Wednesday, February 28, 2007

Ukraine Court Rejects Tycoon Appeal For TV Channel

KIEV, Ukraine -- Ukraine's Supreme Court rejected an appeal on Wednesday from a Ukrainian businessman that he was entitled to a 70 percent stake in television channel Studio 1+1, local media reported.

Alexander Rodnyansky

Studio 1+1 is controlled by television broadcaster Central European Media Enterprises (CME), which in turn is controlled by U.S. cosmetics heir Ronald Lauder.

The channel has been plagued for more than a year by a legal battle between tycoon Ihor Kolomoisky and filmmaker Alexander Rodnyansky, who is effectively the custodian for CME of a 60 percent financial stake in Studio 1+1.

Kolomoisky, the owner of Privat financial and industrial group, said he had an oral agreement to buy a 70 percent stake in the studio.

The channel denied the deal had been agreed.

"I am very happy justice was done. This decision upholds the law and confirms our legal position," Boris Fuksman, a representative of Studio 1+1, told Telekritika Website.

Kolomoisky's representatives were not immediately available for comment. CME said it had a longstanding binding agreement that entitled it to a 60 percent stake in Studio 1+1.

Its partners own the remaining 40 percent. CME also owns 18 percent of a company that holds the broadcasting licence for Studio 1+1.

Lauder's CME owns TV operations in six central and eastern European countries.

Source: Reuters

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Ukraine's Party Of Regions Calls For Early Presidential Election

KIEV, Ukraine -- The Party of Regions plans to register Friday with the Ukrainian parliament a draft law to hold early presidential and parliamentary elections in Ukraine on September 30, a deputy head of the faction said Wednesday.


Ukraine has been embroiled recently in an ongoing struggle between presidential and premier factions in the country, which over the past six months has seen several ministers appointed by President Viktor Yushchenko and then dismissed by the Supreme Rada, where the Party of Regions, led by Prime Minister Viktor Yanukovych, holds a majority.

Vasyl Kyselyov said that Yushchenko should support the initiative if he cares about his country.

"If he is a true president and wants order in the country, than he will support our initiative," Kyselyov said.

Last Saturday Yulia Tymoshenko's eponymous bloc (BYT) and Our Ukraine bloc in the Ukrainian parliament signed an opposition merger accord.

The united opposition stated that it will seek early parliamentary and local legislature elections, and will demand the imperative mandate for deputies of local legislative bodies, the abolishment of December 2004 amendments to the Ukrainian constitution and the adoption of a new draft of the country's fundamental political document.

Source: RIA Novosti

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Ukrainian Leaders Give Mixed Views About U.S. Missile Defense Plans In Europe

KIEV, Ukraine -- Ukraine gave mixed signals Tuesday about whether it will support U.S. plans to deploy a missile defense system in eastern Europe, with the prime minister warning it could hurt relations with neighboring countries while the president indicated tacit support for the plan.

The odd couple of Ukrainian politics - a pro-Western President Yushchenko (L) with his pro-Russian Prime Minister Yanukovych

"We believe that deploying a missile defense system in Poland and Czech Republic will not benefit relations between our countries," Prime Minister Viktor Yanukovych told the German newspaper, Handelsblatt, according to his press service.

President Viktor Yushchenko later called on politicians to remember their commitment to Europe's collective security when considering the plan. "We must consider our national interests" and the country's declared aim to participate in creating a unified security system for Europe, Yushchenko said, according to Ukrainian news agencies.

Ukraine has refrained from declaring its official view about Washington's plans to put a radar system in the Czech Republic and a missile interceptor site in Poland, saying it needs to learn more. U.S. experts are due to visit Ukraine in early March to explain the plans, which have angered Russia.

The pro-Western Yushchenko has sought to earn Ukraine a place in NATO and turn Ukraine toward the West, ideas that have been met with skepticism among Yanukovych's more-Russian leaning party, which dominates in Ukraine's largely Russian-speaking east and south.

Washington says the installations are meant to deal with a potential threat from Iran, but Moscow has rejected the assurances, calling them an effort to strengthen U.S. military might in the region.

Some Ukrainian politicians have warned that the defense system could make Ukraine's neighbors targets, raising the risk of military action in Ukraine.

Source: Kyiv Post

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Tuesday, February 27, 2007

Orange Revolution Leader Yulia Tymoshenko Announces Schedule Change For U.S. Visit

KIEV, Ukraine -- Former Ukrainian Prime Minister and Orange Revolution leader Yulia Tymoshenko announced today that she has made changes to this week's scheduled visit to the United States, canceling the New York segment and refocusing on her Washington meetings.

The always charming Orange Revolution Leader Yulia Tymoshenko

She explained that her ongoing outreach to citizens in cities and towns across Ukraine, undertaken in the midst of harsh weather conditions, has resulted in her experiencing the flu.

The flu has spread across the country, closing schools; even the speaker of the parliament missed a week of plenary sessions.

Ms. Tymoshenko's decision to delay her departure to the United States, taken on the advice of her physician, has resulted in the cancellation of a robust schedule of events in New York.

"Ms. Tymoshenko understands that this schedule change will be a disappointment to many in New York," said Mr. Hryhoriy Nemyria, a Ukrainian Member of Parliament and senior foreign policy advisor to Ms. Tymoshenko. "Consequently, she is already discussing plans for a return trip to New York as part of her outreach to various diaspora, media, public policy, and business constituencies in the United States and elsewhere."

Ms. Tymoshenko's trip to the US follows a series of recent diplomatic outreaches, including trips to Brussels and Berlin in November and to Israel in January.

In Washington later this week, Ms. Tymoshenko will meet with government officials, lawmakers, policy experts and business leaders to discuss the important issues facing Ukraine.

She will address efforts to advance the country's path to democratic reform and be honored by policy organizations that support her passion and commitment to Ukraine.

She will also speak at some of the most prominent American think-tanks on topics of Ukrainian and American interest.

Source: U.S. Newswire

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Ukraine Starts Production Of An-148 Aircraft

KIEV, Ukraine -- Kiev-based Aviant state aircraft factory has started serial production of the An-148 regional passenger airplane.

An-148 regional passenger airplane

The plane was certified on Monday.

Aviant intends to produce two An-148 airplanes in 2007: one for Kazakhstan and one for Ukraine.

Ukraine's state budget for 2007 allocates UAH 155 mln (EUR 23.6 mln) for leasing this airplane.

Ten An-148 airplanes are at various stages of readiness at the factory.

Aviant plans to produce 34 An-148 airplanes by the year 2010, out of which it plans to deliver seven to Kazakhstan.

Airplanes in the An-148 family, which are equipped with dual jet engines, are designed to carry passengers and cargoes on regional and near-long-haul routes.

The An-148 airplane has a cruising speed of 820-870 kilometers per hour.

The airplane costs about USD $20 million.

Source: Rynok Biz

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U.S. Should Have Consulted On Missile Shield: Ukraine

BERLIN, Germany -- The United States should have consulted Ukraine and Russia over its plans to establish a missile defense system in eastern Europe, Ukrainian Prime Minister Viktor Yanukovich was quoted on Monday as saying.

Yanukovich is the Kremlin's mouth piece in Kiev

"The stationing issues should have been discussed with everyone in advance, including Ukraine and Russia," Yanukovich told German business daily Handelsblatt in an interview due to be published in the paper's Tuesday edition.

"Only once there has been a comprehensive European debate, a dialogue between Western and Eastern Europe can such a decision be made," he said in the German text of his comments. "Europe must not be split again like it was before the Iraq war."

The United States wants to set up a radar system in the Czech Republic and a missile battery in Poland as part of a "shield" that would counter missiles fired by what Washington calls "rogue states" such as Iran and North Korea.

The missile plans have angered Moscow, which sees the system as an encroachment on its former sphere of influence and an attempt to shift the post-Cold War balance of power.

Yanukovich, who is due to meet German Chancellor Angela Merkel on Wednesday, said Poland's support for the U.S. plan "did not help" bilateral ties between Warsaw and Kiev.

Stressing that Ukraine aimed to join the European Union, he said Europe needed to have good relations with Russia and that Kiev wanted to act as a bridge between the two sides.

Separately, Yanukovich added that recent domestic wrangles between the parliament, President Viktor Yushchenko and himself had caused serious problems for the political establishment.

"Up until now, politics in Ukraine have been paralyzed by the dispute about whether the president or the prime minister has a bigger say," he told the newspaper.

Yushchenko, who swept to power in the "Orange Revolution" in 2004, has all but lost control of the legislative agenda since he appointed rival Yanukovich prime minister last year.

Yanukovich added that Ukraine aimed to complete its planned accession to the World Trade Organization in mid-2007.

Source: Yahoo! News

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Monday, February 26, 2007

iBasis Interconnects With Kyivstar For Global Voice Services

BURLINGTON, MA -- iBasis, Inc., the Global VoIP Company, today announced that Kyivstar, the leading mobile operator in Ukraine, has interconnected with The iBasis Network™ for international voice services.


The interconnection with iBasis enables Kyivstar to route international voice traffic over The iBasis Network, the leading global VoIP network, and expands iBasis’ ability to complete mobile calls to Ukraine.

iBasis delivers improved call completion rates and longer average call duration, which help to increase average revenue per user for its mobile operator customers.

Kyivstar is leveraging iBasis’ advanced international routing portfolio, including its PremiumCertified™ service, which certifies higher route quality and stability.

“The migration of international voice traffic to mobile networks is one of the major trends in global telecommunications today,” said Ofer Gneezy, president and CEO of iBasis. “We are very pleased to add Kyivstar to our growing mobile footprint and to have them utilizing our leading VoIP network for their international traffic. Our proven resources and expertise in VoIP are enhancing the growth, efficiency and profitability of leading mobile network operators such as Kyivstar.”

By interconnecting their mobile network with The iBasis Network, Kyivstar is able to enhance its margins and revenue growth from inbound and outbound international traffic associated with their rapidly growing national network.

Also, using the iBasis DirectVoIP™ service enables Kyivstar to add capacity and new destinations quickly and cost-efficiently.

“As the leading mobile network operator in Ukraine, serving more than half the citizens of Ukraine, it is important for us to focus on offering competitive prices, high quality, and reliability and to take advantage of the benefits that VoIP affords to connect to the rest of the world," said Zhanna Revnova, head of Corporate Affairs of Kyivstar. “The benefits of VoIP, including the instant scalable access to a high quality, low-cost international infrastructure, allow us to grow our international traffic with very competitive rates while continuing to offer high quality of service to our mobile subscribers.”

Like many telecommunications markets, growth in Ukraine is fuelled by mobile expansion and VoIP migration.

Ukraine’s mobile penetration at the end of 2006 was 104 % (by using sim-cards), up from 41% just one year earlier.

To continue growth and profitability, mobile operators are increasingly focusing on expanding lifetime revenue and profit per customer, and mastering a more competitive market situation.

Source: Business Wire

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Liverpool Signs Ukraine Ace

LIVERPOOL, England -- Ukraine star Andriy Voronin has signed for English Premier League giant Liverpool on a four-year contract, the club announced overnight.

Andriy Voronin (R)

The 27 year old, capped 40 times as an international strike partner of Chelsea's Andriy Shevchenko, will cost nothing when he leaves German side Bayer Leverkusen at the end of the season as he will be a free agent.

Voronin, who has scored five goals for his country, has spent most of his career in Germany playing for Cologne, Mainz and Borussia Monchengladbach.

The signing of Voronin, who was part of the Ukraine team that reached the World Cup qurter-finals last year, puts pressure on former England international Robbie Fowler retaining his place in the squad despite scoring twice on Saturday in the victory over Sheffield United.

But with Dirk Kuyt, Craig Bellamy and Peter Crouch also vying for places up front, Liverpool manager Rafael Benitez refused to discuss a new deal for the 31-year-old Fowler.

"He's a really good finisher, still the best we have, and I sometimes think that if we could have Bellamy running at defenders and carrying the ball 20 yards, then turning into Fowler with the goal in sight, it would be perfect,'' the Spaniard said.

"If you create chances for him, you know you can rely on his finishing and that is a very important quality to have.

"We have four very good strikers, all with different skills. You can make the most of Peter Crouch's aerial ability, Dirk Kuyt works hard between the lines and Bellamy runs behind defences.

"We can talk about Robbie's future at a later date but, if he scores every time he plays over the next few months, you never know.''

Voronin's transfer is the first under the new regime of American tycoons George Gillett and Tom Hicks, who agreed a takeover of Liverpool earlier this month.

Source: The North Queensland Newspaper

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Sunday, February 25, 2007

Another Episode Of Political Crisis

KIEV, Ukraine -- In the last few weeks Ukraine has experienced an episode of political reform as great and dramatic as anything seen during the Orange Revolution.

Ukraine's Verkhovna Rada or Parliament

The Verkhovna Rada voted overwhelmingly to further emasculate the beleaguered President Viktor Yushchenko, reducing the presidency to little more than a symbolic head of state well above the party political fray.

The Cabinet evicted Yushchenko’s pro-Western foreign minister, Borys Tarasyuk, and even proposed a law that would strip the presidency of any influence over foreign policy.

Perhaps not unrelated, some facts emerged of a long-term energy agreement, in which Ukraine would cede partial control over its gas transport system to Russia in exchange for participation in oil and gas extraction in Russia.

The failure of Yushchenko’s Our Ukraine bloc to either effectively govern with the ruling Anti-crisis Coalition or accede to Yulia Tymoshenko’s opposition Byut bloc’s call to dissolve parliament and stage new elections has allowed the Party of Regions to extend its grip over the country’s notoriously fragmented state bureaucracy.

On the face of it, the wrangling over the Constitution, the apparently contradictory alliances between the political parties and the confusion over who speaks for Ukraine internationally, has plunged the country into yet another episode of political crisis.

The former Socialist interior minister in the Orange Revolution interregnum, Yuriy Lutsenko, has toured the country to promote his new ‘People’s Self-defense Movement,’ warning that the democratic gains won in the Orange Revolution are under threat.

However, whilst some of the political maneuvering has been clumsy and the political parties, at last mindful of the need to maintain popular support, have struck contradictory positions, Ukraine has experienced a remarkable consolidation of its state machine and its political system.

The democratically elected government has extended its control over the state bureaucracy to facilitate clear and effective government.

Equally, an official opposition has begun to be institutionalized to scrutinize government. These developments will significantly strengthen the capacity of the state, a necessary precondition for further political and economic development.

This has occurred because, with the exception of parts of President Yushchenko’s Our Ukraine, the country’s political and economic powerbrokers, of whatever political hue, business group and region, have finally learned the lesson of the Orange Revolution: Razom nas bahato, nas ne podolaty (Together we are many, we cannot be defeated).

They have concluded that the profound divisions that opened up during the Orange Revolution weakened them all and that they are individually and collectively stronger in the worlds of politics and business, united around a modus operandi for political and economic rivalry.

Their consent to abide by common rules stands to enhance the country’s bargaining power with its neighbors to both the east and the west.

It is no surprise that Regions has driven the process of consolidation.

You only have to drive a few kilometers south from Donetsk, the home of Prime Minister Viktor Yanukovych, to the village of Kyrsha, aka, the ‘widows’ village,’ with its opulent detached houses protected by prison-sized walls and metal gates to match, to be reminded of the consequences of unfettered rivalry.

Yanukovych and the commercial figures behind Regions have all learned over the last 10 years that they mutually benefit when there is a balance of power and a modus operandi amongst the Donbas’s leading political and economic actors.

The Donetsk-based business groups, such as SCM and ISD, having outgrown the region, require effective national government and the prospect of stable transfers of political power from party to party to further develop as successful international companies

Since last year’s parliamentary elections, Regions has been practically groping around to identify a reliable partner to establish a new modus operandi on the national scale.

Our Ukraine, Regions’ desired partner, was hampered by its poor performance in the parliamentary elections and its apparent inability to act in a concerted manner.

Regions were forced to turn, first, to the ideologically antagonistic Socialists and Communists and then to reach an historic compromise with their bete noire, Tymoshenko.

The mutual antipathy dates back to Tymoshenko’s association with the Dnipropetrovsk ‘clan’ that waged war (entrepreneurial and violent) with the Donetsk ‘clan’ in the mid-1990s over the lucrative supply of gas in the Donbass.

Hostilities, this time political, resumed when Tymoshenko, then deputy prime minister in Yushschenko’s government, attempted to structurally reform the energy sector, culminating in her sacking and a string of criminal investigations into corruption allegations.

Despite this history, Tymoshenko has realized that Regions are in the box seat and that Yushchenko has no intention of dissolving parliament and calling fresh elections.

Byut and its financial backers have had little choice but to abandon their long-held opposition to the constitutional reform passed in late 2004 and embrace a parliamentary system in return for securing the role of official opposition.

Byut supported Regions’ law to transfer the power to appoint the prime minister from the president to parliament and the power to appoint the foreign and defense ministers from the president to the prime minister.

In return, Regions supported the election of Mykola Tomenko, a former deputy prime minister in Tymoshenko’s government, as second deputy parliamentary speaker and a bill that disqualifies local and regional council representatives who vote against their party line.

The latter will serve to shore-up Byut, whose caucuses in several councils across the country have recently crumbled.

More importantly, once the ‘Law on the opposition’ is passed, Byut will be granted the right to state funding, appoint a shadow cabinet and the heads of several key parliamentary committees, establish independent commissions of enquiry, and guaranteed access to television and radio.

Out of this historic compromise, a consolidated state machine and a parliamentary political system based on electoral competition between two centralized political parties is emerging.

However, the nature and extent of any further political reform will depend on how Regions’ and Byut’s popularity in the country develops over the coming months.

Source: Kyiv Post

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Saturday, February 24, 2007

AP Interview: Ukraine's Tymoshenko Warns That Russian Influence Increasing On Ukraine

KIEV, Ukraine -- Ukraine's main opposition leader warned Saturday that the ex-Soviet republic is at risk of sliding back under Russia's influence, and is particularly vulnerable to energy pressure from its giant neighbor.


But Yulia Tymoshenko said that she heads to the United States on Sunday to reassure U.S. leaders that the Orange Revolution team that set Ukraine on its pro-Western path is reunited and ready to provide tough opposition to Prime Minister Viktor Yanukovych's more Russian-leaning government.

On Saturday, Tymoshenko's bloc signed an agreement to work as a united opposition force with the party of President Viktor Yushchenko, giving them more than 200 lawmakers in the 450-seat parliament.

Uniting will help them ensure that Yanukovych's parliamentary coalition does not have the 300 votes needed to override presidential vetoes of legislation. They also hope to push for early parliamentary elections.

"We came through many tests, through many mistakes ... our union today is not due to circumstances, it is not a spontaneous decision," Tymoshenko told The Associated Press after the signing ceremony in parliament. "It is a decision dictated by those Ukrainians who want to see Ukraine European."

Tymoshenko was one of the driving forces behind the 2004 Orange Revolution, which helped bring the pro-Western Yushchenko to power.

The Kremlin had openly backed Yushchenko's opponent — the man who is the current premier — and his defeat was seen as a major blow to Moscow's efforts to keep this nation of 47 million under its sway.

But Yushchenko's hesitant governing style has proved a disappointment for many Ukrainians who expected quick change and a strong embrace from Europe, and last year, Yanukovych's party triumphed in parliamentary elections.

Yanukovych put together a governing majority and returned to power as premier, governing jointly with Yushchenko.

But Yushchenko has become increasingly sidelined, and Tymoshenko said that under Yanukovych, Russia's influence was growing. "I don't want to be silent about this," she said, noting that pressure was particularly strong in the energy sector.

"Really, there is energy pressure on Ukraine which can be used and is used today for political control of the country," she said, recalling the bitter 2006 natural gas dispute between Russia and Ukraine and recent talks about transferring some control over Ukraine's pipelines to Russia.

Tymoshenko noted strong pressure for Ukraine to join a Moscow-dominated economic union, which she warned would mean surrendering some national control.

"All this forces us to confront a new challenge: to protect the independence of our country which is again on Ukraine's agenda today," Tymoshenko said.

She also expressed concern that Russian investors were being given priority over foreign investors.

Tymoshenko said that she wanted to use her visit to the United States to tell U.S. leaders what is happening in Ukraine, and reassure Washington that Ukraine is still on a democratic path.

She is scheduled to meet with Vice President Dick Cheney and Secretary of State Condoleezza Rice.

She comes to the United States in a position of strength, having achieved a rapprochement with Yushchenko.

Yushchenko had tapped Tymoshenko to be his premier after the Orange Revolution, but he fired her eight months later, accusing her of being too power hungry.

Now, Yushchenko — his authority under increasing attack — needs her, something that became very clear when she sided with Yanukovych's party to override a presidential veto last month.

"I think that the advice which I tried to give to the president during recent months is in principle coming to life today — and it is pleasant," Tymoshenko said.

Source: AP

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Yushchenko Gives Medal To Disgraced Prosecutor

KIEV, Ukraine -- With so many “big” news stories in Ukraine—energy issues, the fight for political control, questions over foreign policy—it’s easy to miss the smaller items. But sometimes, these smaller items send very large signals.

Disgraced Former Prosecutor General Mykhailo Potebenko

For example, on 16 February, President Viktor Yushchenko awarded former Ukrainian Prosecutor General Mykhailo Potebenko the Order of (Kyivan) Prince Yaroslav the Wise.

Yaroslav introduced the first book of laws in what was then Kyivan Rus’ during the 11th century and is credited with expanding both the principality’s territory and culture. The medal was created in 1996 for “distinguished service to the state and people of Ukraine,” and it recognizes, among other things, “wisdom” and “honor.”

According to President Yushchenko’s decree, Potebenko was awarded the medal “for his great personal contribution to the creation of a law abiding state, the strengthening of legality and law and order, and his long-term work on the occasion of his 70th birthday.”

The decree probably would have been missed by most Ukraine-watchers in the West were it not for long-time Ukraine analyst Taras Kuzio, who found the three-line decree and publicized it on his blog. This is fortunate, since the small decree speaks volumes about President Viktor Yushchenko.

Kuzio termed the awarding of this medal to Potebenko “shameful,” and it is possible that others may find this an understatement.

Potebenko became well-known internationally in 2001 when he led two major high-profile investigations as Ukraine’s Prosecutor-General – the examination of the murder of journalist Georgy Gongadze and the prosecution of Yulia Tymoshenko.

The Prosecutor-General’s “investigation” of the Gongadze case was roundly criticized by just about every international organization looking into the matter, leading eventually to calls from the Council of Europe, Reporters Without Borders and then US Ambassador Carlos Pasqual for him to resign.

Potebenko was accused of stymieing the investigation in order to protect state officials, including President Leonid Kuchma, who appeared to be implicated in Gongadze’s death.

In 2005, after months of evidence collection, the European Court of Human Rights satisfied a number of complaints from Georgiy’s widow, Myroslava Gongadze, including her charge of a “failure to investigate the case.”

The court found that the prosecutor’s office had ignored repeated requests for assistance from Georgiy Gongadze in the weeks before his death, when he reported being followed by state law enforcement officials. “The response of the GPO was not only formalistic,” the court wrote, “but also blatantly negligent.”

Moreover, following the recovery of Gongadze’s headless body, the court said, “The State authorities were more preoccupied with proving the lack of involvement of high-level State officials in the case than discovering the truth about the circumstances of the disappearance and death of the applicant’s husband.”

Mikhailo Potebenko was the Prosecutor General during these events. Not only did he apparently conduct little investigation, but he denied that the body recovered was Gongadze’s in spite of numerous DNA tests to the contrary and then refused to accept as evidence secretly recorded tapes of President Kuchma implicating him at least in Gongadze’s disappearance, and probably his murder.

The European Court of Human Rights wrote, “The fact that the alleged offenders, two of them active police officers, were identified and charged with the kidnap and murder of the journalist just a few days after the change in the country’s leadership, raised serious doubts as to the genuine wish of the authorities under the previous government to investigate the case thoroughly.”

As Potebenko and Kuchma were being criticized internationally, and facing increasing protests domestically, the Prosecutor-General announced that he was investigating then Deputy Prime Minister Yulia Tymoshenko for a variety of offenses, including embezzlement during her time as head of the gas intermediary Unified Energy Systems.

Although Tymoshenko sat in government, her refusal to drop a number of anti-corruption measures that affected the president’s supporters had led to considerable tension between the two.

Eventually, she was fired, arrested, and held in prison for 40 days before being released by a court for lack of probable cause. Yushchenko, who was prime minister at the time, called the arrest “political persecution.” Persecution, then, by the same Potebenko recently awarded a medal by Yushchenko.

Despite years of attempts, Potebenko (and his successors) were never able to prove in court any of their charges against Tymoshenko, who then perhaps had the best revenge by being named the first prime minister after the Orange Revolution.

At the very least, Potebenko’s work on Tymoshenko’s case was shoddy and unprofessional. At the worst, it was designed to do nothing more than to persecute an opponent of the president. Or perhaps it was designed simply to take the attention away from the Gongadze case, which was creating such problems for him, Kuchma and the country.

This is the man, then, to whom President Yushchenko last week awarded a medal for “service to the country,” “wisdom,” and “honor.”

In 2004, during his presidential campaign and the Orange Revolution, Yushchenko vowed to prosecute those who had ordered the murder of Gongadze. It was, he said, “a matter of honor.” The organizers have not been arrested or prosecuted, however, and at this point—seven years after the murder and over two years after Yushchenko took office—it is unlikely that they ever will be.

In fact, many observers and politicians have suggested that Yushchenko struck a deal with Kuchma during the revolution – Yushchenko would ensure Kuchma’s freedom and Kuchma would not stand in the way of the rerun presidential election that brought Yushchenko to power.

While no one can ever truly know why the organizers of the Gongadze murder have not been arrested, the possibility of a compromise agreement fits well with Yushchenko’s nature of deliberation and conciliation.

Repeatedly throughout his political career, Yushchenko has chosen compromise over confrontation. In the last year, Yushchenko blessed the return of his defeated presidential opponent Viktor Yanukovych to the premiership, and then gave in to Yanukovych’s pressure to replace Foreign Minister Boris Tarasyuk instead of fighting for his longtime ally.

And now, the President has done his best to rehabilitate the career of Mykhailo Potebenko, a man Yushchenko himself once condemned, and a man who remains disgraced internationally.

One wonders what Yaroslav the Wise would have thought.

Source: UNIAN

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Friday, February 23, 2007

Yulia Tymoshenko To Visit Washington, New York

KIEV, Ukraine -- Yulia Tymoshenko, leader of the eponymous political bloc and head of the Ukrainian opposition, arrives in the United States on Sunday, February 25, for a six-day visit that will take her to New York and Washington.

Yulia Tymoshenko

It is her first visit to the U.S. as a politician. Her visit follows that of Prime Minister Viktor Yanukovych on December 4-6, 2006, and President Viktor Yushchenko in April 2005.

Tymoshenko’s visit has been organized differently from that of Yanukovych. His tour was highly choreographed by his Washington public relations firm in such a way that he refrained from open discussions and refused to meet the Ukrainian diaspora.

In this case, Tymoshenko’s team in the U.S. is taking a more open, inclusive position, ensuring that diaspora are included and that both sides of the aisle in American politics are being addressed in a more substantive manner.

In New York, Tymoshenko will speak at the Council on Foreign Relations, Columbia University, and will be hosted at a luncheon by J.P. Morgan investment bank. In Washington, Tymoshenko is set to speak at the Center for Strategic and International Studies and the National Press Club, as well as holding high-level meetings with the U.S. government and Congress.

She will meet with the diaspora in both locations and also will receive an award at the annual Ronald Reagan banquet. Press interviews are scheduled with the Wall Street Journal, Washington Post, New York Times, Financial Times, Time, and Newsweek.

The Tymoshenko bloc finished second during the 2006 parliamentary elections with 22.2%, a three-fold increase over her 2002 results. Most national democratic parties, which had aligned with business centrists to create Our Ukraine in 2002, deserted Our Ukraine and Yushchenko in the 2006 elections.

Our Ukraine received 10% fewer votes in 2006 under Yushchenko than four years earlier under president Leonid Kuchma. Political parties, such as Reforms and Order, have moved from Our Ukraine to the Tymoshenko bloc. Rukh, led by ousted foreign minister Borys Tarasyuk, is reportedly holding negotiations to follow suit.

Two factors explain why a large proportion of orange voters defected to the Tymoshenko bloc. First, shock at her dismissal as prime minister in September 2005 only two weeks after Yushchenko had described the Tymoshenko government as the “best in Europe.”

Second, the bloc’s consistent opposition to any deals with the Party of Regions. Tymoshenko stated unequivocally, “We believe that establishing a coalition with the mafia is treason to Ukraine.” This opposition reflects the bloc’s long-standing position during the four years of anti-Kuchma protests that preceded the Orange Revolution when it refused to negotiate with the Kuchma regime and called for his impeachment.

Yushchenko and Our Ukraine never supported impeachment proceedings and defended Kuchma from allegations arising from the Mykola Melnychenko tapes, on which the president is overheard ordering the kidnapping of journalist Heorhiy Gongadze.

Just last week Prosecutor Mykhailo Potebenko, who presided over the Gongadze cover up, was awarded a state medal for his “contribution to the building of a law-based state.”

Former Polish president Alexander Kwasniewski, who brokered the December 2004 roundtable negotiations, has confided that Kuchma was given immunity during the talks.

Yushchenko and Our Ukraine have always been noted for their flexibility. In 2002-2003 and in 2005-2006, they wavered between negotiating deals with the authorities and Party of Regions or working with Tymoshenko.

After the 2006 elections, Our Ukraine’s political council head Roman Bezsmertny negotiated an “orange coalition” of democratic forces, while Our Ukraine leader and prime minister Yuriy Yekhanurov negotiated a grand coalition with the Party of Regions. Both coalitions were sidelined by the Anti-Crisis coalition.

Yushchenko’s preference for broad roundtables could be seen in the Orange Revolution and in August 2006. The Tymoshenko bloc opposed both roundtables, and they were the only parliamentary force that refused to sign the Universal agreement.

Tymoshenko bloc deputy Hryhoriy Nemirya explained, “They saw no reason to sign a document where Our Ukraine’s participation is window dressing for the Party of Regions to run the government or be present at the birth of a Molotov cocktail coalition that could explode in the hands of the people trying to build it.”

The Tymoshenko bloc and the Pora party condemned the signing of the Universal agreement as a “betrayal” of the Orange Revolution.

A February poll by the Razumkov Center gave Tymoshenko 18.9% popular appeal with Yanukovych at 23.7%. Yushchenko’s support has plummeted to 11%. The Tymoshenko bloc and Party of Regions control 70% of deputies in parliament and both forces are likely to gain more seats in the event of elections ahead of 2011.

Based on polling trends in the last two years, Tymoshenko and Yanukovych are likely to be the frontrunner candidates in the 2009 presidential elections.

Tymoshenko has admitted, “And I want to say that from childhood I knew that I would be leader of this country. And I am not even joking here.”

In February, Our Ukraine and the Tymoshenko bloc signed an agreement establishing a united opposition of 204 deputies. Our Ukraine leader Vyacheslav Kyrylenko said it would “counteract the revenge of anti-democratic forces.”

Yushchenko, who has finally agreed to head Our Ukraine, has understood that the Tymoshenko bloc is the key to preventing the Yanukovych government from infringing on the democratic gains of the Orange Revolution.

The New York Times magazine wrote, “Tymoshenko is a compelling mixture of ruthless calculation, iron will, and sincere passion.”

Tymoshenko and her political bloc face four key issues in the coming months.

First, the opposition alliance is opposed by the business wing of Our Ukraine that harbors what has been described as a “Yuliaphobia.”

Second, establishing a more clearly defined ideological profile for the Tymoshenko bloc. Currently, “The charisma of Tymoshenko the leader will act as the bloc’s ideology and its program.”

The Tymoshenko bloc unites the liberal-center-left ground and the Fatherland Party has a social democratic profile giving it the ability to absorb disillusioned Socialist voters.

Third, in the 2006 elections the Tymoshenko bloc finished second place in six of eastern and southern Ukraine’s ten regions. This strength could grow and challenge the Party of Regions outside its strongholds of Donetsk and the Crimea.

Fourth, balancing between being head of the opposition and the 2009 Orange front-runner presidential candidate.

Tymoshenko’s visit to the United States follows her two successful visits to Western Europe in 2005 as prime minister and last year as opposition leader.

Her U.S. visit next week is set to change U.S. perceptions of Ukraine’s politics and reinforce her image as playing a central role in defending the democratic gains of the Orange Revolution.

Source: Eurasia Daily Monitor

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Ukrainian Lawmakers Approve Arrest Warrant For Judge Accused Of Bribe-Taking

KIEV, Ukraine -- Parliament on Thursday took the unprecedented step of issuing an arrest warrant for a judge accused of bribe-taking in southern Ukraine.


Judges in Ukraine are guaranteed immunity from prosecution and cannot be detained or arrested without the direct consent of the 450-member parliament.

Critics say the strict rules, intended to keep the courts independent, have allowed corruption to flourish.

Sergey Kivalov, who chairs Verkhovna Rada's judicial committee, asked lawmakers to approve the order to detain Arbuzysnk Court Judge Oleh Pampura.

He said it came at the direct request of state prosecutors who accused Pampura of demanding a $6,000 bribe to reduce a sentence.

"This is an unprecedented measure," he said.

Pampura, whose current whereabouts were unknown, is also suspected of receiving other bribes and pressuring witnesses to lie during his five years on the bench, Kivalov told lawmakers.

Lawmakers approved the request in a 292-1 vote.

Source: Kyiv Post

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Thursday, February 22, 2007

Ukraine Parliament Deals Blow To Leader

KIEV, Ukraine - Parliament on Thursday rejected President Viktor Yushchenko's choice to be foreign minister, dealing another major blow to his efforts to maintain control over this ex-Soviet republic's foreign policy.

Ukraine's acting Foreign Minister Volodymyr Ohryzko answers deputies' questions before the vote in Ukraine's parliament in Kiev February 22, 2007. Parliament rejected Ukrainian President Viktor Yushchenko's proposed candidate as foreign minister on Thursday, casting new doubt on the increasingly isolated leader's pledges to seek entry to the European Union and NATO.

Career diplomat Volodymyr Ohryzko, nominated by Yushchenko to replace the ousted Borys Tarasyuk, won only 196 votes, far short of the 226 needed for approval.

Lawmakers also rejected Yushchenko's choice of Viktor Korol as Security Service chief, in a 190-4 vote.

Yushchenko said he was surprised that parliament didn't approve Ohryzko, who had served as Tarasyuk's deputy.

"I want to hear from parliament why they are not satisfied with the candidacy of Ohryzko - a person who during the last 10 to 15 years held a significant place in Ukrainian diplomacy, who worked in important diplomatic spheres, who has experience that not a lot of people in Ukraine have," said Yushchenko, according to the Unian news agency.

He said he would nominate both Korol and Ohryzko again.

Yushchenko, who won the presidency after the 2004 Orange Revolution, has sought to pull Ukraine out of Russia's shadow and win membership for this nation of 47 million in the European Union and NATO.

But he has fallen far short of his ambitions, and last year, his party was humbled by the Russian-leaning party of his political rival, Viktor Yanukovych, in parliamentary elections.

When Yanukovych put together a majority coalition, Yushchenko agreed to nominate his one-time foe as prime minister, and the two govern jointly in what has become a bruising battle for power with the president on the losing end.

Yanukovych forced out Tarasyuk last month after a dispute that resulted in the government temporarily cutting off funding to the Foreign Ministry.

Under the constitution, the president gets to nominate the foreign minister, but his choice requires parliamentary approval.

Yushchenko tapped Ohryzko to replace him, but the parliamentary majority immediately expressed its disappointment with the choice.

Ohryzko came under special criticism for his decision to speak Ukrainian - and have it translated into Russian - during a conference that included Russian and Ukrainian politicians and experts.

Some attendees complained that it slowed down the talks and Ohryzko, who is fluent in Russian, should have spoken Russian.

"He showed a total absence of professionalism. He showed that he is not a diplomat, but a person with an inferiority complex," said Yanukovych ally Yuriy Bondarev.

Yushchenko's party and the bloc of former Prime Minister Yulia Tymoshenko supported Ohryzko, arguing that he was a career diplomat who had risen through the ranks of the Foreign Ministry.

Former Foreign Minister Hennadiy Udovenko, a member of Yushchenko's party, said that Ohryzko could be counted on to stick up for Ukraine.

"Today he thinks about the national interests of Kiev, of Ukraine but not about the national interests of Moscow. He doesn't grovel at the feet of our big neighbor," Udovenko said, referring to Russia.

Later, in a sign of protest over parliament's actions, opposition lawmakers from Tymoshenko's bloc cut off lights in the parliamentary hall, forcing the evening session to be conducted in the dark.

Lawmakers used flashlights and lights from mobile phones to continue working.

Source: AP

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The Separatist Card

KIEV, Ukraine -- Appearing on Ukrainian TV’s Svoboda Slova talk show last week, Communist Member of Parliament Leonid Hrach warned that the autonomous peninsula, Crimea, could split away from Ukraine if the country joins NATO.

Communist Member of Parliament Leonid Hrach

It’s no secret that Hrach, who once chaired Crimea’s legislature, would support such a drastic move.

What is worrisome, however, is that such a threat could become reality, mirroring other Moscow-backed separatist movements in the Moldovan breakaway region of Transdniester, or Georgia’s secessionist Ossetia and Abkhazia regions. And the Kremlin’s geopolitical ambitions should not be taken lightly in this regard.

Such separatist movements are clearly designed to spur instability and maintain Russian influence over former Soviet republics with European ambitions.

As the strategy goes, you first create a problem, then send your peacekeepers in with the purported intention of protecting ethnic Russians left over from Soviet days.

It’s a formula that could, in theory, be applied in Crimea, whose population is regarded as largely pro-Russian and anti-NATO. The strategy involves keeping Russian peacekeepers in the region for a long time.

It has worked in Transdniester, which fought a war with Moldova proper in the early 90s. Georgia, whose Western friendly president has continually bumped heads with the Kremlin, is also in a hard spot, with two regions bent on gaining independence from Tbilisi and aligning with Moscow.

The Kremlin’s divide-and-conquer strategy is clearly intended to complicate efforts by both newly independent states towards integrating into western structures, such as NATO and the European Union.

It is being done in Georgia and Moldova, why can’t it happen to Ukraine?

All Moscow and its agents in Ukraine, like the Communists, need to do is flare up ethnic tensions in Crimea and play up the anti-NATO card, warning residents that their sons and daughters could be sent to Iraq as combatants if Ukrainian President Viktor Yushchenko gets his way in joining the Western military alliance.

During past election campaigns, hard-pressed Ukrainian politicians have had no qualms about playing the Russian-nationalism card in various hands – the language issue, NATO, etc. – with Crimea often serving as the main game table.

Re-igniting already tense relations between ethnic Russians and Muslim Tartars, many of whom have returned to the peninsula as homeless refugees, following their exile to Central Asia by Joseph Stalin during World War II, will help catalyze this scenario.

Adding oil to the fire is the fact that Crimean Tatars have traditionally supported the camp of Ukraine’s pro-Western President Yushchenko. Another tactic the Russians have apparently employed includes efforts to hand out Russian citizenship to population pockets in former republics.

Rumor has it that more and more of Crimea’s population are accepting Russian passports. The practice has been going on for a long time in Transdniester, and it isn’t just practiced by the Russians.

The threat is real, but what should Ukraine’s leadership do?

First of all, they need to start informing the population effectively about the benefits of joining NATO. Efforts thus far have been poor, to say the least.

Ukrainian leaders also have to crack down hard on separatist movements in what Czarina Catherine the Great referred to as the pearl of the Russian Empire. Focusing on the military benefits of joining NATO, including security from an increasingly blustering Moscow, is not enough.

Ukraine’s leadership needs to point out the economic benefits of Western integration as well. For one, larger inflows of tourists who would arrive when Ukraine integrates more closely with Europe would benefit Crimea more than any other region in Ukraine.

NATO membership also equates to more sales, contracts and jobs in the military industrial complex, meaning aerospace and other hi-tech industries such as rocket building.

This should bolster support in the Russian-speaking eastern industrialized regions of Ukraine. Simply said, when you are a member of NATO, you have a solid chance of selling your products to most first, second and third world countries.

If you’re not part of the club, you are left competing with Russia for the scraps, namely third world contracts.

True, setting up joint ventures with Western aerospace and military contractors will leave Ukraine as the smaller partner in most ventures. But it should bring Ukraine’s producers the kind of experience and technology needed to step up into the major leagues.

Moreover, sales of Ukrainian produced hi-tech military hardware, such as tanks, airplanes and rockets, should exceed today’s levels many times over.

Source: Kyiv Post

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Study Detects Decline In Ukraine’s Press Freedom

KIEV, Ukraine -- A recent study conducted by an international NGO indicates that press freedom in Ukraine has gotten worse over the last year, calling into question yet another of the reforms promised by President Viktor Yushchenko during the Orange Revolution, which swept him to power in late 2004.


France-based Reporters without Borders, which conducts an annual international study on press freedom, reviewed 98 countries this year.

The results of the study point to political instability due to continuing tension between Yushchenko and Prime Minister Viktor Yanukovych as the main factor negatively affecting the country’s independent journalism.

Yushchenko defeated Yanukovych’s fraud-marred presidential bid in 2004 with promises to promote European liberties, only to support his political nemesis’ return to power last summer as a stronger-than-ever head of government.

“We would have expected that since Yushchenko came to power … the situation and the climate towards the press would have been easier, but unfortunately … [he] has encountered political difficulties he is not responsible for, which have resulted in … a reduction in press freedom in Ukraine,” said Elsa Vidal, head of the European and Post-Soviet Bureau at Reporters without Borders.

The study said that the greater press freedom achieved by the Orange government in 2005 was offset last year by physical attacks against journalists and the court system’s inability to complete the murder trial of investigative reporter Georgiy Gongadze.

Gongadze’s decapitated body was found in a wood outside Kyiv in late 2000, setting off weeks of high-profile street protests that called for the dismissal of top officials, including then President Leonid Kuchma.

As a presidential candidate and hero of the Orange Revolution, Yushchenko had promised to bring the people who ordered Gongadze’s murder and other corrupt former officials to justice.

But so far, only those who actually carried out the murder have been brought to justice.

“Violence and pressure are the most worrying events we witnessed last year,” Vidal said.

Victoria Sjumar, director of the Institute of Mass Information (IMI), a Ukraine-based NGO that supports mass media and monitors press freedom in the country, also noted a decline in Ukraine’s press freedom due to violence against journalists.

“Press freedom … has unfortunately gotten worse, although, of course it is better than it was under Kuchma,” she said.

Sjumar cited a rise in journalist beatings and attacks throughout last year. According to IMI, there were 28 such attacks compared to only 16 in 2005.

“There has also been a rise in censorship, political and economic pressure and lawsuits against journalists,” she added.

Sjumar said, “there hasn’t been any kind of institutional changes … It practically depends on the authorities in each region.”

The recent Reporters without Borders study details several instances of violence and threats against journalists throughout Ukraine in 2006.

On March 1, the home of the editor of Simferopol newspaper Pervaya Krimskaya, Lilia Bujurova, was set aflame; and on April 8, the editor of Stolichnye Novosti, Vladimir Katsman, was beaten.

The study also mentioned questionable lawsuits brought against journalists as a result of their work.

Margarita Zakora, the editor of Dzerzhynets, a weekly publication in Dniprodzerzhynsk, Dnipropetrovsk Region, faced 19 nearly-identical lawsuits filed by regional officials after publishing articles about local official corruption.

Shots were fired at her apartment, and pornographic leaflets about her and her 20-year-old daughter were distributed after she published two articles critical of a local businessman.

Journalist Vladimir Lutiev was detained in June 2005 on charges of attempting to murder a Crimean MP, only to be convicted a year later for a different crime. Lutiev had accused the MP of corruption and election fraud in one of his articles.

“Criminals understand that in this country, attacks on journalists pass without acknowledgement,” Sjumar said.

Although Reporters without Borders’ 2007 study cites a decline in media freedom in Ukraine, a 2006 index compiled by the same organization showed Ukraine improving its press freedom rating in relation to other countries listed.

Vidal said the discrepancy is due to a decrease in world press freedom in general, rather than to an improvement in Ukraine.

In the 2006 index, which rated 168 countries, Ukraine rose seven slots to position 105 from its ranking in 2005 at 112th, tying with India.

According to the index, countries of the former Soviet Union are the worst offenders of press freedom in Europe.

While Moldova (85) and Georgia (89) scored markedly higher than Ukraine, Russia (138) and Belarus (151) neared the bottom of the index.

Central Asian countries in the CIS scored less than Ukraine, with Uzbekistan (158) and Turkmenistan (167) nearing the very bottom.

Reporters without Borders also noted a “steady erosion of press freedom” in several democratic countries, including France (35), Japan (51), and the U.S. (53), whose situations it characterized as “extremely alarming.”

According to the 2007 study, at least 110 journalists were killed worldwide in 2006, the most recorded work-related deaths in journalism since 1994.

Source: Kyiv Post

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Wednesday, February 21, 2007

Ukraine Opposition Plans To Oust Current Government

KIEV, Ukraine -- Ukraine's outspoken opposition leader, Yulia Tymoshenko, said Wednesday her eponymous bloc and pro-presidential faction Our Ukraine will announce plans to sack the government led by Viktor Yanukovych.

Opposition leader Yulia Tymoshenko

Opposition in the Ukrainian parliament is consolidating efforts in the struggle between the pro-presidential and pro-premier factions which over the past six months has seen several ministers appointed by President Viktor Yushchenko and then dismissed by the Supreme Rada.

"I think we [Bloc of Yulia Tymoshenko and Our Ukraine] will be able either on Thursday or Friday to propose a solid algorithm outlining the ways to oust those who are destroying our country every day," said Tymoshenko, a key figure in the 2004 'orange revolution' that brought to power the Western-leaning president.

Opposition factions demand an urgent discussion of draft laws on pension and salary increases and on controlled rise in tariffs for housing and communal services.

On Tuesday and Wednesday, deputies from the Yanukovych's Party of Regions blocked access to the podium at the Supreme Rada in order to prevent opposition members from interrupting the current session.

Source: RIA Novosti

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Angola: Ukraine To Contribute To Army's Development

LUANDA, Angola -- The Ukrainian government will upgrade, technically and scientifically, the Angolan Armed Forces (FAA), as well as support the equipping of its three branches with new technology, said this Tuesday in Luanda the deputy General Staff Chief of that country's Armed Forces, vice-admiral Igor Kniaz.

Angolan government recruits learning the mechanics of an AK-47 assault rifle

Igor Kniaz, who heads a military delegation that arrived in Luanda this Tuesday, came for a four-day work visit to Angola.

Speaking to the press, In Luanda's 4 de Fevereiro International Aiport, the Ukrainian official said that the priority is directed to the Angolan National Air Forces (FANA), in the training of pilots.

"Ukraine will give priority to the development of FANA, in the areas of recovery and equipping of aircrafts and other techniques, as well as in training and upgrading pilots ".

He also announced that two technical cooperation agreements are to be signed between the Defence Ministries of both countries.

"During our stay in Angola we will analyse documents that will enable us to sign military partnership accords between the two states.", he said, announcing also that they intend to invite the Angolan Defence minister, Kundy Paihama, to visit Ukraine to formalise the agreements.

The visiting Ukrainian military delegation was welcomed at the airport by the FAA's deputy Chief of Staff for the administrative area, general Abreu Muengo Ukuachitembo "Kamorteiro".

Source: Angola Press Agency

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Holocaust Monument, Hundreds Of Jewish Graves Defaced In Ukraine

KIEV, Ukraine — A monument to Holocaust victims and 240 Jewish graves have been defaced with swastikas in southern Ukraine, an activist with a local Jewish community said Tuesday.


Unidentified vandals desecrated the Holocaust Monument late Sunday with red swastikas and with the inscription "Congratulations on the Holocaust" and painted swastikas on 270 graves in a Jewish cemetery in the Black Sea port of Odessa, said Boleslav Kapulkin, a spokesman for Odessa's Jewish community.

"It is awful. They insulted all Ukrainians and hurt Ukraine's image," Kapulkin told The Associated Press.

The monument was erected at the site where thousands of Jews were killed and burned by the Nazis between 1941-1944.

Kapulkin said police launched a probe into the vandalism.

Ukraine is home to about 100,000 Jews.

Hundreds of thousands of Jews perished over the centuries in pogroms staged by Ukrainian nationalists, and millions died during the Holocaust.

Source: FOX News

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Tuesday, February 20, 2007

Russian Gen. Warns On Missile Defense

MOSCOW, Russia -- In a statement reflecting the growing distrust between Moscow and the West, a top Russian general on Monday warned that Poland and the Czech Republic risk being targeted by Russian missiles if they agree to host U.S. missile defense bases.

Russian missile forces chief Gen. Nikolai Solovtsov speaks to the media, Moscow, Monday, Feb. 19, 2007. Speaking on U.S. proposal to base a missile shield in Poland and the Czech Republic he warned Monday that the plan could prompt Moscow to target the former allies with its own missiles

The stark threat, by missile forces chief Gen. Nikolai Solovtsov, was one of the most bellicose comments yet by Russian officials on the issue, which 10 days ago led President Vladimir Putin to warn of a "new Cold War" in a speech in Munich that shocked Western governments.

"If the governments of Poland and the Czech Republic take such a step ... the Strategic Missile Forces will be capable of targeting these facilities if a relevant decision is made," Solovtsov told reporters in Moscow, asserting the U.S. plan could upset strategic balance of power in the region.

Solovtsov spoke as Czech Prime Minister Mirek Topolanek and his Polish counterpart, Jaroslaw Kaczynski, both in Warsaw, suggested they were ready to move forward with a plan by Washington to put 10 interceptor missiles in Poland and a radar site in the Czech Republic.

Topolanek said both countries will probably agree to the basic U.S. proposal, though they must still work out the details. "I think it is in our joint interest to negotiate this initiative and to build ... the missile defense," he said.

U.S. officials say that the 10 proposed interceptors _ which they say are designed to stop a launch from the Middle East _ are not aimed at Russia.

Moscow, with its huge and sophisticated nuclear arsenal, could easily overwhelm such a small system simply by launching more than 10 missiles.

Putin has said he does not trust U.S. claims that the missile defense system was intended to counter threats from Iran. He has warned that Russia could take retaliatory action.

Solovtsov, speaking before the announcement in Warsaw, voiced concern that Washington could in the future expand and upgrade the anti-missile system.

That could, at least in theory, limit Russia's ability to retaliate to a nuclear missile strike against its territory.

Solovtsov also said Russia could easily make new, upgraded versions of Russian intermediate-range missiles scrapped under the Intermediate Range Nuclear Forces (INF) Treaty, negotiated between Soviet leader Mikhail Gorbachev and President Ronald Reagan in 1987.

Kaczynski, the Polish prime minister, brushed aside Moscow's fears, saying "the missile defense is not directed against any normal state."

"Any statement suggesting that the missile defense would change the alignment of forces in Europe is a misunderstanding," he said. "This truth is being conveyed to our partners in the West and the East."

Analysts said the angry words reflect the growing climate of suspicion between Moscow and the West.

Slawomir Debski, at the Warsaw-based of the Polish Institute of International Affairs, said Moscow's reaction "means that the Russian Federation see the U.S., Poland and the Czech Republic as enemy nations."

"The reaction shows that the rationale behind Poland's and Czech Republic's ties with the U.S. are correct," Debski said. "It proves this is the right alliance and that we need it because Russia is threatening us with nuclear weapons."

Alexander Rahr, a Russia expert at the German Council of Foreign Relations, said Russia is irritated because it feels that it is being ignored by Washington. "It shows there is a new Cold War, in their heads."

Washington should have tried harder to persuade Moscow to accept the new anti-missile system before proceeding with efforts to deploy it, he said. "We humiliate Russia on these issues. We could have proposed cooperation to Russia, and if they said no, then we do it," he said. "But we say first, you Russians ... don't matter."

Rahr said Russia sees the missile system as payback for its sales of air defense missiles to Iran and Syria.

Russia also views the move, he said, as an attempt to bind NATO members Poland and the Czech Republic, which Moscow dominated during the Soviet period, more tightly into the Western military alliance - whose expansion Russia has long opposed.

Alexander Pikayev, a senior analyst at the Moscow-based Institute for World Economy and International Relations, said the missile defenses will have "a negative effect on the whole system of Russian-U.S. relations."

Because of their limited speed and range, the European anti-missile system could not stop Russia's strategic missiles, he said.

But Russian leaders are concerned that once the system is in place, it could be expanded and upgraded to create such a threat.

He said the move could prompt Moscow to question its commitment to arms control treaties _ something at which top Russia officials have already hinted.

He predicted Russia would escalate its efforts to block the expansion of NATO to the former Soviet states of Georgia and Ukraine.

Last month, U.S. Air Force Lt. Gen. Henry A. Obering, director of the Missile Defense Agency, said the bases in Poland and the Czech Republic would be designed to intercept missiles being developed by Iran.

Two other bases _ at Fort Greely, Alaska, and Vandenberg Air Force Base in California _ would protect the U.S. from threats from North Korea, Obering said.

Critics of the anti-missile system say it has not adequately been tested to prove it works. The interceptor missiles launch a small EKV, or exoatmospheric kill vehicle, designed to collide with an incoming warhead at high speed.

Obering has said that there was no way the limited number of interceptors could neutralize the hundreds of missiles at Russia's disposal.

Source: AP

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Monday, February 19, 2007

Brazil To Enter Satellite Launching Market With Ukraine's Help

ALCÂNTARA, Brazil -- The Brazilian government has informed that a joint venture company for rockets and satellites, established by Brazil and Ukraine, should begin operating this year.

Alcântara Base in the state of Maranhāo, in the Brazilian Northeast

The information was disclosed by the Director for Space Policy and Strategic Investments at the Brazilian Space Agency (AEB), Himilcon Carvalho, in an interview to the state-owned Rádio Nacional radio station.

The partnership is aimed at launching rockets and satellites from the Alcântara Base, in the northeastern Brazilian state of Maranhão.

The first launch should take place by 2009, according to the AEB, which completed 13 years of existence on February 10th, 2007.

Brazil will make available its launch area in Alcântara and the Ukrainians will provide the launching technology developed in Ukraine.

The company is expected to profit the equivalent of roughly 10% of the global satellite launching market, worth US$ 10 billion, over the next eight years, since countries that own satellites will be able to pay to use the base and the launching technology.

Carvalho also said that another goal of AEB is to launch the third satellite, built in partnership with China, which will provide images of the national territory, such as deforested areas in the Amazon, for instance.

"We are currently preparing our third satellite, to be launched in 2007. The satellite is being finished after a test assembly phase in the city of São José dos Campos (southeastern Brazilian state of São Paulo), at the National Institute for Space Research (Inpe)," he claimed.

Source: Brazil Magazine

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Armies Boot Out Soviet Tradition

MOSCOW, Russia -- The post-Soviet armies of Ukraine and Belarus are set to part with one of their oldest traditions.

Canvas boots have been a fixture in the Russian army for centuries

Defence ministries in both countries are decommissioning traditional foot bindings and canvas boots.

For centuries they formed part of a soldier's standard uniform across the Russian empire.

Then the Soviet Union inherited the tradition and after its demise in 1991 many of its successor countries preserved this tradition.

Early service regulations of the Red Army even explained in great detail how to wear the boots and how to wind on the foot bindings.

For soldiers, the learning curve was steep. Alexander - who served as a tank gunner in the 1980s - says that in the first few weeks of the military service his feet were covered with bleeding wounds.

Sore feet

"You can't just stick your feet in and go off on a cross-country march" - he recalls.

"It takes a while to get used to the foot bindings and to the canvas, and then you grow enormous corns, and just don't care any longer. Your feet become so hard you can drive in nails with your toes".

A traditional foot binding is a rectangular piece of thick cloth 35 by 90 centimetres (13.6 by 35 inches) in size.

First worn with bast sandals by Russian peasants, they remained almost unchanged through the ages.

But, for all the blood, sweat and tears involved in wearing bindings, former soldiers say the thick cloth and the canvas boots were a perfect match.

Former infantryman Ian Leder described typical Soviet boots as "a tough piece of work".

"There were stitches in places where you'd least expect them. And measurements were rather vague. So the thicker the layer between your feet and your boots, the better", he says.

Cold climate

Some long-serving privates did try to switch to socks, but very soon they all went back to the foot bindings.

Advocates of the tradition say cheap and virtually indestructible boots and foot bindings suit the cold Russian climate better than the refined footwear of Western armies.

And in the marshland, there is almost no danger of water making its way inside.

So, while large parts of Russia remain off-limits to anyone but the toughest, generals in Moscow do not seem prepared to move on.

Russia's neighbours face a terrain which is, arguably, less challenging.

This could, perhaps, explain their post-Soviet change in footwear priorities.

Defence chiefs in Ukraine say there is a need to maintain hygiene in the army and to make soldiers' lives more bearable.

In Ukraine, the old tradition will be phased out within a few months.

Belarus is taking things slower. There, the last pair of canvas boots and matching bindings will only be laid to rest in 2010.

Source: BBC News

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Silence of America

WASHINGTON, DC -- For decades, the Voice of America and its sister broadcasting organizations offered a remarkably balanced alternative to state-controlled media all over the world, buoying dissident movements and undermining anti-American dictatorships for a relatively small investment.

Voice of America radio studio

Soviet citizens even learned how to reconfigure their radios to break through the jamming signals their government used to interrupt VOA and British Broadcasting Corp. programming.

Now, with Russian President Vladimir Putin bullying his neighbors, manipulating the Russian media and throwing increasingly audacious anti-American tantrums, one would think U.S. policymakers would have the sense at least to maintain relatively modest VOA operations in and around the Russian Federation.

Yet President Bush's recently released 2008 budget proposal does just the opposite, cutting VOA programming for a range of post-Soviet states to finance programming expansion in other areas of the world.

The White House's proposed reprioritization of VOA broadcasting moves money out of operations aimed at the large and largely Muslim country of Uzbekistan.

Broadcasting into neighboring Kazakhstan is also being cut.

The citizens of both countries live under illiberal regimes, and Uzbekistan's brutal dictatorship is of the sort that incubates religious fundamentalism and anti-Americanism.

Voice of America's half-hour of radio and half-hour of television programming in Uzbek, says a VOA staff member, provide about the only direct contact Uzbeks have with the United States and the only unvarnished news in the region.

Meanwhile, the highly controlled Russian media beam their often misleading programming in with ease.

Mr. Bush's budget also proposes reductions in Ukrainian-language VOA programming to serve a country struggling to Westernize in the shadow of Mr. Putin's increasingly lawless regime.

Mr. Bush should be eager to encourage democratic forces in Ukraine, as well as in Kazakhstan and Uzbekistan, not further limit their sources of information about the United States.

The price of such programs is so low that federal financial constraints are hardly an excuse to kill them; a relatively tiny increase in the VOA's budget would make a world of difference.

Source: Washington Post

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Ukraine Crash Due To Pilot Error

MOSCOW, Russia -- The official report into the crash of a Russian passenger jet over Ukraine last year has concluded that pilot error was to blame.

Russia says ageing Tupolev planes of this type will be phased out

All 170 people on board the Pulkovo Airlines Tupolev 154 were killed after it came down in bad weather in a field near Donetsk last August.

The report said a trainee pilot was at the controls at the time of the accident.

It said the more experienced pilot failed to assist him.

The Russian Interstate Aviation Committee blamed the crash on "a lack of control over flight speed and a failure to carry out instructions on preventing the plane from stalling".

It also said the pilots were inadequately prepared for flying in stormy conditions, and that the training instructions for the plane contained no appropriate guidance for flying in such a scenario.

The plane was flying in bad weather from the Russian resort of Anapa to St Petersburg on 22 August.

Russia's Transport Minister Igor Levitin said the ageing Tu-134 and Tu-154 aeroplanes are to be retired from civilian use over the next five years, according to reports.

Pilot training requirements are also to be increased.

"We will toughen procedures for testing pilots, increasing the number of training hours, especially for co-pilots," he was quoted as saying by RIA-Novosti news agency.

In 2006 there were three major air disasters involving a Russian airline or airport.

Source: BBC News

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Sunday, February 18, 2007

Is Russia Trying To Start A New Cold War?

WASHINGTON, DC -- Vladimir Putin - Russia's president, although the more accurate title would be godfather - made headlines last week with a speech in Munich that set a new standard in anti-Americanism.

Russia's President and ex-KGB agent Vladimir Putin

He charged the U.S. with the "hyper-use of force," "disdain for the basic principles of international law" and having "overstepped its national borders in the economic, political, cultural and educational policies it imposes on other nations."

He even blamed the spread of weapons of mass destruction, which the U.S. has been combating with few allies and against constant Russian resistance, on American "dominance" that "inevitably encourages" other countries to defensively acquire them.

There is something amusing about criticism of the use of force by the man who turned Chechnya into a smoldering ruin; about the invocation of international law by the man who will not allow Scotland Yard to interrogate the polonium-soaked thugs it suspects of murdering Alexander Litvinenko, yet another Putin opponent to meet an untimely and unprosecuted death; about the bullying of other countries decried by a man who cuts off energy supplies to Ukraine, Georgia, and Belarus in brazen acts of political and economic extortion.

Less amusing is the greater meaning of Putin's Munich speech. It marks Russia's coming out. Flush with oil and gas revenues, the consolidation of dictatorial authority at home, and the capitulation of both domestic and Western companies to his seizure of their assets, Putin issued his boldest declaration yet that post-Soviet Russia is preparing to reassert itself on the world stage.

Perhaps the most important line in his speech was the least noted because it seemed so innocuous. "I very often hear appeals by our partners, including our European partners, to the effect that Russia should play an increasingly active role in world affairs," he said. "It is hardly necessary to incite us to do so."

Soviet foreign minister Andrei Gromyko once boasted that no conflict anywhere on the globe could be settled without taking into account the attitude and interests of the Soviet Union. Gromyko's description of Soviet influence constitutes the best definition ever formulated of the term "super- power."

And we know how Putin, who has called the demise of the Soviet Union the greatest political catastrophe of the 20th century, yearns for those superpower days. At Munich, he could not even disguise his Cold War nostalgia, asserting that "global security" in those days was ensured by the "strategic potential of two superpowers."

Putin's bitter complaint is that today there remains only one superpower, the behemoth that dominates a "unipolar world." He knows that Moscow lacks the economic, military, and even demographic means to challenge America as in Soviet days.

He speaks more modestly of coalitions of aggrieved have-not countries that Russia might lead in countering American power.

Hence his increasingly active foreign policy--military partnerships with China, nuclear cooperation with Iran, weapon supplies to Syria and Venezuela, diplomatic support as well as arms for a genocidal Sudan, friendly outreach to other potential partners of an anti-hegemonic (read: anti-American) alliance.

Is this a return to the Cold War?

It is true that the ex-KGB agent occasionally lets slip a classic Marxist anachronism such as "foreign capital" (referring to Western oil companies) or the otherwise weird adjective "vulgar" (describing the actions of the Organization for Security and Cooperation in Europe, which infuriated Putin by insisting upon a clean election in Ukraine).

He even intimated that he might undo one of the unequivocal achievements of the late Cold War era, the so-called "zero option" agreement of 1987, and restore a Soviet-style medium-range ballistic missile force.

Nonetheless, Putin's aggressiveness does not signal a return to the Cold War. He is too clever to be burdened by the absurdity of socialist economics or Marxist politics. He is blissfully free of ideology, political philosophy, and economic theory.

There is no existential dispute with the United States.

He is a more modest man: a mere Mafia don, seizing the economic resources and political power of a country for himself and his mostly KGB cronies. And promoting his vision of the Russian national interest--assertive and expansionist--by engaging in diplomacy that challenges the dominant power in order to boost his own.

He wants Gromyko's influence--or at least some international acknowledgment that Moscow must be reckoned with--without the ideological baggage. He does not want to bury us; he only wants to diminish us.

It is 19th-century power politics at its most crude and elemental.

Putin does not want us as an enemy. But at Munich he told the world that vis-à-vis America, his Russia has gone from partner to adversary.

Source: Washington Post

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Ukraine Identities: Shevchenko Blundered Joining Chelsea

KIEV, Ukraine -- Dynamo Kiev president Ihor Surkis says moving to Chelsea was the worst decision Andriy Shevchenko has made in his career.

Andriy Shevchenko

Surkis struck a close relationship with Shevchenko when the Ukrainian ace was with Dynamo and he told the Independent on Sunday: "Moving to Chelsea was the biggest mistake in Andriy's career.

"I told him he wouldn't play his best there because they don't trust him. The coach has to trust him and stop nagging him. He's not an ordinary player; he's a player of the highest level.

"A change of team could give Andriy new impetus.

"Chelsea spent a huge amount on him and will try to recover their outlay, so he must struggle in London until the summer and then consider his position.

I really hope I'll be able to agree with Andriy the terms by which he'll return to Dynamo, just like I did with Rebrov."

Meanwhile, Viktor Leonenko, a centre-forward at Dynamo Kiev when Shevchenko first broke into the team, has described Chelsea's treatment of Sheva as "brainless".

Chelsea is just not his team," Leonenko went on. "To talk of a player of his level needing a period of adaptation is nonsense. He had no such problems going to Milan."

Another former Dynamo forward, Oleh Salenko, reasoned: "Andriy must decide what is more important for him - to play football or to indulge his wife.

"Returning to Dynamo would probably be the best thing for him now, but is his wife going to swap the capital of England for Kiev?"

Source: Tribal Football

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Voronin Off To Anfield

LIVERPOOL, England -- Liverpool are set to sign Ukraine international Andriy Voronin in the summer from Bundesliga side Bayer Leverkusen.

Andriy Voronin

The striker is out of contract at the end of the season, and it was widely reported that he would leave on a Bosman, with Celtic said to be one of the sides chasing him.

However, after Leverkusen's 1-0 defeat to Hannover on Saturday it was revealed that Voronin would sign for Liverpool instead.

The 27-year-old has scored six league goals this season, and was a key member of the Ukraine team that reached the quarter-finals of the 2006 World Cup.

He has reportedly agreed a four-year deal with the Anfield club, and his signing looks set to be the first confirmed move under Liverpool's new American owners.

Source: Eurosport

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Saturday, February 17, 2007

Distributors To Profit On Ukrainian

KIEV, Ukraine -- Nearly a year since its first attempt to bring Ukrainian language into the nation’s cinemas, the government has announced an agreement with most distributors that will introduce more imported films in the country’s official state language.


In anticipation of more Ukrainian-language dubbing contracts, film distributors are already planning to invest in the expansion of their sound facilities.

A voluntary memorandum signed on Jan. 22 by the Culture Ministry, film distributors and cinema chains stipulates that by the end of 2007 at least half of the movies shown in the country will be dubbed or subtitled into Ukrainian.

Each movie released in Ukraine will have to have an equal number of Russian and Ukrainian copies.

By the same deadline, all children’s movies will have to be in Ukrainian.

Dubbing opportunity

Seeing the market potential, Ukrainian and foreign companies are hurrying to capitalize on the expected demand for Ukrainian dubbing.

Polish native Bohdan Batruch, CEO and owner of B&H, an official distributor of United International Pictures, Paramount, Dreamworks, Walt Disney and other Hollywood majors, said the increased demand for Ukrainian-language dubbed movies in cinemas will bring down the cost of dubbing.

Batruch said his company currently has to use highly overpriced Ukrainian studios to record the voices of local actors, which then have to be sent to European studios for mixing with the soundtrack in the Dolby format.

But with more contracts for Ukrainian-language dubbing, he plans to launch his own sound-studio and thus cut such costs.

B&H plans to invest up to $2 million into new dubbing facilities. Batruch expects the new facilities to decrease dubbing expenses by two thirds.

Batruch said that the dubbing of a single movie into Ukrainian could cost up to $60,000. He plans to open his new sound mixing facility, which will also accept orders from other distributors, in June.

Hanna Chmil, the head of Ukraine’s State Cinematography Service, said the state also plans to get in on the new business opportunity, investing $2 million into modern copy making equipment that meet the standards of modern cinemas.

St. Petersburg-based Nevafilm, a company that possesses one of the largest dubbing studios in Russia and which started dubbing into Ukrainian last year, also plans to open its own recording facility in Kyiv. Nevafilm will keep its Dolby sound mixing facility in St. Petersburg, however.

Nevafilm development director Tatiana Gasevskaya said the move is more about new market potential than high prices charged by Ukrainian studios’ services.

“We constantly have orders for Ukrainian dubbing,” she said.

Gasevskaya added that it is still premature to say whether opening a full cycle facility in Ukraine would be economically viable option for Nevafilm.

“The Ukrainian government is well-known for changing its decisions on very short notice, so no one knows for how long the new quotas will be in place.”

The language games

The new quotas will not affect Russian-made movies or so-called art-house movies, made by European, American or Asian independent film studios. Such movies are usually released in small numbers.

According to the Culture Ministry, distribution companies controlling up to 90 percent of Ukraine’s market signed the recent memorandum.

The government’s last attempt to introduce quotas for the Ukrainian language in the film industry back in January 2006 failed. The decision was cancelled by a Kyiv court several months later.

The Law on Cinematography, passed in 1998, requires all films shown in Ukraine to be either 100 percent dubbed into the state language or edited with subtitling in Ukrainian. The law has been largely ignored by the market, however.

Chmil described the memorandum as a “compromise” between the state and the film industry. It will allow the latter to gradually switch over to expected full Ukrainian dubbing, she added.

Batruch, who also operates Ukraine’s largest cinema chain, Kinopalats, boasting 14 venues, said the new memorandum simply reflects the real situation on the market.

Movies in Ukrainian already gross more than the same titles with the Russian dubbing, he said.

The Ukrainian dubbing of “Deja Vue,” one of the most recent titles distributed by B&H, grossed $245,000 nationwide, compared to box office draws of only $155,000 for the Russian-language version during the same timeframe, he added.

Batruch said that the difference is even more striking when it comes to children’s movies. For example, he said, “Charlotte’s Web” grossed $212,000 in Ukrainian and only $77,000 in Russian, despite having virtually the same number of copies released in Ukrainian and Russian.

“It is a myth that Ukrainians wouldn’t want to watch a movie in Ukrainian,” Batruch said, as the country’s secondary and higher education systems are predominantly in Ukrainian.

Soviet leaders pushed hard to establish Russian as the predominate language in Ukraine and other Soviet republics.

It was the language used in education and other important venues. Usage of Ukrainian was rare in the country’s capital Kyiv during Soviet days, for example. Many in the capital didn’t even understand Ukrainian.

But now, “there is a new generation of moviegoers who would hardly notice any difference,” Batruch added.

Source: Kyiv Post

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U.S. House Foreign Affairs Committee Passes NATO Expansion Bill

WASHINGTON, DC -- The U.S. House of Representatives Committee on Foreign Affairs approved a draft document Thursday promoting future NATO expansion eastward.


According to the draft, the NATO Freedom Consolidation Act of 2007 reaffirms U.S. support for the continued enlargement of NATO to democracies able and willing to meet the responsibilities of membership.

The draft legislation calls for the timely admission of Albania, Croatia, Georgia and Macedonia to NATO, and authorizes security assistance to those countries and Ukraine in fiscal 2008.

The bill also affirms U.S. readiness to consider, and if all applicable criteria are satisfied, to support efforts by Ukraine to join NATO, if Ukraine declares its willingness to meet the responsibilities of membership in the alliance.

The committee has forwarded the draft document to the House of Representatives for further approval.

Both Georgia and Ukraine have long announced their plans to pursue integration with NATO, but the Russian leadership has repeatedly voiced concern over NATO's ongoing eastward expansion.

As well as being uneasy about the opening of NATO bases on the territory of Russia's former Soviet allies in the Baltic Region and Central Asia, Moscow strongly opposes efforts by Georgia and Ukraine to join the Western military alliance, saying the prospect threatens the security of the Russian Federation.

Addressing the 43rd Munich Conference on Security Policy earlier this month, Russian President Vladimir Putin said NATO's eastward expansion is affecting Russia's relationship with the North Atlantic alliance and has nothing to do with modernizing the military bloc.

"It is evident that the process of NATO expansion has nothing to do with modernizing the alliance or with ensuring security in Europe. On the contrary, it is seriously eroding mutual trust," the Russian leader said.

Putin said NATO's expansion toward Russia's borders has nothing to do with countering global threats, specifically terrorism.

"Why do they have to move their military infrastructure closer to our borders?" he said. "Is this connected with overcoming global threats today?"

Since the collapse of the Soviet Union, 10 Eastern European countries - the Czech Republic, Hungary, Poland, Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia - have formally signed up to the North Atlantic Treaty, and become members of the organization.

At present, three countries - Albania, Croatia and the former Yugoslav Republic of Macedonia - are part of NATO's Membership Action Plan, a program designed to provide support for countries wishing to join the alliance.

Ukraine and Georgia are not yet part of the Membership Action Plan.

Source: RIA Novosti

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Friday, February 16, 2007

Retail Sales Of Mobile Phones Up

KIEV, Ukraine -- Fuelled by rising demand for telecommunications services, stronger competition among the country’s mobile communications providers and an overall drop in mobile phone prices, the sale of mobile phones skyrocketed last year to an all time high.

The Samsung E500 a very popular mobile phone with the ladies

However, industry insiders and observers predict a slowdown and eventual decline starting as early as this year.

The sale of mobile handsets in Ukraine rose 67 percent year-on-year in 2006, reaching an all-time high of 10 million units, AVentures Group retail chain said in a recent report.

In monetary terms, 2006 sales amounted to $1.53 billion.

AVentures Group, which controls several companies involved in wholesale and retail of mobile handset, called mobile handsets retail one of the biggest businesses in Ukraine.

Oleksiy Semenko, deputy director of Mobilochka, a leading Ukrainian cell-phone retailer, said the country’s mobile phone business has grown aggressively in recent years and currently ranks as one of the largest in Europe.

Last year, Ukraine surpassed Spain in terms of mobile subscriber base and is currently ranked 6th in Europe. He added, however, the sharp growth is already cooling down.

“The year 2006 was a record-breaking year in absolute numbers, in the number of mobile handsets sold, whereas in relative figures it only made 67 percent growth versus 117 percent in 2005,” said Semenko.

Serhiy Doropheyev, marketing research department director at AVentures Group, said sales are expected to remain high but will not increase significantly this year, as the number of new mobile phone users has peaked, reaching 100 percent penetration levels.

The market growth rate expected for 2007 will be only 5 percent, with 10.5 million handsets expected to be sold, he predicted.

Semenko predicted that mobile phone sales could even decline by about 9 percent this year.

The surge in sales has been driven by several factors, including the availability of more affordable mobile phones, rising income and overall rising demand for mobile telecommunication services, Doropheyev said.

Last year, about 45 percent of all mobile phone sales were attributed to existing users buying new phones. A large share of phone sales was driven by the arrival of new mobile telecommunication service users.

For example, Kyivstar, the leading mobile phone service provider in terms of subscriber base, posted a 54.5 percent rise in clients last year.

The company finished the year off with 21.5 million subscribers.

UMC, Ukraine’s second largest mobile telecom services provider, trails not far behind with about 20 million subscribers.

But penetration levels in Ukraine, a country of 47 million, are reaching their max. As a result, about 90 percent of all mobile phone sales this year are expected to come from existing users replacing older phones.

The arrival of third-generation mobile phone technology, which allows for video conferencing and other new hi-tech services, could trigger an additional surge in mobile phone sales.

The arrival of 3G, expected this year or next, could prompt users to upgrade to top of the line phones that support this technology.

Source: Kyiv Post

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Thursday, February 15, 2007

Importing Acute Embarrassment

KIEV, Ukraine -- “Why do Americans support the wrong guy,” I was recently asked – alluding to Viktor Yanukovych’s American spin doctors.

America is once again supporting the wrong guy

I’d been asked this before during the past year, and I’m never sure whether to answer this by reciting that American quip, “politics is show business for ugly people,” or explain American-style political campaigns in terms of Applied Potemkin Theory.

Ukrainians have had lots of experience with electing wrong guys (and therefore sympathize with recent American experience in this area), but this inconvenient fact of American involvement with promoting the wrong guy from Donetsk over the Orange Messiah is increasingly difficult to hide. Or dismiss.

It’s not the CIA, I said – they do revolutions, as you know. It is just some free-lancing American beeznezmeny from those Washington political consulting firms that make lots of money by telling politicians what clothes to wear and how to paint their hair and when to smile broadly. And in this case, speak Ukrainian.

“But why are all these guys Republicans,” I was asked. Ukrainians haven’t yet had much experience with political systems organized around multiple political parties (blocs), and they still think that political parties are actually grounded in certain philosophical principles.

From this perspective, it certainly appears that Yanukovych got (and still gets) disproportionate Republican support from the United States because Paul Manafort of Davis Manafort & Freedman is not the only GOP influence assisting the Yanukovych machine. Another is Robert Dahl, former advisor to Newt Gingrich when he was Speaker of the House. And there’s more, too.

During Yanukovych’s visit to Washington last December, it was reported here in Kyiv that prominent Republicans in Washington (including Gingrich) sought unsuccessfully to make the Ukrainian PM’s visit more visible by pressing the White House for face time with President Bush; those efforts failed and Yanukovych had to settle for Cheney and Rice without the coveted photo-ops.

Two days after Yanukovych left for Washington, Yanukovych’s 25-year-old MP son and 10 others (four Regions MPs, aides and girlfriends and Ukrainian businessmen) were transported to Washington and back to Kyiv on a non-stop private jet reportedly chartered for $200,000 by MIC Industries, an American supplier of military hardware where former GOP senator from Maine William Cohen is chairman of the board and Republican Richard Armitage a board member.

Cohen, former Secretary of Defense in the Clinton administration, is now president of The Cohen Group, an international business consulting firm with interests in the region. In Washington, Ukraine’s four visiting Regions MPs met with “senators and high-ranked officials from the former Republican majority,” including Cohen, while the three Ukrainian businessmen visited an American company near Washington to learn “how to build houses and facilities for animals within a short time.”

The premier’s son refused to tell reporters who he met with, but said he left Washington for New York “to have a walk in the park away from other delegates.” After investigating this group’s curious and expensive visit to America, the Ukrayinska Pravda Internet website wondered, “Is a charter airplane for PM Yanukovych’s son a typical American hospitality?”

Days following Yanukovych’s December visit to the States, former Enron lobbyist and Republican National Committee chairman Ed Gillespie, now another political consultant for hire, flew to Kyiv where he was accorded a VIP welcome by the Yanukovych government and rushed through Borispol airport’s special passport and customs processing ordinarily reserved for visiting state diplomats.

Near the end of December, Germany’s Der Spiegel magazine reported that another Republican political consultant, Phillip Griffin, remains in Kyiv to this day, maintaining a “deliberately low-key presence in a ground-floor office at 4 Sofievska Street” where there is “no sign on the door, no doorbell and no security guard.”

Like Manafort, Griffin continues as a “behind-the-scenes operator who makes, but never appears, in headlines.” Previously, Griffin was director of the Moscow office of the International Republican Institute.

It’s hard to avoid connecting the dots, and coincidence isn’t very persuasive as an explanation for the apparently aggressive involvement of American Republicans with the current Ukrainian government. Some Ukrainian cynics see an explanation in shared values — about greed and crony capitalism, arrogance of power and pervasive secrecy.

Source: Kyiv Post

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Sharapova Donates $100,000 To Chernobyl Victims

NEW YORK, NY -- Maria Sharapova, the world's top-ranked female tennis player, on Wednesday became a goodwill ambassador for the U.N. Development Fund and donated $100,000 to help victims of the Chernobyl nuclear disaster.

Tennis star Maria Sharapova poses with UNDP Associate Administrator Ad Melkert (L) after donating 100,000 U.S. dollars to Chernobyl recovery projects and becomes a Goodwill Ambassador for the United Nations Development Programme

At a crowded press conference, Sharapova, 19, said she gave the money to eight U.N. development projects in rural communities in Belarus, Russia and Ukraine for youths still suffering from the April 1986 Chernobyl power plant explosion.

The world's worst nuclear accident in the Ukraine spewed clouds of radioactive dust into parts of Europe, Russia and especially Belarus, making large areas uninhabitable.

"My first step is to focus on the Chernobyl-affected region, where my family has roots," Sharapova said. "Today, it is poverty and lack of opportunities that pose the greatest threat for young people in the Chernobyl region."

Sharapova's family left Gomel in Belarus after the Chernobyl accident. She was born in Nyagan in Siberia a year later but left Russia for the United States at age 9 to study tennis. She won Wimbledon in 2004 and the U.S. Open in 2006.

Sharapova is one of the highest paid female athletes, earning nearly $19 million last year in advertising endorsement and prize money and endorsements, according to Forbes magazine.

Individual U.N. agencies have used numerous goodwill ambassadors, beginning with UNICEF, the U.N. Children's Fund, in the 1950s. Other envoys, like retired boxer Muhammad Ali, and actor Michael Douglas serve as peace envoys for the U.N. secretary-general.

Goodwill ambassadors for UNDP include soccer stars Ronaldo of Brazil, Zinedine Zidane of France and now also Didier Drogba of Ivory Coast as well as Crown Prince Haakon Magnus of Norway, Japanese actress Misako Konno and U.S. basketball star Dikembe Mutombo, a native of the Democratic Republic of Congo.

Source: Reuters

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Wednesday, February 14, 2007

Will The Orange Team Re-unite?

KIEV, Ukraine -- As Ukraine’s parliament reconvened after the winter recess, the caucuses of the pro-presidential Our Ukraine (NU) bloc and the Yulia Tymoshenko Bloc announced they would act as a unified opposition.

Viktor Yushchenko hosting a ball for Kiev's diplomatic corps

NU and Tymoshenko have at least two common goals – early parliamentary elections and reversing last year’s constitutional reform. It is difficult to predict, however, whether this unity will last for long, as many influential members of NU do not trust Tymoshenko.

“I have united the opposition,” Tymoshenko announced on television on February 5. She said that the relevant agreement had been signed with the NU.

Details of the accord emerged on February 6, the first day of parliament’s work after winter vacations. The document, signed by Tymoshenko and NU parliamentary faction leader Vyacheslav Kyrylenko, proclaims, “Our joint opposition efforts will help to eradicate the criminal-oligarchic government as soon as possible and revive Ukraine’s democratic and European development.”

In order to achieve this, the opposition has proposed to jointly draft a new constitution, disband parliament, and call new parliamentary elections. A new constitution, the newly re-unified opposition believes, should put an end to the redistribution of powers in the state in favor of parliament and the Cabinet, which was started by the constitutional reform of 2004-2006.

President Viktor Yushchenko is institutionally weaker than his predecessor, Leonid Kuchma, having comparatively few levers of influence on the Cabinet of Ministers. “The role of parliament and the government is very strong at the moment,” Tymoshenko told television reporters on February 4. “Dictatorship from the presidential office has effectively been transferred to the Cabinet office.”

Tymoshenko makes no secret of her presidential ambitions. She wants to approach the presidential campaign of 2009 with a different constitution, one that would make the president stronger again.

Yushchenko is as unhappy with constitutional reform as Tymoshenko, so it is logical that the two should unite their efforts in order to reverse constitutional reform.

Yushchenko has welcomed the news. Speaking in Munich on February 9, he said that the two blocs’ reunification had been prompted by the growing strength of the executive, which is dominated by the Party of Regions (PRU). “This is a position that I respect,” he said.

The People’s Movement of Ukraine (Rukh), which is one of the biggest components of Our Ukraine, is also positive about the unification of efforts with Tymoshenko, Rukh leader and former foreign minister Borys Tarasyuk announced on February 6.

Not everybody in Our Ukraine is as positive about the agreement with Tymoshenko as Yushchenko or Tarasyuk. Many NU members still hold Tymoshenko responsible for the break-up of the first Orange government in September 2005.

Her recent deal with the PRU, when the Tymoshenko bloc helped the PRU override Yushchenko’s veto on the controversial law on the Cabinet, has not made her more popular among NU members, either (see EDM, January 17).

Those wary of a union of Tymoshenko reportedly include such influential NU parliamentarians as the leader of the Union of Industrialists and Entrepreneurs Anatoly Kinakh; the former deputy head of Yushchenko’s office Anatoly Matvienko; former justice minister Serhy Holovaty; and Yuriy Yekhanurov, who replaced Tymoshenko as prime minister in 2005.

One of the opponents of the reunification with Tymoshenko, people’s deputy Pavlo Zhebrivsky, said on February 6 that the NU caucus did not authorize Kyrylenko to sign the accord with Tymoshenko. Yekhanurov said on the following day, perhaps tongue-in-cheek, that Tymoshenko’s party should rather unite with the United Social Democrats, who were close to former president Kuchma. Their ideologies are similar, according to Yekhanurov.

NU and Tymoshenko have apparently not been discouraged by the skepticism expressed by several senior Our Ukraine members. On February 9, Tymoshenko and NU signed an accord calling on NU and Tymoshenko bloc members at the local councils to closely cooperate.

For NU, the document was signed by Viktor Baloha, who formally chairs Yushchenko’s People’s Union-Our Ukraine party and is the head of the presidential secretariat.

If the accords are not stillborn, a combined opposition consisting of Our Ukraine and Tymoshenko’s people will control 204 seats in the Ukrainian parliament, 22 short of a majority.

This number is enough to, for example, put on the agenda a no-confidence motion against the parliamentary speaker. From February 5, NU started collecting signatures to dismiss Speaker Oleksandr Moroz.

NU believes that Moroz signed the new law on the Cabinet of Ministers illegally (see EDM, February 9). It is the president who signs laws, thereby putting them into force, according to the constitution; the speaker may do so only in exceptional circumstances.

Tymoshenko on several earlier occasions spoke in favor of replacing Moroz in the post of speaker. A clearly articulated commons position on Moroz may become a litmus test for the unity of NU and the Tymoshenko bloc.

Source: Eurasia Daily Monitor

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Tuesday, February 13, 2007

'I Did It On Milk, Cheese And Potatoes'

STARIY YARYCHIV, Ukraine -- Hryhory Nestor, at 115 presumed to be the oldest living man, says life was best when the Austro-Hungarian empire ran things in his village in western Ukraine.

Hryhory Nestor, at 115 presumed to be the oldest living man, sits outside his house in the village of Stariy Yarychiv, in western Ukraine

The times when things got worse, first under Poland then under the dreaded Russians, are all but forgotten. All he wants now is to go on living until his 116th birthday next month.

Nestor, diminutive and sporting a large, grey moustache, now needs a cane to move about the house and his tidy village. He grins as he cleans a large bucket of potatoes in the two-storey home where he lives with his late sister's grand-daughter, Oksana Savchuk.

He needs encouragement - in the form of questions repeatedly shouted into his ear - to recount details of what village life was like in the early 20th century.

"Things were best under Austria. You could go wherever you wanted, live where you wanted. And there was work for everyone," says Nestor, dressed in a thick denim jacket.

"When the Poles took over, there were Polish beggars everywhere. And then there was the front and soldiers would come and take everything away."

Western Ukraine was part of Austria-Hungary until the empire was dismantled in 1918 when it reverted to the newly re-established Polish state until the Kremlin seized it in 1939 as part of the Nazi-Soviet carve-up of eastern Europe.

Nestor has no trouble recalling the onset of Soviet rule in his village 30km east of Lviv, the heartland of Ukrainian national sentiment.

"Those Russians promised us all sorts of things - tractors, combines, cars when they were setting up their kolkhoz (collective farm)," he said.

And with a wry laugh, he sums up the collectivisation in which millions of Ukrainians perished: "They told us the kolkhoz was not obligatory. But you had to do it."

With no prodding, he bursts into a song of the time honouring insurgents who died resisting the Bolsheviks in the confused aftermath of the 1917 revolution.

Nestor's passport, based on Austrian documents, says he was born on March 15, 1891 - nearly two years earlier than Yone Minagawa, the Japanese woman who celebrated her 114th birthday last month and was said to be the oldest living person.

He attributes his longevity to healthy living and jokes about the fact that he never married.

"I liked my freedom. I would spend my time with one girl and then another. And then I would go off somewhere with the guys," he said.

"I always stayed in the fresh air and went barefoot everywhere. I slept out of doors in the summer. And I would drink milk and eat cheese and potatoes."

But 15 years after the collapse of Soviet rule, rural areas of independent Ukraine remain in the grip of poverty. Many of Stariy Yarychiv's residents have solved their problems by leaving for jobs in Poland or Italy.

Savchuk has capitalised on the situation to earn a good living. Her husband, a notary, provides vital documents for residents seeking foreign residence and work permits.

She displays photographs sent by her mother, Nestor's sister, from the United States, where she lived for a time only to "foolishly" return home before Soviet rule became entrenched.

Savchuk, 40, says Nestor's documents almost certainly reflects his true age as his Soviet-era passport was issued by the NKVD secret police "and they rarely made mistakes".

Nestor remained unmarried, she said, because of the twin disadvantages of being short and penniless.

The family in wartime ate cattle feed, raw cabbage and grass.

"No one wants a husband who lives in poverty. I think he lived so long because of the will of God," she said. "A man can have a big house and be awash with money but if he does not have God in his heart he won't live long."

And he is now focused on his next birthday.

"He says may God help me live until my next birthday on March 15," Savchuk said. "But every day he says he really does not know what will happen before the evening."

Source: Independent Online

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Ukraine Secret Police Bust Drug Ring, Net Heroin Worth $15 Million Dollars

KIEV, Ukraine -- Ukrainian secret police, acting on tips from foreign intelligence agencies, have cracked a narcotics supply network and confiscated $15 million dollars worth of heroin, the Interfax news agency reported Monday.


Agents from the Ukrainian spy agency, SBU [former KGB], arrested a Ukranian and a Turkish national and took in 125 kilograms of heroin in raids carried out in the southern Kherson region.

A further 12 suspected members of the network were being questioned or "actively being tracked," SBU spokesman Valentin Nalivaichenko said.

The SBU used data provided by government intelligence agencies in Germany, Turkey and the United States to track the activities of the drug-running ring during a three-month investigation.

Law enforcers said they moved in after traffickers dispatched a microbus loaded with heroin for delivery to a foreign customer.

The investigation also culminated in the discovery of a laboratory used by alleged ring members to manufacture heroine from morphine believed to have been imported from Afghanistan, police spokesman Anatoly Pokhilko said.

The largest-ever Ukrainian interception of trafficked heroin - 203 kilograms worth at least 20 million dollars - took place in 2003, when customs agents in the sea port Odessa opened a shipping container and found the narcotics hidden under food packages.

Ukraine has in recent years increased in popularity as a transit corridor for drug traffickers moving supplies from Central Asia to European markets.

The country's practically open border with Russia and its poorly patrolled borders with European Union member states, Poland and Hungary, is seen as a contributing factor.

Source: dpa German Press Agency

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Monday, February 12, 2007

Ukraine Ex-FM Slams Official's Blacklisting As Kremlin Pressure

KIEV, Ukraine -- A former Ukrainian foreign minister said Monday that Russia's purported decision to blacklist Volodymyr Ohryzko is an attempt to foil his confirmation by parliament as the new foreign minister.

Ukraine's Ex-Foreign Minister Borys Tarasyuk

A Russian media outlet reported that Ohryzko, Ukraine's acting foreign minister, could be banned from entering Russia.

"When an official upholds the positions of his state in relations with the Russian Federation, that may not serve as grounds for declaring him persona non grata," Borys Tarasyuk said.

He also said the move be seen as pressure on the Ukrainian parliament when it votes on Ohryzko's candidacy as foreign minister.

Russia and Ukraine have been engaged in a tit-for-tat diplomatic row.

Russian authorities earlier turned away Petro Poroshenko, a member of the Our Ukraine party, who had traveled to St. Petersburg on a private visit February 3.

The pro-Western party stood behind the "orange revolution" of 2004, when the Kremlin-backed presidential candidate was defeated.

An outspoken television journalist, Mikhail Leontyev, 47, was banned by the Ukrainian National Security Service from entering the ex-Soviet nation in July.

The Ukrainian Security Service said Leontyev, known for making acerbic remarks about Ukraine on a short TV program after the main news on Channel One, was barred for violating regulations of foreigners' stay in Ukraine.

Other victims of the Ukrainian ban included the nationalist leader of Russia's Liberal Democratic Party, Vladimir Zhirinovsky, and MP Konstantin Zatulin.

Relations between Russia and Ukraine became tense following the "orange revolution," which brought Western-leaning President Viktor Yushchenko to power.

The two nations also became embroiled in an energy dispute at the beginning of last year after Moscow, which supported Yushchenko's rival Viktor Yanukovych in the 2004 presidential race, raised gas prices for its former ally.

However, diplomatic ties have somewhat thawed since Yanukovych's appointment as prime minister in August of last year. The premier has steadily consolidated his authority, with parliament sacking president-appointed ministers and passing a Cabinet law to slash the president's powers.

Source: Moldova Org

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Ukraine To Buy Dioxin In Russia To Check Yushchenko’s Poison

KIEV, Ukraine -- Ukraine intends to buy dioxin in Russia, the United States, Britain and Canada for an expert examination aimed at finding out what substance had been actually used to poison President Viktor Yushchenko in 2004.

Viktor Yushchenko before (L) and after (R) dioxin poisoning

Only after this expert examination, the investigators will be able to trace orderers and executors of the crime, Kommersant-Ukraine reported with reference to Ukrainian prosecutors.

The Lev Medved Institute of Ecological Hygiene, Kiev, will first buy and then examine the substance to identify dioxin.

Past week, Ukrainian prosecutors questioned masseur Yury Desyatsky. A day before poisoning, Desyatsky had been called to then presidential candidate Viktor Yushchenko to relieve him of the strong pain in the back.

The masseur noticed nothing strange during the visit. “He said he massaged as usual without paying attention to anything else,” said a source with the prosecutors.

According to official story, Yushchenko was poisoned by dioxin in the fall of 2004, when he was running for Ukrainian presidency.

His mates say Yushchenko was probably poisoned when having supper with Security Service Chief Igor Smeshko in the cottage of his deputy Vladimir Satsyuk.

Source: Kommersant

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Ukraine Assigns $1 Mln To Increase Population’s Awareness Of NATO

KIEV, Ukraine -- Ukraine allocated one million U.S. dollars in this year’s budget to raise the population’s awareness of NATO, the presidential press service said on Sunday in a follow-up of Ukrainian President Viktor Yushchenko’s visit to Germany.

NATO Secretary General Jaap de Hoop Scheffer

While in Germany, the Ukrainian leader met with NATO Secretary General Jaap de Hoop Scheffer.

Yushchenko thanked NATO for the assistance in the elimination of redundant ammunition and light armament.

“I hope for your assistance to broader NATO financial aid in the disposal of ammunition and light weapons in Ukraine,” Yushchenko said.

He repeated his invitation to the NATO Secretary General to visit Ukraine this July.

In Munich, Yushchenko also met with U.S. Defence Secretary Robert Gates to discuss the topical issues of bilateral relations.

Ukraine is very interested in enhancing special training programs for servicemen, civilian personnel and specialists at educational establishments of NATO member-countries, including those in the U.S.

Source: ITAR-Tass

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Sunday, February 11, 2007

Sweden's Swedbank To Buy TAS-Kommerzbank In Ukraine

STOCKHOLM, Sweden -- Stockholm-based Swedbank AB said it has agreed to buy TAS-Kommerzbank in Ukraine for $735 million in a move to expand its operations in Eastern Europe.

Swedbank's Chairman Carl Eric Stalberg

The payment for TAS includes an equity contribution of $50 million at the closing of the deal, Swedbank said.

"TAS is yet another step to enhance growth for Swedbank following our success in the Baltic countries. Ukraine is an important tiger economy with impressive growth rate and positive development," Swedbank's Chairman Carl Eric Stalberg said in a statement.

Kyiv-based TAS has 170 branches and 2,300 staff. At the end of 2006 it recorded a profit of $10 million and total assets of $1.14 billion.

"We invest in a bank geared for rapid growth with an experienced management commitment to our agreed strategy," Swedbank's Chief Executive Jan Liden said.

Swedbank, a market leader in the Baltic countries through its Hansabank unit, said it will use its Hansabank experience to drive the expansion in Ukraine.

The deal is subject to approval from relevant authorities and is expected to be completed in the second half of this year.

Source: Kyiv Post

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Ukraine Pledges Further Involvement In NATO Peacekeeping Operations

MUNICH, Germany -- Ukraine will continue playing an active role in NATO-led peacekeeping operations, Ukrainian President Viktor Yushchenko told the alliance's Secretary General Jaap de Hoop Scheffer at a meeting in Munich, the Ukrainian leader's press service reported on Saturday.

Ukraine's President Viktor Yushchenko (L) shakes hands with NATO Secretary-General Jaap de Hoop Scheffer at the Bayerischer Hof hotel during the 43rd Conference on Security Policy in Munich February 10, 2007

Late last year Ukraine finalized all legal formalities of its participation in NATO's Active Endeavor anti-terrorist operation, Yushchenko said.

Integration with Euro-Atlantic organizations is Ukraine's strategic objective, the president said.

Formulating a consolidated position of all of Ukraine's leading political forces regarding the pace at which relations with NATO should develop in the future is high on the country's agenda, he added.

Yushchenko expressed his gratitude to de Hoop Scheffer for NATO's assistance in disposing of Ukraine's excessive stockpiles of ammunition, light and small weapons, as well as mobile air defense missile systems.

The aid has been provided by the NATO/Partnership for Peace Trust Fund.

"I hope for your assistance in expanding the aforementioned aid by NATO and further efforts to dispose of ammunition and light weapons," the president said.

Yushchenko said that the Ukrainian government and he will continue giving special attention to impartial and politics-free awareness raising campaigns addressing NATO's activities and Ukraine's integration with Euro-Atlantic organizations.

The 2007 budget earmarks five million hryvni for the efforts, he added.

Ukraine also appreciates NATO's readiness to contribute to these awareness raising campaigns, he said. "I am convinced that our joint efforts will help debunk all old myths and stereotypes regarding NATO in Ukraine," he said.

Yushchenko confirmed his invitation for the NATO secretary general to visit Ukraine in July.

Source: Interfax

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Saturday, February 10, 2007

UMC To Adopt Parent Company Brand

KIEV, Ukraine -- Ukraine’s second largest provider of mobile phone services, Ukrainian Mobile Communications (UMC), is adopting the brand of its Russian parent company, Mobile Telesystems (MTS), rounding off a string of similar re-branding campaigns by MTS in other CIS countries where it has subsidiaries.

Mobile Telesystems (MTS) website

The re-branding plans are being unleashed amid growing competition and sharp growth in Ukraine’s mobile phone service business.

UMC, Ukraine’s first mobile services provider, which MTS took control of in 2002, will undergo re-branding in the second quarter of this year, according to Irina Osadchaya, head of media relations at MTS.

Osadchaya wouldn’t disclose whether the UMC logo would change or how much the company planned to spend on the re-branding.

The overall cost of MTS’s re-branding in Russia was about $4 million, she said.

“In Russia we went through the complete classical way of business re-branding, starting from a change of the logo and visual style to modifying our service channels (call centers and stores) and launching new attractive tariffs.”

MTS has re-branded its subsidiaries in Turkmenistan, Belarus and Uzbekistan, and now it is Ukraine’s turn.

“UMC has changed and we need to change not only the logotype, but the philosophy of the company.”

In addition to re-branding UMC, MTS will introduce new brands, such as ECOTEL for “value-conscious users.”

UMC, which currently offers UMC, UMC Business, Jeans and SIM-SIM, reported $125 million in profit for the third quarter of 2006.

MTS is the largest mobile operator in Eastern Europe, boasting a total of more than 72 million subscribers.

A Feb. 2 report by Bloomberg quoted MTS CEO Leonid Melamed as saying, “We have to take up the challenge of globalization of the telecommunications market and remain competitive. We are going to study the possibility of non-organic growth, primarily in the CIS.”

According to the agency, Melamed said MTS was actively looking to either buy assets or start new operations in all countries of the Commonwealth of Independent States.

Irina Astafeva, an analyst for Moscow-based telecommunications consultancy J’son & Partners, said there are several reasons why MTS would want to re-brand UMC.

First, “there is no sense in maintaining different brands in different countries that are so geographically and culturally close,” she said.

Second, “the UMC brand wasn’t very innovative in the first place. The market is growing and thus something new is required.”

And last, according to Astafeva, a new brand gives a company a chance to reposition itself and thus expand its subscriber base in services such as roaming.

Astafeva said that compared with Russia, MTS’s re-branding in Ukraine “would definitely be cheaper: you don’t have to re-invent the wheel.”

UMC’s main competitor in Ukraine, market leader Kyivstar, with more than 22 million subscribers, underwent similar changes last spring, including a new logotype, a revamped company philosophy and repositioning, according to Kyivstar spokesperson Zhanna Revnova.

“The market has matured. It has changed over the last several years, and we needed to change as well,” she said.

Revnova said Kyivstar had been planning its “restyling” long in advance and that the process is continuing.

Sharp growth

The re-branding plans of Kyivstar and UMC follow the sharp advance of smaller competitors with flashy new brands onto Ukraine’s fast-growing mobile telephony business.

Russia’s Vimpelcom last year launched its Beeline brand in Ukraine; Astelit, co-owned by Turkey’s Turkcell and Ukrainian tycoon Rinat Akhmetov, has for several years pushed its Life:) brand.

While relatively small, the subscriber bases of both companies have risen sharply as of late, posing a challenge to market leaders UMC and Kyivstar.

Kyivstar is 43.5 percent owned by Russia’s Alfa Group and 56.6 percent owned by Norway’s Telenor. Both are the principle shareholders in Vimpelcom, MTS’s main rival in Russia.

According to Kyiv-based investment bank Dragon Capital, telecom revenues in Ukraine grew 23 percent year-on-year in 2006. Traditionally, the fastest growing segment is mobile communications.

However, the 2006 growth rate in this sector was 38 percent in 2006, down from 53 percent year-on-year in 2005 and 147 percent in 2004.

Source: Kyiv Post

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Support For Yushchenko Below 30% In Ukraine

KIEV, Ukraine -- Few Ukrainian adults express satisfaction with their president, according to a poll by the Public Opinion Foundation. 27.9 per cent of respondents approve of Viktor Yushchenko’s performance.


Viktor Yushchenko praying

Yushchenko, candidate for the People’s Union-Our Ukraine (NS-NU), won the December 2004 presidential election with 51.99 per cent of the vote in an unprecedented third round against Viktor Yanukovych.

In March 2006, Ukrainian voters renewed the Supreme Council. In July, the "anti-crisis" coalition—which includes the Party of Regions (PR), the Socialist Party of Ukraine (SPU) and the Communist Party of Ukraine (KPU)—was formally announced.

In August, PR leader Yanukovych was confirmed as prime minister.

In a Feb. 9 interview with a German television channel, Yushchenko expressed certainty about Ukraine’s eventual accession into the European Union (EU), declaring, "I believe it will (happen). I am sure it will."

Polling Data

Do you approve or disapprove of Viktor Yushchenko’s performance as president?

Approve - 27.9%

Disapprove - 61.3%

Not sure - 11.9%

Public Opinion Foundation interviews to 2,000 Ukrainian adults, conducted from Jan. 18 to Jan. 20, 2007. Margin of error is 2.2 per cent.

Source: Angus Reid Global Monitor

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Moscow Says Barring Of Ukrainian Lawmaker Was Reciprocal

MOSCOW, Russia -- Russia's refusal to admit a member of Ukraine's pro-presidential faction into the country last week was a response to Kiev's bans on certain Russian politicians, the Foreign Ministry said.


Petro Poroshenko

Authorities turned away Petro Poroshenko, a member of the Our Ukraine party, who had traveled to St. Petersburg on a private visit February 3.

The pro-Western party stood behind the "orange revolution" of 2004 when the Kremlin-backed presidential candidate was defeated.

The reason for Moscow's move "is the current practice, introduced by the Ukrainian side in relation to Russian citizens who have been banned from entering Ukraine," the Russian Foreign Ministry's press service said.

The ministry also cited a blacklist of Russian politicians drawn up by Ukrainian authorities.

"Moscow has repeatedly made it clear that it considers Ukraine's actions to be unfriendly and against the good-neighborly spirit of Russian-Ukrainian relations," the press service said, adding that Moscow had proposed that Kiev abandon its unconstructive policy.

An outspoken television journalist, Mikhail Leontyev, 47, was banned by the Ukrainian National Security Service from entering the ex-Soviet nation in July.

The Ukrainian Security Service said Leontyev, known for making acerbic remarks about Ukraine on a short TV program after the main news on Channel One, was barred for violating regulations of foreigners' stay in Ukraine.

Other victims of the Ukrainian ban included the nationalist leader of Russia's Liberal Democratic Party, Vladimir Zhirinovsky, and MP Konstantin Zatulin.

Relations between Russia and Ukraine became tense after the "orange revolution", which brought Western-leaning President Viktor Yushchenko to power.

The two nations also became embroiled in an energy dispute at the beginning of last year after Moscow, which supported Yushchenko's rival Viktor Yanukovych in the 2004 presidential race, raised gas prices for its former ally.

However, diplomatic ties have somewhat thawed since Yanukovych's appointment as prime minister in August last year.

The pro-Moscow premier has steadily consolidated his authority, with parliament sacking president-appointed ministers and passing a Cabinet law to slash the president's powers.

Source: RIA Novosti

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Friday, February 09, 2007

Yushchenko, Yanukovych Lock Horns Over Cabinet Law

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko and the ruling coalition in Kiev have failed to find a compromise over the “Law on the Cabinet of Ministers.”


Yushchenko (L) and Yanukovych (R)

The law is meant to complement the constitution, more clearly defining the remits of the president, the cabinet, and parliament; at the same time, it cuts Yushchenko’s authority.

Yushchenko has vetoed the law. Prime Minister Viktor Yanukovych and the coalition argued that he had violated the constitution by vetoing the same law twice.

Yushchenko insisted that he had acted within his rights. The law came into effect despite Yushchenko’s protests, as it was published in the official newspapers signed by parliamentary speaker Oleksandr Moroz, an ally of Yanukovych.

It is now up to the Constitutional Court to decide who is wrong.

Yushchenko argued that the law, originally passed last December, was out of tune with the constitution.

He particularly objected to provisions stating that parliament appoints the prime minister and the ministers of foreign affairs and interior if the president fails to do so in a timely manner; that the president has no power to veto the Cabinet’s action plans; that deputy ministers are be appointed by the Cabinet; that ministers may not appeal their dismissal in courts; and that the Security and Defense Council may not influence the Cabinet’s decisions.

Yushchenko vetoed the law for the first time on January 11, but on January 12 parliament overrode the veto by more than 300 votes out of the 450-seat chamber.

Yushchenko promised that his legal advisors would find a way to outplay parliament, and he kept his word.

On January 19, Yushchenko returned the law to parliament again. He said that this was not a second veto, which would have been a violation of the constitution, but a veto of a different law.

It turned out that the texts he vetoed on January 11 and 19 differed on one point, where an original paragraph from the earlier version of the law was incorporated into the text of the previous paragraph in the newer version.

This, according to Yushchenko, means that he vetoed a different law.

Moroz and Yanukovych flatly rejected Yushchenko’s argument, saying that the difference was a mere printing error, and the law would come into force without Yushchenko’s signature.

Yanukovych, who is backed by the ruling coalition in parliament, suggested that parliament should later amend the law, taking account of some of Yushchenko’s objections.

Yushchenko rejected the offer and warned Yanukovych and Moroz against publishing the law in the official press, which, according to the Ukrainian constitution, would mean it is coming into force.

Yushchenko’s warning was ignored. The text of the law was published in the newspaper of the cabinet, Uryadovy Kuryer, and of parliament, Holos Ukrainy, on February 2.

This was the first case in Ukrainian history when a law was signed not by the president, but by Speaker Moroz.

The latter argued that he was legally authorized to do that, as Yushchenko failed to sign the law within 10 days, as required by Ukrainian law.

Yushchenko’s Our Ukraine parliamentary caucus said that the publication of the law meant “complete usurpation of power by the Yanukovych cabinet and the ruling coalition.”

Yushchenko met Moroz and Yanukovych in his office on February 5, probably in an effort to negotiate a way out of the situation. The talks failed.

The same evening, Yushchenko referred the law to the Constitutional Court. “The Cabinet cannot work or live with a fake passport,” he said. ”I am absolutely confident that the constitution does not empower the Speaker to sign laws returned by the president to parliament for revision.”

It is now up to the court to decide the fate of the law. It may take the court several months to deliver a verdict, and it is hard to predict the outcome.

If Yushchenko takes the upper hand, and the law is returned to parliament, his veto may not be overridden again, depending on Yulia Tymoshenko’s position.

On January 12, parliament overrode Yushchenko’s veto thanks to the votes of Tymoshenko’s faction. This was reportedly part of a deal between her and the ruling coalition in exchange for the coalition’s support for the laws on the opposition and on the binding mandate.

The law on the binding mandate, allowing Tymoshenko to secure her grip over local councils, has since been passed, but the fate of the opposition law is still not clear.

On February 5, Tymoshenko and the leader of the Our Ukraine faction in parliament, Vyacheslav Kyrylenko, signed a statement proclaiming a unified opposition.

They declared that they aim to reverse constitutional reforms that decreased the president’s powers in favor of the Cabinet and parliament, and to hold an early parliamentary election to get rid of the pro-Yanukovych majority in parliament.

If Tymoshenko is serious about a union with Yushchenko’s party, there is a slim chance that the coalition will secure her support for the Cabinet law for a second time.

Source: Eurasia Daily Monitor

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Tolerance Reduces Need For Russian Language Law In Ukraine

KIEV, Ukraine -- Although Ukraine’s Party of Regions introduced a new draft language law to parliament last fall, interest in the bill will decline following the unexpected death of key party ideologue Yevhen Kushnariov last month.


The Kremlin is pushing the Russian language on Ukraine

Elevating Russian to an official or second state language requires a change to the 1996 constitution, and the ruling Anti-Crisis coalition is short by 60 votes.

The Party of Regions and Communists are alone in their support for elevating the status of the Russian language. A large proportion of the centrist camp that backed the Leonid Kuchma regime continues to support the 1989 law and 1996 constitution that make Ukrainian the sole state language but provides for official tolerance of local language diversity.

National Security Council secretary Vitaliy Hayduk, head of the Industrial Union of Donbas, a rival to Renat Akhmetov’s Systems Capital Management, which backs the Party of Regions, is opposed to making Russian a second state language. “We should proceed very cautiously, without going to extremes. We should not sensationalize the situation, either,” he warned.

The language issue has had little saliency, except during the 1994 and 2004 presidential election campaigns.

The Razumkov Center warned on the eve of the 2004 elections that the language issue in of itself would be unlikely to head to “serious social conflict,” but they added, “politicization of this question could lead to negative consequences.”

Party of Regions leader Viktor Yanukovych and his Russian political advisors politicized the issue in the 2004 elections.

In a 2001 Razmukov Center survey only 7% of respondents believed that the Russian language was a critical issue, placing it 24th out of 30 issues. In January 2002, only 1.6% said that the inclusion of language in a party’s program would influence whether or not they would vote for it.

A 2006 survey found similar results. Of the ten most acute problems facing Ukraine, the Russian language was mentioned by only 8%, a figure due primarily to the 25% interest level in the Crimea and Donbas.

North and east of these two regions only between 2.5% and 4% saw it is as an issue. Two-thirds of the 8% who consider the Russian language an issue reside in the Donbas and Crimea, two areas that are bastions of support for the Party of Regions and Communists and ironically where Russian is not in any way challenged, let alone threatened.

The Razumkov Center and other think tanks found that Ukrainian- and Russian-speakers each number about 40%, the other 20% percent use both languages.

The latter could be the crucial swing vote in Kyiv and central Ukraine. The language issue has therefore never generated more than a third in favor of elevating Russian to a second state language.

One reason why the language issue is not a priority for most Ukrainians is that tolerance of language diversity is different from the election rhetoric of politicians intent on capitalizing on the language issue.

The Russian language dominates in Ukraine’s print and Internet media, while television has a greater degree of Ukrainian-language content.

The top three Internet sites in Ukraine are Ukrayinska Pravda, Obozrevatel, and Korrespondent, all receiving between 43,000 and 48,000 hits per day.

Of these, only the first appears in both Ukrainian and Russian while the latter two are solely in Russian. Language choice does not appear to be linked to political allegiance, as the first two are sympathetic to the Orange camp, while the latter is published by an American who publishes the Kyiv Post.

Korrespondent magazine, the print version of the web site, is a Ukrainian attempt to emulate Western newsweeklies, such as Time, and is aimed at New Ukrainians.

A new Russian-language glossy news magazine, Fokus, is edited by a well-known former journalist from the Ukrainian-language 1+1 channel and a 2006 parliamentary candidate of the Reforms and Order (Pora) bloc.

It is no coincidence that these two magazines are in Russian, nor that all of Ukraine’s glossy journals are aimed at New Ukrainians. These include an entire range of Western women’s and lifestyle magazines reprinted in Russian.

Indeed, the only woman’s magazine in Ukrainian is the flimsy, Soviet-era relic Zhinka (Woman).

Use of the Russian language is dominant in the 18-49 age group, while Ukrainian is stronger among the 50-59 population. Yet, New Ukrainians and young people, whose source of print information is in Russian, backed the Orange Revolution.

Young people do not support elevating Russian to a second state language, perhaps because they tend to back Orange parties, such as Our Ukraine, Yulia Tymoshenko and the Socialists whose voters support Ukrainian as the sole state language.

All of Ukraine’s leading print newspapers are in Russian (Fakty, linked to Viktor Pinchuk, Segodnya (Party of Regions), Kievski Vedomosti, 2000, (Social Democratic Party-United) and were staunch supporters of the Kuchma regime.

The Orange camp also has invested as much in Russian publications as in Ukrainian ones, such as Kyivskiy Telegraf (Andriy Derkach, Socialists).

Our Ukraine has a greater number of Russian- than Ukrainian-language publications: Pravda Ukrainy (Petro Poroshenko, Our Ukraine), Izvestiya v Ukrainy (Oleksandr Tretyakov, Our Ukraine), Delovaya Stolitsa, and Vlast Deneg.

Two newspapers sympathetic to the Tymoshenko bloc are also in Russian: Gazeta Po-Kievski and Vecherny Vesti and a third, Svoboda, is published in both languages.

Ukrainian-language newspapers with large circulations are only made available thanks to the state, such as parliament’s Holos Ukrainy. Ukrainian-language publications linked to Our Ukraine include only Ukrayina Moloda and Bez Tsenzury, which have small circulations compared to the Russian-language media. The Socialists still have close ties to the large circulation Silski Visti.

The language ambivalence reflected in these attitudes to media language mirrors the support for the legal status quo on languages and tolerance of diversity. Parliament is unlikely to pass the latest draft language law.

Source: Eurasia Daily Monitor

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Thursday, February 08, 2007

German Chancellor Endorses Ukraine's Integration Hopes

BERLIN, Germany -- Chancellor Angela Merkel of Germany has told Ukrainian President Viktor Yushchenko that she supports Ukraine's aspirations for closer integration with Europe.


German Chancellor Angela Merkel, left, and Ukraine's President Viktor Yushchenko, right, shake hands after their talks in the Berlin Chancellery on Thursday

During a press conference following their talks in Berlin today, Merkel, whose country holds the EU's rotating Presidency, said she discussed with Yushchenko the first steps toward such integration, including a new agreement on enhanced cooperation.

Yushchenko has made EU membership a priority for Ukraine, but the bloc has so far suggested only a strengthening of partnership.

In a reference to a cutoff in gas supplies last year following a dispute between Russia and Ukraine, Yushchenko said his country is "conscious" of the responsibility to ensure a steady flow of energy to Western Europe.

"Ukraine understands its important role in the formation of Europe's energy-security policy and is conscious of its responsibility," he said. "I know that last year's story perhaps wasn't always presented [in the media] with complete objectivity, but I want to stress that Ukraine fully complies with its obligations under the Energy Charter."

On February 10, Yushchenko is to attend the Conference on Security Policy in Munich. He is expected to meet with NATO Secretary-General Jaap de Hoop Scheffer and U.S. Secretary of Defense Robert Gates.

Source: Radio Free Europe

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McDonald’s Continues Expanding Ukraine Chain

KIEV, Ukraine -- International fast-food giant McDonald’s has announced plans to expand its stronghold on the Ukrainian market, adding four new restaurants to its 57-chain presence in the country.


McDonald's on Kiev's Independence Square

McDonald’s, the first international fast-food chain to have established a strong presence in Ukraine, opened three new restaurants last year. About $7 million will be invested into the four new restaurants.

While McDonald’s restaurants in the United States and many other countries are typically operated as franchises owned by private investors, the fast-food world leader has invested its own money to conquer Ukraine.

Its advance into the country in the early 1990s spread the fast-food culture into Ukraine. Its arrival catalyzed the birth of a handful of Ukrainian owned fast-food chains such as Shvydko, which offers Ukrainian dishes as well as American-styled French fries.

Mykhaylo Shuranov, a spokesperson at McDonald’s Ukraine, said new restaurants are planed this year for Kyiv, Kryvy Rih, Odessa and Kharkiv. Funds will also be invested into revamping existing restaurants.

Undisputed leader

McDonald, the leading world fast food chain, currently has a presence in 16 Ukrainian cities. Twenty-two restaurants are strategically located in Ukraine’s bustling capital city, Kyiv.

Other renowned fast-food operators such as Kentucky-based Yum! Inc., owner of the Kentucky Fried Chicken, Pizza Hut and Taco Bell chains, procrastinated in entering Ukraine, preferring to focus on bigger markets such as Asia.

As a result, McDonald’s, which has the muscle to conquer all prospective markets simultaneously, has gobbled up control over the Ukrainian fast-food market.

“I don’t think international fast-food chains would be able to compete with McDonald’s [on the Ukrainian market] any time soon,” said Olga Nasonova, owner of Kyiv-based Restaurant Consulting.

We are more likely to see foreign competitors inching in slowly, “establishing several representative restaurants rather than a big network,” she added.

Shuranov doesn’t expect any serious competition either, adding that McDonald’s is the leader on the market by a long shot.

Yet rumors abound that other fast-food chains are eager to enter the market soon to challenge the position of McDonalds. Insiders have said Rosinter, a Russian firm that operates Rostiks, a fast-food chain in Ukraine and Russia mirroring Kentucky Fried Chicken, has inked an agreement with Yum! Inc. that will soon bring Ukraine its first KFC brand restaurants.

Growing competition is also sprouting up from locally-founded fast-food chains such as Mister Snack, which is financially backed by American and European investors.

The first Mister Snack outlet opened in the center of Kyiv in 1997. At present, Mister Snack has 12 restaurants in the capital. Taras Ostapenko, the company’s general director, said Mister Snack is interested in developing its business and is planning to have 20 places in Kyiv by 2009.

Upstream advantage

McDonald’s, however, is not banking on expansion alone. Suppliers for the fast food giant have in recent years launched production on Ukrainian turf, cutting down on costly imports of meat patties and buns.

United States-based OSI, the major meat supplier for McDonald’s internationally, last year launched cattle-raising operations in Kyiv Region intended to provide McDonald’s with its first meat-producing farm for its operation in Ukraine.

The start-up of the Dulitske cattle farm follows an earlier move by OSI to make inroads in the Ukrainian meat production market.

The company began grinding out beef patties for McDonald’s in May 2003 at Vinnytsya Region’s Kozyatyn Poultry Plant, its first Ukrainian meat-processing line, via its Ukrainian subsidiary Eska Food Solutions.

Eska Food Solutions now supplies McDonald’s with all of its beef needs in Ukraine. Plans envision more domestic production of food products for McDonald’s being established in the near future.

Source: Kyiv Post

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Ukraine Bars Russian-Proposed Alienation Of Natural Gas Transport System

KIEV, Ukraine -- Russian President Vladimir Putin’s February 1 call to “unite” Ukraine’ gas transit system with that of Russia has strongly backfired.

Vladimir Putin

In Kiev, opposition leader Yulia Tymoshenko initiated and the Verkhovna Rada adopted almost unanimously on February 6 a law banning any form of alienation of Ukraine’s pipelines and other assets of the national company Naftohaz Ukrainy.

Putin had stated in his annual news conference that Ukrainian President Viktor Yushchenko and the government of Prime Minister Viktor Yanukovych favored sharing control of Ukraine’s transit pipelines through a consortium or similar deal with Russia, in return for Ukrainian “access” to oil and gas extraction projects on Russian territory.

Presenting this idea as a Ukrainian proposal, Putin disclosed that it would figure on the agenda of Yushchenko’s upcoming visit to Russia.

Putin omitted to say that one extractive project under consideration for this deal, in Russia’s Astrakhan oblast, has Dmytro Firtash as its main owner.

Firtash fronts as the main shareholder in the purportedly Ukrainian half of Gazprom’s offshoot RosUkrEnergo.

Putin’s apparently calculated bean-spilling proved premature and forced Kyiv’s proponents of this deal on the defensive politically.

The Tymoshenko-initiated bill garnered 430 votes, with none opposed, in the 450-seat Rada.

The law bans any deals that would involve the sale, transfer, merger, joint venture, concession, lease, putting up as collateral, joint, or trust management, mortgaging, and any change in the status of ownership or control of Ukraine’s gas transport system and other Naftohaz assets.

It also stipulates that Naftohaz may not be declared bankrupt. The law would only allow transfer of Naftohaz assets hypothetically to an entity that would be 100% state-owned.

Government members who apparently have been conducting talks on the issue with Russia seek to relativize the new law’s significance.

First Deputy Prime Minister and Finance Minister Mykola Azarov, Deputy Prime Minister responsible for energy Andriy Kluyev, and Fuel and Energy Minister Yuriy Boyko (all from the Party of Regions) cite existing legislation that bars “privatization” and “change of ownership” of Ukraine’s gas transit system.

Thus they seek to portray the new law as redundant.

However, the new law is far more comprehensive and closes all possible avenues for alienating these national Ukrainian assets to Russia.

The government’s pro-Russian elements are clearly aware of the new law’s significance, as could be seen in Azarov’s televised interview in Kiev (in Russian throughout) angrily terming the law “stupid” and its rationale “a lie.”

In two separate interviews Azarov defended the proposed “gas transport consortium” and “joint management” of Ukraine’s pipelines with Russia.

More cautiously and ambiguously, Kluyev told the Rada before the vote that the government has “no plans at this time to turn the gas transport system over to Russia, to the European Union, to Belarus, or to anyone.”

Thanks to Putin’s indiscretion and Tymoshenko’s initiative, however, the political atmosphere made it impossible even for pro-Russian deputies to stop the passage of the law.

Yet ambiguities persist even among some pro-presidential groups and Yushchenko himself.

Following Putin’s statement, which had credited him with what Putin termed this “revolutionary” idea, Yushchenko confined himself to a brief comment calling for a cautious, go-slow approach.

After the parliament’s vote, Anatoliy Kinakh -- chairman of the Rada’s national security and defense committee and leader of the Party of Industrialists and Entrepreneurs, a component of the pro-presidential Our Ukraine -- clearly hinted to the press that he favors “joint management” with Russia of Ukraine’s gas transit system.

Kinakh had taken this position also while serving as Secretary of the National Security and Defense Council during the December 2005-January 2006 gas crisis.

This time around, he additionally suggests inviting unspecified “European countries” as well as Turkmenistan, Kazakhstan, and Azerbaijan to the proposed Russia-Ukraine gas transport consortium.

The law comes none to soon, as bilateral discussions are ongoing about ways and forms of shared Russian-Ukrainian control over Ukraine’s gas transit system.

Putin and Yushchenko expect to meet in March in Russia, and an intergovernmental group is due to work out specific proposals in this regard.

This law gives Ukraine breathing space to interest the European Union (not Germany in its national capacity) to become involved in the modernization of Ukraine’s gas transit system in the EU’s own interest.

Source: Eurasia Daily Monitor

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Wednesday, February 07, 2007

EU, Ukraine Launch Negotiations On Bolstering Ties

KIEV, Ukraine -- The European Union and Ukraine have kicked off negotiations on a new partnership agreement. Kiev expressed disappointment that it does not open the door to EU membership for the former Soviet state.

Ukrainian President Viktor Yushchenko welcomes German Foreign Minister Frank-Walter Steinmeier (L) ahead of talks on cooperation between the ex-Soviet state and the European Union in Kiev

German Foreign Minister Frank-Walter Steinmeier, whose country holds the rotating EU presidency, was joined by representatives from the European Commission and Council for the formal start of negotiations during a one-day visit to Kiev on Tuesday.

Prime Minister Viktor Yanukovich promised to press on with political and economic reforms to foster closer ties with the EU. But he expressed frustration that foreign ministers from the bloc last month had stopped short of promising Ukraine membership one day.

"There was a certain amount of disappointment among citizens of Ukraine," he said at a joint press conference with Steinmeier.

He added that the bloc should remain open to all European states that "respect the rule of law."

Steinmeier assured Yanukovich that the EU considered Ukraine a "unique and important country" in its neighborhood policy, which calls for closer ties with states to the east and south of the bloc.

Contingent on reforms

The two officials failed to announce a timeframe for the negotiations, but Yanukovich said he was aware that the pace of Ukrainian reforms was key.

"We hope that we will be able to negotiate over a new enhanced agreement in a speedy and efficient way," he said.

The EU partnership and cooperation agreement with Ukraine will replace a treaty that was signed in 1998 and is due to expire next year.

It will allow stronger cooperation on security policy, justice issues, gas and oil transit and visa policy as well expanding free trade between Ukraine and the bloc.

The final component is dependent on Ukraine joining the World Trade Organization, which Yanukovich said should happen by mid-2007.

The EU is keen to promote the "Western orientation" of Ukraine, which has been embroiled in a power struggle between pro-Russian and pro-Western forces since its so-called "orange revolution" in 2004.

EU divided over Ukraine joining

But the issue of whether the new pact will include the prospect of eventual EU membership for Ukraine has divided the bloc.

EU foreign ministers papered over the differences in conclusions of a Brussels meeting last month, saying that the bloc remained committed to supporting Ukraine's democracy, stability and prosperity and "wishes to reinforce this commitment through a new enhanced agreement."

They acknowledged Ukraine's "European aspirations" but said that "a new enhanced agreement shall not prejudge any possible future developments in EU-Ukraine relations."

Britain, Hungary, Poland and Sweden support Kiev's ambition to join Europe's rich club. But a number of the 27 current member states -- including Germany, France and Spain -- are fiercely opposed.

Ukrainian President Viktor Yushchenko has pressed for accession talks to start next year, but EU leaders said at the last EU-Ukraine summit, in October, that the country has not undertaken enough reforms to be a contender.

Source: Deutsche Welle

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Orange Blues

KIEV, Ukraine -- Ukraine's democratic Orange Revolution is faltering because of weak leadership at home and increasing pressure from neighboring Russia, two senior Ukrainian opposition figures told our correspondent David R. Sands during a Washington visit.

Oleksandr Turchynov

"We are very concerned that the United States and the European Union truly understand what is happening in Ukraine right now," said Oleksandr Turchynov, parliamentary coordinator for the party of former Prime Minister Yulia Tymoshenko. "We are on a very dangerous path."

Mrs. Tymoshenko, now heading the largest opposition bloc in parliament, and President Viktor Yushchenko were the principal architects of Ukraine's 2004-2005 Orange Revolution.

They led mass street protests that overturned a fraudulent presidential election favoring pro-Russian candidate Viktor Yanukovych and raised hopes that the former Soviet republic had decisively embraced Western-style market and political reforms.

But Mrs. Tymoshenko served just eight tempestuous months as Mr. Yushchenko's prime minister before being dismissed in September 2005, a tenure marked by both policy and personality clashes. After a series of interim leaders, Mr. Yanukovych staged a political comeback to claim the prime minister's post.

Hryhoriy Nemyria, opposition shadow foreign minister in Mrs. Tymoshenko's party, said her government collapsed in 2005 because Mr. Yushchenko failed to back her reform agenda, blocked her Cabinet appointments and undermined her efforts to fight high-level corruption.

He said the issues at stake are far larger than infighting among former Orange Revolution allies for political clout in Kiev.

"Russia has never reconciled itself to the strategic loss it suffered from the Orange Revolution," he said. "If our reforms succeed, if Ukraine ties itself to Euro-Atlantic institutions, then the dreams of the Kremlin and [Russian President Vladimir] Putin to re-create 'Greater Russia' will fail."

Russia has played hardball with Kiev on energy supplies and Mr. Nemyria said he feared the "pressure from the north" will only increase in the run-up to the 2008 Russian presidential vote.

"We want good relations with Moscow, but we don't want to see 'managed counterrevolution' directed at us from the Kremlin," he added.

The two Ukrainian opposition figures were in Washington for last week's National Prayer Breakfast. Mrs. Tymoshenko plans her own trip to Washington to seek support in the coming weeks, they said.

Source: The Washington Times

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Russian Journalist Seeks Political Asylum In Ukraine

KIEV, Ukraine -- A Russian journalist has requested political asylum in Ukraine, he said Tuesday, claiming that authorities in Siberia fabricated a criminal case against him as retribution for his investigations into suspected corruption among regional officials.

Russian journalist Alexander Kosvintsev is seen during an interview with The Associated Press in Kiev, Ukraine, Tuesday, Feb. 6, 2007

Alexander Kosvintsev said he feared for his safety in Russia because of his work, including with a paper he founded in the 1990s in his home region of Kemerovo, in central Siberia.

He told The Associated Press that the subjects of his journalistic probes included the regional governor, Aman Tuleyev.

He asserted that a criminal case authorities in Kemerovo opened against him on charges of illegal entrepreneurship was politically motivated and fabricated, and that law enforcement agents in the region have harassed his relatives in their efforts to prosecute him.

"They create an environment in which it is impossible to work or to live," Kosvintsev said, adding that he filed an application for asylum.

Ukrainian authorities and officials in Kemerovo could not immediately be reached for comment late Tuesday.

Journalists who criticize or investigate officials and companies, particularly in Russia's far-flung regions, often complain of harassment and threats by local authorities and gangs.

Many observers contend that Russian authorities resent critical reporting and are uninterested in solving journalists' killings that have plagued the country.

For some time, Kosvintsev had a job as a regional promotional manager for Novaya Gazeta, the Moscow newspaper where Anna Politkovskaya worked, said Sergei Sokolov, an editor at the paper.

Politkovskaya, an investigative journalist and Kremlin critic who exposed human rights abuses, was fatally shot in an apparent contract killing in October.

Sokolov said Kosvintsev fled Kemerovo and came to Moscow last August. He later traveled to Ukraine and has not returned to Russia.

Source: International Herald Tribune

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Tuesday, February 06, 2007

Ukraine's One-Time "Orange Revolution" Allies Reunite Amid Standoff With Pro-Russian PM

KIEV, Ukraine -- Ukraine's one-time "Orange Revolution" allies said Tuesday they had reunited in opposition and called for early parliamentary elections.

Yulia Tymoshenko

The development comes amid a growing standoff between the increasingly sidelined pro-Western president and Ukraine's powerful Russian-leaning prime minister.

President Viktor Yushchenko's party Our Ukraine and the party of opposition leader Yulia Tymoshenko signed an agreement late Monday on creating a joint opposition force in parliament, a statement said Tuesday.

The parties called for early elections and the canceling of constitutional changes weakening the powers of the presidency.

"We and Tymoshenko's party agreed over a range of issues regarding the future of the country. We understand that political chaos and disorder initiated by the governing coalition can be stopped only through early elections," said Vycheslav Kyrylenko, head of Our Ukraine in parliament.

However, analysts say the two parties do not have enough votes in parliament to force through their intiatives.

Our Ukraine and the Tymoshenko bloc were allies during the "Orange Revolution" protests which ushered pro-Western Yushchenko into power in early 2005, but the following year their team collapsed due to infighting.

After parliamentary elections last March, they tried and failed to form a governing coalition, opening the way to power for their political rival, Prime Minister Viktor Yanukovych.

Since Yanukovych became prime minister, he has suspended the president's goal of NATO membership, expressed interest in joining a Russian-led ex-Soviet trade bloc and responded favorably to Moscow's proposals for joint ownership of Ukraine's gas transit pipeline network.

In the struggle with Yushchenko, Yanukovych appears to have the stronger hand, particularly after a new law on the cabinet of ministers, which weakens the powers of presidency, came into force last week.

Under the law Yushchenko sees his right to appoint the foreign and defense ministers limited, and his influence over regional leaders weakened.

The law also gives legislators the right to appoint the premier without the president's approval if the president does not approve parliament's nominee within 15 days.

Yushchenko complained that it gives more authority to Yanukovych and appealed against the law to the Constitutional Court.

"It is a violation of the Constitution. It is a usurpation of power," said Yushchenko in comments released by his office Tuesday.

Last week, the resignation of pro-Western Foreign Minister Borys Tarasyuk after a monthlong struggle with the Yanukovych government was another blow for Yushchenko.

Yushchenko on Monday asked parliament to approve career diplomat Volodymyr Ohryzko as the new foreign minister, but he is seen as close to the ousted Tarasyuk. An ally of the prime minister suggested that Ohryzko might not give adequate attention to Russia as the nation's top diplomat.

Analysts predicts a sharpening of the struggle between the two top figures in the country would continue, noting that it would not be in favor of Yushchenko.

"Yushchenko will continue to protect his image as his real power will decrease," said Mykhailo Pohrebynsky, a political analyst with the Center for Political and Conflict Studies.

Tymoshenko's party on Tuesday briefly blocked access to the speaker's podium, for a time preventing lawmakers from starting a new session. She demanded that parliament discuss the gas pipeline plan as well as the possibility of increasing salaries and pensions.

Later in the day Deputy Prime Minister Andriy Klyuev denied that the government intended to transfer to Russia control over Ukraine's gas transport system.

"The government has no plans to transfer our gas transport system to Russia, EU or to Belarus," Klyuev told lawmakers.

After his speech parliament approved a law prohibiting any handover of Ukraine's gas transport system to another country.

Source: International Herald Tribune

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Ukrainian President Appeals Against Law Weakening His Powers

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko, who is locked in a power struggle with his prime minister, has appealed to the Constitutional Court against a law weakening his powers, his office said Tuesday.

Viktor Yushchenko

The law was supposed to help clarify the division of power between the president's office and Prime Minister Viktor Yanukovych's Cabinet.

But the pro-Western Yushchenko, who has seen his influence ebb away in recent months, has complained that it gives more authority to the Russian-leaning Yanukovych.

"It is a violation of the Constitution. It is a usurpation of power," said Yushchenko.

Under the law which came into force last week, Yushchenko sees his right to appoint the foreign and defense ministers limited, and his influence over regional leaders weakened.

The law also gives legislators the right to appoint the premier without the president's approval if the president does not approve parliament's nominee within 15 days.

Last month, Yushchenko proposed 42 changes to the disputed law, but parliament rejected all of his suggestions and lawmakers overrode his veto of the bill.

Yushchenko has shortened his list of proposed changes to eight and the parliamentary coalition said it would consider them on Thursday.

The law is the first to come into force without the president's signature.

After the Kremlin-backed Yanukovych was accused of vote-rigging in the 2004 presidential election, "Orange Revolution" protests helped pave the way to Yushchenko's election victory.

But the two men had to share power after Yanukovych won last year's parliamentary election and was named prime minister.

Last week, pro-Western Foreign Minister Borys Tarasyuk resigned after a month long struggle with the Yanukovych government that at one point saw the Cabinet cut off funding for the Foreign Ministry, stopping it from paying diplomats' salaries.

Yushchenko on Monday asked parliament to approve career diplomat Volodymyr Ohryzko as the new foreign minister, but he is seen as close to Tarasyuk and an ally of the prime minister.

Since he became prime minister, Yanukovych has suspended the president's goal of NATO membership, expressed interest in joining a Russian-led ex-Soviet trade bloc and responded favorably to Moscow's proposals for joint ownership of Ukraine's gas transit pipeline network.

Source: Kyiv Post

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U.S. Anti-Missile Systems In Europe Threatens Ukraine — Official

KIEV, Ukraine -- A senior Ukrainian official criticized U.S. plans to deploy its anti-missile systems in Poland and the Czech Republic, the Associated Press reported February 5.

First Deputy Prime Minister Mykola Azarov

“First of all missiles deployed near our territory are objects for attack by any sides. So it is a threat to involve Ukraine in a direct conflict,” First Deputy Prime Minister Mykola Azarov said.

Earlier Washington announced its plan to place a radar system in the Czech Republic and a missile interceptor site in Poland.

Last week, a top U.S. general in charge of developing U.S. missile defenses said that the United States was looking for ways to involve Ukraine in its plans to develop such a system in Europe.

But the Ukrainian government said that it had no plans to deploy the U.S. missile defense system in its country.

Russia has harshly criticized the 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 U.S. military might in the region.

Azarov said that the issue will not help supporters of NATO membership for Ukraine to achieve their aim.

Ukraine has been divided over the issue of possible NATO membership, with Western-leaning President Viktor Yushchenko backing the move and pro-Russian Prime Minister Viktor Yanukovych opposing it.

Source: MosNews

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Monday, February 05, 2007

Ukraine's President Proposes Ohryzko For Foreign Minister's Job

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko on Monday asked parliament to approve Volodymyr Ohryzko as the new foreign minister — the latest tug-of-war between the pro-Western president and Russian-leaning prime minister.

Volodymyr Ohryzko

Last week, pro-Western Foreign Minister Borys Tarasyuk resigned, saying his month-long struggle with the coalition government run by Prime Minister Viktor Yanukovych risked damaging the country's international reputation.

Ohryzko, who is also believed to be pro-Western and has worked as Tarasyuk's top deputy since 2005, was named by Yushchenko to fill the role temporarily after Tarassyuk resigned.

Tarasyuk's resignation reflected the power struggle in Ukrainian politics between Yushchenko and Yanukovych. Ukraine's Constitution leaves the precise division of powers unclear, prompting a tussle for authority.

Yanukovych appears to be in a stronger position, particularly after parliament approved a new law this month outlining Cabinet powers.

Under Ukrainian law, the parliament votes on the president's nominee for foreign minister, but it is unclear at the moment when the vote can take place.

Yanukovych's governing coalition is pushing the candidacy of former foreign minister and current adviser to the prime minister, Kostyantyn Gryshchenko, as well as that of another career diplomat and deputy head of presidential administration, Oleksandr Chaliy.

A Yanukovych ally, lawmaker Taras Chornovil, called the nomination a surprise and suggested Ohryzko might not give adequate attention to Russia as foreign minister.

"He is not a person who causes conflicts but we are not sure how he would be able to fulfill Ukraine's foreign policy in different directions," said Chornovil.

Source: International Herald Tribune

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U.S. Ambassador Taylor Says Grain Quotas Are More Harmful Than Beneficial To Ukraine

KIEV, Ukraine -- U.S. Ambassador William Taylor has said that Ukraine has lost its status of a reliable grain supplier with the introduction of export quotas.

U.S. Ambassador William Taylor

He made this statement to the press in Odessa on February 1 after a visit to the grain terminal of Transinvestservis Ltd near the Pivdennyi Port in the Odessa region.

"What you can see is bad Tons of wheat are being destroyed. Ukraine was the sixth largest grain exporter in the world. Today its reputation is damaged."

"Ukraine has stopped being a reliable partner," the ambassador commented.

Since the Ukrainian government restricted exports, several hundred thousand tons of grain have gotten spoilt in Ukrainian ports before being shipped to consumers around the world.

The quotas are more harmful than beneficial to the country, Taylor concluded.

There are other methods to protect the population from bread price hikes while quotas affect agricultural and transportation enterprises and grain elevators, and foreign investments in Ukraine may fall as a result, he opined.

Export restrictions have already caused huge losses.

"An estimate of all losses that I saw is approximately USD $200 million. These are losses of agricultural producers, transportation companies and companies that store grain. This is why we would like these losses to be stopped and grain sales resumed," Taylor said.

In his address, he called on the government to conduct consultations with agricultural and other experts, and stressed that on its way to a WTO membership Ukraine must actively participate in the world trade and impose no restrictions on export.

A Transinvestservis representative said that 230,000 tons of barley is stored in their elevator and around 30,000 tons of wheat was taken to other elevators in Ukraine because its quality no longer allows for sale on external markets.

Odessa Merchant Seaport stores around 220,000 tons of grain intended for export under quotas.

Source: Ukrainian News

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Sunday, February 04, 2007

Germany Heads EU Mission To Russia, Ukraine And Serbia

BERLIN, Germany -- German Foreign Minister Frank-Walter Steinmeier heads a European Union mission to Russia on Monday at the start of a three-day tour that will also take in Ukraine and Serbia.

German Foreign Minister Frank-Walter Steinmeier

The EU's future relations with Russia in areas such as energy and trade will be the focal point of the delegation's talks with Russian Foreign Minister Sergei Lavrov.

Another key issue is likely to be the future status of Kosovo, a Serbian province that has been under UN administration since the end of the Balkans war in 1999.

UN special envoy Martti Ahtisaari presented a blueprint for Kosovo's future on Friday, but Moscow has said it will only endorse a plan in the Security Council if it meets with Serbia's approval.

Taking part with Steinmeier in the talks is EU foreign policy chief Javier Solana and the bloc's foreign affairs commissioner, Benita Ferrero-Waldner.

Portugal's Foreign Minister Luis Amado is also joining the EU troika.

Portugal takes over the rotating EU presidency from Germany in the second half of this year.

The mission travels to Ukraine on Tuesday to discuss details of a new cooperation agreement sanctioned by EU foreign ministers at their meeting in Brussels mid-January.

From Ukraine, the delegation travels to Serbia on Wednesday.

Source: Deutsche Presse-Agentur

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Aviareps New GSA For Ukraine International Airlines

OSLO, Norway -- The airline representation company AVIAREPS has been appointed as the new General Sales Agent (GSA) for the Ukrainian airline Ukraine International Airlines in Germany.


Ukraine International Airlines currently offers daily flights from Frankfurt to Kiev – on Tuesdays and Thursdays these flights comprise an en-route stop in Lviv.

From Berlin, the airline operates to Kiev every Monday, Tuesday, Thursday, Friday and Sunday. In addition,

Ukraine International Airlines will connect Frankfurt to the Crimean metropolis Simferopol every Thursday and Sunday between 02 June and 15 September.

From the German capital Berlin flights to Simferopol will start every Tuesday between 19 June and 18 September.

Ukraine International Airlines was founded in 1992.

Today, its fleet consists of 15 modern Boeing 737 aircraft.

Domestic destinations served by the airline comprise for example Donetsk, Kharkov and Odessa while internationally, destinations such as Kuwait, Dubai, Amsterdam, Brussels, Paris, Milan and other major cities are part of the schedule.

Source: Boarding

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Vitali Klitschko To Attend Today's Super Bowl Game In Miami

MIAMI, FL -- Comebacking former two-time world heavyweight champion Vitali Klitschko is in Miami for today’s Super Bowl game between the Indianapolis Colts and Chicago Bears.

Vitali Klitschko

“I am very excited about the game and looking forward to seeing it live,” the ex-World Boxing Council (WBC) and World Boxing Organization (WBO) heavyweight titleholder said. “This will be my second Super Bowl. I also went to the big game in Houston in 2004.’’

The talented Klitschko (35-2, 34 KOs) formally announced earlier this week that he was returning to the ring. Injuries forced the popular, 6-foot-7 native Ukrainian to retire in November 2005.

“I’ve been back in the gym and I feel great,” Klitschko said in an official statement. “My injuries have healed. With the approval of the doctors, I am cleared to continue my boxing career.’’

The older of the world famous Klitschko brothers – younger sibling, Wladimir is the current International Boxing Federation (IBF) and International Boxing Organization (IBO) Heavyweight Champion – has his immediate sites on regaining the WBC belt.

“I’m back and I have requested that the WBC sanction a bout between me and (reigning WBC champ) Oleg Maskaev,” said Klitschko, who demolished challenger Danny Williams in his last start in December 2004. “I retired without having lost the WBC belt in the ring. ‘’

Vitali hedged on making a Super Bowl prediction. “The team that hits the hardest will win,” said Klitschko, who knows a thing or two about hard hitting. All but one of Klitschko’s victories has ended by knockout. His last seven triumphs ended inside the distance.’

Klitschko arrived in Miami on Thursday and was accompanied by his personal manager, Bernd Boente.

Source: Bragging Rights Corner

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Saturday, February 03, 2007

Tymoshenko Pledges To Back Speaker's Removal

KIEV, Ukraine -- Ukraine's outspoken former prime minister, Yulia Tymoshenko, said Friday a motion to sack Oleksandr Moroz as parliamentary speaker will be backed by her eponymous opposition bloc.

Yulia Tymoshenko

The proposal to oust the Supreme Rada speaker came Friday from pro-presidential faction Our Ukraine after Moroz signed a controversial law on Cabinet appointments that substantially cut the president's powers. The law came into force despite being vetoed twice by the president.

"We will be politically delighted to vote for Moroz's removal from the post of speaker," said Tymoshenko, a key figure in the 2004 'orange revolution' which brought to power Western-leaning President Viktor Yushchenko.

Moroz heads the Socialist Party, which abandoned a Tymoshenko-led alliance of orange forces to facilitate the creation of a pro-Russian coalition last July, led by Viktor Yanukovych, who became prime minister a fortnight later.

Yanukovych has been steadily consolidating his power in the ongoing struggle between pro-presidential and pro-premier factions over the past six months.

Under Ukrainian law, the parliamentary speaker can sign a bill into law, if approved by two-thirds of votes in parliament, if the president fails to do so within a month.

The prime minister first vetoed the bill on January 12, but the Supreme Rada overrode him with 366 votes when a former opposition bloc joined the parliamentary majority supporting Prime Minister Yanukovych. Parliament also rejected all presidential amendments to the bill.

On January 18, Yushchenko again refused to sign the law, saying the Supreme Rada had made new changes to the document.

Yushchenko repeatedly said the provisions allowing factions to nominate the prime minister, and defense and foreign ministers, as well granting them the authority to dismiss ministers, ran counter to the national unity pact political leaders signed in August in a bid to end a protracted political crisis in the ex-Soviet state following the March parliamentary elections.

The president pledged to appeal to the Constitutional Court against the law.

The Supreme Rada has sacked several president-appointed ministers, including Foreign Minister Borys Tarasyuk, the president's key ally who had actively promoted pro-Western policies.

Source: RIA Novosti

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Ukraine’s Yushchenko Under Siege

KIEV, Ukraine -- On 30 January, Ukraine President Viktor Yushchenko suffered a major blow when he was forced to accept the resignation of his pro-western Foreign Minister and longtime ally Borys Tarsyuk.

President Yushchenko (L) has lost most of his power to PM Yanukovych (R)

The resignation is the latest salvo in a political struggle that has left Yushchenko isolated and under a continuous barrage not only from Prime Minister Viktor Yanukovych, but also from his former ally and former Prime Minister Yulia Tymoshenko. In the process, Yushchenko, largely through his own actions, has lost most of the authority he won during the Orange Revolution.

The political struggle also has caused confusion in foreign capitals; it is unclear who is directing foreign policy, it is unclear who speaks for Ukraine internationally, and it is unclear if either the president or the prime minister has the ability to follow through on promises made to potential international allies.

The Tarasyuk saga

Borys Tarasyuk had been in the middle of a tug of war between the president and prime the minister for almost two months. On 1 December, at Prime Minister Yanukovych’s request, parliament voted to dismiss Tarasyuk, who had been appointed by Yushchenko. The president strenuously objected to the move and maintains that the vote was invalid.

This dispute between the president and prime minister centered on Tarasyuk’s unfailing pro-western orientation and his determination to pursue European Union and NATO membership for his country. Yanukovych has rhetorically supported Ukraine’s pro-Western orientation, but rejects NATO membership and has stopped all concrete movement toward the EU.

Until his resignation, Tarasyuk continued to represent Ukraine on foreign trips at Yushchenko’s behest, while at the same time being barred by government security from entering his office or participating in cabinet meetings.

However, possibly in reaction to a decision by a Ukrainian district court to call Yushchenko to testify during Tarasyuk’s appeal, the president backed down. The retreat likely signals a major foreign policy shift, with only one Yushchenko ally remaining in the government – Defense Minister Anatoliy Hrytsenko. Although the constitution allows Yushchenko to appoint a new foreign minister, the parliament must approve the nomination.

Law on cabinet shifts powers to Yanukovych

The domestic situation in Ukraine became significantly more confusing on 12 January, when parliament extended its attack to include not only Yushchenko’s foreign minister, but also Yushchenko’s most basic influence on the government. The chamber voted to override Yushchenko’s veto of a bill that drastically reduces his power.

In particular, the Law on the Cabinet of Ministers allows the parliament to appoint the prime minister without presidential approval, taking away Yushchenko’s ability to influence the formation of the cabinet. The bill also grants the prime minister the authority to appoint and dismiss the foreign and defense ministers, removing this prerogative from Yushchenko’s purview. This latter provision directly contradicts the country’s constitution and likely would be overturned in any constitutional legal challenge.

Yushchenko’s Our Ukraine political bloc is challenging the legality of the Law on the Cabinet override, based on what the party says are differences in the wording of the bill originally vetoed by the president and the bill sent to the president after the override vote. The president received new wording of the bill, his press service said, and therefore, parliament’s vote cannot be considered an override.

On 22 January, following an Our Ukraine complaint, the Mukacheva District Court agreed with the president and issued an injunction against implementation of the law, pending further review.

Prime Minister Yanukovych and his ally, Parliamentary Speaker Oleksandr Moroz, deny that the wording of the bill was changed and have vowed to implement the law, despite the court order. On 30 January, Moroz published “information about the official publication” of the law in the government and parliament newspapers, but has refrained from publishing the text.

One day earlier, he suggested that parliament may be ready to support the president's amendments to the law. The president responded weakly by calling for a “roundtable” to search for “compromise.” Given the lack of success at past presidential roundtables, and his retreat over Tarasyuk, it is doubtful that such a move would do much to ease Yushchenko’s plight. It is clear, however, that Ukraine remains mired in a legal and political morass.

Tymoshenko sends Yushchenko a message

The override removing many of Yushchenko’s powers succeeded only because his former Orange Revolution ally Yulia Tymoshenko chose to support the measure. With this vote, it became apparent that the president no longer can expect the unilateral support of her bloc on any piece of legislation – even a measure on which they were united previously.

The vote against the president seemed unexpected to members of Our Ukraine, who marched out of the parliamentary chamber in protest. Yushchenko can now count on the support of only 80 out of 450 deputies for his proposals – on a good day.

The move by Tymoshenko prompted cries of “betrayal” from Our Ukraine, and suggestions that Tymoshenko and the 125 members of her parliamentary bloc had turned away from the “orange ideals.”

The vote also shocked many of those who had stood in Ukraine’s Independence Square, watching their two leaders arm in arm, during what would become known as the Orange Revolution. Although the two have endured strained relations throughout most of their political careers, a vote by Tymoshenko to remove significant powers from Yushchenko and turn them over to revolution opponent Yanukovych seemed unimaginable.

This is particularly true since, in 2004, Tymoshenko fought vehemently against constitutional reforms that granted the prime minister’s office greater powers – reforms which Yushchenko ironically supported.

But much has changed in Ukraine. Since the Orange Revolution, Yushchenko has seen a significant diminution in public support, while both Yanukovych and Tymoshenko have seen their popularity ratings surpass the president’s.

Some history

Instead of moving quickly to consolidate his power directly after taking office, Viktor Yushchenko chose to separate himself from his closest allies, while reaching out to his former opponents. In the process, he alienated his revolution partner Tymoshenko and allowed Yanukovych gradually to undermine his power.

Despite the current suggestion from Our Ukraine that Tymoshenko has betrayed them with this latest vote, the first break in the “Orange” team, as Yushchenko and Tymoshenko became known during the revolution, actually occurred when Yushchenko dismissed Tymoshenko from the post of prime minister in September 2005. The dismissal came during a purge of several Yushchenko allies who had been accused of corrupt or inappropriate activities (none were ever proven) in their positions.

Neither Tymoshenko nor anyone in her cabinet was mentioned in these allegations, but the prime minister had used her position successfully to increase her popularity and had bumped heads with Yushchenko's aides on a number of issues. When the president dismissed his tarnished aides, in one broad sweep, he dismissed Tymoshenko and her allies, too.

Shortly thereafter, Yushchenko signed a Memorandum of Understanding with Viktor Yanukovych, resuscitating the political career of his former presidential and revolution opponent. In return, Yanukovych agreed to vote to confirm Yushchenko’s new choice for prime minister. The president was criticized heavily for the agreement, which included support of an amnesty for electoral fraud and the introduction of immunity from prosecution for local deputies.

The voters took their first revenge during the March 2006 parliamentary elections, as Yushchenko’s Our Ukraine bloc (14%) was beaten soundly by The Yulia Tymoshenko Bloc (BYUT) (23%). Yanukovych, meanwhile, placed first with 32%.

But instead of actively supporting a reuniting of the “orange coalition,” which would have controlled a parliamentary majority, Yushchenko introduced Yanukovych’s name into parliament for confirmation as prime minister. Our Ukraine joined an ill-fated coalition government with Yanukovych, and Tymoshenko announced her “radical opposition” to the government.

Reading the tea leaves

Given the history of the two since the Orange Revolution, it is no surprise that Tymoshenko’s reflex reaction to support Yushchenko was not in top form. Nevertheless, the vote by Tymoshenko is more than a bit perplexing.

As longtime Ukraine analyst Taras Kuzio wrote in his recent BBC blog, “Those of us who have been following Soviet and post-Soviet developments have become used to reading between the lines and figuring out what is really going on behind the scenes.

This ability is now seriously stretched.” Surely, there must be more of a reason for the vote than irritation over Yushchenko’s past treatment of his former ally.

Tymoshenko quickly suggested that this vote "absolutely did not" represent any alliance with Yanukovych and named several reasons for the action. First, in return for assisting in the override of the President’s veto, the ruling coalition supported, in the first reading, the Law on the Opposition. This bill, which guarantees the political opposition a number of important rights, could be a major step forward in Ukrainian politics.

If passed into law in the second reading, it would place Ukraine securely in the realm of Western European, pluralistic, parliamentary republics. Tymoshenko said, “What you have seen is an interim position in order to secure gains for Ukraine’s long-term future.” But even Tymoshenko admitted that passage of the Law on Opposition in the second reading is not guaranteed.

BYUT's Law on Imperative Mandate for local councils also was passed in the second reading. The law will make it virtually impossible for a local deputy elected on a party list to oppose the wishes of the party leadership, for fear of being expelled. This could be a major improvement, eliminating the potential for bribery, extortion and coercion of individual deputies. This will only be the case, however, if the provision to expel members is not abused by party leadership.

Tymoshenko also suggested that the vote would “end the constitutional crisis” between the president and the prime minister by placing power securely in the hands of one, and that this vote is meant to set the stage for a dismissal of parliament by the president. In fact, at a meeting congress of 3,000 BYUT local deputies, Tymoshenko announced that she already had begun creating a new election list for a new election.

It seems unlikely that this vote by BYUT will end the constitutional crisis, since constitutional challenges are likely to ensue if the law comes into force as passed. Moreover, it seems even less likely that Yushchenko will embrace Tymoshenko’s idea to dismiss parliament, which would necessitate working with Tymoshenko during and following any new parliamentary election.

In the past, Yushchenko has demonstrated an almost pathological aversion to working with Tymoshenko, even to his own detriment and to the detriment of his programs. This likely will increase after the latest vote.

It may be possible that Tymoshenko doesn’t have any real expectation that the president will dismiss parliament, especially given the lack of any legal reason to do so. Instead, with the vote, Tymoshenko forces Yushchenko into a choice—enter into further agreements and compromises with Yanukovych or begin working in a collaborative manner again with her to push forward his agenda.

The situation resembles that of September 2005, when Tymoshenko refused to support Yushchenko’s choice to replace her as prime minister.

The president then chose to sign the soon-to-be-broken Memorandum of Understanding with Yanukovych. This move drastically undermined voter support for him and his party, and would not have been necessary had Tymoshenko supported him. Tymoshenko used that memorandum effectively in her parliamentary election campaign.

To this end, BYUT deputy head and foreign policy advisor Hryhoriy Nemyria suggests that Tymoshenko was attempting to block any possible new agreements between Yushchenko and Yanukovych, thus clarifying once again the choice facing the president.

Regardless, in Internet chat rooms and on the streets of Kyiv, voters now are expressing not only irritation with Yushchenko, but also with Tymoshenko, for voting “with” the man she has always fought, and against the man she has always supported. She, no doubt, is trusting that her oratory and political skills, which have served her in good stead in the past, will help her explain her position and calm the criticism of this vote.

Should Tymoshenko quickly return to “radical” opposition tactics, voters may overlook this “situational” alliance with Yanukovych—as they did after the September 2005 prime minister vote. But there is no doubt that the strategy is a risky one.

The next steps of both Tymoshenko and Yushchenko will determine what effect this vote may or may not have on their popularity and on the future direction of the country. While nothing is certain in Ukraine, given the President’s past inability to outmaneuver opponents politically, prospects for his political career seem bleak. And prospects for Ukraine’s Western orientation also seem dim in the near future.

“Frankly speaking, we do not understand who represents Ukraine,” said Poland’s Ambassador to Ukraine Jazec Klyuchkovsk recently.

Latvian President Vaira Vike-Freiberga was even more blunt during the Davos World Economic Forum on 26 January. "The Ukrainian people deserve much better than what they have,” she said.

Source: Moldova Org

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EU Not Planning Ukraine Membership

MOSCOW, Russia -- The EU neighbourhood policy provides for a special form of partnership with Ukraine, but not its membership, Benita Ferrero-Waldner, EU Commissioner for External Relations and European Neighbourhood, said in an exclusive interview with Itar-Tass on Friday.

Benita Ferrero-Waldner

She explained that the above-mentioned policy was giving numerous advantages to their neighbours, but it does not make them decide in advance whether or not those countries will ever join EU.

Commenting on a possibility of EU expansion, Ms. Ferrero-Waldner reminded that Croatia and Turkey were candidate countries, and the negotiations on their joining EU are going on with both of them.

According to Ms. Ferrero-Waldner, progress of each of the countries in that process depends on their accomplishments. If Croatia continues to resolutely implement reforms, it might perhaps be ready to join EU by the end of the decade. Turkey’s joining of EU will be a long and difficult process, which might take dozens of years.

Macedonia, a former Yugoslav republic, is another candidate country, Ms. Ferrero-Waldner continued. Serbia, the same as other West Balkan countries, faces the prospect of joining EU, when it meets all its criteria. The next step for Serbia would be the talks on the Stabilisation and Association Agreement.

According to Ms. Ferrero-Waldner, EU is doing all it can for inducing Serbia to meet the conditions, needed for the resumption of their work on the problem.

Ms. Ferrero-Waldner is one of the three top-ranking EU officials (EU Three), who will have a meeting with Russian Foreign Minister Sergei Ivanov on February 5.

Source: Itar-Tass

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Building Democracies One At A Time

KIEV, Ukraine -- Nowhere has the lack of sufficient commitment to nurturing new democracies backfired more than in the former Soviet Union.


Winning the Cold War was, perhaps, America’s greatest political triumph of the 20th century. Democracy was introduced to the largest geographic area in the world and 14 new republics joined the community of nations.

Fifteen years later, there are serious fault lines throughout this region with dire consequences to the new democracies and to the United States.

Not only is the victory over the despotic Communist dictatorship reversing, but the hard-earned gains of democracy-building is being lost to the former oppressor Russia and its emperor-like president, Vladimir Putin.

Perhaps none is more discouraging to its people and detrimental to America than the backsliding in Ukraine.

The second largest country in Europe, with some of the most advanced Soviet industries – space, cybernetics, shipbuilding – with outstanding agriculture, energy-refining and transporting systems to Europe, and a superbly educated workforce, Ukraine is losing its sovereign independence daily.

Its pro-Russian Prime Minister Viktor Yanukovych is not much more than a mouthpiece for Russia’s imperialist interests.

This political about-turn follows on the heels of Ukraine’s finest democratic hour, the Orange Revolution. Late in 2004 Ukrainians went to the streets to demand fair and free elections which were being defrauded by Russia’s candidate. They won!

Yet two years later, Russia’s clutch on Ukraine’s domestic policies, international relations, and aggressive Russification of Ukraine’s population through government policies and media, schools has not been greater since the Soviet days.

The demise of this fledgling democracy is led by the very man the Orange Revolution rejected and wanted in jail, Prime Minister Viktor Yanukovych. Even more startling, President Viktor Yushchenko, whose candidacy precipitated the uproar, is turning out to be politically inept.

What happened?

Preoccupied with a new initiative – building democracy in Iraq – America lost sight of the success this same tenet of its foreign policy was achieving in Ukraine.

This lack of attention allowed Russia to manipulate Ukraine’s March 2006 parliamentary elections and install an anti-West government while its supposedly pro-Western President Viktor Yushchenko watched passively.

With a weak president and with US interests focused elsewhere, Ukraine’s democrats were not strong enough to withstand the Russia-backed shenanigans.

The victory of a democratic election was snatched z pid nosa, from under their very noses, as the Ukrainians say.

Now that Russia’s control in Ukraine is ascending, it has a strong base for grander ambitions. Despite the short-lived stand-off involving the energy issue, Belarus is a puppet state.

So are the stans. Georgia is severely threatened. Furthermore, by regaining control in Ukraine, Russia got its biggest psychological boost since loosing the Cold War.

Disillusioned Ukrainians say it was handed to the Russians because America’s policy has been and continues to be Russo-centric.

They maintain that after the loss of the Cold War and the initial fleeing of the Kremlin’s apparatchiks mainly to Israel, Britain and Canada, the Kremlin’s terrified Communists realized there would be no consequence to their murderous past.

There was no Nuremberg Trial for crimes committed against some 60 million murdered by the Soviet dictatorship; no Retribution Commission, as in South Africa. There were no posthumous trials of the likes of Lenin, Stalin, Kaganovych – the architect of the Terror Famine in Ukraine, which alone starved 10 million citizens in one year.

America’s foreign policy was tolerant, nay, benevolent to its former enemy. Former Communists told Americans what they wanted to hear: We are now democrats.

And few listened to knowledgeable Ukrainians, and others, who warned that these are not democrats but wolves in sheepskin coats. American Russophiles and left-wingers called for gentle treatment of Russia’s humiliation, recalling its great history but choosing to forget that the history had been despotic and murderous.

No two acts were more Russo-centric than President George Bush I Chicken Kyiv speech scolding Ukraine for seeking freedom from Russia. The other was the incredible invitation for Russia to join the G-7.

Despite the “democratic” rhetoric, America’s foreign policy chose to see Ukraine primarily through a Russian policy prism. If Russia said “da” to initiatives, there was support; if “nyet,” America conceded.

Ukraine was forced to give up its nuclear arsenal to Russia and, back in the 1990s when there was support for joining NATO, its membership was denied to placate Russia’s opposition.

To Russia, this indicated that it could still have things its way. To the rest, it made America look like a loser. Yet the mindset prevailed and continues today: Ukraine’s membership in the WTO is predicated on Russia’s readiness to join.

Emboldened, Russia is advancing its agenda globally with dire consequences to America and world peace. There is the danger of nuclear power in the hands of rogue states like Iran and North Korea.

Syria is a concern and the Philippines, Indonesia and Nepal are destabilizing. Closer to home there are danger signs from far left presidents Hugo Chavez of Venezuela and Daniel Ortega of Nicaragua.

It is a safe bet that Russia’s presence is more active and welcomed throughout these regions now than a few years ago and much more so since the Soviet collapse when all seemed lost for Russia.

This “back to the USSR” scenario could have been prevented. Following the defeat in Moscow, there should have been an equivalent of the Nuremberg Trial for the leaders.

The Communist Party should have been outlawed like the Nazis. Its left-wing apologists should have been treated as social pariahs just like Holocaust deniers are.

And the same for communist revisionists, be they Marxist, Leninist or whatever the moniker.

Source: Kyiv Post

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Friday, February 02, 2007

Row Between Airlines And Fuel Firm Grounds Ukraine Domestic Flights

KIEV, Ukraine -- A row between two Ukrainian airlines and a pair of fuel supply companies grounded dozens of domestic flights, the Interfax news agency reported.


Ukraine-Mediterranean Air (UM Air), the country's third-largest carrier, cancelled all flights within the country until further notice, leaving passengers stranded in Kiev, Simferopol, and Kharkiv.

A UM Air statement accused two fuel supply companies servicing Kiev international airport Borispyl and five provincial airports of artificially inflating aviation fuel prices, making flights unprofitable.

Ukrainian aviation fuel providers servicing those cities' airports hiked aviation fuel prices in early January, citing increased demand for fuel and falling supplies. The hikes have not affected aircraft on international routes.

The cities affected are Kiev, Lviv, Ivano-Frankivsk, Kharkiv, Chernivtsi, and Simferpol. Flights not passing through those cities, or on international routes, have not been affected, according to Interfax.

"In the international market aviation fuel costs 560-570 dollars a ton, and here our domestic companies are being told to pay 720...and that is before Value Added Tax (VAT)," a UM Air statement said in part.

Aero Svit, Ukraine's largest carrier, cancelled its daily flight to the popular Lviv destination, and warned that other routes would be shut down as well, if the aviation fuel companies "continue to overcharge."

The cities Chernivtsi and Ivano-Frankivsk would likely fall by the wayside next, said Serhy Kutsy, an Aero Svit spokesman.

Aero Svit was offering grounded customers refunds, rescheduled flights, or free bus tickets, he said.

Aero Svit and UM Air spokesmen identified the service firms as SP Krebo and Luk-Avia Oil, and accused the two fuel companies of colluding to raise aviation prices artificially. There was no immediate comment from either fuel firm.

Ivan Boiko, Ukraine's Energy Minister, said the problem lay not in a direct fuel price hike, as in a dispute between the fuel companies' and the air lines over which should pay VAT for fuel pumped into a plane flying a domestic route.

The loser in the conflict will owe the Ukrainian government the equivalent of 7.7 million dollars in back taxes, Boiko said.

"We hope to have this dispute resolved soon, and when that happens the planes will fly again," he predicted.

Source: DPA

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Thursday, February 01, 2007

Foreign Companies Lining Up For Ukrainian Uranium

KIEV, Ukraine -- With prices rapidly increasing worldwide and a shortage in supply looming on the horizon, Ukraine’s abundant uranium-ore deposits have become a powerful magnet for foreign companies.


However, the country’s leadership is not eager to let them in so soon, opting instead to yield monopoly control over the potentially lucrative business to a yet-to-be-established state behemoth, which would need an estimated $2.4 billion in credit to get on its feet.

As the battle to gain control over the mining of Ukrainian uranium, together with its processing into nuclear fuel, continues, experts say development of the business is key to the nation’s energy security.

Ukraine, which receives about half of its electricity from nuclear power plants, has enough uranium reserves to weed out Russian imports and fill domestic demand for up to 1,000 years.

Just how much uranium Ukraine holds has been kept quiet and subject to state secrecy provisions. But Deputy Energy Minister Yuriy Nedashkovsky has told the Post that this information would be revealed to investors when the time comes.

High stakes

Nedashkovsky said he constantly receives dozens of offers from Western and Russian companies ready to step in to Ukraine’s uranium extraction and processing industry.

“The uranium market is booming, which creates a huge demand for access to Ukrainian uranium reserves,” he said.

Nedashkovsky said uranium prices have increased more than eight fold since 2000 from $23 per kilogram to $180. He expects prices to rise even further to $270 per kilogram by the end of this year.

According to the deputy energy minister, worldwide demand for uranium in 2004 reached nearly 70,000 tons annually.

Fresh extraction filled only half of this demand. The rest, he said, was covered by uranium from military reserves, which have been decreasing considerably, thus driving up world prices.

Currently, state-owned VostGOK, which monopolizes uranium extraction and its initial processing in Ukraine, churns out about 800 tons annually, or 30 percent of domestic demand.

Ukraine exports all domestically mined uranium, mostly to Germany, at world prices. Domestic demand is filled, according to Nedashkovsky, at prices significantly lower than world prices by Russia’s state-owned TVEL.

Ukrainian Energy Minister Yuriy Boyko has said the country hopes to nearly double domestic uranium production by 2009. While Ukrainian officials seem intent on keeping this potentially rewarding business in state hands, foreign companies are stubbornly lining up for a slice of the pie.

Knocking on the door

Serhiy Koroliov, a representative in Kyiv for France’s Areva NP, a leading supplier of nuclear fuel which also specializes in the construction of nuclear power stations, said that the investment his company could bring to Ukraine has virtually no limit.

“We are currently studying the economic potential of Ukraine’s reserves, but it is safe to say that we would bring in hundreds of millions of dollars … And I don’t mean just a couple of hundred [of millions of dollars],” Koroliov said.

The general thinking is that Ukraine needs help in tapping into its uranium potential fast. Ukraine’s unwillingness to bring foreign investors in for massive and costly uranium projects is a concern.

But media reports suggesting the country might choose its current monopoly supplier, Russia’s TVEL, to invest as much as $260 million, do not worry Koroliov.

Vasiliy Konstantinov, vice-president of TVEL, would not comment on the figure. He said that in order to take part in the development of Ukraine’s uranium deposits, ownership issues need to be clarified. Konstantinov said he would also expect the Ukrainian government to guarantee such an investment.

In addition to Areva NP and TVEL, Nedashkovsky named Australia’s Uran Limited as another interested company. Ukraine’s large business groups are also lining up.

“They [Ukraine’s big business groups] haven’t approached us officially, but I feel them behind my back,” he said.

Foreign companies, however, have already submitted proposals. Some are simply seeking rights to extract the uranium. Others are submitting more preferred bids, offering their backing in a joint venture. Giving foreign companies direct access to the uranium reserves won’t benefit the state, he explained.

Areva’s Koroliov said his company is flexible and would consider various forms of partnership.

But Nedashkovsky said investors will have to wait, at least until the government sets up a state corporation which could, in theory, establish joint ventures with foreign partners.

The new state company is to be called Ukratomprom, Nedashkovsky said, adding that it will be granted monopoly rights over uranium extraction and elements of nuclear fuel production.

About $2.4 billion will be required to build up this company and launch basic operations, Nedashkovsky said, adding that the state company will most likely seek credit lines for backing.

The deputy energy minister said uranium mining will be kept in house, adding that foreign interests would only be accepted as partners in producing nuclear fuel if the terms were right.

Source: Kyiv Post

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