Friday, June 30, 2006

Ukraine Team To Get A Little Help From Top Fan

KIEV, Ukraine -- Ukraine's football team will get a little help from its top fan during their World Cup quarter-final against Italy, with President Viktor Yushchenko due to attend the historic match.

Ukraine's football team will get a little help from its top fan during their World...

"Today the president is heading to Germany for a few hours in a blitz visit," said Yushchenko's spokeswoman, Iryna Gerashchenko Friday.

Ukraine's squad had appealed this week for the nation's fan-in-chief to attend the match in Hamburg, saying his presence would provide players with "inspiration and will boost the belief in our strength."

"We're certain that your visit will also help to advance our bid with Poland to host the finals of (UEFA) Euro 2012," said a letter to Yushchenko signed by team captain Andriy Shevchenko, head coach Oleg Blokhin and the head of Ukraine's football federation Grygoriy Surkis.

The Ukrainian president has closely followed the team's progress, calling Surkis on the day of each match and congratulating the team on its wins against Saudi Arabia, Tunisia and Switzerland.

The support "without a doubt helps and inspires the players," the team's letter said.

Ukraine is making its first appearance at the World Cup since gaining independence and its spot at the quarter-finals is the best result of any ex-Soviet republic since the fall of the Soviet Union in 1991.

German Chancellor Angela Merkel is a regular attendee at Germany's matches. Prince Felipe of Spain was at the Spain-France match earlier this week and Britain's Prince William was at the England-Paraguay match earlier in the Cup.

Source: AFP

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Kiev Coalition Endangered By Blockade

KIEV, Ukraine -- Ukraine's largest opposition party strengthened its blockade of parliament Thursday, putting a planned vote on returning Yulia Tymoshenko to the prime minister's job under threat.

Opposition deputies from Regions Party stand near the speaker rostrum with the slogan 'We will defend Ukraine's laws and constitution' after they prevented parliament from voting to confirm Yulia Tymoshenko as Prime Minister in Kiev

Dozens of lawmakers from the pro-Russian Party of the Regions took over the speaker's seat and the seats meant for government members in a bid to prevent the parliamentary session from convening for a second day.

The session, scheduled to start at 10 a.m., did not open.

The blockade comes as Ukraine's new governing coalition -- formed last week by the three parties that led the 2004 Orange Revolution -- planned to call a vote on naming Tymoshenko to the premier's post. They also wanted to vote on giving President Viktor Yushchenko's ally, Petro Poroshenko, the speaker's job.

"Believe me, as a person who took part in a lot of blocking, they cannot sit there forever," Poroshenko said, referring to the times when the coalition members -- then in opposition to former President Leonid Kuchma -- used blockades of parliament as a way to register their displeasure.

Mykola Katerynchuk, from the president's Our Ukraine party, said the party was prepared to wait. Under Ukraine's constitution, lawmakers have four weeks to get the Cabinet in place. On Thursday, lawmakers milled around the session hall and parliament's corridors, waiting to see what would happen.

The Party of the Regions, led by Viktor Yanukovych -- Yushchenko's 2004 election rival -- won the most votes in the March parliamentary election but was shut out of power after failing to persuade any party to unite with it.

The party said Thursday that it objected to the coalition's proposal to combine the votes for the prime minister and the parliamentary speaker into a single ballot, in violation of parliamentary rules. If the votes are held separately, there is a good chance that Poroshenko -- whose big-business background has made him a controversial figure -- would not get enough support to be named parliamentary speaker, which could destroy the coalition agreement.

The Socialists, a member of the coalition, on Thursday asked the president's party to replace Poroshenko with a more palatable candidate. "We must observe the president's slogan to divide business and power," said Socialist Party member Valentyna Semenyuk.

The speaker's vote is typically conducted in secret, which could allow many lawmakers -- even coalition members -- to vote against Poroshenko.

The Party of the Regions is also demanding that it be given chairmanships of key parliamentary committees and more influence in Ukraine's eastern and southern regions, where it dominates.

Yaroslav Sukhiy, a Party of the Regions lawmaker, noted that when his party was in government, the opposition was given the chairmanship of 14 of parliament's 24 committees. The coalition insists it has not made a firm proposal yet, but is considering giving the Party of the Regions only deputy chairmanships.

Ukraine's political life has been paralyzed since the March election ended without a decisive victory, throwing the country into difficult coalition talks. Those talks ended only last week after the estranged Orange Revolution parties agreed to try again to work together.

Last September, Yushchenko sacked Tymoshenko and accepted Poroshenko's resignation as security chief after the two turned on each other with accusations of corruption and incompetence.

Source: AP

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Shevchenko Set For Ukraine's Biggest Game

HAMBURG, Germany -- Ukraine captain Andriy Shevchenko knows he and his team are preparing for the biggest match in their fledgling nation's history when they take on Italy in the World Cup quarter-finals, tonight.

Shevchenko celebrates victory in second round.

The 29-year-old striker, who left AC Milan last month for Chelsea in a £31million deal, will have extra responsibilities again in Hamburg on Friday thanks to the injury which has ruled Andriy Voronin out of the rest of the tournament.

Shevchenko is nonetheless looking forward to a match against a team which will contain many of his former Milan team-mates.

"The Italy team is full of talent, and some of them are my former comrades," said the 2004 European footballer of the year.

"I spent seven marvellous years in Italy and I owe the country a lot - but now we are playing against them in what is the most important fixture in the history of Ukraine."

Shevchenko is happy for Ukraine to wear the mantle of underdogs in their first World Cup since breaking from the former Soviet Union in 1991.

Ukraine and Portugal are the only two teams of the eight quarter-finalists never to have won a World Cup.

"Italy must be favourites," said Shevchenko.

"But what we have to do is stick together as a team and as a unit and play with all our hearts to compensate for our weaknesses."

The loss of Voronin is a big blow for Ukraine coach Oleg Blokhin, another former European footballer of the year who won the prize in 1975 during the Soviet era.

However, the veteran coach has better news in defence where he will be able to welcome back suspended pair Andriy Rusol and Vyacheslav Sviderskyi and the injured Vladimir Yezerskyi for a match which will earn the victors a semi-final against Germany or Argentina.

Source: PA Sport

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Ukrainian Opposition Blocks Parliament

KIEV, Ukraine - Ukraine's opposition party prevented members of a newly formed ruling coalition from taking their seats in parliament Thursday, stopping a vote on returning ousted Prime Minister Yulia Tymoshenko to her former job.

Viktor Yanukovych (C) said his party is prepared to block parliament for another 30 days

The country's pro-Western, reformist parties agreed June 21 to form a coalition government that would return Tymoshenko to the post and reunite the three parties that led the 2004 Orange Revolution. The deal shut out lawmakers from the pro-Russian Party of Regions, which got the most votes in March parliamentary elections.

Ukraine's political life has been paralyzed since the election ended without a decisive victory, throwing this country into coalition talks. Those talks ended only last week after the estranged Orange Revolution parties agreed to try again to work together.

For a second day, Party of Regions lawmakers took over the speaker's seat and seats meant for government members to prevent coalition lawmakers from convening and voting on Tymoshenko and Petro Petroshenko for speaker.

President Viktor Yushchenko later urged political parties to "urgently" sit down for negotiations and he criticized lawmakers, saying they were "forgetting about 48 million people."

"There is a good opportunity now to understand that democracy is advantageous for all — for those who won and those who lost," he said. "But democracy can function only when there exists a respect for the law and rules."

In September, Yushchenko dismissed Tymoshenko and accepted Poroshenko's resignation as security chief after the two turned on each other with accusations of corruption and incompetence.

The Regions group pledged to keep parliament shut down indefinitely to push demands it get chairmanships of key committees. The coalition is considering giving the Party of Regions mostly deputy chairmanships.

The Party of Regions, led by Viktor Yanukovych — Yushchenko's 2004 election rival — said it objects to the coalition's proposal to combine the votes for the prime minister and the parliamentary speaker into a single ballot.

"We will block parliament till the Orange (parties) agree to live and work according to laws and the constitution of the state," Yanukovych said.

Source: AP

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Thursday, June 29, 2006

Ukraine Parliament To Choose PM

KIEV, Ukraine -- Members of parliament in Ukraine are due to vote to elect the country's new prime minister on Thursday.


Former PM Yulia Tymoshenko will be nominated for the position as her political bloc won the most seats out of the ruling coalition.

The governing coalition is made up of the pro-Western parties that supported the mass protests of the so-called Orange revolution.

But the appointment could be delayed because of a protest by the opposition.

Blockade

More than three months after the parliamentary election, MPs will vote on the nomination of Ms Tymoshenko, which should be a formality as she is the choice of the governing coalition.

The process is due to take place in parliament, but since Tuesday the building has been blocked.

Inside the chamber, MPs belonging to the pro-Russian opposition party are staging a sit-in to prevent parliament from working.

They say that the ruling coalition is not acting in a constitutional manner and that the opposition has not been given any of the influential committee posts.

The opposition says its MPs will blockade parliament 24 hours a day for the next four weeks in an attempt to force a new election to be called.

Analysts believe this action is being taken to weaken the position of the Orange coalition, which took months to create.

This is not the first time that Ukraine's parliament has faced a blockade.

When it happened in the past, MPs held their session in another building in the capital.

It is thought that this option is being considered.

Source: BBC News

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We Must Show Heart - Shevchenko

COLOGNE, Germany -- Ukraine captain Andriy Shevchenko says his side must show great spirit if they are to have a chance of beating Italy in Friday's World Cup quarter-final.

Ukraine captain Andriy Shevchenko

"The Italy squad is packed with talented players," said Shevchenko.

"Italy are favourites but the important thing for us is to play with enough heart to make up for any technical shortcomings we may have.

"We must recover our strength after our exertions against Switzerland and go on to the pitch as a solid unit."

The Chelsea striker said reaching the last eight - courtesy of a penalty shoot-out victory over Switzerland - was a great achievement.

And it was something few expected after their heavy loss in the opening game of the group stages.

"After our 4-0 defeat against Spain, a lot of people wrote us off," he added.

"Getting to the quarter-finals is cause for celebration though - both for the team and for the entire people of Ukraine."

Ukraine are making their World Cup debut after winning independence from the Soviet Union in 1991.

And Shevchenko, scorer of two goals in four games at this year's tournament, is determined to keep his side's World Cup campaign alive.

"Italy are one of the great footballing nations but the Ukrainian team has a big heart," he said.

"We will make things very difficult for them. We want to put Italy out."

Source: BBC Sport

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Wednesday, June 28, 2006

Ukraine Footballers Score Herculean Feat -- Uniting The Country

KIEV, Ukraine -- Forget that they have reached further in the World Cup than any ex-Soviet nation since the fall of the communist bloc, Ukraine's football team has scored a more impressive feat: uniting this fractious land.

Ukrainian soccer fans in Kiev celebrate their national team's victory over Tunisia in the 2006 World Cup opening round 23 June 2006. The Ukrainian team has since qualified for the tournament's quarter-finals rallying the entire country disregarding political belongings.

That is no small deed in a country of 47 million that was split into two warring camps by the "orange revolution" in late 2004.

One side, the Ukrainian-speaking nationalist northwest, backed Viktor Yushchenko, a pro-Western reformer eventually swept to the presidency. The other, the Russian-speaking southeast, supported Viktor Yanukovych who wanted to retain close ties to Moscow.

But those lines have steadily blurred as Ukraine's boys in yellow advanced through their first-ever World Cup to secure a spot in the quarter-finals against Italy on Friday.

"Nothing unites quite like football," said Vassyl Androsenko, a 52-year-old engineer in Kiev.

Indeed the team's victories have led to utterances that would have been considered heresy only a month ago.

"Trust me, if Ukraine becomes champions I won't care even if Yanukovych becomes premier," said Andriy Ratskyi, a 48-year-old construction worker in Lviv, the nationalist bastion in the west where the pro-Russian ex-premier Yanukovych has been considered the evil boogeyman for nearly two years.

"The main thing is that we win," he said.

"When the team plays... nobody cares what political party the players belong to because at that moment they're all ours," said Yelena Stefanovich, a 32-year-old nurse.

"For the first time in the recent past the east and the west have a common goal," said Andriy, a 36-year-old economist in Lviv. "Usually what's good for Lviv is bad for (the eastern city of) Donetsk and vice versa. But our team's victory is good for everyone.

"I think these guys have done more tonight to reunite the country than all politicians put together," Petro Poroshenko, tipped to be the next parliament speaker, said after Ukraine secured its quarter-final spot by beating Switzerland in a penalty shootout earlier this week.

The football team can serve as an example to the nation's politicians whose bickering and infighting has kept the nation in perpetual turmoil for nearly two years.

Many fans agree.

Like the national parliament, Ukrainian footballers come from all corners of the country, but that doesn't prevent them from working together.

They don't argue whether to speak Ukrainian or Russian, but freely converse in both with each other on and off the field.

"Trust me, if our politicians could agree and understand each other like (star striker Andriy) Shevchenko and (fellow striker Andriy) Voronin and make decisions as quickly as (midfielder) Maxim Kalinichenko, people would like them as much as the footballers," said Andriy, a 36-year-old economist from Lviv.

"Today politicians can learn from footballers on how to work towards a goal," said Roman Bezsmertnyi, a top official in one of the parties that argued for three months on whether or not to reunite with its onetime allies in a governing coalition after parliament elections in March.

Aside from unity, the travails of the football team also seem to be having an surprising effect on academics.

"I watched the (winning) match against Saudi Arabia with people from my class and on the next day, we had a test and the whole class passed," said Ivanna Gutsylo, 18.

"In the class that had exams after (the loss) to Spain, five people failed," she said.

Source: AFP

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Despite Coalition, Parliament Off To A Rough Start

KIEV, Ukraine -- Three months of protracted negotiations over the forming of a parliamentary majority came to an end on June 22 with Ukraine’s three Orange political factions finally coming together to sign a coalition agreement that will form the basis of the next government.


However, the tentative allies, as well as the opposition, continued to employ stalling tactics as the Post went to press on June 27.

The pro-presidential Our Ukraine bloc, the Yulia Tymoshenko Bloc (BYuT), and the Socialist Party signed the June 22 accord not only as the constitutionally allotted timeframe for establishing a parliamentary coalition was coming to an end, but also as Ukraine prepared to commemorate on June 28 the 10-year anniversary of the adoption of its Constitution, in 1996.

An amended version of the Constitution, adopted in December 2004 as a part of a compromise that brokered an end to the political crisis known as the Orange Revolution, shifted key powers from the president to parliament.

The recent coalition agreement finally settled which political factions would control the now more powerful prime minister and parliamentary speaker posts.

BYuT, as the largest member of the coalition, having received 129 seats in the March 26 elections, will nominate the candidate for prime minister, undoubtedly harkening the return of the bloc’s leader, Yulia Tymoshenko, to head the new government. Our Ukraine, as the second largest coalition member, with 80 seats, announced on June 27 that their bloc would nominate Petro Poroshenko, a business mogul and close associate of President Viktor Yushchenko, as parliamentary speaker.

However, lingering questions about the constitutionality of the package of reforms adopted during the Orange Revolution, ongoing negotiations as to when the parliament will swear in judges long ago appointed to Ukraine’s Constitutional Court, which could be called upon by Yushchenko to review the reforms, and the opposition’s blockade of parliament on June 27 illustrate that despite the establishment of a coalition, Ukraine’s transition to a parliamentary-presidential republic is far from over.

The Orange coalition agreement brought an end to months of speculation as to whether Our Ukraine would choose to form a government with its allies during the Orange Revolution – the SPU and BYuT – or build a coalition with the Party of Regions, the largest of the new parliament’s two opposition parties, which bitterly competed for the presidency against Yushchenko in 2004, setting off the Orange Revolution.

Yuriy Yakymenko, an analyst from the Razumkov Center think tank, noted that there was more than one factor contributing to the June 22 accord, including that more Ukrainians preferred an Orange coalition than one with Regions, and that Our Ukraine had more in common with BYuT and the SPU in terms of policy orientation, and as such, there were fewer issues to overcome during negotiations.

However, he added that the final contributing factor was that the timeframe for forming a coalition, explicitly outlined in the Constitution, was almost over.

“Everyone was working toward a specific outcome during these negotiations. But ultimately, the choice was either to make some concessions to form a coalition and get at least something, or not to reach a compromise, possibly forcing the dismissal of parliament and new elections and getting nothing,” Yakymenko said.

According to recent polls, Our Ukraine could lose even more votes to Tymoshenko if new parliamentary elections were held.

Political experts have welcomed the establishment of a parliamentary coalition as a positive step, adding that despite protracted negotiations, the coalition agreement was in itself an indicator of significant changes in Ukraine’s political system.

Dr. Olexiy Haran, the regional vice president of the Eurasia Foundation, noted that “this is the first time that Ukraine has had a parliament structured along party lines, and these parties have negotiated to create a coalition,” adding that a coalition government, common in Europe, is a step toward European standards for Ukraine.

Moreover, he added, “Ukraine’s new political system resembles in some ways the French “cohabitation” model, where the prime minister and president must cooperate.”

Experts anticipate that the government formed by this coalition has a better chance of functioning and holding together than the previous Orange team, which fell apart when Yushchenko dismissed Tymoshenko as premier in September 2005, amid allegations that she, now likely to be the country’s next premier, shook investor confidence and poorly managed Ukraine’s economy.

Yakymenko said “there are two important reasons why the new coalition government should function more effectively. First, the coalition partners have significant negative experiences to draw upon, having witnessed the consequences of perpetually arguing among themselves… and this is one of the reasons the coalition process took so long.”

Secondly, he said, the coalition agreement itself outlines mechanisms that put checks on coalition members, and explicit steps that should be taken if the coalition does not hold together.

For example, according to Yakymenko, the coalition agreement stipulates that members cannot raise issues during parliamentary sessions that have not been previously agreed upon by the Council of the coalition.

And, he added, although not a part of the coalition accord, the Orange coalition will probably vote through the parliamentary speaker and the prime minister in a “packet,” an agreement that would help ensure that coalition members vote through both nominees instead of voting for one and not the other.

If and when the coalition coalesces and forms a functioning government, these measures should theoretically diminish public divisiveness in parliament and encourage cooperation among the coalition members.

However, as the Post went to press on June 27, Our Ukraine’s position appeared to have changed once again, with the newly nominated parliamentary speaker, Petro Poroshenko, announcing that Our Ukraine does not categorically insist on voting through both the prime minister and speaker together in a packet, insofar as the pro-presidential party is counting on all sides to fulfill the coalition agreement with respect to the distribution and appointment of government and ministerial positions.

In the meantime, the parliament’s largest faction, the Donetsk-based Party of Regions, threatened to frustrate work in the parliament on June 26 if the Verkhovna Rada’s leaders are not elected by parliamentary procedure, which stipulates that the speaker should be elected by virtue of a secret ballot individually and not as a part of a “packet.” Moreover, Regions is demanding that parliamentary committees be distributed among all factions proportionally, including their own.

Eurasia Foundation’s Haran noted that “the effectiveness of the new Ukrainian coalition will depend on implementation of the priorities laid out in the coalition agreement, with its clearer divisions of power and political, judicial, and public administration reforms.”

Even if the new Orange coalition may benefit from greater experience and more clearly delineated responsibilities, this past week has shown that this certainly does not ensure that the new government will be introduced smoothly.

Poroshenko’s candidacy for speaker was announced on June 27 as the Party of Regions simultaneously disrupted the Verkhovna Rada’s plenary session, blocking off the podium, presidium, the places in parliament where the president and government sit, as well as the electronic system “Rada,” which allows people’s deputies to register and vote.

The coalition had planned to raise the question of voting on the speaker and prime minister on June 29, according to Tymoshenko, provided that Our Ukraine had selected its nominee for speaker.

Based on what occurred in parliament on June 27, Our Ukraine’s Mykhail Pozkyvanov stated at a press conference that “one possibility is to gather in another location and continue working, especially because we [the coalition] now have a majority,” not ruling out the possibility that Regions’ will continue its blockade into June 29.

On June 26, Our Ukraine proposed that at this disrupted June 27 parliament session, the Rada should swear in the Constitutional Court judges appointed by President Viktor Yushchenko last year. The previous parliament refused to administer the oath despite repeated requests by the president beginning in late 2005, and as a result, Ukraine has since been without a functioning Constitutional Court.

Our Ukraine’s Mykola Katerynchuk stated that the Communist Party of Ukraine, the new parliament’s second opposition party, intended to physically block the swearing-in process, possibly going as far as keeping President Yushchenko from entering the parliament, because the ceremony itself requires the presence of the president, parliamentary speaker and prime minister. Regions’ blockade in parliament effectively achieves the same objective, by bringing the parliament to a grinding halt.

An added complication is that in late May 2006, Yushchenko himself stated that he would not submit the candidacy of the newly appointed prime minister and parliamentary speaker, essentially a parliamentary formality, unless his appointed judges to the Constitutional Court were sworn in beforehand.

This is more than an exercise in checks and balances between the legislative and executive branches. At issue here is also the constitutionality of the reforms adopted in December 2004, which redistributed some of the extensive presidential powers that former President Leonid Kuchma had amassed during his two terms in office to the parliament, among other changes.

However, the legislative and constitutional reforms also effectively narrowed rather than widened the scope of public representation in the government, according to Vsevolod Rechytskyj, a professor of constitutional law at the National Academy of Law in Kharkiv.

One example is the change to the parliamentary election law, which, in addition to eliminating majority districts, restricts eligible people’s deputies to those running on party lists, excluding the possibility of independent locally supported candidates.

A long proponent of constitutional reforms, Oleksandr Moroz, whose Socialist party rounds out the Orange coalition and will nominate the first deputy prime minister, argued that the speaker and prime minister should be voted in before swearing in constitutional court judges.

Even though the reforms brokered in the context of the Orange revolution are unlikely to be overturned by the Constitutional Court, given the very complicated nature of this political-legal compromise, according to Yakymenko, lingering questions over their constitutionality threaten to hold up more immediate and pressing political objectives.

Source: Kyiv Post

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World-Injury Ends World Cup For Ukraine's Voronin

BERLIN, Germany -- Ukraine striker Andriy Voronin will miss the rest of the World Cup because of a thigh injury, leaving the team to find a new partner for Andriy Shevchenko ahead of Friday's quarter-final against Italy.

Ukraine striker Andriy Voronin (L)

"He has slightly torn his thigh muscle," team spokesman Igor Miroshnychenko told Reuters on Wednesday. "He will be out for two weeks."

Voronin picked up the injury during Ukraine's second-round game against Switzerland on Monday, which went to a penalty shootout that Ukraine won 3-0.

The 26-year-old Voronin works well with Shevchenko, one of the world's most feared strikers, and the pair have played together in every match in the tournament so far.

Coach Oleg Blokhin could replace him with Andriy Vorobei, who started against Switzerland on Monday when attacking midfielder Serhiy Rebrov was dropped to the bench.

With Voronin out, the experienced Rebrov is likely to return to the starting line-up. Also back in the frame for Friday's match in Hamburg is defender Volodymir Yezersky, who missed the last three games with a thigh injury.

"He has been back in full training. If Blokhin needs to use him, he is ready to play," said Miroshnychenko.

The game kicks off at 1900 GMT on Friday and the winner will face either Germany or Argentina in the semi-finals.

Source: Reuters

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Rising Living Costs Place Kyiv High On List Of Expensive Cities

KIEV, Ukraine -- Ukraine’s capital ranks as one of the 50 most expensive places to live in the world, coming in 21st on a list of 144 cities surveyed by Mercer Human Resource Consulting, a global leader for human resources and related financial advice.

According to an annual survey by Mercer Human Resource Consulting, Kyiv ranks as the 21st most expensive city to live in out of a list of 144 major world cities surveyed.

In Mercer’s annual Worldwide Cost of Living survey, Kyiv has moved up from 54th to 21st place compared with last year’s survey, sharing its position with Rome and Vienna.

With a score of 89.8, Kyiv is just around 10 points away from New York, which represented the survey’s base city at 100 points. The Ukrainian capital was separated by just a little over 30 points from Moscow, which this year replaced Tokyo as the world’s most expensive city, with a score of 123.9, according to Mercer’s ranking.

Kyiv’s dramatic rise to the top of the international list is mainly due to the appreciation of the local currency, the hryvnia, against the U.S. dollar, and “general price increases,” Mercer’s press release said.

Many other Eastern European cities, on the contrary, have dropped sharply in the ranking due to the devaluation of local currencies against the dollar, the release stated. For example, Prague has fallen 22 places to 50th place in the ranking.

Mercer’s survey measures the comparative cost of over 200 items in each city, including housing, transport, food, clothing, household goods and entertainment, and is aimed at helping multinational companies and governments determine compensation allowances for their expatriate employees.

Kyiv real estate prices has skyrocketed in recent years, as has the cost of living in general due to rising fuel costs and other changes that followed in the wake of the Orange Revolution. Another change under the administration of President Viktor Yushchenko is lighter visa restrictions for foreigner visiting Ukraine.

“We have seen significant shifts in the cost of living rankings over the past few years, reflecting a changing global market.

For many companies, it can now be more expensive to send employees to work in Russia or Korea than places like Japan or Switzerland, which are often perceived to be more costly,” said Rebecca Powers, a senior consultant with Mercer’s international business.

According to Powers, more companies are now sending employees on expatriate assignments, so there is a greater need to keep pace with the cost of living changes.

Some 44 percent of multinational companies have reported an increase in the number of international assignments to and from locations other than their headquarters over the past two years, according to Mercer’s 2005/2006 International Assignments Survey.

Much of the increase in the number of international assignments, the survey says, is due to the widespread use of short-term placements, which have become more prevalent over the past few years.

Moscow has climbed up to the leading position in the Cost of Living ranking from the fourth place it held last year, while Seoul and Tokyo hold second and third places respectively.

“Steep accommodation costs have contributed to Moscow’s high ranking, as the recent property boom has driven up rental prices for expatriates,” explained Anna Krotova, Mercer’s Geneva-based senior researcher.

London has dropped two places from last year and ranks fifth, according to the survey.

Krotova stressed, however, that “cities move in the ranking due to prices and currencies’ variations vs. New York […] therefore the position in the ranking is a relative indicator [of the cost or living].”

Kyiv, for example, moved up by 33 positions from last year, but its index only went from 84.5 to 89.8, according to Krotova.

Source: Kyiv Post

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Ukrainian Bodyguards Take Lessons From Foreign Trainers

KIEV, Ukraine -- Bodyguards have long been a part of the post-Soviet landscape in Ukraine, hired by the country’s new capitalist elite as much for decor as protection.

Titan bodyguards

But providing security is also a business, and like other businesses in Ukraine, is developing with input from abroad.

The Ukrainian Union of Police Peacekeepers Veterans (UUPPV) has invited in a foreign trainer to conduct an upgrade course for Ukrainian bodyguards in accordance with the standards of the International Bodyguards Association (IBA).

From June 15 to 21, the UUPPV held a course taught by British citizen James Shortt, the general director of IBA.

“Intelligence, professionalism and literacy are the main points of our training,” said Yuriy Kozlenko, the director of UUPPV.

According to Kozlenko, the idea is to change the Ukrainian public’s perception of bodyguards, as well as the mentality of the country’s bodyguards themselves.

“They shouldn’t be considered heroes who catch bullets for the person they are guarding, but should know how to arrange security at the highest level, so that an attacker will have no room for his attack,” Kozlenko said.

Shortt’s course was his second in Ukraine, following an earlier one held last January.

The market for bodyguards is on the rise in Ukraine. The State Guard Service, which is a market participant and regulator, has issued around 5,000 licenses to various security agencies since Ukraine became independent, and more than 300 private security companies are currently registered in Kyiv alone.

According to Kozlenko, as demand for professional bodyguards increases, private bodyguard companies are beginning to pay more attention to strategic thinking in addition to paramilitary training.

“Bodyguards must be intelligent, reliable and well-organized. We are talking about a completely different system of security, which is not spectacular, but effective and efficient,” said Kozlenko.

Shortt, who also licenses instructors according to IBA standards, teaches bodyguards with military backgrounds the total safety concept, including attention to their own behavior and dress.

According to the State Guard Service, the annual turnover of the bodyguard business in Ukraine is Hr 27-28 million ($5.6 million).

The biggest share of this business, around 25-30 percent, belongs to the State Guard Service, whose subunit, Titan, provides Hr 7.5 million ($1.5 million) worth of body guard services annually.

The State Guard Service, which is subordinate to the Ministry of Internal Affairs, earned its leading position on the market due to its monopoly on the use of firearms.

Bodyguards from all other Ukrainian bodyguard agencies are prohibited from carrying firearms, according to Ukrainian legislation.

“Bodyguards from private companies work within the same legal limits as normal Ukrainian citizens, and the legal consequences of his client’s protection are the same as if he would be a passerby,” said Vitaly Maksymovych, the managing director of the private security firm Sprut, which provides security for 1,700 facilities in Kyiv.

Private bodyguards are allowed to carry only BB guns, gas pistols or rubber bullets.

All the same, according to Maksymovych, the industry isn’t suffering as result.

“Bodyguard services are the third largest security market niche after electronic security and physical security of real estate,” he said.

The majority of bodyguards’ clients live in Kyiv and other big cities, like Donetsk, Lviv and Dnipropetrovsk.

The State Guard Service said that they protect a third of all bodyguard clients across Ukraine.

State and private security companies agree that the bodyguard market will continue to grow, especially if new legislation is passed.

“Last year we got more than 50 new customers,” said Petro Synycky, the deputy director of the State Guard Service.

Titan’s staff totals 663 bodyguards and 229 reservists, he added.

Bodyguard services are still relatively cheap in Ukraine.

“In Kyiv, prices start from Hr 25 ($5) per hour. In other Ukrainian cities, the price is Hr 12-20 per hour. In Moscow, they cost at least 15-20 euros per hour,” said Synycky.

All Titan bodyguards are required to have a state certificate of qualification from a training school in Vinnytsya Region. This is the only place in Ukraine where a bodyguard can become qualified.

Shortt’s course is a supplement to this certification.

“There are a lot of private bodyguard schools, but none of them give you the right to work for the State Guard Service,” stressed Synycky.

“According to current legislation, bodyguards have to pass an appropriate course, medical, psychological, and take a drug test to get a job. It’s not necessary to go through military service, but it’s obvious that those who didn’t are not going to work in security,” said Maksymovych.

“The key point in a Ukrainian bodyguard school is to teach someone how to manage a dangerous attack by a malefactor, but they don’t teach them how to foresee it and keep it from happening,” said the UUPPV’s Kozlenko.

The IBA training program is oriented toward improvement and upgrading the skills of bodyguards who already work in this sphere.

“All training schools, like Vinnytsya training school, give only basic knowledge and the right to call a person a bodyguard, but it doesn’t mean he is a professional,” said Kozlenko.

It takes 40 days and Hr 1,624 ($325) to get a bodyguard diploma approved by the Ministry of Education and the Ministry of Internal Affairs at the Vinnytsya training school.

A total of 350 bodyguards graduated from the Vinnytsya training school in 2005, some of them currently work for Titan, and others for private companies.

“In our program, we stress physical training and drill tactics. We also pay attention to psychological preparation of bodyguards, but, unfortunately, it isn’t enough. So I would say the more upgrading trainings that are introduced in Ukraine, the better,” said Yuriy Kovalchuk, the deputy chief of training at the school.

“We train bodyguards for nongovernmental security services, business people and politicians who are not provided with free security,” said Kozlenko.

IBA plans to eventually hold courses to train Ukrainian trainers, who will then become licensed to upgrade Ukrainian bodyguards according to IBA standards.

Shortt’s basic training costs Hr 5,040 ($1,000) and lasts 40 hours; while specialized training costs Hr 2,520 and lasts 20 hours.

“We know Mr. Shortt from bodyguard competitions, which take place every autumn in Yalta. Some of our employees have visited his lectures, but now it is impossible to free bodyguards up from service for [additional] training,” said the State Guard Service’s Petro Synycky.

Source: Kyiv Post

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Tuesday, June 27, 2006

Ukraine Leader Phones Coach, May Attend Next Game

KIEV, Ukraine -- Ukraine President Viktor Yushchenko phoned coach Oleg Blokhin on Tuesday to congratulate the national team on their latest World Cup victory and said he might come to support them in the quarter-finals.

Viktor Yushchenko (R) and Coach Oleh Blokhin in file photo

Kisses, chocolates and cakes were distributed and champagne drunk across Ukraine as Blokhin's side surpassed expectations by knocking out Switzerland 3-0 in a penalty shootout to set up a last eight meeting with Italy.

"The president said he and his family, together with millions of other fans, watched yesterday's game until late at night and he kept his fingers crossed, especially during the penalty shootout," Yushchenko's press service said.

"The president also hasn't ruled out turning up in person to support our team in the next game."

Hundreds of Ukrainians poured into the streets chanting "Forward Ukraine!" and waving flags in the national colours of blue and yellow after the second-round game went to extra time and penalties before ending in the early hours of the morning.

People congratulated each other on public transport and in offices across the country on Tuesday. Television channels showed several parliamentary deputies turning up for a session sporting national team scarves and caps.

Ukraine are playing in the World Cup finals for the first time. Before the tournament, they set a modest target of qualifying from their first round group.

Blokhin has admitted that Ukraine have not played the prettiest football but said results were what counted.

Ukraine face Italy in Hamburg on Friday.

Source: Reuters

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Ukraine Toasts Its World Cup Heroes

KIEV, Ukraine -- Ukraine toasted its hero footballers on Tuesday after the team defied expectations to secure a place in the World Cup quarterfinals by beating Switzerland 3-0 in a penalty shootout.

Ukrainian fans react during the World Cup match between Ukraine and Switzerland as the match is broadcast live in the Ukrainian capital of Kiev, late Monday, June 26, 2006.

"We're in the quarterfinals!" screamed the headline of one Kiev daily.

"Let's call it like it is: They're heroes," one sports commentator said at the end of a match that the Ukrainians won after the match had finished locked at 0-0 after extra-time.

Thousands of Ukrainians shouting "Uuu-krai-na!" took to the streets throughout the former Soviet republic after the game finished in the early hours of the morning.

In the capital, Kiev, fans virtually took over the central Independence Square and Khreshchatik thoroughfare for hours, waving the blue-and-yellow national standard from honking cars and motorcycles.

In the western city of Lviv, hundreds of fans converged on the central square singing the national anthem.

In the eastern city of Dnipropetrovsk, the celebrations lasted until 4am local time after the game was aired live on a giant screen in the centre of town.

Ukraine -- a country that was deeply divided during the 2004 "orange revolution", where government has been in continuous turmoil since, and where another gas showdown is looming with Russia -- was in need of some good news and its football team has provided it.

"The successful playing of the Ukrainian team works to unite Ukraine and instils patriotism," President Viktor Yushchenko said after congratulating the team on its historic win, according to a statement from his office.

"The president thanked the players and training staff for the wonderful present that they have given their fans" ahead the 15th anniversary of Ukrainian independence in August, the statement said.

The victory over Switzerland was all the more sweet because it was largely unexpected from a team that is making its first appearance at the World Cup.

"I don't think that anyone really believed in us," head coach Oleg Blokhin said in a post-match interview, according to the Interfax news agency. "Many had long ago written us off, thinking that debutants can't be competitive against experienced teams."

"I'm in seventh heaven," he said.

In a nation where the average monthly wage is $185 and where nationals need a visa to get into the European Union, the number of fans able to travel to Germany to support the team has been few, and most have had to contend with watching the matches at home.

Fans watch the matches on screens set up in the nation's major cities, while bars and restaurants broadcast the games and overflow with clients.

The president calls the head of the national football federation ahead of every game and business comes to a standstill during the matches.

Several large companies have allowed employees to either leave work to watch the matches or to cheer the home team on TV screens set up at the office.

Ukraine face Italy in a quarterfinal match on Friday.

Source: AFP

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Yanukovych's Party Blocks Rostrum In Ukraine's Parliament

KIEV, Ukraine -- Members of Ukraine's Party of Regions have blocked the rostrum in the country's parliament Tuesday in a bid to thwart a session of the Supreme Rada.


Viktor Yanukovych's party, which won the largest share of the parliamentary vote, has declared itself in opposition to the Ukrainian authorities and the new parliamentary coalition, which comprises Western-leaning "orange" groups.

"They will not let any action take place in parliament," said Yevgeny Kushnarev, a Party of Regions leader.

Pro-presidential grouping Our Ukraine, Yulia Tymoshenko's bloc, and the Socialist Party agreed to form a coalition majority in the Rada June 22, after months of political wrangling following elections in March 26.

The new coalition is entitled to appoint the prime minister and most Cabinet members.

Source: RIA Novosti

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Ukraine Survives On Penalty Kicks, Edges Swiss

COLOGNE, Germany -- After 120 minutes of soccer between Ukraine and Switzerland couldn't produce a goal, the game had to be decided by penalty kicks. Ukraine coach Oleg Blokhin couldn't take it any more.

Ukraine players surround goalkeeper Oleksander Shovkovsky after the penalty shootout of the second round World Cup 2006 match between Switzerland and Ukraine in Cologne, June 26, 2006.

So he left. As his team went back on the field for soccer's flip-of-the-coin process for determining a winner, Blokhin headed for the dressing room at Rheinenergie Stadion.

"A penalty shootout is like Russian roulette," he said later. "For 120 minutes, I had to watch the game. (The shootout) was too much to take."

At least Blokhin could take refuge from his nerves. There was no hiding for the Swiss players who took their team's penalty shots. In a dismal performance that their coach attributed to "nerves," three Swiss players went to the spot and three Swiss players missed, a gallingly bad success rate. Two of the kicks were little more than dribblers that hit Ukrainian goalie Oleksandr Shovkovskyi. The other slammed off the bar.

When Ukraine's Oleg Gusev went to the left corner while Swiss goalie Pascal Zuberbuehler dived the other way to give Ukraine a 3-0 win on penalty kicks, the Ukrainian players exploded in glee while the Swiss players stood in shock. Five minutes after the game, while Ukrainian players danced in a circle around their flag at the other end of the field, Zuberbuehler stood hunched over in front of the goal. "The emotions overwhelm you after such an event," Shovkovskyi said.

Ukraine's Blokhin said: "I don't really know what to say to be honest. How shall I put what's going through my head? How shall I find the words?"

Ukraine is now the unlikeliest team in the tournament's final eight and will face Italy on Friday in Hamburg for a spot in the semifinals. Meanwhile, Switzerland was eliminated despite not allowing a goal in four games.

"There is an emptiness now," said Swiss coach Kobi Kuhn, who was firmly rooted on his bench long after the game had ended. "I'm not thinking very much about the match. . . . Right now, there is a very big disappointment, a feeling of emptiness which keeps me from giving much thought to he match."

There was a feeling of emptiness for many of the 45,000 fans, who frequently whistled in derision at the uninspired play on the field. While the two coaches talked of the level of play, whatever subtleties they saw were lost on most everyone else.

Ukraine is having a bit of a revival after starting the tournament by getting a 4-0 pasting from Spain. They followed that with a 4-0 win over Saudi Arabia and then secured passage with an uninspiring 1-0 win over Tunisia. For the team touted in some circles as an underdog to go deep in the tournament, Ukraine, along with star forward Andriy Shevchenko, has been a major disappointment. But history will record Ukraine, taking part in its first major international tournament, is one of the final eight teams.

"I think nobody really had confidence in us," Blokhin said. "Most people had written us off. Some thought we had played like beginners, especially against Tunisia. There was harsh criticism of our tactics. Tonight, you see we can play good, high quality, football."

That "high quality football" produced few scoring chances for either team. Shevchenko put a header off a free kick off the crossbar in the 20th minute. Swiss striker Alexander Frei hit a curving free kick three minutes later that also caught the crossbar. In the second half, Andriy Gusin was just wide with a header off a corner kick. As regulation ended, whistling was the predominant sound in the stadium.

Finally, the game went to penalty kicks. Shevchenko took the first shot and it hit it neither far enough from the center or hard enough to get past Zuberbuehler, whose save left the Swiss giddy. ("Shevchenko missed?" Blokhin said afterward. "I did not know.") But Marco Streller did the exact same thing Shevchenko did, and the shootout was even.

Ukraine's Artem Milevskiy faked out Zuberbuehler, tapping a slow roller up the middle while the keeper dived to his right. Tranquilo Barnetta rocketed a shot off the bar and Serhiy Rebov followed for Ukraine with a blast to his right that made it 2-0. When Ricardo Cabanas' shot went into Shovkovskyi's body, the scene was set for Gusev. He went to far left corner, and Ukraine advanced.

Source: St. Louis Post-Dispatch

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Ukraine Journalist's Mother Refuses Burial

KIEV, Ukraine -- The mother of a journalist slain nearly six years ago still doubts that a body in the morgue is that of her son, and she will continue to refuse burial, a newspaper reported Monday.


Heorhiy Gongadze, who wrote about high-level corruption on an Internet news site, was abducted in 2000. A decapitated body - identified by government authorities as Gongadze after numerous forensic tests - was later found in a forest outside Kiev.

The killing triggered months of protests against then-President Leonid Kuchma after a key witness later released tape recordings in which voices resembling those of Kuchma and others were heard conspiring against Gongadze.

Three former policemen went on trial for the killing earlier this year, while the investigation to find the mastermind is said to be continuing. Kuchma has denied any involvement.

Gongadze's mother, Lesya Gongadze, has repeatedly rebuffed official efforts to persuade her to claim the remains, which continue to be held in a morgue in the outskirts of Kiev.

Her refusal has helped, in part, to pressure authorities to solve a case that sparked public outrage against Kuchma, and remains a major test for President Viktor Yushchenko, who pledged to bring the journalist's killers to justice.

"I do not want to bury a stranger's remains,'' Lesya Gongadze was quoted as telling Gazeta Po-Kievsky. "Maybe the Prosecutor General's Office believes that if they give me the body, it will remove them of any responsibility for this dragged out case.''

Lesya Gongadze added that to claim the body, she would be forced to get a certificate "that wouldn't list the reason for death, the time or the place.''

Source: AP

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Ukraine Outlasts Switzerland On PKs

COLOGNE, Germany (AP) -- Ukraine survived a match devoid of goals and good chances by beating Switzerland 3-0 in a penalty shootout Monday to earn a spot in the quarterfinals.

Ukraine's Andriy Shevchenko reacts during the extra-time of the World Cup Round of 16 soccer match between Switzerland and Ukraine in the World Cup stadium in Cologne, Germany, Monday, June 26, 2006.

After 120 scoreless minutes, Oleg Gusev scored the deciding penalty.

Ukraine will face Italy in the quarterfinals on Friday in Hamburg.

Both teams came close to scoring in the first half of regular time, each hitting the bar.

Ukraine striker Andriy Shevchenko dived to head the ball from eight meters in the 21st, but the ball bounced to the ground and up onto the crossbar before being cleared.

Three minutes later, Switzerland striker Alexander Frei shot from 20 meters and the ball bounced off the crossbar.

In the 34th, Switzerland defender Johan Djourou, who started for injured Arsenal teammate Philippe Senderos, was taken off with a suspected groin injury. Stephane Grichting replaced him.

Ukraine goalkeeper Oleksander Shovkovsky punched away Hakan Yakin's set-piece from the right wing before the first half ended. Yakin was replaced in the 63rd minute by Marco Streller.

Shevchenko got close again in the 68th, chesting the ball and then dribbling through the Swiss defense before shooting from the edge of the area and past the post.

Five minutes later, Ludovic Magnin sent a free kick onto the roof of the net.

Tranquillo Barnetta got the only yellow card of the match in the 59th minute, for a push from behind. This set up a free kick by Shevchenko from 20 meters, which was deflected off the wall and out for a corner.

Switzerland's Johann Vogel had the best chance to score in extra time, sending an 18-meter shot toward the goal in the 101st, but Shovkovsky made the save.

Source: AP

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Monday, June 26, 2006

Left Bank Could Boast Tallest Skyscraper In Ukraine's Capital Kyiv

KIEV, Ukraine -- Ukrainian company has announced the construction of a $340 million skyscraping hotel and office complex on Kyiv’s Left Bank, but questions remain as to when the project, which will give the city its tallest building to date, will get off the ground.

Gradostroy's other projects

The 60-floor building is slated to include a shopping mall, sports center and underwater restaurant on a 14-hectare plot of land in the capital’s Darnytsya district, but the developer, Gradostroy, still has to obtain a building permit.

“There is only one way to build such a high building. First, you have to get a permit from Kyiv’s town planning council to see if the local council needs this building. Afterward, we take up the project to check for safety issues,” said Anatoly Necheporchuk, deputy chief of the structural engineering department at the Ministry of Construction and Architecture.

“Ukraine’s construction business is far ahead of Ukrainian building legislation,” said Ihor Khlopyachy, marketing director for Gradostroy.

Gradostroy, which has been on the market since 2001 and was one of the contractors for Kyiv’s up-market Mandarin Plaza, has launched two residential buildings in Kyiv and has another one currently under construction.

The Darnytsa project will be Gradostroy’s and Kyiv’s tallest building.

Buildings higher than 25 floors have additional technical requirements, especially with regard to fire safety, said Necheporchuk.

“In the near future, there will be 30 building projects in Kyiv that exceed this limit, but only five of them will be put into use any time soon,” he added.

“It is not a question of a building’s technical feasibilities. The main thing is that firefighters have ladders that only go up 73 meters. This is our safety limit. So above all, builders need to provide some sort of external evacuation for people,” said Necheporchuk.

And this all costs money, with building costs going up by 30 percent per square meter if a building goes higher than 25 floors, according to Necheporchuk.

“It makes sense to build up, to multiply the prime price of buildings and to lengthen the terms of returns on a building, but only if the high cost of land or high demand for it in a certain area justifies this,” said Vitaliy Boyko, deputy director of Ukrainian Trade Guild, a consulting company that took part in the initial marketing research of Gradostroy’s project.

The Trade Guild has suggested a different solution for the hotel and office complex.

If they get the permit, it will take Gradostroy 50-60 months to finish construction, putting the completion dates somewhere near the end of 2011.

Real estate consulting companies working in Ukraine note that the market for commercial real estate is expected to continue growing for the next several years, and Gradostroy is confident that it will make a return on its initial investment, the amount of which Khlopyachy declined to specify.

“Our company has already started renting the area,” said Khlopyachy, adding purchasing the land would be much more expensive.

In the meantime, the company is looking for more investment, including foreign investment, to cover further costs.

“A single investor can’t afford a building that costs around $340 million. We will need four or five different sources. I think they will be primarily foreign,” said Khlopyachy.

The complex will include a 27,000-square-meter shopping mall surrounding the 60-story building, in which the hotel starts on the 35th floor, and office space occupies 39,000 square meters from the ground to the 34th floor. A parking lot with 1,500 parking spaces and a 450-seat underwater restaurant are also planned.

“Location, location and location is the main thing when talking about this class of hotels and office space, said Khlopyachy, “which is why it’s still too early to decide this. Nevertheless, we are going to create the highest standards ever seen in Ukraine.”

“The Left Bank is very attractive for investments in residential real estate because the population keeps growing there,” said Ukrainian Trade Guild’s Boyko.

But the main disadvantage of the city’s Left Bank is its limited natural and infrastructural resources, as well as distance from the center, he added.

“There will never be an A-class office on Kyiv’s Left Bank, but it has very good prospects for large-format commercial real estate, especially in the areas of the Livoberezhna and Kharkivska subway stations,” said Boyko.

“It’s improbable that a 60-floor trade-office-hotel complex on the Left Bank will be profitable,” said Valentyn Sovyetov, fund director of XXI Century Investments, a Kyiv-based real estate developer and manager.

“The cost of land is lower and the total cost price may also be lower than on the Right Bank, but the demand for high-class hotels and offices is definitely there [on Right Bank],” he said.

Still, Gradostroy is convinced that they’ve got the location right.

“This complex will be a 20-minute drive from Boryspil International Airport, the only one in Kyiv, which will be very convenient for businesspeople, athletes and VIP clients, who are the target market for the future hotel,” said Khlopyachy.

“There is increasingly less space in the center of the Right Bank every year, so we are assuming that office and hotel buildings will be moved to the Left Bank within five years,” he added.

But much still remains to be done.

Gradostroy has yet to decide who will manage the hotel and has itself taken on the role of general contractor and developer.

“This is the first time that we are standing as the initial investor, developer and general contractor. Subcontracting services will be outsourced,” said Khlopyachy.

“Taking into account international practice, it is more effective to divide the process of development and the contracting processes between the different companies of the investment,” Sovyetov said.

“Very often on the Ukrainian market the investor, developer and general contractor are all the same person. The lion’s share of real estate is built on one’s own funds,” said Boyko.

Source: Kyiv Post

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Ukraine Ready To Make History

COLOGNE, Germany -- Ukraine can continue their rise from the ashes to beat Switzerland and reach the quarter-finals on Monday. Oleg Blokhin's side were routed 4-0 by Spain in their first-ever World Cup match, but have now found their feet at the highest level.


An equally thumping 4-0 destruction of Saudi Arabia and a slightly fortuitous 1-0 win over Tunisia has buoyed the Ukrainians' faith.

Blokhin insists he has already fulfilled his ambitions in progressing to the knockout rounds, but he may now be revising those aims given it is the Swiss and not the more imposing - on paper at least - French that his players face in Cologne.

Kobi Kuhn's men have been solid rather than spectacular so far in squeezing out of a group with France, South Korea and Togo.

Striker Alex Frei has two goals to his name already, but the Rennes striker - as he showed against France and the Koreans - needs too many chances to score and as the tournament progresses those are few and far between.

OVERRUN

The Ukrainians have more clinical Shevchenko - who also has two goals - the lively Andriy Voronin and a reborn Sergiy Rebrov, who will pose a significant threat to a Swiss back four lacking the calming presence of Philippe Senderos.

The unfortunate Arsenal defender's club team-mate Johann Djourou will step in alongside Patrick Muller, but Djourou's lack of experience and Muller's relative lack of pace will see the Swiss struggle.

Swiss captain Johann Vogel and the industrious Raphael Wicky will need to get on top of Anatoly Tymoschuk and Maxim Kalinichenko in midfield if the Swiss are not to be overrun.

But Blokhin does have worries of his own with Vyacheslav Svidersky and Andriy Rusol both suspended, and promising youngster Dmitro Chigrynskiy likely to miss the rest of the tournament after picking up a thigh injury.

"We don't know who we are going to play in central defence," Blokhin admitted.

PREDICTION: 1-0 - Ukraine to sneak through, Shevchenko the hero

Source: EuroSport

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Poll: Ukraine's Top Politicians Enjoying Less Trust

KIEV, Ukraine -- Ukraine’s top politicians have seen a drop in public trust, as negotiations among Rada factions to form a coalition government have dragged on into their third month since parliamentary elections were held in March.


According to the results of a survey conducted this June by Democratic Initiatives Foundation, a Kyiv-based non-governmental organization, public trust in all of Ukraine’s top political figures has steadily declined since the beginning of the year.

The least trust is enjoyed by Communist leader Petro Symonenko, with 41.1 percent of respondents saying they do not trust him at all, and another 27 percent expressing partial distrust.

The next least trusted politician in the survey is Prime Minister Yuriy Yekhanurov, with 30.5 percent total and 30.4 percent partial distrust among respondents.

Socialist leader Oleksandr Moroz, President Viktor Yushchenko and faction leader Yulia Tymoshenko (see table) scored third, fourth and fifth in the poll, which rated six politicians in all.

“The people are disappointed,” said Ilko Kucheriv, head of Democratic Initiatives Foundation. “Politicians have failed to reach agreement on the creation of a government coalition. They have proved incompetent in deciding the country’s fate,” Kucheriv said.

“These days, the electorate is demonstrating a higher level of political and civil awareness than those for whom they voted, and this dragging on of the talks has resulted in people getting deeply disappointed in a number of key political figures.”

Public expectations were too high to begin with, according to political analyst Oles Doniy, who emphasized that public distrust is nothing new even for the country’s current political elite.

“Orange” leaders began experiencing a decline in public confidence as early as last summer, amid the personal conflicts that broke out inside the Orange camp, with the situation becoming further aggravated after the gas conflict with Russia in January.

“Now this tendency is just getting deeper,” Doniy said.

“Today we have the electorate divided roughly in two equal parts. If some third political force appears on the horizon, public trust in current political leaders will fall even further,” he added.

Democratic Initiatives experts also used the poll to estimate how much people’s lack of confidence in key politicians went up within the last half year.

For instance, survey results show that distrust in Viktor Yanukovych, the leader of the Donetsk-based Regions faction, increased by 6.7 percent, doubling since the beginning of the year. Lack of confidence in Viktor Yushchenko, who beat out Yanukovych for the presidency in 2004, rose twofold, by 12.3 percent.

The results for other leading politicians were equally pessimistic.

Distrust in Yulia Tymoshenko increased by 11.6 percent, in Yekhanurov by 19.7 percent, Moroz by 8.6 percent, and Symonenko by only 4.3 percent within the last six months.

Thus, while Symonenko enjoys the highest level of distrust among his countrymen on the whole, the level of this distrust increased less since the beginning of the year in comparison to his political colleagues.

Following the March 26 parliamentary elections, the Regions party has the largest number of seats in the Verkhovna Rada (186), followed by Tymoshenko’s Bloc (129), Yushchenko’s Our Ukraine (80), the Socialists (33) and the Communists (21).

If negotiations on the formation of a coalition continue to drag on through the summer, Doniy sees further, but not drastic, public pessimism, as each parliamentary faction has a stable share of the core electorate.

On the other hand, if new strong politicians appear on the scene, especially outside the parliament, or if a parliamentary opposition is formed, public trust in the leaders of the current five Rada blocs will diminish.

Political analyst Andriy Yermolaev, who believes the coalition talks will continue until the end of the parliamentary session, said a government coalition should be put off until September.

According to Yermolaev, recent months have seen a great deal of political hysteria, which has spoiled the reputations of many politicians, compared to the kind of public support they enjoyed just after the March 26 elections.

Also, Yermolaev said, many of Ukraine’s current economic problems are going to become more obvious in the fall when, in particular, energy tariffs increase again, demanding a resumption of gas talks with Russia. This will therefore be a better time to return to the idea of a broad governmental coalition, he said.

A recent study has also indicated that consumer confidence has dropped in connection with ongoing bickering between Ukraine’s leading political camps and their failure to form a coalition.

A quarterly survey conducted by GfK Ukraine (the Ukrainian affiliate of the international market research firm GfK-Group), and Kyiv-based International Center for Policy Studies (ICPS), found that the Consumer Confidence Index, a measure of the population’s confidence in the future, dropped by 6.6 points to 97.1 between February and June.

The fact that the CCI value is below the 100 mark indicates that negative consumer confidence prevails in Ukrainian society, according to the study, which notes that “consumer confidence in Ukraine deteriorated due to the political uncertainty that has prevailed in the country for more than half a year.”

Some may ask what will happen to public trust in Yushchenko if the Our Ukraine party forms a coalition with the Party of Regions.

Analysts agree that in this case, Yushchenko is likely to suffer a further loss in his popularity. However, popularity figures never change too rapidly.

According to Andrey Yermolayev, significant changes in public opinion are more likely to be observed within several months after a coalition is formed.

Doniy believes an “Orange” coalition, including Yushchenko, Tymoshenko and Moroz, is more probable than one between Yushchenko and Yanukovych.

In the latter case, Our Ukraine will lose part of its electorate, with the most politically aware members deserting to Yulia Timoshenko. He said that Tymoshenko’s flamboyant personality has long since started to overshadow Yushchenko’s.

“This is natural. Her position is much more consistent and still much more aggressive,” Doniy said.

But Democratic Initiatives Foundation’s Kucheriv is not so sure about Yushchenko’s popularity dropping.

“Our Ukraine swore more than once that it would never be with the Party of Regions. Of course, if they now break their promise, they will lose some electoral support,” Kucheriv said.

“But as to Yushchenko himself, his popularity rate is difficult to predict, because he is not positioning himself as an active participant in the coalition talks. So, even if Our Ukraine goes with the Regions, trust in Yushchenko is more likely to remain generally the same.”

Source: Kyiv Post

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Ukraine's Orange Coalition Faces Hurdles

KIEV, Ukraine -- They traded insults and accusations of corruption for nine months. Now with the team that led Ukraine's 2004 Orange Revolution reunited and aiming to govern together again, maintaining the peace may turn out to be the easiest task on their agenda.

Bloc leader Yulia Tymoshenko is seen in the parliament, a yellow rose in her hand, in Kiev, Ukraine, on Friday, June 23, 2006.

The pro-Western reformers have little time for a honeymoon, as their list of promises includes ending Ukraine's energy dependence on Moscow and earning Kiev an invitation to join the European Union.

Good will has largely been depleted, and problems have been piling up over the 87 days it took them to set aside their mutual distrust and pool the 239 lawmakers needed for a majority in the 450-member parliament.

"Very little government work was done," said Tammy Lynch, a Ukrainian expert at Boston University's Study of Conflict, Ideology and Policy. "Reforms stalled. The economy has slowed even further. Gas debt has risen, and now Russia is saying it wants to raise the price of gas again," she said.

"In addition to working on any personality issues that they all have, they will face some serious problems in just carrying out the work of the country."

But it is the personality conflicts that have captured the interest of this nation of 47 million. Yulia Tymoshenko, whose feisty manner and striking appearance made her one of the most high-profile figures of the Orange Revolution, is slated to return as prime minister next week.

President Viktor Yushchenko will forward her name to parliament on Monday, as part of the coalition deal. But in a bid to counterbalance the ambitious Tymoshenko, her archrival, former Security Council chief Petro Poroshenko, is also expected to make a comeback as parliamentary speaker.

It was their behind-the-scene battles that erupted into open conflict last September, leading to Poroshenko's resignation and Tymoshenko's dismissal. Tymoshenko famously went on live television to describe that afternoon, recalling "the crying, sniffling" Poroshenko. He fired back that she had a vivid imagination.

"This coalition is very good for Yushchenko," said Kiev-based political analyst Serhiy Taran. "What you'll have is a low-level, constant conflict between parliament and the prime minister. Tymoshenko and Poroshenko will be arguing all the time. Yushchenko will get to step in, giving him considerable influence."

But Tymoshenko will have a much stronger hand than she did when Yushchenko first tapped her to be prime minister. He reportedly gave her that job over strong misgivings, and then peopled the Cabinet with his appointees, leaving her largely isolated. Yushchenko also created a virtual shadow government under Poroshenko that worked to keep Tymoshenko in check.

This time, she names nine out of the 17 ministerial posts, including such heavyweights as the finance minister, economy minister and fuel and energy minister. She also gets to choose the head of the state property committee, responsible for privatizing state property, and reportedly also the next head of Naftogaz, the state gas company.

In essence, Yushchenko has handed her control over the economy.

Tymoshenko said her first priority would be to bring order to Ukraine's energy sector, paving the way for what could become another brutal tussle with Moscow over energy prices. During last winter's dispute, the Russian gas monopoly temporarily turned off the taps to Ukraine, also triggering disruptions to supplies to Western Europe.

Tymoshenko, who was not involved in the negotiations that ended that crisis, has called the deal a betrayal of national interests. It led to a nearly twofold price increase for Ukraine, and carved out a powerful role for a little-known middleman company.

This week, Tymoshenko repeated her criticism, saying the deal needed deep revision. Russia's gas monopoly, Gazprom, called her statement "alarming."

Moscow will be watching closely to see how much power _ and longevity _ this new coalition will have, analysts said.

There is not much room for failure. The opposition Party of Regions, which holds a massive 186 seats in parliament, is waiting in the wings.

Source: AP

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Ukraine Hopes Shevchenko Can Penetrate Solid Swiss Defense

BERLIN, Germany -- An out of form Ukraine will have its hands full against Switzerland on Monday, as both teams attempt to move forward to the World Cup quarter-finals.

Ukraine's Andriy Shevchenko celebrates after scoring a penalty against Tunisia.

Ukraine superstar striker Andriy Shevchenko break new ground when they face a young and hungry Switzerland in the knock-out stage of the World Cup here on Monday. The Ukrainians reached the second phase in their first appearance at the World Cup after salvaging their chances in the first round.

Outclassed 4-0 by Spain in their first group match, they looked to be heading for an early exit before Shevchenko, the team's undoubted leader, recovered from a knee injury and drove his team to a 4-0 win over Saudi Arabia.

The 29-year-old who has just joined Chelsea's star-studded squad in a deal worth 30 million pounds (€43.5 million), however, just barely led his side to a 1-0 win over Tunisia, which clinched the runner's-up spot in Group H. He won a questionable penalty even though there seemed to have been no contact with the defender.

Shevchenko played down his contribution, saying the team unit would be the key to Ukraine reaching the quarter-finals where they would face either Italy or Australia, who also meet on Monday. "All the teams are strong at this stage. If the team shows heart then with our fans behind us we can hopefully go further," Shevchenko said.

Ukraine coach Oleg Blokhin knows the worth of great strikers having been one himself for Dynamo Kiev and the Soviet Union, scoring 42 times in 112 international games. But while all eyes will be on Shevchenko, Swiss coach Kobi Kuhn has tipped the in-form Alexander Frei to be the goal-scoring surprise of the final stages.

Frei, the former bad boy of Swiss football who was sent home in disgrace after spitting at England's Steven Gerrard at Euro 2004, netted twice in Switzerland's march into the last 16. The 26-year-old, who is hoping to wrap up a move from French club Rennes to Germany's Borussia Dortmund, notched the first goal in the 2-0 victory over Togo and caused an uproar among the South Korean players when he slid the ball home from what appeared to be an offside position in the 2-0 victory as the Swiss won Group G on Friday.

"He has come back from a long injury," Kuhn said. "He had two games with Rennes and then joined the national squad which gave him the opportunity to come back into form. I think he can score more goals in the competition. Whether or not he will be the best of the strikers, I don't know, but there is a chance."

Kuhn also singled out Pascal Zuberbuhler, the only goalkeeper of the first stage to keep three clean sheets. "No goals against us in three matches - I am grateful to the defense and the goalie," said the silver-haired Kuhn.

One setback for the Swiss is the absence of Arsenal center-back Philippe Senderos who scored the opening goal against South Korea but later fell and dislocated his shoulder.

If they reach the last eight, Switzerland would equal their best ever performance at a World Cup and Kuhn said a country not known for football fever was getting behind its best team for decades. "Switzerland now has a way to express its national pride," he said. "We are growing in confidence and now anything is possible. We can beat Ukraine and advance further - why not?"

Source: AFP

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Sunday, June 25, 2006

Turkmen Gas Price Hike: Implications For Ukraine

KIEV, Ukraine -- Turkmenistan's proposal to raise the price of gas it sells to Gazprom, from $65 per 1,000 cubic meters at present to $100 in the second half of 2006, holds potentially momentous implications for Ukraine.


It can help emancipate Ukraine from the RosUkrEnergo gas deal that poses serious risks to Ukraine's sovereignty, future prosperity, and political system.

At present, Russia uses most of its intake of Turkmen gas to supply Ukraine through the Kremlin-brokered RosUkrEnergo scheme. This took effect in January-February 2006 and is supposed to last for five years.

Mixing large volumes of Turkmen gas priced at $65 with smaller volumes of Russian gas priced at $230, RosUkrEnergo sells the mix to Ukraine at $95 per 1,000 cubic meters. This is a deeply discounted price by any European standard, a heavy subsidy designed -- along with distribution arrangements in Ukraine -- to facilitate deep Russian inroads into Ukraine's industry and political system.

In effect, Moscow maneuvered Turkmenistan into subsidizing Ukraine's economy, albeit in ways that advance Russia's own interest to pull Ukraine into a relationship of dependence.

The RosUkrEnergo scheme is only made possible by exploiting Turkmenistan. The deal buys economic and political leverage for Russia in Ukraine and enriches an obscure Gazprom-connected group in the process, all at Turkmenistan's expense.

When Moscow got Kyiv to sign onto that scheme in January and February 2006, it brought at least 20 billion cubic meters of Turkmen gas to the negotiating table just for the first half of this year, at the rock-bottom price of $65, as a decisive Russian "near abroad" asset, even as Russia sells its own gas in the "far abroad" at $230. Again, Russia's near-monopoly on the export of Turkmen gas made this possible.

From January through April 2006 (data for May are not available), RosUkrEnergo sold to Ukraine 15.6 billion cubic meters of "Central Asian" gas (presumably all of it Turkmen), mixed with 4.7 billion cubic meters of Russian gas (Concorde Capital [Kyiv], June 6).

Few governments or analysts asked in January-February whether Turkmenistan had freely consented to the RosUkrEnergo deal, let alone to colonial exploitation of its resources by Gazprom in perpetuity. Ashgabat's June 19-21 move suggests that it would not freely consent.

The Turkmen price hike could scuttle the Ukraine-RosUkrEnergo deal and, with it, a key instrument of Russia's policy in Ukraine. To be sure, Moscow has all along cautioned that it might raise the price of the gas mix it sells to Ukraine.

It could either hike the price of Russian gas in that mix "in accordance with market conditions," or raise the price of the whole mix in the event that Turkmenistan hiked the price of its gas. But these cautionary notes are calculated to keep Ukraine's government and key economic interest groups uneasy.

Moscow wants to reserve for itself the decisions on prices, volumes, and schedules of delivery, in line with its economic and political strategy in Ukraine. Instead of this, Turkmenistan's price hike would force Moscow to raise substantially the price on RosUkrEnergo's gas sold to Ukraine. Meanwhile, in Kyiv's view, Moscow has no right to do so as the January 2006 agreements with Gazprom and RosUkrEnergo set the $95 price for five years.

Kyiv officials insist that any early increase above that level could mean collapse of the national economy.

Thus, Ashgabat's decision could nullify the value of a painstakingly assembled Russian mechanism of influence over Ukraine. Meanwhile, Ukraine faces a quantitative deficit of 10 to 12 billion cubic meters in its gas balance for the second half of 2006.

Kyiv seeks to activate the December 22, 2005, agreement of intent whereby Turkmengaz was to sell 40 billion cubic meters of gas to Naftohaz Ukrainy in 2006, at prices of $50 per 1,000 cubic meters in the first half of the year and $60 in the year's second half.

Turkmenistan never implemented that agreement for a number of reasons, including: Moscow's slightly better price offer at $65 from January 1, 2006; Gazprom's unwillingness to provide transit for Turkmen gas to Ukraine (a service that Gazprom had provided until December 2005); Ukraine's persistent inability to settle arrears for past deliveries of Turkmen gas, raising questions about solvency; and general mishandling of the negotiations with Ashgabat by Fuel and Energy Minister Ivan Plachkov and Naftohaz chairman Oleksiy Ivchenko, who also negotiated the RosUkrEnergo deal.

On June 20 (the day after Gazprom chairman Alexei Miller's failed talks with Turkmen President Saparmurat Niyazov), Ukrainian President Viktor Yushchenko telephoned Niyazov requesting that he receive Plachkov urgently for discussions on gas purchases and settling the arrears.

However, Plachkov's concept would appoint the same RosUkrEnergo to act as transport operator of the new Turkmen gas supplies to Ukraine; and would only pay $60 for Turkmen gas (that is, less than Russia's offer already deemed unacceptable by Turkmenistan), on the pretense that the December 22 agreement was a "contract."

Regarding the arrears, Plachkov indicated while still in Kyiv that settlement of the remaining $64 million is being postponed from June to October.

The June 22 nomination of Yulia Tymoshenko as prime minister, awaiting a new Orange coalition government, holds the promise of canceling the RosUkrEnergo agreements. Tymoshenko's first statement in her new capacity reaffirms that commitment, in line with her electoral campaign message.

Turkmenistan's gas price hike to Gazprom should help dismantle the RosUkrEnergo deal.

Source: Eurasia Daily Monitor

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Ukraine And Swiss Clash In Battle Of Strikers

COLOGNE, Germany -- Ukraine and superstar striker Andriy Shevchenko break new ground when they face a young and hungry Switzerland in the last 16 of the World Cup here on Monday.

Ukraine's superstar Andriy Shevchenko

The Ukrainians reached the second phase in their first appearance at the World Cup after staging a remarkable turnaround in fortunes.

Outclassed 4-0 by Spain in their first group match, they looked to be heading for an early exit before Shevchenko, the team's undoubted leader, recovered from a knee injury and drove his team to a 4-0 win over Saudi Arabia.

The 29-year-old who has just joined Chelsea's star-studded squad in a deal worth 30 million pounds (43.5 million euros) showed all his experience in the 1-0 win over Tunisia which clinched the runner's-up spot in Group H, winning a penalty even though there seemed to have been no contact with the defender.

Shevchenko played down his contribution, saying the team unit would be the key to Ukraine reaching the quarter-finals where they would face either Italy or Australia, who also meet on Monday.

"All the teams are strong at this stage. If the team shows heart then with our fans behind us we can hopefully go further," Shevchenko said.

Ukraine coach Oleg Blokhin knows the worth of great strikers having been one himself for Dynamo Kiev and the Soviet Union, scoring 42 times in 112 international games.

But while all eyes will be on Shevchenko, Swiss coach Kobi Kuhn has tipped the in-form Alexander Frei to be the goal-scoring surprise of the final stages.

Frei, the former bad boy of Swiss football who was sent home in disgrace after spitting at England's Steven Gerrard at Euro 2004, netted twice in Switzerland's march into the last 16.

The 26-year-old, who is hoping to wrap up a move from French club Rennes to Germany's Borussia Dortmund, notched the first goal in the 2-0 victory over Togo and caused an uproar among the South Korean players when he slid the ball home from what appeared to be an offside position in the 2-0 victory as the Swiss won Group G on Friday.

"He has come back from a long injury," Kuhn said. "He had two games with Rennes and then joined the national squad which gave him the opportunity to come back into form.

"I think he can score more goals in the competition. Whether or not he will be the best of the strikers, I don't know, but there is a chance."

Kuhn also singled out Pascal Zuberbuhler, the only goalkeeper of the first stage to keep three clean sheets.

"No goals against us in three matches - I am grateful to the defence and the goalie," said the silver-haired Kuhn.

One setback for the Swiss is the absence of Arsenal centre-back Philippe Senderos who scored the opening goal against
South Korea but later fell and dislocated his shoulder.

If they reach the last eight, Switzerland would equal their best ever performance at a World Cup and Kuhn said a country not known for football fever was getting behind its best team for decades.

"Switzerland now has a way to express its national pride," he said.

"We are growing in confidence and now anything is possible. We can beat Ukraine and advance further - why not?"

Source: AFP

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What About The Bandits?

KIEV, Ukraine -- One of the rallying calls of the Orange Revolution was “Put the bandits in jail!”

Yushchenko during 'Orange Revolution'

Most Ukrainians may not have understood the finer points of what they’d been called on to defend on the freezing streets of their capital in late 2004, but they had an intuitive understanding that ever since their country gained independence, a small group of well-connected people – call them oligarchs or mafia – had bled the state dry at the expense of everyone else.

Now, as this week’s front-page article in the Post points out, Ukrainians’ trust in those who promised them a just society a year-and-a-half ago is not much higher than it was in the former regime of President Leonid Kuchma, which seemed to represent everything that was wrong with the authorities.

Does anyone remember Serhiy Kivalov, who headed the country’s Central Electoral Commission during the 2004 presidential elections, widely condemned as fraudulent by everyone but the Russians?

Kivalov was never charged for the mass vote rigging that took place under his nose, but Yushchenko’s new interior minister, Yury Lutsenko, publicly called on Kivalov to show up for questioning about another criminal case. Kivalov eventually returned from Moscow and was promptly instated as the rector of a legal academy in Odessa.

How about former governor of Sumy Region Volodymyr Shcherban? After the Orange Revolution, Lutsenko and Prosecutor-General Sviatoslav Piskun, who Yushchenko had left in place since the Kuchma days, accused Shcherban of abuse of office and extortion, prompting him to flee to the U.S., where he was soon detained for visa violations.

Kyiv threatened to extradite the former governor, but it turns out that Shcherban still enjoyed local deputy immunity from prosecution under a law that has since been annulled.

Shcherban had been a member of Yushchenko’s Our Ukraine faction, with which he was elected to parliament in 2002, before joining a pro-Kuchma faction and being appointed governor.

Is Shcherban one of the bandits Yushchenko and Co. had referred to?

Then there was the governor of Kyiv Region – Anatoliy Zasukha. Like Shcherban, he also disappeared when the people from Maidan came to power.

Shcherban is still in the U.S., but recent rumors have it that Zasukha has already come home, as the PGO dropped its case against him in May, citing the same deputy immunity law: Zasukha served as governor and head of the Kyiv Regional Council concurrently, which is illegal.

Top cop Lutsenko has threatened to open another criminal case, which unfortunately will have to be prosecuted by the same prosecutor that cancelled the first one, Oleksandr Medvedko.

Like his predecessor Piskun, Medvedko is more closely associated with the political parties that supported Kuchma and Party of Regions head Viktor Yanukovych, who opposed Yushchenko in the 2004 presidential elections.

Zasukha’s wife Tatiana is also a Regions lawmaker, which means she also can’t be prosecuted, although Interior Ministry reports from last year suggest that she helped her husband flee the country.

The governor of Donetsk, Borys Kolesnikov, was one of the few officials under the Kuchma regime who actually ended up spending time behind bars, but he has been released and now also a has seat in the new parliament, also with the Regions party.

Kolesnikov was released by freshly elected Regions lawmaker Piskun. As Yushchenko continues his public duel with former Orange ally Yulia Tymoshenko, the Regions party is increasingly mentioned by Our Ukraine faction members as a possible coalition partner.

And how about Ihor Bakai, former head of Ukraine’s state oil and gas company Naftohaz Ukrayiny and more recently in charge of managing lucrative state property under Kuchma?

It was in this last position that Bakai allegedly bilked the state out of almost a billion hryvnias before fleeing to Russia, where he supposedly now has citizenship.

Russian Ambassador to Ukraine Viktor Chernomyrdin has pledged to defend Bakai against extradition. But this isn’t the only friend Bakai has: During a recent media interview, Bakai counted close Yushchenko ally Petro Poroshenko among people with whom he has good relations.

All these ‘cases’ raise an important question. If none of these people hounded and jailed by the government and put or kept in place by the president are bandits, then just who did Yushchenko mean when he promised to jail the people’s persecutors a year-and-a-half ago?

What about those bandits?

Source: Kyiv Post

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Saturday, June 24, 2006

Ukraine Nominates Tymoshenko For PM

KIEV, Ukraine -- Ukraine's new governing coalition nominated Yulia Tymoshenko to become prime minister, recommending the politician return to the job that President Viktor Yushchenko sacked her from last year, the parties said on Friday.

Yulia Tymoshenko (C) with Socialist party leader Oleksander Moroz (L) and Roman Bezsmertny (R) from the pro-presidential 'Our Ukraine' party.

"Yesterday, the three of us signed a proposal for the president regarding Tymoshenko for the prime minister's post," said Socialist Party leader Oleksandr Moroz as he stood alongside Tymoshenko and Roman Bezsmertny, the top negotiator from Yushchenko's bloc.

The three parties that led the 2004 mass protests united into a 239-seat majority coalition on Thursday and said they would form a cabinet. Under their agreement, Tymoshenko's bloc gets to fill the premier's post since it won more votes than the other two coalition members in the March parliamentary election.

Tymoshenko's nomination goes to the president for consideration, but that is believed to be a formality. Yushchenko's chief-of-staff Oleh Rybachuk said Yushchenko would forward Tymoshenko's name to parliament on Monday. A vote is expected next week.

"Today the responsibility that we bear definitely requires unity, mutual understanding and absolutely co-ordinated work," Tymoshenko said on Friday during a meeting of lawmakers from the coalition parties.

Tymoshenko was one of the highest-profile figures in the 2004 political change that helped sweep Yushchenko to the presidency of Ukraine. She became prime minister but fell out with Yushchenko and was fired last September, only to bounce back in the March parliamentary elections.

Tymoshenko's demand that she be returned to the premier's job and Yushchenko's reluctance to see her back became one of the biggest stumbling blocks during the coalition talks.

Yushchenko met with Tymoshenko, Moroz and Bezsmertny on Friday and congratulated them on forming the coalition.

"Today as never before, Ukraine needs ... patriotic power," Yushchenko told reporters after the meeting.

He told the three parties' leaders that they should have learned a lesson from their previous work together, which ended in mutual allegations of corruption and incompetence. This time, Yushchenko said they must ensure co-operation among the different branches of power.

"Understanding between the three political forces can become the base for a responsible Ukrainian Government," he said.

Yushchenko's party gets to fill the parliamentary speaker's job. The leading candidate is believed to be Petro Poroshenko, who's had stormy relations with Tymoshenko.

Bezsmertny, however, said on Friday that "we have several propositions," adding that the bloc would make its choice on Monday.

The comeback marks another chapter in the remarkable biography of Ukraine's most colorful public personality that she herself describes as a soap opera.

Source: China Daily

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Ukraine Emerges From Soviet Shadow

BERLIN, Germany -- If you look at it philosophically, the ball represents the world.

Ukraine players (L) celebrate as Tunisia players walk off the pitch after their Group H World Cup 2006 soccer match in Berlin June 23, 2006.

The world keeps turning just as the ball keeps rolling. We have to follow along with the changing, ever-turning world just as the players have to follow the ball and keep it moving.That's the point of the game, of life. That's why soccer is the world's game.

And you can track how the world changes by watching how the World Cup evolves.

Yesterday morning, I crossed Berlin and went to Checkpoint Charlie, the legendary Cold War crossing point from the western sector of Berlin to the old East Germany part of Berlin.

A replica of the hut -- the place used so often in John le Carré novels and in movies about the Cold War -- stands there, and around the corner there's a long stretch of the old Berlin Wall. All of it encapsulates what was once the great division in Europe and the world between the West and the Soviet Union.

The stretch of the wall is a bizarre, puzzling sight -- this mundane, inanimate thing, now being allowed to wither away without repair, represented the divisive situation in the world for so long.

Near Checkpoint Charlie, a group of Ukraine supporters were doing their sightseeing, distinctive in their yellow and blue shirts.

For them, citizens of a new country that could only attain independence once the wall fell, this was a day to see iconic elements of the past and consider Ukraine today, and its possible future.

They are here in Berlin because Ukraine has been an independent country now for 15 years and entitled to play on the greatest stage in the world, the World Cup -- to win or lose on the strength of its team.

Gone are the Cold War days when Ukrainians played for the Soviet Union. Russia didn't qualify this time, but Ukraine did.

There must have been exquisite satisfaction in knowing that, as the fans gazed on Checkpoint Charlie and the old wall.

Ukraine needed just a draw against Tunisia yesterday to qualify for the round of 16.

In a disastrous start to the tournament, a 4-0 loss to Spain, Ukraine did not look like it belonged here.

Timid and unsure, the team played well below the level expected. There was a comeback in a win over Saudi Arabia, but yesterday's game, against a tough Tunisia, was the key test.

Tunisia needed a win and tried every trick and tactic. The defenders harried the attacking Ukraine forwards and tackled hard.

The bustling forward Ziad Jaziri hustled for the ball in the Ukraine area and fell dramatically when a defender came near, hoping for a penalty. He soon got a yellow card for his efforts.

Ukraine moved forward in speedy, stunning waves, the ball flying in from the flanks to the slight but charismatic figure of Andriy Shevchenko. At times the Ukraine attacks were so speedy and hell for leather, they were unco-ordinated and unworkable. Ukraine was making very hard work of it.

At the end of the first half, when the 0-0 score was a fair reflection for both sides, disaster struck for Tunisia. It was Jaziri again.

A thespian before, he was then a thug, swinging a hand at the face of Anatoliy Tymoschuk, and then lunging a feet-first tackle. The referee produced a yellow card. Two yellows means a red and Jaziri was gone.

Down to 10 men, Tunisia had its back to the wall. Eight men were lined like statues in front of the Tunisia goal to protect it. All pride and pugnacity, Tunisia regained composure and surged forward again and again. This was about stubborn resistance and guts.

Ukraine was endlessly wasteful. Some players were showboating, all dribbling skills and sprints, but no constructive work toward a clear goal-scoring chance.

It took a penalty -- and a dubious one at that -- to break down Tunisia. Shevchenko fell in front of the goal after a slight push and then scored the resulting penalty himself. Tunisia wasn't crushed. It still tried, and a neutral viewer had to admire the team for its efforts in what was, in truth, a game lacking entertainment.

And then there's Tunisia in a changing world. I'd been alerted to Tunisia's team and its merits ages ago, by my father, who lives in Dublin. He knows his stuff, but he's not usually so knowledgeable about international soccer.

He gained his Tunisia knowledge through his friendship with a chap named Safieddine, who works in my father's local bar. Safieddine had been educating him about the tough Tunisia team. My dad was intrigued.

Time was, back around the time of the Cold War, the contact between an Irish person and a Tunisian could only occur if the Irish person took an expensive and exotic holiday in Tunisia. Now, as Ireland, Europe and the world changes, a Tunisian is part and parcel of an Irish bar.

Both Tunisia and Ukraine deserved to be at this World Cup, but based on yesterday's game, both would be deserving of a place in the next round. For Ukraine, a new country, it means so very much to transcend the Soviet past. For Tunisia, it's about pride, too.

The reality is that Ukraine won't go much farther here. Maybe next time both countries will progress far and do well. The world keeps changing, as the ball keeps rolling.

Source: Globe and Mail

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Russia Warns Ukraine Of The Danger Of Disintegration

MOSCOW, Russia -- Political battles being waged in Ukraine for the creation of a coalition government are nearly over. Russia has said that it is not the makeup of the coalition that matters to it but the strength of Ukraine's territorial integrity.

Coalition members Roman Bezsmertny (L), top negotiator for the Our Ukraine political bloc, bloc leader Yulia Tymoshenko (C), and Socialist leader Oleksandr Moroz (R)

Strategically, the issue is not who forms the government, but the policy such a government would pursue. Ukraine has been split ideologically, and excessive pro-Western sentiments may have very serious consequences.

Russian President Vladimir Putin said recently at the summit of the Shanghai Cooperation Organization that the Ukrainian authorities should forget about their personal ambitions and act in the interests of the common people.

He said that Ukrainian President Viktor Yushchenko would most probably succeed in creating a coalition. It may be "orange or yellow, or any other" he said, "provided it is viable. The main objective is to do everything to strengthen the country's territorial integrity." Putin added that Russia "is in no way trying to interfere in Ukraine's internal affairs."

For some reason, it is believed that what Russia wants in Ukraine is not an "orange" coalition, but a union of the pro-presidential block Our Ukraine and the Party of Regions led by 2004 presidential candidate Viktor Yanukovich. During the latest presidential elections Russia placed its stake on Yanukovich.

But how pro-Russian is Yanukovich? This question will become even more difficult to answer if his party joins the ruling coalition, which is a possibility even if the latter is predominantly "orange".

On the one hand, Viktor Yanukovich may respect Russia's interests more than anyone else; he has to because he relies on the southeastern electorate, which has a closer affinity to Russia.

About one-third of Ukraine's population considers Russian its native tongue, but the figure is about 85% in the Crimea, more than 60% in the Lugansk and Donetsk regions, and about 50% in the Kharkov, Zaporozhye, and Odessa regions. The southeastern regions are strongly critical of the Euro-Atlantic bent in Ukraine's policy, and are keen on promoting close, friendly relations with Russia.

Yanukovich as a politician has to take these sentiments into account.

On the other hand, he is a pragmatic and much more realistic man than the ideology-dependent politicians from the western parts of Ukraine. He has agreed without any hesitations to join a coalition with his former rivals, who advocate accession to NATO and oppose the idea of granting Russian the status of a second official language even at the regional level.

Yanukovich also sharply criticized the January 4, 2006 gas agreements with Russia, though they were clearly in the latter's interests. And lastly, Yanukovich was the heir apparent of Leonid Kuchma, the previous "pro-Russian" president, who had also called for joining NATO, despite Russia's opposition, and abandoned the idea only to win Kremlin support for Yanukovich's presidential campaign.

Would Russia benefit from Yanukovich as a member of the ruling coalition? Or does it want him to remain the opposition leader? And the crucial question: Will the coalition's policy depend on its makeup?

If Yanukovich's Party of Regions joins the "orange" coalition, he would have to make fundamental ideological concessions, sacrificing the interests of his electorate for political advantages. This would distort his representation of the interests of Ukraine's eastern regions.

If the Party of Regions remains in opposition, Yanukovich would keep intact a substantial part of his political identity. His party would have little access to administrative resources, which would encourage it to energetically build up its political strength.

In short, if the Party of Regions stood in opposition to the government, it would potentially be a much more pro-Russian force than if it joined the coalition.

Geopolitically, Russia should create a situation where the pro-Western Ukrainian government would have to take into account the interests of the eastern parts of the country. As of now, the "orange" authorities only represent the views of the western Lvov, Ternopol and Ivano-Frankovsk regions and are completely out of touch with the eastern regions.

But this situation would not benefit Moscow. When Putin spoke about the strengthening of Ukraine's territorial integrity, he referred to the risks of a growing ideological divide, which would have unpredictable consequences for Ukrainian unity.

An "orange" government balanced by a strong opposition relying on the pro-Russian electorate would be much better for the country's territorial integrity than an "orange" government including an "orange-tinged" Yanukovich, with Yulia Tymoshenko's much more pro-Western bloc as the opposition force.

In any case, the only way to narrow the divide is to stop forcing pro-Western views on the eastern regions. This would suit the interests of Ukraine more than the interests of Russia.

Source: RIA Novosti

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Blokhin Far From Satisfied With Ukraine Display

BERLIN, Germany -- Ukraine coach Oleg Blokhin was less than satisfied with the 1-0 win over Tunisia on Friday, even though it earned his World Cup debutants a place in the last 16.

Ukraine's Andriy Voronin (R) reaches for the ball as Tunisia's Radhi Jaidi (L) challenges during their Group H World Cup 2006 soccer match in Berlin June 23, 2006.

He said the dismissal of Tunisia forward Ziad Jaziri on the stroke of halftime seemed to work against his side, rather than for them.

"After the sending-off it was like a bad joke for the Ukrainians," Blokhin told reporters.

"Ukraine suddenly stopped playing football...there were disciplinary issues on the field which is inexcusable for a great team."

Striker Andriy Shevchenko, who scored the penalty that won the game, agreed.

"There was a lot of pressure and that is why the team was unable to play more varied football," he said.

In Kiev, about 20,000 fans in Independence Square cheered wildly and sprayed each other with champagne after Shevchenko scored the goal which earned a second-round meeting with France, Switzerland or South Korea.

Many young men stripped to the waist to beat the searing heat in the capital.

Cars raced through the city centre tooting horns to celebrate Ukraine's achievement.

"I'm not so sure that penalty was entirely justified," said Pavlo, a fan in his early 20s with a blue and yellow national flag painted on his cheek.

"But the main thing is we got through."

"We waited so long to see something like this," said Olexiy, who was also draped in a national flag.

"We're in the next round. I'm delighted."

A smaller crowd watched the match in a downpour in the western city of Lviv and fans also watched on a big screen in Donetsk, Ukraine's second big soccer town in the industrial east.

Source: Reuters

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Friday, June 23, 2006

President In U-Turn On Tymoshenko

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko will propose Yulia Tymoshenko as new prime minister, his chief of staff said on Friday, the same job from which he fired her eight months ago.

Bloc leader Yulia Tymoshenko is seen in the parliament, a yellow rose in her hand, in Kiev, Ukraine, on Friday, June 23, 2006. Ukraine's new governing coalition nominated Tymoshenko to become prime minister, recommending that the heroine of the Orange Revolution be returned to the job that President Viktor Yushchenko sacked her from last year.

"The president is to put forward the candidature of Yulia Tymoshenko as prime minister," Oleh Rybachuk told a news conference a day after three parties backing the 2004 "Orange Revolution" agreed to form a coalition.

Rybachuk said the president would present his proposal to parliament on Monday. He hoped a coalition government would take shape within 10 days.

Tymoshenko's nomination had never been in doubt once the three parties -- Yushchenko's Our Ukraine party, Tymoshenko's bloc and the smaller Socialists -- had agreed this week to form a coalition after three months of divisive negotiations.

Tymoshenko and leaders of the other two parties had earlier met the president in his office.

She had long insisted on being reinstated in the job on grounds that her bloc had won the most seats among liberals in a March parliamentary election. But Yushchenko resisted her comeback for weeks, accusing her of pursuing personal ambitions.

Under new constitutional rules, the president has ceded many of his powers to parliament, now responsible for choosing the prime minister and approving a cabinet line-up.

But Yushchenko, brought to power in the aftermath of the mass 2004 protests against election fraud, remains a key figure in policy and appointments.

Source: Reuters

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Russian Organizations Stirring Dissent In Ukraine - Security Chief

KIEV, Ukraine -- Russian public organizations have provoked anti-government activities in the Black Sea province of Crimea and other regions of Ukraine, a national newspaper quoted the head of the Ukrainian Security Service as saying Friday.

Eurasia Youth Union

Ihor Drizhchany's comments follow recent demonstrations in the Crimea against Ukraine's bid to join NATO, the blockading of a U.S. vessel docked off the peninsular, the banning of two senior Russian parliamentarians from entering the country in early June and the deportation of a Russian public organization leader.

In an interview with Facts and Commentaries, Drizhchany said Russian organizations "are active in the Crimea, in the south and east of Ukraine, and on the border with Transdnestr [a self-proclaimed republic in Moldova], provoking their members and the Ukrainian population to carry out anti-government activities."

In particular, the security chief named the Russian organizations Proryv ("breakthrough"), the Eurasian Youth Union and the Russian Bloc. Alexei Dobychin, Proryv leader, was deported from Ukraine June 21.

"We can trace their links to Russian politicians, and also to representatives of the executive," Drizhchany said. "And, naturally, we do not approve of such activities and will step up measures to counter them."

He added that the security service would act "exclusively in line with Ukrainian law."

Drizhchany said he was concerned over the situation in Crimea, which is an autonomous republic on the Black Sea with a large proportion of ethnic Russians. "We believe that a certain model for destabilizing the situation on a national level is being developed there," he said.

Source: RIA Novosti

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Ukraine Wary Of Tunisia

BERLIN, Germany -- Ukraine, needs to defeat Tunisia in Berlin today to be certain of reaching the last 16 of the World Cup, cannot afford any complacency against their Group H opponents.

Tunisia's leading scorer Santos, seen here at team practice in Berlin, could be a surprise starter for the 2004 African Nations Cup champions in their do-or-die clash with Group H rivals Ukraine here on Friday said coach Roger Lemerre on the eve of the match.

Tunisia gave group leaders Spain a fright in Stuttgart on Monday, taking an early lead before Luis Aragones' side fought back to win 3-1.

A draw is likely to be enough for Ukraine, barring a freak result between Spain and Saudi Arabia, but captain Andrei Shevchenko said his team would be going for victory.

"I don't think any player who goes on the pitch ever plays for a draw because he knows how that can end up," the 2004 European Footballer of the Year told reporters. "We've got a very tough game ahead."

A win for Ukraine would set up a second-round clash against France, South Korea or Switzerland. Tunisia, however, could also qualify for the last 16 with a victory.

After an embarrassing 4-0 drubbing at the hands of Spain in the opening match, Ukraine bounced back with an identical scoreline against Saudi Arabia.

Shevchenko, who has recently returned after a month out with a knee injury, scored Ukraine's third goaland set up the fourth for man of the match Maxim Kalinichenko.

Chelsea's new striker said that Kalinichenko was an important player for his country. "My game depends very much on him," Shevchenko said. "He provided a superb pass for my goal and then I thanked him by setting one up for him."

Tunisia coach Roger Lemerre was disappointed that his players faded at the end of their game against Spain and in the 2-2 draw with Saudi Arabia. But he suggested he that would not be making many changes to his line-up. "There's hope and that's important," Lemerre said. "There's cause to be optimistic."

Team details

Ukraine (probable): Shovkovsky (Dynamo Kiev); Rusol (Dnipro), Vashchyuk (Dynamo Kiev), Nesmachny (Dynamo Kiev); Husev (Dynamo Kiev), Tymoshchyuk (Shakhtar Donetsk), Shelayev (Dnipro), Kalinichenko (Spartak Moscow), Rebrov (Dynamo Kiev); Shevchenko (Chelsea), Voronin (Bayer Leverkusen).

Tunisia (probable): Boumnijel (Club Africain); Trabelsi (Ajax), Jaidi (Bolton), Hagui (RC Strasbourg), Ayari (Samsunspor); Namouchi (Rangers), Mnari (Nurnberg), Chedli (Nurnberg), Nafti (Birmingham), Bouazizi (Ereciyespor); Jaziri (Troyes).

Referee: C Amarilla (Paraguay).

[The game can be seen in Ukraine on INTER channel at 17:00 EEST]

Source: UK Telegraph

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"Orange Revolution" Allies Form Ukraine Coalition

KIEV, Ukraine -- After months of bitter haggling over government posts, Ukraine's pro-Western parties have formed a ruling coalition sidelining the main pro-Russian party, which came in first in the March parliamentary election.

Former Ukrainian Prime Minister Yulia Tymoshenko waves as she announces before the parliament in Kiev that Ukraine's "orange revolution" parties have reached final agreement on forming a governing coalition

The coalition includes three parties, which jointly staged the "Orange Revolution" against the allegedly falsified victory of the Moscow-backed Prime Minister Victor Yanukovich in the country's presidential poll in late 2004, but later split over power ambitions of their leaders.

Under the coalition deal signed on Thursday, the office of Prime Minister will go to Yulia Timoshenko, whose bloc came in second in the March poll. She held the post after the Orange Revolution, but was sacked by President Victor Yushchenko last August.

Split may aggravate

The President's Our Ukraine bloc, the third runner-up, will get the post of Parliament Speaker.

The third coalition member is a small Socialist Party, whose support was crucial in giving the "Orange coalition" a majority of 239 seats in the 450-member Verhovna Rada legislature. Mr. Yanukovich's opposition Regions Party and its allies the Communists will hold 207 seats.

The formation of the "Orange coalition" is feared to aggravate the split in Ukraine between pro-Europe Western provinces and pro-Russian Eastern and Southern regions. It is also likely to further strain Ukraine's already tense relations with Russia.

Speaking after announcing the coalition deal, Ms. Timoshenko called for a review of a controversial natural gas deal with Russia.

Under the deal signed in January after Russia cut off all gas supplies to Ukraine for three days, Kiev agreed to nearly double its payments to Moscow. Russia's state-controlled gas monopoly Gazprom is strongly opposed to any revision of the deal.

Gazprom also said that as per the January deal, it intends to renegotiate upwards its gas prices for Ukraine after July 1.

"If Timoshenko reconsiders the gas agreements with Russia, this is likely to trigger off a large-scale gas war that will hit the whole of Europe," Krelmin-linked political analyst Sergei Markov told the Interfax news agency on Thursday.

Russia meets about a quarter of Europe's gas needs.

Source: The Hindu

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Thursday, June 22, 2006

Ukraine's Gas Predicament Worsening

KIEV, Ukraine -- One year ago today, Moscow’s preparations for a late-autumn gas attack on Ukraine could already be detected.


The early alert hardly registered in official Kyiv (except with then-prime minister Yulia Tymoshenko, who was soon forced out), let alone internationally; and Moscow’s attack came as a shocking surprise.

The January and February 2006 gas deals have strengthened Moscow’s ability to negatively influence Ukraine’s overall economic performance and internal political arrangements.

Nevertheless, most political forces (apart from the Yulia Tymoshenko Bloc, which rejects those deals) avoided this subject during Ukraine’s parliamentary election campaign and the strife ongoing since the March 26 elections.

At this year’s midpoint, Moscow is again preparing in its own way for Ukraine’s upcoming heating season.

Capitalizing on the supplier’s monopoly through RosUkrEnergo and inroads into Ukraine’s internal gas transport system and market through UkrGazEnergo, Moscow seeks to advance gradually toward its goal of controlling Ukraine’s strategic transit pipelines.

Gazprom and the Kremlin are moving on several tracks toward that goal. First, they allowed Kyiv to import gas without payment from January through May, thus pulling the state company Naftohaz Ukrainy -- the importer and pipeline owner -- into indebtedness when the bills came in June.

The debt accumulation process seems set to continue as Naftohaz -- and, thus, the Ukrainian state -- have to keep borrowing to pay the new gas bills in the months ahead.

Second, they have curtailed the Naftohaz income base (modest in any case) by capturing lucrative segments of the Ukrainian market through the joint venture UkrGazEnergo, controlled by RosUkrEnergo and thus ultimately by Gazprom.

The selective market capture process also seems set to continue as a condition to uninterrupted gas deliveries from Russia, thus sapping the Naftohaz financial position even further and forcing it into deeper arrears to the gas supplier.

Third, the Kremlin and Gazprom are taking every measure to cut off Ukraine from direct access to its traditional supplier, Turkmenistan, thus forcing Kyiv to buy that same Turkmen gas from the “exclusive supplier” RosUkrEnergo on Gazprom-dictated terms.

And fourth, Moscow is already predicting that Ukraine will again divert gas volumes bound for Europe from the Ukrainian transit system next winter, thus cutting into Europe’s supply.

Kremlin and Gazprom officials have propagated this message recently during President Vladimir Putin’s meeting with news agency chiefs from G-8 countries, the World Gas Congress in Amsterdam, the annual conference of international investors in Moscow, and Italian Prime Minister Romano Prodi’s Kremlin visit.

Thus, Moscow seeks to portray Ukraine as an unreliable manager of the transit system and a source of risk to Europe’s energy supply.

This line seems designed to induce European acceptance of a transfer of control over Ukraine’s transit system into Gazprom’s or some intermediate hands, if Ukraine responds to Gazprom’s pressures by siphoning gas again to the detriment of European consumers next winter.

At this stage, Ukraine is facing a supply gap of 10.7 billion cubic meters for consumption and reserve stocks in the second half of 2006. Ukraine also lags behind schedule in terms of building up those reserve stocks to 16 billion cubic meters in underground storage sites ahead of winter.

Gazprom and RosUkrEnergo (with their overlapping managements) propose to sell the missing quantities to Naftohaz Ukrainy and to UkrGazEnergo at prices set by the January agreement: $95 per 1,000 cubic meters of the Turkmen-Russian gas mix within the volumes agreed in January, or $230 per 1,000 cubic meters of Russian gas above and beyond those agreed volumes.

Indeed, Gazprom is pressing Kyiv publicly to fill those gaps, arguing that deficits in Ukraine’s supply or reserves in winter could lead to siphoning again and jeopardize the fulfillment of Gazprom’s export commitments.

Ukraine’s caretaker government is seeking ways to fill those gaps. The difficulties are, first, Russia’s obstruction of Ukraine’s direct access to Turkmen gas, which at $60 to $65 per 1,000 cubic meters is far cheaper than RosUkrEnergo’s gas at $95. (The wide differential would persist if Turkmenistan and Gazprom/RosUkrEnergo raise their respective prices, which they have said they might do from July 1 onward.)

Second, Gazprom has stopped storing its gas in Ukrainian sites as of this year, citing previous cases when it could not draw on those volumes for export because Kyiv could not account for them or admitted to have unilaterally borrowed from them.

With that safety cushion gone, Kyiv needs at this point to increase its gas purchases for the reserve stocks -- a difficult decision for cash-starved Naftohaz and the government.

Naftohaz Ukrainy is trying hard to preserve its reduced portion of Ukraine’s industrial gas market. That portion shrank as a result of the February agreement with UkrGazEnergo, itself a direct consequence of the January agreement with RosUkrEnergo.

Prime Minister Yuriy Yekhanurov, who signed the UkrGazEnergo agreement, carefully arranged to limit UkrGazEnergo’s sales volume in 2006 to 5 billion cubic meters. However, Kyiv faces pressure to gradually yield further market share to UkrGazEnergo in Ukraine’s industrial gas market, as short-term expedients to postpone the reckoning for Naftohaz debts and to keep gas deliveries flowing: from Gazprom through RosUkrEnergo to Ukraine and from RosUkrEnergo through UkrGazEnergo inside Ukraine.

Official Kyiv has allowed the country to become caught in this mechanism.

The vacuum of governance in Kyiv since January 2006 -- indeed since early 2005 at Naftohaz and the Fuel and Energy Ministry -- is playing into Moscow’s hands as problems pile up in Ukraine, unattended and increasingly intractable. Caretaker ministers who have already been dismissed or resigned both collectively and individually have no authority to negotiate with foreign counterparts.

Nor do the Naftohaz caretaker officials, designated by the caretaker minister, pending the formation of a new government.

Among Ukraine’s major parties, only the Yulia Tymoshenko Bloc rejects the January and February gas deals as illegitimate and calls for negotiating with Russia on the basis of Ukraine’s national interests.

Other political forces could support re-negotiation of those agreements, once a government is formed at last. For its part, President Viktor Yushchenko’s circle seems reconciled with and in some cases committed to those gas deals and has quietly worked to implement them, which might render them irreversible even if Tymoshenko becomes prime minister again.

This is undoubtedly one of the reasons behind the presidency’s tactic to drag out the negotiations over the formation of a new government for as long as possible.

Source: Eurasia Daily Monitor

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Ousted Ukraine Prime Minister Will Be Back In Post

MOSCOW, Russia -- Ousted from government last year amid the collapse of Ukraine's Orange Revolution movement, Yulia Tymoshenko will regain her post as prime minister under an accord reached Wednesday with President Viktor Yushchenko's party that preserves the country's pro-West agenda.

Yulia Tymoshenko is back as PM

The agreement between Ukraine's three Orange parties: Tymoshenko's bloc, Yushchenko's Our Ukraine Party and the Socialists - ends nearly three months of tense, contentious talks that ensued after the March 31 parliament election gave no party a clear majority.

Yushchenko's rival, Viktor Yanukovych, engineered a strong showing in that election, which marked his comeback in Ukrainian politics. But the pro-Russian political leader failed to win enough votes to form a parliamentary majority.

Suffering a humiliating third-place finish in that election, Yushchenko's party was forced to begin talks on forming a government with Tymoshenko, the ally he fired from the prime minister's post last year, and even held consultations with Yanukovych, his nemesis in the rigged presidential election that triggered the Orange Revolution in 2004.

Ultimately, Yushchenko chose to reunite with Tymoshenko, the charismatic 45-year-old Ukrainian whose fiery speeches inspired thousands gathered in Kiev's Independence Square to protest Yanukovych's fraudulent presidential win. The Ukrainian Supreme Court reversed Yanukovych's victory, and Yushchenko later won the election rerun.

The agreement creates an Orange coalition of 243 lawmakers, a majority in the 450-seat parliament, and keeps on track Yushchenko's pro-West program, which includes integration into Europe and independence from the Kremlin.

Yanukovych, whose Party of Regions won 186 parliament seats in the March 31 election, garners most of his support from Ukraine's pro-Russian eastern half and favors a strong relationship with Moscow.

"We have rescued democracy for Ukraine by approving this decision today," Tymoshenko told parliament.

Since his inauguration in January 2005, Yushchenko and his administration have been rocked by a series of scandals and fierce infighting that cleaved the Orange coalition and ultimately led to Tymoshenko's dismissal as prime minister in September. Yushchenko also accepted the resignations of top aides, including National Security and Defense Council chief Petro Poroshenko.

Crisis dents trust

The political crisis eroded public trust in Yushchenko's leadership, a trend reflected in polls showing Ukrainian confidence in government plunging to 15 percent.

After Yushchenko fired her, Tymoshenko formed her own opposition movement and made regaining the post of prime minister her primary aim. It remains to be seen whether the two, who barely are on speaking terms, can set aside their differences.

Tymoshenko also will have to reconcile differences with Poroshenko, another Orange coalition rival and a Yushchenko ally who is expected to be named parliament speaker.

"I don't know if she has reservations about this on a personal level," said Tymoshenko spokesman Vitaly Chepinoga. "I just know that she is sure she will work with the president to reanimate the public's trust in the Orange coalition and in government."

Yushchenko's press secretary, Irina Gerashchenko, said "mutual distrust and back-and-forth accusations once killed this coalition, and we must do whatever necessary to avoid this in the future."

The agreement on a new coalition is expected to be formalized by parliament Thursday. Once in place, the new government will inherit several thorny issues, including nationwide resistance to Yushchenko's call for the country to join NATO and the prospect of a second conflict with Russia over natural gas prices.

NATO membership

Ukraine's desire to join NATO is a cornerstone of Yushchenko's pro-West agenda. However, a recent poll by Kiev's Razumkov Center showed that nearly 70 percent of Ukrainians oppose NATO membership.

The appearance this month of U.S. Marines at Ukraine's Crimea Peninsula for routine exercises ignited a furious backlash, among pro-Russian Ukrainians and Russian leaders in Moscow who warned that Ukraine's accession to NATO would constitute a "colossal geopolitical shift" that Russia would not ignore.

Just as problematic for the revamped Orange coalition will be the potential for new increases in natural gas prices imposed by Russia's gas monopoly, Gazprom. When Ukraine balked at paying a fourfold price boost imposed by Gazprom last winter, the Russian state-owned gas utility shut off gas to Ukrainian consumers.

Gazprom leaders said this week that the price both sides agreed to last winter is valid for only six months and Ukraine can expect more increases this year.

Yanukovych's team doubts the new coalition would be able to weather such challenges.

"With the current economic situation and the political crises in the country," said Rodion Myroshnyk, a spokesman for Yanukovych's party, " I don't think the coalition can survive for a long period of time."

Source: Chicago Tribune

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Microsoft Rraps Ukraine On Piracy

KIEV, Ukraine -- Microsoft Ukraine, a 100 percent subsidiary of multinational software giant Microsoft, has blamed the Ukrainian government for failing to curtail software piracy in the country, noting that Ukrainian government agencies themselves have been too slow in replacing the unlicensed software they use with licensed software.


Ukrainian government agencies were obliged to legalize their Microsoft software, particularly Microsoft Windows and Office, between 2005 and 2007 in accordance with an agreement signed between Microsoft Ukraine and the Cabinet of Ministers in 2005.

But Valeriy Lanovenko, general director of Microsoft Ukraine, said that the government has been sluggish to implement the terms of the agreement.

According to Lanovenko, only 12 percent of the government’s obligations were fulfilled in 2005 and less than 3 percent in the first half of 2006.

“We have communicated our particular concern to those responsible in connection with the failure to fulfill the obligations,” said Lanovenko during a press conference on June 7.

Ukrainian government agencies need 120,000 copies of software to function, according to an audit conducted by the State Department for Intellectual Property.

Microsoft Ukraine agreed to provide licensed software to the government at a 50 to 60 percent discount, plus train state personnel in how to use it.

The company has fulfilled its side of the bargain, making a significant investment in the deal, said Lanovenko, who declined to disclose the exact amount of money that Microsoft invested.

“The slow pace of legalization of software used by government agencies sets a bad example for the market and complicates the effort to legalize software in the country in general,” he said, adding that if they do not receive a proper response from the government by July 1, Microsoft Ukraine does not rule out terminating the agreement.

The accusations came just weeks after International Data Corporation, an independent research firm, released a report on positive trends in the reduction of software piracy in the country based on results from last year.

According to the report, the share of illegal software in Ukraine fell from 91 to 85 percent in 2005, which moved the country from third to sixth place on the list of 20 countries with the highest level of pirated software.

Lanovenko said that last year’s trends have not continued into this year.

Oleh Kytaitsev, deputy head of the information technologies and computerization department at the Ministry of Education, which signed the agreement with Microsoft Ukraine on behalf of the Ukrainian government, admitted that implementation has been slow.

He said some government agencies that are independently responsible for legalization of their own software have not made the task a priority and have not allocated money to acquire legal software.

“Our Ministry fulfilled its part of the agreement, holding informative meetings and sending out letters about preferential conditions on which the licensed software can be bought,” said Kytaitsev.

“But the main responsibility for this task lies with the agencies themselves,” he said.

Source: Kyiv Post

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Giant Ukrtelecom Says It Needs To Fire Staff

KIEV, Ukraine -- Ukrtelecom, the country’s largest telecommunications company, will have to reduce its workforce by two-thirds to cut expenses and optimize its revenues, Ukrtelecom’s top management said last week.

Ukrtelecom ad for public payphone

“Our estimates show we ideally need 35,000-40,000 employees, which means we currently have some 80,000 redundant,” said Heorhy Dzekon, Ukrtelecom’s chairman of the board, during a June 15 interview in the daily business publication Delo.

Ukrtelecom, the state-owned fixed-line monopoly, has been in the news recently in connection with mixed announcements about when it will be privatized.

If the privatization takes place, analysts say it could be the second biggest privatization of state property in independent Ukraine after Kryvorizhstal, the giant steel mill that was sold to world steel giant Mittal Steel for $4.8 billion last year.

The state, which currently owns 92.86 percent of the Ukrtelecom’s shares, has repeatedly announced its intention to privatize the company since 2000, but the sale has been postponed time and again.

In November 2005, the Cabinet of Ministers under Prime Minister Yuriy Yekhanurov restarted the privatization process, urging the State Property Fund and the Ministry of Transport and Communication to prepare all the necessary documents. Until now, however, a clear tender date and the size of the stake to be privatized have remained unclear.

Meanwhile, analysts favor a fast privatization, as they say it would make Ukrtelecom’s restructuring inevitable and ensure more efficient management, two things that the company desperately needs right now.

According to Ukrtelecom’s financial reports, the company ended the first quarter of this year with a net profit of Hr 29 million – a reduction by 82.1 percent from the same period last year.

Ukrtelecom’s chairman Dzekon attributes the decrease in revenues to the growing use of mobile phones over land line phone connections, which his company mainly specializes in. Add the company’s surplus employees and virtually non-existent marketing strategy and it becomes clear that changes are needed to keep the company afloat, said Dzekon.

“Last year, we launched some 700,000 land lines, including 400,000 of those where we simply replaced analogue with digital,” noted Dzekon. “Compare this to some 15 million new clients that the country’s mobile operators attracted over the last year,” he said, noting that similar trends are evident in Europe, too, where land line operators have been loosing to mobile ones in profits lately.

According to Dzekon, they can improve the situation by cutting Ukrtelecom’s expenses, most of which are tied to employees’ salaries.

“We have tens of thousands of technical personnel trained to work with the analogue system, while the new digital one requires a lot fewer people,” said Dzekon, adding that it would be realistic to lay off some 30,000 employees in the next three years.

Although blessed with an overabundance of low-skilled technical staff, Ukrtelecom lacks good marketing specialists to promote its services and make the company competitive on the telecommunications market, said Dzekon.

Oleksandr Parashchiy, an analyst at Concorde Capital, said that Ukrtelecom suffers from a lack of flexibility stemming from its state ownership. He added that he does not expect any significant changes in the way the company is managed until after privatization.

“For one thing, tariffs for Ukrtelecom’s services are strictly regulated by the state and cannot be changed freely in response to the market situation,” said Paraschiy.

“Also, the state as an owner offers services that are beneficial in terms of social support but which are not profitable from the business point of view,” he added, giving the launch of phone lines in rural areas as an example.

According to Parashchiy, it’s not profitable for the company to launch phone land lines in villages, because the phone fees there are lower than the production costs.

“But the company does not have a choice, because it’s a state directive,” said Parashchiy, noting that in Europe special funds are created for this purpose and supported by contributions from all telecommunications companies in the country.

According to Parashchiy, laying off thousands of redundant workers at Ukrtelecom is inevitable but it won’t happen until a profit-driven investor comes in.

“The state won’t go for firing such a big number of employees, but it is necessary to make the company efficient,” said Parashchiy.

“The question will only be, of course, how to do it in a socially acceptable way,” he said.

Source: Kyiv Post

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Wednesday, June 21, 2006

Yushchenko 'Reaches Deal' With Ex-Orange Allies

KIEV, Ukraine -- Ukraine's president, Viktor Yushchenko, appeared today to have secured an agreement from his former allies in the Orange revolution to form a coalition government, in an attempt to draw a line under 18 months of political instability.

Ukrainian opposition leader Yulia Tymoshenko speaks to members of her faction in the country parliament in Kiev.

Roman Bezsmertnyi, who has led three months of bruising coalition talks for Mr Yushchenko's Our Ukraine bloc, said an agreement had been reached late last night to appoint Yulia Tymoshenko as prime minister.

Ms Tymoshenko, the president's former comrade in arms for the pro-western Orange revolution of November 2004, has since become a bitter political rival.

Mr Bezsmertnyi told parliament: "Yesterday the three political forces finished work on coalition agreement. Today we are preparing it for signing". Most observers expected the deal, which gives a Yushchenko ally the key post of parliamentary speaker, to go ahead.

The deal marks a climbdown for Mr Yushchenko, who fired the ambitious Ms Tymoshenko from the post of prime minister only nine months ago, claiming she was dishonest. The president has been forced to accept a coalition with her bloc and the smaller Socialist bloc after his party's 13% showing in March's parliamentary elections.

Since he came to power in December 2004, Mr Yushchenko's popularity has been eroded by a series of corruption scandals surrounding his family and officials, and bitter rivalries within his liberal pro-western administration. The man he defeated, the former prime minister Viktor Yanukovich, has seen his ratings rise.

Taras Pastushenko, a spokesperson for Ms Tymoshenko, was cautious about the agreement and noted that it had to be signed before the end of Friday or Mr Yushchenko would, under the constitution, have to call another parliamentary election. "We are still waiting for the three main players to get the agreement of their parties," he said.

Ms Tymoshenko told parliament: "We won democracy for Ukraine. The very creation of the coalition defines Ukraine's course for many years ahead and will move Ukraine into the European community."

Yesterday's coalition agreement came after weeks of squabbling between Mr Yushchenko and Ms Tymoshenko over the composition of the government, during which Mr Yushchenko's bloc repeatedly threatened to join forces with his former adversary Mr Yanukovich.

On Tuesday, Mr Yanukovich's bloc, which garnered about 35% of the March vote, claimed that a series of defections meant it nearly had enough MPs in parliament to form a coalition on its own.

The stand-off has also accentuated the pro-Nato stance of Mr Yushchenko, who has this month had to delay war games in Ukraine's south led by the western military alliance. Protests by pro-Russian activists in the region forced 200 US troops to return home without completing preparations for the exercises.

Mikhail Pogrebinsky, an analyst, said: "I think the coalition will go ahead. It will be weak but that does not mean it will fall apart after six months." He added that both partners needed each other more now as Mr Yanukovich's bloc would pursue more hardline policies and was therefore unlikely to be a coalition partner for either side.

He said that in practical terms the winner from the three-month deadlock was Ms Tymoshenko, and that she had now replaced Mr Yushchenko as the leading figure of the pro-western Orange coalition in Ukrainian politics.

Source: Guardian Unlimited

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Blokhin: Now Ukraine Has To Focus

HAMBURG, Germany -- Ukraine must come back down to earth quickly after Monday's 4-0 crushing of Saudi Arabia if it is to get past Tunisia and secure a place in the second round at its first World Cup.

Shevchenko celebrates : Ukrainian forward Andriy Shevchenko (R) celebrates with an assistant coach of the Ukrainian team at the end of the the World Cup 2006 group H football match Saudi Arabia vs Ukraine, at Hamburg stadium.

Helped by a return to form for Andriy Shevchenko and four changes to their starting lineup, the Eastern Europeans bounced back from a 4-0 drubbing by Spain that left coach Oleg Blokhin fuming about the team's mental approach and lack of fight.

Blokhin said his main task now would be to stop his team from growing overconfident before it faced a Tunisia side that frightened the life out of Spain on Monday and knows only a last-game win can see it through.

He told reporters: "This game gave us a big boost mentally. But we have to re-establish the mental basis for victory after this and it will be harder to motivate the players this time because we won."

With Spain through, Ukraine leads the running for second spot and a place in the last 16, with three points. The two Arabian teams have one point each and must win their last games to stand a chance of advancing.

Ukraine plays Tunisia in Berlin on Friday, while Saudi Arabia takes on Spain in Kaiserslautern.

The Eastern Europeans proved Monday that they were far from the one-man show some commentators have suggested.

Former European Footballer of the Year Shevchenko looked sharp again after a month off with injury, but it was Serhiy Rebrov and little-known Maxim Kalinichenko who engineered the victory in midfield.

A bit part player with Spartak Moscow, Kalinichenko took the FIFA man of the match award, scored the fourth and supplied the barrage of pinpoint crosses that were the key to victory. "I have always said he [Kalinichenko] is a great player and a great passer of the ball," Rebrov told reporters.

"He hasn't played much for Spartak, and I don't know why this is. But he is a good friend and a good person. Today he showed what he can do, but he can do even better."

Rebrov said the side could now do justice to its fans' expectations after it was the first European team to qualify for the finals from a group including Denmark, Turkey and European champion Greece. "In qualification we were best in the group and everybody sees Ukraine as a strong team, but now we have to show it," he said.

"I think after the way we played today, Tunisia will be really be preparing for us well. After losing 4-0 to Spain, I think Saudi Arabia didn't prepare well for us and thought we were not any good any more.

"We have to take this performance to the next game ... but we have shown we are capable of doing something at the World Cup."

Source: Reuters

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For A Healthy Ukrainian Nation

KIEV, Ukraine -- As medical researchers continue to publish more information on how to stay healthy in the West, makers of alcoholic beverages and tobacco products increasingly find themselves on the defensive.

Cigarette billboard advertising in Kiev

This has been going on for decades in North America and, more recently, Europe, fueled as much by the rising cost of health insurance as changing public attitudes.

Ukraine, like many of its immediate neighbors, has been slow to catch on to the trend. Drinking is deeply imbedded in the national culture, while smoking is widespread across class and gender lines.

Nevertheless, it is not unusual to encounter a non-smoking area in a Kyiv restaurant, and fitness centers are considered just as cool as night clubs among the capital’s more progressive inhabitants.

In short, the culture is changing. As often happens with fashion, tastes or public morals, change is being introduced from abroad, adopted by the cultural elite and filtered down to the masses.

In the West, the battle to decrease the use of tobacco and the abuse of alcoholic beverages has been bolstered by stiff legislation, as well as public information campaigns, to include restrictions on the way these products are advertised.

Ukrainian authorities have followed suit, or at least tried to give the impression of doing so – in their usual clumsy way.

The question is whether Kyiv’s administrative measures help things much or just create more headaches for the law-abiding and more opportunities for the corrupt.

As in the West, the advertisement of tobacco on TV is banned, and each package of cigarettes has a health warning printed on it. Restrictions on the promotion of booze are somewhat less stringent.

However, this is about as close as the parallels get.

For example, Ukrainian television audiences are subject to advertising by a wide variety of beer and vodka brands, whose producers say they are promoting the trademark, not the drink.

Then there is the warning that they are obliged to show at the end of the 30-second spots, with lettering so long and narrow that no one can read it anyway. What’s the point? To save the nation’s children, argue some lawmakers.

Then why don’t they start by enforcing legislation against the purchase of alcohol - or for that matter, cigarettes - by minors at corner kiosks? It might not hurt to crack down on the ubiquitous beer tents in the capital’s center during public events.

If Yushchenko and company were able to prevent drunken hooliganism in the center of Kyiv during the Orange Revolution, why can’t they do it now that they’re in power?

All the while, politicians like Mykola Tomenko, of the Yulia Tymoshenko Bloc, continue to call for a ban on outdoor advertising of alcohol and cigarettes.

The explanatory note to Tomenko’s draft law says that the ban is motivated by the need to preserve the nation’s health and because of the lack of other means to solve the problem.

According to Tomenko, the implementation of the draft will reduce the consumption of alcohol and cigarettes by Ukrainian youth, who are mostly influenced by advertising.

Yet, the average Ukrainian of any age has a greater chance of getting lung cancer from inhaling the black soot that billows out of the exhaust pipes of Kyiv city trucks.

As for the kids, they might not be as tempted to drink if they could find a job. And if they do smoke, better they should smoke a real cigarette than the contraband tar sticks hawked by grannies on the capital’s streets.

Why pick on the advertisers, who would be crippled if Tomenko’s bill were passed?

Why? Because it’s easier to come up with a clumsy populist law instead of solving the real problem at issue; because politicians like Tomenko are apparently more adept at creating rhetoric than creating jobs; because all too many of Ukraine’s lawmakers are more inclined to solve delicate socio-economic issues with a broad sweeping and ultimately ineffectual resolution or decree than hammering out a workable solution with input from interest groups and business.

Doesn’t Tomenko know that advertising agencies generate jobs and tax revenues, as well as driving business in other sectors?

Substance abuse is a serious problem, here and elsewhere in the world, where the law and markets work much better. In Ukraine, the health and welfare of children and others is more at risk from the abuse of the law and the market than any brand of alcohol or tobacco, advertised or not.

Enforcing laws rather than just writing them, and supporting the market, as opposed to stifling it, are the kinds of things that create the kind of society that looks after its own health, without interference by the state.

Source: Kyiv Post

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Ukraine's Parliament Resumes Bid To Form Coalition

KIEV, Ukraine -- Ukraine's parliament met again today to try to form a governing coalition.

Ukraine Parliament

The country has been in political deadlock following inconclusive legislative elections in March.

The biggest winner in the poll was the pro-Russian Party of Regions, but together three former Orange Revolution allies could hold more seats in parliament.

President Viktor Yushchenko's Our Ukraine party, the party of former Prime Minister Yuliya Tymoshenko, and the Socialist Party, however, have so far failed to agree on a coalition.

Tymoshenko today again blamed Our Ukraine for the deadlock.

"I can state that as events are unfolding, I do not reject the possibility that Our Ukraine will simultaneously sign two coalition agreements: one with the Party of Regions and one with our bloc," Tymoshenko said.

No lawmaker today would predict the outcome of ongoing negotiations, but both Our Ukraine and the Socialists said they expected a deal to be struck within 24 hours.

Under the constitution, Yushchenko could dissolve parliament and call early elections if no agreement is reached by June 25.

Source: Radio Free Europe

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Tuesday, June 20, 2006

U.S. Blocks Assets Of Belarus President, Prohibits Business With Him

WASHINGTON, DC -- The United States moved Monday to clamp down financially on Belarus' authoritarian President Alexander Lukashenko as well as other government officials.

President Alexander Lukashenko

The Treasury Department added Lukashenko to its list of specially designated nationals, meaning that any assets belonging to Lukashenko found in the U.S. must be blocked and Americans are forbidden from doing business with him.

Lukashenko, who has been in power since 1994, is often branded by Western countries as "Europe's last dictator."

He won a third term in March 19 elections deemed fraudulent by Western governments.

After the election, the White House said it would enact targeted travel restrictions and financial sanctions against Lukashenko. U.S. officials said Lukashenko's victory resulted from election fraud and human rights abuses.

In February, the Bush administration linked Lukashenko's government to the murders of a pro-democracy businessman and an independent journalist.

Other Belarus government officials also added to the United States' blocking list include: the minister of justice; the national security adviser; the minister of internal affairs, chief of the Belarusian KGB; chief of the central commission for elections and national referendums and the head of the Belarusian State Television and Radio Co.

"These sanctions, imposed in coordination with targeted financial sanctions adopted by the European Union indicate the international community's intention to hold to account those responsible for abuses in Belarus," the White House said in a statement explaining the move.

It said the United States will continue to gather and review information regarding possible additional targets.

The department did not elaborate on its action.

There was no comment from the government in Minsk on the action.

Last month Lukashenko said thath is government would appeal to international courts, including the European Court of Human Rights, against travel bans imposed against him and other officials by the U.S. and the European Union.

"What are the grounds for these restrictions? Is there some international court ruling that Belarusian officials are criminals? No, this is crystal clear," he said adding that not a single minister had been involved in the election campaign.

Ariel Cohen, a senior research fellow who specializes in Russia and Eastern Europe at the Heritage Foundation, a think tank, hailed the decision but said it came three years too late.

"We knew who Lukashenko was, we knew he murdered his political opponents," he said. "These measures needed to be taken before the election."

Rep. Chris Smith, who heads a committee on European security, said the Treasury action sends "a clear signal to those like Lukashenko and his cronies who have brazenly violated human rights and democratic principles they will not find a safe haven here in the U.S. for their dubious financial assets."

He said he would introduce legislation this week to expand sanctions already taken by the U.S. and the EU against Belarus.

Source: AP

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Ukraine's Pro-Russian Party Warns It Could Take Control Of Parliament

KIEV, Ukraine -- A pro-Russian party that won the most seats in Ukraine's parliament warned on Tuesday that it would try to take control of parliament if no quick deal is made in coalition talks with President Viktor Yushchenko's bloc.


Taras Chornovil

Taras Chornovil, a top lawmaker in the Party of Regions, said that if no agreement is reached by Wednesday, his party could gather together a simple majority of 226 votes thanks to defections from Yushchenko's and other parties. The party said it would then name a parliamentary speaker and begin work.

The threat, if carried out, would leave the president with little influence over forming the government in this ex-Soviet republic.

There has been growing frustration with lawmakers' inability to overcome differences and form a coalition government after March parliamentary elections, which gave Party of Regions the biggest chunk of seats, but not enough to form a majority on its own.

Yushchenko's Our Ukraine party had been in on-again, off-again talks with its former allies from the 2004 Orange Revolution, but declared those talks at an impasse last week and launched negotiations with the Party of Regions, headed by Yushchenko's rival in the 2004 presidential race, Viktor Yanukovych.

Negotiations in both directions continue, but Our Ukraine says more hurdles remain.

"People are tired of words, they need action that can change their life for the better," Mykola Azarov, a lawmaker with Party of Regions, told parliament Tuesday.

The former Orange allies, who combined their efforts to prevent Yanukovych from being named president in a fraud-marred vote in 2004, have struggled to overcome their bitter falling-out.

Yushchenko fired Tymoshenko in September, and hostility between their parties remains high. Tymoshenko's party, which won the second-highest number of seats in parliament, blamed Yushchenko's party for the difficulties.

"Before lunch, they negotiate with us, then they go eat somewhere and after lunch they hold tense negotiations with Party of Regions," she said in parliament.

Our Ukraine's Roman Bezsmertny said his party's goal was simply to create a stable coalition, and gave subtle hints that it meant uniting with Party of Regions. "Let us forget about what we had yesterday and let's think of the future," he said.

Parliament called a break until 4 p.m. to give faction leaders time to consult.

Source: AP

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Yushchenko's Party Choosing Coalition Partners

KIEV, Ukraine -- As the clock ticks down to June 24, when President Viktor Yushchenko may disband the Ukrainian parliament if no group has been able to form a majority there, coalition talks have intensified dramatically.

Viktor Yushchenko

Now Yushchenko's Our Ukraine is in talks not only with the parties that helped it bring Yushchenko to power in 2004 -- the Yulia Tymoshenko Bloc and the Socialists -- but also with the Party of Regions (PRU) of Viktor Yanukovych, who was Yushchenko's bitter rival in the 2004 presidential campaign.

Apparently each of Our Ukraine's would-be coalition partners is ready for compromises over posts, yet differences remain over issues as important as Euro-Atlantic integration, property rights, federalism, and the state language.

On June 13, Our Ukraine suspended talks with Tymoshenko and the Socialists and signaled its readiness for a coalition with the PRU. Yushchenko blamed the Socialists' ambitions for forcing Our Ukraine's hand.

Faced with the prospect of being pushed into the opposition, the Socialists and Tymoshenko backed down. Socialist leader Oleksandr Moroz told parliament on June 14 that he was ready to give up his claims for the post of parliamentary speaker.

He, however, came up with another, albeit a milder, condition -- that "all posts [should] be divided proportionally, from the deputy heads of district administrations up to ministers."

Yushchenko scolded Moroz for "blackmail and pressure" at their meeting on June 15. He also rejected the suggestions that apparently came from Moroz and Tymoshenko that the posts that are, according to the constitution, up to the president to fill, such as defense minister and foreign affairs minister, should be shared according to party quotas along with other posts.

At the same time, Yushchenko said that he still preferred a coalition with Moroz and Tymoshenko to an alliance with the PRU. He also offered Moroz the post of secretary of the National Security and Defense Council.

The three Orange Revolution parties resumed talks on June 16. It seems, however, that their readiness for compromises over posts has not prompted ideological compromises. Ideological gaps are especially wide between Our Ukraine, which is pushing for NATO membership, free markets, and reversing the constitutional amendments that bring Ukraine closer to a parliamentary republic, and the Socialists, who are wary of NATO, oppose land privatization, and want a stronger parliament.

The differences among the Orange Revolution partners, which seem insurmountable to many observers, have prompted Our Ukraine leaders to intensify their dialogue with the Party of Regions.

Our Ukraine has confessed that it has been holding "consultations" with the once-bitter rivals, but it is still shy to admit that the possibility of an "orange-blue" coalition is quite high.

The PRU has been less coy. Yanukovych forecast on June 15 that a coalition with Our Ukraine would be signed as early as Tuesday, June 20.

Representatives of both Our Ukraine and the PRU say that they have not yet discussed the distribution of posts. Ideological differences seem to be the main stumbling block in this case as well.

Our Ukraine has demanded that the PRU drop its opposition to NATO membership, along with the idea of federalism and plans to raise the status of the Russian language.

Those are the pillars on which the PRU built its victorious parliamentary election campaign earlier this year, so it should not be easy for the party to drop them.

The PRU, however, is intrinsically better prepared for compromises than Tymoshenko or the Socialists. It is a party of big business, which does not want to be in the opposition.

Ideology is not as important for the PRU as it is for Tymoshenko and especially for the Socialist Party, which risks losing its rural electorate if it agrees to land privatization and its supporters among the elderly if it backs Yushchenko on NATO.

As an option, the PRU has been offering a broad coalition. On June 14, it issued a statement urging such a coalition and signaling readiness for compromise over Euro-Atlantic integration.

Many influential people in Our Ukraine, including Prime Minister Yuriy Yekhanurov, are in favor of a broad coalition involving the PRU, Tymoshenko, and possibly the Socialists. If established, such an alliance would include more than 400 deputies in the 450-seat parliament, which does not seem realistic.

Tymoshenko and the Socialists apparently view the idea of a broad coalition as a ploy to kill the Orange Revolution coalition.

Tymoshenko told television reporters on June 15 that, should a broad coalition be set up, she would immediately go into the opposition and start preparations for a new presidential campaign.

The Socialists, being the smallest among would-be coalition parties, are especially afraid of a broad alliance, where their political weight would be reduced to a minimum. Yosyp Vinsky -- the most influential Socialist after Moroz -- said on June 15 that his party would be in the opposition, should Our Ukraine and the PRU form an alliance.

He, however, admitted that many Socialists do not share his point of view, and that they may quit the party to join the alliance.

Source: Eurasia Daily Monitor

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Monday, June 19, 2006

Ukraine Tops Saudis 4-0 In World Cup

HAMBURG, Germany -- Andriy Shevchenko scored his first World Cup goal Monday to lead Ukraine to a 4-0 win over Saudi Arabia in Group H.

Ukraine's Andriy Shevchenko (L), heads the ball to score the 3-0 during the Saudi Arabia v. Ukraine 2006 World Cup Group H soccer match at the World Cup stadium, Monday, June 19, 2006, in Hamburg, northern Germany.

Shevchenko scored with a header from Maxim Kalinichenko's set piece in the 46th minute, barely 30 seconds after halftime.

Andriy Rusol, Serhiy Rebrov and Kalinichenko also scored, giving Ukraine three points in the group.

Rusol got the first goal off Kalinichenko's corner in the fourth minute, knocking the ball in off his left knee. Rebrov added the second in the 36th with a 35-meter (yard) shot.

Saudi Arabia goalkeeper Mabrouk Zayed might have reached it on time but slipped on the wet grass, letting the ball into the top corner.

Kalinichenko scored in the 84th to complete a turnaround after Ukraine lost its opener against Spain 4-0.

Source: AP

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Blokhin Confident Ukraine Will Get Off Mark

HAMBURG, Germany -- Ukraine manager Oleg Blokhin is confident his World Cup debutants are quick learners, and will prove so against Saudi Arabia.

Oleg Blokhin

The former Soviet republic's bow on the world stage last week turned into a painful humiliation as Spain ran out easy 4-0 winners in Leipzig.

Victory against the Saudis in Hamburg later today would put Blokhin's side right back in the qualification picture, especially if Spain beat Tunisia in Stuttgart afterwards.

Blokhin said: 'We know that everything depends on this match. I don't have to tell the players that. They know it already.

'I am sure that the players understand we are not tourists here but World Cup participants. Being beaten 4-0 taught us a lot. We have learnt our lesson.

'We now know that when you are playing in the World Cup every little mistake is punished. We gave away two goals from set-pieces and had more problems when we had a man sent off.

'We know we have got to get a result and to get it we will keep playing football.'

Blokhin was also heartened by watching nations who had performed poorly in their first matches improve dramatically the second time around, with Ghana beating the Czech Republic and nine-man USA holding Italy to a draw.

He said: 'Those two teams are a classic example of how to learn your lessons. They were completely different in their second matches.'

Star striker Andriy Shevchenko is set to wear the captain's armband again despite a lack of match fitness following a knee injury, and midfield playmaker Oleg Gusev also appears to be winning his battle against a similar problem.

Blokhin has defensive worries as Vladislav Vashchuk is suspended following his sending-off against Spain, and Vladimir Yezerskiy is struggling with a thigh injury sustained in a training session.

Ukraine are nevertheless ranked as strong favourites to beat the Saudis, who opened their Group H campaign with a 2-2 draw with Tunisia in Munich.

The Green Hawks are still struggling to shake off the humiliation of a 8-0 thrashing by Germany four years ago but Blokhin was not prepared to write them off.

He said: 'We know Saudi Arabia have played many matches and have proved themselves to be a good team.'

The Spain game had been played in temperatures the Saudis would have been used to back home but Hamburg is likely to be much cooler.

But Blokhin was not counting on that and said: 'One should not look for the weather but to one's own performance on the pitch.'

Source: ESPN

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Ukraine Desperate To Revive Campaign

HATTINGEN, Germany -- Although Spain and Ukraine were considered well matched before the start of the World Cup, the two Group H teams are in contrasting positions going into Monday's second set of fixtures.

Group H standings

Spain's 4-0 thrashing of Ukraine last week gave Luis Aragones's side control of the group. A second win over Tunisia in Stuttgart will secure their place in the last 16.

Ukraine, stinging from the rout, have to wipe it from their minds before taking on Saudi Arabia in Hamburg.

Despite the heavy defeat in their debut appearance in the finals, Oleg Blokhin's team should still qualify.

Striker Andriy Shevchenko, back after a knee injury, looked out of sorts against Spain. Even if he remains off the pace, Ukraine can expect to beat the Asian qualifiers.

Saudi Arabia allowed Tunisia to grab a last-gasp 2-2 draw last week and consider the Ukraine encounter decisive for their chances of progressing, with Spain still to come.

Spain striker Fernando Torres urged his team to keep their feet on the ground, despite stretching their run to 23 matches without defeat.

"We've done nothing so far, we've just played one good game," said striker Fernando Torres.

SLIM HOPES

Tunisia's slim homes of claiming a second World Cup win in 11 attempts spanning four World Cups have been hit by striker Francileudo Dos Santos's failure to recover from a shin injury that also ruled him out of their opening match.

The top two in Group H face their counterparts from Group G in the second round and Switzerland can take a step toward securing first place, probably avoiding Spain, by beating Togo in Monday's other game.

Switzerland looked overawed at times in their opening goalless draw with France and must show more belief against the Africans.

Togo should be well briefed by their German coach Otto Pfister, who is married to a Swiss, lives in Switzerland and played and coached in the country.

The Africans have now settled the pay row among their squad, a dispute that caused Pfister to resign briefly before he returned to oversee the 2-1 defeat by
South Korea.

A win for Switzerland would put them on four points alongside Korea after the 2002 semi-finalists snatched a 1-1 draw with France in Sunday's late match.

Elsewhere, Brazil eased into the second round with a 2-0 victory over Australia thanks to goals from Adriano and Fred while Croatia and Japan shared a 0-0 draw.

Source: Reuters

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Ukraine Nurses Hopes Of Recovering At World Cup Ahead Of Playing Saudi Arabia

HAMBURG, Germany -- Ukraine arrived at the World Cup as many people’s dark horses but a 4-0 drubbing by Spain has left them doubting themselves as they languish at the bottom of Group H ahead of Monday’s game with Saudi Arabia, Reuters reports.

Andriy Shevchenko (C) and Ukraine’s national soccer team players

Led by former European Footballer of the Year Andriy Shevchenko and strike partner Andriy Voronin, the eastern Europeans were the continent’s first to qualify from a group including Turkey, Denmark and Euro 2004 champions Greece.

Yet they looked helpless against a rampant Spain in Leipzig on Wednesday, with Shevchenko a shadow of his usual self given his lack of match fitness after a month out with a knee injury.

They are without experienced central defender Vladislav Vashchyuk after a red card against Spain and unless Shevchenko can find his touch fast they may struggle to beat a Saudi team heartened by an opening draw against Tunisia.

“Every moment on the field during the Spain match I was striving to rediscover my form,” the striker, who has just left AC Milan for Chelsea, told reporters on Friday.

“I felt better after the game but I still need match practice. I think every one of us understands we have to start again from scratch.”

Ukraine midfielder Oleg Gusev is a doubtful starter with a knee injury, while Saudi skipper Sami Al Jaber, who scored in the 2-2 draw with Tunisia, has shaken off a thigh problem and is expected to play.

The World Cup is Ukraine’s first since it won independence and threw off three centuries of Russian domination in 1991.

It is also a welcome distraction from weeks of post-election wrangling by parties that backed the 2004 Orange Revolution but have since proved unable to form a stable government.

After qualifying, coach and former Soviet striker Oleg Blokhin even built up hopes that the team could even win the tournament but their beating by Spain crushed those high expectations amid a tide of media abuse back home.

“Even given the score, (the loss to Spain) is not necessarily a negative thing,” suggested Shevchenko.

“I said before that a good result for us is to make it out of the group. And that is what we are continuing to aim at.”

Spain lead Group H with three points and can qualify if they beat Tunisia in Stuttgart on Monday, leaving the others to fight it out for second spot and a place in the last 16.

A point against Tunisia somewhat redeemed Saudi Arabia for an embarrassing first round exit at the last finals, where they conceded 12 goals and failed to score in three straight defeats.

Victory against Ukraine would take them within touching distance of a place in the second round, which would equal their best result at a finals achieved in 1994.

Coach Marcos Paqueta said: “It will be vital that we keep Shevchenko and Voronin quiet. We’d still be alive if we draw but with Spain to play in the last game we need to win this game if we want to advance.”

Source: MosNews

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Ukraine Leaders Go Down To Wire On Coalition Talks

KIEV, Ukraine -- Bickering politicians in Ukraine toiled through a weekend of talks to form a government, with voters once elated by the "Orange Revolution" now wearily hoping the country can avoid social or constitutional upheaval.

Ukrainian President Viktor Yushchenko (C) speaks during a meeting with parliamentary faction leaders (from L to R) Roman Bessmertny, Yuri Yekhanurov, Alexander Moroz and Yulia Tymoshenko

Pro-Western President Viktor Yushchenko, thrust into power after the 2004 mass protests, no longer chooses his prime minister under new constitutional rules, but can dissolve the parliament elected in March if it forms no stable coalition.

Frustrated at delays, he says the deadline for a government to be formed is Thursday.

The president says he hopes three groups behind the Revolution -- his Our Ukraine Party, ex-premier Yulia Tymoshenko's bloc and the smaller Socialists -- will set aside their differences and forge a government team.

His party allies are hedging their bets and holding parallel talks with the Regions Party of Viktor Yanukovich, initially declared the winner of the presidential election in 2004 but humiliated when he lost a re-run ordered by the courts.

"Let me stress again: 82 days of talks have shown that career ambitions often outweigh the interests of state or even those of parties," Yushchenko said in his weekly radio address.

"Let's not look for external enemies here. Politicians should rather find within themselves strength for compromise and cooperation."

The two sets of discussions proceeded through the weekend.

An Our Ukraine official said differences had narrowed among liberals in a bid to restore the unity shattered when Yushchenko sacked Tymoshenko as prime minister last year. Yanukovich predicts a deal within days putting his party in government.

PARLIAMENT, GOVERNMENT HOBBLED

The impasse has virtually shut down parliament and hobbled government activity. A U.S. presidential visit was postponed as were war games with Britain needing the assembly's approval.

Yushchenko said this month he would not dissolve the chamber if talks failed. He has since been cautious, describing himself as a football referee "whose sole right is to use his whistle".

Yanukovich's Regions Party, more sympathetic to Moscow and opposed to the president's plans to boost links with NATO, came first in the March poll with 186 seats. But the three "orange" parties command 243 seats in the 450-member assembly.

Most rows among the liberals focus on dividing up top jobs.

The president has accused Tymoshenko of sabotaging the talks, but agrees she could become premier again.

Tymoshenko, who played a crucial role in the 2004 protests, was sacked after less than eight months in government to end prolonged infighting and her attempts to control markets.

Some presidential allies say that if she teamed up with Yanukovich it would restore investors' confidence and build on slowly improving economic indicators.

Tymoshenko remains popular among rank-and-file voters and her bloc had the best showing in March of liberal parties. She rejects any prospect of a government including Yanukovich, the figure so fiercely opposed in the revolution.

Commentators likened the deadlock to the debacle of Ukraine's 4-0 loss to Spain in its World Cup debut last week.

"It is, of course, silly to draw parallels between a shameful match and the parliamentary shambles," wrote the weekly Zerkalo Nedeli. "But events confirm an old hypothesis. We are incapable of seizing any opportunity which fate sends our way."

Source: Reuters

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Russian-Ukrainian Launcher Puts U.S. Satellite Into Orbit

KOROLYOV, Russia -- A Zenit-3SL Russian-Ukrainian launch vehicle and its upper stage have put a U.S. telecommunications satellite, Galaxy 16, into its target orbit, Mission Control in Russia’s Korolyov told Interfax-AVN.

Zenit-3SL Rocket

“The satellite has been put into the target orbit, and control over it has been taken over by the U.S. client. The launch was carried out by the Sea Launch corporation,” a Mission Control spokesman said.

The launch vehicle and the upper stage worked flawlessly, the spokesman said.

Galaxy 16, owned by the PanAmSaT telecommunications satellite operator (U.S.), will provide telecommunication services to users in the U.S., Mexico and Canada.

The satellite will replace the old Galaxy 4R satellite, which belonged to PanAmSat. It is intended for broadcasts in the United States, Alaska, Hawaii, Mexico and Canada. Galaxy 16 is the fourth spacecraft Sea Launch will orbit for PanAmSat, RIA Novosti added.

Sea Launch was created in 1995 as a consortium comprising Boeing, Norway’s Kvaerner Group, leading Russian spacecraft-maker Energia, and Ukraine’s Yuzhnoye design bureau and Yuzhmash production association.

It is the only company to operate launches from a sea platform in the Pacific’s equatorial waters, a location that makes it possible to launch heavier payloads than from elsewhere.

Sea Launch made four successful launches in 2005 and one in 2006.

Source: MosNews

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Sunday, June 18, 2006

Saudi Coach Expects Ukraine Onslaught

HAMBURG, Germany -- Saudi Arabia coach Marcos Paqueta expected to face an aggressive Ukraine team anxious to wipe away the memory of their humiliating 4-0 loss to Spain last week when they meet in their Group H match on Monday in Hamburg.

Brazilian Marcos Paqueta (L), the coach of Saudi Arabia

But Paqueta said at a news conference on Sunday that the pressure on Ukraine to prove their lopsided defeat in Munich was an aberration could play into his team's hands.

"The situation obliges Ukraine to go out and open up the field to try to get a result," Paqueta said when asked if he was concerned about a team with their backs to the wall -- as Ghana and the U.S. demonstrated on Saturday.

"They will try to get as many goals as they can to reduce the goal deficit they have," Paqueta added.

"This can be dangerous as well. They will be playing under tension. We will try to profit from this situation."

Paqueta was optimistic about his team's chance of reaching the knockout round after their 2-2 draw against Tunisia in their opening match. He said they have accomplished their first goal of wiping out the trauma of their 8-0 loss to Germany in 2002.

"Our big target was to prepare the players for the mission to erase the trauma of 2002 and we've done that before even starting the tournament," he said.

"Now we are looking forward to our dream of qualifying for the second round."

'KEY PLAYERS'

Paqueta said that he has a plan to stop Ukraine's striker Andriy Shevchenko, a former European Footballer of the Year.

"The best thing for us will be that the ball never reaches Shevchenko," Paqueta said. "This is important for us, to mark him and try to close down key players. One of them is Shevchenko."

Paqueta said he did not worry that his team would let up after their draw against Tunisia, which was celebrated almost as if they had won.

"I think my team will be improving their performance," he said. "We do have a great chance to qualify for the next round and go further than many people think."

Source: Reuters

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Ukraine's Orange Revolution Allies Restart Talks After Yushchenko Backs Orange Coalition

KIEV, Ukraine -- Ukraine's estranged Orange Revolution partners returned Friday to the negotiating table to try to put together a governing coalition, a day after President Viktor Yushchenko weighed in by saying he supported a government made up of his former allies.

Ukraine President Yushchenko

Tetyana Mokridi, spokeswoman for Yushchenko's bloc, Our Ukraine, said the talks between Yushchenko's party, the bloc of former Prime Minister Yulia Tymoshenko and the Socialists were underway at an undisclosed location in the Ukrainian capital.

The talks were initiated by Our Ukraine. Negotiations among the three parties that led the 2004 mass uprisings against election fraud collapsed over the weekend amid disagreement between Our Ukraine and the Socialists over the parliamentary speaker's job, prompting Yushchenko's party to open talks with the pro-Russian Party of Regions.

In a lengthy statement released Thursday, Yushchenko said that he remained a supporter of the Orange coalition. But he also criticized his potential coalition partners for making ultimatums over positions in the new government.

Ukraine has been locked in a political stalemate since the March 26 parliamentary election ended without a decisive winner. The Party of Regions, which dominates in the Russian-speaking east and south, won the most votes.

But it was overshadowed by the former Orange allies, who would hold more seats in the 450-member parliament if they could overcome their differences. Yushchenko and Tymoshenko suffered a bitter falling out eight months into Yushchenko's presidency, and hostility between their parties remains high.

Tymoshenko told Ukraine's 1+1 television late Thursday that if the Orange coalition did not form, she would put together a strong opposition and start making plans for a presidential run in 2009. If an Orange coalition forms, Tymoshenko said that she would back Yushchenko for a second term.

Viktor Yanukovych, who leads the Party of Regions, had predicted that a coalition uniting his party with Yushchenko's would be ready by Tuesday. Under Ukraine's constitution, lawmakers have until June 23 to put together the coalition.

Source: AP

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Plug Pulled On The Ukrainian Foreign Ministry's PR Project

KIEV, Ukraine -- The Ukrainian Foreign Ministry’s $2.5 million project to improve the country’s image abroad has been put on indefinite hold with the dismissal of the company that was contracted to implement the project, amid continuing allegations of top-level state corruption.

Vasyl Filipchuk

Konglomerat, a little-known Kharkiv-based company that won a controversial tender conducted by the ministry last December, has now had its contract cancelled by the ministry for alleged poor performance.

“After studying the services that were proposed by the company Konglomerat, the Foreign Ministry took a decision on the need to annul the contract with this company in connection with the inappropriate quality of services that were provided,” Vasyl Filipchuk, the head of the Foreign Ministry’s press service, told journalists during a briefing on June 13.

Filipchuk said that among other violations of the contract, Konglomerat was supposed to have conducted a Ukrainian film festival in Berlin, in which five films were to be shown to large audiences, but instead, according to Filipchuk, only one film was shown to a tiny audience.

CFC Consulting, one of several Kyiv-based PR firms that competed for the ministry contract along with Konglomerat, sued the ministry on Jan. 20 through the Kyiv Economic Court, alleging that the tender was unfair and rife with violations.

Over four months later, on June 2, the Kyiv Economic Court ruled against CFC, whose allegations were supported by other state bodies.

The Economy Ministry’s Department for Coordination of State Purchases announced as early as last January that the tender committee had violated the law. Ukraine’s Tender Chamber came out with similar accusations in March.

Hennadiy Kurochka, managing partner of CFC, said his company plans to continue with its lawsuit against the ministry up to the country’s Supreme Court in order to prove that the tender had been unfair.

“Our biggest complaint is not with the company Konglomerat, but with how the tender was held,” he said.

Kurochka called it “a shame” that it took so long for the ministry to admit that Konglomerat was unqualified for the lucrative contract. “They blocked any progress for the past six months,” he said.

In late January, Foreign Minister Borys Tarasyuk publicly defended the way the tender had been held.

“I want to say that we held a meeting on this issue at the ministry. I was personally present when the tender was started and can testify that it was transparent and was held in accordance with all the rules and tasks presented to the tender participants,” Tarasyuk said during an interview on the national television channel One Plus One.

Since then, the chairman of the ministry’s tender committee, who oversaw the awarding of the $2.5 million contract, Volodymyr Makukha, has been appointed Ukraine’s ambassador to Japan.

The Foreign Ministry statement announcing the winner of the tender described Kongolmerat as a company that had worked on the Ukrainian market for seven years, rendering public relations services in the past to the governments of Ukraine, France, Germany, Iran and countries of the former Soviet Union.

Konglomerat’s website described the company’s main services as asset appraisal of real estate, securities, business facilities and intellectual property.

In February 2005, the National Electricity Regulation Commission fined Ukrainian state nuclear power company Energoatom Hr 85,000 ($16,700) for violating tender rules in selecting Konglomerat to audit Energoatom’s main assets.

In a Feb. 27 press conference, Konglomerat spokesman Grigory Kunitsyn said his company was planning six different contract projects – including spots in international media, international conferences and the publication of a magazine – but that thus far, only research had been done.

Kunitsyn said his firm had already received money from the ministry.

“If any violations in the tender process were found, this will come out in the court hearings … We are fully prepared to abide by the decision of the court and return all money received, except that which hasn’t been spent on work already performed,” he said.

The Foreign Ministry’s Filipchuk told journalists on June 13 that the Kharkiv Economic Court would hold a session on June 22, during which the return of the money already transferred to Konglomerat’s accounts would be discussed.

According to Kurochka, the ministry paid 100 percent of the contract up front. “Just as we lost the case against Konglomerat in court, there is no guarantee that the ministry will be able to get its money back from this company by legal means,” he said.

Konglomerat’s director, Andriy Oleksandrovych Tymchenko, refused to give any comments when contacted by the Post on June 13.

Source: Kyiv Post

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Saturday, June 17, 2006

Yushchenko May Nominate Tymoshenko For Premier - Interior Minister

LVIV, Ukraine -- Ukrainian President Viktor Yushchenko is inclined to send the candidacy of Yulia Tymoshenko for the position of Ukrainian prime minister to the Verkhovna Rada, Ukrainian Interior Minister Yury Lutsenko said.


Viktor Yushchenko (L) and Yulia Tymoshenko in better days

"Judging by my meeting with the president, he leans towards nominating Yulia [Tymoshenko] for the position of prime minister,' the minister told journalists on Saturday in Lviv.

Speaking about Tymoshenko's chances to be approved, he said that "whether Tymoshenko becomes prime minister depends solely on her. If she succeeds not to turn friends into foes, she will become prime minister."

"However, she needs to stop insulting politicians from the Orange team she dislikes in public. The most irritating thing is that [Petro] Poroshenko has 20 supporters in the parliament and it is not wise to regularly refer to him as the main foe and a threat to Ukraine's democracy," Lutsenko said.

Lutsenko also expressed hope that next week "will show how well MPs are able to reach agreement".

Lutsenko did not exclude other options in the formation of a coalition. "If the parliament fails to back Tymoshenko, and I do not want this to happen, because this would be very negative for Ukrainian politics, we could expect the parliament to search for new variants," the interior minister said.

Source: Interfax

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60% Of Citizens Consider Their Native Language Ukrainian

KIEV, Ukraine -- Some 60% of Ukrainian citizens consider Ukrainian their native language, and some 38% - Russian.


Ukrainians in native dress

These are the results of a poll, conducted by “Democratic initiatives” Fund and “Ukrainian Sociology Service” company, publicized at a press conference in Kyiv today.

According to an UNIAN correspondent, in line with the poll, some 37% of those polled noted that they speak only Ukrainian in their families, some 34% - only Russian, and some 28% - use both the languages, depending on circumstances.

At the same time, some 78.4% of those polled determined their nationality as Ukrainian, some 19.1% - Russian, and some 2.6% - mentioned other nationalities.

The poll was carried out during June 1-11 in all the Oblasts of Ukraine, the Autonomous Republic of Crimea, Kyiv, and Sevastopol. 2011 respondents aged over 18 were polled. The error margin does not exceed 2.2%.

Source: UNIAN

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How To Understand Ukrainian President Viktor Yushchenko

KIEV, Ukraine -- Four out of five political forces in the Ukrainian parliament have described the political situation in Ukraine as a deep crisis. Only the pro-presidential Our Ukraine bloc seems to believe there is no crisis in Ukraine.

Political cartoon explaining Yushchenko's poisoning

At the root of this crisis is not the dragging out of coalition talks or even constitutional reform, but President Viktor Yushchenko’s leadership style and political culture. Many Ukrainians feel there is no ‘hospodar,’ or master, in the house.

To understand Yushchenko’s inability to become master of his house, one has to unpack the myths that were created around him when he was prime minister in 2000-2001 and presidential candidate in 2004. Yushchenko has never felt comfortable as an opposition politician.

Between 1994 and 2001, Yushchenko was a loyal government servant under President Leonid Kuchma, first as chairman of the National Bank and then as premier. This is not unusual in the post-Soviet world, as many national democrats also served in government before becoming oppositionists. Georgian President Mikheil Saakashvili served under former President Eduard Saakashvili, whom he removed from power in the November 2003 Rose Revolution.

What is surprising in Yushchenko’s case is his unwillingness to become a true oppositionist to the very last. The Yushchenko government was removed in April 2001 at Kuchma’s instigation after a Communist-centrist vote of no confidence. Nevertheless, Yushchenko and the Our Ukraine bloc he established for the March 2002 elections continued to believe that Kuchma would anoint him as his successor.

Yushchenko’s and Our Ukraine’s faith in Kuchma anointing him only fell by the wayside in November 2002, nearly two years after he was removed as premier. The reason for the disappointment was the appointment of the Donetsk governor Viktor Yanukovych as prime minister.

The appointment of Yanukovych was a tactical move by the then head of the presidential administration, Viktor Medvedchuk, to thwart an Our Ukraine-Donetsk alliance in the 2004 presidential elections. The Kuchma-Medvedchuk strategy was to ensure that Yushchenko and Yanukovych became foes, and if the elections were annulled, that either Kuchma could run again (as the Constitutional Court had permitted) or then National Bank head Serhiy Tyhipko would run in new elections in 2005.

Yushchenko’s and Our Ukraine’s stance also was revealed during the Kuchmagate crisis. As premier, Yushchenko never backed the protests and did not stand up for his first deputy premier, Yulia Tymoshenko, when she was arrested in January 2001. Yushchenko also signed a letter, alongside Kuchma and Rada speaker Ivan Plyushch, condemning the protestors as ‘fascists’. Even after the failure to obtain Kuchma’s anointment to be successor, Our Ukraine didn’t play a role in the anti-Kuchma protests. The Arise Ukraine! Protests of 2002-2003 were again dominated by the Socialists and Tymoshenko’s BYuT.

The national democrats, who later united in Our Ukraine, were similar to Yushchenko in their inability to move into the opposition. They never supported calls for Kuchma’s impeachment, as they stuck to the view that the president is the head of state and his fall could lead to Ukraine losing its independence.

Yushchenko and Our Ukraine therefore only demanded the removal of the heads of law enforcement agencies, which Kuchma agreed to. They preserved the view of the president as the ‘good Tsar’.

All the blame for Ukraine’s ills was directed by Yushchenko and Our Ukraine at Medvedchuk, whom they sought to remove as deputy speaker in December 2001 in revenge for firing Yushchenko as premier (Medvedchuk’s bloc not being elected into the 2006 parliament was a bonus). Charges of organizing the April 2004 fraudulent Mukachevo elections and then the poisoning of Yushchenko have also bypassed Kuchma and been blamed on Medvedchuk.

Yushchenko’s and the national democrats’ statist position was at odds with the Socialists and BYuT. It was these forces that constituted Ukraine’s only real opposition.

If Prime Minister Yushchenko and the national democrats had backed the BYuT-SPU opposition during Kuchmagate it is unlikely that Kuchma would have remained in office. De facto, the national democrats kept Kuchma in power for three more years.

Yushchenko and the business wing of Our Ukraine were always closer in politics to the ‘softliners’ in the Kuchma administration, the so-called moderate centrists, than to the SPU and BYuT. Leading Our Ukraine businessmen and Yushchenko always had more in common with former speaker Volodymyr Lytvyn, the Agrarians and People’s Democratic Party (NDP) than with the opposition.

The only national democratic exception during the Kuchmagate protests and since the Orange Revolution was the Reforms and Order Party (R&O), which was divided. Some R&P members backed the protests while others refused. This was repeated during the 2006 elections, when the R&P again adopted a middle ground between the Orange opposition (BYuT) and Our Ukraine.

Comparing the configuration of Our Ukraine in 2002 and 2006 reveals these divisions. In 2002, Our Ukraine was a far broader national democratic coalition that included R&P and Yuriy Kostenko’s Ukrainian People’s Party (UNP). In other words, it included both successor wings of Rukh, one which was the UNP.

In 2006, most national democratic parties had fled Our Ukraine. The UNP and R&P created their own blocs, as both were unhappy with Yushchenko’s policies and the dominant influence of centrist businessmen.

In 2002, Our Ukraine had a more evenly balanced mix of national democrats and businessmen united on a statist and reformist platform. By 2006, the only national democratic party left in Our Ukraine was Rukh.

Our Ukraine was never anti-Kuchma, unlike the SPU and BYuT. Yushchenko could not go against Kuchma, whom he once described as a father figure.

It should therefore come as no surprise that after coming to power, Yushchenko was never able to initiate proceedings against Kuchma. The Orange Revolution‘s slogan ‘bandits to prison’, which Yushchenko repeatedly used himself during the 2004 presidential campaign, undoubtedly included Kuchma as one of the aforementioned ‘bandits’.

After coming to power, Yushchenko never once morally condemned the Kuchma era and Kuchma’s role in it. This, coupled with the lack of criminal charges, would suggest that Kuchma was granted immunity during roundtable negotiations during the Orange Revolution.

Prosecutor Svyatoslav Piskun became the guarantor of this pact, and no charges were leveled against Kuchma or his senior elites. There is no other explainable reason why Piskun was kept in his position until October 2005 when the president had a right to dismiss him 10 months earlier. Piskun even escaped Yushchenko’s removal of the Tymoshenko government a month earlier.

This leads us to two conclusions.

First, Yushchenko and the business wing of Our Ukraine have always been closer to pro-Kuchma centrists than to the anti-Kuchma opposition (BYuT, SPU). Our Ukraine business leaders are pulled towards what they sought in 2001-2002, an alliance with the Party of Regions. Our Ukraine leader Yuriy Yekhanurov is more at home with the ‘national bourgeoisie’ in the Party of Regions than with the remainder of the Orange coalition (BYuT and SPU).

Second, it should come as no surprise that ‘bandits to prison’ was not acted upon. The lack of action in this arena has instead enabled the Party of Regions to come first by a wide margin, pushed Our Ukraine to third place, disillusioned many Orange supporters and damaged the concept of equality for all before the law.

Source: Taras Kuzio

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Ukraine's Yushchenko Proposes Three-Party Coalition

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko has proposed a three-party governing coalition as a solution to the country's political stalemate after almost three months of attempting to form a new government, it was announced Friday in Kiev.


President Viktor Yushchenko

According to former Prime Minister Yulia Timoshenko, the president proposed that her bloc join with Yushchenko's Our Ukraine Party and the Party of Regions led by Viktor Yanukovich, which was previously in opposition.

Timoshenko however said the proposal was unacceptable to her.

After the Ukrainian elections in March, the Party of Regions came out the strongest followed by the Yulia Timoshenko Bloc, with the Our Ukraine Party in third place.

The president's party is taking two tracks in the search for a new government, speaking with Timoshenko and the Socialists about a new Orange coalition while at the same time holding negotiations with Yushchenko adversary Yanukovich.

The parties in Ukraine's unicameral parliament have until June 27 to agree upon a coalition.

Timoshenko recently announced her candidacy for president in the next elections on Ukrainian television.

Source: DPA

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Friday, June 16, 2006

Hope And Despair In Ukraine

KIEV, Ukraine -- The success of the Orange Revolution in Ukraine two years ago was a historic shift in the power equations in the central Asian region — a region dominated for long by the Communists.


President Viktor Yushchenko

But, that success appears to be short-lived. The nation is in disarray now, thanks to the lack of unity among the principal actors in the revolution drama.

Almost three months have passed since the parliamentary elections were held there, and yet there is no government. President Viktor Yushchenko, who led the Orange Revolution, has not been able to cobble an administration, post the March polls, for the reason that the elections have thrown up a mixed verdict.

His coalition failed to gain a majority, necessitating a wider alliance, or allowing the rival side — the pro-Moscow opposition — to team up and form the new dispensation. In the latter eventuality, Ukraine’s politics would be back to square one. In other words, Moscow would again call the shots directly, which is tantamount to the unmaking of the Organge Revolution — which is what Moscow is looking for.

Clearly, Yushchenko has not been able to rise to the expectations of the people, as is reflected from the lukewarm response his alliance has received in the March elections. The euphoria that followed the Orange Revolution had given him the right atmosphere to shake the system and ably lead the country to better times.

Instead, what the nation witnessed was a wrangling between himself and the co-leader of the revolution, (then) Yulia Tymoshenko. Then the estrangement and her exit from the post of prime minister. If the March elections saw her emerging on her own as a leader with a powerful mass base, it was a lesson to President Yushchenko.

If anything, his failure to handle the situation with tact, in the months after his assumption of power, has led to the current impasse. Chances are that Yushchenko might now cobble a new alliance with Viktor Yanukovych, his rival in the 2004 presidential polls, if only to outwit his present bete noire, Tymoshenko.

People’s expectations were high in the two years past the Orange Revolution. But, has the president been able to do a job? Feelings are that his hands are tied by his own bureaucracy, that maintains its old, yet surreptitious links with Moscow through covert operations. Add to this the problem of corruption, that goes uncontrolled. If Yushchenko fails, who wins? Who, other than the regional overlord, Moscow? If so, what was the 2004 revolution all about?

The massive public support for the revolution, as was witnessed on the streets of capital Kiev two years ago, leading to the installation of what many saw as a West-leaning government there, showed how the people wanted a change.

The people thought the revolution leaders will live up to their image and effect a turnaround their lives, and change the destiny of the nation for the better. That the nation is left without a government for thee months now is clearly the anti-climax to their expectations.

All what has happened there, for the common eye, is a constitutional change that, if anything, trimmed presidential powers and made the parliament more powerful — so much so, the president no longer has the authority to name the prime minister and much of the cabinet.

The president’s authority is now restricted to set the nation’s foreign policy and appoint foreign and defence ministers. In other words, in domestic matters, he will no more have any say.

The lack of a parliament and government is leading to other problems as well, as is evident from the way the US Marine reservists had to leave the country the other day without carrying out their scheduled multi-national military exercise.

A parliamentary approval was what was required for the exercise, but in the confused political scenario, how could the parliament meet? Pro-Moscow parties could not hide their glee at the way the exercise stands suspended, as they remained critical of the West having a foothold in the central Asian territory.

Without doubt, the public sentiment continues to remain more in favour of Ukraine’s alliance with the West. The March polls showed the pro-West parties combined polling more votes than the pro-Moscow groups. The writing on the wall is clear. Yushchenko would do well to keep up the spirit of the Orange Revolution.

It means that he should be working in a way as to form the next government on the lines of the revolution spirit. It also means he must make every effort to have a patch up with his estranged revolution partners. Yulia Tymoshenko must share the same sentiments as well.

Time is running out for Yushchenko and the revolution allies. He has time until June 27 to form a government; or dismiss parliament and call for fresh elections. People expect not only a government but also a government that performs. In the least, Yushchenko and his team should not let down the people. They have a historic task to perform and this is the time for right action.

Source: Khaleej Times

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Ukrainian President's Party Starts Formal Coalition Talks With Pro-Russian Party

KIEV, Ukraine -- President Viktor Yushchenko's political party announced Thursday that it was in talks with Ukraine's largest pro-Russian party to create a governing coalition, amid a continuing struggle to form a new government 11 weeks after parliamentary elections.

Viktor Yushchenko (L) and Viktor Yanukovych

The pro-Western Our Ukraine party also insisted that the door was still open to talks with its former Orange Revolution allies.

"We held first preliminary consultations with Party of Regions," Our Ukraine's Roman Zvarych said in parliament. "But we propose holding multilateral negotiations as well as bilateral (talks) with any political force to find a way out."

Negotiations among the three estranged parties that led the 2004 mass uprisings against election fraud collapsed over the weekend, prompting Yushchenko's party to open talks with the Party of Regions.

Ukraine's government has been paralyzed since the March parliamentary election ended without a decisive victor. The Party of Regions, which dominates in the Russian-speaking east and south, won the most votes.

But it was overshadowed by the former Orange allies, who would hold more seats in the 450-member parliament if they could work out their differences.

The other two Orange parties have called negotiations with Party of Regions a betrayal.

The Party of Regions is led by Viktor Yanukovych, whose ballot-stuffing attempt to win the 2004 presidency sparked the Orange Revolution.

Lawmakers from the Party of Regions joined forces with Our Ukraine on Thursday to push through another break in parliamentary work until next Tuesday to allow for coalition talks.

The Socialists and the bloc of former Prime Minister Yulia Tymoshenko voted against the break.

Relations between the one-time allies sharply deteriorated during Yushchenko's first year in office, with Yushchenko firing Tymoshenko eight months into his term and the charismatic Tymoshenko running an aggressive parliamentary campaign, which helped her party to rout Yushchenko's.

Many analysts say that Yushchenko sees Yanukovych as less of a threat than Tymoshenko.

"The process has started and we are out of this process," said Mykola Tomenko from Tymoshenko's bloc. "But it does not mean that we have lost hope."

The chances of the Orange team overcoming their deep hostility looked increasingly unlikely, however.

Yanukovych predicted that a coalition would be formed by Tuesday. He said that his party already had enough votes to form a majority, based apparently on individual lawmakers allegedly defecting from their parties.

Yanukovych did not elaborate, but added that his party is seeking "a coalition of parties not of individual lawmakers."

Some lawmakers have hinted at the beginning of a deep split within Our Ukraine over the talks with the Party of Regions.

"Our Ukraine is not only committing its own political suicide, it also wants to take Ukraine's future with it," Tymoshenko said.

Source: AP

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Thursday, June 15, 2006

USAID To Help Ukraine Fight Corruption

KIEV, Ukraine -- USAID will provide Ukraine with some $13.5 million in assistance to help the country fight corruption, according to an agreement signed between Ukrainian Justice Minister Serhiy Holovatiy and the director of USAID’s Regional Mission in Ukraine, Earl Gast.

Ukrainian Justice Minister Serhiy Holovatiy

While the U.S. government has been channeling aid to Ukraine through USAID for years, the agency’s press release has underscored that this is the first cooperation agreement to have been signed between Ukraine and USAID on the implementation of a “strategic mission.”

“The agreement […] signals a new phase in cooperation on judicial reform and the fight against corruption,” said Assya Ivantcheva, acting director of USAID/Ukraine’s Office of Democracy and Governance.

The strategic mission of the project, according to USAID’s press release, is to enforce the rule of law in the judicial, executive, and legislative branches of government in Ukraine by introducing amendments to current legislation that aim to diminish corruption and enhance the transparency of the Ukrainian government.

Specifically, Ivantcheva said, this cooperation will be facilitated by two projects that have already been launched.

According to Ivantcheva, the centerpiece is a four-year, $12 million contract that will be implemented by Chemonics International, a global consulting firm promoting economic growth and higher living standards in developing countries.

The project foresees providing “technical assistance”, such as expertise in policy and legislative issues, as well as institutional support for the judicial reform process, which should include judicial training, court staff development, advocacy, monitoring, and public education.

Another project will be carried out via the Commercial Law Center, a USAID-funded project dedicated to commercial law reform in Ukraine, and will work to improve the legal environment for business in Ukraine.

The project will concentrate on issues such as corporate governance, shareholder rights, property ownership, the legal framework for bankruptcy, taxation and certification, and also easing trade barriers, Ivantcheva said.

“We hope this agreement […] will bring eventual results,” Justice Minister Holovatiy said.

He added that as a part of the country’s anti-corruption efforts, the Ukrainian government has also been working together with the U.S. government’s Millennium Challenge Corporation (MCC) – a program initiated by U.S President George Bush in 2002 to assist developing countries that meet specific requirements.

In late February, a U.S. delegation from MCC spent three days in Kyiv to discuss plans with Ukrainian government officials for a special development program focused on fighting corruption in Ukraine.

However, MCC’s funding package to support Ukraine’s anti-corruption efforts still has to be approved by the MCC Board in Washington, according to USAID’s Ivantcheva.

According to a survey conducted by the Berlin-based think tank Transparency International, Ukraine is still among the 50 most corrupt countries in the world. Based on assessments of the business community and country analysts, Ukraine was ranked 113th on a list of 159 countries in 2005.

Transparency International considers corruption in Ukraine to be comparable to levels observed in countries such as Belarus, Kazakhstan, Palestine, Zambia, and Zimbabwe.

Source: Kyiv Post

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Ukraine Blames Frogs For Loss

KIEV, Ukraine -- Frogs croaking near the team hotel in Potsdam contributed to Ukraine's crushing World Cup defeat by Spain, players told the Ukrainian media on Thursday.


The squad didn't get a wink of sleep the night before Wednesday's game, defender Vladislav Vashchuk was quoted as saying by the daily Donbass.

Some players were so annoyed they threatened to go and put a stop to the offending noise, the newspaper reported.

Vashchuk was red-carded in the match, which Ukraine lost 4-0, prompting coach Oleg Blokin to criticise his players' "unwillingness to fight."

Source: SAPA

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Ukraine's Orange Revolution Partners Trade Allegations Of Betrayal Over Failed Coalition Talks

KIEV, Ukraine -- Ukraine's former Orange Revolution partners traded allegations of betrayal Wednesday, blaming each other during an open parliament session for the failure to form a working government after 82 days of coalition talks.

Orange Revolution partners

The three estranged parties that had led the 2004 Orange Revolution against election fraud had been engaged in difficult talks to reunite, but their negotiations fell apart over the weekend.

President Viktor Yushchenko's Our Ukraine party initially blamed the collapse on a disagreement with the Socialists over the parliamentary speaker's job, but later said the main disagreements were over policy.

"We had not a single dispute left," countered former Prime Minister Yulia Tymoshenko, who was slated to return to her former job if the Orange coalition reformed. "Why then have they started to talk about principles? ... They did not want to create this coalition, they wanted to spoil the process."

Our Ukraine has said it is time to widen talks to include other parties, which could pave the way for an awkward alliance with Yushchenko's 2004 presidential election rival, Viktor Yanukovych, whose pro-Russian Party of Regions won the most votes in the March election. Tymoshenko's bloc came in second, winning more than Yushchenko's party and the Socialists combined.

Yanukovych's pro-Russian party said it was ready to hold talks with all the parties, and Our Ukraine appeared eager to start. The bitter falling-out between Yushchenko and Tymoshenko last year poisoned relations between their parties, and many analysts have said Yushchenko sees Yanukovych as a more reliable partner than Tymoshenko.

"Today we have a simple choice: either a coalition or an election mess," said Our Ukraine's Roman Bezsmertny. "We are for a coalition."

Such a move, however, could prove politically damaging for Yushchenko, whose party campaigned on the slogan "Independence Square was not in vain," a reference to the mass protests they led against Yanukovych's ballot-stuffing attempt to win the 2004 presidency.

"To form a coalition with the Socialists and Tymoshenko's bloc might mean that some politician would lose, but to form a coalition with the Party of Regions would mean that our national interests lose," said Our Ukraine's Mykola Katerynchuk, signaling a division within the president's party.

In a last minute bid to overcome the differences, Socialist Party leader Oleksandr Moroz said he would surrender his demand to become parliamentary speaker. But he added that he would only do this if all presidential appointees were named in the coalition agreement.

Our Ukraine's Petro Poroshenko responded that he thought the proposal was "positive," but added that the premiership should not go to Tymoshenko - a suggestion she would never accept.

"Now all that's left is for Yulia Volodymyrivna to give up the prime minister's job and we'll have a coalition," he said, referring to Tymoshenko.

Source: AP

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Ukraine Coach Says Players Should Be Ashamed Of Their World Cup Debut

LEIPZIG, Germany -- It was a historic moment for Ukraine - and one it will soon want to forget.


Gooooooal! : Spanish forward David Villa (D) celebrates after scoring a goal during the World Cup 2006 group H football match Spain vs Ukraine, at Leipzig stadium. Spain won 4-0.

The ex-Soviet republic entered the World Cup on Wednesday with an embarrassing 4-0 loss to Spain. Coach Oleh Blokhin said his players should be ashamed.

"I'm sorry for all the Ukrainian fans. I hope it will never be repeated," Blokhin said. "On some occasions we were playing like the worst team in Europe.

"The players didn't respect the advice of their coach. Sometimes we didn't even try to attack."

The heat, the referee and Spain's marksmanship proved to be a disastrous cocktail for the World Cup newcomers at Leipzig.

Ukraine had a hard enough time in the first half, conceding two goals, with an even playing field. When Vladyslav Vashchyuk was sent off at the start of the second for a challenge on Fernando Torres, it got much worse.

"I'm extremely disappointed," Blokhin said. "But to be frank this is our first ever appearance in the World Cup and of course we have to build on this experience. Now we have to try to restore the morale of the team."

He declined to say which players had failed his instructions, but said the whole team lacked will - especially the back four.

"We are going to have to completely reconstruct the defense because it didn't work at all," he said.

The Ukraine lineup seemed to sink deeper with each Spanish goal and never came close to reducing the tally. Even Andriy Shevchenko was uncharacteristically pale accomplishing little besides running offside.

"Maybe if they hadn't scored that second goal it could have been different but after the second one, everything was finished," said Shevchenko. "Everyone tried their best, I don't know what happened.

Ukraine's best chance was when Spanish goalkeeper Iker Casillas left his penalty box on an ill-advised excursion. Andriy Voronin was steaming toward the unguarded goal, but Spain's Pablo Ibanez caught up with him and knocked the ball out of bounds.

Second-half substitute Serhiy Rebrov said Ukraine struggled more than the Spaniards in the heat.

"They had an advantage with the weather," Rebro said. "Of course it's difficult to lose with that kind of score but it's good experience for our next games."

Ukraine is still favored to clinch second spot in Group H. It faces Saudi Arabia on June 19 and Tunisia four days later.

"We hope we will concentrate on our next two games, we have to win," Rebrov said. "But Ukraine is a strong team and we will show this in the next two games."

Source: AP

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Ukraine’s Football Achievements Mean A Brighter Future For Children — Shevchenko

LEIPZIG, Germany -- Ukraine’s Andriy Shevchenko is one of more than 100 football greats serving as a Federation Internationale de Football Association (FIFA) charity ambassador.


Andriy Shevchenko

In an interview to SOS-Kinderhof International, Shevchenko explains his decision to take part in the Children’s Villages project, speaking about the situation in his homeland of Ukraine and the chances that Ukraine and Germany have at the World Cup.

Andriy , why do you support SOS Children’s Villages?

This is a wonderful project which immediately appealed to me and which I support with all my heart. I think that, today, this is the best kind of project because it addresses the current problems of children and really does provide help to children. The more SOS children’s villages we can build in Ukraine, the easier it will be to find a solution for the many problems of Ukraine’s children. As a sportsman, I can be a role model for the children — it is my duty to help them.

What are your thoughts on the current economic situation in Ukraine?

The economic situation in Ukraine is improving from day to day. But this is not necessarily solving the problems of the children. Children are often the ones who suffer the most as a result of the current situation in Ukraine. It is our duty to ensure a better future for them. I grew up in similar circumstances as these children here.

What does it mean for you personally that Ukraine qualified for its first World Cup?

For me personally it means the achievement of a childhood dream, and it also gives my career a major boost. The participation of Ukraine in the World Cup is not only important for Ukraine football, it is also important for the country. The achievement of our football team serves as an encouragement for the economic and political situation in Ukraine, and particularly for the children. Our children must be at the forefront. Children are our future and the future of our country.

How can SOS Children’s Villages help children in Ukraine?

Above all, the children are given an education and a family — children need a family. Childcare methods used to be very different. They were in the form of child centers, which I believe crippled children psychologically. The childcare model of SOS Children’s Villages, of building a village with family houses, can help solve the problems of the children in a much quicker and more effective way.

In your opinion, what football team has the best chances of winning the World Cup?

I think there are 5 to 6 teams with good chances, namely Brazil, Argentina, Germany, France and Italy. On the other hand, there are very young teams who can deliver a good performance at the World Cup. I hope the Ukraine will be among these teams.

In your opinion, what are the chances of the Ukraine at the World Cup?

The most important thing is that we are participating in this football party. Our team is well prepared to deliver a good performance. The fact that we qualified for the World Cup is already a major success. It will be a new experience for all of us. As for the results…I think it is very difficult to plan anything. But we are well prepared and will do the best we can.“

And what chances do you think Germany has?

I think Germany’s chances are good. They are playing at home, they are at the centre of public interest, and they are well prepared and did not have to play any qualification matches. I see a lot of room for development in the German team, and I think they have a good chance of lifting the World Cup title.

Source: MosNews

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Wednesday, June 14, 2006

Villa Hits Two As Spain Crush Ukraine 4-0

LEIPZIG, Germany -- Spain made their best start to a World Cup finals, demolishing 10-man Ukraine 4-0 on Wednesday on an afternoon the tournament debutants would rather forget.

A Ukrainian fan cheers in the stands before the Group H match between Spain and Ukraine in Leipzig, June 14, 2006.

Two goals from the outstanding David Villa, one a deflected free kick and the second from the first penalty awarded in the competition, a header from Xabi Alonso and a powerful volley from Fernando Torres secured Spain's emphatic Group H victory.

Ukraine were reduced to 10 men after 47 minutes when Vladislav Vashchyuk was harshly sent off for tugging at Torres's shorts.

Spain took their run to 23 matches without defeat since Luis Aragones became coach after Euro 2004.

Although it is too early to consider them potential champions, Spain played sparkling football in defence, midfield and attack and could easily have added more goals.

In contrast, Andriy Shevchenko, the 2004 Footballer of the Year who has been signed by Chelsea from AC Milan for almost 30 million pounds, hardly had a meaningful touch.

Spain went ahead after 13 minutes, Alonso bravely getting his head to the ball from Xavi's left-wing corner.

Four minutes later, the lead was doubled when Villa's free kick took a deflection off Andriy Rusol to leave goalkeeper Oleksander Shovkovsky nowhere.

Ukraine coach Oleg Blokhin attempted to pep up his side by bringing on Andriy Vorobei and Oleg Shelayev at halftime but his plans were wrecked within 90 seconds of the restart when Vashchuck was harshly shown the red card for hauling back Torres.

Villa made no mistake from the resulting penalty although Shovkovsky got a hand on the ball.

Torres sealed victory with a blistering volley on the run with nine minutes to play.

Source: Reuters

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Blokhin: "Ukraine Could Win World Cup"

LEIPZIG, Germany -- Ukraine coach Oleg Blokhin believes his World Cup debutants could lift the prized trophy on July 9. Blokhin - who became a national hero when the Ukraine became for the first side in Europe to qualify for the finals - insists anything is possible ahead of his side's Group H opener against Spain.

Ukraine coach Oleg Blokhin

"We could be world champions," said the 1975 World Footballer of the Year, who continued by paraphrasing Napoleon by saying: "A soldier who does not want to become a general is not a good soldier."

And Blokhin appears unfazed despite his side possibly going into the Spain clash without star striker Andriy Shevchenko, who is doubtful with a knee injury.

"Germany played without Ballack against Costa Rica and that didn't prevent them from winning," he said defiantly.

"Apart from Shevchenko we have quite a few more players who are dangerous in front of goal."

Should Blokhin start without his captain, Sergei Rebrov could partner Olexiy Belik up front.

ALONSO: "WHY NOT THIS YEAR?"

Spain midfielder Xabi Alonso has remained bullish about his side's chances at the World Cup, despite poor showings in recent tournaments.

Luis Aragones' side have been perennially labelled dark horses yet flattered to deceive in recent times, but Alonso believes this could be the year when Spain finally have some success.

"We have had some great teams in the past and they lacked a little luck or something was always missing," said the Liverpool playmaker. "But I don't see any reason why we can't make a big run in this tournament. Why not this year?

"I think we have the talent and the players. Obviously in the last few tournaments we have not been able to reach the final or the semi-finals.

"Now we are desperate to get there and I think with the preparations we have made it is entirely possible that this time we can achieve big things."

Alonso sees Ukraine as Spain's biggest threat in Group H, but believes his team-mates will be out to impress in their opener.

"On paper they are a very tough opponent," he conceded. "We played against them two years ago in Spain and it was really difficult to play against them.

"They were also the first team to qualify for the World Cup from Europe, so this means they are a very dangerous team and we will have to be aware of this.

"But we will be very motivated to take the game to them from the start."

After failing to impress in warm-up games, captain and all-time leading goalscorer Raul looks set to start on the bench, with Fernando Torres and David Villa the likely duo to start up front.

Argentine-born defender Mariano Pernia is expected to start at left-back, with Marcos Senna, Alonso and Xavi likely to make up the midfield.

Prediction: Ukraine 2-1 Spain

Source: EuroSport

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Ukrainian President's Party: We Are 'Free' To Look For Other Coalition Partners

KIEV, Ukraine -- President Viktor Yushchenko's political party declared itself free to look for other coalition partners on Tuesday, after 11 weeks of talks to reunite Ukraine's Orange Revolution partners ended in deadlock, a senior Our Ukraine official said.


A year later, can foe become friend? In Ukrainian politics anything is possible.

"A coalition must be formed in any case," Our Ukraine's Roman Zvarych said. "We always demonstrated a constructive position. However, in connection with the hopeless situation, we have informed our partners that 'We are free in our activities."'

The three parties that supported the 2004 Orange Revolution halted talks on Saturday amid a disagreement between Our Ukraine and the Socialists over the parliamentary speaker's job. The so-called Orange team's failure to overcome their differences has left this ex-Soviet republic effectively rudderless, with neither the Cabinet nor parliament fully functioning.

The disarray prompted U.S. President George W. Bush to put off a visit to Ukraine this month.

The most likely option now is for Our Ukraine to enter talks with Yushchenko's 2004 Orange Revolution rival, failed presidential candidate Viktor Yanukovych.

Yanukovych's pro-Russian Party of Regions won the most votes in the March parliamentary elections, which gave no party a majority.

Former Prime Minister Yulia Tymoshenko, who would get her old job back if the Orange coalition formed, and Socialist Party leader Oleksandr Moroz have said that they would not talk to the Party of Regions.

Tymoshenko, who had a bitter falling out with Yushchenko last year, has accused Our Ukraine of setting out to sabotage the talks.

Many analysts believe that Yushchenko views Yanukovych as less of a threat to his authority and a more palatable partner than Tymoshenko, whose party won more votes than either of the other Orange forces combined in the March elections.

The Party of Regions has said it is ready to negotiate.

"I think the Ukrainian people understand that they'll receive nothing from a coalition of one color," said Yanukovych's spokeswoman Anna Herman. "Ultimately, this is natural because Ukraine is not one-colored."

The Party of Regions, whose campaign color is blue, dominates in Ukraine's Russian-speaking east and south, while the Orange parties hold sway in the west.

Under Ukraine's constitution, the parties have until June 27 to form a coalition. After that, Yushchenko can dissolve parliament and call new elections. He has said, however, that he will not call a new vote.

Source: AP

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Tuesday, June 13, 2006

Bush Visit, Military Exercises Cancelled In Ukraine

WASHINGTON, DC -- The U.S. White House announced on June 8 that President George W. Bush would not go ahead with his tentatively planned visit to Ukraine.

Yushchenko foot-dragging forces Bush to sidestep Ukraine

The announcement termed the decision a postponement, rather than cancellation, of the visit, and tactfully refrained from citing the reasons behind it. The White House had considered two possible dates for the visit to Kyiv: in mid-July shortly before the G-8 summit, or in the fourth week of June on the heels of the United States-European Union summit.

Bush ultimately set aside June 22 for Kyiv, but the chaotic political situation there made it inevitable for the U.S. president to change the plan on short notice; he will go to Hungary instead.

Bush's scrapped visit had been meant to demonstrate U.S. support for Ukraine's political and economic reforms, Euro-Atlantic orientation, and irreversible independence from Russia.

However, since late April Washington had made clear to Ukrainian President Viktor Yushchenko in increasingly urgent tones that the visit could not take place unless Ukraine had a functioning parliament and government by the time the U.S. president arrives.

Ukrainian mass media had reported that linkage all along. Apparently unmoved, Yushchenko and his circle persisted with stonewalling tactics in the negotiations over a parliamentary majority and formation of a government.

They bear the single largest share of responsibility for the institutional vacuum since the March 26 parliamentary elections.

In April 2005, the freshly elected Yushchenko's triumphant visit to the United States marked the zenith of hope in the Orange Revolution's potential to build viable state institutions in Ukraine.

Fourteen months later, the cancellation of Bush's visit marks a nadir in relations and in the crisis of Ukraine's state institutions as well. To be sure, the United States will not walk away from Ukraine and its problems.

But the Ukrainian presidency seems not fully aware of, or impressed by, the level of frustration in Washington.

In parallel with the discussions on the Bush visit, Yushchenko was discussing with the Kremlin the possibility of a visit by President Vladimir Putin to Ukraine -- an event that Yushchenko has long sought.

On June 9, reacting to the U.S. announcement, Yushchenko acknowledged that the absence of a functioning parliament and government had hindered both visits and stated that Kyiv would continue discussions on the matter with Washington and with Moscow in ways that "balance various considerations; this is the wish of the Ukrainian side".

Undoubtedly, the forced cancellation of the Sea Breeze and Tight Knot military exercises, which were gearing up to start in southern Ukraine in the first half of June, became a contributory factor in the scrapping of Bush's visit.

On June 7, the Verkhovna Rada missed the last possible opportunity to consider a bill that would have authorized the exercises. That failure, made inevitable by the Ukrainian presidency's ineffective handling of this issue, doomed Sea Breeze and necessitated the evacuation of some 250 U.S. Marines from the Crimea before they could accomplish their task to prepare that exercise.

The June 7 fiasco in Kyiv apparently helped trigger the June 8 decision in Washington to call off the visit.

Attending a NATO-Ukraine Commission meeting at defense ministers' level in Brussels on June 8, Ukrainian Defense Minister Anatoliy Hrytsenko regretfully announced that those two major exercises must be postponed because of the political situations in Kyiv and the Crimea.

According to Hrytsenko's account of the session, he told U.S. Defense Secretary Donald Rumsfeld that the active phase of Sea Breeze could still be held in July-August, assuming approval by the Ukrainian parliament.

Hrytsenko's assumption looked unrealistic, however. At that point, protest actions were in full swing in the Crimea against the Sea Breeze exercise, the United States, and NATO.

Protesters capitalized on the absence of a legal basis for the exercises. The entry of foreign military units on Ukrainian territory requires parliamentary approval in each case. Yushchenko had last submitted the necessary bill to the Verkhovna Rada in February, unsuccessfully.

From the March 26 elections to date, the presidency maneuvered to delay the start of the parliament's work; thus, there is no constituted parliament in Kyiv to approve the holding of these exercises.

Approval by parliament seems in any case more unlikely after the authorities unwittingly energized opposition to the exercises by attempting to hold them without a legal basis.

Source: Eurasia Daily Monitor

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Russia Strongarming Ukraine

PARIS, France -- When Donald Rumsfeld was asked at last week's NATO summit to comment on the situation of the American troops waiting to take part in the Sea Breeze exercises in Ukraine, he replied bluntly: "I can't comment on it. I haven't been involved in the details of it."

American Secretary of Defense Donald Rumsfeld

Technically, this was no doubt true. Details can be tricky things. But it stretches credulity that Rumsfeld would not have been pretty familiar with the deeper issue of Ukraine's bid to join the NATO alliance. The question will certainly come up in the scheduled summit meeting between presidents George Bush and Vladimir Putin ahead of next month's G8 meeting in St. Petersburg.

The 200 U.S. troops have now left Ukraine and the joint exercise has been "postponed" because Ukraine's parliament was too overwhelmed by the political crisis to vote the necessary authorization for foreign troops to operate on Ukraine soil. And that political crisis, along with the anti-NATO "riots" that greeted the American troops during their brief stay in the Crimea, play central parts in the unfolding drama.

The political coalition that brought about the democratic triumph of Ukraine's Orange Revolution has fallen apart, in part through the personal animosity between President Viktor Yushchenko and his former prime minister Yulia Tymoshenko. The president has most recently tried to cobble together a coalition with the socialists, the party with the fourth-largest number of votes in parliament after the March elections, but that plan failed when the socialists demanded the powerful post of speaker in parliament.

Now President Yushchenko's party is talking about a coalition with the pro-Russian Party of the Regions, led by Viktor Yanukovich, the very man the Orange Revolution rallied to block from becoming president. (His party won the second-largest number of votes.) And should that happen, Ukraine can probably forget the grand strategy to anchor the country definitively into the West by joining both NATO and the European Union, the plan that President Yushchenko declared was the crucial mission of the Orange Revolution.

The EU has been cool about Ukraine's prospects from the beginning, and with Romania and Bulgaria, Turkey and the Balkan states already lined up to proceed through the accession process, Ukraine is a long way down the EU's list of priorities. But joining NATO is a different matter, and Ukraine had been hoping to begin the formal accession process later this year at the next NATO summit in Riga. But after the cancelled Sea Breeze exercises and the anti-NATO demonstrations that met the American troops, hopes of progress at Riga now look unrealistic, even if Ukraine's government were sufficiently stable and in agreement to push NATO for an answer. This will come as a great relief to Russia.

"The accession to NATO of countries like Ukraine or Georgia will undoubtedly herald a colossal, geopolitical change," Russian foreign minister Sergei Lavrov told the Duma, Russia's parliament, last week.

And the Russians have been striving, through diplomatic, political and other more subtle means over the past year to prevent such a formal adherence of Ukraine to the West. Those anti-NATO protests were mounted by pro-Russian groups, and Russia's blunt cut of gas supplies to Ukraine over the winter served as a reminder that life could get very cold and bleak if Ukraine severed its traditional ties with Russia. Russia's official line, as stressed by Foreign Minister Lavrov, is that the choice is for Ukraine to make.

"Every country, including the countries of the former Soviet Union, is entitled to make sovereign decisions as to who their partners on the international arena will be, be it a state or an organization," Lavrov said.

"We consider these (formerly Soviet) states to be independent sovereign states and that is the basis on which we are developing our relations with them," Lavrov said, stressing that "the move to market principles of pricing in trade, including the trade in energy," is clear evidence of this.

"Needless to say, those of our neighbors who choose alliance partnership relations with Russia will benefit from this as is the case in any other part of the world where allies have privileged status," Lavrov went on.

The message to Ukraine was clear: energy will be cheap and plentiful so long as you stay within Russia's orbit. But join NATO and freeze.

Curiously, at the same time that this message was sent to Ukraine, the Russian Black Sea fleet was conducting joint anti-terrorism exercises with NATO in the Mediterranean, and its Baltic fleet was taking part in the Baltops 2006 exercise with NATO and Swedish warships. And in September, NATO Special Forces from the U.S. and Britain, France and Turkey will take part in joint exercises on Russian soil with the 76th Airborne Division near Pskov.

The Russian military values its special relationship with NATO, but Russian politicians and much of public opinion remain openly suspicious and even hostile to the old Cold War adversary. Last month, NATO and the Russian government jointly organized a 9-day public relations campaign in nine cities, from Kaliningrad on the Baltic coast to Vladivostok in the Far East, called "Russia-NATO: Pooling Efforts."

It went down like a lead balloon. The public stayed away from the exhibitions and lectures, and NATO speakers were pelted with hostile questions and faced angry crowds holding banners and posters that read "NATO the occupier" and "NATO is worse then the Gestapo" and "NATO out."

Where there were no NATO flags to burn, the demonstrators made do with burning American flags, according to the report in Russia's Nezavisimaya Gazeta. And we can be pretty sure that Russians burning American flags is one of those details on which Defense Secretary Rumsfeld most certainly gets briefed.

Source: UPI

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Turkish Coast Guard Seizes Contraband Weapons From Ukraine On British-Flagged Ship

ISTANBUL, Turkey -- Turkish coast guard officials have seized undeclared military cargo from a British ship that was heading from a Ukrainian port.


Eight of the detained crew are Ukrainian citizens, RIA Novosti reports.

On Monday, Turkish customs officials carried out a search of the British-flagged ship named ’Scan Bothnia’ at Derince port off the Istanbul coast and discovered a cargo of six all-purpose military armored cars, twenty cases of heavy caliber guns, ammunition and assorted spare parts.

The ship had been loaded at a Ukrainian port, and United Arab Emirates was declared as the destination of the cargo.

Ships passing through the Bosphorous are obliged by Turkish law to declare cargo of guns or other military equipment.

The ship has been detained at the Derince port for further investigation.

Source: MosNews

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Ukraine Waits On Shevchenko For Spain Opener

KAMEN, Germany -- Doubts over the fitness of Ukraine goal machine Andriy Shevchenko and question marks over Spain's strikers have dominated the build-up to Wednesday's clash between the two favourites to qualify from Group H.


Former European Footballer of the Year Shevchenko has been nursing a knee injury and his participation against Spain will remain in doubt until the last minute.

The 29-year-old scored as a substitute in Thursday's 3-0 warm-up win over Luxembourg and has looked sprightly in training but Shevchenko has suggested that he will not be fully fit until their second match against Saudi Arabia on June 19.

"I'm working with the squad and I'm feeling quite good," he said. "This period is important for me as I have to work to get in better shape, possibly not for the first match but for the ones after."

Coach Oleg Blokhin could delay a decision on whether the striker plays in Wednesday's game until as late as one hour before kickoff.

Spain come into the World Cup with the longest unbeaten run of the 32 finalists, having gone 22 games since their last loss and their preparations appear to have gone like clockwork but the jury is still out on the form of their forwards.

Captain and all-time leading goalscorer Raul looks headed for a place on the bench after failing to rediscover his touch since a serious knee injury while Fernando Torres, David Villa and Luis Garcia are favourites to start up front.

KILLER INSTINCT

The trio have, however, only managed one goal between them in three warm-up games and despite their undoubted class have yet to show the necessary killer instinct.

Argentine-born defender Mariano Pernia should start at left back just a week after his goalscoring debut in a friendly with Croatia, while Marcos Senna, Xabi Alonso and Xavi look to be the first choice midfield.

After a history of World Cup disappointments, Spain's more down-to-earth approach this time could be their trump card.

"Historically, we haven't achieved good results at the World Cup," says coach Luis Aragones. "It's hardly surprising that people don't have that much faith in us but the time has come to take it one game at a time and show how good we really are."

The 67-year-old is also keen not to underestimate his rivals even though they may be without their best player.

"Ukraine are not just Shevchenko," he said. "They have a lot of other class players and we will have a tough task stopping their counter attacks."

Opposite number Blokhin has been more bullish about his side's chances.

"Of course, with Shevchenko Ukraine are one team but without him they are a completely different one," he said. "Am I worried? It's the Spaniards who should be worried."

If Blokhin starts without his captain, Ukraine's most capped player Serhiy Rebrov could partner Olexiy Belik up front.

Probable teams:

Spain (4-3-3):

1-Iker Casillas; 15-Sergio Ramos, 5-Carles Puyol, 22-Pablo Ibanez, 3-Mariano Pernia; 16-Marcos Senna, 14-Xabi Alonso, 8-Xavi; 11-Luis Garcia, 9-Fernando Torres, 21-David Villa

Coach: Luis Aragones

Ukraine (4-4-2):

1-Oleksander Shovkovsky; 5-Volodymir Yezersky, 6-Andriy Rusol, 17-Vladislav Vashchyuk, 2-Andriy Nesmachny; 14-Andriy Husin, 4-Anatoly Tymoshchyuk, 8-Oleg Shelayev, 21-Ruslan Rotan; 11-Serhiy Rebrov, 20-Olexiy Belik

Coach - Oleg Blokhin

Referee: Massimo Busacca (Switzerland)

Source: Reuters

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Monday, June 12, 2006

Ukraine's Coalition Talks 'Fail'

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko's party has said talks to form the so-called Orange Revolution government have "no prospect" of succeeding.


Mr Yushchenko's party now may turn to its rivals

Our Ukraine (NU) party has been trying to form a coalition with the Socialists and the Yulia Tymoshenko bloc since the election in March.

But the NU said the Socialists' demand to be given the post of parliamentary speaker caused the talks to break down.

The three parties led the revolution in 2004 that swept Mr Yushchenko to power.

"In connection with the Socialist Party's ultimatums about the post of speaker... Our Ukraine notes that further talks on the formation of a coalition have no prospect of success," the NU said in a statement.

"Our Ukraine regrets that the personal ambitions of the socialist leader have destroyed the negotiations on the creation of a coalition," it said.

The NU emerged as the second strongest "orange" party after the 26 March election - behind the Tymoshenko block but ahead of the Socialists.

The three parties have reportedly agreed that Yulia Tymoshenko would lead the government in a new coalition, but the speaker's post remains a major obstacle.

Under constitutional changes that took effect earlier this year, the post of prime minister will carry substantially more weight than before.

Mr Yushchenko's options now include entering into coalition talks with Viktor Yanukovych, who was his rival during the Orange Revolution.

Mr Yanukovych's Regions' Party polled the most votes in the March poll - but not enough to form a government on its own.

Source: BBC News

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First Case Of Bird Flu Found In Ukraine

KIEV, Ukraine - Bird flu was found in a northeastern Ukrainian village, emergency officials said Monday, marking the first confirmation of the virus' spread beyond the country's Black Sea regions.


The virus was confirmed in the Sumy region, which borders Russia, and emergency workers planned to destroy more than 7,000 domestic birds, Emergency Situations Ministry spokesperson Ihor Krol said.

Krol said he had no information about what strain had been found, but Ukrainian media reported that it was the H5N1 strain, which is potentially deadly for humans.

A massive outbreak of the H5N1 strain hit Ukraine in December, but the cases were confined to the Black Sea peninsula of Crimea and other Black Sea regions. No human cases have been recorded in Ukraine.

Krol said the current outbreak was confined to the village of Pisky, which is located some distance from neighbouring towns. He said emergency officials were taking immediate steps to keep the outbreak isolated.

Bird flu has killed at least 128 people worldwide since it started ravaging Asian poultry farms in late 2003. So far, most human cases have been linked to contact with infected birds.

Source: AP

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US War Games In Doubt Amid Ukraine Turmoil

KIEV, Ukraine -- US reservists preparing for war games in Ukraine left the ex-Soviet state yesterday amid protests and political uncertainty, casting doubt on whether the exercises would take place.

Port of Sevastopol

Small but noisy groups of pro-Russian protesters have hounded the 200 US servicemen during their stay in the Crimea peninsula to prepare for the Sea Breeze 2006 exercise in July.

Television showed them leaving their base in a convoy of buses, with clutches of protesters shouting “Yankee go home!”

Parliament must approve the presence of foreign troops for the exercises to proceed as part of pro-Western President Viktor Yushchenko’s long-term plan to join Nato (North Atlantic Treaty Organisation) – a notion denounced by giant northern neighbour Russia.

But parliament is paralysed by slow-moving talks to form a coalition government since an inconclusive election in March.

“The US reservists were to come here for three weeks. This period has elapsed and they are returning home to their factories and hospitals,” Andriy Lysenko, defence ministry spokesman, told Reuters. “Unfortunately, the men were unable to complete the work that they were assigned.”

The failure to clinch a coalition agreement by the three parties that backed Yushchenko in the 2004 “Orange Revolution” that brought him to power has halted much political activity.

A proposed visit by US President George W Bush was put off and Ukrainian-British exercises in June have been postponed.

But Lysenko said that he hoped parliament, in recess to allow coalition talks to proceed, could resolve the issue to give the go-ahead for Sea Breeze.

“The exercises are not due to open until July 16 and there is still time,” he said. “The Defence Ministry hopes the issue can be raised and a law passed at parliament’s first sitting.”

Yushchenko is pledged to integrating Ukraine in the West and joining the European Union and Nato, the latter as soon as 2008.

His election has done little to resolve Ukraine’s traditional split into central and nationalist western regions who favour quick moves towards the West and its Russian-speaking east which wants to rebuild strong ties with Moscow.

But attitudes to Nato are less clear-cut – though Ukraine has held joint exercises under alliance auspices since 1997. Eastern Ukraine and Crimea oppose Nato, but western regions are no more than lukewarm on the issue.

Russian television has given blanket coverage to protests in Crimea, where Russia’s Black Sea Fleet is based and most residents are ethnic Russians sympathetic to Moscow.

Protests were rarely more than a few hundred-strong, but the reservists were mostly confined to a holiday base and spent much of their time clearing beaches and upgrading a soccer field.

Besides local protests in Crimea, the planned exercises also triggered reaction from Moscow, which warned the US and Nato not too push too hard to bring Ukraine into the fold.

Ukrainian authorities say that Russians have taken part in the protests, in violation of Ukrainian law. A leading Ukrainian weekly has said that the demonstrations have been masterminded by the Russian special security services, the FSB, formerly KGB.

On Thursday, up to 2,000 anti-Nato demonstrators protested outside the lodgings in Feodosia of the US reservists.

While preparations for the Ukrainian-US manoeuvres were continuing, they would be held “only after adoption of a law” authorising these and other international military exercises planned to be held by the end of the year, Ukrainian Defence Minister Anatoly Gritsenko said this week.

On Wednesday, Russia issued a sharp warning to the US and ex-Soviet republics looking to join the Nato alliance, saying expansion of the bloc into lands the Kremlin considers its backyard would have a “colossal” and negative impact.

The lower house of the Russian parliament, the Duma, also overwhelmingly approved a “message” to the parliament of Ukraine expressing the “serious concern” of the Russian legislature at Kiev’s goal of joining Nato and saying this would violate treaty agreements between the two countries.

The contentious atmosphere in Ukraine has led to the postponement of another joint military exercise between Ukraine and Britain.

The Ukrainian defence ministry said on Thursday that “in the current situation” Kiev and London had decided “unfortunately” to postpone manoeuvres which were scheduled to start June 12. No new date has been set.

Earlier yesterday, Ukraine’s navy said that the planned military exercises may still take place.

“The holding of the exercises Sea Breeze 2006 will be decided by parliament”, which will consider the matter on June 14, Navy spokesman Volodymyr Bova said.

The Sea Breeze 2006 exercises were designed to strengthen ties between the pro-Western government in Kiev and the Nato.

However the Crimean peninsula, an autonomous region with Ukraine, has pro-Russia leanings as it has been the homebase of the Russian Black Sea fleet at Sebastopol since its creation by Catherine the Great in the late 18th century.

It was transferred to Ukraine in 1954 by then-Soviet leader Nikita Khrushchev but remains populated largely by Russians.

Source: Reuters

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U.S. Reservists Pull Out Of Ukraine

KIEV, Ukraine -- U.S. marines began leaving Crimea on Sunday following two weeks of protests by Communists and demonstrators from pro-Russian parties that prevented them from carrying out repair work at a Ukrainian training base and rattled the nation's still-unformed government.


U.S. Marines muster near buses in Feodosiya as they begin leaving the Crimea, Ukraine, Sunday, June 11, 2006, in this image from television. Daily demonstrations by pro-Russian parties and the Communists have been held on the Crimea since the May 27 arrival of a ship that brought U.S. reservists and equipment to repair a training base. Demonstrators accuse NATO and the United States of seeking a foothold in the ex-Soviet republic.

The protesters declared victory, having staged daily demonstrations since the arrival on May 27 of a ship that brought the U.S. reservists and equipment to repair the base in connection with planned military exercises.

Protests rarely consisted of more than a few hundred demonstrators, but the reservists were mostly confined to a holiday base and spent much of their time clearing beaches and upgrading a soccer field. Officials said they were advised against going into nearby towns for fear of provoking noisy confrontations.

Demonstrators accused NATO and the United States of seeking a foothold in the former Soviet republic.

Russian television broadcast footage of several dozen flag-bearing protesters shouting "Yankee Go Home!" as buses apparently carrying the Americans began pulling out of the site where they had been staying.

American and Ukrainian officials said that the 200 U.S. reservists began leaving the region on Sunday and that they were leaving because their contract was ending. "We're very disappointed that they didn't fulfill what was planned," a U.S. Embassy spokesman, Brent Byers, said in televised comments dubbed into Russian. "But I want to emphasize there was no talk of founding a NATO base in the Crimea. These were only joint exercises."

Many in Ukraine, particularly in the Russian-speaking south and east, remain hostile to NATO. Russia warned that relations between the neighbors would suffer if Ukraine joined the alliance.

The head of the National Security and Defense Council said the Sea Breeze exercises would be held as a Ukrainian-only maneuver if Parliament did not approve President Viktor Yushchenko's request for foreign troops to be on Ukrainian territory. Twelve nations had been scheduled to take part.

Defense Minister Anatoliy Hrytsenko blamed unnamed political forces for organizing the protests and accused them of trying to "gain revenge with these extremist actions."

Yushchenko's political opponents have been energized by his party's humiliating third-place finish in March parliamentary elections and the ensuing difficult talks to put together a new governing coalition.

Yushchenko has made NATO membership a top priority since his 2004 presidential campaign, and in the coalition talks that have dragged on for weeks he has been pushing for potential partners to commit to that goal.

The continuing uncertainty over forming a new government - along with the protests, which have been prominently covered by Russian media - led to President George W. Bush's putting off a visit to Ukraine scheduled for later this month.

Source: International Herald Tribune

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Sunday, June 11, 2006

Book About Tymoshenko Published In Lithuania

VILNIUS, Lithuania -- In June, the book on the life of Yulia Tymoshenko (written by German journalist Dmitry Popov and his Russian colleague Ilya Milstain), previously available in Germany and Russia, is published in Lithuania.

Cover of the book released in Lithuania

One thousand of the book’s copies are printed by Kitos Knygos publishing house, says the authors’ agent Galina Dursthoff.

“We have found this book well written and interesting from the point of post-Soviet political processes’ phenomenology,” said the Lithuanian publisher Gediminas Baranauska.

He expects the book to be liked by a Lithuanian reader. Earlier, it made huge impact on the European press, being the first book about Ukrainian politician published in West. Of all the Eastern Europe politicians, beside to Yulia Tymoshenko only Mikhail Gorbachev was the subject of similar interest.

“There is an interest in Ukraine’s political process in Lithuania”, stressed Gediminas Baranauskas, adding that in the publishers’ opinion, Yulia Tymoshenko is a “bright political character”.

Recently, the book’s publishing rights were sold to two more countries, France and Poland. It is expected to hit the stalls there in autumn.

According to Galina Dursthoff, the authors and publishers are hoping for the book to be a success. In France it will be published in 5 thousand copies at least, by Noir sur Blanc publishing house. In Poland it will be published by Wydawnictwo Literackie.

Vera Mikhalski, the book’s French publisher, is positive that this notable Ukrainian woman-politician provokes certain curiosity from the French public. “Yulia Tymoshenko, elegant lady, often dressed in French couture clothes, appeals to the French public that knows very little about the ‘new Europe’,” she says.

Besides, Vera Mikhalski expects Yulia Tymoshenko to “play a major role in the future of your country”.

Source: Tymoshenko Website

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U.S. Military Leave Ukraine After Mass Anti-NATO Protests

CRIMEA, Ukraine -- About 200 U.S. reservists, whose arrival in Crimea in southern Ukraine sparked anti-NATO protests, will leave by Monday, but planned military exercises may still take place, Ukraine’s navy quoted by AFP has said.


“Half of them (reservists) are in the process of taking buses to Simferopol from where they will take a plane and return to their country,” navy spokesman Volodymyr Bova said.

“The other half will follow tomorrow (Monday).”

He said that the decision had been taken because the “reservists’ contracts had expired” and that it did not mean the cancellation of the upcoming NATO military maneuvers in Crimea.

“The holding of the exercises Sea Breeze 2006 will be decided by parliament,” which will consider the matter on June 14, Bova said.

Several dozen anti-NATO demonstrators had gathered in front of the building where the U.S. reservists were staying to observe their departure, he added.

The Sea Breeze 2006 exercises were designed to strengthen ties between the pro-Western government in Kiev and the North Atlantic Treaty Organization (NATO).

However the Crimean peninsula, an autonomous region with Ukraine, has pro-Russia leanings as it has been the homebase of the Russian Black Sea fleet at Sebastopol since its creation by Catherine the Great in the late 18th century.

It was transferred to Ukraine in 1954 by then Soviet leader Nikita Khrushchev but remains populated largely by Russians.

Besides local protests in Crimea, the planned exercises also triggered reaction from Moscow, which warned the United States and NATO not to push too hard to bring Ukraine into the fold.

Ukrainian authorities say that Russians have taken part in the protests, in violation of Ukrainian law. A leading Ukrainian weekly has said that the demonstrations have been masterminded by the Russian special security services, the FSB, formerly KGB.

On Thursday, up to 2,000 anti-NATO demonstrators protested outside the lodgings in Feodosia of the U.S. reservists.

While preparations for the Ukrainian-U.S. maneuvers were continuing, they would be held “only after adoption of a law” authorizing these and other international military exercises planned to be held by the end of the year, Ukrainian Defense Minister Anatoly Gritsenko said this week.

On Wednesday, Russia issued a sharp warning to the United States and ex-Soviet republics looking to join the NATO alliance, saying expansion of the bloc into lands the Kremlin considers its backyard would have a “colossal” and negative impact.

The lower house of the Russian parliament, the Duma, also overwhelmingly approved a “message” to the parliament of Ukraine expressing the “serious concern” of the Russian legislature at Kiev’s goal of joining NATO and saying this would violate treaty agreements between the two countries.

The contentious atmosphere in Ukraine has led to the postponement of another joint military exercise between Ukraine and Britain.

The Ukrainian defense ministry said Thursday “in the current situation” Kiev and London had decided “unfortunately” to postpone maneuvers which were scheduled to start June 12. No new date has been set.

Source: MosNews

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Ukraine's Former Orange Revolution Allies Break Off Coalition Talks

KIEV, Ukraine -- Ukraine's former Orange Revolution allies have broken off coalition talks after becoming deadlocked over who would become parliamentary speaker, the party of President Viktor Yushchenko said Saturday.

Yulia Tymoshenko (R) with coalition members

The negotiations had dragged on for weeks after no party managed to win a majority in March parliamentary elections in this former Soviet nation _ and the powerful pro-Russian opposition hailed the impasse as a proof of its right to enter government.

Our Ukraine spokeswoman Tetyana Mokridi said the negotiations failed because of the Socialists' insistence on getting the parliamentary speaker's job.

"The talks were stopped because of the Socialists' position," Mokridi said.

Yushchenko has also been reluctant to concede the key prime minister's post again to his former ally-turned-rival, Yulia Tymoshenko.

But later in the day, during his weekly radio address to the nation, Yushchenko accepted that Tymoshenko's party had a right to nominate the premier because it won the second most votes after the pro-Russian opposition Party of the Regions.

Our Ukraine lawmakers have said that in that case, the speaker's job should fall to the party with the next best performance in the election _ Yushchenko's _ rather than the fourth-placed Socialists.

Tymoshenko claimed that Our Ukraine's refusal to concede the speaker's job was an excuse to quit the coalition talks and make a deal with Party of the Regions.

"The speaker's post was just a pre-planned tactic to move to forming a different coalition with other political forces," she said.

Tymoshenko vowed to go into opposition if Our Ukraine forms a coalition with the Party of the Regions, saying that would be "a major betrayal of national interests."

Yushchenko, a one-time opposition leader, came to power in January last year in the wake of the Orange Revolution protests over fraud in the 2004 presidential election.

But his pro-Western Orange coalition split and he fired the charismatic Tymoshenko last year. His government has become unpopular because of political infighting and disillusionment at the poor economic situation.

The Party of the Regions, led by Viktor Yanukovych, the man whose fraud-tainted victory in 2004 led to the Orange Revolution protests, has insisted that it should be in government and accused Yushchenko of leaving the country rudderless during the coalition talks.

"This is the logical end," said Anna Herman, spokeswoman for the Party of the Regions.

She expressed her party's confidence that a "broader coalition" will be formed. "I am sure that both pro-presidential forces and the Regions will found a common language," Herman said.

Mykola Rudkovsky, a top lawmaker from the Socialists, said he was "surprised" at the end of the talks. "We did our best" to help the Orange team unite and "needed only a few key positions," he said.

Analysts have suggested that Yushchenko could find it easier to swallow offering his former presidential opponent a share of power than Tymoshenko, because of deep personal rivalry between the former allies.

Such a move, although deeply controversial, could help to heal the divisions between the Ukrainian-speaking west and largely Russian-speaking east of the country, where Yanukovych has his power base.

"It's a little bit early to consider the (Orange) coalition buried," said political analyst Volodymyr Fesenko, adding that there is still a slight hope for them to find a compromise.

"But if so, the Party of the Regions will emerge on the stage," he said. He suggested that Yanukovych's party might form a majority with either the Socialists or with Our Ukraine.

The parties have until June 27 to form a governing coalition, after which Yushchenko has the right to dissolve parliament and order new elections. However, the Constitution does not oblige him to do so and the current acting government could stay in place.

Source: AP

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Saturday, June 10, 2006

Ukraine President Demands Action

KIEV, Ukraine -- President Viktor Yushchenko said his former ally Yulia Tymoshenko was entitled to become Prime Minister again, but added it was up to her to end bickering among liberals and quickly form a government.


Viktor Yushchenko (L) and Yulia Tymoshenko

Speaking after parties backing the 2004 "Orange Revolution" failed in a new bid to produce a coalition government, the president said Ukraine had been plunged into a political crisis which had to be quickly resolved.

It was logical, he said, for Ms Tymoshenko to be restored to the job of Prime Minister, from which he sacked her last year, as she led the liberal group with the most seats after a March election.

"I believe that the politician seeking to become prime minister must take responsibility for creating a coalition," he said in a radio address.

"The results of the election show that the people are prepared to give the orange team a second chance. But the people also demand greater responsibility and greater effort in seeking compromise and reaching agreements."

Liberal parties behind the 2004 revolution against election fraud, which propelled the pro-Western Mr Yushchenko to power, have been locked in talks on forming a government since the poll.

The main stumbling bloc has been Mr Tymoshenko's insistence on being restored as premier and the president's reluctance to see her back in the job.

Mr Yushchenko dismissed her eight months into her mandate at the head of a government riven by infighting. New constitutional rules have cut the president's powers and give parliament the job of choosing the premier, but he still plays a key role.

The new parliament met for the first time in late May, but has gone into recess twice to allow talks to continue.

Mr Yushchenko blamed the deadlock on "plain old negotiating over jobs" and "political irresponsibility of big party chiefs".

There would be no new elections, he said.

Source: Reuters

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Cement Giant Lafarge Building New Ukraine Plant

LVIV, Ukraine -- French cement and construction materials giant Lafarge has launched the building of a 30-million-euro ($38 million) plasterboard and dry construction mixes factory in Artemivsk, Donetsk Region.


Lafarge, which has a strong presence on Ukraine’s cement market through its majority holding in a cement factory in Lviv Region, hopes the new factory, scheduled to begin operations in early 2007, will help the group boost its presence on Ukraine’s promising construction materials market.

The French company, which claims to rank among the top three world players in the cement, roofing, concrete and gypsum businesses, has had to import plasterboard and dry construction materials, mostly from production factories in Poland, a company official said.

In a statement, Lafarge explained that its plasterboard and construction mix business in Ukraine took off in 2000, after the acquisition of a construction materials company called Stromhips, in Artemivsk.

Construction of the new factory, located at the same site, was officially launched at a ceremony on March 27. The company expects the new factory to have an initial annual capacity to produce 15 million square meters of plasterboard and 40,000 tons of construction mix. Capacity will later be doubled.

Natalia Bilyk, a spokesperson at Lafarge Gips’ office in Kyiv, said her company sold about 6 million tons of materials last year, adding that the leader on the Ukrainian market has been German competitor Knauf. Bilyk estimated that Knauf controls about 60 percent of the plasterboard and construction materials mix market in Ukraine.

Knauf has a plasterboard and construction mix factory in Kyiv region and is currently building a 50-million-euro factory in Donetsk Region, too.

Knauf bought the Kyiv-based Budmak plant in 1998, revamping it into Ukraine’s largest producer of plasterboard. The factory has the capacity to produce more than 22-24 million square meters of plasterboard.

About 150 Ukrainians will be employed at Lafarge’s new factory in Donetsk.

Lafarge employs a total of 80,000 people in 76 countries and posted 16 billion euros in sales last year.

Lafarge already has a strong foothold on Ukraine’s cement market through its ownership of the Mykolayiv Cement Factory, located in Mykolayiv, Lviv Region.

Analysts say Ukraine has 16 cement factories capable of producing a total of about 24 million tons of cement per year, but they are currently operating at only a fraction of this capacity.

Several foreign cement conglomerates are active on the Ukrainian cement market.

Germany’s Dyckerhoff Zement International holds controlling shares in three local cement manufacturers: Kyivcement and Pivdencement, based in Mykolayiv

Region, and Volyncement, based in Rivne Region.

Heidelbergcement Group, also from Germany, controls Kryvy Rih Cement and Dniprocement.

Russia’s Eurocement controls Ukraine’s Baltsem And Pushka factories.

Source: Kyiv Post

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World-Ukraine Squad Land In Germany, Coach Upbeat

BERLIN, Germany -- Ukraine's squad touched down at Berlin's Tegel Airport on Friday, the last of the 31 visiting World Cup teams to arrive on German soil.

Ukraine's national soccer team leave the plane after arriving at Berlin airport Friday, June 9, 2006. The team arrive for upcoming Soccer World Cup in Germany.

Coach Oleg Blokhin was upbeat after a 3-0 warm-up victory over Luxembourg on Wednesday in which captain Andriy Shevchenko scored as a second-half substitute in his first game after a month out with a knee injury.

"The mood in the squad is perfect," a relaxed-looking Blokhin told reporters as the players boarded a coach for the short trip to their base in nearby Potsdam.

Shevchenko, wearing sunglasses, greeted Italian journalists as he walked from the aircraft to the coach but declined to answer any questions.

The 2004 European Player of the Year featured for 30 minutes against Luxembourg but Blokhin said it was too early to give the striker a clean bill of health.

World Cup debutants Ukraine open their Group H campaign on Wednesday against Spain in Leipzig. Tunisia and Saudi Arabia are also in Group H.

Source: Reuters

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Planned Joint NATO-Ukraine Exercises In Crimea Create Political Uproar

CRIMEA, Ukraine -- Joint military exercises between NATO and Ukraine have been postponed after the landing of a U.S. naval ship in the Crimean peninsula touched off a firestorm of local protests.

People take part in a protest sparked by the arrival of a group of U.S. Marine reservists somewhere at the entrance to the Feodosiya port on Crimean Peninsula, Ukraine. Russian national flags in white, blue, and red colors and red flags of former Soviet Union are seen in the background.

The political fallout soon spread to Ukraine's federal government and neighboring Russia, which has issued a stark warning to the United States and NATO.

June is the month when people from all across the former Soviet Union head for Ukraine's Crimean peninsula on the Black Sea to enjoy holidays on the beach.

But beachgoers this year are encountering more than sea and surf in Crimea, as crowds of protesters have taken to the streets of several towns to protest against a series of military exercises involving NATO troops.

Most of the people in Crimea are ethnic Russians who are wary of the NATO alliance and the United States.

People take part in a protest sparked by the arrival of a group of U.S. Marine reservists somewhere at the entrance to the Feodosiya port on Crimean Peninsula, in this Thursday, June 1, 2006, photo

The protests started in the port city of Feodosiya where a U.S naval vessel docked in late May to unload equipment intended to help upgrade a Ukrainian military base.

At one point protesters blocked U.S. military personnel from reaching the base.

Demonstrations soon spread to other towns, as many protesters camped out on the streets and vowed not to move until the NATO forces leave.

A lady says she is prepared to stay on the picket line as long it takes, because NATO troops do not belong in Ukraine.

The military maneuvers were due to last from mid-June until early August, and most of the troops taking part are from the United States and Great Britain.

But Ukrainian officials say the first stage of the maneuvers with British troops has been postponed.

The U.S. embassy in Ukraine issued a statement denying protester's claims that NATO has plans to establish a permanent base in Crimea.

But this did little to appease the regional parliament there, which passed a resolution demanding that the exercises be called off, something rejected by Ukrainian President Viktor Yushchenko.

In Kiev, Mr. Yushchenko denounced the Crimean vote, saying that the foreign troops had been invited by his government.

The protests are led by pro-Russian parties in Crimea including the Communists, and reflect the historical divide in Ukraine as a whole.

President Yushchenko came to power in the so-called "Orange Revolution" late in 2004 and has set a goal for Ukraine to join both the NATO alliance and the European Union, something that may be years away.

But this matters little to people in the predominantly Russian eastern half of Ukraine, who strongly oppose Mr. Yushchenko's tilt toward the West.

The president has been further weakened by his party's poor showing in a March parliamentary election, when the main pro-Russian party came in first.

Talks aimed at forming a coalition between Mr. Yushchenko and two other pro-Western parties have stalled, leaving a power vacuum in the country.

This has had repercussions in the national parliament, where disagreement over the NATO issue led to scuffles between deputies from opposition parties and the speaker.

Russia has gotten into the act as well, amid signs the Kremlin is again angered by what it sees as Western attempts to meddle in its "backyard."

Foreign Minister Sergei Lavrov took things one step further, telling the Russian parliament that expanding NATO into ex-Soviet republics such as Ukraine would have a "colossal" geopolitical impact.

He later accused the United States of planning to introduce new weapon systems into the region, violating arms control agreements by "removing disarmament from public view".

Russia is particularly sensitive about Crimea given that it has been home to the Black Sea naval fleet for more than two centuries.

Russia and Ukraine agreed to divide the fleet between them in the early 1990s after tense negotiations, and Moscow now pays rent to Ukraine to maintain its forces there.

The root of the problem is that many Russians feel Crimea really should be in Russia, as claimed in a strongly-worded speech by parliament deputy Sergei Baburin.

Crimea was part of Russia for centuries, but in 1954 Soviet leader Nikita Khrushchev "gave" the strategic peninsula to Ukraine to mark 300 years of what he called "pan-Slavic brotherhood".

At the time no one thought the two nations would one day be separated. And most Russians have never accepted that their cherished land of sun and surf is part of a different country that now wants to take a new political course.

Source: Voice Of America

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Friday, June 09, 2006

Russia And The West Appear Set To Clash Over Ukraine

WASHINGTON, DC -- The Kremlin and the West have ratcheted up their rhetoric over NATO’s possible expansion into Ukraine.

The Kremlin

The strategically located East European state appears destined to remain an apple of discord between an increasingly assertive Moscow and the Western powers. At stake are the intertwined issues of identity, geopolitics, and energy security.

The title of the international conference organized this week by the Vienna-based Osterreichisches Institut fur Internationale Politik -- “The Battle for Ukraine” -- seems to neatly encapsulate the nature of the brewing geopolitical standoff.

On June 7, Russian Foreign Minister Sergei Lavrov told the State Duma that NATO membership for Ukraine or Georgia would lead to a “colossal” shift in the global geopolitical balance. Moscow, the top Russian diplomat added, would evaluate all possible consequences “first and foremost” from the point of view of the national interests of Russia.

For its part, the Duma the same day overwhelmingly approved a “message” to the Verkhovna Rada, Ukraine’s parliament, expressing the “serious concern” of the Russian legislature at Kyiv’s goal of joining the Western alliance.

According to the message, Ukraine’s drive to join the North Atlantic Treaty Organization is a violation of a 1997 Russia-Ukraine treaty that outlines the “strategic nature” of Russian-Ukrainian relations and, if fulfilled, “would have negative consequences for the entire range of relations between our two fraternal peoples.”

The statement specifically noted that “close interregional relations unite [Russia] with the Autonomous Republic of Crimea,” where pro-Russian forces have been blocking preparations for joint Ukrainian-U.S. military exercises.

Russia’s clear intent to step up pressure on Kyiv did not pass unnoticed by Western policymakers. NATO Parliamentary Assembly President Pierre Lellouche slammed the statement by the Russian foreign minister.

Lellouche told the BBC’s Ukrainian service that Lavrov’s assertion reflected a contradictory position. Indeed, the NATO-Russia agreement of 1997 recognized the right of each European country to choose its allies and decide which organizations to join.

It was no novelty for the West that Russia is against NATO’s eastward expansion. But it was unclear, the NATO officials say, how Russia could seek to prevent Ukraine and Georgia from joining NATO without resorting to Cold War methods.

Lellouche argued that it would be impossible to build another empire within the borders of the former Soviet Union but noted that it is exactly the emergence of such an empire that would mark a true geopolitical shift.

The Western wariness of Russia’s strategic designs is well understood. However, one has also to clearly understand why Moscow feels it is the right moment to launch a massive offensive on the Ukrainian front.

It is important to remember that the bulk of the Russian policy elite never believed that Ukraine’s pro-Western course was firmly sealed with the 2004 Orange coalition electoral victory. Most Russian policymakers and analysts always warned there would be a second round of struggle over Kyiv’s geopolitical orientation.

It is the continuous indecision of Ukraine’s President Viktor Yushchenko and the endless haggling over the government portfolios among the hapless partners within the Orange camp that resulted in the current situation whereby Ukraine lacks a properly functioning parliament, a viable government, and an operational Constitutional Court.

The institutional weakness created by Kyiv’s flawed domestic policies simply invited the Kremlin strategists to launch their all-out attack.

Russia has a two-pronged strategy in Ukraine. Its first aim is to discredit the Orange politicians in the eyes of the West. By actively supporting the massive anti-NATO rallies in Ukraine’s eastern and southern regions, Moscow is fanning the inner divisions within Ukrainian society.

Russia seeks to portray its Slavic neighbor as a badly split, geopolitically confused, and thus inherently unstable nation. As the majority of Ukrainians negatively view the prospect of their country’s joining the Atlantic alliance, Russian pundits argue, further confrontation is inevitable -- a development that would only aggravate the existing divide between the supporters and the opponents of integration with the West.

If the United States and the European Union continue to encourage official Kyiv’s pro-Western proclivities, in particular, its Euro-Atlantic aspirations, one Russian policy paper asserted recently, the result would likely be the emergence of a new “arc of instability” along the Russo-Ukrainian border.

If this comes to pass, the paper adds, it will be the end of the alliance of global powers against new threats -- including Russia’s cooperation with the West in the war against terror.

Second, the Kremlin wants to maximally strengthen the hand of the political forces within Ukraine that it believes are Russia’s strategic allies. If they manage to impose their scenario of a coalition government on a politically enfeebled Yushchenko, Moscow’s geopolitical interests would be much better protected.

Remarkably, at the heart of the Kremlin’s strategic concerns are the interests of Russia’s major energy monopolies, starting with Gazprom. It cannot be a mere coincidence that this week Gazprom managers raised the issue of a possible price increase for the natural gas Ukraine receives from Russia: the compromise reached between Moscow and Kyiv in January expires at the end of June. Price hikes for the former Soviet republics are Gazprom’s weapon of choice to penetrate neighboring countries’ energy industries.

Gazprom has long eyed Ukraine’s export infrastructure, but so far Kyiv has been adamant in its reluctance to cede valuable assets to Russia’s energy giant.

The issue of energy security appears to be intimately linked with Ukraine’s possible membership in NATO and will likely be at the epicenter of the ongoing geopolitical tug-of-war over Ukraine between Russia and the West.

According to one high-profile Western analyst, if Ukraine hands over control of its network of oil and gas pipelines or loses ownership of this network, the Western allies will be very concerned.

They might question Ukraine’s ability to defend its primary interests, the Western pundit argues, since the oil and gas systems are a guarantee of Ukraine’s independence.

Source: Eurasia Daily Monitor

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Britain Postpones Joint Maneuvers With Ukraine Over Anti-NATO Protests In Crimea

LONDON, UK -- Great Britain and Ukraine decided to postpone the joint “Tight Knot” exercise as Ukrainian parliament has not permitted the presence of foreign troops in the national territory following massive anti-NATO protests in Ukraine’s Crimea.


The unprecedented exercise, involving 150 Royal Air Force personnel, was to begin next week near the port of Nikolayev.

A spokesman of the British Department of Defense said on Thursday that plans to hold the exercise had not been cancelled altogether, but it was unclear when the exercise would take place.

According to the spokesman, bilateral military cooperation with Ukraine will continue.

Following massive anti-NATO protests in Crimea, the Ukrainian parliament retreated from discussing the issue on Wednesday and postponed the decision on whether to allow foreign troops onto the Ukrainian territory for a week.

Source: MosNews

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Shevchenko Return Lifts Ukraine

NYON, Switzerland -- Ukraine captain Andriy Shevchenko scored on his return from injury against Luxembourg on Thursday to give his side a timely boost going in the FIFA World Cup.

Ukraine's Andriy Shevchenko has been given something to smile about

Shevchenko goal

Shevchenko came on as a substitute on 60 minutes and tapped in with seven minutes remaining, doubling Ukraine's lead after Andriy Voronin had put Oleh Blokhin's side ahead ten minutes after the interval.

Maxim Kalinichenko's late strike completed a comfortable 3-0 victory. The introduction of Shevchenko and Voronin, also a second-half substitute, visibly lifted Ukraine after an insipid opening half at the Stade Jose Barthel.

Spain test

Shevchenko, 29, has missed much of Ukraine's preparations, including friendly wins against Costa Rica, Libya and Italy, since injuring his knee last month while playing for AC Milan.

He joined Chelsea FC last week in a transfer reportedly worth €45m. Ukraine kick off their World Cup campaign against Spain next Thursday, before completing their Group H fixtures against Tunisia and Saudi Arabia.

Source: UEFA

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Exercises, NATO Issue Stir Turmoil In Ukraine

KIEV, Ukraine -- Ukraine's main opposition party, sympathetic to Russia, said on Thursday pro-Western President Viktor Yushchenko was plunging the country into chaos by seeking NATO membership in the face of public resistance.

Opposition Regions Party leader Viktor Yanukovich

Officials announced they had to postpone the "Tight Knot 2006" exercises with Britain, one of a series of such events in the coming months, because a political stalemate that meant parliament could not approve the war games.

Small but noisy protests over another exercise -- involving U.S. reservists in Russian-speaking Crimea -- have meanwhile underlined how divisive an issue NATO is for Ukraine.

The presence of foreign troops must be approved by the assembly, embroiled since a March election in talks between bickering liberal parties on forming a new coalition government.

Yushchenko, elected after 2004 "Orange Revolution" protests, is committed to moving Ukraine toward the West and seeking membership of the European Union and of NATO -- the latter as early as 2008. But Russia this week denounced any such notion.

"Ukraine's statehood is under threat," opposition Regions Party leader Viktor Yanukovich told reporters in Kiev. "Ukraine is in the grip of destabilization and political crisis."

Ukraine has held joint exercises with Western countries under NATO auspices since 1997.

But the Regions Party, in danger of being shut out of the new government, has led protests in the Crimea peninsula since the arrival last month of U.S. experts and equipment for a set of exercises planned in July.

About 1,500 protesters massed on Thursday in Feodosia port, focal point of rallies shown regularly on Russian television.

Yevhen Kushnaryov, a top Regions Party leader, vowed to block all parliamentary activity until the assembly investigated the presence of U.S. men and equipment in Ukraine. He called for the resignation of both the foreign and defense ministers.

"Attempts to speed up the process of drawing Ukraine into NATO are aimed at once and for all at tearing Ukraine away from Russia," he told the chanting crowd.

East-West Split

Yushchenko's election has done little to resolve Ukraine's traditional split into central and nationalist western regions favoring quick moves toward the West and its Russian-speaking east wanting to rebuild strong ties with Moscow.

But attitudes to NATO are less clear-cut. While eastern Ukraine and Crimea oppose NATO, western regions are no more than lukewarm on the issue.

Yushchenko has complicated matters by insisting all three parties behind the 2004 revolution solve serious differences on distributing cabinet posts and adopt a common stand on NATO.

Russia's parliament stoked the row this week by denouncing Ukrainian membership of NATO. Foreign Minister Sergei Lavrov said NATO expansion to Ukraine and ex-Soviet Georgia would mean "a colossal geopolitical shift" against Kremlin interests.

NATO Secretary-General Jaap de Hoop Scheffer, speaking in Brussels on Thursday, regretted attempts at "making a political case out of an exercise that has been taking place for years."

He discounted Lavrov's comments, saying NATO's two waves of enlargement had "increased stability and security."

Yushchenko this week said Ukrainians needed more information to counter lingering "myths" about the alliance.

Analysts said the president had complicated his unsteady position by insisting on fast movement to NATO membership.

"NATO is truly unpopular among ordinary people and, with his own help there is now increasingly active opposition to it," said independent analyst Oleksander Dergachyov.

Source: Reuters

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Thursday, June 08, 2006

Russia Warns Kiev Over Nato Plans

KIEV, Ukraine -- Russia has warned Ukraine that relations between the two countries will be harmed if it joins Nato.

NATO Secretary General Jaap de Hoop Scheffer (C), gestures as he talks with Ukraine's Defense Minister Anatoliy Hrytsenko (L), during a meeting of NATO defense ministers at the alliance headquarters in Brussels, Thursday June 8, 2006.

MPs in the State Duma voted 435 to 0, with one abstention, for a resolution expressing "serious concern" over Ukrainian plans to join the alliance.

The message was sent as the parliament in Kiev was to have a vote - now delayed - on allowing in foreign troops ahead of joint manoeuvres with the US.

Nato has called on Ukraine to avoid politicising the exercise next month.

The joint exercises involving a number of Nato countries are due to start on 12 June in Crimea and 200 US marines have already arrived to help prepare facilities.

A Nato spokesman said the exercises were routine, but not organised by Nato.

"These are bilateral exercises between the US and Ukraine open to Nato allies and partners, but not organised by Nato or funded by Nato," James Appathurai told the AFP news agency.

The Ukrainian deputy chief of staff, Rear Admiral Ihor Knyaz, has said Russia itself has been invited to participate.

Pro-Russian demonstrators have picketed a US warship taking part.

The Ukrainian parliament postponed the vote on allowing in foreign troops until 14 June.

Delay

Pro-Western President Viktor Yushchenko, who has made joining Nato a top priority, had asked parliament to urgently grant permission for foreign troops to be on Ukrainian soil.

But co-operation has been difficult since MPs have been unable to form a coalition following a parliamentary election in March.

The BBC's Helen Fawkes, in Kiev, says that if the military exercises have to be cancelled because of the delay, it will be seen as a humiliating blow to the pro-Western authorities.

Mr Yushchenko's enthusiasm for joining Nato has angered many in the mainly Russian-speaking areas of Ukraine, like Crimea, who are opposed to the former Soviet republic joining the alliance.

For almost two weeks, there have been anti-Nato protests in the region, which is home to the Russian Black Sea Fleet, and hostility towards the Nato alliance is especially strong.

On Tuesday, the regional parliament declared Crimea a Nato-free zone. This was dismissed as meaningless by Ukraine's president.

Georgia warning

Pro-Russian political parties have backed the protests.

And Russia's State Duma seemed clear in its message to Ukraine's parliament on Wednesday.

"Ukraine's membership in the military bloc would have negative consequences for the entire range of relations between our two fraternal peoples," the Russian deputies said.

They expressed similar concern about Georgia joining the alliance.

"We have said more than once that every country has the right to take sovereign decisions on who will be its partner in the international arena," Foreign Minister Sergei Lavrov told the State Duma before the vote.

"At the same time, the acceptance into Nato of Ukraine and Georgia will mean a colossal geopolitical shift and we assess such steps from the point of view of our interests."

Source: BBC News

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NATO's Supporters, Opponents Prepare For Battle In Ukraine

KIEV, Ukraine -- When U.S. Marine reservists disembarked in this ex-Soviet republic, they expected a quick and simple mission: installing new showers and toilets at a military training facility, then leaving.


The 200 Americans could hardly have anticipated the anti-NATO blockades and protesters shouting "Occupiers go home!" that greeted them upon arrival.

The angry welcome in the Crimean port of Feodosiya - led by a radical pro-Russian party and the Communists - is widely seen as the opening volley in the battle over Ukraine's bid to join NATO, an issue now forced to the top of the nation's political agenda.

Analysts say President Viktor Yushchenko's opponents – and Moscow - have sensed the government's weakness after its party's humiliating, third-place showing in March parliamentary elections and drawn-out talks to put together a new government. They are seizing the chance to torpedo Kyiv’s hopes to receive a NATO invitation in 2008.

"The war for Ukraine has started," said Hrihoriy Perepelytsya, director of the Foreign Policy Institute of the Foreign Ministry's Diplomatic Academy. "What is happening in Feodosiya is just a piece of a more powerful anti-NATO campaign ... Clearly, the goal is to discredit Ukraine as a potential NATO candidate."

Yushchenko has made NATO membership a top priority ever since the start of his 2004 presidential election campaign, and has been pushing in the coalition talks for potential partners to commit to that goal.

His supporters argue that if Ukraine doesn't join NATO, Kyiv will inevitably slide back under Moscow's influence or risk being left in an unprotected no man's land between Russia and the West. NATO accession has also been billed as a first step toward the ultimate prize: EU membership, with its considerable economic advantages.

A key test is expected to come Wednesday, when the government tries to win parliamentary permission for foreign troops to be on Ukrainian territory. A victory would allow the Marines, who are biding their time at a Defense Ministry resort, to go ahead with their three-week project to refurbish the Stary Krym facility, which is slated to be used in a mid-July training exercise involving U.S. and other NATO members.

A defeat - or a failure to even get parliament to consider the measure - could force Ukraine to cancel its Sea Breeze exercise and five others, and send the Americans it invited home again. One exercise, involving British troops, was expected to start this weekend.

NATO has said its door is open to this nation of 47 million and appears bewildered by the hostility; the military alliance had been warmly embraced by other former Communist countries in Eastern Europe.

Recent opinion polls have found that only about 20 percent of Ukrainians support NATO membership. Many Ukrainians perceive the alliance as a threat and are puzzled over why their country - which, unlike some of its ex-Soviet neighbors, hasn't been torn by separatist conflicts – would willingly join a military alliance that could drag its sons off to war.

Fears persist that giving NATO a foothold here would irreversibly sour relations with Russia and turn Ukraine into an American stooge. Critics also say it would be to expensive to maintain NATO military standards.

"We should be spending our money on improving our own military rather than in taking on any new international obligations," anti-NATO politician Nestor Shufrych told NTN television.

Ukraine, located on the Black Sea and bordering Russia, would certainly be a strategic prize for NATO. NATO members such as the Baltic nations and Poland, who fear a resurgent Moscow, have been the strongest supporters of locking this nation into the Western camp.

NATO has launched 27 information stands across Ukraine, and invited lawmakers, religious leaders and cultural figures - even the 2004 Eurovision contest winner, Ruslana - to NATO headquarters in Brussels for get-acquainted sessions.

The Kremlin, meanwhile, has bristled at the prospect of its former Cold War foe arriving at its doorstep. The anti-NATO protests in Crimea have been given prominent coverage on Russian television, which is watched in many Ukrainian homes.

Russian lawmakers have flown in to express their solidarity, with some of Russia's more extremist politicians even floating the idea of pressing for Crimea to be returned to Moscow's control. City and district councils in Crimea, which has a large ethnic Russian population, have declared their regions NATO-free zones.

Crimea is home to Russia's Black Sea Fleet, based in the Ukrainian port of Sevastopol, about 160 kilometers (100 miles) away from where the Americans are waiting.

But NATO supporters note that Yushchenko does have some room to maneuver, particularly if he reaches out to the opposition Party of Regions, which unlike other pro-Russian parties insists it isn't hostile to NATO.

The party, dominant in Ukraine's Russian-speaking east and south, opposes NATO membership but points out that its leader, Viktor Yanukovych, had initiated efforts to deepen relations with NATO while prime minister.

"If the political course had not been changed and the policy toward deep cooperation with NATO had been continued, we'd have no objections at all," said party member Mykola Azarov, a former acting prime minister.

Source: AP

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Crimea Digs In Against Ukraine's Western Drift

FEODOSIYA, Ukraine — Ordinarily, June is the month when the tourists flock here from chillier points north, when families move into their storage rooms and stand at the train station holding "for rent" signs to let their apartments.

Feodosiya Bay

The rocky sand beach becomes dotted with jumbo bottles of Russian beer and plump, sunburned babushkas in swimsuits.

This spring, though, Ukraine's balmy Crimean Peninsula has seen more protest flags than beach umbrellas.

Arguments over preservation of the Russian language, protests by Tatars over land rights and reparations that blocked a highway, anti-NATO demonstrations at the port, and a tense showdown between Muslims and Christians over a statue of St. Andrew have cast a shadow over the debut of the tourist season, which has barely begun.

This week, the Crimean legislature voted against the continuing presence of President Viktor Yushchenko's representative in the autonomous region, terming it "inadmissible."

The move was a further sign, if any more were needed, of the monumental job Ukraine's leader faces in uniting a nation that in many ways remains as divided as it was when the Orange Revolution propelled him to power in early 2005.

As lawmakers in the Ukrainian capital, Kiev, announced Wednesday that they would need another week to try to build a coalition capable of naming a prime minister, speaker and Cabinet, more than 200 protesters marched through this historic old town on the Black Sea, vowing to oppose Yushchenko's plans to steer Ukraine toward NATO and the West and away from Russia.

"The truth is that an overwhelming majority of people residing in Crimea sympathize more with Russia than with Ukraine," said Sergei Tsekov, deputy speaker of the Crimean parliament. "I can tell you that the situation here is heated. The protests are not subsiding."

Few doubt that the anti-NATO demonstrations touched off by the arrival last month of 227 U.S. Marine reservists in preparation for a joint military exercise are motivated only in part by this region's deep-seated affinity with Russia.

More important, many analysts say, is the desire of several pro-Russia parties in Ukraine to influence the outcome of the coalition talks in Kiev. Yushchenko hopes to muster a majority among his Orange Revolution allies and others to form a government.

"I think our friends in Russia are using every tool they have to take a stand against the Euro-Atlantic priorities and strategy for Ukraine, but the arm of Russia is not the main thing in this situation," said Valery Chaly, an analyst with the Alexander Razumkov Center in Kiev. "More important is that the political elite in Ukraine itself is trying to agree on the main direction of our foreign and internal policies."

Much of the international attention over the last year has been focused on the feud between Yushchenko and his former prime minister, Yulia Tymoshenko, who was his partner in inspiring hundreds of thousands of Ukrainians in 2004 to stand in the streets and demand a Europe-oriented, democratic future for Ukraine.

Now, Tymoshenko and Yushchenko are on the verge of reviving their alliance. But any so-called Orange coalition would largely leave out major regions of eastern and southern Ukraine, especially Crimea, which did not vote for Yushchenko and remain opposed to his plan to break free of Russia's lingering influence.

For decades, these regions have been dominated by Russian-speakers with close family ties to Russia. Citizens here have resisted not only moves toward integration with the North Atlantic Treaty Organization but also efforts to widen the use of the Ukrainian language, now required in most government documents and court rulings.

"Yushchenko is the henchman of the Americans," said Alla Kiryanova, a resident of the Crimean town of Dzhankoy who was waving a protest flag Wednesday on the streets of Feodosiya. "He said the Russian language will have a special status here [in Crimea], but he's doing nothing.

All the TV programs are in Ukrainian now. You can't even read the directions on the medicine because it's in Ukrainian."

Wednesday's protests were directed at the weedy sanitarium where the Marines are staying. The national parliament remains unable to vote on authorizing the military exercises — or anything else — without a workable ruling coalition.

"American soldiers, we ask you: Do you want a new Vietnam here in Feodosiya? You will get it, and your mothers will cry!" a protester shouted in English, as loudspeakers blasted a throaty rendition of "Holy War," the song that sent Russian soldiers off to battle during World War II.

Conflicts over language and military policy are only part of what's been stirring up Crimea.

Equally turbulent have been faceoffs with the large population of Muslim Tatars who were deported from Crimea during the Stalin era but began returning in large numbers in the 1990s.

Since then, they have fought for reparations and the return of lands on which ethnic Russian and Ukrainian immigrants settled, and they have been among Yushchenko's strongest supporters in Crimea. Ethnic Russian residents warn darkly of "another Kosovo."

A Tatar convoy of 700 cars was prevented by village leaders from entering the small resort town of Partenit on May 18, the anniversary of the Tatar deportation, causing a traffic pileup.

The same week, hundreds of Tatars assembled near a square where Orthodox Christians were preparing to erect a 12-foot granite statue of St. Andrew the apostle, who is believed to have visited Feodosiya. A tense standoff ensued, as pro-Russia Cossacks and Ukrainians vowed to protect the site.

Faced with pleas from authorities for calm, the organizers agreed to remove a cross and move the statue to a less central location. "The cross was dismantled to the cries of 'Allahu akbar' [God is great]. It was very, very humiliating," said Valery Zamekhovsky, the sculptor.

They had no sooner taken the cross down than the Tatar demonstrators began attacking the cross-shaped stone foundation with hammers, he said.

Remzi Ilyasov, vice chairman of the Tatars' ruling council, said the group made up nearly 14% of the population in Crimea but had been shut out of the ruling presidium of parliament and had little hope of returning to its homes and that of its parents. Many, he said, have growing doubts about the ability of Yushchenko's team to fulfill the revolution's promises and find a path to unity for the nation.

"The country remains split, and the parliamentary election demonstrated that once again," he said.

"The main problem with Mr. Yushchenko is the people around him. His campaigners, his colleagues, his political partners to whom he entrusted the state — they have failed," he said. "The image of so much promise Ukraine had a year and a half ago, if it goes on like this, in six months this image will perish."

Source: LA Times

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Chornobyl, Lies And Sovereignty In Ukraine's Energy Sector

KIEV, Ukraine -- In April 1986, Soviet lies turned the world’s worst nuclear disaster at Chornobyl into a larger human tragedy.


Twenty years later, lack of transparency in Ukraine’s energy sector again threatens Ukraine’s sovereignty, this time due to murky gas deals, set to expire in June.

Unlike in 1986 when Soviet leaders tried to cover up Chornobyl’s threat, Ukraine’s leaders now have the opportunity to respond to alarm bells in the gas sector and forestall an impending danger to its own sovereignty and European energy security.

The Chornobyl tragedy was symptomatic of what was fundamentally wrong with the Soviet Union: false promises about technology, disregard for the environment, secrecy and obfuscation, and greater concern for national prestige than for its own people.

It was appropriate and ironic that reform of many of those Soviet practices secured Chornobyl’s closure in December 2000. For years, Ukraine’s leaders refused to consider closure, arguing that it would cause blackouts and threaten industry. In fact, Ukraine had excess capacity, but lacked market prices and systems to collect revenues in order to pay for fuel, replace obsolete plants, and ensure adequate supply.

Electricity reforms that began in 2000 now allow Ukraine to export electricity to Hungary and Slovakia.

Today, another form of potential energy tragedy threatens Ukraine — the country’s dependence on imported gas and shady contracts. The cutoff of Russian gas in January demonstrated Ukraine’s reliance on external supply and its vulnerability to political pressure.

The deal Ukraine and Russia negotiated to restore supply does not protect Ukraine’s interests or reflect normal market practices:

The contract does not ensure stable prices for Ukraine past mid-year, nor do the terms provide for a predictable, non-politicized procedure for setting future prices (as in Russia’s gas deals with Germany and France).

Russia does not guarantee to supply minimum volumes but, rather, may supply gas up to a stated ceiling. In other words, Russia decides what it wishes to supply.

Ukraine guarantees Russia access to its gas transit system but Russia is not required to pay if that capacity is not used.

The gas pipeline tariff for Russia is set for five years, with no escalator clause, even though Ukraine’s gas import price is only fixed for six months.

Transit rights and sole gas import rights are given to a new company, RosUkrEnergo, which does not have physical or financial assets that can be seized if it does not meet its obligations, and whose ownership structure is murky and possibly associated with organized crime.

Ukraine has already fallen into serious arrears under the new agreement with Russia. It is unclear why revenues from gas sales and transit have not covered Ukraine’s payment obligations. We can write the scenario now for what will happen in June when the current price deal expires.

As it has in other countries, Russia may well seek as payment a “fire sale” ownership stake in Ukraine’s gas system or in major gas-consuming industries, which are the lifeblood of Ukraine’s economy.

If Ukraine’s new leadership is committed to acting on the lessons of Chornobyl, it will seek international help to restructure these agreements and will be fully transparent about the supply arrangements.

Forestalling a crisis is also in the interests of the EU, the United States and Russia. The EU cannot afford to be passive. Almost all European gas imports from Russia — nearly one-third of Europe’s gas supply — transit Ukraine.

The United States hardly needs another crisis in the Russia relationship as we seek Russia’s help in preventing a nuclear Iran. Russia needs neither an irate European customer nor a fight with diplomatic partners seeking to prevent an Iranian nuclear bomb.

Some practical steps:

Ukraine’s leaders must break with past practices of corruption and lack of transparency in the energy sector. Ukraine should seek international help in addressing its gas supply problems and technical assistance in reviewing the terms of existing contracts.

The EU and the U.S. should engage Ukraine and Russia before the crisis erupts, and offer to facilitate negotiation of normal commercial arrangements.

The World Bank, EBRD and bilateral donors should support programs in Ukraine to increase energy efficiency and to create and enforce regulations that promote efficiency and transparency in the gas transit system.

When the G-8 takes up energy security in its July meeting, transparency in market structure, ownership, and supply arrangements, as well as fair competition and access to transit infrastructure, should be core themes. Russia should welcome such discussions as being in its long-term interests.

Ukraine’s friends have reflected on Chornobyl and said “never again.” Today, “never again” means that Ukraine’s friends and its leaders must work to ensure that lack of transparency in Ukraine’s energy sector does not threaten the sovereignty for which Ukrainians have persevered.

Source: Kyiv Post

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Wednesday, June 07, 2006

Russia Says NATO Entry For Ukraine, Georgia Would Have Colossal Impact

MOSCOW, Russia -- NATO membership for Ukraine and Georgia would mean a "colossal geopolitical shift," Russia's foreign minister said Wednesday, as lawmakers signaled to Kyiv that bilateral relations would suffer if it joined the military alliance.

Russian Foreign Minister Sergey Lavrov

"We have said more than once that every country has the right to take sovereign decisions on who will be its partner in the international arena," Foreign Minister Sergey Lavrov said in a speech before the State Duma, or lower house of parliament.

"At the same time, the acceptance into NATO of Ukraine and Georgia will mean a colossal geopolitical shift and we assess such steps from the point of view of our interests," he said.

Ukraine's pro-Western President Viktor Yushchenko, who came to office in January 2005 in the wake of Orange Revolution protests after beating his Kremlin-backed opponent, has made NATO membership a top priority for his former Soviet nation of 47 million.

His government hopes to receive an invitation to join NATO in 2008, a prospect that has alarmed Moscow, which is already smarting at the eastward enlargement of the Brussels-based alliance into its former Soviet bloc satellites.

Georgia, a former Soviet Caucasus Mountain state that has allied itself with the United States, is also seeking NATO membership. Both Ukraine and Georgia neighbor Russia.

Earlier Wednesday, State Duma lawmakers voted unanimously, 435-0 with one abstention, for a resolution that criticized Ukraine's plans to join NATO, saying such a step would "lead to very negative consequences for relations between our fraternal peoples."

"We are not dictating to our Ukrainian colleagues how to act, we only consider it necessary to express our attitude toward Ukraine joining NATO," said Andrei Kokoshin, head of the Duma's committee on relations with the Commonwealth of Independent States, a grouping of 12 ex-Soviet states.

In Kyiv, officials expressed astonishment at the parliamentary move.

"I am very much surprised with such a decision by the Russian parliament," Ukrainian Deputy Foreign Minister Anton Buteiko said.

"When the Russian leader says that NATO does not pose a threat to security, I cannot imagine how Ukraine's integration with NATO can turn this organization into a threat to Russian security," he added.

Meanwhile, Russian ultranationalist lawmaker Vladimir Zhirinovsky became the latest Russian to be barred from Ukraine for participating in anti-NATO protests on Ukrainian territory, the State Security Service said.

"Let those who don't respect Ukraine be kept out of our country," Buteiko said.

Earlier this week, Konstantin Zatulin, another Russian nationalist lawmaker, was refused entry to Ukraine for his involvement in the protests.

Organized by a small pro-Russian party and the Communists, they opposed the arrival of 200 U.S. Marine reservists invited by the Ukrainian government to help refurbish a Ukrainian traini