Wednesday, January 31, 2007

U.S. Exploring Cooperation With Ukraine On Missile Defense System

WASHINGTON, DC -- The United States is looking for ways to involve Ukraine in its plans to build a missile defense system.

A medium-range target missile rises seconds after lift-off from the Pacific Missile Range Facility, Barking Sands, Kauai, Hawaii. This test by the Aegis Ballistic Missile Defense, the maritime component of the "Hit to Kill" Ballistic Missile Defense System, being developed by the Missile Defense Agency.

The Deputy Director of the Missile Defense Agency said Monday that the U.S. has held several meetings with Ukrainian officials.

"We are exploring how we can continue to work with them," said Brigadier General Patrick O'Reilly. "They are a very adept country with a tremendous background in missile technology."

Washington announced earlier this month that it wants to build a missile defense system in Eastern Europe, basing a radar system in the Czech Republic and a missile interceptor site in Poland.

Russia has harshly criticized U.S. plans to build missile defense sites in central Europe, shrugging off U.S. assurances that the installations would be meant to deal with a potential threat from Iran and calling them an effort to strengthen America's military might in the region.

Source: International Herald Tribune

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Tuesday, January 30, 2007

Ukraine's Pro-Western Foreign Minister Resigns

KIEV, Ukraine -- Foreign Minister Borys Tarasyuk, the chief architect of President Viktor Yushchenko's pro-Western foreign policy, said on Tuesday he had resigned.

Ukraine's Foreign Minister Borys Tarasyuk leaves the hall after a news conference in Kiev January 30, 2007. Tarasyuk, the chief architect of President Viktor Yushchenko's pro-Western foreign policy, said on Tuesday he had resigned

"The president of Ukraine has taken the decision to accept my resignation," Tarasyuk told a news conference broadcast on national television.

He said he hoped Yushchenko, weakened by constitutional amendments cutting his powers, would soon choose a successor.

Tarasyuk, one of Yushchenko's closest allies in the 2004 "Orange Revolution" protests that vaulted him to power, had been one of only two ministers still loyal to the president since his arch rival took over as prime minister last August.

He had championed the president's main policy plank of taking Ukraine out of the shadow of big neighbor Russia and seeking membership of both the European Union and NATO.

Yushchenko took office in 2005 with plans to improve ties between Ukraine and the West. But rows provoked splits among the revolution's advocates and toppled his first government.

The president's allies scored badly in a parliamentary election last year and were unable after long talks to form a government, prompting Yushchenko to name his rival, Viktor Yanukovich as prime minister.

Within weeks of taking office, Yanukovich enraged the president by telling NATO officials that public support was too low in Ukraine to embark on a fast-track membership plan.

Defense Minister Anatoly Hrytsenko remains Yushchenko's sole cabinet ally. The president is now obliged to consult with both the government and parliament on only a handful of appointments, including the foreign and defense ministers.

Source: National Post

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EU Fuels Western Ukraine Boom

TRANSCARPATHIA, Ukraine -- Dominated by the Carpathian Mountains, the region of Transcarpathia in western Ukraine looks stunning, but for years this was one of the poorest parts of Europe.

Eurocar Ukraine

Now it is being transformed.

The European Union has expanded again by taking another two countries - Bulgaria and Romania - which were once behind the Iron Curtain.

It means that Transcarpathia now borders four EU states - and business is booming.

Increased investor interest also followed the mass protests of the Orange Revolution in 2004 which brought Ukraine's pro-Western President, Viktor Yushchenko, to power.

An estimated 200m euros (£131.4m; $258.6m) has been invested in Transcarpathia, at the western tip of Ukraine.

New jobs

More than 4,000 new jobs have been created, with many more on the way.

One source is the Eurocar factory, just a 10-minute drive from the mountains.

It turns out Volkswagens and Seats, but today Sergey Zhuravel is working on the Skoda production line.

"This kind of place provides lots of permanent jobs," Mr Zhuravel said.

"It gives people prospects. They can earn their living, support their families and plan their future."

This factory will soon produce almost 30,000 vehicles destined for Europe every year.

Transcarpathia has special tax incentives and, compared to western Europe, wages are very low. But the biggest selling-point is its location.

Hungary is just a few metres away from the Eurocar factory and the region shares a border with Poland, Romania and Slovakia. All four EU countries are within just a few hours drive.

Around 700 international businesses are now working in the region.

Students hopeful

Since the collapse of the Soviet Union, life here has been hard.

Many people from Transcarpathia were tempted to work abroad, often illegally.

At Uzhhorod University, a class of students are improving their English skills at a discussion club. Most of them though are not planning to leave Ukraine; instead they hope to work for international companies.

"It makes a real big difference if you have a good job, just like everywhere else," says Antonia Kanchiy, a student.

"Less people are going abroad now because more investments are coming into our region. It makes me feel good because I can see progress; I would like to work for the benefit of my country."

New 'Silicon Valley'

With a huge consumer market on its doorstep, Transcarpathia is attracting hi-tech firms.

The US-based company Jabil makes mobile phones and computer components here.

It employs more than 1,000 people and has plans to hire 5,000 more, bringing its production capacity to one million handsets a week.

"We strongly believe that this region can become a kind of Silicon Valley of electronic manufacturing in Europe," says Philippe Costemalethe, General Director of Jabil Ukraine.

"It could be the powerhouse of electronic manufacturing serving the European market."

International businesses would like to see improvements - less red tape and a more stable political climate. Compared to its neighbours, the level of foreign capital coming to Ukraine is still very low.

But already there are signs of the increased prosperity in Transcarpathia.

In the main town, rows of new houses are being built alongside the dingy Soviet-era tower blocks.

Source: BBC News

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Ukraine Takes On Toxic Dumps

ZHYDACHIV, Ukraine -- As Olena Cholovska approaches the crumbling brick warehouse, she sighs. The cold wind whipping her scarf around her head blows toxic greenish powder into the nearby cabbage fields.


"A year ago we were here and all the doors were still here," says Ms. Cholovska, the director of the Lviv Plant Inspection Station in Lviv Oblast, an administrative region in western Ukraine that borders Poland.

The villagers who made off with the derelict warehouse's metal and wooden doors – most likely to burn them or sell them for scrap – may have had no idea that they were intended to protect locals from a stockpile of pesticides that date back to Soviet times.

The abundance of toxic pesticides is not unique to this rural, northwestern region of Ukraine, an hour south of the city of Lviv. In a country about the size of Texas, the United Nations estimates that about 4,000 dumps house nearly 20,000 tons of obsolete pesticides.

The potentially lethal waste hurts Ukraine's agricultural potential, especially when it comes to exporting produce to the expanding European Union (EU).

A few years ago, Cholovska says there were about 200 pesticide dumps in Lviv Oblast. Now, thanks to the efforts of about 25 Ukrainians working on behalf of universities, institutes, and local agencies, the number of dumps has been reduced to only 169.

The US Environmental Protection Agency (EPA) is spearheading a project to help clean up the country, but officials on the ground face numerous challenges from locals' lack of awareness and cooperation.

"Some people have tried to put fences around the sites and they just take the fences," says Margaret Jones, an EPA pesticides scientist from Chicago who has visited some of the sites. "They saw one local guy running through the woods with literally the last brick from one of the sites. That brick is going to build something else and you hope it's not in someone's home."

The EPA, working with the State Department and the US Agency for International Development, is sponsoring demonstration projects to educate Ukrainians about the dangers of harmful pesticides.

Over the past three years, some of the US government's $300,000 in aid has also gone toward computers and Internet access for Ukrainian government offices, some of which lack heat and electricity.

The bulk of Ukraine's left-over pesticides are classified by the EPA as persistent organic pesticides (POPs). These chemicals, like the famous insecticide DDT, which was banned in the US in 1972, take a long time to break down and are particularly harmful to animals and people.

Animals at the top of the food chain tend to accumulate POPs in their systems over time. which is why the insecticide DDT was so harmful to bald eagles and was eventually banned.

The vast pesticide waste is the vestige of a planned economy gone wrong. Before Ukraine gained its independence from the Soviet Union in 1991, Moscow regularly sent pesticides to the countryside – regardless of local demand.

"Now, you get pesticides by buying them," says Cholovska, whose husband sells pesticides and farm equipment in Lviv. "But back then, we got pesticides if we wanted them or not."

The Soviet Union's central economic planners often doled out more pesticides than were needed for rural areas. When the Soviet Union collapsed, so did the management of pesticide dumps, leaving an excess of toxic materials without supervision.

According to the United Nations, it costs about $3,500 to clean up one ton of old pesticides. The reticence on the part of the government in Kiev to clean up the sites, says Cholovska, is frustrating.

Last year, the local Oblast administration gave her agency 450,000 hryvna, or about $90,000, to manage the pesticides. Along with money from other sources, Cholovska's agency was able to dispose of about 40 tons of pesticides. Government inventory figures show about 1,000 tons in the Lviv Oblast alone.

Cleaning the sites requires placing all the chemicals into thick plastic barrels that are then shipped to incineration sites.

But simply removing the pesticides doesn't solve the problem. Cholovska and her colleagues plant mint and watermelons in the soil surrounding cleaned areas in the hopes that the plants will soak up toxic residues before villagers bring their cows into the area to graze.

Convincing locals of the danger, says Cholovska, is a major headache in the cleanup effort.

Some locals have been known to steal the pesticides, pack them into cheap plastic bags, and sell them at outdoor markets, Jones says. The informal packaging can result in fungicides sold as herbicides and herbicides labeled as pesticides.

Source: Christian Science Monitor

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Monday, January 29, 2007

Cracks Appear In Ukraine, Poland Bid

TEL AVIV, Israel -- Ukraine football federation (UFF) president Hrihory Surkis has accused Polish Sports Minister Tomasz Lipiec of undermining the two countries' chances of staging the Euro 2012 finals.


Last week Lipiec suspended the Polish Football Association after a match-fixing investigation, angering the world and European governing bodies.

"Mr Lipiec, with his actions, simply stabbed us in the back," Surkis said while attending a six-team invitational tournament in Israel.

The $8 million tournament, involving top teams from Russia, Ukraine and Israel, is sponsored by Chelsea's billionaire owner Roman Abramovich.

"You would believe that in his high government position, being his country's sports minister, he should refrain from doing something that would severely damage not only his own country's bid but also ours."

Both FIFA and UEFA, which resent government involvement in football matters, have condemned Lipiec for his actions. FIFA also warned Poland that they would be banned from international competition unless the government reversed its decision.

The joint Ukraine-Poland bid is one of three being considered by UEFA along with a solo bid from Italy and a joint bid from Croatia and Hungary. "We had a very strong bid going, maybe the best of all three," Surkis said, who was elected as a member of the executive board at last week's UEFA Congress in Duesseldorf, Germany.

"I strongly believed that we were the front runners for Euro 2012 because UEFA's visiting commission was very impressed with what we have done," he added.

"We also had the government and public support. Opinion polls taken in both Poland and Ukraine have shown that 85 percent of the population supports our bid. Would you imagine how many people would be disappointed if we failed?"

Surkis said a proposal at the congress to increase the number of teams competing at Euro finals from 16 to 24 starting from 2012, could cause problems for Poland and Ukraine.

"Obviously it would add extra work, maybe cause some problems, but on the other hand, nothing is impossible," he said.

"As it is right now, Poland and Ukraine would host two first-round groups each, but if they decide to go with 24 teams, each of our countries would only have to host three groups. That's not such a huge burden."

Despite the setbacks, Surkis remained optimistic.

"I really hope that Mr Lipiec and his government would soon find a consensus with UEFA and solve the problem," he said.

"Besides some of our rivals, Hungary and Croatia, also have problems.

"In any case, I still believe in our bid and still have hope. In the next few months we must convince everyone that not only we want Euro 2012 but, more importantly, that we are very capable of staging the competition."

UEFA will announce the winning bid in April.

Source: The Moscow Times

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Borshch, Blini And Bodyguards, But No Bill Gates

DAVOS, Switzerland -- Some 300 people crowded into a hotel restaurant on Friday for borshch and the chance to hear Ukrainian Prime Minister Viktor Yanukovych make his case for his country's membership in the European Union.

EU Enlargement Commissioner Olli Rehn

But EU Enlargement Commissioner Olli Rehn and Latvian President Vaira Vike-Freiberga offered only lukewarm responses during a round of speeches that lasted for about two hours.

The number of guests had dwindled to about 100 by the time the final speaker, former Polish President Aleksander Kwasniewski, stood up and waiters began serving cherry dumplings for dessert.

"I'm not sure why some challenge the sincerity of our European aims," Yanukovych told the luncheon, titled "Where is Ukraine Heading?" and hosted by powerful Ukrainian businessman Viktor Pinchuk on the sidelines of the World Economic Forum.

The pro-Russian prime minister extolled Ukraine's democracy and economy, and said he had no desire to displace the pro-Western president, Viktor Yushchenko. He and Yushchenko work under an uneasy power-sharing agreement.

As for Ukraine's chances of joining the EU, Rehn offered an unenthusiastic "never say never."

Vike-Freiberga made no secret about her critical feelings toward Russia and Yanukovych, launching into a lively speech about the Soviet "occupation" of both Latvia and Ukraine. She said her country, now an EU member, had found its identity and urged Ukraine to do the same.

"Make up your mind. Make a commitment. Do it. We're with you. The Ukrainian people deserve much better than what they have," she said to laughter and applause from the guests, who included financier George Soros, French socialist Dominique Strauss-Kahn and billionaires Viktor Vekselberg, Alexei Mordashov and Rinat Akhmetov.

If the entry barriers to Russia were as low as they were to the official Russian reception, the country would have no trouble attracting foreign investment.

The government threw a glitzy reception Thursday night that it billed as an exclusive opportunity to meet with top officials and business leaders. While Medvedev, Gref and Matviyenko did schmooze at the presumably invitation-only event at a Davos hotel, a few guests did not recognize them.

"I frankly thought this was the Microsoft party," said one, the founder and CEO of a California-based organization that promotes literacy in Third World countries. His friend, a New York financial manager, bobbed his head in agreement. "We were looking for Bill Gates," he said.

Across the crowded room, the chairman of a large firm based in Munich, Germany, sipped wine with his wife as they watched Russian waiting staff gently pat black caviar onto small blinis and pour ice-cold vodka.

Metals billionaires Alexei Mordashov and Oleg Deripaska entertained small groups of businessmen at opposite ends of the room, while glamorous soprano Anna Netrebko sang in the center.

"I don't have any business in Russia," the chairman from Germany acknowledged to a reporter. "We didn't know that this was related to Russia. Do you know anyone here?"

The World Economic Forum is supposed to be a place where business leaders and politicians can have unrivaled access to one another. But organizers ran into some trouble conveying that three-decade tradition to the Russian delegation.

"Russian officials don't understand why they can't have their usual group of staff following them around," one Davos representative said.

She said organizers had repeatedly tried to explain that the forum was not a place for a retinue of associates, assistants, press secretaries and bodyguards, but the government officials still insisted on doing things their way.

At least the entourage problem this year was not as bad as when then-Prime Minister Viktor Chernomyrdin visited Davos in the mid-1990s. "He flew in with a planeload of his entire supporting staff, including accountants and doctors," the representative said with a laugh.

Source: The Moscow Times

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Sunday, January 28, 2007

Ukraine's PM Touts Country's Credentials

DAVOS, Switzerland -- Ukraine's prime minister pitched his country's investment credentials to the world's rich and powerful on Friday -- but only got a lukewarm response from his audience which included the European Union's enlargement commissioner.

Ukraine's Prime Minister Viktor Yanukovych listens during a session at the World Economic Forum in Davos, Switzerland

Pro-Russian Prime Minister Viktor Yanukovych said the country's strong democracy and potential as an economic powerhouse between Western Europe and Russia should make Ukraine a candidate for membership in the EU.

While the presentation sought to stake Ukraine's claim as this year's compelling investment story at the World Economic Forum, the unenthusiastic assessments of the ex-Soviet country's reform process from EU Enlargement Commissioner Olli Rehn and Latvian President Vaira Vike-Freiberga ensured that Ukraine failed to engineer the splash garnered in previous years by China and India.

Nevertheless, the "Where is Ukraine Heading?" session held on the Forum's sidelines pulled in a number of major international figures including billionaire George Soros, Brazilian novelist Paulo Coelho, Poland's ex-President Aleksander Kwasniewski, French Socialist Dominique Strauss-Kahn and a number of top Russian businessmen.

"I'm not sure why some challenge the sincerity of our European aims," said Yanukovych, who pledged huge government investment in the country's state-owned highways and utilities, and new laws to simplify regulation of business.

Yanukovych shares power in an uneasy arrangement with pro-Western President Viktor Yushchenko.

While the government has been plagued by a constant tug-of-war partially caused by the country's unclear constitutional division of power,

Yanukovych sought to allay fears that he was attempting to take power away from his rival.

"I am for a reasonable system of checks and balances that makes it impossible to usurp power," he told a group of about 150 people at a Davos hotel. "Neither the government nor the prime minister ever aspires to replace the president."

The glitzy presentation featured an independent report saying that Ukraine would one day become an EU country, even as the 27-nation bloc earlier this week refused to give any promise of future membership for its giant eastern neighbor.

Rehn and Vike-Freiberga were reserved about Ukraine's chances and urged the prime minister to gain consensus on a clear direction for the country.

"Make up your mind. Make a commitment. Do it. We're with you," Vike-Freiberga said. "The Ukrainian people deserve much better than what they have."

Rehn said Europe's doors remain open to new members, but made clear that membership in the EU is not defined by geography alone. On future prospects for Ukraine, he said only "never say never."

One enthusiastic advocate for Ukraine's EU bid, however, was former U.S. President Bill Clinton.

"Gaining membership in the European Union is an important and attainable goal for the Ukrainian government, that has the potential to create a stronger Europe," Clinton said in a taped video address.

On Monday, the EU agreed to begin negotiations for closer across-the-board ties with Ukraine but refused to go any further than the proposed "enhanced relationship" -- seen as a setback for Britain and Poland.

Ukraine is one of 13 members of an EU "neighborhood" program of broad economic aid and eventual free trade that specifically excludes future membership. The others are Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority and Tunisia and -- to the east -- Armenia, Azerbaijan, Georgia and Moldova.

The program offers easy access to the vast EU market of 455 million consumers in exchange for economic and political reforms designed to keep the EU's fringes secure and stable. The arms-length nature of the aid program has long irked Ukraine.

Source: Business Week

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Principal Version Of Yushchenko’s Poisoning Appeared Deadlocked

KIEV, Ukraine -- Former Chairman of the Security Service of Ukraine (SBU), Igor Smeshko, stated in an interview to newspaper Fakts, that investigation of the case about poisoning of the current President of Ukraine, Viktor Yushchenko, on September 5, 2004, at a summer residence of ex-Deputy Chairman of the SBU, Vladimir Satsyuk, has appeared deadlocked.

Former SBU Chairman Igor Smeshko

“From the legal point of view the Yushchenko's version during two years of investigation of the case has appeared so deadlocked that, as a matter of fact, he involuntarily has become its political hostage", Smeshko said.

In his opinion, "it is impossible to claim that there are any proofs which would connect that dinner on September 5, 2004, at Satsyuk's summer residence with the fact of deterioration of Viktor Yushchenko’s state of health in the autumn of 2004".

The former head of the SBU noted that for 1.5 hours before the meeting at Satsyuk’s place, Yushchenko had dinner at a summer residence of one of the heads of Foxtrot firm, where he was even served a separate dish, a trout.

Besides Yushchenko had problems with health till September 5, 2004 and because of them Smeshko’s meeting with Yushchenko was transferred from September 4 to September 5.

Smeshko was asked for his comments on the last version of anonymous "leadership of security services", published by the newspaper Segodnya on December 28, 2006, that Yushchenko could be poisoned eating plov (rice pilaf), served by an unnamed security guard of Satsyuk, at the same summer residence on September 5, 2004.

Smeshko referred to the statement of the acting SBU Chairman Valentin Nalivaichenko at a press conference on December 28, 2006, when he personally publicly commented the given publication.

He stated that "as far in this case there is no moral right of any department to declare that it has achieved success” and called to refuse loud versions and assumptions.

Smeshko mentioned ‘a former SBU general‘ who has spent most of his service career to the struggle against ‘bourgeois Ukrainian nationalism’.

In the beginning of 2006 he "surely reported to the country’s National Security and Defence Council and to the President that the investigation, say, already knew absolutely everything that is connected with Yushchenko's poisoning.

According to Smeshko, when the law enforcement bodies requested the fact sheet, the general’s sensational report appeared a usual bluff, though, it was rather harmoniously supporting the principal version of the President.

Source: Eurasian Secret Services

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Saturday, January 27, 2007

Goals Lift The Blues For Rejuvenated Shevchenko

LONDON, UK -- Having solved the case of the missing goals, Andrei Shevchenko promptly turned his attention to the far thornier inquiry that surrounds his Chelsea future.

Chelsea's Andriy Shevchenko celebrates after scoring the second goal of the match against Wycombe during their Carling Cup match at Stamford Bridge stadium. Shevchenko has finally rediscovered his scoring touch but he won't be content until he has savoured success at the Millennium Stadium. Shevchenko netted twice in Chelsea's 4-0 League Cup semi-final second leg win against Wycombe to help his side book a place in next month's final in Cardiff against Tottenham or Arsenal

At face value, his Carling Cup brace against League Two's Wycombe should have represented a routine evening's work – but to listen to him yesterday was to form an impression a player revived and rejuvenated, a man for whom blue was the only colour. Strange, what a little reassurance can do.

"After more than a month, it is very important for a striker to score goals again," said the Ukrainian, downplaying his deficiencies – his goal drought, in the Premiership at least, stands at 2½ months. "It was also important to play well, and the support from the fans was incredible. Now it is all much better and I believe in the future."

Say what you will about Shevchenko, but he does not want for allies. Didier Drogba and Frank Lampard have both spoken stridently in his defence this week, indicating that his apparent alienation on the pitch has not extended to the dressing room, and yesterday even manager Jose Mourinho added his voice to the clamour.

"He needed the performance more than the goals," said Mourinho, whose relationship with the striker has been strained by his £30.8 million price tag and the impression that this gave of a one-eyed transfer policy at the club. "He had the effort, the commitment, the aggressiveness and the desire – all the ingredients that we want in our players."

But the uncertainties over Mourinho's future direction do not recede so easily. His position was put into renewed doubts by reports that some of his most valued coaching staff, including assistants Steve Clarke and Baltemar Brito, were set to be cast aside by Chelsea, although the club have insisted that all the contracts in question would be reviewed in the summer.

Perhaps more importantly for Mourinho, the return of the man whose injury troubles have so constrained Chelsea is imminent. John Terry has endured a complicated convalescence from back surgery, but is at last poised to resume full training next week – a prospect enhanced by the fact that Khalid Boulahrouz, another missing link in the heart of defence, is recovering quickly from knee trouble.

The timing is likely to help Chelsea just at the point that their season reaches a critical and congested phase.

Source: Telegraph

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Yushchenko, Yanukovych Battle For Control Of Security Services

KIEV, Ukraine -- Last week the head of Ukraine’s parliamentary committee on national security and defense, Anatoliy Kinakh, accused the general prosecutor’s office, the Security Service (SBU - formerly KGB), and law enforcement of beginning to act on the basis of political orders.

SBU (formerly KGB) headquarters in Kiev

Kinakh’s concern was related to the tug of war and institutional conflict in Ukraine during its constitutional crisis, which is now spilling over into the field of civil-military relations.

Kinakh, head of the Party of Industrialists and Entrepreneurs (PPPU), defected from the Leonid Kuchma camp to Viktor Yushchenko during the second round of the 2004 presidential elections after he himself obtained 1.98% in the first round of voting. In the 2006 elections the PPPU joined the Our Ukraine bloc, thereby strengthening the business component that preferred a coalition with the Party of Regions to one with the Yulia Tymoshenko bloc.

President Yushchenko has been unsuccessful in his attempts to place the security forces under democratic control. Under the reformed constitution, the president controls the appointments of the SBU chairman, prosecutor general, National Security and Defense Council (NRBO) secretary, and foreign and defense ministers.

Surprisingly, the first two positions have been given to individuals who turned out to be not fully loyal to the president or, in the case of Svyatoslav Piskun (December 2004-October 2005), only there to defend the granting of immunity to Kuchma and other high ranking officials.

Foreign Minister Tarasyuk was unconstitutionally dismissed in December and the NRBO was given to the head of the Industrial Union of Donbas, who has little experience in international affairs. President Yushchenko lost control over the Interior Ministry (MVS) when his candidate, Yuriy Lutsenko, was removed after Our Ukraine went into opposition to the Anti-Crisis coalition.

The SBU never fully came under Yushchenko’s control after he took office in January 2005. The SBU’s high involvement in corruption and its links to local political and business elites undoubtedly prevented this smooth transition to the Orange administration.

The presidential secretariat has understood the importance of reforming the SBU yet been unable to put forward a concrete strategy. Parliament’s ruling coalition is also proving to be obstructive to reforms. Yushchenko has called for the creation of a “National Commission on Reforming the SBU”.

In an attempt to place loyal cadres in the senior ranks of the SBU, Yushchenko appointed Hennadiy Moskal as its deputy head on January 9. This is Moskal’s fourth position in less than two years, during which he has moved from governor of Luhansk and Trans-Carpathia, to deputy head of the MVS, and most recently the president’s representative in the Crimea.

The biggest blows to Yushchenko’s authority have come in the Ministry of Emergency Situations, the government, and the MVS, where personnel changes have been approved that threaten the democratic gains of the Orange Revolution.

Nestor Shufrych, a leading member of the Social Democratic Party-United (SDPUo), whose reputation is stained by corruption, election fraud, and the use of antagonistic rhetoric against his opponents, was appointed minister of emergency situations.

Shufrych was brought back from the political wilderness as a Crimean Supreme Soviet deputy after the SDPUo failed to enter the current parliament.

Previously SBU chairman, MVS head, and NRBO secretary, Volodymyr Radchenko was appointed deputy prime minister on January 12 after five months as Prime Minister Yanukovych’s adviser.

Radchenko told parliament that he would assist in coordinating the security forces, a step that would bring him into conflict with the NRBO, which has the same function at the president’s behest.

Radchenko’s background was in the Soviet KGB, which he joined in 1972 at a time of widespread arrests of Ukrainian dissidents and purges of cultural elites following the dismissal of Communist Party of Ukraine secretary Petro Shelest.

Former dissident Volodymyr Malynkovych described Radchenko as somebody who “repressed dissidents, those who fought for human rights, democracy, and Ukraine’s freedom”.

The Socialist Party (SPU) in the governing coalition agreed to support the removal of Lutsenko as MVS head only if it obtained this ministry. Lutsenko was a long time SPU member until his resignation from the party in protest of its defection from the Orange camp to Yanukovych.

MVS head Vasyl Tsushko has installed new deputies who have poor reputations from the Kuchma era while also demanding that regional MVS chiefs with Orange sympathies be transferred to other duties.

These include Mykola Plekhanov who, as head of the Sumy oblast MVS, sent police units against students marching on Kyiv in summer 2004, and Vasyl Marmazov from the Communist Party.

The most criticized appointment as deputy head of the MVS and head of the MVS General Staff has been that of Serhiy Popkov, who was commander of MVS Internal Troops from November 2004-February 2005.

On November 28, 2004, Popkov, on the instructions of then-president Kuchma, Prime Minister Yanukovych and MVS Minister Mykola Bilokin (who remains in exile in Russia after fleeing criminal charges) dispatched MVS troops with live ammunition to central Kyiv to suppress the Orange Revolution.

MVS troops only returned to their barracks after high-level diplomatic intervention from the United States, encountering blocked roads leading into Kyiv, and open support given to the protestors by military ground forces.

In a rare display of unity the Tymoshenko Bloc, Our Ukraine, and Yushchenko protested the return of Popkov to the MVS. Parliamentary speaker Moroz warned that public opinion should have been taken into account when making this decision.

Prime Minister Yanukovych meanwhile, described Popkov as “an expert of the highest kind who commands great respect.” Yanukovych continued, “There was never any infringements on his part throughout his entire career during which he worked in a qualitative manner”.

Source: Eurasia Daily Monitor

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Friday, January 26, 2007

Former WBC Champion Klitschko Plans Comeback

BERLIN, Germany -- Former world heavyweight champion Vitali Klitschko is planning a comeback in April.

Former world heavyweight boxing champion Vitali Klitschko speaks to the media in Kiev. Klitschko said in a statement he plans a come back in April in a fight against title holder Oleg Maskaev of Russia.

“I am returning to get my WBC championship back,” said the Ukrainian in a statement on Wednesday.

“In November 2005, due to a serious knee injury, I retired without having lost the WBC belt in the ring.

“At the WBC gala on December 20, 2005 in Cancun, Mexico, the WBC designated me as “WBC Champion Emeritus” and assured me that whenever I was ready to return, I would become the immediate mandatory challenger for the title.”

Klitschko plans to return against holder Oleg Maskaev of Russia on April 21 in Moscow.

“I’m back and I have requested the WBC sanction a bout between me and Oleg Maskaev,” he said.

“I look forward to reclaiming my title and want to thank everyone who has been so supportive during my short retirement.”

The bout will be Klitschko’s first since an eighth-round knockout win over Briton Danny Williams on December 11, 2004.

Knee and back problems prevented the Ukrainian making a title defence against American Hasim Rahman and eventually forced the champion into retirement with a 35-2 win-loss record, including 34 knockouts.

Following his retirement, Klitschko ran for mayor of Kiev.

The 35-year-old did not win the election but continues to play an active role in Ukrainian politics.

Klitschko’s brother Vladimir is scheduled to defend his IBF and IBO heavyweight titles against up and coming American Ray Austin in Germany on March 10.

Source: St. Petersburg Times

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Most Ukrainian Experts Polled Want Ukraine To Join NATO

KIEV, Ukraine -- Most Ukrainian journalists, analysts, and government officials polled by the Democratic Initiatives survey center support Ukraine's accession to NATO.


A poll of 147 respondents, including 91 journalists, 44 analysts, and 12 government officials, which the Democratic Initiatives conducted at the Ukrainian Foreign Ministry request on December 4-15, 2006 showed that 130 of them support Ukraine's accession to NATO, and 82 of them believe this should be done as soon as possible.

The respondents were also invited to share their views on the ongoing information campaign regarding NATO membership.

Most experts were of the view that the efforts toward persuading the Ukrainian people of NATO membership's advantages are not efficient enough, unlike the anti-NATO propaganda.

The experts suggested that, as regards Ukraine's accession to NATO, the people are more concerned about economic implications of this step, the influence that it could have on ordinary people's living standards, and its possible effects for relations with Russia.

At the same time, they said, the people's attitudes toward NATO membership depend in large part on consolidation on this issue within the political elite and on how clearly NATO formulates its position regarding Ukraine's possible membership.

Source: Interfax

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Thursday, January 25, 2007

Ukraine's Foreign Ministry: Russia Must Obey Court Order To Return Crimean Lighthouses

KIEV, Ukraine: Ukraine's Foreign Ministry demanded on Thursday that Russia obey a court order and return to Ukraine control the Crimean lighthouses and navigation systems being used by Russia's Black Sea Fleet.


Russia and Ukraine have been arguing over 100 lighthouses along the Black Sea coast for nearly a decade.

After years of court battles, an appeals court in the Black Sea port of Sevastopol last year upheld an earlier decision ordering Moscow to return 77 lighthouses to Ukraine's Transport Ministry.

Moscow vowed to ignore the order, saying the 1997 agreement that divided the Soviet Union's Black Sea Fleet between Russia and Ukraine took precedence.

Under that agreement, the Russian navy was allowed to remain in the Crimean port of Sevastopol until 2017, paying an annual rent of US$93 million (€73 million).

Ukraine insists the lighthouses were not part of the deal, and the Foreign Ministry warned that it would take unspecified action "based on international legal norms" if Russia continued to disregard the court order.

On Tuesday, a Ukrainian bailiff tried to gain access to a radio navigation system on the Crimean Peninsula but was barred by officials of Russia's Black Sea Fleet, the Interfax news agency reported.

Last year, Ukraine also tried to take over control of some of the lighthouses, prompting Moscow to accuse Kiev of trying to seize Russian property.

The presence of the Russian troops on Ukrainian territory has sparked anger among Ukrainian nationalists, and given rise to a number of disputes between Ukraine and Russia since the collapse of the Soviet Union.

Ukraine's Foreign Ministry said it would again raise the issue of the lighthouses at an upcoming intergovernmental meeting in Moscow next month.

Source: International Herald Tribune

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Bold Highway Plans Unveiled

KIEV, Ukraine -- Ukrainian Transportation and Communications Minister Mykola Rudkovsky has come up with a bold $15-20 billion plan to build a new network of modern, intercity highways in an effort to replace archaic Soviet roadways that continue to serve as the country’s main transportation routes.

Transportation and Communications Minister Mykola Rudkovsky has unveiled a bold new plan to build brand new highways across Ukraine amid calls for his ouster in connection with his alleged interferance into the country’s foreign policy agenda

The plan is to construct up to 7,000 kilometers of mostly new highway alongside existing roads within seven years. Rudkovsky’s press service said negotiations on signing a final deal could be signed as early as March, adding that a consortium would be established, bringing in the backing of Western lenders and French construction giants.

Rudkovsky, who has fallen under political criticism as of late for his role in inviting controversial oppositionist politicians from Turkmenistan to Kyiv, said the project is being supported by Ukraine’s governing coalition leadership.

Yet, some insiders caution that basic details for the badly needed and widely publicized project are still caught up on the drawing board.

Rudkovsky’s press service said the Transportation Ministry has selected two leading French construction companies for the project: Vinci Construction and Bouygues Travaux Publics.

Both companies are expected to join major Western banks, such as CitiBank and Merrill Lynch, in financing the project.

Despite enduring budget constraints, Rudkovsky said Ukraine’s government could provide some funding for the project. The consortium, which has yet to be established, would according to Rudkovsky be granted concession rights for toll fees charged on the roads for about 25 years.

While exact details, including issuance of land rights, have yet to be worked out, Rudkovsky’s ministry said the project envisions construction of new highways that would connect western and eastern Ukrainian cities such as Lviv, Donetsk and Luhansk.

Another highway envisioned would stretch from the capital city of Kyiv to Vinnytsya, near Ukraine’s border with Moldova and Romania; and further west to Lviv.

A third highway would extend from the eastern city of Kharkiv to the port city of Odessa via Dnipropetrovsk, an industrial city located in the center of the country. Yet another highway would connect Kyiv with Crimea’s capital, Simferopol.

The planned new European-standard roadways represent only a tiny fraction of the nearly 170,000 kilometers of road existing in the country, but it is intended to cut down travel time and cost along popular transportation routes.

Obstacles ahead

Though expensive, building brand new highways under concession terms can benefit Ukraine by allowing it to save its own funding for repair and reconstruction work at existing roadways, Bouygues CEO Christian Gazaignes said at a Jan. 12 press conference in Kyiv. But on the flip side, this project’s size and cost are major risks, he added.

Pierre Berger, chairman of Vinci Construction’s department in charge of large projects, expressed concern that construction could face delays due to the lack of legislation in Ukraine regulating land ownership.

“We and our partners will have to assess the risks realistically and partially share them,” Berger said.

Officials at Vinci and Bouygues declined to provide further details. Vinci is also a member of a French consortium that is bidding to build a new sarcophagus intended to prevent radiation leaks at Ukraine’s defunct Chornobyl Nuclear Power Station.

Rudkovsky, a member of the Socialist Party, tried to calm fears about possible road blocks facing the project. The country’s governing coalition, also backed by Prime Minister Viktor Yanukovych’s Regions party and the Communists, would push legislation needed through the halls of parliament within several months, he said.

Oleksandr Romasyuk, a spokesman for Ukraine’s state roadway administration, Ukravtodor, said talks with the French construction companies have still not been held. So far, “Minister Rudkovsky is the only person who has talked to them,” he added.

Last November, the European Bank for Reconstruction and Development (EBRD) agreed to loan Ukraine 200 million euros for 15 years to back reconstruction of an existing highway connecting Kyiv with Hungary and Slovakia.

EBRD spokesperson Anton Usov said his bank would consider financing other road construction projects in Ukraine in the near future, but expressed reservations about massive projects of this kind masterminded by Ukraine’s Transportation Ministry.

Rudkovsky’s last days?

Transportation and Communication Minister Mykola Rudkovsky has been under pressure to step down in recent weeks after using his position in office to pressure Ukraine’s diplomatic core into allowing oppositionists from Turkmenistan into the country.

The oppositionists visited Kyiv in late December to give a press conference in connection with the battle for control of leadership in their country after the unexpected death of long-time Turkmen leader Saparamut Niyazov.

Ukraine’s Presidential Secretariat has called for Rudkovsky’s ouster, arguing that his move damaged bilateral relations with Turkmenistan, Ukraine’s key source of natural gas imports.

Source: Kyiv Post

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Plaited Lady Out On The Offensive

KIEV, Ukraine -- While in Jerusalem last week, Ukraine’s chief oppositionist Yulia Tymoshenko called on her fellow politicians to visit Holy Land religious sites to cleanse themselves from the dirt of Ukrainian politics.

Yulia Tymoshenko shown meeting with vice-prime-minister of Israel Shimon Peres

The call was timely given her surprising political support to Prime Minister Viktor Yanukovych’s successful efforts to overturn a presidential veto on the law on the Cabinet of Ministers. The new law expected to go into effect soon strips the president of key executive authorities and vests them in the hands of the coalition government.

Given Tymoshenko’s opposition to the political reforms that weakened the presidency during the height of the 2004 Orange Revolution, her early January votes in the Rada caused many to question her true political motives. In fact, Tymoshenko allies openly distance themselves from any rational form of democracy and state they are interested in gaining total control of state institutions with few checks and balances.

This runs contrary to the president’s agenda of correcting the current political asymmetry and refining a reliable system of checks and balances between the presidency, parliament and coalition government.

Yulia Tymoshenko’s tactical alliance with the Party of Regions will not only bring more chaos to governing institutions in the short term, but will have grave consequences on the strategic development of Ukrainian democracy for years to come.

Luckily there are at least 11 procedural and other violations of the existing Constitution within the recently passed Cabinet of Ministers law that could be used by the courts to turn back the latest attempt to usurp political power in Ukraine without a consultation with voters.

However, until the courts hear the case, the law will have taken effect and will have the following repercussions and consequences.

First, the law on the Cabinet of Ministers overridden by parliament strips the president of almost all executive authorities and places them in the hands of the prime minister. In essence, a voter’s right to directly elect the president has been violated.

Direct elections to the presidency with one set of powers have been replaced with a presidency of limited political powers – that which former President Leonid Kuchma and his top aide Viktor Medevedchuk couldn’t get parliament to pass in the fall of 2004.

Tymoshenko’s support of the Cabinet of Ministers law now fully nullifies the guiding principles and values that formed the rationale for the hard-fought 2004 presidential election that brought about the Orange Revolution.

Second, Ukraine’s existing balance of political powers between two directly elected democratic bodies – the president and parliament – will under the new law on the Cabinet of Ministers shift completely to the governing coalition.

Given the existing make-up of the parliament and the finances concentrated in the Party of Regions, de facto all political powers shift to Prime Minister Yanukovych. The president’s earlier right to disband parliament if a ruling coalition is not formed, a prime minister not nominated, a budget and national government program not passed, is vested absurdly with the parliament itself.

The result is, again, a usurpation of power without consultation with voters.

Third, the draft law on the so-called “imperative mandate,” which Tymoshenko has fought so hard for, limits direct voter representation further by giving political parties, and not the courts, the right to remove elected council representatives. If not vetoed by the president, the new law will allow party leaders to replace those local deputies who abandoned their party lists in city and oblast councils.

Most notably, this could have an impact on the make-up of the Kyiv City Council. In effect, those elected deputies who express independent views and do not follow the central party line face expulsion from party ranks and removal from public office.

While this position may gain the support of strong party discipline advocates, the protection of individual rights as guaranteed by the Constitution will be violated and their adjudication and fair application would rest not with the courts but with the central political committees of political parties – much like the system that existed during the times of the Communist Party Politburo.

So where have the Tymoshenko Bloc’s hasty actions steered Ukraine’s nascent democratic polity?

The Jan. 12 votes were brought about by a turn of events among the radicalized political faction within the Yulia Tymoshenko Bloc. The latter feared their further political marginalization by a stability pact that was to be signed by President Viktor Yushchenko, Prime Minister Yanukovych and Speaker Oleksandr Moroz in mid-February.

The president’s attempts to usher in a political culture of party coexistence and political compromise as a means toward reaching agreement on refining a democratic system of political checks and balances is a direct threat to Tymoshenko.

Given her strong showing during the 2006 parliamentary election, her immediate political goal is to amass as much Orange electorate support as soon as possible. This solidifies her positions in the Orange camp and limits potential competition from rising democratic stars such as Yuriy Lutsenko, Arseniy Yatsenyuk, Mykola Katerynchuk, Vitaliy Klitschko, and others.

To ensure she stays relevant, Tymoshenko played tactically against Yushchenko the tried and true populist trump cards of “the worse off the better.” Her only hope of achieving new parliamentary elections is to further weaken the presidency and build up an encroaching opponent in Yanukovych.

This, she hopes, will push Yushchenko to call early elections, which if held soon are likely to turn Ukraine from a multi-party democracy to a political system dominated by two highly centralized political parties with populist platforms and authoritarian tendencies: the Party of Regions and the Yulia Tymoshenko Bloc.

This turn of events would once again bring to the fore the east-west divide and put Ukraine on the road to a long-term internal struggle that could further push away prospects for Western or any other form of international integration.

Source: Kyiv Post

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Wednesday, January 24, 2007

Ukrainian Foreign Minister In Limbo

KIEV, Ukraine -- Ukraine’s Foreign Ministry has become hostage to a constitutional reform that failed to clearly define the boundaries between the remits of the legislature and the executive.

Borys Tarasyuk

President Viktor Yushchenko insists that parliament’s December 1 motion to dismiss pro-Western Foreign Minister Borys Tarasyuk was illegal, so he has to carry on in his post.

Prime Minister Viktor Yanukovych, however, believes that the country has no foreign minister, so Yushchenko should appoint one. Meanwhile, the ministry works in a legal limbo. Not only are Ukraine’s foreign partners uncertain about Tarasyuk’s status, but so are domestic officials; even the financing of the ministry is unstable.

According to the constitutional amendments passed in 2004, the president appoints the ministers of foreign affairs and defense, whereas it is up to the parliamentary majority to appoint the rest of the cabinet. The procedure for dismissing the two ministers is evidently less clear.

Yanukovych and the parliamentary majority, which is dominated by his Party of Regions (PRU), refer to the constitutional provision that says it is up to parliament to decide on dismissing ministers. President Yushchenko, however, insists that only he, as the highest official in charge of security, defense, and foreign affairs, can dismiss the ministers he appointed.

After Tarasyuk’s dismissal by parliament, Yushchenko issued a decree instructing him to remain in place. Yanukovych ignored the decree. PRU deputies then prevented Tarasyuk from attending cabinet meetings on December 6 and 20, physically blocking him in the lobby.

On December 21, Yushchenko said that he was waiting for an interpretation of the misunderstanding on Tarasyuk by the Constitutional Court, but that meanwhile Tarasyuk would represent his ministry during Russian President Vladimir Putin’s visit to Kyiv on December 22. Yanukovych did not object, at least in public, and Tarasyuk shook hands with Putin as a minister.

Yanukovych’s attitude toward Tarasyuk’s visit to the Czech Republic on January 15 was, however, different. “It damages the state when a minister with unclear status goes on such visits,” Yanukovych said. In Prague, Tarasyuk signed two documents on bilateral cooperation.

Commenting for Segodnya, Deputy Minister of the Cabinet of Ministers Olena Lukash doubted the legal value of documents “signed by citizen Tarasyuk.” Yanukovych instructed the Prosecutor General’s Office “to take measures” in relation to Tarasyuk. It has so far remained unclear what measures were meant and whether the prosecutors have taken any of them.

Yanukovych also wrote an official letter urging Yushchenko to appoint a replacement to Tarasyuk. The letter has reportedly remained unanswered.

On January 16, the Foreign Affairs Ministry issued a statement saying that Yanukovych was informed on January 10 that Tarasyuk’s visit to Prague had been agreed with Yushchenko. And Czech Ambassador to Ukraine Karel Stindl was quoted as saying that “for us Tarasyuk is still the foreign minister.” Segodnya, a newspaper linked to the PRU, explained the Czech position saying that Prague had not been properly informed about Tarasyuk’s dismissal.

The State Treasury, unsure of Tarasyuk’s status, stopped financing the Foreign Ministry as of January 1. The Finance Ministry said that it opened budget funding for the Foreign Ministry as usual, but the ministry’s bills were not paid because it did not provide the proper signatures of the officials in charge of budget funds.

The Foreign Ministry did submit signatures, but those were the signatures of Tarasyuk and his first deputy Volodymyr Ohryzko, which the State Treasury did not recognize as valid.

Tarasyuk issued a statement on January 18 describing the actions of the finance officials as an “assault on Ukrainian democracy and the national interests.” The Foreign Ministry also sued the State Treasury. The financial conflict was eventually resolved, but not with the help of courts.

On January 22, Tarasyuk told TV that Yanukovych had instructed the State Treasury to unblock his ministry’s accounts following a telephone conversation between Tarasyuk and Yanukovych.

That was obviously only a temporary solution. The sides to the conflict are waiting for a verdict from the Constitutional Court. Lower courts have been so far only complicated matters. On December 5 the court of Kyiv’s Shevchenkivsky District ruled to suspend parliament’s motion to dismiss Tarasyuk. One month later, on January 4, the Kyiv Court of Appeals canceled the district court’s ruling.

The situation is further complicated by uncertainty over the new law on the Cabinet of Ministers. Parliament overrode Yushchenko’s veto of the law that strengthens the cabinet and parliament vis-à-vis the president. Yushchenko has, however, vetoed the law again.

He explained that there were differences between the version of the law passed by parliament and the one sent to him for signing. In the case of Tarasyuk, the law is not on Yushchenko’s side, stipulating that parliament can both dismiss the foreign minister and appoint a new one if the president fails to do so.

Source: Eurasia Daily Monitor

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Russia, Ukraine To Make Huge An-124 Planes

MOSCOW, Russia -- Russia and Ukraine will jointly resume production of the Antonov An-124 cargo jet, the largest aircraft ever mass produced, a consortium said Tuesday.

Antonov An-124 aircraft

Russia`s Volga-Dnepr consortium and Ukraine`s Motor Sich have formed Flying Cargo Vehicles as a joint venture to make the An-124, whose production was halted in the early 1990s, the Russian Information Agency Novosti reported.

The joint venture will initially make two An-124 Condor heavy transport aircraft and several dozen in the next 10 years.

The aircraft -- similar in appearance to the Lockheed C-5 Galaxy, but larger -- will feature advanced avionics, upgraded power units, an increased payload capacity of up to 165 tons, an extended flight range and a smaller crew, Novosti said.

The An-124 has been used to carry locomotives, yachts, aircraft fuselages and other oversized cargo. It is able to 'kneel' to allow for easier front loading.

Source: UPI

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Ukrainian Government Restores Funding To Foreign Ministry

KIEV, Ukraine -- The Ukrainian government has restored funding to the Foreign Ministry that was cut off in the New Year amid the premier's attempts to oust Foreign Minister Borys Tarasyuk, an official said Tuesday.

Foreign Minister Borys Tarasyuk

"As of this morning ... funds have arrived in the Foreign Ministry's account," said ministry spokesman Andriy Deshchytsya.

Tarasyuk, a presidential appointee, complained last week that Prime Minister Viktor Yanukovych's government had refused to open his ministry's bank accounts this year, leaving it unable to pay the salaries of thousands of diplomats and other employees, as well as money due to international organizations or rent on embassies abroad.

Deputy Prime Minister Mykola Azarov said in televised remarks that while funding was restored to the ministry, the government would not allow the money to be used to fund "the so-called foreign minister, and that means also his foreign trips."

Tarasyuk, whose pro-Western views strongly echo those of President Viktor Yushchenko, has been locked in an escalating struggle with the Russian-leaning coalition government run by Yanukovych, which wants him out.

Last month, Yanukovych won parliament's approval to dismiss Tarasyuk, after saying he could not work with him. Tarasyuk openly advocates policies such as NATO membership, in contrast to the views of Yanukovych's party. Tarasyuk also heads a political party that has declared itself in opposition to Yanukovych.

Tarasyuk appealed his ouster in court and won, prompting Yushchenko to reappoint him. An appeals court this month overturned the lower court's ruling, and Tarasyuk is now challenging that decision.

Yushchenko and Yanukovych share power in an uneasy arrangement that came into force last year; the Constitution is unclear about the precise division of power, prompting a constant tug-of-war between the two political rivals.

Deshchytsya said Tuesday that funds were put into the ministry's account after a conversation between Tarasyuk and Yanukovych on Monday. Tarasyuk told Ukraine's 1+1 television that the premier "agreed that the situation must be rectified, and issued a corresponding order," according to the Unian news agency.

Tarasyuk said that Yanukovych demanded no concessions from him.

Source: Kyiv Post

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Tuesday, January 23, 2007

Ukraine: The Best And The Worst List For 2006

KIEV, Ukraine -- Almost everyone has a favorite list or two this time of year: best movies, best books, person of the year. For the forth year, Oksana Bashuk Hepburn puts forward her BEST and WORST list, BaWL, dealing with things of particular interest to the global Ukrainian community.

Yulia Tymoshenko with her hair down...

This years` list is particularly critical of Ukraine`s and other governments but it includes exceptional individuals, publications, organizations, awards, that contributed to or undermined Ukrainian issues in 2006.

BEST

1. Yulia Tymoshenko, leader of the Yulia Tymoshenko Bloc, for obtaining the highest number of votes in the March 2006 elections to Ukraine`s Rada, parliament among the Orange forces. And, for persistent attempts to honour the will of the people of Ukraine by cobbling an Orange power coalition for dominance in Ukraine`s parliament and attempting to form and lead a government.

2. The people of Ukraine for expressing their disapproval of President Yushchenko`s months of indecisiveness after the March parliamentary elections which led to the creation of an anti-West government by Prime Minister Victor Yanukovych .

3. Canadian of Ukrainian decent, Ed Stelmach, winner of Alberta`s provincial Progressive Conservative party leadership race. He is now the Premier of Alberta.

4. Ukraine`s media for being well on its way to meeting a global standard for independent reporting and critical analyses.

5. The Taras Shevchenko Foundation in Winnipeg, Canada for establishing the Kobzar Award to honour literary works on Ukrainian themes published in Canada.

6. Alexis Kochan, the magical Canadian singer of Ukrainian decent for her latest CD Fragmenti. Original, lyrical and beautiful.

7. Ukraine`s football team for its super performance at the World Cup in Germany this summer.

8. Heidimarie Stefanyshyn Piper, the American astronaut of Ukrainian and German decent, who flew a space mission last summer. She is the second female astronaut of Ukrainian descent in space. The first was Canada`s Roberta Bondar.

9. Jack Palance for providing prominence to his Ukrainian heritage on and off screen. Vichnaja pamjat`.

10. Canada`s Yaroslav Kokodyniak for ten years of invaluable internet services to the global Ukrainian community.

WORST

1. President Victor Yuschenko for failing to carry out the will of the people who gave the Orange forces a slight majority in the March Rada, parliament, elections by failing to call them to power for months until it was too late.

2. Victor Yanukovych , then leader of the Party of Regions, for blocking entrance to Ukraine`s Rada and denying the Orange government coalition from taking its rightful place as the nation`s government. And again, for recently blocking access to parliament to Foreign Minister Borys Tarasiuk.

3. Ukrainian diaspora organizations in the free world, including the World Congress of Ukrainians (Askold Lozsynskyj, President, wrote a personal denunciation of the events), Ukrainian Canadian Congress, for failing to condemn the undemocratic events in Ukraine-items 1 and 2 above—thus giving tacit consent to the anti-Ukrainian, anti-West, anti-democratic and pro-Russian developments which are contrary to the wishes and spirit of the Orange revolution which had swept the country the previous year and contrary to the mandates of such diaspora organizations.

4. Western governments who failed to use suasion to convince President Victor Yushchenko to honour the results of the March elections and offer the Prime Ministerial job to the Orange forces winner, Yulia Tymoshenko.

5. Minister of Energy Yurij Boyko for selling out Ukraine`s energy sector in favour of Russia, RosUkrEnergo, et al.

6. The author, signatories and all the eminent witnesses to President Yushchenko`s Universal of national unity, a worthless initiative as it has no consequence for non compliance.

7. Jerusalem Post for its anti-Ukrainian article written in conjunction with the grand opening in Ukraine of Stephen Spielberg`s film "Spell Your Name."

8. Dmytro Tabachnyk, Deputy Prime Minister of Ukraine, for his public statements undermining the Ukrainian language in Ukraine.

9. The virtual lack of protest form Ukraine`s President, Prime Minister, government the people of Ukraine or the Ukrainian diaspora calling for resignation, retraction, apology for abuses sited in # 7 and #8.

10. The self mutilation and suicide of Nasha Ukrajina, Our Ukraine, party and its inability to recoup losses by joining forces with Yulia Tymoshenko who continues to hold strong popular support with Ukraine`s people.

Source: UNIAN

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How Labor Migration Is Changing Ukraine

KIEV, Ukraine -- Several years ago Ukraine's then-president, Leonid Kuchma, referred to Ukrainian women working in Italy as prostitutes. Ever since, the public discourse on the role of labor migrants has become more intense and splintered.

Ex-President Leonid Kuchma

In recent years, Ukraine has become one of the major labor exporting countries in Europe. This has left its mark on Ukrainian society and changed the perception of the labor migrants, the zarobitchany.

As both Russia and Ukraine's European Union neighbors developed their own policies on temporary emigration and immigration, Ukraine remained trapped in a zone of indecision. Its two biggest neighbors, Poland and Russia, see the need to attract workers from Ukraine and elsewhere to mitigate problems of aging populations and the shrinking pool of workers, but Ukraine seems unprepared to counter its own demographic crisis.

Debate on migration in the media and politics is fragmented and tendentious, as proponents of different views prefer to deliver monologues on the topic rather than engage in real dialogue.

When they do talk about it, what Ukrainian experts and politicians alike often focus on is the number of migrants actually working abroad - estimates range from 2 million to about 7 million. While most scholars put forward rather conservative estimates, politicians seem to overstate the numbers of labor migrants.

The argument over the "real" number of zarobitchany develops into a political fight, in which the zarobitchany become pieces in games played by competing forces. The political opposition uses high numbers as a hammer to bash government social and labor policies that fail to prevent people from (temporarily) leaving Ukraine, and it presents itself as the advocate of "normal" Ukrainians.

THE MODERN WAY TO MIGRATE

Under this surface, the public debate on labor migrants reveals the divergent orientations and development agendas politicians or groups have ready for Ukraine. While the Polish political and intellectual elite engages in a rather "modern" debate on the current demographic and the growing labor-market crisis, and Russia oscillates between modern and traditional ideas and politics, the dominant Ukrainian discourse is characterized by traditional and "anti-modern" elements.

People talk and think about labor migration largely in terms of people traveling west to work, yet the main recipient of such migration, Russia, hardly figures in public discussion. Official and permanent migration from Ukraine to Russia has dropped after peaking in the 1990s, but much undocumented migration continues.

These migrants can easily and legally travel to Russia thanks to a visa-free policy, but most are illegally working without a permit. Workers in this group, estimated at about 1 million, come from all regions of Ukraine. Most are men who work predominantly in construction, especially in and around Moscow and other industrial centers.

One reason for the lack of concern with migration to Russia could be its perceived and unchallenged "normality," because these zarobitchany are doing nothing new. Ukrainians have long worked in Russia on a temporary basis, mostly in the form of entire brigades, and well-established networks exist that facilitate this process.

Some of these networks have a business character and some are intertwined with organized crime. What is largely unnoticed in the media is that most Ukrainians in Russia work in the shadow economy and that the present migration often takes place under much worse conditions than in Soviet times.

In contrast, labor migration to the countries of the European Union receives much more attention, thanks not only to its considerable extent but also to its distinct features and relative novelty. The Ukrainian Foreign Ministry estimated several years ago that about 300,000 Ukrainians worked in Poland, 200,000 in Italy, up to 200,000 in the Czech Republic, 200,000 in Spain, and 150,000 in Portugal.

In all these countries, they have only limited opportunities to work legally, despite some recent legal changes, legalization campaigns, and intergovernmental agreements.

Westward labor migration is more evenly balanced between women and men - in some regions, women are even over-represented - and involves disproportionately more people from central and western Ukraine.

These facts influence the tone of the discussion about westbound migration in a way that reflects Ukrainians' view of their relationship to the West, especially the EU.

WOMEN AND CHILDREN FIRST

Ukraine faces a severe demographic crisis as its population rapidly shrinks and ages. According to the last Soviet census, in 1989, Ukraine had about 52 million inhabitants. By 2002 the population had fallen to 48 million, and according to some forecasts it will keep falling to about 38 million in 2050.

Permanent emigration after the breakup of the Soviet Union contributed to the decline, but only moderately, and was partly offset as ethnic Ukrainians, Crimean Tatars, and other "traditional" nationalities returned to Ukraine from other parts of the fragmenting USSR. High mortality and low fertility rates are the main drivers of the crisis. In addition, HIV/AIDS is a ticking time bomb.

Concerns over demographic and social change, added to facts such as the high share of women workers in the West - in Ukraine's western regions, between 60 percent and 70 percent of labor emigrants are female - and the rural or small-town origin of many emigrants strengthen the claims of those who argue migration is helping undermine Ukrainian traditional life.

The absence of so many women - mothers and future mothers - from Ukraine is often painted by traditionalists as the main reason for the declining birthrate and as a cause of the decay of the traditional Ukrainian family. In this view, mothers abandon their children, and wives their husbands. In addition, it is bemoaned that Ukrainian women abroad are forced into prostitution, thus losing the moral right or even the physical ability to bear children.

The traditionalists often cast as irresponsible and selfish the women who leave their husbands and children at home in search of a new life.

They also blame recent labor migration for a perceived social decay in Ukraine. Many traditionalist social critics juxtapose Ukraine, represented by disenfranchised but decent labor migrants, against the - to say the least - morally suspect societies of the European Union. Behind this kind of argument lies a belief in the pernicious influence of the West that emerges from leftist and rightist thinking alike.

The leader of the Communist Party, Petro Simonenko, for example, not long ago attacked the "orange camp" that came to power with President Viktor Yushchenko for portraying labor migrants as active people and investors. Such people are damaging Ukrainian society, he claimed, accusing them of spreading alcoholism, drug abuse, and AIDS. In encouraging women migrants in particular, the government was undermining their true role - to bear and raise healthy children.

ONE-SIDED DEBATES

Survey research in Ukraine suggests that the migrants themselves have quite a different view and shows just how wide is the gap between what others say about migrants and how migrants see themselves. Although many had negative experiences abroad, labor migrants perceive themselves as much more actively involved in shaping their own lives than do nonmigrants.

What political recommendations and claims do the traditionalists derive from these arguments? While in Western Europe, and increasingly in Poland and even in Russia, regulated immigration is viewed as a means to counter the demographic crisis and "rejuvenate" both the labor force and the population at large, such opinions are exceptional in Ukraine. Instead, a number of ideas are in the air.

Some argue that the state should encourage the labor migrants to return to Ukraine by creating new jobs, if necessary from the state budget. Those concerned with the decay of the family call for all things detrimental to the flourishing of the traditional Ukrainian family to be combated: divorce, pornography, prostitution, birth control, and abortion.

At the same time, the countryside - where the largest share of labor migrants comes from - should be given a boost, again by budgetary means. While these are essentially ideas based on traditional views, the proposed means are rather technocratic and reminiscent of Soviet policies.

The traditionalists do not have a monopoly on public debate over migration and all the social processes associated with it. Other politicians and commentators see the trends and contradictions underscored by the phenomenon of labor migration as an inevitable part of modernization and globalization.

Work abroad can bring many material advantages to individuals and to wider Ukrainian society, they say. One of those advantages is sorely needed cash: by rough estimates, migrants remit several billion dollars annually to their families in Ukraine.

Even though this view does not deny the social problems caused by labor migration, it emphasizes that labor migration is an individual response to economic and social hardship. Some liberal experts and politicians favor a program to boost immigration. But this weakly developed debate has not yet resulted in political programs, let alone policy.

Missing from the public discussion of labor migration is serious debate between traditionalists and liberals. The zarobitchany become depersonalized figures in one faction or another's overall development proposals. Curiously, the views and experiences of the labor migrants themselves go largely unheard.

Source: Business Week

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Monday, January 22, 2007

EU Seeks Deeper Ties With Ukraine, But Holds Off On Membership Promise

BRUSSELS, Belgium -- The European Union agreed Monday to begin negotiations for closer across-the-board ties with Ukraine but — in a setback for Britain and Poland — held off on any promise of future EU membership for its giant eastern neighbor.

EU External Relations Commissioner Benita Ferrero-Waldner

At a foreign ministers meeting, Britain and Poland asked that the mandate to open negotiations for an "enhanced relationship" — leading to eventual free trade with Kiev — refer to future membership. But France and others keen on slowing future expansion blocked that, officials said.

In a compromise, the ministers issued a separate declaration acknowledging "Ukraine's European aspirations."

They added, "A new enhanced agreement shall not prejudge any possible future developments in EU-Ukraine relations."

Ukraine is one of 13 members of an EU "neighborhood" program of broad economic aid and eventual free trade that specifically excludes future membership. The others are Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority and Tunisia and — to the east — Armenia, Azerbaijan, Georgia and Moldova.

The program offers easy access to the vast EU market of 455 million consumers in exchange for economic and political reforms designed to keep the EU's fringes secure and stable. The foreign ministers boosted funding in 2007-2013 to €12 billion (US$15.6 billion), up 32 percent from 2000-2006.

This includes an offer of €1 billion (US$1.3 billion) to the most reform-minded neighbors and help trigger private lending for them.

The arms-length nature of the aid program has long irked Ukraine which in the past has expressed an interest in joining the EU.

EU External Relations Commissioner Benita Ferrero-Waldner said she hoped to begin negotiations for an enhanced cooperation to "build on our existing agreements (and) pave the way toward ... a free trade area."

Central to the enhanced relationship, she said, will be cooperation in energy. Ukraine is both a supplier of energy to the EU and an important transit nation for gas and oil from Russia.

In the 2007-2012 period, the neighborhood program will put more focus on trade, increased cooperation in energy, migration and economic issues as well as greater financial support and more help to resolve regional conflicts.

While most neighbors have made progress in economic and political reforms, poverty, corruption, unemployment, mixed economic performance and weak governance remain challenges saddling the EU with illegal immigration, unreliable energy supplies, environmental damage and problems of terrorism. In the years ahead, the EU neighborhood program will aim for:

_ a greater EU role in resolving regional conflicts

_ more aid to bolder management of weak frontiers

_ boosting free trade efforts to cover goods and services which means helping neighbors raise their norms and standards of products and services to the EU level.

_ cutting red tape for those who want visas for legitimate official travel and people-to-people programs.

_ engaging all neighbors in debating common issues such as energy, transport, the environment, rural development, research cooperation, public health, financial services and migration or maritime affairs.

Source: International Herald Tribune

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CR Promises To Help Ukraine Join EU, NATO

PRAGUE, Czech Republic -- The Czech Republic supports Ukraine’s ambitions to integrate into European structures, Czech Minister of Foreign Affairs Karel Schwarzenberg said after a meeting with his Ukrainian counterpart Borys Tarasyuk on Jan. 15 in Prague.

Czech Minister of Foreign Affairs Karel Schwarzenberg

The two ministers signed a joint declaration that their countries should cooperate in areas of foreign policy, agriculture and nuclear safety. “EU and NATO entry are Ukraine’s foreign political aims,” Tarasyuk said at the Ministry of Foreign Affairs.

Tarasyuk said that Ukraine had a law that firmly set achieving these priorities as a legal obligation. However, although chief political forces in the country have agreed on those obligations, there’s still a question as to how they will be fulfilled, he added.

“Before 2004, the aim was [hindered] by the EU’s internal policy. This was the reason why Ukraine was stagnating on the aim of entering the EU,” he said. In the past two years, Ukraine started to cooperate more with the EU on foreign political projects, which is a major shift, Tarasyuk said.

Later on Jan. 15, Tarasyuk met Prime Minister Mirek Topolánek (Civic Democrat, ODS), but the Government Office hasn’t released information about the meeting.

Tarasyuk said that this year Ukraine could sign an agreement with the EU that would simplify the visa terms between Ukraine and EU countries. “There’s also the hope that the EU will sign an agreement with Ukraine through which it will become a candidate country,” Tarasyuk said. However, there’s no consensus on the issue in the EU.

Schwarzenberg said that the Czech Republic would relate Czech experiences with EU and mediate NATO accession talks to Ukraine. “Of course we will talk to other EU countries as well in order to speed up the process,” Schwarzenberg said at a press conference, adding that Ukraine is one of the priority countries of Czech foreign policy.

“I’m happy that the first international agreement I’ve signed [as foreign minister] is with Ukraine,” Schwarzenberg said. He added that a new Czech general consulate in Donetsk, Ukraine, will open soon and the two countries’ mutual economic relations have favorably developed. “Bilateral trade turnover rose by 30 percent last year, compared to 2005,” Schwarzenberg said.

Another issue that the Czech Republic will discuss with Ukraine is oil and natural gas. “The supplies, which were long considered a matter of course, still raise certain question marks,” he said, alluding to the recent oil supply outage over a dispute between Belarus and Russia, the supplier (see “Oil cutoff pumped concern, but not crisis,” CBW, Jan. 15, 2007).

Tarasyuk, a pro-western politician and head of the right-wing People’s Movement of Ukraine doesn’t get on very well with Moscow. He’s one of the leading advocates of Ukraine’s entry into NATO and of the weakening of the Kremlin’s influence on Ukraine.

His stand sharply contrasts with that of Ukrainian Prime Minister Viktor Yanukovich, who wants closer relations with Russia.

While the joint declaration with Ukraine was the first one Schwarzenberg signed, the meeting with the Ukrainian official wasn’t his first official act. Schwarzenberg visited Slovakia Jan. 13 and met with Slovak Minister of Foreign Affairs Ján Kubiš to confirm good bilateral relations.

Source: Czech Business

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Austria's Christoph Sumann, Ukraine's Oksana Khvostenko Win Biathlon Titles

POKLJUKA, Slovenia (AP) - Christoph Sumann of Austria was faultless at the shooting range to win a men's biathlon World Cup 15-kilometre mass start race on Sunday, his second straight victory.

Oksana Khvostenko from Ukraine reacts in the finish area after winning a 12.5 km mass start race at the World Cup biathlon event in Pokljuka, Slovenia, Sunday, Jan. 21, 2007

Oksana Khvostenko of Ukraine also hit all targets to win the women's event.

Sumann, the surprise winner of the 12.5-kilometre pursuit on Saturday, won in 38 minutes, 24.18 seconds.

He was 28.1 seconds ahead of Vincent Defrasne of France, who was also flawless on the range. Andreas Birnbacher of Germany was third, with one missed target, 49.3 back.

Germany's Michael Greis overtook Norwegian Ole Einar Bjoerndalen in the overall standings by finishing in 20th place. Bjoerndalen missed the meet to train ahead of the world championships in February.

Khvostenko won the women's mass start in 41 minutes 55.9 seconds.

Defending World Cup champion Kati Wilhelm missed three targets and came in second, 13.4 seconds off the lead. Tadeja Brankovic was third, with two missed shots, 23.5 behind.

Zina Kocher of Red Deer, Alta., finished 10th.

Wilhelm missed twice in the first shooting round but rallied from 26th position. She is now top of the overall standings after the previous leader Anna Carin Oloffson placed sixth.

Wilhelm also won the 10-kilometre pursuit on Friday.

Source: Canadian Press

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Sunday, January 21, 2007

Technicality Lets Ukraine President Off The Hook

KIEV, Ukraine -- Ukraine’s pro-Western President Viktor Yushchenko has exploited a parliamentary gaffe allowing him to veto a law that would have seen his powers reduced, his office said yesterday.

Viktor Yushchenko

Yushchenko sent the bill – which would have handed a raft of presidential powers to the government led by pro-Russian Prime Minister Viktor Yanukovych – back to parliament on Thursday, a presidential statement said.

Despite a parliamentary vote ruling out his veto, the president benefited from a bizarre editorial gaffe: the new document sent back was missing a clause meaning he could treat it like a new piece of legislation.

“De facto, it was a new draft of the law that was sent” to the president, said the statement from his office.

Parliament realised the mistake, which it said was a “technical” error, and offered to send back the missing page.

The president’s office objected, saying that the bill was unconstitutional and demanding the extra clause “pass through the procedures of the parliamentary vote and only after could it be” signed by the president.

Justice Minister Olexander Lavrinovych described Yushchenko’s decision to veto the bill as a “bad joke”, accusing him of “abusing his powers”.

After a meeting with the president, Yanukovych reportedly called for a compromise.

“The law must without fault be harmonised with the constitution. We do not need superfluous powers,” he said, according to the Kommersant daily.

The Western-leaning Yushchenko faces tough resistance from Yanukovych’s pro-Russian majority in parliament.

Source: Gulf Times

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Shevchenko Should Be A Fox Not A Workhorse

LONDON, UK -- Another game and another clear signal that Jose Mourinho has completely lost faith in Andrei Shevchenko.


With his side losing 2-0 at Liverpool, and bearing in mind the kind of decisive manager Mourinho is, you would have expected to see Shevchenko come on at half-time, or at least with half an hour to go.

But he was given barely more than a quarter of an hour and, predictably, made little impact on the game.

Strikers go through difficult patches, but Shevchenko is in a particularly vicious circle: so keen is he to show his commitment that when he gets on the pitch he runs around like mad, closing down full-backs and tracking back to support the midfield. The more the pressure builds, the harder he works and the worse he gets.

Shevchenko is not - and should not try to be an English-style centre forward. His strength is drifting into dangerous positions and attacking with explosive bursts of acceleration.

With his age and his injury problems at the end of last season, Shevchenko needs more than ever to preserve his energy. Instead he is becoming increasingly drained and his influence continues to wane.

The answer, as I see it, is for him to get selfish. From what I understand he has been the absolute model professional, working with great intensity on the training pitch. But maybe instead of being so generous with his efforts he should focus back on himself.

He needs to bring back the goal-hanger, start hovering off the back of the last defender and get back to what he does best. Forget all the huffing and puffing - get back to the artful work in the box.

That is what made him great in Italy. They are more defensively sophisticated in Serie A and Shevchenko would only have to jog back into position when Milan lost possession, not go haring after a full-back.

Didier Drogba has got bags of energy and there should be no problem delegating some of the workload to him. If Shevchenko starts saving himself for those crucial, defining moments in the game, he will be far more effective than he is currently. He might even begin resembling the Shevchenko we all thought we knew.

When I first arrived at Barcelona I met this culture clash in reverse. Within minutes of my debut I went sprinting off to close down the opposition defence; after the game, three of the Barca players sat me down and asked me what the hell I was doing.

It was how I had always played. I can tell you it came as welcome news when I was told to save myself for running when we had the ball.

What makes Shevchenko's position more difficult is that he is seemingly part of some greater machinations behind the scenes. No one can really know what is going on, except the parties involved, but what is quite clear is that there are serious problems.

Is Shevchenko a Mourinho signing? The manager is implying not. Does Mourinho have confidence in Shevchenko? Obviously not. Is the striker's awkward position the main reason behind the apparent rift between manager and owner?

All I can say is that it is a particularly hard position for a striker to be in. Towards the end of my time with Barcelona I was in exactly the same kind of situation.

Johan Cruyff, who like Mourinho is a strong personality, was pushing me to the sidelines and playing me out of position when I did get on the field.

I can sympathise with Shevchenko because it is so bloody frustrating being deprived of the chance to show what you can do. I left Barcelona but you cannot really see Shevchenko moving on at the moment.

No one is going to come close to the £30 million Chelsea paid Milan to sign him and I'm sure his wages must be significant. So Chelsea need to find a way of getting the best out him.

Chelsea have to trust Mourinho. There has been speculation that Chelsea wanted to bring in Portsmouth's Israeli coach Avram Grant to do some one-on-one work with the striker, and that Mourinho was opposed to the idea.

The Portuguese is right: the moment you start letting in coaching from the outside, you lose your power base in the dressing room. Furthermore, anyone in football would know that this sort of thing is bound to fail. It is the sort of idea that comes from a chairman, not from a manager.

Shevchenko is 30 and a world-class striker, one of the best of his generation. There is nothing to coach. He needs to rediscover his edge and there is not a coach in the world who can help him with that.

Source: Sunday Telegraph

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Saturday, January 20, 2007

Donetsk Billionaire’s Beer Interests Could Be Bought Out West

DONETSK, Ukraine -- Ukraine’s beer business could further fall into the hands of leading Western brewery giants, as a major producer owned by Ukraine’s richest tycoon, Rinat Akhmetov, is reportedly up for sale.

Rinat Akhmetov

Delo, a Ukrainian business daily, cited an inside source in a Nov. 29 article alleging that Akhmetov’s holding company, System Capital Management, was engaged in negotiations to sell Sarmat Group, Ukraine’s fourth largest brewer.

The source said that Akhmetov is inclined to sell the “troubled business” after attempts to buy into a larger Ukrainian-owned brewer, Obolon, failed.

SCM has remained tight-lipped about the alleged negotiations, but analysts say the sale would make sense for Akhmetov. What’s more, a leading multinational brewer has confirmed interest in acquiring Sarmat, which controls five breweries in Ukraine.

Svitlana Dryhush, an analyst at Kyiv-based investment bank Renaissance Capital, named Dutch-based Heineken and UK-based SABMiller as the most likely potential buyers. A source at SABMiller’s London office said his company is eyeing Sarmat.

Dryhush said foreign beer groups that already have holdings in Ukraine, such as Belgium-based InBev, the parent group of SUN Interbrew Ukraine, would be wary of buying a company with Sarmat’s market share, fearing possible sanctions from Ukraine’s Antimonopoly Committee.

With three breweries in Ukraine, SUN Interbrew already holds a 37 percent market share, the largest of all beer groups present. Officials at Heineken and InBev declined to comment. Dryhush valued Sarmat at about $250 million.

Tamara Levchenko, a consumer analyst at Kyiv investment bank Dragon Capital, said $200 million was a more accurate assessment, considering the group’s below par performance last year. The company lost market share and currently holds about 9.9 percent, she added.

Acting on behalf of Sarmat, Donetsk-based brokerage house Keramet-Invest purchased 12 percent in 2002 of Kyiv-based brewer Obolon from company employees.

Sarmat originally hoped to concentrate a larger stake in Obolon, a closed joint-stock company. But the Kyiv brewer’s majority shareholders dubbed the purchases illegal and eventually withstood the corporate takeover through a long seesaw court battle.

Source: Kyiv Post

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EU To Offer Ukraine Closer Economic Ties, Maintain Entry Veto

BRUSSELS, Belgium -- The European Union will offer to deepen economic and political ties with Ukraine, while continuing to deny the ex-Soviet republic the prospect of future EU membership.

The Headquarters of the EU in Brussels, Belgium

EU foreign ministers will agree January 21 in Brussels to start talks on a "comprehensive" accord, with goals such as dismantling import and customs duties, ending investment restrictions and extending EU antitrust and food-safety standards to Ukraine, a draft EU document said.

The 27-nation EU intends to „create a new climate for economic relations” and offer Ukraine links that „go above and beyond existing commitments,” said the draft, which was obtained by Bloomberg News.

The EU also dangled the prospect of more financial aid.

The EU is trying to strengthen democratic forces in Ukraine led by President Viktor Yushchenko, who is battling for closer relations with the West against the more pro-Russian prime minister, Viktor Yanukovych.

The EU would help finance the upgrade of Ukraine's energy pipelines, seeking to lessen the impact of Russian President Vladimir Putin's moves to exert more control over oil and gas deliveries to Europe.

In a replay of last year's Ukraine oil embargo, Russia this month briefly shut an oil pipeline to western Europe in a pricing dispute with Belarus. Putin has also tightened his grip on Russian oil production.

A nod to Ukraine's „European choice and aspirations” will probably be made in a separate non-binding declaration since the vast majority of EU governments won't commit to future membership, an EU official said.

Sweden and Poland are pleading for more encouraging language, the official said.

The EU will also nudge Ukraine toward European standards for industrial products, public contracting and patents, the document said.

Help in building up democratic institutions and, at a later date, visa-free travel to Europe will also be on offer.

Source: Bloomberg

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Klitschko To Defend IBF Title vs. Austin

FRANKFURT, Germany - Wladimir Klitschko will defend his IBF heavyweight title against American Ray Austin on March 10 in Mannheim.


Wladimir (L) and Vitaly Klitschko

Klitschko last fought on Nov. 11 when he stopped Calvin Brock in the seventh round in New York.

The younger of the Klitschko brothers won the IBF and IBO titles in April 2006 with a technical knockout of Chris Byrd, also in Mannheim.

Klitschko has a 47-3 record, with 42 knockouts. Austin has a 24-7 record.

Born in Ukraine, Klitschko won the 1996 Olympic gold medal.

Source: AP

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Friday, January 19, 2007

Ukraine Police Probe Official's Death

KIEV, Ukraine -- Ukrainian police Friday investigated the death of a powerful ally of the country's Prime Minister, in what appeared to be a hunting accident.

Yevgeny Kushnaryov

Yevgeny Kushnaryov, a powerful friend and associate of Ukrainian Prime Minister Viktor Yanukovych, died earlier in the week when a member of his hunting party shot him, Britain's Independent reported Friday.

Police said they were investigating whether the shooting was intentional or if it was the result of careless gun handling or an accidental ricochet. Kushnaryov was shot while hunting wild boar with nine other hunters.

Kushnaryov served as in important figure in the pro-Russian Party of the Regions' return to power after the presidency was lost to Viktor Yushchenko during the pro-Western orange revolution in 2004.

While Yushchenko retains the presidency, a large portion of the country's governing power has been put in the hands of Yanukovych.

Source: UPI

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Ukraine Official Says Ministry Funds Cut

KIEV, Ukraine - Ukraine's foreign minister has accused the Cabinet of cutting off funds to his ministry, leaving it unable to pay its employees or contribute dues to international organizations.

Ministry of Foreign Affairs

The cutoff is the latest attempt by Prime Minister Viktor Yanukovych to oust Foreign Minister Borys Tarasyuk, a presidential appointee.

The battle is part of the ongoing political struggle between pro-Western President Viktor Yushchenko and the more Russian-leaning Yanukovych.

The constitution leaves the precise division of powers unclear, prompting a fight for authority that is largely being won by Yanukovych.

Parliament last month dismissed Tarasyuk after Yanukovych said he could not work with him. The pro-Western Tarasyuk leads a political party that has declared itself in opposition to Yanukovych's government, and he openly advocates policies such as NATO membership, in contrast to the views of Yanukovych's party.

Tarasyuk fought his ouster and won, prompting Yushchenko to reappoint him. An appeals court this month overturned the lower court's ruling, and Tarasyuk is now challenging that decision.

In a statement Thursday, Tarasyuk accused Yanukovych's Cabinet of trying to block him by refusing to finance his ministry.

"For the first time in the history of independent Ukraine, because of an illegal order from the Cabinet of Ministers to the ministry, no financing from the budget has come this year," Tarasyuk said.

The result, he said, is that Ukraine cannot pay thousands of Foreign Ministry employees, cannot send diplomats to participate in international talks and cannot pay dues it owes.

The ministry launched an appeal to the Economics Court to force the government to provide financing, Tarasyuk said.

Yanukovych's office could not immediately be reached for comment. But parliament, dominated by Yanukovych's allies, said Friday it stands by its decision to fire Tarasyuk.

Source: AP

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Real Estate Sector Lands New Players

KIEV, Ukraine -- The Ukrainian commercial real estate market continues to attract more foreign investors and developers with one of the highest yields in Eastern Europe and promising growth potential.


Over the last year, several large business properties in Kyiv have been sold to foreign investors in deals valued hundreds of millions of dollars, with more major purchases on the horizon.

The promising growth potential of the Ukrainian market and sustained economic growth are key factors that have driven foreign companies to buy commercial real estate projects from Ukrainian developers. The new arrivals are betting on long-term returns acting as tenants on the market.

In December 2006, Irish Quinn Group announced the purchase of a 93 percent stake in Kyiv’s Ukraina shopping mall, located on Victory Square. The stake in the 35,000-square-meter mall went for $59 million, the group reported.

The purchase of the Ukraina shopping mall follows on Quinn Group’s acquisition of the upscale Leonardo business center, located across the street from the city’s Opera House, in February 2006.

Vladimir Shimkin, Quinn Group’s general director for Ukraine, said his company spent nearly $95 million for Leonardo and plans to buy an addition to the center when it is completed.

He added that Quinn Group intends to make large investments into Ukrainian retail, warehouse and office real estate, directing a significant part of its billion-dollar budget at Eastern Europe.

According to Shimkin, his group does not plan to renovate the Ukraina mall, which will keep its name.

“The Ukraina shopping mall, with an average monthly rental rate of $50 per square meter, is 95 percent filled up, and no tenants want to leave it,” he said.

Shimkin is equally optimistic about the future of the high-class Leonardo business center, which took a year to fill up with shops and offices since its opening in November 2005. Rent at Leonardo ranges from $50 to $70 per square meter.

Other recent sales of Kyiv commercial real estate to foreign investors include the Pyramida Shopping Center in the city’s newly built, albeit peripheral residential area Poznyaky.

Pyramida was sold to London-based real estate company 1849 PLC for $21 million. According to 1849 PLC’s website, the company “hopes to buy and build five to 10 shopping centers in Ukraine over the course of the next two to four years.”

Last year, Turkish development company Demir Evrasian Investments announced plans to sell its Podil-Plaza business center, located in the city’s low-lying Podil district, for $50 million.

Industry insiders say that the owners of the shopping and entertainment center Globus, located at Kyiv’s epicenter, Independence Square, plan to sell it for hundreds of millions of dollars.

Realtors also expect the 21,000-square-meter A-class business center IceBerg, also centrally located, to be sold soon after its opening this year.

Terry Pickard, the managing director of NAI Pickard, the Ukrainian representative of real estate consultant NAI Global, said there are two main reasons why more foreign investors are interested in the Ukrainian property market.

“First is that after the Orange Revolution [in 2004], the Eurovision Song Contest in 2005 and many others sport and cultural events that raised the profile of Ukraine, people became aware of Ukraine as a market.”

“Then, of course, is the massive increase of the money that institutions want to put into property in Ukraine.”

Pickard said investments into some equity markets around the world have not performed very well. “Even the yields on property [in Europe] dropped to 5 percent or 7 percent if you were very lucky.”

Nevertheless, Ukraine is still perceived to be a more risky place for investments.

That’s why one sees 10-15 percent yields on property in Kyiv, which is twice as big as in Warsaw, according to Pickard.

Pickard said foreign investors prefer to buy commercial real estate that can provide “regular annual income for leasing it,” while Ukrainian investors are “far more interested in building and selling it off for a short-term quick profit.”

He added that the growth of the Ukrainian real estate market is driven largely by huge demand that will continue for the next five to seven years, keeping the price for rent in the capital at the same high level from $50 to $70 per square meter in upscale offices.

“The poor office away from the center in Kyiv will cost around $25 per square meter, and for that money you can get the best office in the center of Prague,” he said.

According to NAI Pickard, total available Ukrainian shopping-center area in 2006 was 320,000 square meters, which in 2007 could increase to 460,000 square meters.

Source: Kyiv Post

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Ukraine President Vetoes Bill Cutting His Powers

KIEV, Ukraine -- Ukraine's president said Thursday he has vetoed a bill reducing his authority for a second time, in an ongoing power struggle between him and the prime minister, and returned it to parliament.


Viktor Yushchenko (L) and Viktor Yanukovych

The Western-leaning leader, Viktor Yushchenko, had last week vetoed the bill, which if it became law would turn Ukraine into a parliamentary republic and effectively make the president a mere figurehead.

But the Supreme Rada overrode the veto with 366 votes last Friday, when a former opposition bloc joined the parliamentary majority, which supports the pro-Russian prime minister, Viktor Yanukovych.

"The bill fundamentally violates the Ukrainian Constitution. It leads nowhere; it's a deadlock," Yushchenko said.

Under the constitution, the president must sign the bill into law within two weeks of its submission by parliament. However, Yushchenko's office said that as the text of the resubmitted bill differed from that passed by parliament in late December, the deadline does not apply.

The president "sent a letter to the Supreme Rada chairman saying the text of the bill on the Cabinet resubmitted to the president for signing differed from the text of the bill parliament passed December 21, 2006," the presidential press office said earlier, explaining that one clause was removed.

Yushchenko refused to sign the bill, accusing parliament of violating the national unity pact that political leaders signed in August in a bid to end a protracted political crisis in the ex-Soviet state.

The document served as a condition for Yushchenko's backing for his former arch-rival Yanukovych as prime minister.

The new law allows the parliamentary majority to nominate a candidate for prime minister, as well as defense and foreign ministers, the latter being the president's prerogative under the unity pact.

Lawmakers also rejected every one of Yushchenko's 42 proposed amendments to the law.

The pro-presidential Our Ukraine party called the document unconstitutional, "threatening the rights and freedoms of Ukrainians," and said the country was witnessing a serious democratic crisis.

Source: RIA Novosti

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Thursday, January 18, 2007

Astelit Gets Cash Inflow To Expand

KIEV, Ukraine -- Following more than two years of rapid expansion on Ukraine’s mobile communications market, number three provider Astelit, which offers the Life:) brand, is set to receive a 50 percent increase in investment.


The fresh influx of cash into Astelit, which analysts say has incurred large losses in efforts to attract new subscribers, could help the company stay ahead of a trailing competitor and gradually muscle away market share from two sector leaders.

Majority shareholder Turkcell, which holds a 54.8 percent stake in Astelit, announced on Jan. 11 that it and Donetsk billionaire Rinat Akhmetov’s System Capital Management Group, which boasts a 44.8 percent share, were going to infuse an additional $250 million into the Ukrainian-registered company.

Astelit CEO Ahmet Tanyu, a representative of Turkcell, said his company will get the new investment funds in 2007 and the beginning of 2008. He added that both shareholders have invested $745 million into the company already.

Tanyu said his company’s subscriber base has “significantly grown” in recent years from below 1 million to more than 5 million this year thanks to “attractive tariff offers and successful promo campaigns.”

Industry experts say it has been an uphill and costly campaign incurring losses. Additional growth will require fresh investments.

Sales for the first three quarters of 2006 amounted to $128 million, while losses totaled $168 million, said Oleksandr Parashchiy, an analyst with Kyiv-based investment bank Concorde Capital.

“Currently, Astelit’s sales don’t even cover depreciation expenditures. The company is now absolutely unprofitable,” Parashchiy added.

Parashchiy said fresh investments will be directed at widening Astelit’s subscriber base and expansion of its network throughout the country.

“Astelit needs new investment in network development and marketing. Also, its tariff policy might need some revision,” said Parashchiy.

He said a lot will depend on Astelit’s ability to break the preconceptions of potential subscribers, who tend to show preference to market leaders – Kyivstar and Ukrainian Mobile Communications (UMC).

Stiff competition

Kyivstar boosted its subscriber base by 55 percent last year to 21.5 million.

UMC trailed not far behind, approaching the 20-million subscriber mark. The two leaders showed significant increases in all parameters.

Sales grew 24 percent year-on-year for UMC to $415 million, and 43 percent year-on-year for Kyivstar to $481 million.

Both operators also increased their profitability in 2006. Kyivstar posted a third-quarter profit of $231 million, a more than 50 percent increase compared with the same period in 2005. UMC posted net income of $125 million during this period, up 33 year-on-year.

Ukrainian RadioSystems (URS), a subsidiary of Russia’s Vimpelcom that offers the Beeline brand in Ukraine, has also been growing at double-digit levels but trails behind Astelit. The company had about 1.5 million subscribers late last year.

Astelit’s Tanyu played down his company’s losses and expressed optimism about the challenges ahead, saying his company has performed excellently, considering it has been on the market only two years.

“It is normal for a start-up business not to be profitable in its first years of operation,” he said.

Turkcell teamed up with Akhmetov to set up the Life brand mobile telecommunications service in 2004. UMC and Kyivstar had an edge in gobbling up market share, having been established in the 1990s. A total of $2.1 billion has been invested into UMC since its inception; more than $1.9 billion has been invested into Kyivstar’s business.

URS also traces its roots to the 1990s, but bold expansion plans were derailed in connection with a shareholder conflict. Rapid expansion shifted into high gear after Ukraine’s Privat business group sold the company in late 2005 to Russian-based Vimpelcom for $231 million. Vimpelcom has committed $500 million through 2010.

Source: Kyiv Post

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Study: Ukraine Still Hovers In Ranks Of ‘Unfree’ World Economies

KIEV, Ukraine -- It would seem that Ukraine has been slipping in its efforts to create a business-friendly environment, if a recent rating by the United States-based think tank Heritage Foundation in cooperation with The Wall Street Journal is to be believed.


Heritage Foundation President Dr Edwin Feulner presents Hong Kong Chief Executive Donald Tsang with a copy of the 2007 Index of Economic Freedom.

According to the Foundation’s 2007 Index of Economic Freedom, which was released on Jan. 16, Ukraine scored 53.3 on a 100-point scale, ranking 125th out of the 157 countries rated.

A score between 50 and 59 percent means that a country’s economy is “mostly unfree.” Higher scores label a country as “free” while lower indexes indicate that a country’s economy is not “free,” and that significantly more barriers face businesses and entrepreneurs.

In this year’s 13th annual Index of Economic Freedom, Ukraine scored 2.2 percentage points lower than last year, partially reflecting new methodological detail that was used in research, the Heritage Foundation reported.

In the 2006 Index of Economic Freedom, Ukraine was ranked 99th out of 161 rated countries.

The Foundation rated Hong Kong, with an overall score of 89.29, the most economically free country in the world, with the United States trailing behind in fourth place at 81.98.

Ukraine’s fellow former Soviet Republic Estonia came in 12th place with 78.13. Even lackluster Armenia did surprisingly well – 69.43 – earning it a claim as the world’s 32nd most “economically free” country.

In addition to Ukraine, Russia (120th), China (119th) and Poland (87th) all fell into the rating’s “mostly unfree” category.

The Index rates countries’ levels of business, monetary, financial, investment, trade, labor and fiscal freedom. Freedom from government and corruption, as well as the strength of property rights, is also measured.

This year, Ukraine scored well in trade freedom with “an average tariff rate that is low.”

The Foundation rated Ukraine’s fiscal freedom as high, with a relatively low personal income tax of 15 percent, top corporate income not exceeding 25 percent, and overall revenue from taxes not compromising a high percentage of the nation’s gross domestic product.

However, Ukraine was considered weaker in freedom from government, monetary freedom, investment freedom, property rights, and freedom from corruption.

“The overall freedom to start, operate and close a business is restricted by the national regulatory environment,” according to the Foundation’s findings.

Investment freedom was assessed as very low due to complex regulations, corruption and weak protection of property rights, which are major deterrents to foreign investors. The country’s financial system was estimated as small but growing, with more purchases in the banking and insurance sectors.

“Ukraine has 166 licensed banks, most of which are very small, including 28 wholly or partially foreign-owned banks. Despite 338 registered insurance companies, the insurance sector is small. Capital markets are underdeveloped and poorly regulated,” the report reads.

Source: Kyiv Post

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AC&M Says Ukraine's Mobile User Base Up To 49.670 Mln On Dec 31

MOSCOW, Russia -- The total subscriber base of Ukraine's mobile operators, as measured by the number of valid SIM cards, rose to 49.670 million users as of December 31 from 43.944 million users as of November 30, Advanced Communications & Media (AC&M) said in a report Wednesday.


Kyivstar (L) and UMC SIM cards

SIM card penetration in Ukraine rose to 104.3% as of December 31 from 92.3% as of November 30, AC&M said.

Kyivstar accounted for 43.3% of the total subscriber base in December, UMC accounted for 40.3%, while Astelit and URS accounted for 12.1% and 3.8%, respectively.

Kyivstar and UMC accounted for 42.7% and 41.8% of the increase in Ukraine's total subscriber base in December, respectively, while Astelit accounted for 10.5% and URS for 4.9%.

Source: Prime-Tass

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Wednesday, January 17, 2007

Defeat Leaves Yushchenko Powerless

KIEV, Ukraine -- The man who led Ukraine's orange revolution two years ago has been transformed into a lame-duck president following a humiliating parliamentary vote that in effect strips him of all powers.


The President, Viktor Yushchenko, no longer has the power to veto the choice of prime minister or foreign minister. Officials from Mr Yushchenko's Our Ukraine party described the vote as unconstitutional. They were preparing a challenge before the constitutional court, they said.

Mr Yushchenko seems to be the big loser in Ukraine's latest constitutional battle, which has paralysed the country over the past year because of internal power struggles.

Mr Yushchenko lost his responsibilities after his ally-turned-rival, Yulia Tymoshenko, decided to vote with the party of Ukraine's pro-Russian Prime Minister, Viktor Yanukovich.

In late 2004 Mr Yushchenko and Ms Tymoshenko led the orange uprising against a rigged presidential election. Mr Yushchenko duly beat Mr Yanukovich to become president.

But following elections last March the President was forced to appoint Mr Yanukovich as prime minister in August after his own allies, including Ms Tymoshenko, failed to form a government.

Mr Yushchenko and Ms Tymoshenko had fallen out a few months earlier, each accusing the other of corruption.

This week one of Ms Tymoshenko's closest advisers shrugged off the suggestion that she had betrayed the orange revolution by siding with Mr Yanukovich, her former enemy.

"This is an absurd argument," Hryhoriy Nemyria said. "We have never signed any kind of pact with Yanukovich. Ukraine's constitution doesn't function properly … Voting with Yanukovich was the lesser of two evils. We now want early elections." #

Last Friday, 366 MPs voted to override Mr Yushchenko's veto of a bill outlining the powers of the cabinet, well above the 300 votes needed. They also shot down 42 other proposals by the President to amend the bill.

Analysts said Mr Yushchenko - who is due to keep his presidential job until 2009 - had seen his powers steadily whittled away.

"He's been a potential lame duck since last year," said Andrew Wilson, a Ukraine specialist at University College London. "This is his last throw of the dice."

Although Mr Yushchenko appeared to be nearing the end of his political career, it did not mean Ukraine's orange revolution was finished, Mr Wilson said.

"The rules in Ukraine are different from the rules before the revolution," he said.

"The media is freer. And this is very much the cut and thrust of normal politics."

Source: The Sidney Morning Herald

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Ukraine’s State Railway Company Inches Closer To High-Speed Standards

KIEV, Ukraine -- Bold plans to revamp Ukraine’s aging Soviet railways, eventually launching a high-speed passenger train network appear to have gotten back on track.


Transportation Minister Mykola Rudkovsky announced that the state railway company, Ukrzaliznytsya, was close to inking a deal on the purchase of about 20 brand new high-speed passenger trains from France’s Alstom, a leading producer of high speed trains and other technologies.

The new trains, each of which will cost about $70 million, are expected to begin service in 2010. Ukrzaliznytsya, which currently subsidized passenger transportation by charging higher tariffs for cargo, is seeking various financial instruments to fund the massive overhaul.

Rudkovsky said Ukraine hoped to bankroll the project through long-term financing from the French government and international banking institutions.

Implementation of the project will require significant modernization of Ukraine’s tracks, as Alstom’s trains can reach a speed of up to 250 kilometers per hour, he added. The average speed of Ukraine’s current passenger and cargo trains is 50 kilometer per hour.

Ukraine has in recent years gradually modernized its dilapidated railway infrastructure. Efforts are expected to shift into higher gear thanks to fresh capital raised through foreign borrowings.

Late last year, parliament approved a much anticipated $120 million loan earmarked for railway infrastructure. Ukraine’s government signed the loan deal with the European Bank for Reconstruction and Development in August 2004, but it took a new parliament, in November 2006, to ratify it, with President Viktor Yushchenko giving final approval last month.

The EBRD loan is for 15 years with an interest rate of LIBOR + 1 percent.

Ukrzaliznytsya will use the loan to purchase new carriages, modernize existing track and build a tunnel, according to the Transportation Ministry.

Ukrzaliznytsya Volodymyr Kozak said implementation of the project could start as early as the second quarter of this year. During the first stage of the project, Ukrzaliznytsya will spend $47 million on the purchase of new passenger carriages, $29 million on track machinery and $40 million to build a tunnel in the country’s Zakarpattya Region.

Officials at Ukrzaliznytsya are happy to finally receive the loan but insist that billions of dollars worth of upgrades are needed before genuine high-speed train service can be introduced.

Zal Shakhbaz, vice president at Alstom in charge of business development, told Ukraine’s business daily Ekonomicheskie Izvestiya that his company was ready to supply carriages that would work within Ukraine’s current railway infrastructure.

Source: Kyiv Post

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Ukraine Lawmaker Severely Injured In Hunting Mishap9i

KHARKIV, Ukraine -- Evhen Kushnarev, Ukrainian parliamentary and one of the leaders of the country's pro-Russia political faction, was shot and badly injured while hunting, the Interfax news agency reported on Tuesday.


Evhen Kushnarev

Kushnarev is one of the top figures in the Regions Ukraine political party, whose political strength is based in the industrial east and south of the country.

An unknown person or persons shot Kushnarev one time in the stomach, while the former Donetsk province governor was hunting alone in a Kharkiv region nature reserve.

Kushnarev reportedly returned to a hunting lodge unassisted to tell associates "some one fired a shot" before collapsing.

It was not immediately clear whether the shooting was an accident, or an attempted killing.

Surgeons at provincial hospital in the town Izium operated on Kushnarev to stop severe bleeding in his liver. The operation was still in progess by early Tuesday evening.

Kushnarev, an outspoken politician, is widely unpopular in the pro-Europe portions of Ukraine, in no small part because of his public suggestion during Ukraine's 2005 Orange Revolution the country's Russian-speaking East secede, by force if necessary.

Regions Ukraine under Kushnarev's guidance regained control over the Ukrainian parliament in September 2006, and pushed through a series of laws dramatically weakening the country's pro-Europe executive branch.

UPDATE: Ukrainian MP Yevhen Kushnariov has died, Regions Party faction MP Anna Herman told Interfax-Ukraine. Kushnariov suffered a cardiac arrest while in the intensive care unit of a hospital at the town Izium, Kharkiv region.


Source: DPA

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Ukrainians Arrested For Smuggling Pork Fat

HORLOVKA, Ukraine -- Russian border police on Monday arrested a group of five Ukrainians attempting to smuggle three tons of raw salted pork fat across the international border, the Interfax news agency reported.


Ukrainian "salo"

The arrests took place in the early morning hours after Russian troops detected three automobiles attempting to exit Russian territory via a field near the village of Gorlovka, in Ukraine's eastern Donetsk province.

Russian law enforcers arriving on the scene halted three GAZ sedans, each crammed with a ton of raw salted pork fat, cut into slabs and wrapped in newspapers.

The GAZ-24 Volga is an economy-sized automobile with a cargo capacity of some 500 kilos.

The three arrested drivers and two passengers explained that the vehicle convoy was moving off-road to reduce travel time back to Gorlovka village, incidentally avoiding border checkpoints in the process.

Russian authorities released the suspects later in the day after filing smuggling charges. The vehicles and fat were impounded.

Raw salted pork fat, or "salo," is considered a delicacy in Ukraine, where it is known as the national food.

Three tons of "salo" would retail in the Ukrainian capital Kiev at approximately nine thousand dollars.

Source: DPA

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Tuesday, January 16, 2007

Ukraine's Premier Asks Prosecutor To Block Borys Tarasyuk As Foreign Minister

KIEV, Ukraine -- Ukraine's premier appealed to prosecutors to stop Borys Tarasyuk from continuing as foreign minister, accusing the pro-Western minister of harming national interests, the Cabinet press office said Tuesday.


The embattled FM Borys Tarasyuk

Prime Minister Viktor Yanukovych's appeal is the latest move in a power struggle between him and President Viktor Yushchenko.

The two share power in an awkward arrangement that was initially billed as an effort to unite Ukraine, but instead has turned into a tug-of-war for control - with Yushchenko losing.

Parliament last month dismissed Tarasyuk, a presidential appointee, at Yanukovych's request. After Tarasyuk appealed his ouster and won, Yushchenko reappointed him.

This month, Ukraine's appeals court overturned the lower court's ruling and Tarasyuk is now challenging that decision.

Yanukovych's office said in a statement that prosecutors should act to stop Tarasyuk's activity, "which is harming the interests of the state, negatively reflecting on Ukraine's image, and influencing the results of activity by the Cabinet of Ministers in the sphere of foreign politics and foreign economic relations."

Yanukovych's appeal came after Tarasyuk made an official visit to the Czech Republic on Monday, a trip the premier insisted was not authorized by his office.

During the visit, Tarasyuk met with his Czech counterpart and gave a talk entitled, "Ukraine on the path to NATO and the EU," the Foreign Ministry said.

Tarasyuk's views in support of NATO membership and shaking off Russian influence are in line with Yushchenko's policies, but they contrast sharply with Yanukovych's more Russian-leaning approach.

Yanukovych's office also noted Yanukovych did not approve Tarasyuk's vacation, which he interrupted to make the visit to the Czech Republic, nor the trip itself.

"In this way, Borys Tarasyuk can't be considered an official figure," the statement said.

There was no immediate comment from either Yushchenko's office or Tarasyuk on the appeal.

In the struggle with Yushchenko, Yanukovych appears to have the stronger hand, particularly after parliament last week approved a new law outlining powers of the Cabinet.

Yushchenko had vetoed the measure, saying it undermined the balance of power between the president and ministers, but lawmakers overrode him.

The law greatly weakens the president's constitutional right to appoint the foreign and defense ministers.

Source: Kyiv Post

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Ukraine Wants In On Nabucco Pipeline

SIGHETU-MARMATIEI, Romania -- Ukrainian President Viktor Yushchenko said Monday the country was keen on participating in the Nabucco gas pipeline project.


Nabucco gas pipeline project

Ukraine has expressed interest in the Nabucco project, he said at a joint news conference with Romanian President Traian Basescu on Monday in Sighetu-Marmatiei, Romania.

The comments were reported by the Interfax-Ukraine news agency.

He said the project's implementation was of great interest to Ukraine, adding he would send a written proposal to Romania on the project.

The $5.94 billion, 2,050-mile-long pipeline would carry Central Asian gas to Austria through Turkey and bypasses Russia.

It is expected to start operations in 2011 and carry 26 billion to 32 billion cubic meters of gas a year.

Source: Earth Times

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Monday, January 15, 2007

Yushchenko Faces NATO Referendum Problem

KIEV, Ukraine -- Signatures have been collected in Ukraine in favor of holding a referendum on membership in NATO and the Single Economic Space -- a loose economic union with Russia, Belarus, and Kazakhstan.


SDPU chairman Viktor Medvedchuk (L) with Vladimyr Putin

The Central Electoral Commission (CEC) has confirmed that the signatures are valid. Pro-Western President Viktor Yushchenko is against the referendum, however, because the answer on NATO will most probably be no, as NATO is unpopular in Ukraine.

What initially looked like a hopeless campaign by political outsiders may badly affect the country’s NATO membership prospect. The SES membership issue is not as controversial, as apparently neither Yushchenko nor Prime Minister Viktor Yanukovych is against it in principle.

The signature collection campaign was launched by the Social Democratic Party-United (SDPUo) of Viktor Medvedchuk, a former key aide to former president Leonid Kuchma, in October 2005.

The SDPUo, along with the Communists (CPU), used the issue in the run-up to the April 2006 parliamentary election to capitalize on the pro-Russian sentiment in eastern and southern Ukraine. This did not help them much, as the SDPUo lost the election, and the CPU got only 20 seats in the 450-strong parliament.

In any case, the organizers submitted to the CEC in March 2006 far more than the three million signatures legally required for a referendum.

At least 200,000 signatures were falsified, and 28 related criminal cases were launched, according to CEC chief Yaroslav Dadydovych. Nevertheless, on December 29 the CEC officially approved the validity of more than four million signatures.

Davydovych told a press conference that the commission has done what it legally was obliged to do, and now it is up to Yushchenko to sign the relevant decree to schedule the vote. Yushchenko’s secretariat has not concealed its skepticism. The secretariat will check the authenticity of the signatures once again, Yushchenko’s press secretary Iryna Vannykova announced on December 30.

Yanukovych was less doubtful. “A state body not subordinated to any branch of power [i.e. the CEC] has delivered its verdict, which we have to abide by,” the press service of Yanukovych’s Party of Regions quoted him as saying. Yanukovych noted that this is probably not the best time for a referendum on NATO and the SES, but “if we live according to laws of a democratic society, we have to respect and fully abide by democratic principles, irrespective of the context or individuals involved.”

The CPU, predictably, welcomed the development. CPU leader Petro Symonenko urged parliament on January 9 to do all it can to compel Yushchenko to call a referendum.

Segodnya, a newspaper critical of Yushchenko, has quoted analyst Volodymyr Malynkovych as saying that, according to the constitution, Yushchenko will have to call a referendum. But Yushchenko may delay this for as long as he wants, as no law compels him to make a decision immediately, Malynkovych noted.

Another expert quoted by Segodnya, former parliament deputy speaker Viktor Musiyaka, pointed to a discrepancy between the constitution and the 1991 law on referenda, which obliges parliament’s presidium -- a body scrapped more than a decade ago -- rather than the president to set the date for a referendum.

Analyst Volodymyr Fesenko told Segodnya that neither Yushchenko nor Yanukovych are interested in a referendum on NATO and the SES. He suggested, however, that Yanukovych might push for such a referendum if Yushchenko insists on a referendum to reverse constitutional reform.

This means that Yanukovych and the majority in parliament, which supports him, may use the NATO and SES referendum threat as a tool to thwart Yushchenko’s plan to reverse the constitutional amendments that significantly weakened the president vis-à-vis parliament.

Popular support for NATO membership has been hovering around 20% during the past six years or so, according to various opinion polls, so the negative result of a referendum is easy to predict. Another referendum on the same issue may be held only after five years, according to the law on referenda. The same law leaves to parliament the option to override referendum results by a two-thirds vote.

Yushchenko’s Our Ukraine bloc, which is the only consistently pro-NATO force in parliament, is very far from controlling two-thirds, even if it secures support of the opposition Yulia Tymoshenko Bloc. This means that a referendum on NATO could put off Ukraine’s membership bid until at least 2011, when the next parliamentary election is due to be held. It will also strengthen doubts in the West about the seriousness of Ukraine’s NATO choice.

The Declaration of National Unity that both Yushchenko and Yanukovych signed in August 2006 stipulates that a referendum should be held as the last stage of the NATO accession process.

The Declaration is more ambiguous on the SES, containing no referendum requirement, linking Ukraine’s membership of SES to World Trade Organization rules and urging a free-trade zone as the prerequisite for full participation in the SES. Opinion polls show that more than half of Ukrainians support SES membership for the country.

Source: Eurasia Daily Monitor

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Sunday, January 14, 2007

Former Ukrainian PM In Israel

JERUSALEM, Israel -- Former Ukrainian Prime Minister Yuliya Tymoshenko is in Israel for talks with government leaders.


Former Ukrainian Prime Minister and current opposition leader Yulia Tymoshenko reacts during a visit to the Yad Vashem Holocaust Memorial in Jerusalem January 14, 2007.

Tymoshenko is expected to meet with Likud Chairman and former Prime Minister Binyamin Netanyahu, Vice Premier and elder statesman Shimon Peres and Yisrael Beitenu Chairman and Strategic Affairs Minister Avigdor Lieberman during her visit.

The former Ukrainian leader will also meet with Jewish Agency Chairman Ze’ev Bielski on Sunday.

She visited the Yad Vashem Holocaust memorial museum earlier in the day.

Source: IsraelNN

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A Taste Of U.S. Family Life, But Adoption In Limbo

TERRYVILLE, USA -- During the two weeks that Marino and Debbie Prozzo welcomed a Ukrainian orphan in their home, they fell head over heels for a 7-year-old child they may never be able to adopt.


Marino and Debbie Prozzo with a Ukrainian orphan who visited them as part of a program showcasing children available for adoption.

While the Prozzos were giving Alona Malyovana her first bubble bath, teaching her to use the remote control, and buying her a pink velvet dress trimmed in bunny fur, the chaotic system of adoption in Ukraine was growing more chaotic.

The director of Ukraine’s new Department for Adoptions resigned, leaving the fate of the nation’s 90,000 orphans in limbo. A new application process required foreign families to quickly update security clearances and other time-sensitive information. Prospective parents anxiously scanned the State Department’s Web site and bulletins from the embassy in Kiev for clarification of rules and rumors.

Hosting programs, like the one that brought Alona to an American family this Christmas, showcase older children, generally from orphanages in former Soviet bloc nations. The programs have long been hailed as an effective marketing tool by adoption experts, who say 8 of 10 families would not adopt these children without a trial run.

In the largely unregulated world of international adoptions, these programs often lead to happily-ever-after, but sometimes end painfully. Ukraine and Russia place formidable obstacles in the path of parents, among them inaccurate information about children’s availability and health status.

Multiple families can wind up competing for the same child. And children themselves know they are auditioning for what the industry calls their “forever families.” Then there is an entrenched system of favors — requests for cash or gifts from facilitators, translators, judges and others who handle the mechanics of adoption overseas.

Conditions in both countries have grown so unsettled, some agencies have suspended hosting programs, and the debate is growing about the ratio of risk to reward. Do the many success stories for older orphans make up for the heartbreak when adoption is thwarted?

The Prozzos had been deceived before by an intermediary who showed them a photograph of an adorable child they later learned was not available. So their guard was up before Alona’s visit in December.

“We won’t let this child call us ‘mama’ or ‘papa’ because we aren’t,” Mr. Prozzo said. But Alona’s visit had barely begun when she jumped into his outstretched arms and called him “papa.”

“Now what?” Mr. Prozzo said, melting. “Now what?”

The quandary for agencies in the United States these days is how to balance optimism and pessimism when the prospect of a successful adoption is anyone’s guess. “In an ideal world we wouldn’t be doing it this way,” said Adam Pertman, executive director of the Evan B. Donaldson Adoption Institute, a research organization. “But we haven’t come up with a better solution.”

The fee for the two-week hosting visits, organized by adoption agencies and humanitarian organizations, is $2,500 per child, which includes travel, bilingual escorts and a sizable donation back to the orphanages (subsequent adoption costs average $25,000).

Often, the formal disclaimers and informal predictions by program directors seem at odds. Frontier Horizon, the humanitarian agency that last month brought over 50 orphans, Alona among them, states unambiguously in its printed materials that it is “a travel program not an adoption program.”

But Vincent Rosini, president of the organization, says that his group has been host to 300 Ukrainian orphans since 2000 and that only five families have been unable to adopt the children they wanted. One hundred of Frontier Horizon’s children have been successfully adopted, Mr. Rosini said.

“Is there a good chance?” Mr. Rosini asked. “Yes. Is it 100 percent? No.”

Adoption experts on both sides of the hosting debate agree that the children know they are auditioning for adoption, and that the families quickly grow attached.

“The child has raised expectations, regardless of what they’re told,” said Judy Stigger, director of international adoption for the Cradle, an agency in Evanston, Ill. “And the parents become more emotionally invested than they appreciated because when you hold a specific child in your arms, your whole body feels it, responds and remembers. That child quickly becomes yours.”

In countries like Ukraine, it is all but impossible to manage expectations. Adoption authorities insist that families cannot request children who spent time in their homes, but rather must come to Kiev, by invitation, look at pictures and go to orphanages to meet the children offered to them.

Both the Cradle and Maine Adoption Placement Services, an agency that suspended its Russian hosting program in 2004, are known for their excellent connections in former Soviet bloc nations and are sometimes hired as “fixers” by families who went through other agencies when the children visited only to find they could not adopt them.

At MAPS, Betsy Bewsey, the director of international adoption, said that “right now things are as volatile as I’ve ever seen them.” She cited stringent regulations in China, announced last month, which will complicate adoption in the country, long considered the “fail-safe” because of an efficient bureaucracy and healthy infants.

The volatility in these countries, and especially the suspension of several hosting programs from Ukraine and Russia, has contributed to a dip in overall international adoptions by Americans, according to Thomas DiFilipo, the president of the Joint Council on International Children’s Services.

The high-water mark came in 2004, when 22,884 immigrant visas were issued to orphans in the process of formal adoption — more than triple the number in 1990. In 2006, visas fell to 20,679. In that two-year span, visas to children from Ukraine fell to 460, from 723. Russia’s visas dropped to 3,706, from 5,865.

Families like the Prozzos can be easy marks for scoundrels. Agencies that do international adoptions need not be accredited, although that will change if the United States ratifies a treaty to regulate intercountry adoption, expected sometime this year.

More than 300 agencies have applied. By all accounts, only one international adoption facilitator in America has been shut down, Yunona USA of Napa, Calif., in 2005. Yunona allegedly defrauded at least 100 would-be adoptive parents of more than $1.1 million by posting photos of Russian and Ukrainian children on its Web site, taking deposits from families and later saying the children were not available. The Prozzos chose a child from the Yunona Web site but had not yet paid a deposit when they learned she was unavailable.

Yunona’s president, Ivan Jerdev, faces a $386,000 default civil judgment. He is believed to have fled to his native Russia after the police raided his office in December 2005, law enforcement officials said. The Yunona case, which did not involve hosting programs, led California to pass the nation’s strictest law regulating adoption facilitators, which went into effect on Jan. 1.

In a complaint against Adopt-A-Miracle, in Evergreen, Colo., investigated by the Denver Better Business Bureau, Lourdes Blanco of Miami said she had selected a Ukrainian infant off the agency’s Web site, learned the baby girl had already been adopted but was assured she would find a comparable child if she traveled to Kiev.

Ms. Blanco made two trips, she said, only to be told there were no healthy children. The case was settled when the agency refunded $10,000 of more than $20,000 in fees and travel expenses.

In responding to the bureau, Adopt-A-Miracle’s executive director, Charlotte Allen, described the process as “enormously challenging” because simple information about a child’s status is often unavailable. “It may seem incredible,” Ms. Allen wrote. “But this is the way it is.”

Faya Fromm, 13, formerly of Siberia, knows well how expectations can be dashed in an orphanage. Twice, she was told “we’re sending you to a family in America who might want to adopt you.” The first time she was not chosen for the hosting trip.

The second time she wound up with Linda Fromm, 56, of Ridgewood, N.J., who had three grown children from an early marriage.

When a summer hosting program ended, Ms. Fromm “skated around” what to tell Faya, saying she would “fly like the birds and swim like the fish to come visit you.” It took her nine months to assemble her dossier and take a second mortgage on her home to pay for the 2003 adoption.

During that time, Ms. Fromm could not call the orphanage. But she sent Faya notes and photo albums, with $5 bills tucked between the pages.

It was a long, uncertain wait for the girl, who described another disappointment: She was shown to an Italian family, then told they would be back for her the next day. Faya was kept out of school, dressed in her best clothes and waited in the director’s office. The family never returned.

Siberia at that time encouraged families to adopt children after a home visit. Not so Ukraine today. At Faya’s urging, Ms. Fromm invited Ira and Olga Chyrkova, 9-year-old twin girls, to spend the holiday as a trial run for adoption.

It was Faya who told the twins her mother’s plans “She will try to bring you back next summer,” Faya told them. “And she’s going to try to adopt you.”

Then midway through, Ms. Fromm was crushed to learn that Olga and Ira were not cleared for adoption yet. Their mother had been murdered, but her death certificate was missing and necessary to prove the girls’ status as orphans.

Mr. Rosini did not directly reassure Ms. Fromm he could pull strings at the orphanage, but mentioned, in passing, that the director had recently asked for a new coat.

Such requests, Mr. Rosini said, are common. One orphanage director threatened to cancel a hosting trip unless he helped her raise money for a new health clinic. A Frontier Horizon family who donated $25,000 is now scheduled to adopt a child who visited four times.

Families might be asked by an orphanage director for $400 for a new meat slicer, Mr. Rosini said, or a facilitator will tell them that two weeks’ worth of paperwork could be expedited in two days if he had a fax machine. “We’re used to it,” Mr. Rosini said.

The children come off the plane with the clothes on their backs and a small knapsack. Some, veterans of hosting programs who had never been chosen, also arrive with their defenses up. Twelve-year-old Lesya Otya was slow to warm to Jeannie Fillatti, 49, of Avon, Conn., until it was nearly time to go.

But, in the car headed to the airport — with newly pierced ears, her first brassiere and a ski tag on her parka from a weekend in Vermont — the girl buried her head in Ms. Fillatti’s lap, unconsolable.

A promise from Ms. Fillatti that Lesya could return for next summer’s hosting program was unpersuasive. “They don’t know what to think, how to hope, whether to hope,” said Ms. Fillatti, who had tried before to bring back a child and been rebuffed.

When the time came to pass through the security doors, Lesya wailed her protest, in the English she had recently learned: “No! No! Not yet!”

This was Alona’s first visit, and with no history of disappointment, her departure, with her Christmas bounty of designer jeans and cowboy boots, was composed. Mrs. Prozzo, without eye makeup because she was prepared for a tearful parting, sent her off with a kiss and a murmured “I love you.” She and her husband had plenty to talk about when they got home.

The couple — he is a 53-year-old engineer and she is a 48-year-old librarian, re-examining in middle age their decision not to have children — knew from the start that Alona might not be available for adoption or that she might be snapped up by another family while they prepared their dossier.

They vowed that they understood the long odds. “But that was two weeks ago,” Mr. Prozzo said after Alona returned to rural Zaporozhye. “Now it’s a different story. I love this child.”

And so he hatched a plan. The Prozzos would ready themselves to travel to Ukraine and consider the children offered. Only then, with great deference, would he beg officials to match them with Alona.

“When I’m sitting in front of the guy, man-to-man,” Mr. Prozzo said, “I’ll say, ‘Sir, can you understand this?’ ”

Meanwhile, Mr. Prozzo said he had made a donation to a charity in Zaporozhye that was raising money for hospital equipment. Maybe the donation will improve his adoption chances. If not, Mr. Prozzo said, at least it will improve medical care for the orphans left behind.

Source: The New York Times

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Saturday, January 13, 2007

Ukraine Lawmakers Curb President’s Power

KIEV, Ukraine -- Rivals of President Viktor A. Yushchenko passed legislation in Parliament on Friday to curb his powers sharply, with enough votes to thwart a veto.


It's just a matter of time before Yanukovych (R) starts impeachment procedures against Yushchenko (L)

The measure was driven by supporters of Prime Minister Viktor F. Yanukovich, who lost to Mr. Yushchenko in the presidential election after the so-called Orange Revolution in 2004.

The bill would deprive Mr. Yushchenko of the power to reject Parliament’s choice of a prime minister and to pick the defense and foreign ministers. It would also limit presidential decrees.

Members of the president’s party stormed out after the vote.

“We are speaking here about a factual destabilization of the state power in Ukraine,” one official, Arseniy Yatsenyuk, told reporters.

He added that Mr. Yushchenko would challenge the vote in the Constitutional Court, even though the Constitution states that he has to sign it into law.

Mr. Yanukovich said the bill would allow government to work more effectively. “We will use the powers to solve many problematic questions in the country,” he was quoted as saying by the Ukrainska Pravda Web site.

Source: New York Times

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Rezidor Opens 2 New Properties In Kiev And Fujairah

BRUSSELS, Belgium -- The Rezidor Hotel Group has signed an international management agreement in order to develop and operate the Radisson SAS Airport Hotel Kiev.


Radisson SAS Hotel Kiev

The new hotel with approximately 300 rooms, conference and wellness facilities will open its doors by the end of 2009 as the second Rezidor-property in town – the company already runs the centrally located Radisson SAS Hotel Kiev.

“We are looking forward to a fruitful cooperation with V.I. Center LLC, the hotel’s owner”, comments Kurt Ritter, President & CEO of The Rezidor Hotel Group.

“This new project underlines the importance the Ukrainian market has for us – we see a great potential in CIS as well as in Russia.”

Besides Russia and CIS (Commonwealth of Independent States), the United Arab Emirates belong to the most important markets for The Rezidor Hotel Group.

In the small Emirate Fujairah – 90 minutes away from Dubai and surrounded by blue seas and rugged mountains – the company will open the Radisson Al Aqah Beach Resort at the end of 2009.

The new property will be built directly at a private stretch of the white Al Aqah Beach and offer excellent water sport facilities including scuba diving.

The resort will feature approximately 320 rooms, 3 restaurants, a spa & health club, meeting facilities and a wedding hall.

“The United Arab Emirates are a fascinating and fast growing market”, adds Kurt Ritter, “the potential for new and exciting developments is excellent, and we are glad to be part of it.”

Source: Hospitality Net

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Friday, January 12, 2007

Ukraine’s Constitutional Crisis Drags On

KIEV, Ukraine -- Ukraine in 2007 will not move ahead if it cannot resolve its constitutional crisis. As we have seen in 2006, the constitutional question influences domestic politics (relations between parliament and the president), economics (relations between the government and the president) and foreign policy (as most glaringly seen in parliament’s dismissal of the foreign minister ) in Ukraine.


Ukraine's constitutional crisis has led to disputes in parliament

The answer as to what should be done over the constitutional crisis is a complicated one that has many nuances.

In comparative perspective with other post-communist countries, Ukraine’s move from a semi-presidential to a parliamentary-presidential system is good for its democratization.

The 27 post-communist states can be readily divided into parliamentary systems which have progressed in democratization and presidential systems that have regressed into autocracy.

The first group is based in central-eastern Europe and the Baltic states -countries that have joined the EU and NATO. The second group is in the CIS, most of whom have no intention of joining the EU or NATO.

A good argument could therefore be made that if a CIS state has a strategic objective of joining the EU and NATO, then it should follow the path of central-eastern Europe and reform its political system from a presidential to a parliamentary one.

Only three countries in the CIS desire to join the EU – Ukraine, Moldova and Georgia – while only two seek to join NATO – Ukraine and Georgia.

Moldova is the only CIS state with a full parliamentary system, where parliament elects the president. Ukraine has a parliamentary-presidential system with separate elections for parliament and the president.

Following the Orange Revolution, Ukraine moved from a presidential to a parliamentary system. Georgia, on the other hand, moved toward a super-presidential system after its Rose Revolution, the opposite direction to that undertaken in Ukraine.

Although there have been some criticisms of the autocratic style of President Mikhail Saakashvili, Georgia is progressing better than Ukraine.

Although a move to parliamentarism in central-eastern Europe has proven to be beneficial, the same may not be the case for Ukraine. Simply put, the circumstances of countries in central-eastern Europe and those in the CIS (‘path dependence’ in political science jargon) are very different.

Georgia’s path of presidential-led reforms may be more suited to CIS states.

Although some central-eastern Europe countries had autocratic leaders, such as Vladimir Meciar in Slovakia and Franjo Tudjman in Croatia, they pale in comparison to autocrats in Russia and the CIS. Meciar accepted the victory of his democratic opponents in 1998, while Tudjman died in 1999, paving the way for the victory of the opposition a year later.

Although Tudjman was guilty of some war crimes, these pale compared to the deaths of 100,000 people in Russia’s brutal war in Chechnya.

Ukraine’s Orange leaders therefore faced a far different opponent, the likes of whom did not exist in central-eastern Europe or the Baltic states. In Georgia the opposition remains weak and fractured within the New Rights-Industrialists and Democratic Front factions in parliament.

There is no possibility of a return to power by political forces loyal to former President Eduard Shevardnadze or his autocratic Ajarian ally Ruslan Abashidze. The opposition in Ukraine was initially dispirited, but rebounded to win the 2006 elections.

The Rose Revolution coalition continues to be united. In fact, the two main parties in the National Movement-Democratic Front (EM-DP) united into the United National Movement. Contrast this with the split in the Orange camp only nine months into the administration of President Viktor Yushchenko.

Only the Bloc of Yulia Tymoshenko remains true to the Orange ideals. Yushchenko betrayed them in September 2005, and after the 2006 elections, when he negotiated with the Party of Regions and the Socialists, betrayed them in July 2006, when the Socialists defected to the Anti-Crisis coalition.

A major difference between Georgia and Ukraine has also been in the type of leader who came to power. In effect, the radical wing of the Georgian Rose Revolution won the presidency; in other words, the equivalent of Yulia Tymoshenko winning in Ukraine.

The Tymoshenko Bloc has been consistently against constitutional reforms and voted against them in December 2004. Our Ukraine’s stance, on the other hand, has been contradictory and opportunistic: In December 2004, they voted in favor of them and today they call for the abolition of constitutional reforms.

If Ukraine’s ‘Saakashvili’ (i.e. Tymoshenko) had been elected president in 2004, there would be fewer demands today for the abolishment of constitutional reforms.

Unlike Yushchenko, Tymoshenko would find sufficient political will, self-confidence and ability to exercise power to be a successful counterweight to Prime Minister Viktor Yanukovych.

Saakashvili’s performance in Georgia shows three factors absent in Ukraine. First, it brought to power a highly motivated and, in the words of Georgia’s leading analyst Ghia Nodia, “impatient” group of younger politicians.

Nodia points to Saakashvili’s “massive energy” in pushing forward reforms. Similar energy has been absent from the Yushchenko administration.

Second, Saakashvili defines himself in opposition to his predecessor Shevardnadze, whom he constantly criticizes. In Ukraine, former President Leonid Kuchma is only a negative ‘other’ for Tymoshenko, but not for Yushchenko, who has never once criticized Kuchma after he was elected.

Orange voters expected at the minimum a moral denunciation of the Kuchma regime, or at a maximum his trial for abuse of office. They received neither and have as a consequence defected en masse to Tymoshenko.

Third, Saakashvili has self-confidence in his policies and actions both domestically and abroad. The same is not true of Yushchenko, particularly in the energy sector.

Even Belarusian President Alyaksandr Lukashenka seems more determined to stand up for his country’s national interests in his dealings with Russia than Yushchenko did in the January 2006 gas crisis.

Constitutional reforms have proven to be flawed for a host of reasons outlined above. They were rushed through parliament in the Dec. 8, 2004 ‘packet’ without widespread public discussion, national referendum or removal of its weaknesses.

The Constitutional Court has every ground to consider constitutional reforms “illegal,” according to U.S. Judge Bohdan Futey, a longtime adviser to Ukraine on legal questions.

Without this step, 2007 will be one of stagnation for Ukraine that could lead to the gains of the Orange Revolution being slowly removed.

Source: Kyiv Post

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Ukraine's Domestic And Foreign Prospects For 2007

KIEV, Ukraine -- Ukraine’s domestic and foreign prospects in 2007 depend upon the resolution of the political and constitutional crisis that began in 2006.


Yanukovych's first 150 days in office have been widely criticized

Failure to resolve this ongoing crisis will lead to stagnation and a possible retreat from some of the gains of the Orange Revolution.

This year will see the continuation of the Viktor Yanukovych government and the anti-crisis parliamentary coalition. The coalition’s Achilles heel is the Socialist Party (SPU), which has little possibility of being elected to the next parliament as long as it continues to remain in the coalition.

The Yanukovych government’s first 150 days have been widely criticized inside Ukraine for a lack of strategy, disinterest in reforms, no transparency, and the return of discredited personnel from the Leonid Kuchma era.

This year will also see growing demands for the Constitutional Court to reverse the infamous constitutional reforms, which transferred some presidential powers to parliament. U.S. Judge Bohdan Futey, a long-time adviser on legal reform in Ukraine, told Ukrayinska pravda that Ukraine’s constitutional reforms could be considered “illegitimate.”

The Yulia Tymoshenko Bloc, which has consistently opposed the reforms, and Our Ukraine will support their reversal.

The constitutional reforms could be abolished through a national referendum this year, as the Constitutional Court mandated in a November 2006 ruling. The Party of Regions has threatened to add two additional questions to any referendum, such as supporting the elevation of Russian to a second state language and on Ukraine’s membership of NATO.

The Tymoshenko Bloc has been consistent in its demand for early parliamentary elections, although leading deputy Mykola Tomenko is skeptical that this will take place in 2007. Starting this fall, the opposition will therefore begin to prepare for the October 2009 presidential elections.

President Viktor Yushchenko will increasingly be seen as a lame-duck president, and that the main election contest in 2009 will therefore be between Yanukovych and Tymoshenko.

This year will also see the growth of a united opposition to the anti-crisis coalition that will build a protest movement similar to that which emerged during the Kuchmagate crisis.

Then and now, the main opposition force is the Tymoshenko Bloc, with the difference being that it now has the second-largest parliamentary faction.

The Tymoshenko Bloc has been strengthened by an alliance with the Reforms and Order Party. The opposition coalition will be augmented by defectors from Our Ukraine grouped around Mykola Katerynchuk’s European Platform for Ukraine and SPU defector Yuriy Lutsenko’s Civil Movement for People’s Self-Defense.

In the foreign policy domain, Ukraine’s 2007 prospects look poor. The domestic crisis and the failure to re-establish an Orange coalition following the March 2006 parliamentary elections has led to a de facto return of multi-vectorism in Ukraine’s foreign policy.

Multi-vectorism is a product of different foreign policy orientations espoused by the president and prime minister. One anticipated foreign policy success is Ukraine’s entry into the WTO ahead of Russia, which will give Kyiv added leverage in its trade and energy negotiations with Moscow.

In addition, the EU has offered to begin negotiations with Ukraine on a free trade area following its WTO membership. These negotiations will begin in the second half of 2007, but they are unlikely to be concluded until the first half of 2008. Ukraine will also negotiate a visa-free regime with the EU.

This year will be the last of the ten-year Partnership and Cooperation Agreement (PCA) between the EU and Ukraine. An Enhanced Agreement and European Neighborhood Policy-Plus (ENP+) will replace the PCA. However, neither of these two formulations, like the PCA, offers future EU membership for Ukraine.

These developments will strengthen the European vector in Ukraine’s foreign policy and, coupled with an increasingly more belligerent Russia, will make the CIS Single Economic Space less attractive for Ukraine’s elites.

The greatest disappointment in 2007 will be in Ukraine’s relations with NATO. Ukraine’s opportunity of being invited into a Membership Action Plan (MAP) at NATO’s November 2006 Riga summit was squandered by the inability of President Yushchenko and Our Ukraine to place national interests above personal conflicts with Tymoshenko.

Ukraine’s recent cooperation with NATO is at a higher level than that under Kuchma, as Ukraine was invited in 2005 to join the Intensified Dialogue on Membership.

Nevertheless, Ukraine is continuing the Kuchma-era policy of intensive cooperation with NATO while not seeking membership. NATO membership will not return to the domestic agenda until the country’s next election cycle (in 2009-2011) is completed.

Intensive cooperation with NATO could be undermined if Defense Minister Anatoliy Hrytsenko is removed, as the anti-crisis coalition has threatened following its unconstitutional dismissal of Foreign Minister Borys Tarasyuk in November 2006.

Hrytsenko is the only Orange minister left in the Yanukovych government, and his support for Ukraine’s NATO membership is at odds with that of the anti-crisis coalition and government.

Source: Eurasia Daily Monitor

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Thursday, January 11, 2007

Dispute Stalls Ukrainian-Iranian Aircraft Project

KIEV, Ukraine -- More than a decade after signing a nearly $200 million contract with Ukraine’s aviation industry for help in manufacturing a passenger aircraft, Iranian officials say the terms of the contract have not been fulfilled.


An-140 aircraft

With Iran increasingly isolated by the West over its controversial nuclear program, countries like Ukraine stand to forge stronger trade ties in high-tech industries like aviation, but the 1995 licensed production deal between the two countries has hit a snag.

An Iranian diplomat in Kyiv and a representative of the Islamic republic’s state aircraft production company have accused Ukrainian state aviation industry players such as the Kharkiv State Aircraft Manufacturing Company of holding up their country’s plans to build dozens of Ukrainian designed An-140, a short-range turbo-prop jet.

In response, Ukraine’s Antonov Design Bureau has charged that the Iranians delayed contract payments.

Besides Russia, Iran is the first country with which Ukraine has contracted to facilitate the licensed production of one of its aircraft designs.

Ali Asghar Mehrabi, a counselor at the Embassy of Iran in Ukraine, said that his country has already paid Ukrainian state-owned companies $120 million for assistance in launching the serial production of an Iranian An-140 aircraft, the IRAN-140, but that the money could have been spent better.

“Eleven years after the contract was signed, only four aircraft have been manufactured. Starting in 2000, there should have been 12 produced per year,” he told the Post.

The 15-year contract was signed in 1995, and, according to Mehrabi, Iran was to have started putting out An-140s with increasing frequency, but parts from Kharkiv have become more expensive and delivered with less reliability.

“Given all the price increases, the cost of assembling one aircraft is now higher than buying a Western one,” said Mehrabi.

The contract, signed by Iran Aircraft Manufacturing Industries Company, or HESA, obligated Ukrainian state-owned companies not only to supply parts, but to renovate Iran’s production facilities, train Iranian personnel and license the planes.

According to Iranian officials, a plant in Isfahan, central Iran, began producing their country’s version of the An-140 in 2001 – two years later than provided by the contract.

Sources told the Post that the contract is worth $192 million and stipulates the manufacture of at least 24 passenger planes.

Mohammad Moazzam, the director of HESA’s representative office in Ukraine, said the contract gives Iran the option to assemble some 80 aircraft over 15 years, Moazzam said, adding that manufacturing of some parts was to be gradually shifted to Iran.

According to Moazzam, the making of one IRAN-140 was originally to cost no more than $6.5 million, but 11 years later the price has climbed to $12 million.

The Iranian aviation official said HESA now plans to sign direct contracts with Ukrainian parts manufacturers instead of relying exclusively on Kharkiv.

Moazzam said aircraft buyers in his country are “thirsty for aircraft.”

For its part, Ukraine’s aviation industry blames the Iranians for the delays, citing slow receipt of payments.

Andriy Savenko, a spokesman from the Antonov Design Bureau, which designed the planes, said the price changes cited by the Iranians were due to their delays in payments for parts.

Antonov representatives who recently returned from Iran heard no complaints from Iranian officials, he added.

“There were periods when they [HESA] did not make any payments … literally for years … and therefore no work was being done,” Savenko said.

The Iranians have picked up the pace in making payments only recently, as their country’s problems with the West have made it even more politically isolated and thus at a loss for Western trade partners, he added.

The U.N. Security Council voted unanimously on Dec. 23 to impose sanctions on Iran for refusing to suspend uranium enrichment, increasing international pressure on the government to prove that it is not trying to make nuclear weapons.

In the meantime, the Kharkiv plant, which the Iranians have blamed the most for holding up production of the IRAN-140, is less sour about the deal.

Kharkiv plant spokesman Serhiy Araslanov told the Post that the misunderstanding was due to the fact that the licensed production agreement was something new for the two sides, but declined to discuss the contract details.

“As long as both parties are interested in making the project work, all the problems associated with it will be solved,” he said.

Source: Kyiv Post

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Truck Drivers Detained For Smuggling Cigarettes Via U.S. Diplomatic Cargo

KIEV, Ukraine -- The international delivery services used by the United States Embassy in Ukraine may not be as secure as one would expect.


Last month, Ukrainian customs officers discovered forty cartons of contraband cigarettes in a truck carrying a load of U.S. diplomatic cargo, but officials on both sides dismiss any suggestion of smuggling by embassy personnel.

The contraband cargo, which was seized at the Polish-Ukrainian border, was apparently loaded on the truck by the drivers.

Vitaly Kuchman, chief of the Yagodin Custom’s Post in Ukraine’s western Volyn Region, said the cigarettes were being smuggled by the truck’s two drivers.

The incident was in no way “the fault of the embassy,” he told the Post. The 18-wheeler Volvo truck didn’t belong to the U.S. embassy in Ukraine, he added.

According to the Vienna Convention on Diplomatic Relations, diplomatic shipments cannot be inspected by customs officials unless tampering is suspected. In this case, according to Kuchman, the drivers had broken the seal on the shipment and placed the cigarettes among the rest of the legitimate diplomatic shipment, which consisted of embassy personnel’s personnel effects.

The cigarettes, all L&M brand, were not listed anywhere on the truck’s inventory and were confiscated by border officials.

L&M brand cigarettes sell at just over 50 cents per pack in Ukraine but can be resold at prices several fold higher in European countries, where taxations on tobacco products is significantly higher.

While much larger shipments of contraband cigarettes have been seized at Ukrainian borders, smuggling 400 packs of L&M cigarettes could earn the drivers $1,000 or more in extra cash.

According to news reports, the truck was carrying the goods from Ukraine to Germany. Cigarettes are generally two to threefold more expensive in neighboring Poland and even more expensive further west.

Representatives of the press office at the U.S. Embassy Kyiv refused to comment on the specifics of the shipment or its seizure.

“We’re aware of the incident but because it was border control who discovered it, we’re referring everyone to their offices,” said Ryan Koch, assistant to the information officer at the embassy.

Koch said this was the first he had ever heard of such an incident occurring.

U.S. diplomats’ personal effects and furniture are usually shipped using contractors, who are “awarded their contracts based on past performance and willingness to meet security requirements, among other factors,” Koch told the Post.

The two Ukrainian suspects are currently awaiting trial. They are expected to face charges of smuggling and tampering with diplomatic cargo.

Source: Kyiv Post

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Wednesday, January 10, 2007

American Airlines, Ukraine's AeroSvit Make Interline Agreement

FORT WORTH, USA -- US carrier American Airlines and the Ukraine's largest carrier AeroSvit Airlines have entered into a special pro-rate agreement that promises to significantly increase travel between the two countries.


This AeroSvit-American Airline agreement recognizes the Interline accord whereby, airline partners accept each other's travel tickets.

Passengers have the opportunity to travel with one airline's ticket on the flights of the other carrier.

This commercial agreement came into effect on Jan. 1, 2007.

Source: Forbes

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Ukraine: Still No Farmland Sales

KIEV, Ukraine -- Ukraine's parliament overrode a presidential veto on Tuesday to extend a moratorium on the sale of farmland, a decision that will keep some of Europe's best soil from going on the market for at least another year.


A Ukrainian farm

The parliament's governing coalition pulled together 367 votes to overturn the veto by President Viktor Yushchenko _ safely above the 300 needed _ and extend the ban until 2008.

Ukraine, once known as the bread basket of the Soviet Union, has allowed the private ownership of land for years, but the land code exempted farmland. The moratorium was due to expire at the end of last year, but parliament voted in December to extend it for another year to give lawmakers time to pass laws to better regulate the land market.

Yushchenko, however, vetoed the moratorium, arguing that it violates the constitutional rights of Ukrainians to do what they want with their property.

Farming associations warned that without proper regulations, rural residents would lose their land holdings to wealthy speculators. They feared that Ukraine would see a repeat of the privatization of industry that followed the Soviet breakup, when factories were snapped up at below market prices.

Ukraine has about 81 million acres of agricultural land, which experts say could be valued at around $60 billion.

"We are not against land sales, rather we want to see a civilized land market," said Ivan Kyrylenko, a member of the Yulia Tymoshenko bloc, which joined with the governing coalition to override Yushchenko's veto.

Yushchenko's chief-of-staff, Viktor Baloha, said in a statement that the president would sign not seek to veto the moratorium again. However, he called on lawmakers to create the necessary conditions to begin land sales within a year, Baloha said.

Source: AP

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Tuesday, January 09, 2007

Ukraine's Economy Proves It Can Survive - And Flourish - Despite Gas Price Hike

KIEV, Ukraine -- The warnings in Ukraine verged on the apocalyptic when Russia sharply raised prices for natural gas a year ago. Many feared factories would close, leading to mass layoffs and grinding industry to a halt.


Hire prices on Russian gas did not adverseky affect Ukraine's economy.

But Ukraine's economy leaped ahead, its businesses quickly adapting to the higher costs.

Now that other former Soviet republics have been hit by price hikes for Russian gas, Ukraine's experience offers them a ray of hope, analysts say - but note that Ukraine has advantages that newly hard-hit countries such as Belarus and Georgia lack.

Ukraine's economy grew by about 7 percent in 2006 despite Russia's nearly doubling its price for gas and appears in good position to absorb this year's further increase.

In 2005 Ukraine paid $50 per 1,000 cubic meters of Russian gas, but now pays $130. The dispute led to temporary reductions of supplies to Western Europe and raised wide concern about Russia's reliability as an energy partner.

Proportionately, the increase was bigger than Russia imposed on Georgia and Belarus with this year. Georgia agreed to pay $235 per 1,000 cubic meters, up from the $110 it was paying previously. Belarus will pay $100 per 1,000 cubic meters this year, slightly more than double the US$47 it paid in 2006.

But unlike Belarus, whose economy is mostly state-controlled, Ukraine's economy was open and flexible when the gas increases hit. And unlike Georgia, Ukraine has diversified industry and alternative resources to fall back on.

Ukraine was the largest gas importer of the former Soviet countries, able for years to ignore its wasteful habits due to the ready supply of cheap gas that Moscow had provided. But once Russia forced the price hikes, Ukrainian industry took action.

The steel industry - the driving force of the country's economy, but also one of the biggest energy users - has led the push, tapping into what had been extremely healthy profit margins to foot the bill.

Following the lead of competitors in Asia and the West, Ukraine's big metallurgical plants began chucking out gas-guzzling furnaces for those that use pulverized coal.

The initial investment is steep, around $26 million-$33 million per furnace, but the payoff is a process that requires almost no natural gas and cuts production costs considerably. It also uses a resource that Ukraine already has in abundance.

"All of our new blast furnaces will be fueled by pulverized coal," said Ihor Korytko, a director of Metinvest Holding's YenaKyivsky Metallurgical Factory. "Within several years, we plan to fully stop the use of natural gas in blast furnace production. In steelmaking, we already aren't using any gas now."

Mikhail Berger, a Russian economic analyst, told Russia's Ekho Moskvy radio that by raising prices, Russia did Ukraine "a colossal favor."

"The Ukrainian economy has begun to arrange itself under the realities of the market, and when it overcomes this gas withdrawal - like a drug withdrawal - it will become truly competitive," he said.

Some Ukrainian businesses forged their own gas deals with Russia's natural gas giant Gazprom, in a move that helped keep them afloat but which may ultimately hurt Ukraine by further weakening the Ukrainian state gas monopoly's reach and bargaining power, said Vadim Karasyov, head of the Kyiv-based Institute on Global Strategies.

In the meantime, Ukrainian politicians have been flirting with other possible energy sources. Last year during a visit to Chornobyl, President Viktor Yushchenko used the 20th anniversary of the world's worst nuclear accident to say that Ukraine shouldn't rule out building new nuclear power stations.

Officials also say coal deserves a wider look. Some estimates suggest that Ukraine has the ninth-largest coal reserves in the world. Coal Industry Minister Serhiy Tulub recently proposed building seven new coal mines as a way to increase production.

Previously, such an idea likely would have sparked international criticism. Coal mining in Ukraine is notoriously inefficient and dangerous, and for years, Kyiv was advised that unproductive mines should be closed and miners retrained.

"But with all countries trying to see if they can use their own internal resources better, I think if Ukraine can do this in an energy-efficient and environmentally friendly way, Europe will be much more supportive," said Zenyo Baran, a senior fellow at the Washington, D.C.-based Hudson Institute.

Ukraine is also being pushed to develop its own gas reserves, which are believed to be significant. The country produces about 20 billion cubic meters of its own gas, which is meant to cover non-industrial needs and therefore protect the population from sharp price increases. But Ukraine lacks modern drilling equipment to develop additional gas reserves, and Western groups ready to invest hundreds of millions of dollars complain that their contracts aren't being honored.

Developing the gas reserves could help individual Ukrainians, who have had a harder time absorbing the price hike than industries. Many saw their home gas bills more then double, which triggered protests against the government. Officials have promised to try to shield the poorest residents as much as possible from the increases.

Belarus and Georgia might have a trickier time, analysts say. Ukraine's export-driven industries were buoyed by high world prices and could invest in energy-saving technology, and the country has significant alternative energy sources to tap into - things both Georgia and Belarus lack.

"It was easier for Ukraine to go with these market changes," said Tomas Fiala, head of Ukraine's Dragon Capital investment house.

Source: Kyiv Post

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Ukrainian Plane Crew Arrested On Suspicion Of Intending To Fly Drunk

BERGEN, Norway -- Norwegian authorities detained the captain, co-captain and five other crew members of a Ukrainian giant An-22 cargo plane on suspicion of intending to fly while drunk, the Associated Press reports.


An-22 cargo plane

The seven Ukrainians were taken into custody at Flesland Airport, which serves Norway’s second largest city of Bergen, after airport security officials believed that they smelled of alcohol before an early morning flight.

The crew was being blood-tested and would be interrogated, Asbjoern Andersen, operations leader for the district police, said by telephone.

The Ukrainian embassy had also been informed, he added.

The suspects were part of a 17-member crew on the An-22, which is the world’s largest propellor plane. The planes were built in Russia during the Soviet era.

Police said the plane’s ownership was not immediately clear.

The aircraft was in western Norway to pick up oil industry equipment for transport to Baku, the capital of Azerbaijan.

Source: MosNews

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Monday, January 08, 2007

Belarus Blocks Russian Oil Deliveries To Germany, Poland And Ukraine: Report

MINSK, Belarus -- Belarus has ordered a halt to deliveries of Russian oil that goes via its territory to Germany, Poland and Ukraine, the Interfax news agency reported Monday citing an official from the Belarusian section of the export pipeline.


Belneftekhim, a large state Belarusian industrial concern that includes chemical plants, ordered the suspension of transit of oil through the Friendship pipeline to Germany, Poland and Ukraine, Interfax quoted the unidentified official as saying.

The head of the Russian state pipeline operator Transneft, Semyon Vainshtok, on Monday accused Belarus of siphoning off Russian oil destined for Europe since Saturday, the RIA-Novosti news agency reported.

Source: The Globe and Mail

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Dynamo Seek Sheva Return

KIEV, Ukraine -- Andriy Shevchenko's former boss has urged the striker to return to his home country, calling his move to Chelsea a mistake.


Andriy Shevchenko

The £30.8million Chelsea striker has scored a dissapointing three goals in the Premiership since his summer switch from AC Milan and was recently warned by manager Jose Mourinho that he is no longer guaranteed a first-team shirt.

Shevchenko's former boss at Dynamo Kiev, Igor Surkis, wants the Ukrainian to return to his homeland and told The Sun: "Going to Chelsea was the biggest mistake in Andriy's career.

"(AC) Milan president Silvio Berlusconi will never take Andriy back.

"I hope I'll be able to offer Sheva a deal that will allow him to return to Dynamo."

Source: ITV Sport

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French Actor Depardieu Holidays With Ukraine's 'Orange Revolution' Leader

KIEV, Ukraine -- French actor Gerard Depardieu arrived in Ukraine to celebrate Orthodox Christmas with the former Soviet republic's President Viktor Yushchenko in a state palace in the Carpathian mountains.


French actor Gerard Depardieu (R) arrived in Ukraine to celebrate Orthodox Christmas with the former Soviet republic's President Viktor Yushchenko in a state palace in the Carpathian mountains.

"I hold in high respect the president (Yushchenko) and love dearly Ukraine," he said upon his arrival in the country, according to pictures transmitted on local television.

Depardieu, who shot to international fame in the 1980s and 1990s with hits such as "Jean de Florette" and "Cyrano de Bergerac," has previously made an advert for a telecoms company in Ukraine and owns vineyards here.

He was invited to the country by Yushchenko and his wife Kateryna.

He said last July that he liked Ukraine "because (French novelist Honore de) Balzac was in love with a Ukrainian princess," and that he admires Yushchenko, the hero of the "orange revolution."

Two years ago, hundreds of thousands of Ukrainians camped out in the cold of central Kiev to protest against the rigging of presidential elections.

The uprising, dubbed the orange revolution, brought in a government headed by Yushchenko and appeared to mark Ukraine's decisive turn toward democracy and the West.

Depardieu was expected to stay in Ukraine's western Ivano-Frankivsk region, to where he flew Friday, till early next week, Interfax news agency said.

Orthodox Christmas, which is observed in Russia, Ukraine, Serbia and other countries, is celebrated on January 7, which corresponds to December 25 in the old Julian Calendar.

Source: AFP

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Sunday, January 07, 2007

Region Keeps Close Watch On Ukraine

WILMINGTON, USA -- When Ukraine Prime Minister Viktor Yanukovych visited Washington in December to talk with the Bush administration about Ukraine’s economic progress, he met with Vice President Dick Cheney and Secretary of State Condoleezza Rice.


Viktor Yushchenko (L) is pro-Western, while Viktor Yanukovych is pro-Russia

But Orysia Hewka, executive director of the Ukrainian Educational and Cultural Center in Jenkintown, Pa., kept her distance, even though she was invited to take part in the Washington ceremonies. She declined, she said, because she could not bring herself to meet Yanukovych.

“The new minister is constantly running back and forth to Moscow,” she said, adding that he stopped there on his way to Washington.

Hewka is wary of Russian interference. She points to the deadly famine in Ukraine under the Stalinist regime – in which millions of Ukrainians died in the early 1930s – as “what Soviets are capable of. They’re the ones who built the gulags and put our people in prisons,” she said.

While that might seem like a long time ago, feelings about the famine still run deep among Ukrainians. Ukraine’s parliament, the Supreme Council, officially declared the famine an act of genocide on Nov. 28. The gesture was something Ukraine President Viktor Yushchenko had pushed for, signifying that the stockpiling of wheat and border restrictions enacted by the Soviet Union in the 1930s was tantamount to mass murder.

“The passage of genocide act was a moral victory,” said Yaroslav Bilinsky, 74, of Newark, who was born in Ukraine and is a professor emeritus of political science and international relations at the University of Delaware.

The suppression of human rights that existed in Ukraine until the breakup of the Soviet Union in 1991 is also on the minds of many Ukrainians who don't want to see their country return to the old ways -- especially Ukrainians who came to the United States seeking freedom.

They view Yanukovych as a man twice convicted of crimes who wants to maintain close ties with Russia. Yushchenko, on the other hand, supports a Western-style democracy and is even married to an American.

Uneasy partnership

The president and prime minister are a political odd couple. While Yushchenko is the country's top leader, Yanukovych's party has a majority in parliament, which assures support for his initiatives, and the scales of authority are tipping lately toward him.

The two leaders opposed each other in the 2004 presidential election. Yanukovych appeared to have won it. But amid massive demonstrations by Ukraine citizens alleging vote-rigging -- a movement that was referred to as the Orange Revolution -- the country's Supreme Court overturned the results and called for another election that Yushchenko won.

In the spring of 2005, Yanukovych made a comeback, winning the parliamentary election to become prime minister.

The two politicians govern as an uneasy tandem. The law does not provide much guidance on how their power should be shared. Constitutional reforms that took effect this year stipulate that Yushchenko cannot fire Yanukovych, and Yanukovych cannot ignore the president.

The two leaders frequently clash over foreign policy, Cabinet appointments and government business. Yanukovych controls the country's finances. But in December, Yushchenko vetoed the 2007 budget, dealing a blow to his rival. It was the first time in Ukrainian history a president vetoed a parliament-approved budget drafted by the government.

Keeping the country together

Yanukovych's appointment by the Supreme Council was a move designed in part "to make sure there was no breakup of the Ukraine," professor Bilinsky said.

"There were threats that certain parts of the country could go to Russia," he said. "But it is a very strained relationship, especially since Yushchenko himself was poisoned in 2004, and he wasn't able to clarify the real cause of the poisoning."

Bilinsky also distrusts Yanukovych. "He's essentially [Russian President] Putin's man, as I see him. For that reason, the Ukrainian-American community has great reservations, and I think justified reservations about Yanukovych.

"I would tend to see what is going on in the Ukraine as Putin's takeover, part two," he said. "Part one was the 2004 election."

The Rev. Stephen Hutnick, pastor of Saints Peter and Paul Ukrainian Orthodox Church, said he usually steers clear of politics because he is a priest. But he understands the political situation in Ukraine is a volatile one.

"It becomes very difficult, because Russia can't afford to lose Ukraine with its wealth of wheat and food supplies, and also natural resources," he said. "When you look at the whole situation, nobody wants to lose a good thing."

Fears of return to communism

As a third-generation Ukrainian-American, Hutnick also understands what is at stake.

"Once you've tasted freedom, you don't want to be oppressed again," he said. "In that election, they came out in droves because they thought they were cheated in their right for a democratic vote. They wanted to think their vote counts."

Ukrainian-American Victor Melnychenko, 68, of the Newark area, also said he is not political. But, he added, "They tried to kill Yushchenko, and it didn't succeed, and it backfired on the communists. And anything that goes bad against the communists, I'm glad.

"The fact that there was a peaceful protest over there, the Orange Revolution, you would have never heard of that under the communist regime, because they would have squashed it."

Source: Delaware Online

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Saturday, January 06, 2007

Poverty-Hit Ukraine Enjoys Boom In Property Prices

KIEV. Ukraine -- One of Europe's poorest countries, Ukraine, is enjoying an unlikely property boom that has delighted developers but left many ordinary Ukrainians out in the cold.


Kiev construction

Some properties have rocketed in value by 600 per cent in the past three years, and prices in Kiev, the capital, reportedly rose by up to 25 per cent in the last two months of 2006 alone.

Property investors and people who already owned their homes have been the big winners. But young Ukrainians and renters now find themselves shut out of the market, with no prospect of buying.

"I'm young and I rent an apartment and make pretty good money, but I can't even afford to get a mortgage," said Anna, a secretary who did not want her surname to be published. Mortgage rates are, she says, as high as 12 per cent. "Even foreigners are surprised by how expensive it has become here."

Kiev now bristles with cranes and building sites that work 24 hours a day, rushing to meet what appears to be an insatiable demand for new housing.

Analysts say that if you bought a decent flat for the going rate in Kiev three years ago (just £15,000), it would now be worth £100,000, an increase of more than six-fold. Small city-centre flats in Kiev are now changing hands for £200,000 and more.

The huge price hikes have made Ukraine one of the most expensive places to buy property in eastern Europe and the former Soviet Union. Yet average monthly salaries range from just £80-£180, depending on the region, and few people have savings.

And, to add insult to injury, many of the buyers are foreigners out to make fast money by renting or reselling. Irina Radko, of estate agents UA Property, says that many of the buyers are British.

"Our clients are mostly from the UK, but we also have customers from the USA, the UAE, Cyprus, New Zealand and Canada."

The most popular area to buy is Kiev, she added, followed by Crimea (a Black Sea holiday destination) and the Carpathian Mountains.

The trigger for Ukraine's property boom appears to have been the country's pro-Western "orange revolution" in 2004. The new President, Viktor Yushchenko, abolished visa requirements for EU and American citizens, and let it be known that his country was open for business.

Although he has since lost much of his influence and been forced to share power with a pro-Russian Prime Minister, Viktor Yanukovych, friendly investment conditions he created remain in place.

But foreign investors' good fortune has been local people's misery. Government buildings in Kiev are frequently picketed by people angry about poor living conditions. "The politicians promise that something will change, but nothing ever does," said Anna.

Source: The Independent

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Friday, January 05, 2007

Tymoshenko Promises To Settle In The President’s Office

KIEV, Ukraine -- Yuliya Tymoshenko hopes to persuade President Viktor Yushchenko to disband the Ukrainian Parliament by spring 2007, according to Ukrayinska Pravda.


Yuliya Tymoshenko in a New Year portrait

According to Ms. Tymoshenko, Yushchenko has decided to hold early elections and even had prepared a televised appeal to the nation on disbanding Parliament during this past summer political clashes.

Ms. Tymoshenko is sure the President will record another appeal in the spring.

“I will stay at the President’s office until the record is made public and neither Bezsmertnyi nor Poroshenko nor Moroz nor Yanukovych will stop me,” promised Tymoshenko.

In the article she confirmed for the first time that Yushchenko had offered her the position to chair the National Security and Defense Council (NSDC).

“Late in September 2006, after the broad coalition was formed, the President asked me to come and see him. We talked about my appointment to the NSDC, dissolution of the Parliament, promoting economic reforms, and rise in welfares. We agreed to invalidate the Political Reform through the Constitutional Court,” revealed Tymoshenko.

Ms. Tymoshenko's dream of her comeback to power has not come true. She hesitated whether to chair the NSDC as infighting within the President’s team could break out again. After several meetings with the President and his Secretary Mr.Baloha, Tymoshenko agreed.

The negotiations on her appointment to the NSDC continued until “the President began to intimidate Yanukovych by Tymoshenko's possible appointment.”

“On October 10, 2006, Mr. Baloha called to say that the decree on my appointment would be issued that day. He said, we should meet once again to discuss the details. Instead, a decree was issued on the appointment of Vitaliy Hayduk as the NSDC Secretary. I did not feel hurt having gotten used to such things. I even breathed a sigh of relief…” confessed Ms. Tymoshenko.

Earlier Tymoshenko denied the fact that Yushchenko had offered her the position at the NSDC.

Source: Unian

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Thursday, January 04, 2007

Canada Police Find Head Of Stolen Ukraine Statue

TORONTO, Canada -- The desire to cash in on soaring copper prices is being blamed for the theft of a bronze statue brought to Canada over 50 years ago to commemorate Ukrainian poet Taras Shevchenko.


A statue of Ukrainian poet Taras Shevchenko

Police recovered the head of the 3-meter (10-foot), two-tonne likeness this week at a metal recycling business just west of Toronto.

They are now hunting for the body, which is estimated to be worth somewhere close to C$20,000 ($17,000) in scrap metal, but has a far greater value to the 1 million strong Ukrainian diaspora in Canada.

"It's been devastating to the great majority of Ukrainian Canadians," said Andrew Gregorovich, vice-president of the Taras H. Shevchenko Museum and Memorial Park Foundation in Toronto.

The statue of Shevchenko, a 19th-century cultural icon sometimes called the "Bard of Ukraine," disappeared last month from a park in suburban Oakville, west of Toronto. Thieves left just the statue's bronze feet and its stone pedestal.

Police found the partially damaged head after a tip from the recycling shop where two men had sold the metal. One man has been charged in what police say is part of a growing rash of thefts of metal made increasingly valuable by soaring commodity demand.

"We do (see a lot of scrap metal theft)," said Halton Region police public affairs officer Peter Payne.

"But this is the first time in (the area) we've ever lost a valuable piece of metal artwork that's been reduced to scrap. It's pretty unfortunate."

Bronze is largely made up of copper alloys. Copper has approximately doubled in price over the past two years. On Wednesday the copper price in London was $5,855 a ton.

Earlier in December, a 250 kilogram (550 pound) copper statue of Greek mythological figure Atlas was stolen from in front of a metal fabricating company in north Toronto. The statue was later recovered and a man was charged.

The Shevchenko statue was erected in 1951 as a gift from the Soviet Union to honor 60 years of Ukrainian settlement in Canada. Ukraine became independent after the Soviet Union collapsed in 1991.

Gregorovich said there have been at time mixed feelings toward the statue because of its Soviet origins, but the figure of Shevchenko -- whose writings are credited with contributing greatly to Ukraine's national consciousness -- largely transcends politics.

He said the Shevchenko museum may put the head on display if the rest of the statue is not recovered.

Source: Reuters

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Are Early Elections An Option For Yushchenko?

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko may opt for an early parliamentary election in order to reverse the 2004-2006 constitutional reforms.


Viktor Yushchenko

Reversing the amendments, which diminished presidential authority and made it possible for Yushchenko's rivals to quickly return to power, is probably impossible without controlling two-thirds of the 450-seat parliament.

Yushchenko's allies are in the minority in the legislature, and only a new election may bring them back to power.

Ardent oppositionist Yulia Tymoshenko has been urging an early election since last summer, when she lost the battle for the post of prime minister to Viktor Yanukovych.

Yushchenko initially was not enthusiastic about such an option. But, after losing his loyal cabinet ministers one-by-one and Yanukovych kept ignoring his orders, Yushchenko apparently started to seriously consider this option.

Yushchenko has been evasive on an early election in his speeches, but two of his allies, former interior minister Yuriy Lutsenko and MP Mykola Katerynchuk, are less coy.

Both have launched political movements with an obvious eye to an early election, even if they ostentatiously refuse to call the new groups “parties.”

However, it may be too late for them to run for parliament if an election is called in 2007, as only parties more than a year old are allowed to run. Most probably, Katerynchuk's and Lutsenko's movements are aimed at helping Yushchenko's People's Union-Our Ukraine (NSNU) drum up popular support for the idea of an early election and possibly to build bridges to Tymoshenko.

Of the two, at least Lutsenko works in concert with Tymoshenko. She and Lutsenko met on December 11 to discuss “bringing together the democratic forces in an attempt to unite them for an early parliamentary poll,” Tymoshenko told a briefing on the same day.

She made it clear that Lutsenko was not going to join her party, but she urged “maximum unification” of the parties pushing for an early election.

Speaking in an interview with Kommersant, Tymoshenko explained the logic behind their plan. Yushchenko, she said, has not put up with the fact that his authority was curtailed by the constitutional changes.

“An early election is a lesser evil,” she said. “Dissolving parliament, we should immediately offer a new constitution to the country.” She continued, “Now it would be useless to unite our efforts with Viktor Yushchenko in this direction. We need 300 votes [in parliament], which we do not have.”

Katerynchuk, who resigned as NSNU's executive committee head in November, on December 15 presided over the first meeting of the “European Platform for Ukraine” movement.

European Platform's declared aim is to unite Ukraine around the idea of joining the European Union, Katerynchuk said in an interview with Den on December 27.

He predicted that the country’s economic situation will deteriorate to a point where it will be “uncontrollable,” prompting a crisis situation in spring 2007, when Yanukovych will go and Yushchenko should call an early election.

Lutsenko announced the launch of the “Civil Movement for People's Self-Defense” on December 20. Like Katerynchuk, Lutsenko did not say much about ideology, but he was straightforward about the goal -- a popular “march of justice” in the spring to urge cabinet dismissal and parliament dissolution.

“This movement of the people,” he said, “should help the president realize the theoretical possibility of dissolving parliament, which may arise when relevant petitions are considered by the Constitutional Court.”

Yushchenko's allies and Tymoshenko believe that the Constitutional Court should confirm that there are formal grounds for Yushchenko to dissolve parliament.

Tymoshenko told Kommersant that a certain petition was forwarded to the Constitutional Court, so if the court agrees with Tymoshenko, “There will be more than enough grounds” for parliament dissolution. She, however, refused to give details of the petition.

Katerynchuk, talking to Den, was more candid. According to him, the formal grounds for parliamentary dissolution are the following: Yanukovych's cabinet was formed not within 60 days after the parliamentary election in April, as the constitution requires, but on the 62nd day, and the cabinet worked for more than 60 days without an emergencies minister last fall.

The head of the presidential secretariat, Viktor Baloha, told Kommersant on December 18 that an early parliamentary election is possible in either 2007 or 2008.

However, he said that there are currently no legal grounds for such a move. “Such grounds may arise,” he added enigmatically.

Recent opinion polls have shown that the public is not ready to embrace the idea of parliamentary dissolution, and that if an early election takes place, the balance of forces may not change in favor of Yushchenko.

A poll held in mid-December by the Kyiv-based Public Opinion Foundation showed that only 28% of Ukrainians are in favor of an early parliamentary election.

And polls held by three Ukrainian pollsters independently in December showed that Yanukovych's Party of Regions would win an early election with 28-32% of popular support, followed by Tymoshenko's bloc with 17-22%, and Yushchenko's Our Ukraine with 7-14%.

These figures are very close to the results of the April 2006 election.

Source: Eurasia Daily Monitor

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Wednesday, January 03, 2007

JKX Drills Success In Ukraine

LONDON, United Kingdom -- Shares in midcap explorer and producer JKX Oil & Gas jumped in early trading after weekend bid talk and a new gas well in the Ukraine.


JKX rigging up at a well in Ukraine

Shares rose 14p, or 4.75%, at 309p before easing slightly to 306p, up 11p. For a short while, the company valued at £475.2 million, led the FTSE 250 index.

A weekend press account that Russia's Glengary Overseas, which already has a 17.2% stake in JKX, may bid for the whole company, raised investor interest.

The London-based company (JKX) said that it had completed and tested well M157 as part of its drilling programme at Poltava, Ukraine.

Testing showed the well flowed at a stabilised rate of 7.3 million cubic feet of gas and 620 barrels of condensate per day. The well has been tied back to the company's production facility via an eight kilometre pipeline.

Well M157 is a vertical well 140 metres deep in the northern area of Molchanovskoye field. A rig has now begun drilling well R102 in the southern part of Rudenkovskoye field.

JKX has license interests in Ukraine, Georgia, Russia, Italy, Bulgaria, Turkey and the United States.

It reported a pre-tax profit £30.9 million in the half year to 30 June on turnover of £33.1 million compared to £8.09 million on £13.3 million during the same period in 2005.

In November, the company said it tested well I125 at Poltava producing 425 barrels of oil and 0.25m cubic feet o gas through a 72/64 inch choke.

The company announced in August that its wholly-owned Ukrainian subsidiary, Poltava Petroleum Company, had concluded a gas sale and purchase agreement with Shell Energy Ukraine for domestic delivery of a minimum of 250 million cubic metres of gas for a year.

In June, the company received formal approval to tie-in its production facilities at Poltava, Ukraine, to the Soyuz main gas trunk line.

Source: CityWire

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Tuesday, January 02, 2007

Ukraine Still Feeling Gas Pressure

KIEV, Ukraine -- It was a year ago that Ukrainians woke up to discover that Russia had gone ahead with its threat to cut off gas supplies.


Kiev had refused to meet demands by Moscow to substantially increase the price.

A few days later Ukraine agreed to almost double what it paid, and the gas was turned back on.

A repeat of the gas crisis is unlikely as the two neighboring countries have agreed a deal for 2007 which puts the cost up by another 40%.

It is ordinary Ukrainians who are being hit the hardest by the consequences of the dispute.

In the last year, energy bills paid by householders have gone up by more than 100%. That has sparked anger, as Ukraine is one of the poorest countries in Europe.

There has been a wave of action across the country.

Thousands gathered in the capital recently to demonstrate about the price they have to pay for gas and other utilities, which is set to increase again in January.

"My pension is worth $75 (£38) a month but the council wants me to pay almost all my pension on bills," complains Galina Alekseeva.

"Already we can't afford to eat or drink properly. We can't afford to get sick and pay for medicine."

"Life is desperate and with the energy bills going up, it's going much, much worse," she adds.

'Chain reaction'

There is now speculation in the media that some people may simply stop paying their bills.

"This problem may lead to a negative chain reaction," says political commentator Volodymyr Fesenko.

"If the public doesn't pay, this may cause a shortage of funds for the energy companies. This is fraught with political problems and risks."

At the same time the cost of living in this former Soviet state is also going up.

"In the past prices were kept artificially low, but these have started to become more realistic. And so, for example, the cost of food and transport is increasing, which has been a great shock for people," says Eldar Gazizulin, an economist at the Institute for International Policy Studies in Kiev.

Ukraine remains one of the biggest consumers of gas in Europe. Its industry is dominated by steel and chemicals producers.

These sectors use high levels of gas and there were fears some of these businesses would be destroyed by the increased price of energy.

World prices for chemicals and steel have however remained good, limiting the impact, but should the prices drop there are concerns these companies would no longer be able to compete so effectively on the international stage.

"It's the chemicals sector which is likely to be the first to suffer and who will face the threat of bankruptcy," says political analyst Oksana Shulier.

Wake-up call

Ukraine continues to be one of the most energy-inefficient countries in Europe.

The wake-up call that urgent action was needed to transform its Soviet-era energy systems came on New Year's Day in 2006.

It is estimated that those reforms will cost Ukraine more than $20bn, but in the last year the government spent less than $500m. "It feels like little has changed," says Mr Gazizulin.

"There have been lots of public statements about energy efficiency since the gas crisis, but the state just can't afford to spend the huge sums of money needed to properly introduce power saving measures."

Source: BBC News

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Monday, January 01, 2007

A City Of Memorials Finds Itself Filling Up

WASHINGTON DC, USA -- This supremely political city has a keen sense of history and its uses. So, not surprisingly, it also has a thing for memorials: marble, granite and otherwise. Six presidents and seven wars have monumental tributes in or near downtown Washington.


A memorial to the Ukrainian poet Taras Shevchenko stands near the P Street Bridge in Washington.

But presidents are not the only people so honored. Ground was broken for the Martin Luther King Jr. memorial on the Mall six weeks ago, and Congress has approved a monument to Francis Marion, the “Swamp Fox” of the Carolinas during the Revolutionary War. Most recently, it approved one to millions of victims of the 1932-33 Ukrainian Holodomor, or famine.

Wait. The Ukrainian famine? A monument to be built on federal land by the Ukrainian government? Whose history is this?

That question, raised in the 1990s about another foreign memorial, has since ricocheted around the National Park Service and the National Capital Planning Commission, the agencies most responsible for monitoring the conception, creation and placement of new museums and commemorative works in the federal city.

“I think there’s a heightened sensitivity to where we place these memorials and museums, and whom we venerate,” said the planning commission’s chairman, John V. Cogbill III. “I don’t know how that is going to shake out.”

Mr. Cogbill was sanguine, however, about the potential for future conflict over allocations of available memorial space, saying, “We view ourselves as a world city, so I think in that respect you want to embrace something that is not indigenous to our own culture.”

The language of the Commemorative Works Act of 1986, which set out procedures for the creation of memorials on federal land here, is a little less inclusive than Mr. Cogbill is. It envisions commemorative works that evoke “the memory of an individual, group, event or other significant element of American history.”

In the two decades since Congress enacted that law, about 30 memorials have been approved, four of which did not conform to the provision about American history.

Two of the four honor foreign leaders. Mohandas Gandhi, the apostle of nonviolence who led the movement that freed India from British rule, strides forward in front of the Indian Embassy on Q Street N.W. Tomas G. Masaryk, the first president of Czechoslovakia, looks out over the World Bank on H Street N.W.

The other two honor victims of Communist rule. The first is a bronze replica of the “Goddess of Democracy” erected in Tiananmen Square during the Chinese student protests of 1989, is dedicated to the “victims of Communism” and will rise not far from Union Station. The latter is to the victims of the Ukrainian famine, a monument whose site and design have yet to be determined.

In 2005, John Parsons, an associate regional director of the National Park Service, advised Congress that the proposed Ukrainian memorial, which was in legislation sponsored by Representative Sander M. Levin, Democrat of Michigan, duplicated the purpose of the Victims of Communism Memorial.

“While the victims of the Ukraine famine obviously deserve recognition,” Mr. Parsons testified, “we believe that creating separate memorials for individual groups would detract from the overall message of the Victims of Communism Memorial and could, potentially, create an unfortunate competition amongst various groups for limited memorial sites in our nation’s capital.”

There are more than 160 memorials in the city, and 75 museums, said Lisa N. MacSpadden, the spokeswoman for the National Capital Planning Commission. The inventory goes up, on average, by one memorial a year and one museum a decade, Ms. MacSpadden said.

The commission’s most recent map shows 100 memorial-worthy sites remaining to commemorate all the country’s history to date and all its history to come.

Statues of foreigners are, of course, nothing new: the Marquis de Lafayette looks down on the White House from a high pedestal in his eponymous park, with Thaddeus Kosciusko a stone’s throw away.

Simon Bolivar, who freed much of South America from Spanish rule, looms over the intersection of 18th and E Streets N.W., and a statue of the Ukrainian poet Taras Shevchenko was unveiled by President Dwight D. Eisenhower near the eastern end of the P Street Bridge. That monument was championed by one of Mr. Levin’s predecessors who also represented heavily Ukrainian areas of Michigan like Troy and Warren.

(History buffs have created Web sites memorializing Washington memorials, like one at www.kittytours .org/thatman2/index.html.)

The history of the Ukrainian famine — in which Moscow’s requisitioning of the Ukrainian harvest, along with its orders to collectivize agriculture, caused the starvation of millions of people — was long caught in the disinformation and silence imposed by Stalin. Not until a few weeks ago did the Ukrainian Parliament enact a law paying tribute and providing for the creation of a memorial to the famine’s victims. The law came weeks after the United States Congress voted to approve the memorial in Washington, to be paid for by the government of Ukraine.

The initial push for the memorial came from Ukrainian-Americans in Michigan, said Borys Potapenko, president of the Ukrainian Congress Committee of America.

The strongest push, in 2004 and 2005, coincided with the Orange Revolution that brought Viktor A. Yushchenko the presidency. Mr. Potapenko said in a telephone interview that he was nervous about the memorial’s future in the wake of recent political developments, which have left Mr. Yushchenko to share power with his former opponent, Viktor Yanukovich, who had Moscow’s support.

But Iryna Bezverkha, a spokeswoman for the Ukrainian Embassy, said embassy officials met in December with members of a Park Service advisory commission to discuss the steps to be followed to win approval for a design and site.

City planners, however, are more concerned with Congress’s ability to come to terms with the physical limits of the land.

“We are starting to realize that there are a limited number of places left” for memorials, said Mr. Cogbill of the planning commission. “That means we have to start to think carefully.”

Source: The New York Times

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A Ukrainian Beacon, Shining Once Again

PHILADELPHIA, USA -- It was once known as "Little Ukraine," a swath of North Philadelphia along Franklin Street, north of Spring Garden Street and south of Girard Avenue.


Others might have called it "East Poplar" or Northern Liberties. But for Slavic immigrants, it had the ethnic resonance of South Philly or Chinatown.

It was where neighbors spoke Ukrainian, where shop signs were written in the Cyrillic alphabet. And there was the cathedral - St. Mary's, informally, to earlier generations; now the Ukrainian Catholic Cathedral of the Immaculate Conception of the Blessed Virgin Mary.

Today, Little Ukraine has largely evaporated along with memories of the old, stone church, purchased in 1907, that was the first mother church for generations of Ukrainian Catholics in the United States. But the cathedral - in the form of the massive gold-domed Byzantine temple that replaced the old church in 1966 - remains.

Still a shrine for devout Ukrainians nationwide, the cathedral is near the end of a five-month $750,000 makeover in preparation for next year's international synod of bishops commemorating the centenary of the arrival in the city of Soter Stephen Ortynsky, the first Ukrainian Catholic archbishop in America.

"This will be a major celebration," said the Rev. Ivan Demkiv, the cathedral's Ukrainian-born rector. "The bishops of the Ukrainian Catholic churches - 30 from all over the world - will come to Philadelphia for their annual meeting."

"It's really the first major renovation the building has ever had," said John Drozd, archeparchial financial officer.

The cathedral, the largest Ukrainian Catholic church in the world and the "mother church," or archeparchy (archdiocese), for all four U.S. eparchies, celebrated the 40th anniversary of its first liturgical service on Oct. 16.

Four decades of automotive and industrial soot had so blackened the barrel-vaulted roof over the main entrance, Drozd said, that he thought the roof was metal that tarnished.

Since a crew from Keystone Waterproofing Inc., of Greensburg, Pa., began work, the roofs are again white. And the pollution that dulled the immense gold dome - actually 22-karat gold fused into hundreds of thousands of one-square-inch Venetian glass tiles - is being cleaned away by rappelling workers from Pittsburgh's USA (Unique Services in Applications) Inc.

"It's a big project," said David Sebek, Keystone's on-site superintendent.

That's a bit of an understatement for a structure 172 feet long and 128 feet wide, and surmounted by a dome 106 feet high and 100 feet in diameter - so large it has its own ventilation system to prevent clouds and "rain" inside.

Sebek said the work has gone surprisingly well: "The biggest thing was scratching our heads wondering what we'd find underneath the dirt."

The synod will be held from Sept. 27 to Oct. 10 and will be a watershed event for a church separated for decades from its European roots by a Soviet regime that outlawed the religion, confiscated churches, and imprisoned prelates.

When the Ukrainian church was "underground," said Demkiv, the synods were at the Vatican in Rome. Since the 1991 collapse of the Soviet Union, the synods have been in Ukraine: in the capital Kiev or in Lviv, in the country's west, from which most U.S. Ukrainian Catholics immigrated.

The Ukrainian Catholic Church traces its history to 988, when Prince Vladimir of Kiev announced his conversion to Christianity. After the "Great Schism" - the split in 1054 between the pope in Rome and the leader of the eastern church in what is now Istanbul - Ukrainian Christians followed the eastern faction into what became the Orthodox Church.

But in Western Ukraine people were closer to Europe and its church, especially after Ukraine was conquered by Poland (allied with the Roman Church).

In 1594, Western Ukrainians were brought back into the Roman Church through the Council of Brest. In exchange for acknowledging the pope's supremacy, Ukrainian Catholics were allowed to retain their liturgy and customs, celebrate Mass in Ukrainian, and have married priests.

Demkiv, 41, who was born near Lviv, is the son of a priest and himself married and the father of two.

According to Demkiv, Ukrainians emigrated to North America in four major waves: during the first decade of the 20th century, shortly after World Wars I and II, and after the collapse of the Soviet Union.

In the United States, Ukrainians settled in areas roughly paralleling today's four Ukrainian Catholic eparchies: Philadelphia; Stamford, Conn.; Chicago; and Parma, Ohio.

Today, Philadelphia's Ukrainian Catholic Archbishop Stefan Soroka is the spiritual leader of 22,000 Ukrainian Catholics in Eastern Pennsylvania, New Jersey, Delaware, Maryland and Virginia as well as the "metropolitan" - patriarch - for 114,000 Ukrainian Catholics nationwide.

The 1964 decision of then-Archbishop Ambrose Senyshyn to replace the old cathedral with the present $3 million building was controversial. Many wanted the cathedral to follow the faithful to the Philadelphia suburbs.

Lured by city promises of a $40 million "East Poplar Redevelopment Area," Senyshyn announced that the cathedral would remain in North Philadelphia: "After all, they wouldn't move Independence Hall and rebuild it somewhere else."

Fifteen thousand people attended the new cathedral's dedication, including Mayor James H.J. Tate and Catholic luminaries from as far away as China.

But the East Poplar renewal never lived up to its $40 million billing, and within a decade, except on Easter and Christmas, the cathedral was rarely near its 1,800 capacity.

Still, the cathedral holds a pull for the devout.

One high point was the October 1979 visit of the late Pope John Paul II. The pope, born in Poland when it was under Communist rule, came to the cathedral accompanied by Cardinal Josef Slipyj, then 87, a prelate legendary among Ukrainians because of 18 years spent in a Siberian prison camp under Soviet rule.

Last year, the cathedral was a stop for Ukraine's president, Viktor Yushchenko, on his visit to Philadelphia to receive the Liberty Medal.

And every summer, Demkiv said, the cathedral has visitors from around the country and Europe who come to marvel, worship or view artifacts next door in its Treasury of Faith Archeparchical Museum.

Demkiv recalled his first impression when he arrived here from Winnipeg, Canada, in 2003: "Magnificent! I was amazed by a church that was so big and by the beautiful mosaics."

Source: The Philadelphia Inquirer

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