swedish band The Cardigans will visit Ukraine for the second time already, and will surely become the highlight of the Europe Day show.

As usual, apart from simply reminding Ukrainians that they are a European nation, Europe Day will offer plenty of cultural amusement that will allow Ukrainians to learn something new about Europe and simply have fun in the center of the city.

Apart from Ukraine, the countries taking part in the Europe Day 2006 are 21 European Union members and the candidate states – Bulgaria, Croatia, the Former Yugoslav Republic of Macedonia, Romania and Turkey.

The tents placed in the European Village will provide lots of tourist materials and information about the geography, history, culture, people and cities of the participating countries. At most tents you’ll also be able to take part in games and quizzes and win some souvenirs.

The tents of some European states, however, will offer more than tourist booklets and information videos. For instance, Austria, which holds the EU presidency at the moment, will showcase the impact Mozart’s music still has today with an exhibition of paintings called “Modern Mozart” by the young talented children of Kyiv’s Children’s Academy of Arts.

The best work will be awarded a prize at a special ceremony. The main topic at the site of the Netherlands tent will be devoted to another genius – Rembrandt. At the Romanian tent you’ll be able to meet with the Romanian players of Dynamo Kyiv, and a common tent for Finland and Sweden will present their Children’s Art Gallery and offer information on Swedish and Finnish children’s writers.

All fans of debates shouldn’t miss the Public Discussion tent where they can take part in a Public Discussion Forum and discuss some controversial Europe-related such as “Ukrainian culture = European culture?,” “EU Enlargement: where does Europe end?” and “Europe from the inside: culture, society, economics” as well as other topics.” Discussion starts at 11 a.m.

Food connoisseurs and gourmets will surely enjoy themselves in the European Food Corner which will offer all kinds of culinary hits from all the famous European cuisines. Try out Austrian Apple strudel, Viennese slices with a variety of toppings and of course Viennese coffee; beer and Deskalides chocolates from Belgium; French Brochettes, Crepes Bretonnes and red and white wine; a great selection of sausages and potato salad from Germany and Irish beers and ales.

Italy will offer some of its signature dishes – Prosciutto Crudo (smoked ham), lasagna, pasta and Tiramisu, the Netherlands will prepare Frikadels (minced meat sausages) and sandwiches with herring and croquette, Portugal will offer some of its best sausages and biscuits, while Turkey will display traditional Doner Kebab, Lahmacun (Turkish pizza with meat), Borek (cheese pie), sweet Baklava and Turkish lemonade.

In order not to miss any of the delicacies arrive to Khreshchatyk in the morning or early in the afternoon because, as you know, the real tasty stuff may be gone very soon.

Most countries have also prepared music and drama pieces by their best performers that can be seen in the European Arts & Music Corner starting at 10:30 a.m. Turkish students studying in Kyiv will represent their country with the rock band Qatre, and the Finnish Sibelius String Quartet will play some classical music.

France will be represented by a 12-man brass band, Les Couak’on Joue, Hungary will offer some folk dancing by Rhythm, the German diplomats group jAAzz will naturally play jazz, Zorbas will do some traditional Greek folk dancing, the Kyiv “Koleso” theater will represent Austria by performing fragments of the play “Fruhere Verhaltnisse” (Earlier Conditions) by the Austrian playwright Yohann Nestroy, while Ukraine will be represented by the folk groups Shchedryk, Vesnyanka, Usmishka, Vesnadiya, Troyitskiy and Guldeste, performing folk dance miniatures, instrumental folk ensemble Chumatskiy Shlyakh and a performance of “Boyovy Hopak” – Cossack dancing.

As a special presentation, a mini-football tournament to celebrate the World Cup 2006 to be held in Germany (and Ukraine’s first-ever participation in this major sport event) was introduced this year. The competition, which will take place at the mini-football pitch at Khreshchatyk, will include a number of tournaments by a children’s, youth and women’s groups as well as a group that consists of dignitaries – politicians, diplomats, journalists, musicians and other celebrities.

As usual Europe Day will close with a concert at Maidan Nezalezhnosti starting at 6:30 p.m. The highlights of the show have already been announced, and they alone are reason enough not to miss the open-air show.

Apart from Ukraine’s own headliners TNMK and Vopli Vidoplyasova, expect Brainstorm from Latvia and the biggest star of the show – the Swedish band The Cardigans. The Cardigans have already visited Ukraine once, back in December 2003, touring in support of their previous album “Long Gone Before Daylight.”

Now they will come to Kyiv with their new melancholy rock album “Super Extra Gravity,” but surely they won’t leave their old hits “My Favorite Game” and “Lovefool” out of their performance.

Source: Kyiv Post

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Ukraine Attacks 'Charlatan' And His Booty-Shaking Babes

KIEV, Ukraine -- The Orthodox Church in Ukraine is not quite sure which part of Sunday Adelaja's weekly services it likes the least.

Sunday Adelaja

The dubious Russian pop and the pom-pom-waving Cossack dancers are certainly contenders. The hot babes in choir dress swaying to the music might win the vote of its many older and weaker-hearted clergymen.

Or it could be the thousands of Ukrainian teenagers squealing as the diminutive Nigerian pastor preaches the word of God.

In the 1,000 years that it has been in existence, the Ukrainian Orthodox Church has faced down many threats ranging from Reformation-era heretics to Soviet iconoclasts and modern day schismatics.

But never before has it had to see off an intruder who encourages his congregants to "shake their booty and praise the Lord". Mr Adelaja is a serious threat, even if it took the Church a while to realise it.

Twelve years ago, his Embassy of God church consisted of seven fellow Africans who used to gather in his Kiev flat.

Today he heads one of the fastest-growing Christian congregations in Europe, with 250,000 members in Ukraine alone. Among them is the first Protestant mayor of Kiev, elected to the post in March.

Quite something for a man who, thanks to a Soviet scholarship won in 1986, fled his impoverished Nigerian village at the age of 19 to escape the "witchcraft" that killed many of his family.

Alarmed at his burgeoning congregation, the Church has launched a counter attack, seeking to portray Mr Adelaja as a charlatan.

"Our main problem is that Sunday Adeleja has created a personality cult around himself," said Fr Evstratiy, a spokesman for the Kiev Patriarchate.

"Experts say he uses conscience manipulation techniques. He starts his sermons in a low, ingratiating voice, and gradually gets heated up to the point where he is running round the stage screaming." At a recent service at a Kiev ice hockey stadium 14,000 people crammed in to experience the effect.

As "Pastor Sunday" prepared to make a grand entrance, the choirgirls shook their pompoms, the disco lights started to flash and a fanfare sounded. The lights cut out, and Mr Adelaja emerged from a shroud of dry ice. Children holding flags of the world wafted round him and the choir bellowed "Sanctus!"

The congregation responded enthusiastically. Many danced in the aisles. With his eyes closed and brows furrowed in concentration, he raised his arms aloft. A hush fell over the audience.

"A man who is having problems functioning in his manly area, God is healing you," he intoned. "Those who are having skin problems, God is healing you."

On and on he droned, curing everything from buttock problems to bankruptcy. Some in the congregation wept, others bellowed hallelujahs. Ushers discreetly passed around collection boxes.

African preachers heading largely white European congregations are no longer such a rarity. Still, the 38-year-old stands out. Not only has he achieved a phenomenal conversion rate in the birth place of Russian Orthodoxy, he has also done it in one of Europe's most racist countries - one where skinhead attacks on ethnic minorities are reported on an almost daily basis.

"People would spit at me in the street, or call me 'monkey' and 'chocolate'," he recalled. "They thought it was an insult for a black man to preach."

He attributes his success to the fact that he reached out to the rejects of society: the drug addicts, criminals, prostitutes and the homeless; those considered by the Church to be beyond redemption.

But Mr Adelaja also owes something of his success to his appeal among the young. It was the young who were at the forefront of protests in Kiev's main square during the 2004 Orange Revolution that brought the pro-Western Viktor Yushchenko to power.

Orthodox luminaries supported his Kremlin-backed opponent. Mr Adelaja made no such mistake. Every day he joined the crowds and led them in prayer. Now he is reaping the rewards.

Source: Telegraph

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Ukraine's Yushchenko Criticizes Councils Over Status Of Russian

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko considers regional administrations have overstepped their authority by reinstating Russian as an official language, the president's press secretary said Friday.

President Viktor Yushchenko

Irina Gerashchenko said Yushehcnko disapproved of decisions made by the Lugansk Region and the Kharkov and Sevastopol city councils in largely Russian-speaking areas in the country's east and south to give Russian the status of an official regional language.

"The president expresses his deep concern over these displays of sovereignty, and believes the local councils have exceeded their authorities in making these decisions," she said.

The president has sent a letter to Prosecutor General Oleksandr Medvedko demanding that measures be taken to bring the decisions of the local councils into line with the country's constitution, Gerashchenko said.

Yushchenko has also asked Prime Minister Yuriy Yekhanurov to accelerate the process of forming a more efficient system of institutional and legal provisions for state-language policy, she said.

Many Ukrainians speak and understand Russian, which was the dominant language in the times of the Soviet Union, but Ukrainian became the country's sole official language after it declared independence in 1991.

Source: RIA Novosti

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Analysis: Ukraine, Poland Seek Reconciliation Over Grisly History

PRAGUE, Czech Republic -- When Ukrainian President Viktor Yushchenko and his Polish counterpart Lech Kaczynski travel together to the Polish village of Pawlokoma on May 13, they will be taking another step toward coming to terms with their nations' common historical legacy.

Ukrainian President Viktor Yushchenko (R), and Polish President Lech Kaczynski walk in front of the Presidential Palace in Warsaw, Poland, Friday, May 12, 2006.

One of the darker stains of that legacy is represented by the village of Pawlokoma, where ethnic Ukrainian inhabitants were killed by a Polish military group in 1945. The Ukrainian and Polish presidents will attempt to come to terms with that tragedy by unveiling a memorial to the victims during their visit.

Today, Pawlokoma is home to about 500 residents in southeastern Poland, 50 kilometers from the Polish-Ukrainian border. But prior to the outbreak of World War II, the Polish village boasted a population of 1,200 -- about 900 Greek Catholic (Uniate) Ukrainians living among Roman Catholic Poles.

Mass Killing

In March 1945, a detachment of Polish anti-Nazi guerrillas from the Home Army (AK) subordinated to the Polish emigre government in London shot to death hundreds of Ukrainian inhabitants of Pawlokoma. The Ukrainians were herded in a local Greek Catholic church, interrogated and likely tortured, and then taken to a local cemetery where they were executed.

Yushchenko and Kaczynski will travel on May 13 to Pawlokoma to unveil a memorial dedicated to that tragic event. An inscription on the memorial places the number of victims of the 1945 massacre at 365.

However, this figure is questioned by some Polish historians, including Zdzislaw Konieczny.

Konieczny -- who lives in the Polish town of Przemysl, some 40 kilometers from Pawlokoma -- is the author of a book on the Pawlokoma massacre. According to him, the AK group killed some 150 Ukrainian men in Pawlokoma -- while women and children were spared and ordered to march to Ukraine.

Konieczny argues that the massacre was retaliation for numerous killings of Poles from Pawlokoma and neighboring villages carried out by the Ukrainian Insurgent Army (UPA).

The UPA was created by the Organization of Ukrainian Nationalists (OUN) in Nazi-occupied Ukraine in 1942. The armed force pursued the ideal of an independent Ukraine, which led it to fight Polish, Soviet, and Nazi forces at various times.

Violent Retaliation

Konieczny said in an interview with the Polish daily "Nasz Dziennik" on May 10 that the immediate motive behind the massacre was the abduction by the UPA of a dozen Poles from Pawlokoma in January 1945. The then-Polish communist police in the area, according to Konieczny, were too weak to react to the capture, while Soviet troops were not trusted by the local population.

"In this situation the Polish pro-independence underground decided to conduct a retaliatory action in Pawlokoma, which had been known for anti-Polish manifestations. The purpose of [this action] was to warn the OUN-UPA that Poles would not tolerate its further attacks against and killings of the Polish population in Pawlokoma and neighboring villages," Konieczny told "Nasz Dziennik."

Petro Potichny, a Ukrainian emigre historian and UPA veteran, wrote a book on Pawlokoma in which he traced the history of the village back to the 15th century.

Poland's current eastern border with Ukraine and Belarus lies roughly along the Curzon Line. It originated as a demarcation line proposed in 1919 by the British foreign secretary, Lord Curzon, as a possible armistice line between Poland and Bolshevik Russia during the then-Polish-Soviet war.

Potichny told RFE/RL that the Pawlokama massacre reflects a wider pattern of the behavior of Poles toward Ukrainians during World War II along the ethnic Ukrainian-Polish borderland on both sides of the Curzon Line.

"It was not an isolated episode. It was, so to say, a [purposeful] policy of the Polish nationalist underground," Potichny said. "But not only that of the nationalistic underground. The communist authorities, too, did similar things. They primarily intended to finally remove Ukrainians from these lands. Therefore, Pawlokoma is just a symbol of all that."

But Potichny admits that Ukrainians, too, were responsible for the murderous Ukrainian-Polish war fought by the UPA and the AK during the Nazi occupation and afterward.

"If one is to attribute blame, one needs to say that the Ukrainians are mostly to blame for what took place east of the Curzon Line, while the Poles are mostly to blame for what took place west of this line," Potichny said.

History Of Reconciliation

In July 2003, the then-presidents of Ukraine and Poland -- Leonid Kuchma and Aleksander Kwasniewski, respectively -- met in the village of Pavlivka in the Ukrainian region of Volhynia to commemorate ethnic Poles murdered by the UPA in 1943. Kuchma and Kwasniewski unveiled a memorial to several hundred Poles killed by the UPA in that particular village.

According to Poland's National Remembrance Institute, in 1943 the UPA murdered some 60,000 civilian Poles in Volhynia, in anticipation of an independent Ukrainian state after the war and a plebiscite on which country, Poland or Ukraine, should possess the disputed area. The Polish AK subsequently resorted to retaliatory actions. According to Ukrainian estimates, the AK may have killed in retaliation as many as 20,000 Ukrainians in Volhynia.

The postwar period only added to the Polish-Ukrainian record of mutual wrongs and prejudices. In 1947, the Polish communist government forcibly resettled some 140,000 Ukrainians from their native areas in southeastern Poland to Poland's newly acquired northern and western territories. The official excuse for that mass expulsion was the desire to undercut the social base of support for the UPA in the area.

Closing Arguments

Will the Ukrainian and Polish governments manage to transfer their official determination to reconcile both nations over their history to ordinary Ukrainians and Poles? This may prove to be a tricky task. But as Polish historian Bogumila Berdychowska from Warsaw told RFE/RL, this task, if completed, could beneficially invigorate the development of Polish-Ukrainian relations, which in other respects are now almost exemplary.

"Closing historical accounts is very important for present-day politics," Berdychowska said. "The relations between independent Ukraine and Poland testify to one thing: There are no principal disagreements as regards contemporary politics [between the two countries]; there are no principal disagreements as regards economic relations. Actually, the only source of conflicts lies in history."

In 2002, Kwasniewski officially condemned the forcible resettlement of Polish Ukrainians by the communist authorities in 1947. Poles expected that Kuchma in 2003 would respond with an official apology for the wartime massacres of Poles in Volhynia. But Kuchma did not fulfill that expectation.

One should not expect any official apologies from either Yushchenko or Kaczynski in Pawlokoma. However, their meeting there seems to be a significant, even if small, step toward Ukrainian-Polish reconciliation.

Source: Radio Free Europe

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Friday, May 12, 2006

Cuneo: Kyiv's 'Dean' Diplomat

KIEV, Ukraine -- As a top diplomat, Miguel Angel Cuneo has to be both articulate and discreet, although he jokes that the only state secret he cannot reveal is his age.

Argentina’s ambassador to Ukraine Miguel Angel Cuneo says that diplomats do more than just “drink Scotch and champagne.”

But not an ounce of his Latin American wit is out of place when the Argentinean ambassador reflects facetiously on mistaken perceptions of diplomacy, as we sat down for a chat at his centrally located Kyiv office.

“One British diplomat said long ago that a diplomat is an honest man sent abroad to lie for his country,” Cuneo quipped.

“Well, we try to avoid giving people the impression that all we do is drink Scotch or champagne at high-level receptions. We do other things as well,” he said.

Cuneo can’t speak for all diplomats, but he does, formally, have the right to speak on behalf of the diplomatic community in Kyiv. Besides representing Argentina, Cuneo is also the Dean of Ukraine’s diplomatic corps – a position that remains a mystery for most of the country’s visitors and residents, apart from top state officials and Cuneo’s colleagues.

“The position of dean is a very old tradition,” Cuneo explained. The tradition goes back to the beginning of modern European diplomacy in the 15th century.

“In Catholic countries, as in Latin America or Spain, the head of the diplomatic corps is the representative of the Pope – the Nuncio. In other countries, it’s the ambassador who has served in the country for the longest period of time,” he said.

Cuneo was posted in Ukraine in 2000 and is currently the most senior, or longest-serving ambassador in Ukraine.

The position has nothing to do with the size of the Dean’s country or with its political or economical importance, according to Cuneo, who recalled how he was recently asked by his acquaintance why the dean is not the Ambassador of the United States.

The Dean, Cuneo said, is the formal representative of the whole diplomatic community in a particular country in the diplomats’ relations with the local authorities. Responsibilities include things like the ceremonial laying of flowers at the tomb of the Unknown Soldier on Victory Day or solving the residential problems of diplomats.

Cuneo says his duties may also involve booking a VIP room for a diplomatic delegation at the airport or buying a gift for a departing colleague. More often than not, says the Argentinean ambassador, he “just pushes a bit harder to ensure that the host country makes the life and work of the diplomatic corps as comfortable as possible, as agreed upon in international agreements.”

“There is a difference, of course, in complaining about something as an Argentinean ambassador and relaying a message on behalf of the sixty five ambassadors [who currently serve in Ukraine],” says Cuneo.

“But it’s a job you can’t quit. You get it automatically when the previous Dean leaves,” he adds. The previous Dean of the Diplomatic Corps in Ukraine was the Ambassador of Turkmenistan.

But for Cuneo, it may not be that difficult to combine the duties of the ambassador of Argentina and the Dean of the diplomatic corps. The energetic Latin American has served on diplomatic missions in Thailand, Vietnam, Paraguay and Russia, prior to coming to Ukraine.

Cuneo’s solid knowledge of Ukraine’s political scene and close ties with Ukraine’s Foreign Ministry took root when Cuneo worked for the Central and Eastern European Department at the Argentinean Ministry of Foreign Affairs in Buenos-Aires in the 1990s.

“Argentina has the fifth or sixth biggest community of the Ukrainian Diaspora in the world, with the first Ukrainian immigrant stepping onto Argentinean land in 1895,” notes Cuneo.

“And Argentina was one of the few countries to have recognized Ukraine’s independence for a short period of time after the First World War,” he adds, referring to the short-lived first Ukrainian republic.

Cuneo feels very enthusiastic about the development of economic and cultural relations between the two countries.

The only thing he desires is that airfares from Argentina to Ukraine get a bit cheaper, so that more Argentinean tourists and cultural tours could visit the country.

“One of my goals while I am still here is to promote stronger cultural links between the two countries,” says Cuneo with animation. “I would like to bring the Argentinean ballet and tango dancers to Ukraine, but it’s so expensive that we’ll need to find sponsors first.”

Source: Kyiv Post

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Ukraine Challenges Mittal Over Steel Obligations

KIEV, Ukraine -- Ukraine's State Property Fund said on Friday it would consider legal action against Mittal Steel as it says the world's top steel maker has not met obligations after buying the country's largest mill.


Mittal Steel denied the accusations.

Valentyna Semenyuk, head of the State Property Fund, said the privatisation agency would consider filing a suit to the international arbitration court if it did not receive a response from Mittal by a June 6 deadline.

She said the fund, having completed a review on May 5, was not satisfied that Mittal Steel had met its contractual and investment obligations.

Mittal Steel, whose $4.8 billion purchase of the Kryvorizhstal plant at a privatisation auction in October made it the largest single foreign investor in Ukraine, said it was meeting all contractual obligations.

The company's Ukrainian unit said in a statement it disagreed with the state property fund on the interpretation of some of these obligations.

"The company was genuinely surprised to see reports ... where the company is accused of failing to fulfil agreed obligations," it said.

Frank Pannier, chief of human resources and public affairs at Mittal Steel Kryviy Rih, said: "To talk about the annulment of the agreement due to disagreements in the interpretation of one article in the obligations, when all others are met -- and there are nearly 60 -- is illogical and wrong".

Mittal officials have sent a letter to the property fund, explaining the company's position and asking for a meeting with the head of the fund, the company said in a statement.

Semenyuk said a meeting was possible next week.

She said the fund had demanded Mittal Steel raise wages to a legal minimum and pay annual bonuses to employees based on 2005 results. Kryvorizhstal employs about 57,000 people.

Mittal Steel plans to invest about $1.2 billion to modernise the steel plant and mine more iron ore in the surrounding area.

Kryvorizhstal's sale to Mittal last year was hailed as one of the main successes of President Viktor Yushchenko during his first year in office after Ukraine's Orange Revolution.

The auction was meant to attract back western investors made wary by turmoil during his first months in office, and was ordered after a court overturned the initial sale of the mill to businessmen with links to former president, Leonid Kuchma.

Mittal Steel Kryviy Rih's sales would amount to about 4 billion hryvnias ($792 million) in the first four months of 2006, the company said.

Crude steel output was 2 million tonnes in the period, down 1.7 percent year-on-year, while rolled steel output rose 1.8 percent to 2.1 million tonnes in the same four months.

Source: Reuters

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Ukraine Helped By Soviet Legacy

ALCESTER, UK -- Germany 2006 might be Ukraine's first-ever World Cup appearance, but they have a rich footballing heritage - and a world-class striker in Andriy Shevchenko.


Many of the Soviet Union's players were Ukrainian, but when the Union collapsed in 1991 many of the players opted to represent Russia.

However, the defensive qualities the Soviets possessed appear to have been retained by the current Ukrainian team, as they only conceded seven goals in 12 qualifying games.

Such a record should send a warning to their Group H opponents - Spain and the outside duo of Saudi Arabia and Tunisia.

Coach Oleg Blokhin, a former Soviet international and Ukrainian hero, has reportedly promised that his side will qualify from their group and, to be fair, they should.

But Blokhin admits that he is concerned by the lack of players who are able to fill the boots of AC Milan hitman Shevchenko, if there are any injuries.

In an interview with the Associated Press, he said: 'I will not lie to you, I'm concerned by the level of our players, of our national team.

'I don't like how so much hope is being pinned on us. The boys are under huge pressure. We'll see what happens.'

Ukraine might not win the World Cup but Blokhin and Shevchenko alone should ensure they raise a few eyebrows along the way - even if the only English fans watching them are those hoping Shevchenko moves to Stamford Bridge in the summer.

Source: Vital Football Network

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Thursday, May 11, 2006

Exclusive: Kiev's £5.5 million ($10.4 million) Boyd Move

KIEV, Ukraine -- Dynamo Kiev want Kris Boyd - and they're willing to fork out £5.5 million ($10.4 million) to get him.

Kris Boyd

An offer from the Ukrainian club, who are ready to offer Boyd £1 million ($1.9 million) a year net, is on its way to Glasgow and now everything depends on what new Rangers manager Paul Le Guen thinks about the striker, who finished top scorer in the SPL this season.

Alex McLeish paid just £400,000 ($754,000) to get Boyd when he had six months left on his contract at Kilmarnock. Now Rangers could rake in a mammoth profit on their investment.

Kiev approached agent Raymond Sparkes to begin negotiations. Sparkes began the job of selling the player to Rangers in January but he is no longer his representative.

Last night Sparkes told Record Sport: "I can confirm the identity of the club and the sums of money involved are accurate.

"But I've told Kiev I'm not in a position to know what Rangers would, or would not, accept for Kris. They can take their query to Ibrox."

Meanwhile, Austria Vienna star Libor Sionko will sign a three-year deal with Rangers on Monday.

Le Guen has been tracking the 29-year-old Czech Republic midfielder for the past month.

Sionko said: "I will travel to Glasgow on Monday."

The player is available on a Bosman after knocking back an offer to stay in Vienna for a further year.

He claims he is waiting for an unnamed European side to confirm their interest before deciding his future but a three-year deal will lure him to Ibrox.

Source: The Daily Record

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Hotel Business Expanding In Ukraine

KIEV, Ukraine -- Recent trends in Ukraine’s hospitality industry suggest that although the shortage of quality hotels remains an issue, the industry has been exhibiting strong signs of growth.

The Rixos Hotel Prikarpatye is located in the quiet western Ukrainian resort town of Truskavets.

In addition to several international operators that successfully entered the market last year, small privately-owned hotels have also been proliferating, especially in western Ukraine.

Lyudmila Meshcherskykh, the head of the State Tourism Administration, said that more than Hr 2 billion ($400 million) was invested into improving and widening Ukraine’s network of hotels in 2005, a 40 percent increase from the Hr 800 million ($160 million) invested the year before.

Contributing to this growth in investment was the opening of several large four- and five-star hotels in 2005, most notably the Radisson SAS in Kyiv, the Rixos Hotel Prikarpatye in Truskavets (Lviv region) and the Opera Hotel in the city of Lviv.

Radisson SAS opened a four-star, $57.3 million hotel with 235 rooms in what is known as Kyiv’s diplomatic district in 2005. The Turkish hotel operator Rixos opened its five-star Prikarpatye hotel complex with 370 rooms and a diagnostic medical facility in the spa town of Truskavets the same year. Lviv’s Opera Hotel opened in March 2006.

These openings have added to a growing network of higher-end hotels that includes the Donbass Palace in Donetsk and Kyiv’s Premier Palace, both considered five-star. Premier Palace is part of Ukraine’s first national hotel network, Premier Hotels, which comprises the Oreanda in Yalta, the Dnister in Lviv, the Star in Mukachevo, the Londonskaya in Odessa and the Kosmopolit in Kharkiv, all being four-star.

Last month, Hilton International announced that it would open its first hotel in Ukraine on Tarasa Shevchenka Boulevard in Kyiv. The $70-million, five-star luxury hotel is slated to be completed in mid-2009 and will offer 257 rooms, suggesting that this niche of the hotel market will continue to expand in the near future.

According to the hotel chain’s April 20 press release, Hilton will operate the hotel for 20 years under agreements signed with International Business Center Ltd and its wholly-owned subsidiary, Hotel Business Development Company. International Business Center is the owner of the assets in the Hilton Kyiv project.

With their first-class accommodations and range of services, including wireless Internet, executive suites and conference halls, the clientele of these hotels is largely comprised of business tourists and travelers who do not find their rates prohibitively high.

At the Opera Hotel, for example, prices range from about $84 a night for a standard single room to $305 a night for a two-room deluxe suite. Prices at the Radisson SAS range from approximately $306 for a standard guestroom to $580 for a one-bedroom suite.

The hotel market for travelers with more modest budgets is also growing, according to Meshcherskykh, although its scope is nearly impossible to measure. She noted that the growing number of small hotels is hard to gauge because they often don’t report their revenues, expenditures, or how much they’ve invested in expansion to government agencies.

The occupancy rate for Ukraine overall was roughly 20 percent in 2004, based on the State Tourism Administration’s statistics available for 2005. In 2004, Kyiv’s occupancy rate was 56 percent, said Meshcherskykh. This figure fluctuates monthly, depending on the season, and by large conferences or events held in the city, like Eurovision-2005, when reports of hotel shortages were legion.

The statistics are based on figures reported by legal entities, and thus reflect only a fraction of Ukraine’s hospitality industry, she added.

Officially, there are about 1,192 hotels in Ukraine. However, the number of unregistered providers of hospitality services makes the unofficial total much higher. Meshcherskykh noted that in Crimea alone the State Tourism Administration estimates that about 2,958 informal hotels operated as of 2004.

The number of tourists coming to Ukraine continues to rise, and a projected 19.6 million visitors are expected to come to Ukraine in 2006, the Administration reported on its website.

Meshcherskykh said “the Schengen visa zone is right on Ukraine’s border,” and with EU nationals no longer needing visas to Ukraine, the number of visitors from neighboring countries should continue to grow. The tempo of building new and often smaller hotels was the fastest in western Ukraine and Transcarpathia in 2005, she said.

Roman Motychak, the head of the external communications department at Optima Group, a holding which owns Optima-Capital, an asset-management company that invested approximately $3 million to $4 million into the Opera Hotel, said that the average occupancy rate for Lviv’s hotels is around 65 percent, quite high given the national average of 20 percent. The demand for the 51 rooms at the Opera Hotel, which opened in March 2006, has doubled in its first two months.

The hotel has the exclusive rights to use the Lviv Opera House’s image in the development of its brand, and with its furnishings and interior design, has capitalized on Lviv’s architectural richness.

However, Lviv’s city infrastructure is sorely in need of repair and continues to have problems with its water supply and sanitation and transportation systems, said Motychak.

For example, to provide its clients with a continuous water supply, in a city where the water is shut off for most of the day, the hotel has had to develop its own infrastructure and operates “entirely autonomously,” Motyshak said. The hotel also recently bought a power generator for the same reasons.

Without significant investment in improving Lviv’s infrastructure and public utilities, a growing number of tourists with more modest budgets will be hard-pressed to find clean, inexpensive hotel rooms with basic services.

The western Ukrainian resort town of Truskavets, known for its mineral springs, sanatoriums and medical treatment facilities, is another example of the rapidly expanding hotel market in the region.

The Turkish-owned Rixos Prikarpatye Hotel complex, which opened in September 2005, already reports a 60-80 percent occupancy rate, reaching close to 100 percent around the New Year, according to Pavlo Perevozchikov, a spokesman for Prikarpatye.

Like the other six hotels Rixos operates in Turkey and the one in Astana, Kazakhstan, the Prikarpatye, which opened in September 2005, has health and spa facilities that include a fitness center, indoor pool, Turkish baths, saunas and jacuzzi.

The hotel’s health center also has diagnostic and medical facilities that are not offered at any of Rixos’ other hotels and are the five-star hotel’s primary attraction. The Prikarpatye is currently expanding its treatment center, during which the hotel will be closed from mid-May to July 15, reopening with 370 available rooms for the summer season.

The Prikarpatye’s clientele consists primarily of business tourists and visitors from Russia and the CIS who’ve long come to Truskavets for medicinal reasons. Perevozchikov noted that the hotel has already held 30 conferences for a number of large Ukrainian and international companies, and has several planned for July.

Rixos opened the hotel in Truskavets because the “tourist potential” of the town is growing rapidly and because of the Naftusia mineral waters, though not as well known as some Swiss brands, are as, if not more, curative, he said.

Language barriers and limited medical coverage have kept visitors from Western Europe, the U.S., Germany, Poland, Israel and the Middle East few in number.

Although there are currently approximately 20-30 sanatoriums in the spa town, Perevozchikov added that “there is a lot of building going on in Truskavets,” mostly small privately-owned hotels, some of which offer just four or five rooms. He sees this as a sign that quiet Truskavets is quickly developing into a prime tourist location.

Source: Kyiv Post

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Gas, Corruption And Non-Transparency

WASHINGTON, DC -- The Ukrainian owners of the shady gas intermediary that was established to supply Turkmen gas to Ukraine and Europe have been revealed.


The Russian newspaper Izvestia reported that Dmytro Firtash and Ivan Fursin together control 50 percent of RosUkrEnergo (RUE). Their shares are held through Centragas Holding and administered by Austria’s Raiffeisen banking group.

The other 50 percent share in RUE, owned by Russian gas giant Gazprom, is held through Arosgas, which along with Centragas is registered in Austria.

In July 2004, RUE replaced Hungarian-registered Eural Trans Gas (ETG), which had handled gas imports to Ukraine in 2003-2004. ETG had itself succeeded a company called Itera, another foreign-registered gas trader.

On April 26, Izvestia cited an audit of RUE by Pricewaterhouse Coopers.

Another top-four international auditing firm, KPMG, had refused the job for fear of its reputation.

The Russian newspaper article’s timing was no coincidence, nor was the choice of Izvestia, which is owned by Gazprom. The leak came days after the U.S. Justice Department had revealed it was investigating links between RUE and organized crime. The Izvestia leak was coordinated with Firtash going public to the Financial Times and The Wall Street Journal.

Both Gazprom and the Ukrainian authorities had long claimed that they did not know who the 50 percent Ukrainian shareholders in RUE were. State-owned Gazprom was being deceptive, as RUE had been established, like its predecessor ETG, with the personal support of Russian President Vladimir Putin and then-Ukrainian President Leonid Kuchma.

On March 1, 2005, Ukrainian President Viktor Yushchenko said he still hadn’t received information about RUE’s owners. This is curious, as on Jan. 31, Ukraine’s Antimonopoly Committee announced that RUE had provided it with information about its owners. But, the AMC claimed this information was “confidential”.

On Feb. 1 this year, Yushchenko said that, based on information supplied to him by the AMC and the State Security Service, “there is no Ukrainian structure behind the enterprise.” This sounds like Yushchenko knew who the owners were, even though he denied it a month later.

The Ukrainian authorities could have demanded to know the Ukrainian shareholders at the gas talks held with Moscow in January, but they didn’t, or at least said they didn’t.

How could Ukrainian negotiators fail to notice Firtash’s involvement in the gas deal struck with Moscow this past January, which resulted in gas imports to Ukraine doubling in price?

Since then, the Ukrainian authorities have been disinclined to find out who’s behind RUE, lest the names reveal continuing tolerance of corruption in Ukraine’s energy sector. Herbert Stepic, head of Raiffeisen International, said on April 24 that the Ukrainian and Russian governments “have always known who the owners are.”

RUE predecessor ETG was reportedly run by top Kuchma advisor Serhiy Levochkin. Levochkin and Fursin were both in parliamentary speaker Volodymyr Lytvyn’s election bloc, which failed to make it into parliament in the March elections. Lytvyn had been head of the presidential administration until becoming parliamentary speaker in 2004.

According to a report by the Internet site Ukrayinska Pravda, part of Fursin’s 5 percent share in RosUkrEnergo goes to Kuchma. During Yushchenko’s presidency, Kuchma has not been questioned for abuse of office or other crimes in which he was allegedly involved.

Widespread suspicion points to Kuchma being given immunity during negotiations in December 2004, possibly at the insistence of the EU. If true, Kuchma’s immunity also came with a large unofficial ‘pension’ from RUE.

According to Ukrayinska Pravda, Firtash is the link between RUE and ETG. Firtash’s main business offices (High Rock Holdings) are in Moscow and offshore Cyprus, meaning most of Ukraine’s 50 percent share in RUE is run by a businessman from Moscow.

Firtash’s business partner, according to Ukrayinska Pravda, is deputy head of Ukraine’s state oil and gas company, Naftogaz Ukrainy, Ihor Voronin, who also played a role in the January gas agreement.

Voronin, according to this same report, has ties to the Russian FSB and was the go-between in the Kuchma era between Russia and Ukraine in energy talks.

Voronin, one of the founders of RUE, was removed as deputy head of Naftohaz Ukrainy by the government of former Prime Minister Yulia Tymoshenko, only to be reinstated with the support of top Yushchenko advisor Oleksandr Tretyakov, his longtime friend.

Voronin is also acting head of the newly established UkrGaz-Energo, a joint venture between RUE and Naftohaz Ukrainy.

In The Wall Street Journal, Firtash admitted that a company he had controlled once had as a shareholder Semyon Mogilevich’s wife, whose shares he took over. Mogilevich is an organized crime fugitive from the FBI living in Moscow, where he has official protection.

Speaking in London, Firtash further admitted: “I have met Mogilevich a few times. But I have never been in any partnership with him and have never done any business with him.”

Yushchenko expressed surprise at the Izvestia article and asked to see a copy of the PricewaterhouseCoopers audit. Why was Yushchenko surprised if he consistently defended the inclusion of RUE in the January gas agreement?

Why should one side of RUE be controlled by the Russian state (through Gazprom), while two little-known businessmen control the Ukrainian side? Ukraine has claimed that Russia forced RUE upon them while the Russian side said that Ukrainians proposed RUE.

Firtash, like many Ukrainian businessmen in 2004, supported both Yushchenko and his electoral opponent, Viktor Yanukovych, to ensure they came out on top, whoever succeeded Kuchma as president.

These early ties to Yushchenko were confirmed when Firtash allegedly chartered a plane for first lady Katya Yushchenko’s American-Ukrainian family to attend Yushchenko’s Jan. 23 inauguration. The flight was arranged by Tretyakov, and the cost ($270,000) was paid for by Firtash.

Many in Ukraine and abroad are dismayed at Yushchenko’s lack of political will to clean up the energy sector as part of his promise to combat corruption.

Some see Yushchenko’s former political ally Yulia Tymoshenko, widely regarded as a populist and an advocate of state capitalism in the West, as the only Ukrainian politician up to the challenge.

Yushchenko appears reluctant to appoint Tymoshenko prime minister in an Orange parliamentary coalition, despite her bloc winning more votes than Our Ukraine.

But if Yushchenko is committed to taking Ukraine into NATO and the EU, this requires battling corruption. The most corrupt sector of the economy is energy – an area that Yushchenko has been ironically unwilling to touch.

We can only reach the conclusion that Yushchenko has not found the political will to reform the energy sector and has left in place the same corrupt schemes in existence under Kuchma.

The only Ukrainian politician willing to take this problem on is Tymoshenko. Perhaps it’s time for the West to reevaluate its views toward her?

Source: Kyiv Post

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Ukraine, Georgia May Lose Economic Benefits If They Leave CIS

MOSCOW, Russia -- Russian government is considering canceling economic benefits for Georgia and Ukraine if they decide to withdraw from the Commonwealth of Independent States (CIS), a Russian government source said on Sunday, May 7.


The statement was made after Georgian Foreign Minister Gela Bezhuashvili said that Georgia had started consultations with Ukraine on their joint withdrawal from the CIS, a loose economic and political association of former Soviet republics.

“In the wake of statements made by the leaders of Georgia and Ukraine about the possibility of their withdrawal from the CIS, the government of Russia is considering canceling a number of benefits, which these states enjoy within the CIS,” the source said, quoted by RIA Novosti.

“No doubt, in this case Russia will review many agreements and accords concluded within the CIS, including in the social sphere.”

Russian experts say Georgia’s withdrawal from the CIS will mean for a rupture or considerable weakening of traditional economic and humanitarian ties with Russia and other CIS countries for the majority of the country’s population.

Experts say Georgia could sustain the greatest losses in this case in the economic sphere, in particular, in agriculture, which employs half of the republic’s working population and the products of which are sold mostly in the CIS countries.

According to Russian experts, it would be difficult for Georgia to find alternative markets because its products are frequently of low quality.

The search for alternative markets would reduce the republic’s export revenues and would lead to agricultural product overstocking and the bankruptcy of agricultural producing and processing businesses. This would also lead to a higher unemployment rate.

According to official figures, there were 370,000 unemployed in Georgia in mid-2005 — 18 percent of the workforce. According to unofficial figures, the unemployment rate was as high as 40 percent.

Georgia’s withdrawal from the CIS would also affect the republic’s energy sector, which covers only 40 percent of the country’s energy needs, while 60 percent of electricity is largely supplied from Russia, experts say.

Source: MosNews

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Opinion Poll: Almost 50% Of Ukrainians Support Reviving The Orange Revolution Coalition

KIEV, Ukraine -- Almost 50 percent of Ukrainians want the former Orange Revolution allies to reunite and form the governing coalition in the new parliament, according to an opinion poll published Wednesday.

Yulia Tymoshenko (L) and Olexander Moroz

The poll by the Democratic Initiatives Foundation found 47.1 percent of respondents supporting a coalition of President Viktor Yushchenko's party, the bloc of his estranged ally Yulia Tymoshenko and the Socialist Party. That is several percentage points higher than the share those three parties totaled in March 26 elections.

Talks to get a new government in place have dragged on since the election, in which no party won a majority. The Party of Regions, led by Yushchenko's Orange Revolution foe Viktor Yanukovych, was the single largest vote-getter.

Support for a coalition between Yushchenko's and Yanukovych's parties was nearly 38.5 percent, the poll found.

The Orange Revolution consisted of a month of massive protests in Kyiv that broke out after a fraud-plagued presidential election that official results showed Yanukovych winning. The Supreme Court eventually ordered a rerun, which Yushchenko won and the Western-leaning reformer took office in January 2005.

However, his tenure has been troubled by infighting, most notably with Tymoshenko, whom he named prime minister but then dismissed in September.

Tymoshenko wants to be restored to the premiership, which appears to be the key issue blocking establishment of a coalition.

The poll found that 35.2 percent of those surveyed supported Yanukovych for the prime minister job, with 31.6 percent wanting to see Tymoshenko in this position. All other candidates were far behind.

The newly elected parliament must convene by the end of May. Once parliament meets, it will have one month to form a coalition - or risk having Yushchenko dissolve it and call new elections. The parliamentary coalition gets to name the prime minister and many of the Cabinet jobs.

The poll surveyed 2,030 Ukrainians from April 27 to May 4. The margin of error was 2.2 percent.

Source: AP

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Ukraine Preparing To Play In Its First Ever World Cup

KIEV, Ukraine -- A lack of World Cup experience isn't going to stop Ukraine from dreaming big. The former Soviet republic proved it was a threat to challenge for the title when it became the first European team to qualify for the final tournament.

AC Milan's Andriy Shevchenko

Ukraine beat out Turkey, which reached the semifinals at the last World Cup, European champion Greece and Denmark for the coveted slot.

At the World Cup, the Ukrainian team will face Spain, Tunisia and Saudi Arabia in Group H.

Led by one of the world's top strikers, AC Milan's Andriy Shevchenko, Ukraine also has a top-notch goalkeeper in Oleksandr Shovkovskiy and solid defenders.

The team allowed only seven goals in its 12 qualifying games - and three of those came in games after the team had secured its berth.

Ukraine is coached by Oleh Blokhin, a Soviet soccer star who is worshipped by his team and this nation of 47 million.

"There is a kind of euphoria now that we have for the first time in 15 years reached the World Cup finals," Blokhin said recently.

Ukraine is home to 1999 Champions League semifinalist Dynamo Kyiv, but the country has been slow to make its mark internationally. Many of the key players in the Soviet national team hailed from Ukraine, but with the 1991 breakup of the Soviet Union, they choose to play for Russia.

Since its independence, Ukraine saw its hopes of entering the World Cup dashed twice at the last stage. When it qualified last September, hundreds of fans turned out at the airport to cheer the exhilarated team.

Now posters of the players dot Ukraine's picturesque capital, and excitement about the tournament is building. Ukrainians also take a certain pride in the fact that they are the only ex-Soviet republic to have won a berth, while the country's former master, Russia, is sitting out.

"I don't like how so much hope is being pinned on us," Blokhin told the Ukrainian weekly news magazine Kommersant. "The boys are under huge pressure. We'll see what happens."

Ukraine got lucky with a comparably easy draw, but it’s not so lucky in that it must make its World Cup debut against group favorite Spain. Ukraine met Spain twice in 2004, drawing once and losing 2-1 after a tough battle.

"Our first task is to qualify from the group," Blokhin said.

Saudi Arabia has immersed itself in numerous back-to-back friendly matches to prepare, and Blokhin admits that team is "the biggest mystery of the group." Tunisia won the African Cup of Nations and is packed with players who play for top European clubs, he said.

Ukraine comes to the tournament as a well-coached and well-disciplined team. But critics say the team tends to rely too heavily on Shevchenko.

However, Shevchenko's star power - he won the Golden Ball in 2004 - can also be used to Ukraine's advantage. Sometimes, opposition teams concentrate all their attention on him, freeing up other players such as Bayer Leverkusen's Andrei Voronin, a powerful striker in his own right.

Ukraine also has a strong defense, with the added advantage that many play together on club teams, giving them a well-worn familiarity.

The major weaknesses: a talented midfield that doesn't always shine and the lack of experienced reserve players. If Shevchenko is struggling, the whole team struggles.

"I will not lie to you," Blokhin told Korrespondent. "I'm concerned by the level of our players, of our national team."

Blokhin, though, has expressed doubts in the past – but has still come through. He played for the Soviet Union in the 1982 and 1986 World Cups and promised that he would take Ukraine to the tournament. Many were disheartened when they saw Ukraine's qualifying group - one of the hardest - but Blokhin pulled them through.

Now, he's promised he'll get them through the World Cup's first round.

There's an attitude of "now let's go and win the competition," Blokhin said. "I think that is not the way things happen. Although all 32 countries have an equal chance."

Source: AP

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Ukraine Criticizes Mittal Over Salaries

DUE TO A PROBLEM WITHIN THE BLOGGER SYSTEM, WE COULD NOT PUBLISH SINCE SUNDAY, MAY 7th. GOOGLE HAS NOW FIXED THE BUG AND WE ARE BACK ON THE AIR.


KIEV, Ukraine — Netherlands-based Mittal Steel Co. on Wednesday rejected the Ukrainian government's complaint over salaries at the giant steel mill it purchased in the ex-Soviet republic last year, insisting it was fulfilling its ownership obligations.


The State Property Fund, which oversaw Mittal Steel's purchase of Kryvorizhstal from the state, warned last week that it might sue the company if did not fulfill what it called a promise to increase salaries within 30 days.

Mittal Steel countered in a statement that it has fulfilled almost all of its 60 obligations and accused the property fund of misinterpreting one of its obligations.

"To talk about breaking off the deal because of existing disagreements in interpreting one clause of the obligations ... is illogical and wrong," plant spokesman Frank Pannira said in a letter to Valentyna Semenyuk, the head of the State Property Fund, according to the statement.

Company officials refused to elaborate.

Neither the property agency nor the company's letter went into details. The mill's workers had always been considered some of the best paid in Ukraine.

Mittal Steel bought the Kryvorizhstal mill for 24.2 billion hryvna (US$4.8 billion; euro4.1 billion) in Ukraine's biggest and most profitable privatization auction ever.

The sale fetched for Ukraine a price nearly six times higher than the amount it went for a year earlier, under former President Leonid Kuchma, in a sale that was later declared illegal.

Source: AP

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Tuesday, May 09, 2006

Ukraine Rock Battles Russian Pop

KIEV, Ukraine -- The Ukrainian capital has hosted a new rock festival billed as an attempt to roll back a tide of Russian pop and promote the country's alternative music scene.


Organiser Oleg Skrypka is a rock legend in Ukraine

Almost 50 bands performed over two days at Kiev's Rock Sich festival, whose slogan was "Live sound! No to pop! Yes to the Ukrainian language".

The festival's name "Sich" harks back to a kind of training camp for Ukrainian Cossacks that was a feature of the late Middle Ages.

The idea is that Ukrainian rock musicians are defending the country's music and culture from Russian pop in the way that Cossacks once defended the Ukrainian steppe from the Ottoman Turks.

Along with some well-known and successful bands, Rock Sich provided a platform for groups trying to make their mark in the tough world of Ukrainian showbusiness. Their music can be described as "non-formal" - a term adopted by the music industry in former Soviet countries and better known in the West as Indie.

Hand-picked by the festival's organiser, veteran Ukrainian rocker and cultural patriot Oleg Skrypka, they had to fulfil three festival conditions:

- To sing professionally and live (ie - not miming)

- To play rock, hip-hop or anything other than pop

- To sing in Ukrainian.

"Since the Orange Revolution [in 2004] Ukraine has been undergoing a cultural renaissance," believes Skrypka, who for this occasion swapped his famous Ukrainian-style embroidered shirt for a rocker's leather jacket.

"But if we don't support it, it will die away."

Ukrainian TV channels and FM radio stations choose to play generic Russian pop music, known to keep listeners happy, rather than risk experimenting.

Even 15 years after independence, the Ukrainian language remains a minority tongue in many parts of Ukraine, often spoken only in the countryside or by intelligentsia and state officials.

Unique chance

Skrypka is a cult figure in Ukraine - a doer of good deeds, a rock legend and an ingenious stage performer, a kind of Ukrainian Bob Geldof, Mick Jagger and Robbie Williams fused into one.

He started out 20 years ago as lead singer in the country's oldest rock-band, Vopli Vidopliasova or VV ("vopli" means "screams" and Vidopliasov is a character from a Dostoyevsky novel). He evolved into an icon, but not merely for his rock cool.

Skrypka tried to make it in France as a rock musician in the early 1990s but came back to Ukraine in 1997. His hit Vesna (Spring) propelled him and his band to stardom, both at home and in neighbouring Russia.

For the last few years he has been producing an ethnic music and arts festival, Kraina Mriy (Land of Dreams), in Kiev. In the summer of 2004, a few months before the Orange Revolution, the festival became a rare place where the then opposition leader Viktor Yushchenko could address the people.

During the liberal, pro-Western Orange Revolution, VV and many other bands tirelessly performed in front of the crowds in the centre of Kiev.

Oleg Skrypka believes that now is a unique chance to give Ukrainian culture a boost of confidence and his new venture - a rock festival calling on the musicians to become Cossacks for a weekend - will, he hopes, become that needed boost.

"We are now faced with a situation where, after the Orange Revolution, it's possible for Ukrainian music to carve out a place for itself in society and in the media," he says.

"If we don't do it now, we'll have the same thing as happened in Russia, where alternative music is frozen deep underground and what's left on the surface is rock dinosaurs."

Source: BBC News

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Monday, May 08, 2006

McDonald’s Supplier Expands

KIEV, Ukraine -- Agrosolutions, a Ukrainian subsidiary of OSI International Foods GmbH, has launched cattle-raising operations in the Kyiv region that will provide McDonald’s with its first meat-producing farm for its operation in Ukraine.


OSI International Foods is the German subsidiary of U.S.-based OSI, the principal meat supplier for McDonald’s globally. OSI is one of the largest privately-held food companies in the world, with an annual turnover exceeding $2 billion from operations in 85 countries around the world.

In mid-April, McDonald’s opened a new restaurant in Kyiv, making it the fast-food giant’s 22nd restaurant in the capital and its 55th in Ukraine, since launching its operations in the country in 1997.

McDonald’s said in an April 13 press release that the Agrosolutions farm, located in Kyiv region’s village of Dulitske, currently raises 1,000 head of cattle and plans to double that number by the end of this year. Eventually, Agrosolutions aims to raise the number of cattle at the farm to 10,000.

For comparison, according to the State Statistics Committee, Ukraine’s cattle population numbered about 7.1 million head of cattle as of the end of March.

According to McDonald’s, Agrosolutions, which leases the Dulitske site from a local farmer, has modernized two of four facilities at the site and is currently modernizing the remaining facilities at a cost of $1 million.

“It is planned to complete the reconstruction of the entire farm in 2006, and starting in 2007, to expand the practice of raising cattle for quality meat on other farms,” McDonald’s said in its press release.

The start-up of the Dulitske cattle farm follows an earlier move by OSI to make inroads in the Ukrainian meat production market. The company began grinding out beef patties for McDonald’s at Vinnytsya region’s Kozyatyn Poultry Plant, its first Ukrainian meat-processing line , via its Ukrainian subsidiary Eska Food Solutions, starting in May 2003.

Eska Food Solutions supplies McDonald’s with all of its beef needs in Ukraine. Initially leasing the Kozyatyn plant’s premises to install a processing line in the Soviet-era plant, a project that cost the company $1.7 million, OSI obtained permission from Ukraine’s Antimonopoly Committee at the start of this year to acquire more than 50 percent of the shares in the plant, giving it a controlling stake in the plant.

According to McDonald’s, the Kozyatyn plant has processed more than 120 million hamburger patties made from “100 percent beef” for McDonald’s Ukraine, since launching the line at the plant in the spring of 2003, and produces 190-220 tons of processed beef a month. That works out to about 2,200-2,600 tons of beef a year.

For comparison, according to the State Statistics Committee, Ukrainian farms produced 177,200 tons of meat by live weight in March and a total of nearly 2.4 million tons last year.

According to the State Foodstuffs Department, Ukrainian meat-processing facilities produced nearly 46,000 tons of high-quality meat products in February and a total of nearly 565,000 tons in 2005.

Hartmut Schimetschek, director of OSI International Holding, said at the time of the acquisition of its stake in the Kozyatyn plant that the move was part of OSI’s strategy to develop an integrated supply chain for beef in Ukraine.

The company’s recent expansion on Ukraine’s meat-producing market comes as the Ukrainian Agriculture Ministry is upbeat regarding growth for the industry.

Agriculture Minister Oleksandr Baranivskiy has forecast at least a 10 percent rise in Ukrainian meat production this year, as well as a significant drop in meat imports into the country. Meat exports, he said, would outweigh imports in 2006.

At a Cabinet of Ministers meeting on April 12, Baranivskiy said that in 2005, Ukraine imported about 195,000 tons of meat compared with the 300,000 tons it imported the year before. The Agriculture Ministry has forecast that meat imports into Ukraine would halve to 100,000 tons of meat this year.

As for exports, Baranivskiy said Ukraine would export between 120,000 and 130,000 tons of meat this year.

Source: Kyiv Post

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Sunday, May 07, 2006

Ukraine's Bickering 'Orange' Allies Vow Coalition Pact Within Weeks

KIEV, Ukraine -- Ukraine's bickering "orange revolution" allies said that they would finalize a coalition pact to form a new government within weeks, but it remained unclear whether Yulia Tymoshenko would get the powerful new premier's post in the union.

President Viktor Yushchenko

"Today's talks have moved democratic forces closer toward consensus," President Viktor Yushchenko told reporters after holding talks with winners of the March 26 parliamentary ballot.

"I have an impression that the deadline of May 24 is quite acceptable" for agreeing the main points of a coalition agreement, he said, referring to the date that the newly-elected Upper Rada legislature is expected to hold its first session.

Talks between Yushchenko's party and its estranged "orange revolution" allies have been deadlocked since the March 26 elections over the issue of who will become prime minister, with expanded powers under constitutional changes that came into force this year.

Yulia Tymoshenko, the fiery populist who split with the president after he fired her as prime minister last September and who trounced Yushchenko's party in the March ballot, has demanded that she return to head the government in any coalition.

But the Ukrainian president is widely believed to distrust his ambitious and charismatic one-time ally and analysts here say he is trying to limit her influence in any union.

Following her talks with the president on Friday, Tymoshenko said a coalition agreement would be finalized next week.

"We agreed that on (May) 10th or 11th we'll be reading a completed draft of the coalition agreement," Tymoshenko told reporters.

But the issue of her premiership continued to be a point of contention.

"It think that it is becoming more unlikely," acting premier Yury Yekhanurov, who is leading the talks on behalf of Yushchenko's Our Ukraine party, said when asked whether Tymoshenko would become the new premier.

But Olexander Moroz, the leader of the Socialists, countered: "In my opinion, the further we go, the likelier this possibility gets."

The estranged "orange" allies -- the president's Our Ukraine, Tymoshenko's bloc and the Socialists -- will hold 243 seats in the 450-member Upper Rada legislature following the March ballot.

The pro-Russian opposition Regions Party and its likely allies the Communists will hold 186 and 21 seats, respectively.

Source: AFP

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Ukrainian Nationalists Urge Pres To Defend Ukrainian Language

KIEV, Ukraine -- Leaders of Ukraine’s ultra-radical party calling itself the Congress of Ukrainian Nationalists (CUN), which is known for its staunch opposition to the attempts to legitimize the Russian language in this country, have urged President Viktor Yushchenko to convene a meeting of the National Security Council for discussing the language situation in the country.

CUN leader Alexei Ivchenko

The nationalists claim that decisions of some regional and local councils to give Russian the status of a regional language in the line with the European Charter for Regional or Minority Languages put in jeopardy Ukraine’s national security.

“Such actions jolt the foundations of Ukraine’s statehood,” CUN’s leaders insist.

They urge “society and the authorities to rise to the defense of the Ukrainian language as an essential asset of the country’s independence and uniqueness of the Ukrainian nation.”

Local councils in the mostly Russian-speaking city of Kharkov, which is a vital center of industries, science and education in the Northeast of the country, as well as in the easternmost Lugansk region and the naval port city of Sevastopol in the Crimea, where the Russian Black Sea Fleet runs a major base, endorsed resolutions recently declaring Russian a regional language on their administrative territories.

CUN is part of Our Ukraine political bloc, which supports President Yushchenko and which emerged the third biggest winner of votes from the March 26 parliamentary election.

CUN’s leader, Alexei Ivchenko, holds the post of Chief Executive Officer in the national oil and gas monopoly Naftogaz Ukrainy.

CUN’s history goes back to 1929, when the territory of nowadays Ukraine was split among several countries, including the USSR, Poland and Romania.

The best-known historical leader of the organization was Stepan Bandera, a landmark figure for Ukrainian nationalist movement.

Source: ITAR-Tass

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Saturday, May 06, 2006

Ukraine Found Way Out of CIS

VILNIUS, Lithuania -- Kiev followed the example of Tbilisi yesterday and announced tat it is seriously questioning the expediency of membership in the Commonwealth of Independent States. That announcement was the main outcome of the Vilnius summit of heads of the Baltic and Black Sea states.

Deputy Minister of Foreign Affairs of Ukraine Vladimir Ogryzko

Unlike Georgia, which has nothing to lose from its departure from the CIS, Ukraine's separation presents a number of problems.

The press service of Ukrainian President Viktor Yushchenko organized a special briefing on the future of the CIS by the head of the foreign relations service of the president's secretariat Konstantin Timoshenko. Mr. Timoshenko reported that the Ukrainian leadership is not satisfied with the effectiveness of the organization's functioning and that the president is seriously considering Ukraine's withdrawal from it.

“Unless something changes, the question of Ukraine's withdrawal from the CIS will become a practical plan, if not tomorrow, then in the near future,” Timoshenko said.

The presidential adviser's appearance was the apotheosis of a series of anti-CIS moves by Ukrainian authorities. For a week, various officials have been harshly criticizing the CIS. Ukrainian Deputy Foreign Minister Vladimir Ogryzko set the tone when he stated during a visit to Moscow that Kiev is disappointed the CIS has turned from an organization of action to an organization of conversation.

He said that Ukraine has repeatedly made specific proposals within the CIS and none of them were developed by the organization.

Ogryzko cited the example of President Yushchenko's proposal to set up common border protection for the CIS countries, which was ignored. “Will there be any desire to make new proposals after that? The question arises as to why we need that shell? For business or as a club?”

The Ukrainian Security Council followed the Foreign Ministry. Its secretary Anatoly Kinakh hit at a sore spot when he said that the CIS has lost its economic meaning. “Hundreds of documents have been passed by the CIS, but they are not implemented. The procedure for creating a free trade zone between member states has not been completed,” he recalled.

Yushchenko did not touch on the topic of the CIS directly at the Vilnius summit. But it was clear from his speech at the forum that the CIS is not the future Kiev has in mind. Yushchenko called maximum closeness to NATO and the European Union the main goals of his presidency. “It will be a great honor for me to solve those problems,” he said.

“There is no worthier challenge for our political elite today.” The Ukrainian president said it was possible that he plan to begin the process of joining NATO would be put into action at the November meeting of the organization in Riga. The storm of criticism of the CIS coincided with the Vilnius summit.

Most observers agree that the countdown to the dissolution of the CIS has begun. The presidents and foreign ministers of the Baltic, Eastern European and Scandinavian countries were present at the summit and its main moderator was U.S. Vice President Dick Cheney.

In his speech, Cheney criticized Moscow's policies in the former Soviet Union and stated that they pose a threat to democracy. Cheney praised Russia's neighbors and held up Ukraine and Georgia as examples for the other former Soviet states.

Kiev and Tbilisi took that praise as a signal to act. The statements by Ukrainian leaders came immediately after Georgia, another country of triumphant democracy, expressed the same intentions.

Georgian President Mikhail Saakashvili has instructed the Georgian administration to determine the advantages and disadvantages of CIS membership. Georgian politicians immediately informed the head of state that the advantages of CIS membership were extremely few.

Chairman of the Parliamentary Committee on Foreign Affairs Konstantin Gabashvili stated that “the only advantages of the CIS were visa-free travel and free trade and without them membership loses all meaning.” Georgia and Ukraine are in different positions, however.

Georgia has nothing to lose, since visa and trade wars have been in progress against for a long time. Relations between Ukraine and Russia, despite their disagreements, have been privileged.

Russian politicians threaten the leaders of the color evolutions with big economic problems in response to their anti-CIS initiatives. Vadim Gustov, chairman of the Federation Council Committee on CIS Affairs, predicted high unemployment in Ukraine, reconsideration of economic agreements and higher energy prices.

“The Ukrainian economy is oriented toward the Russia. The Russian market is basic for Ukrainian goods. No one needs their goods in Europe, and whom Ukraine will sell them to outside the CIS is a big question,” he said. He called the criticism of Russia at the Vilnius summit “a return to the Cold War.” “A sanitary corridor is being created around Russia and Ukraine has been pulled into that game,” he said.

Gustov was seconded by chairman of the Duma Committee on Foreign Affairs Konstantin Kosachev, who said that Kiev and Tbilisi are pursuing a policy of deteriorating relations with Russia to speed up the process of integration with Western European and Transatlantic structures.

“I'm afraid that counting on easing that integration is mistaking wishes for facts. No one in those structures is waiting for Georgia or Ukraine,” Kosachev commented.

The parliamentarians' statements are only warning. Russia has shown how it treats incompliant neighbors more than once. The gas war with Ukraine and the trade wars with Georgia and Moldova are from the only means of exerting pressure that Russia has at its disposal.

If Ukraine decides to leave the CIS, Russia could make travel from that country subject to receipt of a visa. Moreover, Russia could cancel the policy implemented two years ago that allows Ukrainians to stay in Russia for up to three months without registration. Those measures could have much more unpleasant effects for Ukraine than the wine war does for Moldova.

In Kiev, they are convinced that the matter will not reach those extremes. “We have never descended to such crude means of influence as import prohibitions on made-up pretenses based on sanitary norms,” press secretary of the Ukrainian Foreign Ministry Vasily Filipchuk told Kommersant.

He said that Moscow should learn he lessons of last year's gas war. “Judge for yourself who suffered more. After that, the world community began to doubt Russia's reliability as an energy resource provider. Moscow only harms itself with such steps,” he said.

Source: Kommersant

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Some Russians Talk Of New Cold War

MOSCOW, Russia -- Russian media on Friday described Vice President Cheney’s harsh criticism of Russia and President Vladimir Putin as the start of a new Cold War.

On Thursday in Lithuania, Vice President Cheney said Russian President Vladimir Putin was cracking down on religious and political rights.

Cheney’s words Thursday at a conference in Lithuania drew a comparison to Winston Churchill’s famed “Iron Curtain” speech and reflected the deepening distrust between Washington and a newly assertive Kremlin.

The official Russian response to Cheney’s speech has been cautious. But angry reaction from politicians and pundits favorable to the Kremlin reflects a chill between two presidents who seemed to hit it off early in their relationship.

In his speech, Cheney accused Russia of cracking down on religious and political rights and of using its energy reserves as “tools of intimidation or blackmail.”

Opponents of reform in Russia, the vice president said, “are seeking to reverse the gains of the last decade” after the 1991 collapse of the Soviet empire.

There was no public reaction from Putin or the government.

But the business daily Kommersant said Cheney’s comments marked “the beginning of a second Cold War” and recalled Churchill’s speech condemning Soviet expansionism in Eastern Europe with the “Iron Curtain” label that defined the East-West divide for decades.

Foreign Minister Sergey Lavrov refrained from criticizing Cheney but condemned the meeting in the Lithuanian capital, Vilnius, which brought together pro-Western leaders of former Soviet republics.

“Over the past years, many forums have been created that reflect the desire of the respective states … to pool their efforts to achieve common benefits,” Lavrov said. “But there are forums that create an impression … that they are convened … for the sake of uniting against someone.”

Cheney’s criticism – some of Washington’s toughest language about Russia – came two months before President Bush is to join Putin in St. Petersburg for a summit of the Group of Eight industrial powers.

“The speech effectively eliminates the vestiges of strategic partnership between Russia and the United States. And if U.S. President George W. Bush confirms the stance, the idea can be buried,” said pro-Kremlin political analyst Gleb Pavlovsky, the Interfax news agency reported.

Many Russian commentators said the venue for Cheney’s speech – Lithuania, a nation struggling to recover from a half-century of Soviet domination – has made the blow even more painful for the Kremlin.

“By attending the forum, the United States has sent a message to Russia and those countries: We aren’t leaving, we consider the region part of our sphere of interests,” Liliya Shevtsova of the Carnegie Endowment’s Moscow office said.

Moscow complains that the U.S. and other Western countries are encroaching on its traditional sphere of influence, while the West accuses the Kremlin of bullying its neighbors, using energy as a weapon.

Russia’s state-controlled natural gas monopoly, Gazprom, has sharply increased prices for gas supplies to Ukraine, Georgia and other Westward-looking former Soviet nations in what is seen in the West as a political move.

The gas dispute with Ukraine, Putin’s invitation to Moscow for the Palestinian militant group Hamas and a tough stance against sanctions on Iran all highlighted a newly assertive Kremlin course based on Russia’s growing energy power.

“Huge windfall revenues have encouraged a sense of power, a feeling that Russia can do what it wants and ignore others,” said Fyodor Lukyanov, the editor of Russia in Global Affairs magazine. “Russia feels that it has become strong enough to act without taking into account the positions of the United States and the European Union.”

Lukyanov and other analysts predicted that escalating tensions could tarnish the St. Petersburg summit, which the Kremlin touted as a showcase of its growing global influence.

Source: AP

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Ukraine May Exit Post-Soviet Alliance

KIEV, Ukraine — Ukraine is disappointed with the Commonwealth of Independent States, a loose alliance of ex-Soviet republics, and may consider withdrawing if the group cannot prove its usefulness, a senior aide to President Viktor Yushchenko said Friday.


"If there aren't going to be results, this question will arise, if not tomorrow then in the nearest future," said Kostyantyn Tymoshenko, Yushchenko's foreign policy adviser.

The CIS was created after the 1991 Soviet collapse, but the Moscow-dominated group has been eyed with increasing suspicion by its more pro-western members, Ukraine and Georgia, which have sought in recent years to move out of the Kremlin's shadow.

Georgian President Mikhail Saakashvili is currently studying the possibility of quitting the group. Tymoshenko said such a move wasn't on Ukraine's agenda today, but noted that "we have said more than once that we are not pleased with how the CIS functions."

Last month, the 12-member organization rejected a request by Kiev to recognize the 1930s famine in Ukraine as genocide. Ukraine has also tussled with the group over alleged bias in its election observer missions.

Under Yushchenko, who defeated a Kremlin-backed candidate for the presidency in 2004, Ukraine has begun a pro-western drive, aiming for future membership in NATO and the European Union.

"The CIS is turning into a club whose members talk instead of solving problems," Deputy Foreign Minister Volodymyr Ohryzko said later Friday, after returning from negotiations in Russia over the status of Russia's Black Sea Fleet in a Ukrainian port.

Source: AP

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Kremlin Calls Cheney’s Remarks Completely Incomprehensible

MOSCOW, Russia -- Russian officials and diplomats reacted angrily Thursday to a summit of former Soviet republics and allies where U.S. Vice President Dick Cheney criticized Moscow for rolling back the democratic “gains of the past decade’’and blackmailing its neighbors.

Dick Cheney

Deputy Foreign Minister Grigory Karasin voiced concern that Russia hadn’t been invited to the conference of Baltic and Black Sea ex-Soviet nations and Moscow’s former Warsaw Pact allies, that took place in Vilnius, Lithuania.

”We would like to see Russia figure at the summit as an important positive factor of global politics, not as an object for scrutiny,“ Karasin told Associated press reporters.

Kremlin spokesman Dmitry Peskov, quoted by Reuters, said that Mr. Cheney’s speech was a subjective evaluation of the processes that are going on in Russia. He called Vice president’s remarks completely incomprehensible.

Russian eccentric lawmaker Vladimir Zhirinovsky holds the same opinion, he dismissed Cheney’s comments as ”absolutely false accusations“ and said they reflected the desire of certain persons in U.S. political circles to discredit Russia ahead of the Group of Eight summit in St.Petersburg in July, Interfax reported.

He stressed that Cheney had expressed the opinion ”of only part of the U.S. political elite“, and not that of President Bush.

Cheney, speaking at the conference said that the Russian government had restricted the rights of the people in many areas.

He also warned Moscow against using its energy resources to blackmail its neighbors — obviously referring to the recent conflict between Russia and Ukraine that burst out after Russia raised the price its gas.

Source: MOSNews

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Friday, May 05, 2006

Ukraine Ex-PM Optimistic On Coalition After Talks

KIEV, Ukraine -- The parties behind Ukraine's "Orange Revolution" will next week announce a draft deal on forming a coalition government, former Prime Minister Yulia Tymoshenko said on Friday after the latest round of talks.

Opposition leader Yulia Tymoshenko talks to the media after her meeting with Ukraine's President in Kiev, Ukraine, Friday, May 5, 2006. President Viktor Yushchenko's former Orange Revolution allies on Friday emerged upbeat from one-on-one talks aimed at forming a governing coalition, but the president's party members said no breakthroughs had been made.

Negotiations have been dragging on for more than a month since a parliamentary election that weakened President Viktor Yushchenko and left no party with enough seats to form a government on its own.

But there was no indication after the talks, hosted by Yushchenko, whether the main stumbling block -- Tymoshenko's demand to get back her job -- had been resolved.

A beaming Tymoshenko told reporters to expect an agreement on a coalition next week with three parties -- her own bloc, the president's Our Ukraine Party and the smaller Socialists.

"We have had a wonderful meeting with the president of Ukraine and Socialist Party leader Oleksander Moroz," she said.

"We agreed that at the very least on May 10 or 11 we will announce a draft coalition agreement. I think this meeting brought us much closer than we have been for weeks to an understanding on creating a coalition and making it work."

Yushchenko said the meeting had shown that Ukraine "can have a fully functional parliament with a majority and a government".

But he added: "Of course, I will not idealize the situation. There are plenty of nuances which must be settled."

Both he and current Prime Minister Yuri Yekhanurov predicted the new parliament would sit for the first time on May 24.

Liberal "orange" parties have been trying to restore unity shattered by the president's dismissal last year of Tymoshenko -- who stood alongside him during 2004 mass protests against election fraud which came to be known as the Orange Revolution.

The Regions Party of Viktor Yanukovich -- who lost the 2004 presidential election to the pro-Western Yushchenko after the revolution -- took first place in the March poll.

But the combined score of "orange" parties was greater and between them they command 243 seats in the 450-seat chamber.

The "orange" groups have agreed in principle on a coalition. But a formal deal is being held up by Tymoshenko's insistence that she -- as leader of the liberal group with the most seats -- should take over again as prime minister.

Yushchenko dismissed her after less than eight months in office to end infighting between ministers split into competing camps. Western analysts were critical of her attempts to control markets and calls for a mass review of privatizations.

Under new constitutional provisions, parliament names the head of government. But the president, still a key figure, is clearly uncomfortable with putting her back in the job.

Tymoshenko has accused some of Yushchenko's allies of plotting to scuttle an "orange" coalition and join forces with Yanukovich. Our Ukraine denies any such plans.

Yanukovich, whose party holds 186 seats, also met Yushchenko on Friday and said party members were holding talks with various groups to determine how to build an alternative coalition.

Source: Reuters

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Ukraine Headed For NATO

MOSCOW, Russia -- The speech made by U.S. Vice President Richard Cheney at the Baltic and Black Sea Summit in Vilnius has shown that the United States is ready for a continued complication of relations with Russia.

U.S. Vice President Richard Cheney

The U.S. goal is to keep expanding in the former Soviet space, which can blow up the Commonwealth of Independent States (CIS).

The CIS policies have been traditionally influenced by Russia, but the situation started changing several years ago. The Community of Democratic Choice established last year includes three CIS states - Ukraine, Georgia and Moldova. Their leaders attended the Vilnius summit alongside the new NATO members - the Baltic countries, Poland, Romania and Bulgaria.

Ukrainian President Viktor Yushchenko and Georgian leader Mikhail Saakashvili reaffirmed their pro-Western course. Yushchenko said his country hoped to become an associated member of the European Union and to join NATO, but that calm statement was as unpleasant to Russia as the emotional attacks by Saakashvili.

Georgia, which has not settled the Abkhazian or South Ossetian problems, cannot be admitted to NATO because of this. Ukraine's position is somewhat different. NATO spokesman James Appathurai said in late April: "All of NATO's 26 member-nations support Ukraine's Euro-Atlantic integration, both politically and practically, and the [Sevastopol] base issue will not stop this."

Ukraine's access to the Alliance is hindered by the presence of the armed forces of a non-member on its territory. However, the U.S. and many other NATO states, primarily those that represent "New Europe," may disregard this principle because they want Ukraine to join the bloc as soon as possible.

The West seems unsure that Kiev's pro-Western choice has become irreversible. Verbal encouragement of Ukrainian regime's policies and criticism of Moscow, such as made by Cheney in Vilnius, seem insufficient. The West may use the political opportunities offered by Yushchenko's pro-Western government, especially because experts forecast that the next Ukrainian government will be pro-Western too. In a word, Ukraine may be admitted to NATO in 2008-2010.

This will come as a major shock for Russia, and not only because the Kremlin regards the post-Soviet space as its sphere of influence - this is why it reacted so strongly when U.S. Secretary of State Condoleezza Rice said Russians should "recognize that we have legitimate interests and relationships with countries that are in their neighborhood even if those countries were once part of the Soviet Union."

Moscow cannot prohibit the United States to operate in these countries, but the two states pursue opposite goals in Ukraine, Belarus, Georgia and Moldova. Therefore, the strengthening of the U.S. stand there is fraught with increased rivalry between them.

Moreover, Slavic and predominantly Orthodox Ukraine had been incorporated into Russia in the 17th century, and Russians cannot imagine it joining a bloc that is regarded negatively in Russia. For decades NATO had been in stark confrontation with the Soviet Union, and its break-up did not improve Russians' attitude to it because of the 1999 war in Yugoslavia.

They mistrust the Alliance's claim that it has become a purely political organization. The admission of the Baltic countries to NATO alarmed mostly the Russian establishment, because the general public in the Soviet Union had regarded them as "Western" republics. But Ukraine's accession will most certainly provoke sharp anti-Western sentiments in the Russian elite and the public. The psychological injury will fan the siege mentality, which is only a step away from another, though slightly different, cold war.

The U.S. is ready to take the risk because the Bush administration fears the growing influence of Russia in Europe. The swelling capitalization of state-owned energy giant Gazprom and Russia's increasing economic independence, including active repayment of foreign debts, the growth of gold and international reserves, and the accumulation of the Stabilization Fund, may strengthen the Kremlin's foreign policy ambitions. This is why the U.S. has opted for a highly risky strategy of "pre-emptive deterrence" in regard to Russia, with the key part assigned to the Euro-Atlantic integration of Ukraine.

Source: RIA Novosti

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Russia Threatening Democracy In Georgia, Ukraine — Saakashvili

VILNIUS, Lithuania -- Democracy in Georgia and Ukraine is under threat because Russia is creating obstacles to democratic processes in the countries, the Georgian president said Thursday.

Georgian President Mikhail Saakashvili

The international conference in Vilnius, Lithuania, called “Common Visions for a Common Neighborhood” was attended by heads of states from the Baltic and Black Sea regions and NATO and EU representatives, RIA Novosti reports.

During the last few months relations between Russia and the two countries have worsened. At the beginning of this year a gas conflict broke out between Russia and Ukraine. Recently, the Russian government suspended imports of Georgian wine over what it said were health concerns.

“If Moscow creates obstacles to our democratic values it means only escalating danger,” Saakashvili said.

He added that Russian actions represent a challenge for Europe as well, as a threat to democracies in Georgian and Ukrainian will also undermine European interests.

This is not the first criticism of Russia at the conference. Earlier in the day, U.S. Vice President Dick Cheney rebuked Russia for rolling back the democratic “gains of the past decade’’ and called on the country’s state-controlled energy companies to stop intimidating nations in the region that need oil and natural gas to grow their economies.

Source: MOSNews

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Ukraine's Yushchenko To Meet With Parliament's Leaders May 5

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko will meet Friday with the leaders of elected parliamentary parties and the premier to discuss the formation of a parliamentary coalition, the presidential press service said Thursday.

President Viktor Yushchenko

Ukraine has been in limbo since parliamentary elections on March 26 failed to give any bloc or party a clear-cut mandate to form a government, though supporters of former premier Yuliya Tymoshenko, whose eponymous bloc came second in the vote, have been pushing for a union with two other movements.

"I have a planned meeting on May 5 with political leaders, including Yulia Tymoshenko, Oleksandr Moroz, Yuriy Yekhanurov, Viktor Yanukovych and [Communist leader] Petro Symonenko," the press service quoted the president as saying.

Socialist leader Moroz is a key player in Tymoshenko's plans to form a coalition, which aims to keep leader of the pro-Russian Party of Regions Yanukovych out of power, and to restore her to the prime minister's chair in place of Yekhanurov.

Yushchenko said he would make every effort to ensure that the formation of a new coalition "would gain a new impetus and be over in the next one or two weeks."

Under the Ukrainian constitution a parliamentary coalition must be formed before a government can be formed.

Tymoshenko is seeking an alliance with pro-presidential Our Ukraine and the Socialist Party, which came in third and fourth respectively, but is vehemently opposed to dealing with Yanukovych.

Source: RIA Novosti

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Thursday, May 04, 2006

Orange Flowers

LONDON, UK -- The fall of communism brought Ukraine 13 years of criminal misrule. Power turned into wealth and back into power again in a seemingly endless cycle. But in late 2004, the grotesque rigging of the presidential election galvanised a real opposition movement for the first time.

Mrs Tymoshenko's murky radiance

Well-organised and mainly youthful protestors, clad in orange, filled the centre of the capital, Kiev, setting up a tent city. Facing down both the regime's propaganda and its menacing goons, they refused to accept the election's fraudulent result. Prompted by the outside world, the crooks and spooks decided against violence, and left office under a face-saving deal.

The story of Ukraine's Orange revolution is gripping and tangled. Take the strange scandals that initially stoked public fury with the regime: when the headless corpse of a muck-raking, philandering journalist, Georgi Gongadze, was discovered, the investigation mysteriously tailed off amid a mixture of lies, bungling and obstruction. The foul-mouthed president, Leonid Kuchma, was bugged, supposedly by one of his own bodyguards.

Then the leading opposition candidate, Viktor Yushchenko, was mysteriously poisoned, in best KGB style; his disfigured face is an icon of the revolution. Another icon is the gorgeous Yulia Tymoshenko, a demagogic multi-millionairess, whose murky business past is matched only by the radiance of her political image.

None of these mysteries has been cleared up. The bugging seems to have been a clever plot rather than individual heroism. No one has been charged with ordering Gongadze's murder. The poisoning is a mystery too. Yet it would be easy to weave all this into an orange-tinted fairy-tale: a belated reprise of the joyous revolutions of 1989 which united central Europe with the rest of the continent.

That is certainly a temptation for Askold Krushelnycky, a British journalist whose parents fled Ukraine after the war. His book is a fast-paced account of Ukrainian history from the year dot until the revolution's end, illustrated in part by his own family's story and his own part in events. He was a vital channel for rebellious officials wanting to dish the dirt about their bosses on issues such as ballot-rigging and the Gongadze murder.

But the book suffers from the same thing that gives it authenticity: the author's own background in the Ukrainian diaspora. Self-sacrificing and determined though they often are, East European émigrés can be excessively one-sided. Mr Krushelnycky's treatment of Ukraine's ethnic minorities is as rudimentary as his treatment of Russia is snide.

It is still a good story, but the real one is a lot more complicated. Why did the Ukrainian tycoons, with their media empires and huge slush funds, desert the regime? How can Russia's puzzlingly clumsy policy be explained? Perhaps most importantly: how clean are the good guys? Some of these answers are to be found in a book edited by two well-known, American-based scholars of the post-Soviet world: Anders Aslund, an economist, and Michael McFaul, a political scientist.

If you want an exciting subject made dull, there are few better ways than having academics write about it. But the drama of the story keeps breaking through the jargon and waffle. A revealing chapter by Pavol Demes and Joerg Forbrig, two senior figures at an American pro-democracy outfit in Slovakia, provides a good account of the history of Pora (Enough), the youth movement at the heart of the protests.

But Ukraine's democratic evolution is still a work in progress; neither book deals with the mystifying squabbles and peculiar business deals that followed the Orange revolution. Mr Yushchenko and Mrs Tymoshenko fell out spectacularly and fought the March election as rivals. Now, in order to keep the revived party of the old regime out of power, they are back together again—though for how long, few would care to bet.

Source: The Economist

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Ukraine Accuses Russian Sailors Of Illegally Occupying Territory

MOSCOW, Russia -- Ukraine on Thursday accused Russia of illegally occupying part of its territory on the Black Sea, where the Russian navy has access to port facilities under a special bilateral agreement.


“We consider that Russia is occupying a territory of more than 150 hectares (370 acres) and hundreds of sites situated there,” said Ukrainian Depiuty Foreign Minister Volodymyr Ogryzko.

He said the Russians had denied this.

Ogryzko and his Russian counterpart Grigory Karasin clashed at a press briefing after attending a joint Russian-Ukrainian commission tasked with settling outstanding differences over the presence of the Russian fleet in the Black Sea following Ukrainian independence.

This presence was supposed to be regulated under a 1997 agreement, but the two sides differ in their intepretations of the document.

“There have been considerable violations by Russia of certain points in the agreement,” Ogryzko told journalists.

Kasarin said discussions were proving difficult. “There are clear divergences in the approaches of the two sides,” he said.

Ogryzko said his side had not detected any willingness by the Russians to make any rapid or effective progress. “It has been three months since the commission last met. We can confirm today that we have not made progress.”

But Karasin rejoined: “It is a very sensitive subject for us. We don’t want to over-simplify the situation.”

Ukraine has threatened to raise sharply the rent paid by Russia for port facilities for its navy at Sevastopol in the Crimea as a reprisal for Russiaincreasing the price of natural gas it supplies to its neighbour Ukraine.

Under the 20-year 1997 accord, Russia pays approximately 100 million dollars (79 million euros) annually for rental of the Sevastopol facilities.

Source: AFP

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Ukrainian Journalists Freer Than Ever, Media Watchdog Group Says

KIEV, Ukraine -- Ukraine's media enjoyed more freedom last year than ever since this ex-Soviet republic became independent, but the murky ownership of media outlets and a lack of respect for journalists remain persistent problems, a media watchdog group said Wednesday.


The media reported 12 cases of economic or political pressure last year, compared to 60 in 2004. There were 52 cases of censorship in 2004, whereas only 14 reported cases last year, said Viktoriya Syumar, director of the Institute of Mass Information, marking international Press Freedom Day.

"Ukrainian media saw fewer violations of their activity in 2005," she said.

But Serhiy Taran, a media expert, said that true freedom of the press still hasn't come to Ukraine despite the massive changes wrought by the 2004 Orange Revolution. He cited the lack of transparency about who owns many of Ukraine's powerful media outlets, and obstacles keeping journalists from the corridors of power.

"We know that in many democratic countries, including the United States, even presidents have had to resign because of journalistic investigations," he said. "Here we have a paradoxical situation - journalists have freedom of speech, but they haven't yet become the fourth branch of power."

Ukraine's reformist, pro-Western president, Viktor Yushchenko, has pledged to make media freedom a top priority. Under his predecessor, former President Leonid Kuchma, media were given orders about what they could report, and the opposition was either given little time on television or portrayed in a very negative light.

Today, news channels present a variety of views, and political talk shows give significant time to opposition figures and Yushchenko's critics. But Taran warned that there was still a need for media outlets to become more transparent, and reveal who is funding them. He also complained that journalists weren't being given the access they need to carry out their watchdog role.

The media watchdog group said it had recorded a worrying increase in incidents against journalists during this year's parliamentary campaign. Last year, only 13 lawsuits were opened against the media, whereas in the first quarter of this year, there have already been 15, Syumar said.

Source: AP

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Yushchenko And Cheney Discussed Cooperation In Nuclear Sphere

VILNIUS, Lithuania -- In Vilnius, Victor Yushchenko met with U.S. Vice President Dick Cheney, Ukraine President's press office reported.

U.S. Vice President Dick Cheney (L) attends a breakfast meeting with Ukrainian President Viktor Yushchenko (R) in Vilnius, Lithuania, May 4, 2006.

They discussed economic and political cooperation between Ukraine and the United States. The Head of State dwelled on the issue of post-election coalition talks in our country.

He optimistically declared that Ukraine’s parliamentary coalition and new government would both be formed by the end of June. Yushchenko added that he had met with all the poll winners and was now going to meet with leaders of coalition parties.

Speaking about Ukraine-U.S. relations, the Chief of State said Ukraine appreciated the level of its strategic partnership with the United States. In his turn, Mr. Cheney assured Yushchenko that the United States supported our democratic choice and would continue to support Ukraine's reforms and Euro-Atlantic aspirations.

Then they discussed energy policies. The President said the Ukrainian government had recently formulated energy strategy and was thereby eager to cooperate with the United States in the field of nuclear energy and energy efficiency.

They also discussed regional policies and particularly ways to settle the Transdniestrian conflict and conduct a GUAM summit in Kyiv this May.

Speaking about foreign policies, Yushchenko stated that Ukraine’s Euro-Atlantic course would not change. He reiterated, however, that Russia was our strategic partner and so Ukraine was interested to develop friendly and mutually beneficial relations with its northern neighbor.

Yushchenko and Mr. Cheney also spoke about George Bush’s future visit to Ukraine.

Ukraine’s Foreign Minister Borys Tarasyuk and Secretariat Chief of Staff Oleh Rybachuk were present at the meeting.

Source: ForUm

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Bush Picks New Envoy To Ukraine

WASHINGTON, DC -- William Taylor is being nominated by United States President George Bush to replace John Herbst as U.S. Ambassador to Ukraine.

William Taylor

In a May 1 statement, the White House said Bush announced he would submit Taylor’s nomination to the Senate for approval. Taylor’s chances of approval are high, as the Republicans hold a majority in the Senate.

Taylor’s area of responsibility has been the Middle East over the last several years. He headed the Iraqi Reconstruction Management Office in 2004-2005 and worked as the Afghanistan Coordinator in the Department of State prior to that.

Earlier, since 1992, Taylor oversaw the U.S. Government’s agencies providing assistance to 27 states of the former Soviet Union and Eastern Europe.

In March, John Herbst, who has served as U.S. Ambassador to Ukraine since 2003, was appointed Coordinator of the Office for Reconstruction and Development within the U.S. Department of State. Secretary of State Condoleezza Rice said recently that Herbst would begin his new job later this spring.

The U.S. Embassy could not give an exact date for Herbst’s departure.

Source: Kyiv Post

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Tymoshenko, Moroz Plead To Meet Yushchenko

KIEV, Ukraine -- The seesaw coalition talks geared toward forming Ukraine’s next government took a new twist on May 3, as former Prime Minister Yulia Tymoshenko and Socialist leader Oleksandr Moroz called for a meeting with Ukrainian President Viktor Yushchenko amid waning hopes that the three former allies will reach a deal.

Oleksandr Moroz (L) and Yulia Tymoshenko

The goal of the meeting, which Tymoshenko and Moroz requested in an open letter to Yushchenko, is to settle differences between them and their former Orange Revolution allies, namely the Our Ukraine political bloc, which Yushchenko is the honorary chairman of.

The plea comes as coalition talks between Byut, Our Ukraine and the Socialists drag on into the second month since the March 26 parliamentary election. Negotiations have centered on the revival of a so-called Orange coalition, consisting of political camps that backed Yushchenko in the 2004 presidential race, namely Tymoshenko’s Byut bloc, which will have 129 seats in the 450-member parliament, the Yushchenko-loyal Our Ukraine bloc, with 81 seats, and the Socialists Party with 33.

Talks between the three political groups have in recent weeks been overshadowed by allegations that influential members of Our Ukraine are leaning in favor of a coalition with the Regions of Ukraine party, led by Viktor Yanukovych, Yushchenko’s rival in the 2004 presidential elections, during which voter fraud triggered massive street protests dubbed the Orange Revolution.

The Regions party, which has demanded the return of Yanukovych to the premier post as a condition to forming a coalition, will have 186 seats in the next parliament, scheduled to convene for its first session this month.

Constitutional reforms that took effect this year envision a shift in power from the presidency to the legislative branch, which would form a majority that would then establish a coalition government. In the past, the president appointed most top government officials, though some appointments required approval by parliament.

“The majority of voters supported our democratic parties and blocs, which allows for us to jointly ensure the democratic development of the country and to continue the program of the president,” reads an open letter signed by Tymoshenko and Moroz.

“Our political forces have clearly expressed their views to establish a democratic coalition in parliament with 243 deputies, and can quickly establish such a majority and establish a government,” the statement continues.

“We find it necessary to start an uninterrupted dialogue between the leaders of Byut, Our Ukraine, the Socialist Party of Ukraine and the president of Ukraine. We suggest meeting no later than May 5,” the letter reads, adding that attempts to organize such a meeting through official correspondence with the Presidential Secretariat have proved fruitless.

Yushchenko left for a two-day state visit to Lithuania on May 3 for a conference on the future of the Baltic and Black Sea region attended by presidents throughout the region and United States Vice President Dick Cheney. Yushchenko’s press service had not responded to the joint letter from Moroz and Tymoshenko as of late on May 3.

Meanwhile, the Socialists appealed to acting parliament speaker Volodymyr Lytvyn to hold the first session of the new parliament on May 17.

Tymoshenko and Moroz have in recent weeks accused Our Ukraine of purposefully stalling coalition talks, insisting their would-be partners were holding coalition talks with Regions.

The most recent allegations in this light came on April 28, when Tymoshenko accused Our Ukraine’s political camp in Kyiv’s city council of setting up a de facto coalition partnership with Regions deputies to back newly-elected Kyiv mayor Leonid Chernovetsky. Tymoshenko described the Our Ukraine-Regions alliance in the city council as a testing ground to gauge voter opinion ahead of the nationwide coalition agreement.

Political analysts have described Our Ukraine’s strategy as a ploy to stretch out the talks in the hopes of wearing down Tymoshenko’s invigorated leverage after an unexpectedly strong showing during the parliamentary elections.

Analysts say that Our Ukraine’s top leadership is unwilling to accept the possibility of Tymoshenko’s return as prime minister, fearing that she could use this post to boost her popularity, positioning her as a powerful challenger to Yushchenko in the 2009 presidential elections.

Tymoshenko, meanwhile, has promised not to run for president if she is allowed to return as prime minister.

Some top Our Ukraine officials, including Borys Bespaly, have denied rumors that they are considering the formation of a coalition with Regions. Yet others, such as Vira Ulyanchenko, who serves as a presidential advisor, have openly supported the idea of forming a so-called Grand Coalition, which would include Regions.

Political analyst Vadym Karasiov said the letter sent by Moroz and Tymoshenko to Yushchenko equates to an attempt by them to force the president into taking a public stand on whether he backs a coalition with Regions or, conversely, the reformation of an Orange team.

“This letter is an attempt to revive the coalition talks, but it also serves as a signal that they could break down,” Karasiov said.

“The president is not likely to take up their offer,” Karasiov said, adding that he is more inclined to take what publicly appears to be a sideline role, while simultaneously using his influence over Our Ukraine to pull political strings in the coalition talks.

Source: Kyiv Post

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Wednesday, May 03, 2006

The Men From RUE (RosUkrEnergo)

WASHINGTON, DC -- Forget the geopolitical arguments, the Russian threats to sell China gas and oil and condemn the poor Europeans to a new ice age. The real story in the Russian-Ukrainian gas business about is money and avarice.

Investigative Journalist Roman Kupchinsky

Take the recent revelations in the Russian press about the hidden beneficiaries of RosUkrEnergo (RUE), the mysterious gas trading company forced upon Ukraine by the Kremlin during the January gas negotiations. The entire episode seems to have an unrealistic air about it.

The simple fact is that there is no such journalist as "Vladimir Berezhnoi," the author of the article in the Gazprom-owned newspaper "Izvestia" which first exposed Ukrainian nationals Dmytro "Dima" Firtash and Ivan Fursin on April 26 as the hidden culprits.

The Izvestia article, according to the "Moscow Times" was commissioned by a high level Gazprom manager who not only insisted that the US Department of justice be attacked for involving itself in matters which, in his view, did not concern them, but also demanded that an anti-Yushchenko spin be put on the story.

The entire episode seem contrived and part of a sloppy scenario prepared by incompetent former KGB operatives.

According to highly reliable sources, Firtash, the owner of 40 percent of RUE, had been coached a few weeks before the appearance of the Izvestia article on what to say and when to say it. He was instructed by Gazprom managers and their comrades, former KGB officers in the Kremlin, who knew about Dima's role a long time before the creation of RUE.

It would have been absurd and unthinkable for Putin and his closest collaborators to allow Gazprom to enter into a multi-billion dollar venture such as RUE without knowing who all the players were. Anyone who believes their hogwash should be sent to work in some inclement part of Russia to get their heads straight.

Firtash appeared in the horrendously expensive Knightsbridge section of Londongrad, the name most Russian businessman call the place, right on cue and dressed for his role. Anyone who wishes can compare the photo's of Firtash posted on the Ukrayinkska Pravda website where he has a scraggly goatee and is dressed in a greenish zoot-suit, favored this Spring by Kyiv hoods, and the photo of the new, clean-shaven Firtash on the front page of the Financial Times, dressed to kill in a pin stripe suit from Saville Row and a haircut which must have cost at least 150 quid.

"Dima" Firtash did not avoid the ultra-sensitive topic of his relationship to Semen Mogilevich during his interview with the Wall Street Journal and was most likely instructed not to deny knowing the dreary overweight Russian-Ukrainian-Jewish gentleman.

"Yes, we met a few times, and yes, his wife was a principle in one of my companies, Highrock Holdings, but when I realized who she was (gasp!) I bought out her share." There you have it. Dima was as transparent as a jellyfish in an oil spill.

Still, something was not right. Why did Firtash and Semen share the same lawyer in Tel Aviv? Why did that particular lawyer play a key role in the establishment of Eural Trans Gas, the predecessor of RUE. Was Igor Fisherman also a part of the Highrock empire of companies?

Why all the elaborate malarkey by Dima explaining that all he wanted was to help Gazprom get into the middleman business of selling Turkmen gas to Ukraine. One could imagine that without Firtash, Gazprom would be unable to do its job.

Above all Firtash failed to explain why Vladimir Putin, Alexei Miller (the CEO of Gazprom) Yuriy Boyko (the former head of Naftohaz Ukraine), and Leonid Kuchma allowed him to and his buddy Ivan Fursin (who, in turn, seems to be a buddy of Volodymyr Lytvyn, the man who is innocent of everything, and who almost became a member of parliament on Lytvyn's ticket) to become part owners of RosUkrEnergo?

Why did Gazprom accept them as their partners in RUE? All the explanations put forth by Gazprom till now stink.

Why did Gazprom decide to expose Firtash and Fursin now? It seems abundantly clear that Gazprom was aware that the US Department of Justice already knew who the two characters were and decided to pre-empt the Americans. They did so in order to try and limit the investigation. "See, now we all know who the bad guys are, so let's get back to the business of defrauding the citizens of Ukraine and Russia."

Until the RUE scam is uncovered to everyone's satisfaction, the US Department of Justice investigation should continue full steam ahead and follow the money trail from Firtash's and Fursin's accounts in Austria, which, by the way is a haven for Russian money launderers, to the off-shore accounts belonging to the men who are the real beneficiaries of RUE's millions. If this means exposing some of the most powerful men in Russia and Ukraine then so be it.

If it means throwing Raiffeisen Bank out of Ukraine as punishment for its sleazy dealings - fine. Let them go complain to Putin and his pal Gerhard Schroeder.

It is time to begin telling the truth about who rules Russia and to ask why almost every deal in the oil and gas business in Russia is run like a KGB covert operation. The Yukos affair was a glaring example. Then the same men in the Kremlin who produced the Yukos sitcom set up a phony company - BaikalFinance - in an abandoned warehouse God knows where, and used it to buy out Yukos' main production unit.

Next were the photo's in the New York Times of the run-down shack where one of the managers of RUE claimed to live outside of Moscow. We cannot forget the three unemployed Romanian's who overnight became the principles of a major gas trading company - Eural Trans Gas and the former Hungarian state secretary for Culture who, in the twilight of his life discovered that he really wanted to be a gas trader when he grew up.

The Russian energy business stinks like a brothel at high tide and if the Russian government is too corrupt or inept to clean it up, then the US Department of Justice, Interpol and others should expose it over and over for what it really is - a feeding trough for the Russian elite.

Source: Roman Kupchinsky

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Mittal Stirs Change In Ukraine Steel City

KRYVIY RIH, Ukraine -- Lenin still guards the entrance to Ukraine's biggest steel plant, but the flags that flutter beside him identify a new king in this town.

Billionaire Lakshmi Mittal

Indian-born billionaire Lakshmi Mittal extended his steel empire -- already the world's largest -- when his company paid $4.8 billion (2.6 billion pounds) for the Kryvorizhstal plant at an auction last year, becoming the single biggest foreign investor in Ukraine.

Now, life could be about to change for many of the 700,000 residents of this dusty, central city. Kryviy Rih will get a more efficient steel plant, but street protests that greeted the new owner's arrival betray a resistance to change.

It's a scene familiar to Narendra Chaudhary, general director of Mittal Steel Kryviy Rih and a 40-year steel veteran.

"The influence of a steel plant is not limited to the unit itself. Its arteries and veins go all around society at this stage of economic development," said Chaudhary, who has headed Mittal Steel (MT.N: Quote, Profile, Research) plants in Kazakhstan and Romania.

"Our behaviour here is being closely watched. Mittal Steel could be an agent of change in the economy," he said.

Ukraine is hoping to reignite the economy after growth slowed to 2.6 percent last year from a record 12.1 percent in 2004. With commodity prices at record highs, the country's iron ore and coal resources, used to make steel, are central to this.

President Viktor Yushchenko hailed last October's sale to Mittal as the start of a new economic era. The auction was meant to lure back Western investors made wary by turmoil during his first nine months in office.

But some plant workers fear foreign ownership will mean fewer jobs and benefits -- even though they won pledges that Mittal would honour some investment obligations for five years.

Kryvorizhstal employs 57,000 people. With the average worker supporting a family of four, 228,000 people depend on the plant.

"Within the framework of these restrictions, wherever there is a possibility to make the whole number smaller, we shall do that. But we don't have complete freedom to reorganise the operation and significantly reduce the number," Chaudhary said.

Murad Grigoryan, a 44-year-old taxi driver and floor tiler, has reservations about the sale.

Sitting behind the wheel of a 1971 Lada, he said: "It would be like me selling my car and letting someone else drive. I'd make a quick buck but I wouldn't have the right to go where I want any more".

It's an argument heard elsewhere in Kryviy Rih, a mainly Russian-speaking city whose political loyalties lie with Viktor Yanukovich, the defeated presidential candidate during Ukraine's "Orange Revolution" in 2004.

Opponents of the Kryviy Rih sale argue a better long-term bet would have been to retain ownership of the plant.

Artyom Sinenko, 26, who works in Kryviy Rih's only bowling alley, said the government used to pay about 10 percent of the cost of a family holiday on the Black Sea for plant employees. Such traditional benefits, he said, are now under threat.

Chaudhary puts the average annual cost to the company of one employee, including salary and other benefits, at about $5,000.

And he says wages have increased since Mittal arrived.

"We gave an increase of four to 4.5 percent from the day we came. Subsequently, we've also brought in additional medical insurance cover for all the employees," he said, adding that wages would be automatically corrected for inflation.

Kryviy Rih claims to be the longest settlement in Europe, stretching 125 km (78 miles) from end to end. It straddles a succession of iron ore mines that, residents say, are responsible for the permanent coat of red dust on the streets.

Along run-down Karl Marx Avenue, the city's old centre, slot machines occupy the once-grand Lenin Cinema and tributes to American rappers decorate the walls of nearby housing blocks.

As prices for iron ore and steel rose in the last few years, signs of a nascent prosperity multiplied around Kryviy Rih, which translates as Crooked Horn, a name which some say is derived from a bend in the river and others say refers to the crooked leg of an early Cossack ruler.

"There has been more investment coming to the city in the last few years," said Vadim Chuply, a 21-year-old barman, pointing to a shopping centre and casino being built nearby.

Sports stores and fast-food restaurants have sprung up along Metallurgists' Avenue, the main road leading to the steel plant.

VALUE, NOT VOLUME

A Soviet-era mural at the factory urges workers to produce more steel for the motherland, but Mittal Steel is less concerned about volume than value.

Its biggest change so far has been scrapping a plan to increase output of long products like steel bars and wire rod -- which account for 100 percent of production -- and focussing instead on moving into flat products that can be sold for more -- a shift that is part of a $1.2 billion investment.

Mittal has more experience than most in revolutionising ageing steel plants. The company, which has made a $25 million unsolicited bid for its largest rival Arcelor (CELR.PA: Quote, Profile, Research), grew to become the world's largest steel maker by reviving such mills.

But it's not an overnight job.

Chaudhary said relations with workers and trade unions had improved since early December. "But we are aware that we will have to continue to work and develop relationships. I saw this in Romania. I saw it in Kazakhstan and, to some extent, in Mexico. I expect the same thing will also happen here."

Source: Reuters

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Tuesday, May 02, 2006

Follow the Money

LONDON, UK -- Mercurial dictator Saparmurat Niyazov has a multibillion-dollar slush fund, which he uses to maintain his personality cult in natural gas-rich Turkmenistan, according to a report issued 24 April by the watchdog group Global Witness.

Dictator Saparmurat Niyazov

European Union nations, in particular Germany, are helping conceal the way Niyazov is using Turkmenistan’s energy revenues, the report asserts.

Global Witness is a 13-year-old, London-based organization that investigates the link between the exploitation of natural resources and human rights abuses. Its report, titled Funny Business in the Turkmen-Ukraine Gas Trade, estimates that Turkmenistan earns more than $2 billion per year from natural gas exports, a large share of which goes to Western Europe via Russia and Ukraine.

It states that a significant portion of revenue never finds its way into state coffers. Instead, Niyazov parks much of the money in foreign bank accounts under his direct control. “A horrifying 75 percent of the state’s spending ... appears to take place off [the government’s] budget,” the report says. It goes on to cite “several credible estimates” in valuing Niyazov’s slush fund at over $3 billion, “some $2 billion of which appears to reside in the Foreign Exchange Reserve Fund at Deutsche Bank in Germany.”

The report states there is no effective way to track the Turkmen government’s management practices. “Citizens have no information as to where that money is going because revenues are managed in a completely opaque way,” the report said. “It is clear that the money is not being spent on them: Standards of health, education, and living quality have plummeted since independence.”

Niyazov appears to lavish a large share of the revenue on “an increasingly bizarre personality cult,” the report suggests, adding, “His picture is everywhere in Turkmenistan: on public buildings, on packets of salt and tea, bottles of vodka; [it] even floats eerily in the corner of television broadcasts.”

The report characterized Turkmenistan as dysfunctional and in imminent danger of becoming “a fully fledged failed state with massive unemployment, widespread heroin addiction, and woeful education and health care systems.”

The report goes on to criticize the Ruhnama, the book of values supposedly authored by Niyazov, for claiming that the country’s natural resources are “the people’s natural wealth.” Such assertions sound “ever more hollow as time passes,” the report states. “It is time for Europe, Ukraine, and Russia to act.”

A large part of the report is devoted to examining the murky interactions involving Western European states, Ukraine, and Russia in the export of Turkmen natural gas. For over a decade, the exports have been controlled by a string of shadowy intermediary companies. “These companies have often come out of nowhere, parlaying tiny amounts of start-up capital into billion-dollar deals,” the Global Witness report says.

The structure of these companies has been obscured by “complex networks” of holding companies and trusts. “It is nigh on impossible to discover who sits at the center of these corporate webs, and thus to whom the profits from the transportation and sale of natural gas are going,” the report said. An investigation of four intermediary companies raised “troubling questions about transparency and governance,” the report added.

The latest in the succession of intermediary companies is RosUkrEnergo, of which the Russian conglomerate Gazprom and Austria’s Raiffeisen Zentralbank are shareholders. The Austrian entity acts as a manager for “a consortium of Ukrainian businessmen who have refused, despite fierce controversy in Ukraine, to disclose their identities,” according to the report. It stressed that RosUkrEnergo has not been firmly tied to any illegal dealings, yet unanswered question continue to hover over the entity’s operations.

RosUkrEnergo played a central role in a pricing dispute in early 2006 between Ukraine and Russia that briefly interrupted energy supplies to Western Europe. When the two sides settled their differences, RosUkrEnergo ended up “becoming the exclusive supplier of Turkmen gas to Ukraine,” the report said.

That deal deviated “sharply from industry best practices,” the report asserted. The contract covering deliveries and pricing issues is “a mere two sheets of paper” and is thus overly vague. The pricing of Turkmen gas, for instance, appears open to broad interpretation, the report suggests. “The possibility of further, unexpected price hikes is obviously not good for the energy security of Ukraine or gas customers downstream in [Western] Europe,” it said.

Global Witness called for greater transparency in Turkmen natural gas dealings. It specifically urged Russia and Ukraine to adopt international reporting standards established under the Extractive Industries Transparency Initiative or the International Monetary Fund’s Guide on Resource Revenue Transparency. It added that the Russian parliament should ratify the Energy Charter Treaty, which provides for “more transparent transit arrangements and a rules-based approach to dispute resolution.”

The EU likewise must take “much greater interest in the problem of energy and transparency than it has to date,” the report says. Brussels has a variety of instruments at its disposal – including diplomatic pressure, economic assistance, and trade incentives/sanctions – to encourage greater transparency. “Europe could also do much more to build the capacity of local civil society groups to monitor the flow of revenues,” the report said.

In addition, the report is highly critical of the German banking sector. “It is hard to see how Germany’s vital interest in the security of energy supply can be reconciled with a preparedness by Germany’s biggest and most prestigious bank to act as a banker to an unhinged tyrant,” the report said. It recommends that the EU condition its future economic dealings with Turkmenistan on a move by Niyazov to “show measurable progress” in promoting transparency.

Source: Transitions Online

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Cruel Cost Of The Human Egg Trade

LONDON, UK -- British women who desperately want to have babies are being sent to eastern Europe and Cyprus. There, clinics are thriving on the profits of fertility tourism. But donors in this egg harvest run hidden health risks.


Svetlana has a big family secret: she sold her eggs for US dollars. Svetlana did not tell her husband what she was doing because she knew he would be furious. Nor did she tell her mother or her two young children. Every day after lunch this 27-year-old unemployed cook would sneak out of her cramped, Soviet-era tower block on the outskirts of the Ukrainian capital, Kiev, to go for hormone injections that would stimulate her ovaries into producing dozens of eggs. Each one of these had the potential of becoming a relative that her family would never know about.

Desperate for money after the birth of her second child, Svetlana had applied for work in the canteen of one of Kiev's growing number of fertility clinics that charge infertile women from Britain thousands of pounds for help in getting them pregnant. Svetlana didn't get the job, but was told that if she needed cash she could sell her eggs. She was told that the process was straightforward and that she would be given $300 - more if she was a good donor and produced lots of eggs.

For Svetlana, like a growing number of Eastern European women, it was too good an opportunity to pass up. Since the birth of her second child she had been surviving on less than $15 a month. She turned out to be an excellent donor. By the time of her fifth donation, her ovaries, stimulated by the injection of a hormone, produced a batch of 40 healthy eggs. This is four times more eggs than a woman undergoing IVF would produce.

The medical staff gave Svetlana an extra $200 as a reward. For the clinic, Svetlana was a cash cow, a woman whose eggs could be sold for profit. Older women from Britain, the US and other Western countries whose ovaries can no longer produce healthy eggs are happy to pay more than £3,000 for donor eggs that could be fertilised into an embryo. The hope is that, once implanted back into the woman, they will conceive the 'miracle' baby that has so far eluded them.

Yet what Svetlana didn't know is that donating eggs is not a straightforward matter like donating sperm. It can be a lengthy, painful and potentially dangerous procedure involving the injection of a powerful drug known as follicle stimulating hormone, or FSH. Medical experts believe 1 per cent of women undergoing this can suffer serious side-effects know as ovarian hyper-stimulation syndrome (OHSS) that in extreme cases can prove fatal.

One leading British fertility expert, Adam Balen, Professor of Reproductive Medicine at Leeds General Hospital, believes the fact that Svetlana produced 40 eggs is evidence that she was being hyper-stimulated by the clinic and her health was being put at risk. At no time did the medical staff at the Kiev clinic explain anything to Svetlana or give her any counselling on the psychological impact of donating eggs. Svetlana found out she was being injected with hormones only when, on the fourth time, she had to be put on a drip. She was told the injections were to 'clean her blood'. Other complications included missing her period for two months and stomach pains.

A year after her last donation, Svetlana meets at a secret location to tell her story. She is scared of being seen speaking to a journalist near her home. She has had no lasting physical problems, but is affected psychologically. 'I feel like I sold part of my body,' she explains. What did she think about the possibility that she may have children in London and her son may have a half-brother? 'They will be two now, but I try not to think about it. Hopefully they don't look like me. My two children look like their father, so I hope that is the case.'

She has kept her egg donation a secret from most people: 'I don't want anybody to know; for me it's unpleasant that I have sold a part of myself. That I have sold myself for money. Many people wouldn't understand it.'

An investigation by The Observer has revealed a burgeoning global trade in women's eggs where infertile British women who cannot find a donor in the UK will pay thousands of pounds for the chance of finding one overseas.

Svetlana is typical of dozens of young Ukrainian women desperate for cash having to sell their eggs to make ends meet. While most sell them in Kiev, others are sent by Ukrainian clinics to Cyprus or even Belize. Their Caucasian appearance is turning young East European women into a source for one of the continent's most prized commodities: human eggs.

It is a trade conducted in the utmost secrecy, with donors' identity strictly protected. Yet The Observer tracked down several other egg donors in Kiev who, like Svetlana, have sold eggs to clinics that helped British women to conceive. Some of the girls are unemployed or working in low-paid menial jobs, others are former graduates now earning good salaries; some are blonde, while others are brown-haired with dark eyes. But all the donors we spoke to have one thing in common: they all sold their eggs for the money, all have regrets about what they did, and none would do it again.

'We only did it for the money,' says Erena, who donated four times and knows more than 20 donors who gave eggs to one of the city's clinics. She claims that one young girl she knew donated nearly 20 times and none of the girls was given any psychological counselling. She said they were given more money the more eggs they produced.

Erena recalls that once she was injected with five ampoules of FSH. Each capsule contained 75 units of the hormone, so she received 375 units. According to Balen, this is a potentially dangerous amount that could spark OHSS. 'For a young woman with healthy ovaries, I would use no more than 150 units of FSH or you run the risk of OHSS. Although serious complications are rare, they can be extremely serious and even fatal.' Balen was particularly concerned at the sliding scale of fees paid which would encourage donors to accept more hormones in the hope of more money. 'It sounds more like egg farming to me than egg donation,' he said. Erena says she felt she was treated like a 'milking cow'.

In today's global market, a healthy human egg from a young white European woman is more valuable than gold. Under British law any fertility clinic that wants to import or export embryos fertilised by donor eggs must obtain a special licence from the Human Fertilisation and Embryology Authority (HFEA). In January, using the Freedom of Information Act, The Observer asked the HFEA for a list of all the special licences it approved last year.

The details, revealed here for the first time, give an insight into the role Britain is playing in the growing global trade of babymaking. It shows that more than 400 human embryos were either imported to, or exported from, Britain last year as part of fertility treatment, with the booming trade stretching from London, Kiev and Warsaw to Limassol, Chicago and Sydney. Yet these figures underestimate the scale of the trade. Many women go 'freelance', using internet chatrooms to locate clinics across East Europe and elsewhere which promise to find them donors quickly and cheaply. These women who have embryos implanted overseas and return home are not covered by UK regulations, so would not be in the HFEA dossier. Nor would it catch British clinics sending women overseas to have an embryo implanted.

In the UK there is an acute shortage of donor eggs and the wait can be more than two years - if one comes along at all. Fertility doctors believe that last year's change in the law removing anonymity from donors has made the shortage of donors even more acute. Clinics in Britain are forbidden to pay donors anything other than a nominal sum of about £15, so there is no financial incentive. Any woman who wants to donate eggs must have a psychological assessment and free counselling. It is not surprising that some would-be mothers see the quick, relatively cheap supply of eggs from East Europe as a solution difficult to ignore.

British clinics which send infertile women to Kiev say they have rigorous procedures to ensure that the Ukrainian clinics are operated to the highest standards. Adverts in women's magazines sell the dream to women that a short trip abroad could answer their prayers. They are often charged hundreds of pounds to join lists of hopeful recipients, and it is estimated that the cost of using overseas egg donation could be between £7,900 and £11,000 before travel and other costs. Some clinics claim a pregnancy success rate of 'almost 50 per cent'.

Professor Gedos Grudzinskas, medical director of the Bridge Centre in London which does send people abroad, defends the practice. 'Would it be preferable if a British woman who needs a donor egg does not need to travel abroad? Yes, of course. But fertility is the Cinderella service in the NHS, and for some women it is the best option.' Grudzinskas stresses that his clinic does thorough 'due diligence' on the centres it uses overseas.'We work entirely in accordance with the best practice laid down by the HFEA.'

The Institute of Reproductive Medicine which sits in the grounds of Kiev's main city hospital, is a modern clinic with all the latest technology. Oleg Kucherenko, the institute's marketing manager, confirmed it had treated several British women. He insists the institute operates to the highest international standards.

He said: 'Is it normal for a British woman to travel to Kiev, or Russia, or Poland to have a baby? I don't think so, but why are they coming? That is not for me to say. Is it a result of the rules in the UK that force them to come or for other reasons? We are here to help any women, whatever country they come from, who want a child but cannot have one.' Kucherenko insists they 'fully respect' the rights of donors: 'We don't pay for their eggs, we pay $300 compensation for their time.' One of the most popular Kiev clinics used by British women seeking donors is the Isida. Its directors also stressed that it did not exploit donors. Both clinics, however, were unwilling to allow The Observer to contact any donors even if we guaranteed confidentiality.

As The Observer reveals today, a trade that can fulfil the dream of a British couple can be a hidden nightmare for the donor. While there is no denying the joy of an infertile woman who has been able to have a baby using an overseas donor, there can be an unsavoury underside to the process where poor young women are exploited, injected with potentially dangerous hormones and treated like 'battery hens' being farmed for their eggs. These are women who are the secret mothers of British children, parents who will never know their genetic children. It is what the chair of the HFEA, Suzi Leather, has called a 'profoundly exploitative and unethical trade'.

Should the rights of a British woman desperate for a family supersede the rights of a poor East European forced to sell her eggs for cash? If the foreign clinics can assure that donors are not exploited, is there a problem? Are the strict British regulations helping to create an unsavoury market in human eggs?

Leather said: 'The market in babymaking is now global and these problems have to be tackled internationally. This compelling testimony shows the nasty underside of a global market in babymaking and should act as a wake-up call.'

Near the little fishing village of Sygi on Cyprus sits an unassuming stone building surrounded by palm trees and with its own private beach. In the past year, hundreds of women referred by fertility doctors in Britain have checked in here. This is the Petra Health Clinic, an offshoot of the Reproductive Genetics Institute in Chicago. The Observer has been told that it was its offices in Kiev that paid Ukrainian girls $500 to fly to this clinic and donate eggs. In its waiting room, couples are usually met by Galina Ivanovina, the clinic's resident Russian director.

Treatment for multi-embryo implants involving an egg donor from the clinic costs $5,000. Ivanovina claims they do not pay donors. 'We put them up in flats and give them a free holiday, but now, it seems, they feel they can pay for their own. If you wish you can pay them too.' Ivanovina says the waiting list is only two months' long, which gives clients time to think about the perfect 'donor match'.

'Do you want a baby that looks like you, a little bit Slavic?' she asks an undercover Observer reporter who inquired about the possibility of donor egg and donor sperm. On request she produces an itemised description of a woman who donated eggs at the clinic. 'Nationality, Russian; height, 1.69m; weight, 55 kilos; blood type, ABIV+; hair colour, brown; eye colour, brown; education, higher technical college; occupation, engineer.'

Ivanovina says: 'This would be a typical donor. All of our donors are from Eastern Europe, Russia, Ukraine.'

Dr Vasillis Thanos, the Israeli-trained gynaecologist who oversees embryo transfers at the clinic, says female donors get 'free of charge' gynaecological treatment throughout their lives. 'These ladies are very well selected; they approach doctors who give them all the information about the whole procedure. They do it for altruistic reasons. So far, not one of these ladies has ever had any somatic or psychological problems,' he insists. 'They are absolutely from good families; they have children. They are checked in Russia for genetic diseases and psychiatric diseases.'

According to the information obtained by The Observer under FOI one British clinic that has been sending several couples to Cyprus is the fertility centre at the private Cromwell Hospital, the exclusive private hospital in Central London. Dr Kamal Ahuja, who runs it, says that the Petra Clinic operates to the highest international standards and has an impressive donor-screening programme.

An estimated 30,000 immigrants from the former Soviet Union live in Cyprus, even if only half are legally registered with the authorities. Local Russian-language newspapers often place advertisements seeking 'young healthy girls for egg donation'. Women from the community tracked down by The Observer suggested that 'one in four' of their peers had, at some point in their twenties, donated eggs. Women from Russia and Ukraine fly in just to donate eggs. Most desperately needed the money for rent and utility bills.

Larissa Kovoritsa, a nurse who mediates between Russian donors and a fertility clinic in Nicosia, told The Observer that some women viewed egg donation as their main source of income, going through the process of being injected with hormones at least five times a year. The going rate, she said, was 350 Cyprus pounds (£420) for a cycle in which a woman produced 12 eggs; £500 Cyprus if she produced more. 'For them it's like giving blood, you give and then you forget,' said Tatjana, a 28-year-old tour representative who is from Minsk, Belarus. 'They just give their eggs and get the money, it's a pure transaction.'

Although Tatjana says she has never been a donor herself, she came close to being one eight years ago when she moved to the island and knows many girls who have been donors. Two things stopped her: fear of side-effects and 'it just felt very strange to think that there would be a piece of me, some little Tatjana, out there in the world'.

Meeting at a secret location for fear her Greek Cypriot husband might discover the nature of our discussion, she said many women came to Cyprus from the states of 'new Europe - Poland, Lithuania, Latvia, Estonia. 'They work the cabarets, they'll sleep with men, they'll sell their eggs, and then they go back again.'

Two of her four friends spoke to The Observer on a confidential basis. They admitted they had never been pregnant before, in contravention of UK regulations. 'I was never told I would have to go through psychological tests,' said 33-year-old Yelena from Moscow, who was a donor in her mid-twenties. 'The only paper I was made to sign was one saying I gave up all my rights to the child, which was OK because now I have two of my own and really don't want to think about the past. That was then, when I was hungry and desperate.' But Tatjana agreed that the fees were still 'very attractive ... In Russia you can live off $1,000 for an entire year.'

And would there be no curiosity about the child? 'You know, you can play with your own psychology,' she says. 'In Russia when they execute somebody there is always one soldier who doesn't have a bullet, so in the end nobody is really sure who shot the man. It's a bit like that here. Not all embryo [implants] are successful. In the end, you can never be guaranteed that it was your egg that was the one that was used.'

Source: The Observer

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Monday, May 01, 2006

Moscow Hires US Firm For Image Revamp

MOSCOW, Russia -- Russia is hiring a US public relations company to improve its image as it hosts the G8 summit of world leaders, according to the Financial Times.